Jay Abraham – Mastermind Marketing 1

Man 1: And in this corner, weighing in at over $6 billion in revenue

generated for his clients and associates, hailing from Los Angeles,
California, and pound for pound generates more profitable break through
marketing ideas than any man alive, give it up for Jay L. Abraham.

(Applause and cheering)

Jay: Okay, wow. Hello. We'll start with a quote. It's not an original
one, but it's an appropriate one. It's from a colleague named Bob Proctor.
Bob Proctor says, and I agree, that almost every business owner, and
aspiring entrepreneur out there in the world, struggles silently with a non-
verbalized question that is decimating their capability for greatness. They
don't even know they're struggling with it. The essence of the question is,
'Am I worthy of this goal?' 'Can I really build a competitive business, and
stay around, in light of all these big companies trying to marginalize and
turn me into a com [unclear 2:00]? Can I really reach my vision? Can I
really compete in this very, very, very, very global world, with the internet
and all kinds of different solutions to the same problems? Can I really
make half a million, a million dollars? Can I really build a business that will
endure, that has value?'

Bob says, and I agree, "That is absolutely, positively, and totally an

erroneous question to even consider." The right question to always ask
yourself is, 'Is the goal worthy of me and my company?' Why? you ask.
Because once you learn how much more is possible, from [unclear 2:55],
fill in the blank; the same opportunity, the same time, the same
investment, the same activity, the same people, the same relationships,
the same distribution channels; you will see that you have been
unintentionally restricting, limiting and accepting a fraction of the number
of clients you could be generating, the size of the transactions you could
be creating, the number of products and services you could be nobly and
officially helping your market place acquire and benefit from.

Please turn the phones off because I'm attention-deficit, and if you do,
then everyone will hate you because I'll have to look at you and stop, and
start again and repeat from the very beginning because I'm very
programmed; and then everyone will be like, assail you, and it'll be
terrible, and I don't want to have that on my conscience.

What was I talking about? Should I start over again? Play the music again
Dave, I'll go to the back.
(Laughter)

Tony, how you doing man? What was I talking about? I really am, I'm
opposed to [unclear 04:07]

Jay: ...is the goal worthy of you? Because when you understand how much
more leverage you have in your marketing, in strategy, competitive and
[unclear 4:25] as you can in your mindset, it will blow your mind. It will
rock your world. It will transform you. But that's what we're going to get
to. Got a couple of things I want to say right now, and then we've got a
very rigorous speaker list. I only work from notes, I do free form; I know
exactly what I want to talk about, but I have to look at notes occasionally,
because I want to make sure I don't forget a critical point.

Okay, first of all, all of you, we're here for a reason. Different reasons for
different ones of you, but you're here basically to learn how to grow your
business geometrically, from a profit stand point, not just top like
revenue. You're here to learn how to be masterfully more strategic in your
marketing process. You're here to learn how to compete at a level of
formidability and prowess, and acuity that will just basically topple,
decimate and dominate everybody else you're trying to address. You're
here to learn a strategy of business that will so liberate and animate your
spirit; it's called Strategy Nemetics, and you may not know that.

You're here to learn the meaning of business life. You're here to learn how
to make the power of geometry harness it's amazingly potent self to your
every beck and call. How many people in this room have a historic basis
or background with me; you bought my stuff in the past? Raise your hand.

Okay. Down.

How many have attended a program of mine in the past? Okay, so about
15% of you. Okay, this is a cool program. I've done 50 programs in my
professional life; they range from 5,000 to 50,000 dollars. This program,
the Mastermind Marketing Program, has spawned more success stories
that are documented, about 11,400. It has transformed more people's
businesses by giving them a fundamental understanding of how strategic
marketing is the bed rock of all things great for their business. It is giving
them the focus, the understanding and the power to compete
successfully, to get their businesses growing and growing; and this is
going to be the first time in seven years, that I have reconstituted and
delivered it, and the crowd is wonderful, that the people here will get a lot
out of it, but you have to understand how we do business. Because if you
don't; if you're new to it or you've forgotten, less than a stellar experience.
If you embrace what we're all about, it will be just euphoric times two; it'll
be the most - it'll actually - orgasmic endeavour you've ever had. First of
all, I'm not going to give you a program, you're going to give it to yourself.
And I have every confidence in your ability to give yourself the greatest
program of your own life. You're not here for Jay Abraham to dole out
theoretical wisdom in a very static manner; you're here to get
transformed; you're here to learn how to put into action strategies, tactics,
and implement them on a sustaining systematic basis. I will do it many
ways; I will teach you what I know.

I will teach you what I have experienced, but to really demonstrably

evidence it, I will pluck from the audience, all kinds of people,
continuously, who have done that in their real life, who have seen the
power, who understand it intellectually and conceptually, and from a
construction stand point, foundationally - how it works; I will make them
go to the mike, and I'll make them share case study after case study,
because I want it to be real.

I do not have any need or desire to be your intellectual entertainment. I

have enormous capacity to be a catalyst. I have enormous desire to be
basically your advisor. I have enormous commitment to move you to
action, but you've got to commit to yourself. This is all about
collaboration. It's all about everyone for each other. We're like the 650
Musketeers.

And we've got to basically make this the greatest contribution, the
greatest collaboration; we have 16 or 18 experts, not one of which is here
to really purposefully sell you anything; they’re here to basically give from
the depths of their heart, expertise that is critical to the foundation we're
after; and number 2...to work on their own business at the tables with
you. They're going to be here for the duration with the exception of two or
three, and it's going to be killer.

I don't like anyone worrying or concerning themselves with what in the

world is going to happen, so let me give you a quick advance, and I'm
going to have to stop in three minutes because we promised Brian we
would get him on and off fast, because he's got to catch a plane. We
orchestrate our programs very, very strategically. But we change them at
will. It's not about me being this great, on the podium, theatrical
presenter. I'm relatively good, but I'm really a shirt-sleeve entrepreneur
who has worked my whole life on the front-lines of capitalism. I
understand business from an intimacy, and a reality, at an empirical level,
that very few of you probably will ever achieve; and I'm going to try and
summarize and distil it down into such elegant simplicity, it'll be
impossible for you not to engineer breakthroughs.

However, as we go through our intended format, I might change it at will.

We have no shame about making the event and the experience and the
result the best we can for you, and I am a continuous work in process. So,
here's what we're trying to do. On Day 1, we're trying to open up your
paradigm, evidence to you how much more is possible, get you grounded
in foundational Jay Abraham stuff, introduce you to perspectives that will
raise your own bar, get you to see that you can do anything, but only if
you realize what you're trying to do and work backwards from it; then
we're going to teach you the next day, the power and the integral
importance of being strategic instead of tactical.

Then on the next day, once we understand all is possible, and reduce
down what the hell you want for yourself, what your optimal goals are,
and we engineer it backwards; and then we're going to show you that the
key to getting it all instantly and sustainably is changing your strategy,
we're going to then build for you tactics; the elements of delivery that can
do it for you. Then finally, we're going to spend hours and hours building
an action plan that will really achieve the goals, so you don't go home just
feeling good, and go right back to the status quo; and then you're going to
present it to each and everybody around the table, because they're going
to decide whether you really got it, or whether you need help. And we're
going to help you, so before you leave, you've got it all down. That's
pretty much what we're going to do, isn't it Rick?

I didn't follow one note, so I probably screwed up. Did I forget something?
What did I forget?

(Man inaudible in the background)

I drive everybody crazy, because they spent the last three weeks working
on this, and I forgot to look at it. Okay, I am so flattered that when we
decided to do this, we called upon a lot of chips that were owed me, or
hopefully, we hope people would invest forward in, and one of the most
appreciative responses to my call was a very good friend, and a
remarkable seminal thinker, in about 27 disparate elements of high
business and personal performance. Brian Tracy has written so many
books I can't name them all. He's done so much research, and he's such
an amazing man, because he constantly grows and pulses, analyzes
researches, and always is ahead of the curve on what basically makes
people, businesses, organizations and individuals grow, thrive, achieve,
succeed, masterfully lead; and he's one of the brightest minds I have
ever, ever met, and he's one of the most interesting people, because he's
not static.

He's the epitome and the personification of 'grow or die.' He's going to
basically set the stage for you and explain to you what he thinks are the
most critical elements you need to grasp about the business arena, about
yourselves, and about how to reconcile the two. Rather than say anything
else, I'm just so flattered, and he came here just to do this for you; he's
got to catch a plane at 10:30; we're privileged to have Brian set the pace
for the game we're going to have follow, and there's one last thing I want
to say. I want you to understand; I see life as the ultimate 3D movie, and
us; myself and all my accomplishes in merry, merciless money making,
having the only pair of glasses in the whole theatre; and we have the
ability to make the rules, to change them, to play whatever game we want
as long as it's highly ethical, highly equitable, and gloriously fulfilling for
all involved.

That stated, I didn't follow any of my notes. Brian, wherever you are,
thank you and God bless you for doing this for us.

(Applause)

Brian: Thank you Jay, I am delighted to be here with you. When Jay
called me, he said would I come and speak on a Saturday morning; I made
an agreement with my family and my children; I would not speak on
weekends, and so I said, 'You know, I don't speak on weekends,' and he
said, 'You know what, - ' Could we - how are we doing with that sound
there? As the philosopher said, 'life is just one damn thing after another.'

(Laughter)

Anyway, I don't normally speak on weekends, but he said, 'You know, but
this is going to be 700 millionaires. You're going to be talking to
millionaires. You can't get an audience like this.' And so what I found is
that everybody here is either a millionaire, or you intend to be, is that
correct?

(Cheering)

Right. Very interesting point, Napoleon Hill, when he started writing his
books on success, you know Andrew Carnegie opened the door for him to
500 of the richest men and women in America, and he interviewed them
for 22 years; and the first person he started with was Andrew Carnegie
and Andrew Carnegie had a reputation. He was called the 'Millionaire
Maker,' because more executives who went to work with him from humble
beginnings, became millionaires, than had ever been created by any
single executive in history. And Napoleon Hill's goal; because he wanted to
be a millionaire maker as well, with, by sharing this research, but I will tell
you, Jay Abraham is the true Millionaire Maker. He is the one who makes
millionaires.

(Applause)

He is our Millionaire Maker for the 21st Century, so I said, 'Alright, if I’m
going to be able to speak in a whole room full of millionaires, then I'll
come.' Then he said, 'But you must understand,' he said, 'I can't pay you
anything.' I said, 'Well, that's okay, because if you ask, I'll come.' Because
I owe Jay a lot of favours, he's been a very good friend, he's given me
good advice, great input; I consider him to be the guru of successful
marketing in business. So I said, 'Okay, well, I'll come, and I won't charge.'
And he said, 'But you have to be good, it has to be a good talk.'

(Laughter)

So I said, 'Jay, I promise I'll come, and I'll be good for nothing.'

(Laughter)

So here I am. Question: who's the most important person here?

(Audience replies 'Me')

Very important question by the way, because the answer is you are the
most important person here. And how important do you think you are, is
the critical determinant of everything that happens to you in life. People
who consider themselves to be important and valuable are totally
different from people who don't like themselves, or who feel inferior or
inadequate. One of the most important battles we fight in life is over all
the different influences that tend to pull us down and tear us down. The
fact is that you are important. You are some of the most important people
in the world.

In your own world, all the stars and billions of planets revolve around you
anyway. But you're important to your family, you're important to your
children, you're important to your employees, you’re important and you're
important in a special. I am a student of entrepreneurship; I spent 25
years studying the economics of entrepreneurship as well as the practice,
and I have been very successful as an entrepreneur, I'm happy to say.
What I learned is this; is that 1% of people in our society can create jobs.
99% of people can work at a job once it's been created. Only the
entrepreneurs create jobs. And it is the entrepreneurs - all the jobs in
America; 80-90% percent of all the jobs in America, are being created by
entrepreneurial businesses. You are the engines that literally drive our
society. You are the ones that create the jobs, that create the
opportunities, that pay all the taxes; if that doesn't make you mad,
nothing else will.

You are the ones that provide opportunities, provide jobs; you are the
future. In fact, I just came back from Russia; I was in Russia last week
working with - on an entrepreneurship project that I've been working on
now for 12 years. Sometimes things take a lot of time to come to fruition;
but my goal - and I was at the Kremlin, meeting with the assistant to
Vladimir Putin on this; and I’ve got complete support all the way down,
and it is to do a crash course on entrepreneurship for the Soviet Union, or
for Russia - it's no longer the Soviet Union. Because they don't understand
economics, and they don't understand free markets, and they don't
understand profitability. They were taught for years that these were all
evil things, and now they realise; and Vladimir Putin in conjunction with
George W. Bush, has said 'We have got to turn Russia into an
entrepreneurial democracy. And we've got to do this quickly.'

So what I've designed is a really neat program, and it's a crash course;
because what I've found is this. That a country is successful to the degree
to which it's entrepreneurs are respected, cared for, tended, nurtured,
fertilized, and encouraged. And a country is unsuccessful to the degree to
which entrepreneurs have a hard time. So the most successful countries in
the world; the freest, the most prosperous, the most wonderful countries
in the world are the ones that have the greatest number of entrepreneurs.

And the United States, if there’s a sweepstakes, and United States won
the sweepstakes this year, worldwide is the most entrepreneurial country
in the world. Which means that it's more possible to start here or to come
here, and to build a business and become wealthy, than any other country
in the world, ever in the history of man on Earth. So you are at the front of
the line. You're at the front of the line in terms of becoming successful,
here, right now. If you can't do it here, it's not possible to do it. Now you'll
have to learn how to do it, but the fact is that you can do it.

And our job today; my job in the little bit of time that I have; is to give you
some ideas, and then Jay's job and the jobs of the other wonderful people
here, is going to build on that. But let me ask you a second question.
What's the most important part of today? And this entire conference?

(Audience replies - unclear)

Well the answer is; and it's very important, the answer is what you do
afterwards. Hi John. It's not the fact that you're here, it's what you do
afterwards; it's the actions that you take. And I'm going to give you a very
simple principle. First of all, you are very important. Second of all, what
you do afterwards is the critical determinant. Action orientation is the one
identifiable quality of really successful people. Successful people are in
action, they're in motion, they are moving, they are doing things, they are
trying things. I cannot tell you how important this is; is that the faster you
take action; Rich DeVos told me this, long before he was one of the richest
men in the world. He said, 'Brian, we have found in our research,' he said,
'that there is a direct relationship between how fast a person takes action
on a new idea or opportunity when they hear it, and how likely it is that
they will ever take action on anything.'

Now, if you do something repeatedly over and over again, what do you
develop? You develop a habit. Now, 95% of everything we do in life is our
habits. Successful people have good habits. Successful people have done
certain things over and over again, until they become automatic. They get
up early, they get going, they prepare, they plan their days, they make
calls, they get out there, they pay their taxes, they do their job properly. In
other words, they do the things that lead to success, alright?

Unsuccessful people have bad habits. Let's just say unsuccessful people
don't have good habits yet, alright? So the development of habits is the
key to success. All successful people have good habits. Now, if you hear a
good idea and you take action on it quickly, and every time you hear a
good idea, you try it out, what kind of a habit are you going to develop?
You're going to develop the habit of action orientation, you're going to
become the kind of person who's a moving target. I know people who are
worth millions and hundreds of millions of dollars; entrepreneurs that have
never had a day in business school; tenth-grade dropouts; but they have
one quality is they're action oriented. So if you hear something good
today; and you're going to hear so many good things in the next couple of
days; if you hear these things, the most important thing is, imagine an
archer pulling the bow back; your job is to take action as quickly as you
can.

Now, if you take action, only two things can happen; what are they?

(Audience replies)

You can either succeed or you fail. Now, if you succeed, good; you do
more of that, wonderful. If you fail, what happens?

(Audience replies)

You learn something, which makes you smarter, makes you wiser, makes
you tougher, and pushes you forward. Now, here's the interesting thing.
We only learn to succeed by failing. It is impossible to succeed without
failing, and the most successful people are the biggest failures. The
people who succeed the most, fail the most. I've had this argument with
people, they say,' Oh no, successful people are just lucky people. They
just kind of lucked into the right opportunity.'

No, that’s not the case. Successful people fail over and over and over
again, but they keep picking themselves up, and trying, and they keep
getting smarter and smarter and smarter. They had four millionaires, self-
made entrepreneurial millionaires, interviewed on television recently, and
they asked them during the interview; they were sort of around the couch
like this, 'How many different businesses have you tried before you found
the one where you made a million dollars?' And they hadn't even thought
about that, so they had a commercial break, and these guys sat down and
calculated up, and it came back on again. The average was 17. They had
given 17 shots on average; some had given 30, some had given 12; but
there was 17 on average.

Now, question, okay, did they fail 16 times and then succeed the 17th? Or
did they get smarter and smarter and smarter until they were impossible,
impossible to stop. And that's exactly what happens with you. So therefore
whenever you get knocked down, whenever you fall on your face, say
'This is part of the process; this is the price that you pay. This is the price
that you pay to be in the top 1%. This is the price that you pay to be a
millionaire.' Can you become a millionaire on the cheap? Can you become
a millionaire quick and easy? Only idiots buy lottery tickets, and they say,
'Oh, I'm going to become a millionaire by buying a lottery ticket.'

No. I'm here by the way, to tell you I've got some bad news for you. Two
things: one, you're not going to win the lottery. So don't buy any more
tickets. The lottery ticket is a stupidity tax, it's the only tax people pay
voluntarily

(Laughter)

Number two; I hate to tell you this; there is no long-lost relative who's
going to die somewhere and leave you a pile of dough. So the only way
that you're going to become healthy is all by yourself, and you're going to
become wealthy by applying what we learn here. Now, I have studied
success all my life, and I'm going to try to give you just, in the time that
we have, some really good ideas, the best ideas I know. So, what I have
found; and I started off my life so far behind I thought I was first.

(Laughter)
I do not graduate from high school, I finished in the half of the class that
makes the top half possible.

(Laughter)

And I worked at laboring jobs for years and years, until, when I can no
longer get a labouring job, I, like you, got into sales. You know how we get
into sales in entrepreneurship? We back up and we hit something; we get
out to see what it was, and it's a sales job. There we are, and then we
flounder around; and then after spinning my wheels for about 6 months, I
finally went and asked somebody, 'What are you doing differently from
me?' And he told me, and I did it. I asked the top person in my company,
who was selling five or ten times as much as me; 'Hey, what are you doing
differently?' And he said, 'Well, this is how I sell,' and I won't go into the
details of it, but he had been trained by a Fortune 500 company, he had
twelve, 18, 24 months of intensive training. He knew how to sell in a
logical and orderly way.

So I begin to sell in a logical and orderly way, and my sales went up. Then
I began to come to conferences like this, and take notes, and practice
what I've learned; and my sales went up. And I began to read books and
listen to audio programs, and my sales went up until they made me a sale
mangler. And eventually they said, 'Whatever you're smoking, share it
with other people,' because it worked. So now I've trained more than half
a million sales people worldwide, and many of them, countless of them,
are millionaires today. By the way, in America today, we have five million
self-made millions. Five million. That is greater - and there's seven million
in the world; five million are in the US. Think about that, okay?

Now, if you have five million self-made millionaires, where do they all
come from. Do you know where 79% of self-made millionaires come from?
74% come from entrepreneurship. 74% come from the people in this
room. And 5% come from sales. And what do you think the most
important single skill for entrepreneurship is? Sales; the ability to sell what
you have. It's a complete idiot who say, 'I've got a great product, I'll just
find somebody to sell it.' You must be out of your mind. If they can sell it,
they won't work for you. They'll sell their own stuff, they'll make money
elsewhere.

So therefore, 79%, or almost 80% of your possibilities of becoming a self-

made millionaire contain within yourself and what you're doing right now.
And so your job is just to figure out how you're going to do it. Well, what I
found was; and this is - where are they? Excuse me. There we go, got it.

(Laughter)
If you want it done, you've got to do it yourself. Okay. What I found was
that the law of cause and effect is what predicts everything. The law of
cause and effect is the reason for everything that happens. Now if you
only had one or two self-made millionaires in America, you could say that
was a remarkable coincidence. But if you have hundreds, and thousands,
and millions of self-made millionaires, then you have to assume
something's going on here. So what we say is, 'Success leaves tracks;' find
out what successful people do, and do the same thing. The law of cause
and effect says, ‘if you do what other successful people do, you get the
same results’.

Now, here's the great application of the law of cause and effect; it is that
thoughts are causes and conditions are effects. Your entire outer world is a
reflection of your inner world. This is the great discovery in all of human
history; to me it is the greatest of all discoveries. I read it every day, and
every single time I read it, I'm just flabbergasted. Here is the great
equation, are you ready? The great equation is just this. It says that your
outer world is just simply a reflection of your inner world. If you want to
change anything on the outside, you have to change something on the
inside. This is why Peter Drucker says that 'Knowledge and know-how are
the keys to the 21st century.' Knowledge plus know-how, or knowledge
and skill, are the keys to the 21st century.

It's because what happens when you learn new things? You change the
person you are on the inside. As you change the person you are on the
inside, your outer world begins to change to reflect it. So here is the great
discovery, and I'll write it in red. You’ve heard this many times, but again,
it is the basis of all religions, and all philosophy, and all metaphysics, and
all psychology, and all success; it is that you become what you think
about, most of the time. You become what you think about, most of the
time. You become what you, think about, most of the time.

Now, here's the question - by the way, this is always true, except there are
- there are some exceptions, because if there weren't some exceptions,
then every young man would turn into a young woman by the age of 20.

(Laughter)

And all fat people would turn into pizzas. Okay. So, you become what you
think about most of the time. So the good news has been done. And by
the way, this is the rule; all the research has been done, we don't have to
reinvent the wheel. All the good ideas have all been found, we just have to
learn them and apply them; we have to take action on them. Action
orientation. Okay, so then the question is; and they've interviewed over
350,000 entrepreneurs and we sliced and diced them up by how
successful they are, and they've looked at the top 10% of entrepreneurs.
And by the way, everybody here in this room is in the top 10%, or you
intend to be. Is that correct? Say yes.

(Audience shouts 'Yes.')

Okay, so what they did is they asked these people what do you think
about most of the time? What do you think about most of the time? And
can you guess what successful people think about most of the time?

(Audience replies - inaudible)

Well, it's a little bit more than that, but I will tell you, there is a particular
mindset that leads to success, it's absolutely slam-dunk guaranteed, that
if you have the proper mind set, you will be a great success in life. But not
only that, you'll be happy all the time. Which is as important as anything
else; you'll be a happy success, alright. Well, here's what they find; they
find that happy successful people think about what they want, and how to
get it, most of the time. You think, 'That can't be that simple.' Yes,
successful people think about what they what and how to get it.
Successful people have very clear goal, they know who they are, and what
they want, they know what their priorities are; but they think about what
they want and how to get it all the time.

So I'm going to teach you your operative word, which will guarantee your
success in life, and the word is simple, "How." Say 'How.'

(Audience shouts 'How.')

From now on, whenever you have a goal, you say, 'How do I achieve it?'
Whenever you have a bill; 'How do I pay it?' Whenever you have a
problem, 'How do you solve it?' Whenever you have an obstacle, 'How do
you overcome it?' But from now on, the only question that you ask is
'How?' And it's very interesting; I was speaking to a self-made multi-
millionaire a couple of weeks ago, I went in to speak to him; he has 29
companies. He bought in an entire roomful of all of his executives, and
said 'Brian,' he said, 'Just talk to them for three hours and tell them
anything you want.' And so I did, and at the end of it, he came up to me
and he said, 'Brian, you started with nothing, and you started as a new
immigrant to this country;' he said, 'Brian, that word 'How,' he said, 'Geez,
I've known that in the past and I've forgotten in, it's the most important
thing I learned,' he said; 'That's going to become our operating word
throughout all of our companies.'

We've got lots of challenges, and the markets are up and down, and the
stock market is up, and the customer's come and go, and so on; but the
critical question, how? And here's what happened, when you ask the
question 'How?' it's like stepping on the accelerator of your own car,
sitting in neutral. (Mimics a car). And it throws off sparks of ideas.
Remember, ideas are the keys to wealth in the 21st Century, so when you
keep asking 'How?' and then 'How else?' and then 'How else can we do it?'
and 'How else?' and 'What's another way to do it?' And you keep asking
'How,' and you get everybody thinking in terms of 'How,' what you do is
you become intensely solution oriented.

Now, here's an important point. You have two types of people in the world,
the bottom; the 80 or 90% who are problem oriented, and talk about their
problems all the time; and then you have the top people like yourself who
think and talk about the solutions all the time. So one of the most
important orientations that I learned, is successful people are solution
oriented. Now, from now on, remember, the natural tendency of human
nature; it's almost like gravity, okay. In that our natural gravity is to talk
about what we're worried about, what we're anxious about, who we're
mad at, what our problems are and everything else, but the top people
don't do that.

They discipline themselves, so they wait, stop; there’s no future talking

about things that have already happened that can't be changed. We can
only talk about the things that we can do something about, so the only
question we ask is 'How?' You have a problem, how do you solve it? And
you become intensely solution oriented, and your question is 'What is the
solution?' 'Okay, I know we have a problem, what's the solution? Yes, I
know that happened, but what's the solution? Yes, I know we have a
difficulty there, but what do we do now? What's the next step?'

Because what we find, is that solution oriented people are future oriented
people. Now, does anybody here - quick question - does anybody here
have a light bulb - light at home with a dimmer switch on it? Okay, I see
some of you are too tired to raise your hands. Yeah, those are the people
that like to go through the revolving door of life on somebody else's push,
you know? 'I won't raise my hand, I'll let the person next to me raise their
hand.'

(Laughter)

Lazy buggers. (Raises voice) How many people have dimmer switches at
home, for Christ's sake?

(Audience shouts)

Thank you so much, geez. We've got to put more juice in that coffee, Jay.
Anyway, so a dimmer switch can be controlled mechanically by either
turning it or pushing it up and down. Okay, that's a dimmer switch. Now,
when a dimmer switch is on full, it's fully bright, okay? When a dimmer
switch is down, it's low and dark. You have a dimmer switch on your brain,
and this is critically important. You have a dimmer switch on your brain,
and it's the critical determinant of your success and happiness in life; it's
so simple. You have tremendous mental abilities, but it's like a light bulb;
it's turned down, then it just gets very, very little light. But if it's turned
up, it gives you tremendous life. When you dimmer switch is on full, and
it's full bright; you are creative, you are positive, you are confident, you
are happy, you are powerful, you have high energy, you're immune
system is strong, you need less sleep, you're more effective in your
interactions with other people; it's everything good when your dimmer
switch is on full.

When you dimmer switch is down low, because of problems, difficulties;

you get worried, you get anxious, you get nervous, you're frustrated,
you're irritable, you snap at people, you don't sleep well at night, and so
on. Does anybody know what I’m talking about? And our dimmers
switches, by the way, are going up and down all the time. Now, a physical
dimmer switch you control with your physical - mechanically, with your
hand. And a mental dimmer switch, you control with your thoughts. And
there are certain thoughts that you think that keep your dimmer switch on
full. One of the things that's going to happen is a result of this conference,
is not just at the end of the conference, but throughout the conference,
you're dimmer switch is going to go 'Wham, wham, wham,' you're going to
- 'Boom, boom;' you're going to have ideas and sparks, because whenever
you hear a good idea, that you think can help you, your dimmer switch
goes on full. It makes you happy.

Human beings are naturally creative, and whenever we have a good idea
we feel happy, it just kind of 'Whoo;' even if we haven't done anything
with the idea yet, we feel happy. I mean, if we sit there and think about
what we're going to do afterwards or go - well, never mind, I won't go into
that. It makes us happy. Anyway, the very anticipation of an event. They
say 85% of all of our emotions are determined by our anticipation of what
will happen. If we think, 'If we use this, we're going to be more successful,'
it makes us happy just to learn the idea.

So there's certain thoughts that you're thinking; I could spend all day on
this, but when you think about solutions, your dimmer switch goes on full.
When you ask the question 'How?' your dimmer switch goes on full. When
you think about the future and where you're going; and Jay was talking
earlier about having a clear reason, mission, vision, which we'll talk about
in a second; for you future, whenever you think about an exciting future,
your dimmer switch goes on full. And the interesting thing is, if you keep
thinking about the things that you want, and how to get it, and you think
about your problems and how to solve them, you think about your goals
and how to achieve them; eventually it becomes a what?

(Audience murmurs)

It becomes a habit and you develop the entrepreneurial mindset. The

entrepreneurial mind set is a person who's always positive, forward
orientated, thinking about where they're going, thinking about how to
remove the obstacles, The non-entrepreneurial mind set is a person who's
passive, waiting for things to happen, complaining about life, wahh wahh,
bitch, bitch, moan, moan. 'My mother didn't love me, my father was this,
my childhood sucked.' Did anybody here have a lousy childhood, say yes.

(Audience shouts 'Yes.')

Good. Get over it.

(Laughter)

We don't want to hear about it anymore. I don't ever want you to talk
about your lousy childhood ever again. Because do you know how many
years are consumed, and what I found in meta-physics was this, the more
you think about subjects that make you unhappy, the more unhappy they
make you. And eventually you get to the point - quick aside, sidebar no
extra charge, Jay.

(Laughter)

What's the most popular prescription drug in America? Prozac, and it

replaced Valium, which replaced something else; and Prozac is an anti-
what? It's an anti-depressant. Now, today we have 1000% increase in the
last 100 years, a thousand percent increase in depression in America. 'I'm
depressed, they're depressed, they're just depressed, they're so
depressed, they've got to have pills, I'm so depressed.' Why are so many
people depressed? Well, they did a 22 year study at the University of
Pennsylvania, and they figured out why. People are depressed because
they sit and think about their problems all the time.

They sit there and - have you ever made tea; you put hot water, boiling
water into tea, and you forget about it, and the hot water works on the
leaves, and they steep. You know what steeping is? They steep, and tea
becomes darker and darker and darker. Well, the word that they came up
with at the University of Pennsylvania - this is in a psychological study -
was the word 'mull’. Unsuccessful people, unhappy people mull over their
problems, they think about their problems all the time, they steep the tea
leaves of their problem, they mull; and their minds become blacker and
blacker. And pretty soon they actually change - their thoughts actually
change the chemical construction of your body, and they actually make
themselves physically ill. It's called psycho-somatic medicine. Psycho; the
mind, make soma; the body, sick.

85-95% of our health problems today are psychosomatic, as people are

just thinking over their problems, and the more you think about your
problems, the more depressed you become. So they say, 'I'm depressed.'
Now, people say, 'Well, this person has a bio-chemical problem that's
leading to depression. Yes, it's called stinkin' thinkin'.

(Laughter)

That's what it is. It's what they're doing. You know, if I said, 'You become
what you eat,' you would say, 'Well, everybody knows that.' I mean, if you
eat really good healthy foods, fruits, vegetables; everybody knows the
proper foods to eat; if you eat these foods they eventually affect the
chemistry of your body, cell structure and everything else. Everybody
knows that, don't waste time with that. We've heard that a million times,
okay? We don't eat any better, but we heard it, okay? Now, it's the same
thing; you become what you think about; whatever you feed into your
mind. That's why coming to a place like this - do you know how many lives
have been changed by coming to a conference like this? There's
something about being in a room full of incredible people, all of who have
great ideas, ambitions, hopes, aspirations and so on; that creates a force
field of energy in the room, and you will have ideas. Here's my promise.
You'll have an idea, Jay will be talking, or someone else will be talking;
you'll have an idea, and it'll spring into your mind like one of those little
lightning things in the cartoons, and it'll have nothing to do with what the
person is saying.

And it'll just, 'Boom,' this idea - just 'Boom,' like that. And what you do,
here's the rule, catch the idea and write it down. When you get an idea,
don't wait. Just write it down quickly, because that idea might be worth
the whole conference, and nothing in the conference was about that idea.
Because the room; there's an atmosphere of intelligence in this room that
everybody can tap into. It's almost like an electrical force field that you
can tap into. So your job is to keep your mind on what you want. And the
reason why people are depressed is that they're going to talk about what
they don't want all the time. So when a person starts talking about
something they don't want, say, 'Is that what we really want? If we don't
want it, let's stop talking about it.'
Now, a friend of mine who is a psychiatrist, said, 'In 25 years of psychiatric
counselling,' he said he most common two words he ever heard; when he
met with a client for the first time, or even later; were these two words.
And the words are 'If only.' 'If only, if only, if only I'd done this, if only I'd
done that, if only he or she hadn't done this, done that; if only my parents,
if only my spouse, if only my kids, if only I hadn't hired that SOB that
robbed me blind; if only, if only, if only.'

Well, you can take all your 'if only' and your 'could haves' and your 'should
haves,' and add 50 cents and buy yourself a cup of coffee at a cheap
place, okay? The fact of the matter is, that all if onlys refer to the past. I'm
going to give you a piece of advice, is let the past go. The past has only
one value for us; it teaches us to be successful in the future. So what you
do is you sort the wheat from the chafe, and you take out the things from
the past that were helpful, and let the rest go. And don't ever say 'if only'
again. 'If only I invested in real estate in this area 10 years ago, I mean...'
Well you were broke then and you're broke now, so shut up.

(Laughter)

In other words, get your head out from wherever it is stuck, and get on
with the future. And don't worry about the past. The past, you can't
control the past. 80, 90% of people's energies are immersed in worrying
and talking about the past. Your job is to be future-oriented. Your job is to
be solution oriented. Your job is to think about and talk about what you
want and where you're going; that's the key to successful
entrepreneurship. Entrepreneurs are in motion, in a forward motion, all the
time. Now, there's an incredible thing; I'll come back to this in a minute,
but when I was in China recently, I found that the Chinese - I was speaking
in Shanghai, we've got 20 million people in Shanghai. Woo. I'll tell you,
thank God those entrepreneurs don't come over here, they'd eat us alive, I
mean, these people eat raw meat. I mean, they're hungry, I'll tell you
what. 16 hours a day, that's slacking, you know.

So anyway, but the Chinese believe in luck. The Chinese believe a lot in
luck, okay? And the reason is because throughout all the history of China,
there have been wars and revolutions, and famines, and plagues, and
mass murders, and one tribe massacres another; so life has been
extraordinarily unpredictable, right up until recently, by the way; the way
the Communists come over, kill tens of millions of people and so on; you
never know what's going to happen. So, the Chinese believe that a lot of
everything that happens in life is luck. Well, I have studies this subject for
many years, and what I've found is that there's a difference between what
we call luck, and what is called chance.
Now, chance is what takes place in casinos. You draw cards, you roll the
dice, you put your money down on the roulette table; none of which you
know anything about, but - ah, but this is chance; you have no control
over it, you have no control. What we find, by the way, is that
entrepreneurs do not like games of chance. Entrepreneurs do not gamble,
they don't go to Las Vegas, they don't buy lottery tickets, they do not
believe in gambling. And by the way, if you believe in gambling, get it out
of your head, because what it does, it's a defect in your computer. It's a
bug that eventually poisons the whole program, because the gambling is
always an attempt to get something for nothing. An attempt to get
something for nothing starts off with a little tiny thing, and it actually
grows, and it gets worse and worse, and then we have Enron, and all of
these scandals that people go to jail for years and years.

So, what I found is that luck is really a matter of probabilities. Now, there's
a probability that everything will happen. There's a probability that if you
flip a coin, it'll come down heads or tails. What's the probability? Can we
turn on these light full please? Who turned the lights down? Please turn up
the lights, okay. Don't touch those lights, I'll smack your hand. This is not a
nightclub, this is a seminar, right?

Ah, so, what is the probability that a coin will come down heads or tails?
50%. You could flip a coin all day long, what's the probability next time?
Always 50%. Now, there's a chance in America, that the people will
become millionaires. What is the probability of you becoming a millionaire
if you're in America. I mean, just basically if you're born in America, grew
up in America. Or you could move to America. What's your probability? It's
5%. 5% of American families have a net worth of more than a million
dollars. By the way, please understand this, everybody in America starts
of broke. America was started by brilliant, brilliant people who decided to
create a country where people could start off with nothing, and become
successful.

It's the only country in the history of the world that has a Constitution, Bill
of Rights, Declaration of Independence, and legal structure that is
designed for the common man. No other country, in human history, has
ever had it. Now, you've got a lot of left wing, pinko, limp-wristed people
in government, who think that America should be a great Communist
society, and so on, and so these people are always trying to raise taxes
and increase regulations, and diddle with the law. They have tried to fight
Supreme Court Justices who want to interpret the law the way the
founding fathers wrote it, and all these other people want to game the
law. And there's people on the left who are always trying to game the law.
They believe the law is there to be broken if you can get away with it.
We've had them in office for 8 years, okay? And that's why we have so
much trouble today; everybody thought that the law was there to be
gamed. So you've got so many people trying to cut corners, the fact of the
matter is, society is not ruled by law; it's a society ruled by chaos.

We must have law and order. If you don't like the laws, we work to change
them, but we obey the laws. One of the most important things about
being an entrepreneur, is always pay your taxes, always obey the law.
Never do anything that is dishonest. If ever you do anything that's
dishonest, it's like putting your hand into a bear's mouth, and the bear
closes their jaws; getting out of the legal system is a nightmare. Don't
ever get into it. Are you with me so far? Don't ever - they say that
entrepreneurs are always trying to cheat on their taxes; don't ever cheat
on your taxes. We don't like taxes, we all fight for people like Bush, who
wants to lower taxes, but don't ever mess around with your taxes. Once
they catch you, they're the most terrible human beings that ever lived,
those people in government. Awful. Okay, well, so.

(Applause)

So, it's really important. It's better to be poor and honest, than be rich and
dishonest, because remember, as Satchel Page once said, 'You better keep
moving, because something might be gaining on you.' Okay, they're
gaining on you and you always get caught. People think, 'Well, I'll game
the system;' you'll always get caught. Something about the legal system;
you always get caught. So don't get caught.

So anyway, probabilities. There's 5% probabilities. Now, that's pretty good

probabilities; highest probabilities in the world; 5% will become
millionaires. And as I was saying before, by the way, about being broke,
well some people complain, 'Well, I don't have any money, how can I
become rich?' Well I got news for you; nobody has any money to start off
with. American's like being broke so much, they keep going to it
throughout their lifetime.

(Laughter)

Being broke is the normal thing, all self - self-made millionaires on average
have been broke, or nearly broke, 3.2 times. So if ever you've come to the
edge, you've come almost - gotten broke or you got deeply in debt and so
on, join the crowd. When you get deeply in debt, and you get under the
gun, and the pressure is high, and you're in an emotional pressure cooker,
and you are scrambling; you know what's happening? You are learning at
an incredible rate, like a fusion reaction. One really tough business
experience that almost destroys you, if you don't - as [unclear] said, 'What
doesn't kill me makes me stronger;' one really tough business decision will
teach you more lessons that will enable you to be successful than
anything you can imagine. As a matter of fact, when you are going
through hell, you say, 'Thank God, oh boy, this is really helping.'

(Laughter)

'Boy, am I learning a lot.' Okay. So, the fact is, if you're playing with the
gun; well, if you've got 5% chances, it's like playing Russian Roulette with
a gun that has 19 chambers loaded, and one empty. There's (imitates a
barrel of a gun spinning), and push the - [unclear] the bullet, and not good
odds, okay? So what is your job throughout life, in terms of becoming
wealthy and happy? Your job is to increase the...?

(Audience replies)

Probabilities. And everything that you learn that helps you to become
better, like here, increases the probabilities. When you think about the
solutions, you increase the probabilities. When you know exactly what you
want, you increase the probabilities. When you treat other people well,
you increase the probabilities. When you take good care of your physical
health, you increase the probabilities. And you'll find that financial success
is rare, but it's a result of a whole series of probabilities. The person who is
successful has done a whole lot of little things. One thing they didn't do,
they didn't step on their own windpipe by doing things that were
dishonest.

Okay. So, what we find is that the most important single quality for
success as an entrepreneur - number one quality is the quality of
optimism. Entrepreneurs, in studies of tens of thousands of successful
entrepreneurs, we find that entrepreneurs are optimistic. They're positive
about themselves. Now does this mean that they're positive all the time?
No, it just means that in general, they tend to be positive and
constructive about their life and their work. And that's why Napoleon Hill,
in the middle of the depression, wrote his book and said that the key to
success is a positive mental attitude. Everybody goes, 'Wow, that's a
remarkable thing.'

It's a positive mental attitude. PMA. Now, optimism is what they

discovered at the University of Pennsylvania as being the predominant
quality of the highest paid, most successful and highest paid people and
happiest people in our society. So optimism; and what the conclusion was
that optimism was learned. People learn to be optimists or they learn to
be pessimists. They learn to be optimists by thinking about things that
they want, and they learn to be pessimists by thinking about the things
that they don't want. And they learn to be optimist by thinking about their
future and their possibilities. and they learn to be pessimists by thinking
about what happened in the past that they can't change. Are you with me
so far?

Now, here's the rule from Gary Zukav. He says, positive thoughts
empower. Whenever you think a positive thought, you feel more powerful.
When you think a negative thought, it disempowers, it weakens you,
makes you angry, turns your dimmer switch down. So there are three
ways that you become an optimist. Number one is you think and talk
about what you want. Think and talk about what you want, and how to get
it.

This is - if you just did this, by the way, go home now. Because I promise
you this, the more you think of talking about what you want, and the more
you focus on how to get it, which is why we're here today, the faster you'll
move ahead. The greater the probabilities will be that you'll be successful.
Number two is, they look for the good. Imagine that everything that
happens, happens for a good reason, so look for the good in every
situation. Look for the good in every person. Your business went broke;
well that's okay, it was a lousy business anyway. Your house burned down;
well, that's okay, we needed a new house closer to the office. Your car got
stolen; well, the ashtray's were full, who cares. You know.

In other words, you become - you always look for the good. Now, here's an
interesting thing. It's like a dog looking for a bone; 'sniff, sniff, sniff, sniff,
sniff.' If you keep looking for the good, you will find it. In the Bible it says,
'Seek and you shall find; for all who seek, find it.' It means that if you look
for the good, you will find something. And the interesting thing is your
mind can only hold one thing at a time, positive or negative. It's called the
law of substitution. So therefore, if you look for the good, you knock out.
You block out, by substitution, all negative thoughts. So if your life is going
to hell in a hand basket, you say, 'Oh, that's good. That's good, that's
great.'

So these are your words; 'That's good.' W. Clement Stone would say
'That's good,' all his life; he started off selling newspapers on the streets
of Chicago, and died worth $800 million. And he taught people to always
be optimistic, always look for the good. And the wonderful thing is, if you
look for something good in any situation, you will always find something
good. Now, here's the second key to - third key - to becoming an optimist;
you seek the valuable lesson. And this is so important; you make it a habit
to always look for the good, and seek the valuable, valuable lesson in
every situation. And if you seek the valuable lesson, surprisingly enough
you'll always find it.

In studies of hundreds and hundreds of self-made millionaires, multi-

millionaires and billionaires, you find that every one of them have
developed a habit, a habit of looking into every single setback or difficulty,
for the lesson. And they always find it. There's always a lesson that is
actually worth more than the problem. And sometimes it is the lesson that
turns your life around. Sometimes a setback, when it occurs, in retrospect,
you say, 'Thank God that happened, because if hadn't happened, I'd have
kept on that course of action, instead of going on this course of action,
where I achieved my great success.'

Now, here's something that was discovered, by the way, by Buckminster

Fuller, and it's very important. It's called the theory of procession. And it's
not discussed anywhere, but it's something that I have learned, and it was
rediscovered in a 12 year study and Babson College, amongst successful
entrepreneurs. And they called it the corridor principle. They said that
when you set off to achieve your success, usually your target is here,
okay. It's a certain amount of sales, a certain amount of profitability, and
you start of down a corridor, like you're walking down the corridor of this
hotel. And as you walk down this corridor, towards your target, because
that's where you think it is, something happens and your path is blocked.
Okay? The market changes, collapses, run out of money; a thousand
things happen. However, at this point, another door over here opens. And
there's another corridor, so you start down this other corridor. And your
target seems to be down here. It seems that the target has shifted, and
you start down there, and, as you start down this here, you hit another
block.

But each time you hit a block, another door opens and you start down
another block. And you start down here, and you hit a block, and another
door opens. And this is the way life is. And eventually what happens;
another door opens, and you eventually, by the way, find another door
opens, and eventually, you find yourself at your target, which was
financially independence; you find yourself there in a totally different way
to than you expected. Almost every single person who succeeds, succeeds
in a different way, a different area, a different product, different service,
different market, different customer base, different business model; than
they started off with. But they said, 'Now, here was the key to success.'
The difference between successes and failures is successful people
wanted to have everything just right before they started down the
corridor.
I mean, unsuccessful people. Successful people just started. And so the
most important word that you'll learn is the word 'launch.' Is 'launch'
towards your goals, just throw yourself, as we say, leap, and the net will
appear. So what you do, is you get a good idea, you just launch. You
project into action, you take action on it with no guarantees of success.
And I'll tell you, this is what they found at Babson College in 12 years, in
the entrepreneurial faculty. They found the difference between successes
and failures is that successes are willing to try with no guarantee of
success. Failures are always wanting a guarantee. Always want to be sure;
'I want some kind of guarantee that I will be successful if I invest my time
or money.'

But successful people sort of say - they think it through, they take a
chance, they get an idea here from Jay or someone else, they say, 'It
sounds good,' and they just try it. Now, as soon as you try it, what
happens is you get feedback, instantly. And the feedback, gives you
feedback that enables you to self-correct, and change course, and often,
you will self correct and you'll get feedback; 'Whoosh,' and you'll change
course; 'Whoosh,' you'll change course; 'Whoosh,' you'll change course;
keep changing course; be like a long-tailed cat in a room full of rocking
chairs. I mean, you're moving all the time. And the interesting thing is, the
more you move, the more you change direction, and the more you'll take
in new information and ideas, the more you increase the what?
Probabilities that you'll be successful.

And when you finally achieve your success, people will say, 'You know,
you're just lucky.'

(Laughter)

'Well, I got up every morning early, I worked hard all day, I planned my
time, I worked on high priorities, I attended every conference, I listened to
tapes, I read books, I did all of these things for 15 years, and finally broke
through and made a million dollars, and that was just luck? While you
stayed at home watching television, scratching your belling and bitching
about your childhood?'

(Laughter and applause)

I love you guys, I'm so happy to be with you, because we are all the same.
I mean, I feel like you're my brothers and sisters, because we're all going
through this. I'm running my own businesses right now; I'm one of the few
people who's built a million dollar Internet business. You know anybody? I
make more money than Amazon.

(Laughter and applause)

Their volume is greater but they still don't make any money. And I cannot
tell you all the heartaches that I've been through. How many times do you
get lied, deceived, cheated, swindled? I mean, this goes with the territory.
Small business people seem to be either victims of our society; everybody
wants to tear a piece out of them, until you become big enough to tear a
piece back. Alright. Okay.

So launch with no guarantee of success, and that's the key thing.

Successful people think it through and then launch with no guarantee of
success. The most important single quality for success is courage. Just
have courage and its sister quality; self-confidence. Courage and self-
confidence. Now, courage and self-confidence are learned qualities. How
do you learn courage and self-confidence?

Going right back to Aristotle; how do you learn it? You practice it whenever
it's required. And even if you don't feel courageous, you take a deep
breath and you do it anyway. You just whistle through the graveyard.

I remember this story of motivation. This fellow is on his way home one
night and he's running quickly, and the sun is setting, and he's in a real
hurry, and he should probably be home for dinner, and he lives way on the
other side of this city cemetery. And he things, 'Well, I could really save
some time if I just cut through the cemetery.' So he says, 'I'll cut through
the cemetery.' So he's hurrying through the cemetery as fast as can; he
doesn't want to be in the cemetery, and it's just nightfall, and he comes
racing around this hedge and he drops right into an open grave, that had
just been dug, for use for the next day. And it's about 10 feet deep and
about 4 feet wide, and about 8 feet long, for a large casket, and he drops.
And he falls in the - the earth is soft, so he doesn't hurt himself, and he
lands in this grave. And he says, 'Geez, whoo.' And he looks up, and it's
night, and he starts shouting, 'Help, help, help!' There's nobody there.
'Help, help,' nobody's there. And he thinks, 'I've got to get out of here.'

So he started jumping up and he starts to brace himself against the wall,

and he jumps up, and it's just too high, it's just too wide, and he can't get
out. He keeps pulling the edge down and he thinks, 'Damn, this is stupid,
what a stupid thing to do, why didn't I watch where I'm going,' and he
tries, and finally - he's exhausted, and he's tired and dirty; he's sitting
there and he thinks, 'Well, the worst that can happen is that I'm stuck here
all night long, and they'll find me tomorrow morning. My family will be
upset.' Jesus, he's dumb. And he sits down there in the bottom of the
grave and it gets completely dark, and he's sitting there just sulking,
okay? 'Damn, damn, damn.' Then he hears this (knocks on something)
and then 'Boom, boom,' and then somebody comes and drops - falls in the
other end of the grave.

(Laughter)

Just the way he did. And he's sitting there like this is the pitch black - 'Isn't
that funny, that's exactly what I did.' And he the guy picked himself up
and he swore, and he started to jump up and he tried to get out and
everything. And he says,' That's just what I did.' And he sits there
watching in the dark, his eyes have just adjusted to the dark; he sits and
watches this guy swearing and getting all dirty and everything else. And
he thinks, 'Well, I might as well let him give it his best shot. That's what I
did.' So he sits there quietly, then he finally says - the guy is going
(breathes heavily), and he says, 'Well, I should probably, you know, tell
him I'm here.' So he gets up and he puts his hands on his shoulder and he
says, 'Sir, you can't get out of here.' But he did!

(Laughter)

It's amazing what you can do with motivation. Okay. Now, I just want to
ask you a quick question.. Does anybody here have any problems?

(Laughter)

Well, here's the rule. Life is a continuous succession of problems, and

when you enter onto the entrepreneurial seas, they will be storm-tossed.
And there will be nothing but problems up and down. Problem after
problem after problem. As a matter of fact, problems are inevitable,
they're unavoidable, they're continuous, like the waves of the ocean. They
just keep coming. Now, unfortunately or fortunately, there will be a break
in your problems, and it's called a ‘crisis’.

(Laughter)

So you will have - and I believe that problems and crises are very much
like the waves of the ocean. You have the surfers' waves that come in
every seventh wave. So you have problem, problem, problem, problem,
problem, problem, CRISIS! (Repeats) And so on. So your life is like a
person whose heart is defibrillating, (mimics heartbeat), Boom.

So - and by the way, if you're an entrepreneur, you're going to have a

crisis every two to three months. One of the rules is; running an
entrepreneurial business; every two to three months you'll have a crisis
that can sink the business if you do not respond to it effectively. That's
just the way the world works. These are the probabilities.
And so what that means, by the way, and this can be a personal crisis, a
health crisis, a family crisis, a financial crisis, a customer crisis; who knows
what it is. In fact, your ability to deal well with problems and crises is
really the test. It's the mark of whether or not you've got what it takes to
be successful. So what that means is that everybody in this room is either
in a crisis right now, has just gotten out of a crisis, or is just about to have
a crisis.

(Laughter)

Now, if you go to a doctor and you take a stress test, okay, and the doctor
gives you a stress test and they put you on the exercise machine and you
get your heart - first of all they take your pulse, get your heart rate as
high as they can, then they take your pulse again; then 5 minutes and 10
minutes later, they take your pulse; what are they testing for?

Your recovery rate, that's right. Now, please understand this, it's a very
important point. Is that if you have a crisis, a setback, a problem; the only
way that you cannot be upset when you have a setback, a reversal, a
problem of any kind is if you just don't care. Now, it's not possible to live -
only sociopaths and people who get elected to public office - you know the
problem with politics, and I won't talk about politics anymore, because it
just makes us mad. The problem with politics is the world politics. It's the
root. It comes from the Greek. 'Poly' means many and 'tics' means
voracious bloodsuckers.

(Laughter)

Anyway what they do is they test, and what they do is they test to see
how quickly you recover. So you will have problems and crises, and you
will respond to them. Every time you have a setback, according to the
psychologists, you - it feels like an emotional punch in the solar plexus. It
feels like a shock, it actually stuns you when you have a setback. It's like
(mimics getting punched), and you're disappointed, and it kind of stops
you for a while. And sometimes you'll get angry, and sometimes you'll
lash out. This is normal and natural, it's okay. Only if you don't care about
the result, can you not respond. However, in medicine, we call this your
recovery rate, but in psychology we call this your response ability.

What is your response ability? How quickly do you respond to difficulties?

Now, nothing wrong with being set back, but how fast you respond. The
key is not getting your heart rate up, but how fast do you recover? That's
the mark of health. And physical health, if you have a very fast recovery
rate, five or ten minutes; your heartbeat's back down to normal, what that
means is pretty much your whole system is pretty good. That's one of the
very best tests of your overall health, is a stress test. That's why anybody
over 40 who applies for an insurance policy has to have one; it's a real
good test, okay.

Well, your stress test; it comes all the day. Almost every day, you'll have a
stress test, and you'll be a little bit taken aback when things go contrary
to your expectations, but the question is how quickly do you respond?
How well do you respond, and then your responsibility is the key.

So here's the three words that you want to learn to use for the rest of your
life, and they are the words, 'I am responsible.' I am responsible. I am
responsible. I don't blame anybody else, I am responsible. I take
responsibility. Say it, say I am responsible.

(Audience says 'I am responsible)

What that means; I'm in charge of my own life. I have chosen this life. I
have chosen to be an entrepreneur. It's going to have ups and downs and
turbulence and everything else; I'm going to have setbacks and reversals
on the way to becoming smart enough to become rich and to hold on to it.
Okay, so I'm not going to complain or bitch or whine or moan about it, I'm
only going to do the third things, which is seek the valuable lesson. Seek
the valuable lesson. So we look for the - we think and talk about what we
want, we look for the good and we seek the valuable lesson. And here's
the wonderful point, as I said before, you will find the lesson if you look for
it.

So here's a critical thing I want to teach you with regard to problems. I

want you to take your biggest problem in life right now, whether it's a
personal problem, health problem, financial problem. Take your biggest
problem in life, which is the problem that causes you the most concern or
worry or aggravation. Just think about what it is. Now we all have
problems stacked up like dinner plates.

And the top dinner plate is our biggest problem, and the next dinner plate;
we all lots of them, okay. But there always tends to be one that's kind of
bothering us the most. What I want you to do for the rest of your career is
to imagine that your biggest problem of the moment has been sent to you
by a great power that loves you, and wants you to be successful and
happy. And this great power knows that the only way you can be
successful and happy, is if you learn critical lessons on the way through.
And these lessons - you only seem to learn lessons - this power knows you
well; you only learn lessons when it hurts. Have you noticed that?

We don't get free lessons. Every lesson costs us money, costs us time,
costs us emotion. And so when we have paid the price for a lesson, that is
the time when we're the most open to learn. So your job is to look into
your biggest problem, and say, 'What is the lesson contained in this
problem? What I am I meant to learn that will help me in the future to be
better?'
Jay Abraham Mastermind Marketing 2
And if you look into it, my promise is you'll find it. But don't just settle for
the first lesson. Because lesson often are in several levels. And so what
you do is you say, 'What else could be the lesson? And what else is the
lesson I could learn here? And what else might be the lesson that I'm
meant to learn?' Because this problem has been sent to you to help you.
This power loves you and wants you to be successful. And so this power is
structured this intricate lesson for you, so that you can learn it, and if you
learn it, it's almost like a trophy; you can take it and go to the next level.
It's almost like an examination certificate that you pass; you can now
graduate to an ever bigger set of problems and crises.

(Laughter)

But you cannot move ahead. People in life move up to the degree to which
they solve the problems at their level. But you only solve problems by
looking for the solution and looking for the lesson in each problem. My
friend, Dr. - Norman Vincent Peel, used to say 'When God wants to send
you a gift, he wraps it up in a problem.' And the bigger the gift that God
wants to send you, the bigger the problem he wraps it up in. Now, I know
many of you feel like its Christmas morning at your house. But every
single problem you have contains a gift. And if you're looking for the gift,
your dimmer switch goes on full. If you're looking for the gift, you're more
creative and positive. If you're looking for the gift, you're more optimistic;
you feel more in control.

If you're looking for the gift, you have more energy, you feel better about
yourself. You feel powerful. Are you with me so far? Now, they sound like
mind tricks, but these are the things that have been discovered
throughout all of human history as being the key ways of thinking of the
most successful and happy people. And at certain points, you'll reach a
point where you are, by habit, a positive, constructive, optimistic person;
you still have reversals but you'll just bounce back from those reversals.
And leadership - my friend Colin Powell; I worked with him many times,
said, 'Leadership is the ability to solve problems. Success is the ability to
solve problems. And the way we solve problems is we search for the
solution and we look within each one for the valuable lesson. And my
promise is, you'll always find it.

I have four children, okay. I was, like a philosopher said, 'Before I had any
children, I had four philosophies about raising children, and now I have
four children and no philosophies.'

(Laughter)
And I learned something from my family, and my parents were critical,
destructive, not great parents; had no experience, alright. Plus they went
through the Depression, plus World War 2, plus my mother was raised in
the Roman Catholic Church; and so I say 'I come by my feelings of guilt
and unworthiness honestly.'

(Laughter)

And so, however and I used to complain about that. I remember with a
young woman I was going out with some years ago, and I just started
complaining about my father; 'Wahh, wahh, wahh, wahh,' which we all do;
and she said, 'Brian,' she said; 'Stop for a second. Are you happy to be
alive?' I said, 'Yes.' 'Are you happy to be the person you are?' I said, 'Yes.'
Then she said, 'Shut up.'

(Laughter)

'Because at least you're parents got you here and gave you a ticket to
[unclear 2:46], okay? They gave you an opportunity to be the person you
are, so don't complain about them anymore; I don't want to hear it.' And I
never did. That was the end of it. I said, 'Well, yeah, they got me here.
They dropped me off here, and I'm happy to be here. They may have
screwed up on everything else but they did that alright.' So I made a
decision, though; but the great thing for my kids - when my kids came
along, I said, 'By gum, my kids are not going to be destructively criticised,
they are not going to be physically punished, they are not going to be
made to feel like they're bad kids, I'm not going to shout at them and tell
them how terrible they are; I'm not going to do any of the things that my
parents did to me.'

So what I did is, I did a reverse. And I was conscious - and my wife and I
are very, very in tune to this our kids have never been criticized and never
been punished; physically punished, and you know what? Our kids are
great kids. They are stand up kids; they are confident, they are positive,
they are happy, I mean, they are just wonderful children.

And whenever they have a problem, my mother was one of those gunny-
suckers. You'd made a mistake when you were 7, she would still rub it in
your face like a piece of poop when you were 17.

(Laughter)

(Laughter) And so, how I - and I used to complain about that. I remember
with a young woman I was going out with some years ago, and I just
started complaining about my father; 'Wahh, wahh, wahh, wahh,' which
we all do; and she said, 'Brian,' she said; 'Stop for a second. Are you
happy to be alive?' I said, 'Yes.' 'Are you happy to be the person you are?' I
said, 'Yes.' Then she said, 'Shut up.'

(Laughter)

'Because at least you're parents got you here and gave you a ticket to
[unclear 2:46], okay? They gave you an opportunity to be the person you
are, so don't complain about them anymore; I don't want to hear it.' And I
never did. That was the end of it. I said, 'Well, yeah, they got me here.
They dropped me off here, and I'm happy to be here. They may have
screwed up on everything else but they did that alright.' So I made a
decision, though; but the great thing for my kids - when my kids came
along, I said, 'By gum, my kids are not going to be destructively criticised,
they are not going to be physically punished, they are not going to be
made to feel like they're bad kids, I'm not going to shout at them and tell
them how terrible they are; I'm not going to do any of the things that my
parents did to me.' So what I did is, I did a reverse. And I was conscious -
and my wife and I are very, very in tune to this our kids have never been
criticized and never been punished; physically punished, and you know
what? Our kids are great kids. They are stand up kids; they are confident,
they are positive, they are happy, I mean, they are just wonderful
children.

And whenever they have a problem, my mother was one of those gunny-
suckers. You'd made a mistake when you were 7, she would still rub it in
your face like a piece of poop when you were 17.

(Laughter)

You know what I'm talking about? We all had parents like that. Well - so
what I would do, is, my kids make a mistake; they get into trouble with the
law, they get in trouble at school, something like that. I'd bring them in, I'd
sit them down and I would say, 'Alright, what happened?' And they tell me
what happened. I say, 'Wow, well geez.' But I got into a lot of stuff when I
was young. By the way, if you have good kids, good kids get into stuff.
Don't be so prissy. Good kids get into stuff. Crummy kids sit at home and
look at a stick, okay?

(Laughter)

Great kids get into stuff. Because why? Because they've got energy,
they've got ideas. They get into stuff and they make mistakes. Human
beings make mistake. You and I are adults and we make mistakes every
day. They're kids, they have no experience, they make mistakes. So when
my kids make a mistake I say,' Alright, alright, I did the same sort of
things. Alright. What did you learn? What did you learn from this?' First of
all I say, 'Do you accept responsibility?' 'Yes I am responsible.' 'What did
you learn?' And they say, 'Well, I learned about this, and I learned that,
and I learned this and I learned that.' And I said, 'That's great.' So what we
do is we take the problem or challenge they have, we put it in the middle
of the desk, and we talk about it as though it happened to someone else.
And we say,' Well, what should we do now? What are you going to do,
what's your next step?' and so on.

And we just talk about it like it's just a neutral thing. And we talk - and my
kids come up with great solutions; what they’re going to do, what they're
not going to do next time, and so on. I said, 'Boy, that sounds pretty
smart. You might want to think about this as well,' and I maybe put in a
little bit, and so on. My son's walk away, my daughters walk away, and
they don't feel guilty and they don't feel their parents don't love them or
anything else; they feel their problems are normal. It rains, you have
problems, you make mistakes, life goes on. Right? And that's what I do
with my staff as well. You had a problem, I say, 'Okay, well, everybody
does the best they can. What do we do next time to make sure this
doesn't happen?'

And here's one of the most wonderful expressions you can use for people
that you work with for the rest of your life; it's the expression 'next time.'
Alright? The rule is, never beat up somebody for something that is already
happened that can't be changed. Never criticise a person for something
they can't do anything about; they can't change. A person comes in:
'You're late.' They can't go out and come in early. You know? You smashed
up the car? I come home, my wife has smashed up my car. She's - it's a
Mercedes, new Mercedes. (Mimics crying). 'It doesn't bother me, doesn't
bother me.' Anyway, she got into the car, she was in a hurry, and one of
my kids got into the backseat, left the door open. She backed out of the
garage with the door open.

(Laughter and groaning)

Has anybody ever had this happen? Twice? (Laughter) And I call home - I
remember, I called home, and she said, 'Brian, I-I-I'm so sorry, I drove your
car, blah blah.' I said, 'Honey, the car can be fixed. Don't worry about it,
it's a done issue, it's okay. Cars can be fixed. Forget about it, don't feel
bad about it.' Because she's got this whole Catholic stuff too. I said,
'Forget about it.' She said, 'Really?' I said, 'Absolutely. You know, what's
done is done. You didn't do it on purpose, did you?' 'No, of course not.' So
it's over. People don't do it on purpose.

My son - I was away in - I gave my son my car to drive when I went off to
England. The second day I was there, I called home and Barbara said, 'Are
you sitting down?' I said, 'Yes.' 'Michael drove your car off the road into a
ditch. $8,000 damage. And he feels terrible, he feels absolutely dreadful.
He is just so upset, he's walking around like a person sentenced to death,
knowing that you're going to call anytime. And he's just terrified.' Well, I
call him late at night in England, so it's early in the morning here. So I
said, 'Is he there?' She said, 'Yes, he's there.' I said, 'Get him so I can talk
to him.' So she went and she called him, 'Michael, your father's on the
phone. I know. You come and talk to him. Michael, come here.' I could this
- (Laughs). So Michael comes on the phone; he's not a really outspoken
guy, he's very cool. And he says, 'Hello.' I said, 'Michael, I understand you
wrecked my car.' He said, 'Yes I did.' I said, 'What happened?' He said,
'Well, I lost control going around...'

I know what happened. Kids don't understand power; stomp on the gas,
car goes. I said, 'So what happened, and where did it happen?' He said,
[unclear 7:45]. 'Well, are you okay?' 'I'm okay, I was wearing a seatbelt.'
'What happened to the car?' He said, 'It was about $8,000 damaged, it's
wrecked, the whole front.' I said, 'Boy, you must have wrecked it bad.' He
said, 'Yeah, oh it's a real wreck. I went right over the edge of the ditch,'
and everything else. I said, 'Michael, I want to tell you something. Listen
to me.' He said, 'Yes?' I said, 'I'm not mad at you. I'm not mad at you. It's
okay. These things happen. Life goes on, it'll be okay. We'll fix the car, life
will get back to normal - I'm not mad at you.' He said, 'You're not mad at
me?' 'I'm not mad at you.' 'Are you sure?' I said, 'Yes, absolutely. Kids are
more important than cars, and I love you, and I'm happy; I'm proud that
you're my son.'

(Applause)

And he said, 'Really?' I said, 'Yes,' I said, 'Now, you have a good day and
don't worry about it, we'll get past this and life will go on.' And he said,
'Really?' and he hung up the phone and I spoke to my wife. She said, 'You
transformed him. He just transformed he's just happy again. It's like he
just had a blessing of some kind.' Well, do that with every member of your
family, whenever they make a mistake. Say, 'Hey, you're more important
than the mistake, you're more important than the money.' Do it with the
members of your staff, do it with the people you work with. Never beat
anybody up for making a mistake, because nobody does it on purpose.
They've given it their best shot, they did what they thought was the right
thing at the time. Right?

Now there's a dual value here, right? Number one is, you - frees you; you
don't have any anger, no blame, no recrimination, no criticism - it's frees
you completely, and it frees them completely. It makes you powerful, it
makes them powerful. It builds loyalty with them, and you, you feel
stronger, it makes better relationships. Okay, so from now on, whenever
somebody has a problem, say ,'Well, next time this occurs, why don't you
have both hands on the wheel, you know?' There's always next time.

Okay, well that brings us to some the most successful principles that we
have - what have we got here? Geez, I've got about 15 minutes; I want to
just cover two or three critical things with regard to business, that are not
going to steal anybody's thunder. What I've learned in business is that
there's a series of C's that are key to your success in business. And 'C'
number one is the C of clarity. And here's the interesting thing; the more
clear you are about who you are and what you want, the more positive
and optimistic and focused you are. The more energy you have, the more
powerful you feel. And you heard Jay's opening comments; one of the
most important things you think about is your vision for your business.
What would you want your business to look like sometime in the future?

The biggest mistake we make is we become preoccupied with operating

our business on a day-to-day basis, and we lose sight of the vision; we're
climbing the mountain but we're looking at where we're placing each foot,
rather than keeping an eye every so often up on the top of the mountain
where we're going. So what is your vision? And the way you do this, is you
always idealize. And an idealization; what you do is you ask yourself, 'If
my business was perfect in every way, what would it look like? If my
future home was perfect, my health was perfect, my finances were
perfect?' One of the most important things you want to do in business is
say, 'If my reputation amongst my customers was perfect in every way,
how would people talk about my business?' That's your vision. They want
to talk about your business like you have a wonderful business, wonderful
people, fine products, fine services, great back up, tremendous
responsiveness, a joy to work with.

You see, if you will focus on making your business something that people
talk about in the highest of terms, you'll be amazed. Your customers will
sell for you, your customers will tell other people to come. And the key to
success in business is for your customers to be selling for you. For your
customers to become your advocates. So what is your vision? Now, the
other thing that you want to be concerned with, is you want to be
concerned with your purpose. And Bob Proctor's quote there was talking
about the 'Why' of your business. Why are you in business, and 'why' is
always defined in terms of how your business serves other people. And
the question is this, is - always is, 'What do I do? What does my product or
service do? What is the 'does' versus the ‘is?'
Most people in business start off with the 'is.' This is what I sell and this is
why it's good, but all successful people eventually start talking about what
my product or service does for you. What this seminar does for you, is it
gives you a series of absolutely, incredibly valuable tools, that you can
use week after week , month after month, year after year, to become
millionaires. That's what it does. It's not just a place where you sit and you
have workbooks and things like that. That's what it is, but what it does is
what counts. In selling, by the way; we talked recently about this; the
most important single skill you can develop is the ability to sell. And the
ability to sell is a business skill. And I want to tell you something, all
business skills are learnable.

What are all business skills? All business skills are learnable. Now, here's a
rule. You're weakest key skill sets the height of your income. That's very
important to understand, this. There's a series of skills that you need to do
your business; your weakest key skill sets the height of your income. Your
weakest key area sets the size of your business. And all business skills are
what? They are...learnable. So you can learn any skill that you need to
learn to achieve any goal that you want to achieve for yourself. If you
want to become a millionaire, you have to stand back and you have to ask
yourself this great question. 'What one skill would help me the most?
What one skill would help me the most? What one skill would help me the
most?' And throughout this conference, by the way, you keep asking
yourself, 'If I was really good at what one key skill, which one skill would
help me the most?'

And whatever that skill is, set it as a goal and make a plan, and work on it
every day. Have you ever said, 'Well, I'm not very good at copywriting.'
Well, copywriting is a learnable skill; it's a business skill. By the way, can
anybody here drive a car? Just a question here.

(Audience responds]

That's a rhetorical question, but do you know what it takes to drive a car?
First of all, it take a series of lessons, and then you have to memorize a
hundred different codes, you have to read all of the drivers manual, you
have to take a test under controlled circumstances. You have to learn to
coordinate both hands, both feet, eyes, motion, depth, something like 16
different senses, and it's very nerve-wracking, especially for the person
teaching you when you're learning.

But if you can drive a car with all that's involved in driving a car, it means
that you can learn any business skill that you need to become a
millionaire. Now, please understand this; the greatest single obstacle to
your success is not in the external world, it lies within our own self-doubts.
We doubt that we can master a skill. But all business skills are...?

(Audience replies, 'Learnable.')

Learnable. And there is no business skill you cannot learn. You can
become excellent at writing copy, excellent at selling, excellent at
marketing, excellent at negotiating, excellent at interacting with clients,
excellent at getting bank loans; you can become excellent at anything
that you feel is necessary for you. So keep asking yourself, what one skill,
if I was really excellent at it would help me the most? And you know what
the answer is? It's almost always 'selling.' Please understand this, that
80% of all of your efforts as an entrepreneur must be focused on selling.
They must be focused on selling, selling, selling. You must get up in the
morning and you must be thinking all day long about selling more to your
clients.

Now, I don't mean to take exception with people who say that you should
be working on your business rather than in your business, okay? I won't
take exception except to say it's the biggest crock of bullshit I ever heard
in my whole life. Okay? And I will tell you why this is. It's because the only
time you are working on your business - if your business has reached such
a large level that you have competent staff at every single level, and you
are coordinating as the president, you're senior executives working in the
business. Until then, you've got to get in there and work your bleeding you
know what off. And the way you work it off is you just sell all day long.

I promise you this, I give you what I call my minutes theory. How many
people here would like to double their income in the next few months?
Okay. I'll give you a way to do it. Double the amount of time you spend
face-to-face with prospective customers. Double the amount of minutes
each day you spend face-to-face with prospective customers. And I can
promise you this, if you're a complete blithering idiot with drool going
down the side of your face, and you double the number of minutes you
spend face-to-face with people who can buy from you, you will double
your income. And I'll give you the flip side of that coin; is there is no other
way. There's no other way to grow our business except to create
customers. That's what Peter Drucker says, that's what everybody says.
Create and keep customers.

So what you do is - people think, 'I'll cut costs, and I'll hire the right
people, and I'll place the right ads,' and everything else. All of those are
helpful, but in the final analysis, the ground troops have to go in and take
the ground. The sales people, you, have to go in and make the sales, and
get out - there's another thing that many entrepreneurs say. 'Well, I'm not
very good at selling so I'll hire some good sales people.' Get that out of
your mind. The fact of the matter is, learning how to sell is a key skill. You
must be good at selling, and selling is a business skill and all business
skills are what? They are...learnable.

Now, I'm not trying to sell any of my programs, but I have people come to
me every single day. This week, I've been speaking all over the country.
People come up to me and they tell me literally, life-changing stories
about how their bum was dragging in the dust, they were the bottom of
their sales force, they were broke, they had a beat-up car, living at home,
and they got psychology of selling, or [16:54] selling techniques, or they
took another sales training program, and now they're making several
hundred thousand dollars a year, they're the top sales person in their
organization, they have beautiful homes in beautiful neighbourhoods; they
could not sell anything, because they hadn't simply learned how.

Now, if I said to you, 'Do you know how to make a soufflé?' No, you don't
know how to make a soufflé. If I said to you, 'Look, within 24 hours, if you
don't know how to make a soufflé, I'm going to blow your brains out.'
Could you learn how to make a soufflé in 24 hours?

(Laughter)

Audience member 1: In 10 minutes.

Brian: In 10 minutes.

(Laughter)

Well, that's lots of buffer room in it. Now, okay, this is an important
question here, because we're talking about motivation. If the motivation is
high enough, you can do anything. Remember, you can't get out of here.
The motivation is high enough, bang, you can do anything. How would you
learn to make a soufflé? What would be the very first thing you do? What's
your name?

Audience member 1: Les

Brian: Les. What's the very first thing you'd do, Les?

Les: I'll ask.

Brian: Go ask somebody who knows how to make a soufflé. Duhh, duhh.
Yeah, wow, that's a deep thought. You know, most people have never
done that? Changed my life when I was a young man. Went to the top
sales person, 'What are you doing differently from me?' And he told me
and I did it. And if there wasn't somebody around, what would you do is
you would go to the first bookstore and you would do what?

Get a cookbook, get a recipe, make a soufflé. Maybe you have to

experiment, would it work the first time? Maybe not, but you got 24 hours
and boy, within 24 hours you're going to be serving a great soufflé. The
motivation level is very high. In other words, if you want to accomplish
anything, just get the recipe. What do you think this 3 days was for? It's
just recipes. This is basically cooking school. What you're doing is you're
learning how to prepare fabulous businesses. And with everything that Jay
is teaching you, everything the others will teach you, it's just recipes; just
ways for you to become better.

So clarity is critical, it's really important. What one skill would help you the
most, and be absolutely clear about your goals. Be absolutely clear about
your goals. I'm going to give you a very simple question, goes back to
thinking - becoming what you think about most of the time. What are your
three most important goals in life right now? Write them down. Three most
important goals in life right now. Write them because you've got 30
seconds.

20 seconds left. Write quickly. If you can't think of anything, write 'money,
money, money.' Ten seconds. Five, four, three, two, one, stop. Now, this by
the way, is the method you can use for the rest of your life. It's called the
quick list method. It's one of the best goal-setting techniques, I think, ever
discovered. And what it says is this. If you only have 30 seconds to write
down your three most important goals, your answer will be as accurate as
if you had 30 minutes, or 3 hours. Because when you're forced to write
them down, your subconscious mind works at incredible speed, and your
three goals will just go, 'Pop, pop, pop!' to the top of your mind.

Now, let me guess. In most cases your three goals are a financial goal, a
health goal and a relationship goal. How did we do? (Laughter) And that is
the way it should be. Some people wrote, you know, 'Lunch, lunch, lunch.'
But the fact of the matter is that those are your three major goals, those
are the triangle; is your financial goal, your relationship goal, your health
goal, and each one of them feeds the other, and that is a well-balanced
life. Now, the only question you ask from now on is the question what?
(Some audience replies).

How? From now on, you think about those goals and you think about them
all day long, and the only question you ask is 'How?' You make lists of
different ideas that you can write down, different ways that you can
achieve the goal. You ask yourself 'What's holding me back from achieving
the goal?' If you have a problem or an obstacle, you say, 'What can I learn
from this that will help me to be more successful in the future?' But you
keep your mind on those three goals, and from now on, you discipline
yourself for the rest of your career, to think and talk about what you want,
and refuse to think and talk about what you don't want, right?

(Audience responds)

Now, let me tell you a quick story; I'm sorry my time is up, next time I
come I get more time. But let me tell you a quick story. Two little boys,
Johnny and Jimmy. Johnny is an optimist. He's happy, he's cheerful, he
laughs all the time, he tells jokes, he's a parents' delight. You can hear him
singing throughout the house, his parents are delighted. But his twin
brother Jimmy - 10 years old. Twin brother Jimmy is a pessimist, he's a
complete pessimist; he's always complaining, always whining, always
hurting himself, doesn't like what he's served to eat, he wets the bed
when he's 10 years, just a real pain. Obviously, the genes got split up
wrong or something.

Well, the parents, by the age of 10 realized they have a real problem;
something is out of balance with these two twin boys. So they take them
to a child psychologist. Psychologist does an analysis of the boys and
comes back to the parents and says, ‘Yes, there is a problem here. Johnny
is a real optimist, he's off the clock. I mean, he's so positive its
unbelievable. He's obviously going to end up as an entrepreneur some
day and attend Jay Abraham seminars.'

(Laughter)

'Little Jimmy however, is a complete pessimist, it’s just not normal for a
boy 10 years old to be so negative. Now Johnny is so optimistic it looks
like he'll try anything, he's so optimistic he might even be a danger to
himself at a young age. But Jimmy is so pessimistic he could hurt himself
as well, so we need to do something to bring them back into balance.' And
they said, 'Christmas is coming,' so what they did is they had a little
experiment. At Christmas time, everybody went down around the tree and
all the presents were for little Jimmy the pessimist. This is kind of going to
be a shock therapy, okay?

Little Jimmy the pessimist; every single Christmas present, and he opened
the presents, but he didn't like the size. And he didn't like the color, and
he didn't like the model, and it wasn't what he asked for and it wasn't
what his friends had, and it wasn't what he wanted and it wasn't what he
put on his Santa Claus list, and he had a complaint about every single
problem. And at the end of the present opening, he's sitting there
surround by presents and wrapping paper, and he bursts out into tears
and says, 'This is the worst Christmas I ever had in my whole life.' You
may have some people like that working for you.

Anyway, little Johnny's sitting there smiling, happy for his little brother,
and so on, and then finally he says, 'Is there anything for me?' And the
parents. they'd almost forgotten, they were just beside themselves. They
said, 'Oh yes, there's one present for you , it's out in the garage.' So they
took him out to the garage, they open the garage and there, in the double
garage is an 8-foot high pile of horse manure. The whole garage is full of
horse manure. He says, 'Wow, that looks like horse manure.' They said,
'Yes, that's your Christmas present.' 'Wow, horse manure, wow. I've never
seen so much horse manure. Wow.' And he's looking at this and they say,'
Yes, that's what you get for Christmas, that's your only present. 'Wow.'
And he stands there just looking at the horse manure.

And the parents stand there for a while and nothing happens, so the
parents go in the house to have breakfast. After about half an hour, they
say, 'Johnny, Johnny.' He's not around. And they say, 'Geez, I hope we
haven't overdone it here, didn't work with Jimmy, maybe we overdid it.' So
they went back out to the garage, open the door and there's Johnny. And
he's diving up and down this pile of horse manure. He's burrowing in the
horse manure, he's laughing, he's having a fabulous time with his horse
manure. And they say, 'Johnny, Johnny, what are you doing?' He says,
'With all this horse manure, there's got to be a pony in here somewhere.'

(Laughter and applause)

But my final point is this, is that you will have many ups and downs in the
course of your business career, but the law of probability says that if you
keep looking, there's got to be a pony in there somewhere, right? Thank
you very much, God bless you. Thank you.

(Applause)

Thank you guys, thank you Byron. Thank you John. Thank you. Thank you,
and thank you Jay for having me.

Jay: Come on, thank you. But I want to ask two other questions, and then
we'll rush you off to get your plane. Am I on? Can you hear me okay,
Dave? Question one, What do you want - what one other thing - you're
gone, I do a great job or somebody else does a great job, they're getting
ready to leave for the weekend.

(Shouting in background to turn the mike on)

I turned it on. No I turned it off.

Brian: There you go.

Jay: We are a seamless organization, I apologize for the lighting, you

should take them to task. Whip me with a red noodle. What one other
thing, more than any other overriding insight that will haunt them
favourably for the rest of their life, do you want them to think about the
besides what you just concluded with, so that it will just basically drive
them just deliriously batty with clarity? What's the one thing you want to
be remembered for and you want to transform (unclear 06:07) with the
rest of their life?

Brian: Just one thing is take action on what you learn, and remember the
more actions you take, the more things you try, the greater the
probabilities are that you will be successful. And if you're an absolute,
complete idiot but you try every single things that makes sense to you,
and you try it as fast as you can and you look into it for the lesson, you
must be successful. There's the one quality of entrepreneurs coming from
every single country in the world, who come here, who achieve great
success, is there's intensely action-oriented. So where you hear these
things, don't fall into the trap of the weakling and the person who means
well, who just says, 'Well, that's a good idea,' and they take it home and
they put the book on the shelf; is immediately put at least one idea into
action, and then another, and then another, and then another. And I
promise you, you will become a millionaire.

Jay: So having prejudice is bad but a prejudice toward action is good?

Brian: Yes, absolutely.

Jay: Okay, that's good. Thank you man, you were great. I owe you big
time. Really appreciate it.

Brian: Thanks.

Jay: Thanks so much.

(Applause)

Jay: Okay, make sure we get him to the airport.

Brian: Thank you guys, thank you. Thank you. Thank you.

Jay: We're going to have fun in a minute. We got something really cool
getting ready to happen. Are we ready, Rick? Yes, not yet? Okay, we can
play a little bit more. I need some energy. Anybody get any ideas out of
that?

(Music playing and people clapping)

You ready? Not yet? Okay, well I'll catch up. Turn it off a minute, Dave, and
I'll catch up with a couple of insights. Somebody come up here and clean
this little thing while I'm talking for a minute, please, or some papers here.
Turn it off now.

Okay, a couple of points while we're waiting. We're getting ready to

interview Fran Tarkenton because he's got to catch a plane, he was going
to be available in a different mode, but he's got to catch a plane and we're
lucky he's going to wait for us, and we're trying to connect right now.
They're going to let me know when he's there.

The concept of Mastermind Marketing has some rules that you have to
know or you'll have an inferior result. To gain optimal benefit, result,
transformation for yourself and your business, you've got to do the
following. Number one, be committed to open up and contribute and be
vulnerable, and tell people what you think, tell people constructively what
you think, tell people candidly where you're weak. Number two, you never
ever, ever sit at the same tables with the same people more than once.

The goal of this is, I brought together 650 very switched-on, very action-
oriented, very, very ethically opportunistic, very, very pliable and highly
experienced minds from three or four hundred industries, who have been
spending on average, 10 or 20 years doing what they're doing. They have
experiences, they have perspectives, they have knowledge from all kinds
of different vantage points, to share. You will never in your life, unless
someone is emulating, innovating or knocking my concept off at the end
of the event where it is purposely design to have 650 people contribute,
advise, brainstorm, network, mastermind, idea share and collaborate at
the highest level. The only possible way you can benefit, is to every break,
ever major break come back and sit somewhere different with someone
different. If you’re here with a spouse, if you’re here with a partner in
business, with your staff, don’t you dare sit with them after this moment
because it’s the dumbest thing you can do. You got the rest of your life to
talk to them, you got 3 days and 36 hours drain and suck dry. The
respective, the experiences, the ideas, the different point of views, the
different paradigms, all these people in the room have the opportunity to
contribute if you open up and collaborate.

So shame on you and everyone you’re deputise if you see anyone sitting
at the same place in a room with the same people more than once, call it
to my attention, we will have them taken outside castigated, reprimanded,
we are going to put a big grade scarlet A on them, they are going to walk
around a dunce head, okay.

(laughter)
You think I’m kidding? I’m not. No one is going to orchestrate this kind of
opportunity for you in your life, but I can only bring you the water, if you
don’t want to drink it, it’s shameful but it’s only shame on you. Did we find
him?

Fran?

Fran: Hello, Jay.

Jay: Wow! You sound like God, man. How are you?

Fran: I'm good, fine thank you; and I'm not sitting next to anyone that I
sat with an hour before.

(Laughter)

Jay: So, here's the deal. You are very gracious, and I want to just pick your
mind and just do like a raw shock. I want to give you about five, or six, or
ten, really pivotal, entrepreneurially relevant questions after I set you up
for three minutes. And then I'd like you to have at it and do your very best
in the 30 minutes or so you got. You've got to catch a plane, what, 30
minutes?

Fran: Yep, I've got to leave here in about 30 minutes.

Jay: We'll do it, and somebody raise your hand and remind me when we're
25 so I don't take advantage. But here's what I'd like to do. First of all, you
all know who Fran Tarkenton is, he's basically - he's a world-class, hall of
fame quarterback, but what most people don't know is he's an even
superior entrepreneur. He's started - I know of 8 but - how many
businesses have you started or do you own...?

Fran: 15.

Jay: 15 businesses, every one of them he's made positively cash flow
positive, in 60 or 70 days, he's basically sold them for hundreds of millions
of dollars; he's become a very, very, good, dear friend of mine, I adore
him, he's been very gracious to share with you perspective. He probably is
an even superior entrepreneur than he was world-class quarterback, and
he loves entrepreneurialism, he's involved in a number of ventures, and
he's here today via a phone to share with you some very, very no
nonsense - really, really impactful ideas that are designed to get all the
crap out of your system and move you to focus on what really is real and
what isn't. So Fran, can I just ask you some questions?

Fran: Go to it.
Jay: Okay, first of all, you've seen a lot of entrepreneurs; you know that
mine are at a higher level probably, of commitment, achievement. What's
the one big mistake, more than any other singular one you think most
entrepreneurs slash professionals or [unclear 1:56] oriented, decision-
making managers are making right now that are keeping them and their
business form really achieving its potential? And then, the flip side is,
what in the hell should they do to change that immediately?

Fran: By being too theoretical. In other words, you've got to take an idea,
and that idea has got to make sense. It's got to make sense from a
product idea, a service idea; there's got to be a need for the product, a
need for the service. And we've got to get real, when we think about that.
And then there's got to be priced in a way that's of value there, and then
we've got to be able to execute a strategy, and execute is the key word.
So many people, not only entrepreneurs, but big business people, are the
worst at this. They have all this wonderful planning and all this great
theory, and they put up all these charts and all these theorems, and they
never get down and wrestle the bear to the ground.

You've got to take that idea and wrestle that bear to the ground until you
are able to get it flowing and executing, and it doesn't do it just the first
time out of the box, or the second time out of the box. When we were
playing football, I would design our passing game for our team for most of
my career, and I would get with our offence coordinators and we'd get on
the board, and we would design the passing game, and it looked so great,
and it was just perfect. But sometimes, and many times we'd go out to the
field to execute it; we found out that on the board it was good, but we just
couldn't get people to execute it properly.

And entrepreneurs are the best business people in the world, because if
you understand that survival, you've got to understand how to make
money. And you've got to get real, you cannot work this with just theories.
You've got to take that idea, wrestle it to the ground and execute it. That's
why, very seldom, do you ever take an idea that makes sense, that hits all
the criteria of common sense, that you really get real with it, and take it
out and make it work in the first month or the second month. It takes
some times two to six years to really take that really good idea and really
learn to execute it and find out what it's going to take to make that thing
work, and the term I use is wrestle that bear to the ground. Steve Ballmer,
who's a great friend of mine, who is the CEO of Microsoft, and he's now
worth a hundred billion, like Gates; I think he's worth 25 billion. But
Bulmer is an operator, Ballmer is a visionary but he wrestles those bears
to the ground.
And a couple weeks ago, in the New York Times, there was a tremendous
article about Ballmer, and Ballmer's background is, he went to Harvard
with Gates, and Gates left school early, and Ballmer was the manager of
the football team; he's a big bear of a man. And he's very aggressive. And
he says the thing that he likes about business today and the things that
he and Gates have done since they've been there in 1980 and '81, is they
take an idea and they just smash that idea down and mash it down, and
mash it down, until they see whether it's going to work or not. In other
words, it's kind of like Dr. Phil says, Jay, on television; you've got to get
real. You really got to get real with your business and make that thing
execute, and when entrepreneurs do that, and we're much better at it that
big business guys, but the ones of us that don't do it well are the ones
that have the most problems getting something off the ground and
working.

Jay: That's good. I'm going to change the game. You did an interview with
me a couple of years ago, and I've distributed countless copies, and
people said it really changed their life. You gave them a strategy about
making people's lives better off because you were in it. Now, I’m going to
challenge you and put you on the spot to do a little stream of
consciousness on that, because it dovetails into some belief systems that
I'm going to lay foundations of in about an hour. You want to talk about
that?

Fran: Oh yeah. I really - you know, business and life cannot be just about
me. It cannot be about my greed and my efforts, that I just want
everything to work for me. Because the essence of life, the reason we
were put here is to make things better for other people. Be it our spouses,
our children, our grandchildren, our friends, and even our enemies. Even
our enemies. And when we can have that presence about us, our life could
be more productive. And I think that transfers right into business, because
the essence of business is this. I've got to have a product or a service that
truly makes somebody else's life better, or makes their business better.
And when I have that business - that product or service that does that,
then I’ve got a legitimate chance to make it work, and I've got to make
sure that when that customer buys my product or service with their
money, that I am going to - you've heard this so many times but it's so
true - it's going to be - the reality is better than the promise. The reality of
the product and how it works. The reality of the service and how it works,
is better than the promise.

Because we do have a cynical, jaded world out there, and that we do not
believe most advertising messages. We do not believe most speeches that
we hear. We do not believe the promises because we've been
disappointed. I worked at the Coca-Cola Company - was on the Coca-Cola
Company Board for - Coca-Cola Enterprises Board for 12 years. Started my
business grad with Coca-Cola Company, a great marketing company. But
they will tell you, in all their research, that 90 plus percent of all the
advertising that goes across the airwaves, and on the billboards, people
don't believe. And that's why when we can go and our message is clear
that we're here to provide, our product and our service will make your life
or your business better, and when that's delivered, then that causes the
greatest advertising of all. And that's word of mouth advertising.

And I believe that that thing that's intrinsic in each one of us, to help other
people, has got to be the same philosophy in business. Business is not
about trickery. It's about legitimacy, it's about delivering the promise
better - the reality of the delivery is better than the promise we gave.

Jay: Yeah, I'm going to now ask you a different question. You've got the
great dual advantage of hanging out with huge corporate icons and tens
of thousands of very, very passionate entrepreneurs. What do you think
the differences are, what do you think each - what do you think
entrepreneurs could take from big corporations that they need to master
right now?

Fran: Well, the best entrepreneurs are the ones who know what they
don't know. See, sometimes we get intimidated by the Harvard Business
Schools, and the Stanford Business Schools, and the people that have
high-falutin' degrees and the chemical engineers, and the lawyers, and
the accountants. We think, 'Well, somehow I don't have all that
background.' Well, unfortunately, my son just finished Harvard Business
School a few years ago. He went to undergraduate school at Princeton,
and I spent some time up there with him. And they taught them all about
pie charts and all about case studies and so forth. And he can make a
beautiful presentation. A Power Point presentation. But the one thing that
they didn't teach at Harvard Business School; and I dare say they don't
teach at any business school across this country, is how to make money.
How to make money.

And you go to those schools also, and the people that come out of there
come out to be consultants, or they come out to be investment bankers.
None of them come out to be in charge of sales, in charge of making
something happen. And I don't care what we're in, service business or
product business, nothing happens until the sale is made; and yet in our
most advanced schools, we don't teach that. We don't - that's kind of a
lower case deal.
And what I do believe though, that the big companies do have and
acknowledge somewhat is that that chairman or president of a big
company does have access to people that have great knowledge; the
specialized knowledge. That CEO really understands that he doesn't - he's
not a lawyer, he's not necessarily a financial person, he's not necessarily a
marketing person, or not necessarily a technology person; but they have
access to those people that have experience and different disciplines of
business.

And I think the entrepreneurs who really do; and I do; understand what we
don't know as well as what we do know, but know; and here's what genius
is - an entrepreneur; is know that we don't know, and know where to go to
get the help.

Jay: Great.

Fran: The best lawyer, the best accountant, the best tax advice. Now, we
may not take that advice. But we make a decision based on good
knowledge of people who have great experience in those disciplines.

Jay: Great. Let me now ask you another question. You're - you impress
me; we've had a relationship now for, I don't know, a reasonable long
time...

Fran: Long time.

Jay: You've been a good friend and I’ve watched you continuously evolve.
What do you think are the greatest secrets and the greatest philosophical
strategies that an entrepreneur can have about continued evolution? It's
like grow or die. What are your thoughts for them, because you're always
interpreting something, you observe; you're lucky, you get to talk to
people, you read, you navigate at very high levels, you take the
information, you internalize it, you extrapolate it, you reconstruct it, you
come up with very, very actionable, very, very, very foundational things.
Take you, translate it and talk it down and give a recommendation to all
these 650 people here, who are eager to figure out how they can be more
- they don't know they're eager but they're going to be by the time they
leave - eager to be more, let's say, more committed to constant evolving
change, improvement, innovation, etc. You do that all the time, and I'm
always amazed when we talk because you'll go into the latest insight, the
interpretation, the action, how you layer it onto your previous beliefs, how
you may jettison something else. Take that and sort of shake it up and
come back with a comment.

Fran: Change for change sake is stupid. Speed for speed's sake is stupid. I
do this. I am thinking my business all the time. I dream my businesses all
the time. I look at data every morning. I've got a whole list of things that I
want to measure that happened the day before, and I look at that data
and I make sure it's accurate data so that I can get a real picture of what
we're doing. That drives me to think about things that may be working, or
things that are not working, trends up or down; and it doesn't bother me
when I’m doing things that are not working. It bothers me when I don't
recognize they're not working, and I want to BS myself to say, 'Oh, that's
going to work in time.'

I want to look at the reality of the numbers, the reality of the strategies
that we're working, and then that fuels ideas. Now, that's not enough.
When it fuels the ideas, I never, Jay, never, never, never, never, do I make
a decision without getting massive input. Massive input.

Jay: Expand on that, because my next question was going to be on your

concept of due diligence, because it's very powerful when we talk about
how you look, evaluate, examine, and really reflect on an opportunity, a
decision. So just give us a few minutes on that.

Fran: Alright, I'll just say, I've got a core of ten people in my office, and
they're just - these are just good working people. I've got a couple that are
good financially, I’ve got a couple of technology people, and just some
other base people. I involve everyone of them, and I get their input. I'm
thinking about this. 'This is not work, but I'm thinking about doing this,
this, and this; and this seems to make sense to me, but tell me why it
doesn't make sense to you, tell me why it's a crazy idea.'

I set it up so they can tell me and be free to tell me, that I want them to
tell me, why the idea's no good. And so many times we set up as bosses
and leaders, 'Here's my idea; I want you just to rubber-stamp it for me and
tell me how smart I am.' I don't want that, I want my people - I don't need
them to tell it's a good idea, I want them to tell me all the things that are
wrong with this, all the flaws it has, all the flawed thinking, all the flawed
strategy; and once I get all those things [unclear 1:02], then I may be
calling anybody, including yourself, including other people that I reach out
to, and I will talk to them and run my idea and find out where my flaws are
in the thinking. So therefore, when I do - if I do then decide to execute
some part of the idea or the entire idea, I really have a pretty good idea of
what the negatives are, where the problems are, and hopefully address
them beforehand, but will recognize them more quickly because I can
anticipate them.

In football, we didn't have a hundred pass plays or a hundred running

plays. We had five pass plays and five running plays that we could run
against 30 different defences. But we knew every little nuance of that, we
knew no matter what they put up, no matter what kind of blitz or what
kind of coverage or what kind of - we had bought it through beforehand so
when it happened, we could react to it. So when I go to execute, I want to
have all this input from people, other minds; they don't have to be brilliant
minds, it's just other people's viewpoints and thinking to find out what it is
that my problems are. [Unclear 2:19] they seize a flaw, so I can anticipate
it, so when I go forward with it and something happens, I can react
quicker. Does that make sense?

Jay: It's great. And also, he does incredibly - Fran tries lots of things. I'm
going to teach you not to shoot for the fences on risk but to be willing to
take all kinds of wonderful, wonderful experimentations, but Fran does
enormous due diligence before he makes a commitment, to make sure the
facts he presented are correct, he understands it thoroughly, and he's
pursuing it with the right knowledge in place. Let me switch again...

Fran: Let me go one step further there, too, about partnerships. I have
many people that I want to partner with, and some people that want to
partner with me. But before I go to sell an idea to somebody, to enlist
their support, to enlist their partnership, I want to be sure in my heart of
hearts, my mind of minds, that that partnership that I'm asking for will
enhance them at least as much as me, if not more. That it's a partnership
that if I was the on the other end, would be one that just makes all the
sense in the world. Because if I've got to sell an idea to that partnership,
and I sell it hard, and it doesn't work out for them, then I've wasted all my
time, all my - I could be doing something else; and it'll never work for the
other party. We cannot be selfish, and say, 'Well, this is what I want. It
may not be the best for them, but I'm going to go pursue it anyway.

Jay: It's great, and everyone knows you from being on TV, three times
Superbowl, NFL Hall of Fame, but I'd like you to take your business career
and think about the three or four defining elements that you've learned
from the best influences you've either met, been mentored by, read; and
then try to - if you would be such a gracious person as to try to translate
those and give those three or four or five lessons to us, that would be
great. And then I have two more questions and then you can go and catch
your flight, and I'm very appreciative.

Fran: First of all, the most intellectual - supposedly intellectually smart

people are not the most help. And I will say it this way. I'm not sure what
smart is. Smart is somebody figuring out how to make money with good,
honourable products, and get them to market. You know, AOL - let's look
at Time-Warner. One of the great - maybe the greatest media company in
the world, been around a hundred years. They had all the smart
investment bankers, all the smart lawyers, acquisition lawyers. They had
all the smart accountants. Their board was made up of other chief
executive bosses of all the old-boy networks, of the big companies, and all
the degrees. Two years ago, they just didn't merge with AOL, they were
bought by AOL. AOL had the power. They made as dumb a decision as
ever has been made, with all of these smart - so-called smart theoretical
people.

And I believe that the most important assets I have as an entrepreneur is

what I just said a minute ago. I know what I don't know. I don't have all the
answers. I don't have all the experiences. I have a lot, but I don't have
them all. And I have got to reach out to people that are doing it, people
who are into the get real stage. And the people that are doing it are
entrepreneurs. Last night, I was having dinner with one of those
entrepreneurs; he's 62 years old, his name is Vernon Brinson. And he is
one of the most successful automobile dealers an American has been for
40 years. Simple guy. Poor, dirt-poor, University of Georgia, third-string
catcher, about 5 foot 5, they called him Peewee in college [unclear 6:32].

And what he learned, he learned what he didn't know, and he reached out
for help, and he's a classic entrepreneur, but he learned how to make
money. He knew that he had to have a marketing plan that made sense,
he had to have a financial plan that made sense, that made money. And I
never have believed, as you know, the greatest assets I've had; is that I
believe that I've got to use my money, my money; and I didn't have much
money when I started all this stuff out; to go and build something.

If it's my money, and I'm risking my money, I'll go out and make it work
quicker, I'll get the cash flow faster, and I'll understand, as an
entrepreneur, that the life of the business is cash-flow. And I want to get
the cash-flow really quick. I'll start smaller, I won't go out and try to
conquer the world, I don't try to go out and do the great - a big customer,
or do the elephant deal. I'm going to take small steps. I want to go out and
see how it works, I want to test it and test it, and test it, and while I'm
doing this, I'm going to spend my cash very, very wisely, and I'm going to
get myself the cash-flow very, very quickly, because my mortgage
depends on my cash flow. My car payment depends on my cash-flow. My
children's education depends on my cash-flow, and when that's the case, I
find myself being more careful with the spending of that cash.

Jay: Good. Gimme this; you read and you've influenced by books and
people. What one book or source or person or magazine do you think
every entrepreneur in this room should be mindfully attentive to on a
regular basis, or at least be aware of the work of, or the teachings of; and
why?

Fran: Oh boy, I don't think it's that simple, Jay.

Jay: Okay, then tell me....

Fran: I don't think it's that simple. I think an entrepreneur has got to be
like the hunter in the woods. You've got to smell the moment. You've got
to have your eyes open. You've got to be like an animal out in the woods
surviving. And I'm getting on my plane this afternoon to go to a family
reunion for the Tarkenton family in Northern Virginia.

It's the first one we've ever had, and I'm going to get on that plane and
I'm going to converse with my kids, I'm going to read various business
magazines, and I'll pick up three or four at the Big Space operation; I'm
going to be with a lot of people tonight, and I'm going to go find
interesting people to talk to, but I'm going to get them to tell me about
their life, going to get them to tell me what they're about, how they work
and how they make it and how they - I've just got my - I think you've got
to have your antennas up in every environment we're in.

And what that does is it creates a system internally that makes you so
much more aware of everything around you, all the things that are going
on. And I don't think I can point to a person or a book, or a magazine, to
do that. I think you've got to do it all.

Jay: That's good. And that was a trick question, because I was setting you
up for that answer, and you gave. No I'm serious; he was, because I knew
his belief system. Last two questions. I don't - and you know me; I'm not
very avid - sports oriented, and probably half this room isn't, many of the
women; there's a lot of women here. What one insight would you give
everybody that they could take a huge page or lesson from learning that
sports demonstrates, teaches and is a metaphor for that entrepreneurs
don't always grasp? Then I have one final question.

Fran: Well, first of all, I'm happy you've got a lot of women there. Over
half of the people in my office - over half of my executives are women.
Women are better business people than men. (Applause) Because they
have greater sensitivity, a greater feeling, and when women get really
involved; when those women can get in business, like that women can get
involved in raising a family. When they can get that way, then a women's
power in business is just beyond, beyond. And I'm happy that women are
in that room this morning, because I think it's a very, very important part
of the growth of business in this question. Now, what's your other question
there about the sports metaphor?
Jay: No, it's good. I said, I've got all these little boys here who are jocks.
Christie, who you know, is a jock. I'm not, I’m an intellectual, and yet I’ve
learned so much by slowing down and seeing what I think the correlation,
the metaphor, the lesson is sports - I think everybody should slow down
and see what sports teaches you about life, and I'm sure it's had an
incredible, let's say, foundational key to you. But I'd like to have a
summary of what you think everybody, whether you're sports oriented or
not, can learn about, that sport's teaches you about success in business.

Fran: Alright, that's a fair question, and I'll tell you my feeling of that. I
played competitive sports since I was a 13 year old freshman at Athens
High School, in Athens, Georgia. Played varsity baseball, football and
basketball, four years in each sport. Went on to college and played four
years of college football, and 18 years in the National Football League.
And sports happens quick. Football game's over in 60 minutes. Nine
innings of a baseball game. It happens quick, and you almost live from
moment to moment. If you win; 'Oh man, I got the answer. My thinking is
right and my strategy is right, my execution is right. I'm on top of the
world, it was a clear winner and a clear loser, and we're the clear winner!'

And you get to the point where you really are impressed with yourself. You
really say, 'I've got the answer.' How many times that happens to a sports
person now is unbelievable. And when your team is having success and
you're on a roll, and you won five and six and seven and eight games,
you're sure that you have the answer. And every time you get there, you
hit a stone wall. I mean, you hit a wall that you just - your whole world
crumbles. Your whole world crumbles and all your belief system of all your
strategy and all your thinking, is just - in 60 minutes time, that other team
has driven you into the ground.

And you go away from that with great depression, and great anxiety.
'What's wrong with me? Why wasn't I able...' and so forth. And so what
you do, you get a balance. You realize, it really is never as good as you
think it is, and really isn't as bad as you think it is. And what you have to
understand, that it's an ongoing evolutionary process. You never have the
answer. You've got to continue your antennas up. You've got to continue
scratching and digging, and wrestling that bear to the ground to find
better ways to do it. Even when you think it's going good. You know the
old thing, 'If it ain't broke, don't fix it?' Oh, bad statement. If it ain't broke,
it's going to be broke soon. It's going to be broke soon, and you've got to
go and figure it out beforehand.

And this is the same way; we get going in business, we have a strategy
that's working, and we're making a little money, and we say, 'Boy, I finally
captured it,' right? And then, wham, it goes away. It happens to big
companies; IBM came out with mainframes, of course. Dominated the
world, owned the world. Got very greedy, very selfish, and hired the best
people in the world, the smartest people in the world. And guess what?
They almost lost their company in the late 1980's and the early 1990's,
because they missed the client server world.

They really had a chance to buy Microsoft in 1986, when Microsoft was
doing $60 million a year, and they refused. They were going to crush
Gates, and crush Ballmer. And they fired their Chairman; unheard of. They
fired their Chief Technical Officer, they hired Lou Gertsner. And I happen to
know; Lou went in and they said, 'What's your vision for IBM?' He said,
'Vision? If we change the course of what we're doing, we'll be out of
business in a year.' If that can happen to big business, obviously it can
happen to our entrepreneurships, and our business and our products.

So therefore, our antennas have got to be up. If it's working today, then
you've got to figure out how to make it work better. How to improve your
service, how to improve your product, how to expand your marketing, how
to expand your delivery system, how to get more customers, how to form
partnerships that are real partnerships, not just phony partnerships. How
we can improve the whole process, because somebody - the
environment's going to change, the world's going to change, new
products, new services come in, and it will impact our business. And so
therefore, the lesson in football happening in about 60 minutes of a game,
and I'm not sure that they lesson takes that much longer in the world of all
business and entrepreneurship, and that's why we cannot ever be
satisfied and content with where we are. We can never be satisfied and
content with our knowledge system.

Our knowledge system has to enlarge, and we have to be sure to dig

down to the reality, not just the dream of what we want it to be, because
we get caught up in what we want things to be, and we lose what they
really are.

Jay: That's great, okay. I'm going to amend that. I'm going to put two
questions together, and they're different, but because I want to, then you
know that's finality and you can get packed and get on your plane. The
first question is, you've been a friend of mine for a long time, you've
gotten to experience me and my intellectual clarity. You've seen me when
I was attention deficit, you've been to one of our programs, you've talked
to people to come to it. I want - this is day 1, this is hour three. I got
probably 12 to 16 hours today, and the same for three more days.
Our goal is to first of all, today, teach these people how to see how much
more is possible from the opportunity, from the effort, from the
commitment, from the people, from the capital, from the relationships,
from the distribution channel. Then tomorrow to teach then to think
strategically, not tactically. Then after we do that, to get them to raise
themselves to a higher level of eminence and distinction.

Then to get them to deploy a strategy and put it all together. Knowing
what you know about the good, the bad and the bizarre about me, what
would you recommend they do, or what one thought would you tell them
so they can get the most? Not from me, but from the experience. And
then the last thing after that, presume that we had Linda captive, we
kidnapped her and we wouldn't ransom her for any amount of money; the
only way you could get her back was to give one great actionable insight
that everyone in this room could put into action immediately, and it would
make a meaningful impact in their business. What would it be and then I'll
thank you and let you go flying.

Fran: Okay. First thing, I think, and to all you people there, I have spent
hours and hours and hours brainstorming with Jay over the phone. I'd be
at my lake house, he'd be at his beach house, and we'd out no time
constraint on our thinking, on our subject matter. I think the opportunity
you have there for the next couple of days with Jay, is to open your minds
up, don't try to get final about anything you're thinking; let him just fill
you up with what can be, and ideas. And he will fill you up with ideas that
are valid, but some are going to be really valid for you. And I think that -
just open your hearts up and open your minds up and just drink without
any finality to it. Not trying to make a decision on what's good and what's
bad or what can work or what can't work or how you're going to execute
whatever you're going to execute.

But just drink the whole thing; take good notes while you do that. And out
of that, out of that, try to keep the key ideas that are fresh in your mind
when you walk away from there that you think are ideas that you can
execute, that you could put into place, and that's always the biggest
challenge. Now, the reality of life is this: it's not an 80/20 rule anymore. I
think it's a 95/5 rule. I think 5% of the people do 95% of the work. 5% of
the sales people do 95% of the sales. And I'm going to challenge each one
of you there; that it won't be just the drinking of the information that
you're going to get there, it's going to be what you do with it. And if we
know history, 5% of you will do something with it, and 95% won't.

That's a tragic, tragic thing. I would just like to encourage all of you to be
part of that 5% and take these great ideas. He is as good a marketing
thinker as I have ever experienced in my life. I think his ideas; once he
gets them all out there, and when you look at them in depth, they're really
kind of simple ideas. And simplicity is the key to success. Less is better
than more. Simplistic information that we can thoroughly understand is
better than [unclear 4:19] information that we just cannot put our arms
around. And I think that that's the key to it.

And the key to getting my wife out of the bars that y'all would hold her in
is this. Once you walk away from there, then I would encourage you to
take ideas and the things that Jay brings in there, and I would strongly
encourage you to take one, two, three, or four of them that're apt to what
you're doing, and to doggedly go in and wrestle that idea to the ground,
until you can get it to execute properly in the environment that you're in.
It’s not about the dream, it's about the reality. Reality makes dreams come
true. And that's why that pop psychologist, who I think is pretty good; Dr.
Phil; is so popular, because he doesn't always say to people what people
want to hear. He gets to the deal of 'Let's get real.' And if we can get real
about our business, then we can get real about our life, then we have a
much better chance of solving our problems.

And until we really get real and the knowledge that we're not as good as
we need to be, that my business is not as good as we need to be, it's back
to the things in therapy; that you know, a person has an alcohol problem.
They cannot solve that problem, or drug problem until they admit, I've got
a problem. We've all got - we're not any of us as good as we need to be.

Our businesses are not functioning as good as they need to be

functioning, until we acknowledge that we have some flaws here, we have
some systems that are not working. I need to kind of reinvent myself and
reinvent my business and make it a lot of better. To do that, we've got to
get into the stage and get real. Now, I hope you can get out of there with
those great ideas and then bring them to the 'get real' stage of execution.

Jay: That's great. Two things; first of all, thank you from everybody's
heart, you're a gracious, gracious man. Number two; I owe you big.
Number three; I'm going to be there Thursday and Friday if you tell Jill
when, and we'll get together, and if you want to spend a lot of time, find
something for my 10 year old to do; if you want to spend a little time, I'll
take you to lunch. But I appreciate it, and...

Fran: Okay, one other thing, Jay, I just want to get a little lighter note out.
I look forward to seeing you Thursday. I happened to be in New York this
last week; Tuesday, Wednesday and Thursday, and I happened to spend
Tuesday evening, Jay, with this Italian immigrant adult; who's close to my
age. And it was interesting, Jay - I only played football with the New York
Giants for five years of my 18; I played 13 out in Minnesota; and I didn't
realize, Jay, how big a celebrity I was in New York. Because every bar that
me and the Italian immigrant went in; and Linda was with me also, in
addition to the Italian male immigrant; would go in, every bar and
restaurant we went in, I got a standing ovation. And the Italian immigrant
with me was a guy named Rudi Giuliani. (Laughter) But I knew it was for
me, at least I told Linda it was.

Jay: Ohh, that's great.

Fran: But by the way, to share with you people out there, I did have a
chance to see Rudy Giuliani and have dinner with him, and then I went to
visit his office the next day. But what he's done is an amazing thing; he's
brought 40 people from - they work with him in the city of New York, and
set up a consulting company called Giuliani Consulting. A friend of mine
set it up for him. And he brought out the people that ran the police
department, the fire department, the guy that did all the 9/11 emergency;
I got together with all of them. It was a great experience, and what they're
doing is doing a consulting company; fitting a need here. Here's an
entrepreneurial business; fitting a need, building a business model to help
countries and cities and companies that are dealing with some
catastrophic situations. And there's a lot of those in American business
today.

The chief of police from Mexico City was in there. And how good was it for
him to be in there with the former Chief of Police of the city of New York,
who understands the problems of a police force. He has assembled people
that have done the work in those particular areas, and he is building a
robust business. And Giuliani, with all of his celebrity, has got his feet
grounded, and he wrestles that bear to the ground. He gets it down to the
nitty-gritty, he gets it down to the 'get real' stage, and he's providing
because of that. An unbelievable service to those that he's working with,
and you'll hear a lot about Giuliani consulting, but I want to tell all of you
that he is as good as you thought he was, when we've seen him in action;
9/11, and before 9/11, and after 9/11, but anyway. God bless all of you,
happy holidays to you. Thank you Jay.

Jay: Thank you Fran, have a safe journey, have a great reunion, thank
you.

Fran: Alright. Bye-bye

(Applause)

Jay: Okay, Shell, where are you? My daughter Michelle, you here? We're
going to take a break in about 2 minutes. I’ve got a couple of things to say
which I'll say again, probably. The workbook you were issued is only one
fifth of your workbook. You're going to get another one, later today or
tomorrow, which is speaker workbook. And on day three, sometime in the
afternoon, you're going to get a big tactical one that's got about five or six
hundred pages of tactics. Then you're going to get a CD-ROM that's got 39
of the best books in business over the last three years, after reading about
1600, that have be detailed and analyzed by a colleague and partner of
mine who's in the room, who will be on the power panels; and you're
going to get 502 actual case studies that some people in this room, who
are returnees, have created; and others.

We're going to try to break about 30 minutes at a time because it's such a
large group, but we have to start. I got a lot to do. You should get psyched
up. This is the one time in your life I can bring 650 people together from
around the world. We're going to go long, we'll probably eat late; lunch will
probably be three o'clockish, we're going to try to go to 10:30, 11:30
tonight, and probably every other night. We'll try to keep your energy up,
but balance yourself out.

And I want to acknowledge a couple of things; I have 17 or so experts

here. They're all here for two reasons. One, to contribute at the highest
level, and number two, they want to be just like you. In part of the group,
collaborating and growing their own enterprises; they're not here to go out
[unclear 11:13] their phenomenal theoretical wisdom and then traipse off.
A couple of them have time problems; Fran, Brian, Mark, Victor Hansen.
But they're coming anyhow, to give to you. They're not coming because
they're paid, they're coming because I have been able to contribute to
them, and they want to give back to you, and they want to get back from
the dynamic and the ideas; really work and collaborate.

I want all the speakers or the experts and the power panel, or otherwise,
just stand up, so you can get an idea of who they are. So you know these
are real people who are here. Andy, William, Marshall, Edwin, Dan, Shree -
I'm not going to pronounce it, Mike [unclear 11:50], Scott, Chet, Bob. Who
else? Anybody else? Troy, in the back. John, Winton; these are all here,
they're here to contribute, but I want you to know, this is not like your
mother's old seminar. This is so mind-boggling different, but don't try to
think through what's she going to do next, and this isn't the model; be
thinking [unclear 12:12], be in the moment.
Jay Abraham Mastermind Marketing 3
Jay: Is it on now? Okay, alright. We're supposed to play Rawhide but we
didn't, so presume you heard it. Okay, everyone, please, shh. Dave, play
something really loud for a minute. Just play something really loud for a
minute. Is it on now? Okay, alright. We're supposed to play Rawhide but
we didn't, so presume you heard it. Okay, everyone, please, shh. Dave,
play something really loud for a minute. Just play something really loud for
a minute.

Okay, don't play something really loud for a minute; by the time we get it
played, it'll be too late. (Music plays) Okay, we're ready to start. Get
yourself ready. Okay? Okay. Alright. Okay, now we've got to go, everyone.
(Claps hands)

My microphone’s supposed to on, is it? Put it up higher. Okay, alright,

okay. Where's Les [unclear 1:05]? Les, where are you? We need a expert
answer, seek Terry for a minute over there in the corner, she needs to ask
you a question.

Okay, so now we got to little bit of philosophical grounding. Now I want to

start building a bit here, but I've got to explain the process to you, from
my vantage point and all the other experts are going to function. Are you
all at a different table, yes or no? (Audience replies 'Yes.') Okay, and keep
it up because you're on your honor, and if you're with the same person
you came with, dumb, dumb, dumb, dumb move. Okay, so how many
people received the extremely voluminous, weighty, heady, diverse and
hopefully, impactful grounding materials?

Okay, keep your hands up if you went through some, most, all of them?
Keep your hands up if, in going through them, you got ideas you were able
to act on right there and then in your business? Keep your hand up if
acting on those ideas actually made you a profit. Stand up if it actually
made you a profit. Okay. (Applause) Okay, stop, where are our mikes?
There's about 10 of you; very quickly, go to the mikes and spread out.
Where are the mikes at? One's there, where's the other one at, Rick? Here,
we're going to walk around. I'm going to point to you, you've got one
minute or less to tell who you are, the kind of business you're in and the
one idea or so that you acted on before you came, and what the impact
was, and if there's a dollar measurable element; because I want to make a
point in a minute. So, okay, you first.

Man 1: My name is Kenneth Embery, I'm from Cleveland, Ohio. The name
of my business is Progressive Advertising and Marketing.
Jay: Okay.

Man 1: The ideas that I used is the idea of unique selling proposition.

Jay: Okay, how did you use it?

Man 1: I went to a - I bought a car from a car dealer, from a former

football player. Six months later, I hadn't heard from the man, but when I
got the car, everybody treated me with great accolades. Six months later,
I hadn't heard from him; I went back to him and told him how he could be
more unique is his community and make a lot more money. I showed him
how, in his advertising, he could make it a fun proposition; showed that
when you buy a car from me, all the other accolades you get; and the
man's business actually doubled, and I made $25,000.

(Applause and cheering)

Jay: That's pretty good. That's good, I like that. Okay. So what, stop,
quickly. What would you tell everybody that they might learn from the
experience you got before you ever came to - that they might do in their
own life?

Man 1: Well, if you have an idea, think of how it's going to help someone
else, write that idea down, write a list of people that you want to go talk
to, and go talk to them.

Jay: Okay, thanks. I want to move very fast, because I just want to get
some perspective. Right here, whoever's on top of this. Somebody in my
staff, help move the mike up and down, so it works easier.

Man 2: Hi, it's Bob Rothman from England.

Jay: How you doing man, long time, no see.

Man 2: I know.

Jay: Same business?

Man 2: Same business, yep.

Jay: How's it doing?

Man 2: Fantastic.

Jay: Okay.

Man 2: I'm a professional gambler, I sell horse-racing information, and the

thing that...
(Laughter)

Jay: You guys - what's the concept, it pays a wage of £50, is that what it
is?

Man 2: Does it? You've got a good memory.

Jay: I've got a great memory. And basically, he only bills you if the bet
wins.

Man 2: Yep. Anyway, after reading - in fact there's a questionnaire, the

very first thing. I was going through it and saying what the customers
want, and I thought, 'They'd like to know they're definitely going to win.'
And it suddenly occurred to me, I'm not doing a very good risk reversal.
And so, we're mailing a list at the moment, that's quite a good response
but a very poor conversion, and we had a lot of enquiries, converting at
about 3%, whereas our average is about 9. And so I rewrote the mailing
piece, did a total risk reversal, and offered the same people money
myself, to put on the horse, so they could see how it ran.

And it immediately - hello?

Jay: Yeah, still there.

Man 2: It uplifted it from 2.9 to 9.1%, about...

Jay: Translate that to dollars.

Man 2: Well it just means that the last three months, we're sitting on
about $30,000 in immediate revenue, and that probably translate to about
$100,000 over the next year, with the back end from them.

Jay: What's the lesson everybody else can learn from you?

Man 2: That risk reversal is fantastic and the more you can take for
yourself, so much easier it is for your clients.

Jay: Good point, Bob, thank you.

Man 2: Thank you.

(Applause)

Jay: Good having you back.

Man 3: Rick Lewis, resourcing marketing. Resource marketing is

essentially mortgage marketing for a mortgage company I'm a partner in.
What we did was - the problem with mortgages is it tends to be viewed as
a transaction or a commodity. We - there's a lot of things you can do with
mortgage if you actually know how to do it, but the clients don't know that
necessarily. Sat down with a fellow who had just retired from a CEO
position of a Fortune 500 company, showed him to use a mortgage to
reduce his outflow of expense from $2200 a month to $862 a month, free
up $120,000 in cash (missing audio). ...action, he asked us point blank
why you should pay us that kind of money, and we said, 'Well, essentially,
what is different about this mortgage from what you've got is that you're
making money with it for a change.' I said; 'We're making you how much
money over the next five years?' He said, '$340,000.' I said 'Is that worth
$16,000 to you?'

Jay: And he said...

Man 3: He's bought it.

Jay: So what's the lesson you would tell everyone here that you learned,
and that they should take away from that story?

Man 3: How to not become a commodity. Find a way to separate and

differentiate your product or service from the 'me-too's' that are out there,
by providing significant extra value and educating the client to the
perspective where they appreciate what they're receiving.

Jay: Good, okay, thank you. I'm going to be very quick, fast and quick.
(Applause) [Unclear 00:44] to the ground, wrestle him.

Man 4: Marky Anthony, Training Force Success, and we put together a

marketing programs using Mastermind as the way to create creativity and
get it flowing. I went to a large office manufacturing company; the process
of a Mastermind was new and innovative to them, so I told them that we'd
do the first month or two completely risk-free, so that the people got into
the Mastermind process. In doing that, I got all sorts of breakthrough
ideas. They become our long-term client, we're on a contract now. They're
giving me referrals also, to other copier companies throughout the
country.

Jay: Good. Lesson learned and lesson everyone else can apply is?

Man 4: Always figure out a way to utilize risk-reversal. If you know that
your product is going to really work for your client, walk your talk, put
your butt on the line, and the client will feel good about that, and you'll
feel real good when you develop a long-term relationship.

Jay: and you'll find - when I started doing - I started as a contingency

performance advisor; I only got paid if my stuff performed; I didn't win all
the time. They never lost because I was the one more at risk than them.
Then if I talked a fee, I would always make sure that was a validating
process. When we did the first seminars, we had - there were $15-20,000;
we had $5,000 cheques we didn't deposit until half way through the whole
thing, like two and a half days into it; you guys are on a risk reversal. First
time I did Australia, we had a million dollars in cheques. Anybody from
Australia in the first one I ever did sitting at the back of the room? For
three days, and the deal was, if we didn't give you - I can't remember
what we promised - $10-15,000 minimal yield in just the first two days,
they could leave respectfully and get their end cash cheque. Two left; we
didn't care. But when you use risk reversal, it forces you to perform at a
much higher level of value, performance and comparability.

It's just powerful, when you get the 502 case studies on Monday - or did
they already get them? They already got them? Okay, when they get them
on Monday - I don't know what that is - in there you'll see that of 502
documented, very, very modelable stories, and strategies and examples
you can directly and indirectly apply to your business - something like
what, Rick, 30% of them were based on variances of risk reversal? I know,
I knew that; I was just going to catch him off guard. I was testing him. But
they are, you'll see. Which way did I go? I just did you. Your turn.

Man 5: Hi Jay, I'm Virgil Walker, I work for a company; Cascade Sealance
in Portland. What we do is waterproofing and sealant materials and
glazing. We had a large client who, over a very small margin of dollars,
decided to switch their business after having a long relationship with us,
and we decided to use a risk reversal as a concept.

Jay: How'd you apply it? I'm going to hurry everyone, only because I want
to make a point. How did you apply it?

Man 5: Well, what we offered them was the ability to purchase,

essentially, 6 weeks’ worth of material without paying - well, to get 6
weeks’ worth of material without paying for it. And then we managed the
inventory on their side...

Jay: They were credit worthy right?

Man 5: Exactly.

Jay: And so nobody else would do that for them?

Man 5: That's right. And what it gave us was an opportunity to go back to

a client where we thought what we were offering was big customer service
that they really enjoyed, when what they really cared about was price,
and we identified with the greed that they had...
Jay: And so you got them back and what did...

Man 5: Actually, you know, what it's done is it's gotten us in the door. We
haven't gotten them back yet, but where price was keeping us out, now
offering them this opportunity has brought us back in.

Jay: Terms - you were able to counter-program on terms.

Man 5: That's right.

Jay: So what’s the lesson to everybody?

Man 5: I'm going to sound like a skipping record; the lesson is utilize
(Audio missing). The initial offer seems if you can quantify the ultimate
benefit of retaining this customer, then go big with what your initial offer
is because you're going to keep them.

Jay: Good, thank you.

(Applause)

Man 6: Hello, everybody, My name is [unclear 00;23] I'm from Holland.

I'm in the web hosting business...

Jay: Long drive.

Man 6: Yeah. It's about 5,000 miles. I'm in the internet business, hosting
websites. We already had some things in place like good headlines, long
sale copy, risk reversal, testing everything. But the thing that made us a
lot of money is rewarding referrals. So we started an affiliate program,,
which is easy to track on the internet, and we have implemented that in
about two and half months ago, and it has increased our sales with 600%.

Jay: 600%? What does that project out to?

Man 6: Well, in dollars that would be like $50,000.

Jay: Pretty impressive. What do you think the lesson everybody can take a
page from here is?

Man 6: The most important lesson is to test everything, do not think that
you know what your customer wants, and be generous when you reward
somebody for a referral. People get 25% of the first sale, because we
recognize a lifetime customer value of it.

Jay: Okay, and you'll find as we get into today and tomorrow, that about
93 different referral strategies we've uncovered, most people don't apply
one of them, and they range from just people having an eagerness to
validate the wisdom of their own choice, to economic incentive, and
everything in between, and we'll go through and grade it depending on
the situation. Thank you. Sir?

Man 7: Hi, Jay. Kevin Dunellen at Guaranteed Resumes, just outside of

Minneapolis, Minnesota.

Jay: I wonder what Guaranteed Resumes does, hmm, what can I...

Man 7: Preface: I owe you my $300,000 house that I just bought in

August, because I built my whole company based on a guarantee; there
are no guarantees in resume services until I read a sales letter from you
six years ago. I took resume, resume, this, that thing, A-plus, alphabetical,
Guaranteed Resumes, boom. Sales have gone up exponentially ever since,
six years ago, so I just bought my dream home thanks to you. I owe you...

Jay: What do you guarantee people?

Man 7: Results for a full year, if your resume doesn't perform for you, I'll
rewrite it or refund your money.

Jay: And no-one else has got the chutzpah, the balls to do it, do they?

Man 7: They have guarantees, but they're buried on page 10 of their

website typically, and mine's up front on every page; it's on my business
card, everything I do. That's just a preface, this isn't the stuff I did last
week, so thanks first of all for my home. In the past two weeks, I raised
my rates, I went upscale; raised the rates but I changed the terms, so
prices went up 30% but now you can pay on terms. And it's working. I also
recommitted myself to consultative sales; I shut up and let the client tell
me his or her problems. I've been doing it sporadically, but I retyped my
sales script.

Jay: You got it - doing it systematically and formally.

Man 7: Exactly. Consultative sales and going upmarket, changing the

prices and giving them terms can serve, really - that's going to do $10,000
in new business, just over the next year. That doesn't include the referrals.

Jay: What's the lesson in those two experiences for everyone in this
room?

Man 7: You can play with your rates if you also play with your terms;
customers are open to that. They'll find the money, in any economy. And
second, consultative sales works; there's no one sales trick that works for
everyone...

Jay: We going to do a huge session on it in a few minutes; I agree, thank

you.
Man 7: Yeah. Thank you, Jay.

Jay: Thank you.

(Applause)

Man 8: Hi Jay.

Jay: Hello.

Man 8: Well, you haven't bought me a house, but you can buy me a car, I
think.

Jay: Okay.

Man 8: Nick Web, Quasar MD. I'm from Italy. We used a headline. We've
interviewed some of our international customers to find out what they
would like...

Jay: What kind of business?

Man 8: Medical publishers. We asked our customers what kind of

problems they would like our products or our competitors' products to
solve for them, or what kind of benefits they would like. Our customers are
the international pharmaceutical companies. And they told us they'd like
our sales forces to be motivated, we'd like our receiving physicians to be
interested in our products. So I manipulated that to write a headline, and
we got a new customer the day before I left. He's made an order for
$32,000, and he's already paid that and his product will be ready in
August. And as a result of that, we've also reduced our production cost on
another project for about 6 or $7,000, so we're almost $40,000 up.

Jay: So what's the lesson?

Man 8: Well, think about what your customers really need, what they
want to do with your products, and act upon it.

Jay: Good. Thank you.

Man 8: Thank you.

Jay: By the way, tomorrow, we're going to interview somebody for about
15 minutes, who specializes in helping businesses figure out what their
customers or their competitor’s customers, clients, want and how to really
create it for them, and open up massive new markets and new distribution
channels. So it's a great prelude. Yes?

Man 9: Hi Jay.
Jay: Hi.

Man 9: My name is Tomaso [unclear 5:16], I'm from Italy. I live in New
York for about 4 years now. I work both in the European market and
American. I don't have a headline or a title. I have multiple income -
multiple sort of incomes. And I try to really come here and thank Jay,
because he is my ground. He grounds me up in the morning; as soon as I
get up, I put the tapes, and 'vroom,' the state of mind goes in there, and I
allow myself to really be more focused and not have - I applied the
powerful techniques he has, and simplicity. And I've opened up a whole
new line of income, not only for me, but also I've created some more job
opportunities for other counsellors.

Jay: Can you describe one because it's - you'll learn - all of you, by the
way, any law or - excuse me - that you (Audio missing). ...It's so
wonderful, but I'm about moving everybody to action through very specific
reference examples, so for this segment, Strategic Purpose, pick one
action that you did, that you can just say, 'Hey, I did this, it did this, and
you guys can learn that from it.'

Man 9: Okay. I'm a personal trainer, on top of that, so what I did is, I
wrote a letter to my advisor, my financial advisor, and I've requested him,
'Can I give a gift from me to your clients?' And I've used that - a good
sales [unclear 8:10], but also, just reminding him that there was no price
for him, there was no side of him that he had to finance me for anything,
it was just a gift.

Jay: And what happened?

Man 9: Well, we sent out the letters, and I have a database now with 200
clients that I'm sharing with him. It only cost me for the printing and the...

Jay: What was the economic impact, how much is that worth?

Man 9: $7,000 more a month, of personal training income, which is great.

Jay: And what's the lesson that you think everybody here should take
from that?

Man 9: Sure, it's to really act, to really - you can do all the programming
in the world, you can listen to all these tapes, but it really is acting; and I
acted. And I...

Jay: Great, good, thank you. Appreciate it.

Man 9: Thank you.

(Applause)
Jay: Point of reference; I'm going to get more and more, as we get deeper
and deeper in the three days; interactive. Because that'll the just - I'll
explain something and I'll make you guys all explain it, and when you hear
somebody interpret what they think the lesson is, that may be totally
different than you think it is, or you think it is; that's why I bought 650
people together, to share ideas, perspectives, without; as Fran said;
discriminating. Don't worry about it right now, just get the broadest
spectrum and then you can sort it out later; we start building your optimal
plan on Monday. Thank you so much. Go ahead.

Man 10: How you doing Jay?

Jay: I'm good.

Ma 10: Tom [unclear 1:55], from Inner Systems Technologies. We repair

medical equipment, and I use a Host parasite technique.

Jay: Now it's called host beneficiary; we printed it wrong. It was host
parasite when I first came out, but now it's politically more correct to call
in host beneficiary, so use it in the right - even though we incorrectly put
it in the book, which is shameful, do it correctly.

Man 10: Sorry about that, I'll update the notes. Okay. Host beneficiary.

Jay: Host beneficiary, that's right.

Man 10: I actually - we developed a cleaning methodology for medical

equipment, and I actually went to my competitor since they can't do that,
and he gave me his equipment, for a fee, and we are using it quite
successfully.

Jay: How much money is it worth to you, roughly?

Man 10: About $75,000, and we gave our competitor $15,000 of that.

Jay: Lesson learned?

Man 10: Don't be afraid to go ask. Everybody likes making money.

Jay: We're going to talk about the strategy for this, and we're going to
give you scripts before the weekend - the long weekend is over. Thank
you.

(Applause)

Man 11: Hi Jay, my name is Patrick Boggs, I'm from EasyTel and we're
utilizing the host beneficiary relationship, purely by accident, in that we
market a turn-key package of discount telecommunications and internet
services to and for our marketing partners, and whether they're sports
franchises, newsletters, or radio personalities, network marketing
companies, or whatever.

Jay: So give me one application.

Man 11: The one application is in the first section of one of your books;
the most important thing was - the most valuable thing you have is your
customer base. We sit down as a staff, and we started saying, 'What type
of assets do we have with our customer base, what can we do?'

Jay: Tangible and intangible.

Man 11: Exactly.

Jay: Okay.

Man 11: Well, the first - in the past 30 days, we generated an additional
$180,000 a month in found money that we didn't have before.

Jay: $180,000, by doing an inventory.

Man 11: $180,000. Exactly, by just...

Jay: Overlooked assets, hidden opportunity, underperforming activity,

undervalued resource; is that right?

Man 11: That's absolutely right, and since I - we came out on Thursday
morning, and since we've been out, the staff have been working up
additional ideas that will probably double or triple that number, within the
next 60 days.

Jay: Lesson learned, lesson...

Man 11: The most valuable asset you have is your customer base, and
you've just got to get all of your Mastermind alliance type staff to throw
out ideas and when you do that, you're going to get a lot of brain power
from people - and a lot of thought processes, from people that you never
really counted on before, and you really open up your mind. And this
seminar, I think, will continue to grow for us in that respect. Thanks.

Jay: Great. We're going to have on Sunday night, Alan? I always - different
colleagues and partners and different businesses, and one of them has
developed a whole thesis on re-thinking inside the box, and he's got a
matrix where he looks at all the opportunities, all the leverage points;
taking my stuff and manipulating it. It's really powerful.
Woman 1: Good afternoon, I'm from the Coaching Academy in the UK,
and I'd like to say three things very succinctly. First of all, we recently did
a marketing mail-out to 23,000 people, and we got a 37% response rate;
with a free gift...

Jay: What was the opening sentence or headline?

Woman 1: I can't actually remember, if you ask Jonathan, Jay, who's

sitting over there, he'll be able to tell you.

Jay: Okay.

Woman 1: And, so that was 37%, it's increased business by, in your
terms, $350,000. Secondly, when people rang up, we were mindful that
we had to qualify the leads, which I think is extremely important. And
thirdly, on this issue of referrals, if you do not ask for referrals, you do not
think that you're worth it.

Jay: Good. Thank you.

Woman 1: Thank you.

(Applause)

Man 12: My name is Dr. Tom Collins, I'm a dentist in [unclear 5:52],
California, and we decided to market to our existing customer base, or my
patients. We sent out a postcard that said - had a headline, and we offered
a bleaching of their teeth, which is normally $400, for $109, and it's been
very successful, but the back-end selling is even more interesting,
because...

Jay: You never did this before?

Man 12: No. No, no. One patient last week came in, and her teeth had
gotten whiter, but she wanted them whiter. So I did porcelain bondings on
all her anterior teeth, and so the back-end selling was excellent, so...

Jay: It was in her best interests for what she wanted. Good.

Man 12: That's right, and now she's talking about doing all her teeth.
Because she wants them all white like this.

Jay: What's the lesson learned?

Man 12: The lesson learned is, your customer base is really a trusted and
true friend to you, and also back-end selling; if you can give a quality gift
to - they said to me, 'Why are you doing this?' I said,' Because you've
been a loyal patient of mine for X amount of years, and it's Christmas, so
I'm kind of like giving this away.' And so it's a win-win situation.

Jay: Worth it. Good lesson. Did you get - did you put off that person we
talked about?

Man 12: Yes, absolutely.

Jay: Good. Didn't think I remembered, did you?

Man 12: (Laughs). Yes. I knew you would. Thanks.

Jay: Good. You're welcome.

(Applause)

Man 13: Hello Jay. My name is Brad Chestnut, I've actually been [unclear
7:25] for quite a few years. I own insurance automation and marketing
consultants, and a multitude of different programs through the Prodigy
notebook really opened my eyes to some thought process.

Jay: Give me one.

Man 13: Give you one. The one that made the most money, or the one
that...?

Jay: No the one that - it doesn't matter. I'd rather have the one that's the
most universally interesting. Let's assume, if you're back and you've been
a follower of mine for a while, that you made money from it, or you're not
stupid. So, he's applying it. So let's take the one that's the most
universally impactful to these people.

Man 13: I work with insurance agencies exclusively, and what I did, I went
to one of our - another company that also works with insurance agencies -
created a relationship with them. The objective and goal was to work off
their customer base. Well, it was a little bit tough situation to try to pull
off. I said, 'Well, let me do the marketing piece for you first, on our
customer base, so you can benefit from us first.' Loved it. Put the piece
together, did a marketing up for them, for our own customers...

Jay: So you invested forward for them?

Man 13: Did it first for them.

Jay: What happened?

Man 13: The results were phenomenal; about 80% of people went with
him. It was phenomenal.
Jay: And what happened for you?

Man 13: First of all, I have a very close relationship with my customers,
I've got 100% customer satisfaction, so just me suggesting it comes
across very strongly with them.

Jay: So the authority and the gesture is very, very favourable received?

Man 13: Yeah.

Jay: So what's the lesson here to everybody?

Man 13: Well, that was the first half of the battle. The second part of the
battle; I wanted them...

Jay: To do you.

Man 13: To do the same thing for me, but I wanted to write the piece.

Jay: Of course.

Man 13: With him signing the bottom.

Jay: Makes sense.

Man 13: Which we did, and he also has a very strong relationship with his
people. This was put out about a month ago, the lead count on this has
come in; it's absolutely phenomenal. I would say we're looking about a 25-
30% lead hit from the thing.

Jay: Wow.

Man 13: We have about a 90 day sale cycle, so the numbers are still
coming through.

Jay: What do you think, conservatively, it'll be worth?

Man 13: I'm betting we're going to probably pull about, in gross revenue,
somewhere around 150-200,000.

Jay: Lesson?

Man 13: Work the people who are working your same customers, develop
a relationship and - we're not competitors, but we can create a very
positive working relationship together to complement each other.

Jay: Thank you. (Applause) Pete, we missed each other the other night. I
was with [unclear 1:31] getting a massage when you called, then I had a
meeting, then I was like, burnt out, but we'll see each other tomorrow,
okay?
Man 14: Got it.

Jay: How are you?

Man 14: Fantastic.

Jay: Even better when we get our deal going.

Man 14: You got it.

Jay: Okay, what's the story here?

Man 14: Okay, so we get all these emails from - you'll be getting in
September, so we're thinking, 'Geez, what the hell's he going to do to us,
beat us into submission here?' And one email after another for the events
coming up, and we're thinking, 'Well, geez, why can't we do this
ourselves?' And we said, 'Well, we can't, because we've got a lot of
products and we can't push all of our efforts into one particular product
over a 4 month period.' 'Well, why can't we do it over a month?' 'I don't
know, let's try it.' 'Well, maybe we'll lost a lot of email customers.' 'Well,
let's try it and let's see if people drop out or not?

Jay: And how big is your email list, 40,000?

Man 14: Pardon me?

Jay: Your email list is 40,000?

Man 14: Yeah about 40,000.

Jay: Everyone told - every internet expert says 'You're crazy, don't do that,
they're too long, they're offensive, they're going to de-subscribe -
unsubscribe.'

Man 14: No, the longer the emails we send out, the more sales that we
get. And we will send out - we have one email that's 5,000 words long.

Jay: And did it make an economic impact you can extrapolate?

Man 14: Well, yeah. What we're just talking about there, instantly and
immediately doubled the sales for each campaign for any of our products.
And this was for just one segment of our list, the - we made an immediate,
in that first two week period, $20,000. That was off of 6,000 names.

Jay: Lesson?

Man 14: When you see something that's working for someone else, see if
you can figure out how to get it to work for you.
Jay: Test it.

Man 14: Yeah.

Jay: Thank you. Well?

Man 15: My name is Will Green, I ran trade associations and the thing
that gave me the most value was that big long questionnaire, because it
stimulated my thought, so the question asked, 'What was the one thing
that stops your - the big resistance for your company?' And we've been
trying to develop a healthcare program for seven years. And because of
that question, I made a phone call; we developed that healthcare program
for everybody, that allows us to open up a new association for - we have a
market of about 1 million people, and now we have a market of 4.5 million
people. So I don't know what the total value of that is going to be, but if it
is representative of what we've done, it's probably worth $20 or $30
million to us.

Jay: Lesson?

Man 15: Lesson was don't forget to go back and remember the things
that you really want, and go after them.

Jay: Good, thank you.

Woman 2: Hi, my name's Wendy Robins, we have a product called the

Tingler, which is a head massager, and we used part of our database to
just ask people to refer three friends. People who had bought our product
before, liked it; refer three friends to us. We got 1,000 referrals within a
few hours, basically.

Jay: Did many - any of them buy?

Woman 2: Yeah, we're still tracking it just to make sure that we can
identify exactly who bought what, but what's really cool about it is we
were able to automate the system. So what it means is the auto-
responder goes out, and every week it asks them to do something else, do
something else, and refer more people. So that's great, because it cost us
nothing.

Jay: What's the lesson?

Woman 2: The other quick thing that we did is we created...

Jay: Just one, just one, only because - if you're already at the mike, stay,
but nobody else up, because I've got to - this is an exercise - I want a
lesson though, I need a lesson, don't leave. Give us a lesson in there.
Woman 2: The lesson is, use your customer database to use referrals,
ask them via email; it doesn't cost you anything to refer three friends. It's
really easy to just create a quick little form, they'll literally refer people to
you. It's phenomenal; you'll use your auto-responder and you'll just keep
going, going, going, going.

Jay: Good. Thank you.

Man 16: Hello Jay, Gill Meyer from Atlanta, Georgia. And one of the lessons
that I learned and that actually we're in the process of implementing.
What we do is we do financial transaction processing over the Internet. We
process cheques electronically; I've already been introduced to Tony, I see
you looking over at him. But in any event, one of the things that we've
done with this new product is we've brought together the ability for online
gaming, casinos who have a major problem getting money into their
accounts, and so we were already working with a software vendor who
already has a software, and there's a magazine called Gambling Online,
and I come to find out the guy lives three blocks from my house. So I got
in touch with him, and I said, 'Eric, what I really need you to do is to email
your customer base and tell them what we're doing.' He's like, 'Okay, what
do I need to do?' And so we put together a relationship, and that email - it
may have already gone out, but it'll probably go out next week.

Jay: Unless it really is lame, it's going to transform your business.

Man 16: Yeah, it's - I can rattle off numbers, but until I see it happen - I'm
pretty fired up about it, so...

Jay: [unclear] What do you think the lesson is?

Man 16: Lesson clearly is - first of all, this is a new business, we've been
in some other financial processing businesses, but this one is, find out
who's got your customer and go strike a deal with them.

Jay: Great point, thanks. Sir?

Man 17: Hi, Tom [unclear 6:29], LTA Media. We do - we sell products on
the radio, and two years ago the internet thing happened, you know, and
we're buying up all the radio time, and it just killed us. We were doing
really well on the front-end of everything we were selling, because media
was affordable. Then all of a sudden, it went berserk. These people had
more money than they knew what to do with; they were buying media for
nothing, and driving the price up and it forced us to rethink what is was,
how we're going to stay in this game. And after attending one of your
seminars, it just blew us away as to what the possibilities were in the back
end. We just didn't have to deal with it before, so we started working the
back end and...

Jay: What happened?

Man 17: I could just tell you, it's ridiculous, it's ridiculous. (Laughter) Well,
we basically ended up selling - at the back ends' the most lucrative thing
anybody could do; I think, anyway, after doing this. We basically ended up
selling in one single product in the back; we just sold over $110 million,
brought 32 to the bottom line, but it didn't cost - because you don't have
the advertising costs, you don't have - it's ridiculous.

Jay: What's the lesson?

Man 17: The lesson is, I don't care what you get out of all of the this; if
you develop a back end, you just sit there and go to the bank. It's a
beautiful thing. (Laughter) Back end of...

Jay: You're right, you're exactly right. So, thanks. (Applause) Three points,
three points. You are lucky. You are lucky because I am a mellow fellow at
this point in my life. You are lucky I am a mellow fellow because I'm going
to tell you why I stopped doing the Mastermind Marketing seven years
ago. Because I got tired of sending out killer grounding materials to
everybody who thought I was trying to use them to deflect the cost of my
programs, and instead, didn't get that I wanted to pay for the program for
them if they would just study them, implement them, find one or two
applicable - not big, but immediate applications, and use it.

I got tired of 10 or 15 percent of the people making $5,000, $500,000,

millions, and most of the people doing nothing. But I'm a mellow fellow
today. I don't have anger - because I used to - did I used to get mad at
people? Anybody been to any of my old programs? Who? Raise your hand.
Am I a mellow fellow now? I'm not going to castigate you, I'm not going to
point out and walk you on stage, and say, 'Why in the hell didn't you do
that when I sent it to you three months ago, Fred?' I wouldn't do that to
Fred like I used to, right Rick? I wouldn't. But I would say to you this.

I didn't spend almost $500 in hard costs to send you stuff that we sell
separately for very really $11,000, when I'm in the mood to sell it, which I
don't do very much because all I do this for is just for fun, and I'll tell you
my reasons in a minute; for you to have heavy, expensive paperweights? I
did it because my hope, my belief, my desire, and truthfully, my
expectation was that you would read the damn stuff, that you would listen
to it; that you'd find an idea, apply it - and everyone would stand and be
at that mike. Remember what Brian said? I mean what Fran said about
80/20 now, 95/5?
And what Brian said? I want you guys to be in the 20 or the five, but it's up
to you, I can only bring you to water. The stuff I'm teaching you is the by-
product of me spending 25 years, many of those 18 hour days, going
through two marriages, losing $35 million to ex-wives and rapscallion,
roguish, just terribly infidel oriented partners that didn't turn out to be
very good, and learning a lot of very painful lessons, making a lot of
observations, studying the good, the bad, the ugly of a billion dollars
worth of marketing experiments, to try to discipline, simplify, and compact
it into a peremptory, a three-day and a 12 month follow up experience;
but I need you to help me, I really do. It's very important.

Now, let me tell you what I'm here for, for the next three days. Let me tell
you why I'm here to do it. I'm going to cover as much ground as I have
and we're going to do it in sequences, because I'm trying to layer experts
who have some rigid timelines, and you've got to be flexible, will you?
(Audience replies 'Yes.') And you got to understand, this is not a regular
seminar, I don't purport to be the likes of, and are good friends of mine;
Tony Robbins, or any of the other people; I'm a very - I'm a real
entrepreneur and I'd advise you is to try to open up and share with you.
Some things we'll do are a little long, a little short; work with us, keep your
energy up and we'll get you motivated.

So here's what the five or six things I'm trying to do here this weekend for
you are. Number one, I am committed to you. And I want each and every
one of you to be committed to each other, to redefine and open up your
mindset to the kind of possibilities that strategic-based marketing can
produce for you. Number two; I want to turn you into a more masterful
marketer than anybody else you compete against in your field, sector,
industry, locale, depending on - and I want to raise your standards.
Because maybe you're local but you should be regional, or maybe you're
local and you've got this incredible system and you should be at least
licensing or selling it to somebody else. I want to teach you how to master
- first of all, recognize, understand, acknowledge, recognize, all your
overlooked assets, hidden opportunities, underperforming activities,
undervalued relationships, under recognized resources; and learn how to
deploy them, how to harness them, how to harvest them, how to deploy
them in a systematic, sustaining, compounding basis.

I want to - I should know all this - teach you how to use the Internet
intelligently. I don't purport to be an Internet expert, but I will tell you,
even though I don't turn mine on, I’ve helped about 20 people triple their
website presence, and we sold and made - we made $800,000 in the last
four months screwing around with one email campaign. You wouldn't be in
this room - I mean, I'm pretty proud of the fact that we sold to the better
part of 700 people of $5,000 attendance, and we sold 400 $2,000 tape
set, just by our feeble understanding of email, so there's something to be
learned; not about how great I am, but what we have discovered that is
different. Please turn it off, or leave it outside, because it's just going to
drive me crazy. Thank you.

Finally, I want to teach you how to get breakthroughs and I'm going to
give you breakthroughs. Because I've studied the highest and the most
consistent performers in all the sectors, and they are to the company. The
individuals and the ones who engineer the maximum quantity, quality and
consistency of breakthroughs in, first and foremost, strategy, then
marketing, then innovation and then management; and most people don't
have a clue what marketing, strategy and innovation are, so I probably
should try to define it, shouldn't I Rick?

So I'll try to define it. I'm going to defer to a couple of other people. See if
I got some notes here. Coincidentally, I brought some. Do I have it? Okay.
Most companies - and you'll get to this - by the way, in your workbook
there's three or four redundancies. They're there partially as a mistake
and partially on purpose. How could that be? Well, we accidentally
replicated things and instead of pulling them out, I thought, 'You know,
these are so powerful that if you read them two or three or 25 times, and
you reiterated them and indelibly imbedded them in the catacombs of
your mind, it would be the wonderfullest thing you could do.' So we've
kept them there so you'll be forced to read them over and over again,
because they are so pivotal.

But I'm going to read strategy. I believe 98% of all companies I look at
don't have a clue what strategy is. They're totally tactical, they live for the
moment, they're only lifestyle-oriented, they are so oblivious. Strategy
can mean many things, but I'm going to use a militaristic term that was
sent to me by a retired Colonel, who also is a Jay Abraham zealot; and he
said - by the way, most people use - sometimes seem to confuse strategy:
planning, and tactics: doing. 'Strategy is a science of planning and
directing large scale operations. This is distinguished from tactics, which
involves skilful methods and arrangements of the forces used to gain an
end.' He's an old soldier and he can't resist mentioning these, because he
thinks most people don't have a clue.

Most people don't have the wildest idea of where they're trying to get to,
and why they're trying to get to it, whether the reason they're trying to
get there is the right reason, whether the goal they've set for each other -
the other goal, the thing we had about whether it's even worthy of them;
you've got to become more strategic. Marketing, in my mind, and this is a
fragmented explanation, but it's a good one. All marketing is is educating.
It's first and foremost educating yourself to know who your best target
market is. Who the hungry, starving crowd is. Next, it's educating the
starving crowd to see that they have a massive problem that they may
never have recognized or verbalized.

Three, it's having them see that you have the only viable solution to that
problem. And then D; it's getting them to desire the result, the solution,
the protection, the benefit, the experience, the entertain - that whatever
you're selling, so badly now, not in the future, and only from you; because
you clearly are the only one that understands it. That's all marketing is;
it's educating people to see that they have a problem or an opportunity,
to realize that the problem or opportunity is solvable or reachable, or
tappable; that there's only one person, entity in the world who gets it at
the level, the enlightened operational, strategic and tactical level, that
can solve it for them; and that is you, your company, and that they need it
done right now.

That's all it is. Rick, was that adequate? Okay. What was the other thing I
was going to define? Innovation can be technology but it's not,
necessarily. All it is is bringing greater advantage to somebody's life or
business, that they value, appreciate and desire. It all integrates together.
It can be technology; it can just be basically something as simple as
having better terms, or going to them, or - I pay 50% premium because I
got a guy that picks up my laundry. We sold easily 50 times more people
to this event, because I was able to take twice the risk on you, and didn't
mind if you took a year to pay me. That's innovation, I think, when most
people can't get 20 people at $1,000 in a room, isn't it?

But am I high-tech? No. No, I'm very low-tech, I'm almost non-tech, I'm
almost technologically an imbecile. But that doesn’t mean that can't be
the most innovative person you know, and I can get someone to
implement and execute and deploy whatever kind of technology I need.

Man: How about leverage, Jay?

Jay: How about leverage? Did you write down my definition? Is it in here?
Where's it at? What page is it? Why don't you throw it up here?

Man: I don't know if it's in the manual but it's...

Jay: Okay, I'm all about leverage; I’m getting ahead of myself but it's
okay. Leverage is the ability to make a transaction. An opportunity. An
asset. Yield a higher result - upside leverage; I should qualify that. And
we're going to explore, we're going to dissect, we're going to analyze and
we're going to define, and then we’re going to basically master so many
elements and facets of strategy this weekend, or this long weekend; it's
unbelievable. Okay.

Man: Force multiplier.

Jay: Force multiplier, you've got to learn. I didn't explain to you, but I'm all
about working on the geometry of your business. You can't work on the
geometry of business if you don't get into a little bit; even if you're a
pacifistic individual; I see an Orthodox Jewish gentlemen, and today, for
this moment, be a little bit militaristic. Can you do that? Okay, throw
Orthodoxic or Rabbinical caution to the wind, okay?

Okay, we're going to look at force multiplier because this is going to

transform you. This is how, in the middle East last time, they were able to
slaughter them so quickly, and this time, if it comes to a war, most
probably it will just decimate them because it's the capability that, when
added to and employed by a combat force, significantly increases the
combat potential of that force, and thus enhances the probability of
successful mission. It is the discipline of creating multiple avenues of
penetration at the same time. By land, by sea, funnel attacks, [unclear
19:49], there should be some other attack - overhead attack, side attack,
missiles; forging ahead to penetrate ahead, advance intelligence, soften
the enemy, prepare them for the big one, air attack, stealth attack; it
should be in paragraphs so it's easier to read.

A proven process of dominating your market in military terms. It's a

proven process of dominating and pre-eminently owning the market in
commercial entrepreneurial business terms. It all ties together. What it
means is, it's going after them from many different vantage points.
Military has got this whole integrated approach, and while they hope that
the first attack annihilates them, they really expect it to be one of - have
you ever hit a piñata? You know how a bunch of different forces finally
cracks it, and you don't know - it doesn't matter if you hit it here, it might
break here?

Well, the force multiplier is hitting at the target from many, many vantage
points. There's a concept you've got to learn now, and it's not original to
me. It's a guy who wrote a book called Unleashing the Warrior Within.
What's his name?

Man: Richard Machowicz.

Jay: We tried to invite him two times and he was out of town, I think,
which was tragic because I'm going to steal his thunder by giving you his
concept. He's a former Navy Seal instructor who took the training and
translated it to the business community. He's cool. He says all it's about it
three things. Number one; figure out what your primary target is. Number
two; what's the primary weapon to knock it down. And number three;
what's the most effective way to move it. Very simple. But then he says
most people get all cluttered and all kinds of munitions - he says all you
want to know right now is what's the most important single target you've
got to knock down first so you can move to the next one and the next one
and the next one.

And he says, you've got to knock it down, you don't just reach it. Knock it
down, annihilate, get the mother out of the way - excuse my phrase, but
get it out of the way so you can move on to the next thing. Force
multiplier goes (Audio missing) powerful weapons as you can mobilize,
makes them all cost justify, or strategically cost justify; and we'll get into
that later today or tomorrow. And it guarantees you a successful result
without discriminating or caring which one it is.

Who's on my email list? Who got at lost one email from me about this
event? Two emails about this event? Three emails about this event? Ten
emails about this event? 20 emails about this event? An offer to be on a
conference call, an offer to get a transcript, an offer to get reports, an
offer to talk to me personally? Anybody? Well, guess what? Every time we
did that - Carl, where are you, are you in the room? A different quantity,
an element of you came forward. And week one, maybe it was 10, week
two maybe it was 25 more.

Did you guys see the audacious, ballsy, seemingly brass, but very sincere
and straightforward and heartfelt email I sent last week, that said only
contact Carl if you're ready to buy? A hundred people responded to that. A
hundred people spent $2,000 because we just kept advancing and
penetrating from every vantage point. Does that work? Unequivocally.
Does it all work? Hell no. Could I tell you which one works best and which
one doesn't? No, and I don't have to. I did research and collaboration for
about 6 months on a project that I did, that I didn't go forward with, with
one of the pre-eminent multi-variable testing companies in the world -
probably the pre-eminent, wouldn't you think?

And one thing that they learned that I already knew was a lot of things
you try singularly, they don't do very much for you, they don't do
anything. Left - judging their own vacuum, their own static mind; but you
put combinations together, the result is profound. You looked at that. And
it can be massive but you can't achieve the incredible payoff if you don't
let the force be with you. The force multiplier effect. Okay. So, are you
curious why I'm doing this? I mean, if you think I'm doing it for the money;
maybe - we spent $500,000 so far to get you here. I spent more on
getting the grounding materials that only 10 or 15% of you so far have
even looked at probably, in your hands, than most of you gave us down.
We basically have got more little bins and things where we spent 50, or 60
or 100 grand on the first workbooks we're giving you.

I'm here for four reasons. Number one; I'm in a great mood and I want to
share it, because I did 50 programs when I was mad at everybody.
(Laughter) Am I right? Right, I was mad, I was angry, I thought, 'Why
man?' Because I came from a background where I had a dozen clients; we
made millions of bucks; I made millions of buck from them. If they didn't
follow through, I'd jettison them and I didn't tolerate them, and I was so
pissed at people who didn't make the most of what they had the
opportunity to do, and just sore at a high level, that I would just get mad.
And I realized that you need help sort of sequencing, and evolving; and
I'm mellower and I'm older, and in a great mood. In the last five or six
years, I went through basically a mid-life crisis; I stopped working, I got
tired, and I studied all the new changes and all kinds of different things,
and I have an enormous amount of things I want very much to share with
you; because I don't know that I'm going to do this kind of event ever
again, because I frankly am more focused now on working with operating
businesses where I get small fees, but pieces of the deal.

In order to do that, I have got - I started out being only a contingent

marketing expert. All I did - nobody knew who I was, and behind the
scenes I had a dozen clients, I've de-facto ran, strategized, directed, ran
out of a bedroom in my house - very comfortable bedroom overlooking the
ocean, but never went anywhere, made millions of dollars, stopped doing
it, because a niche market guru, became somewhat theoretical, went back
and learned everything again. I need to redefine to myself everything that
made me great, to make me even greater so all of you make more money
from the people that I help.

Third, is I'm actually hopeful that if I do a great enough job of educating all
of you this weekend, you’ll see how much more is possible; but there’s
about 20 of you here that are large enough and underperforming at such
an embarrassing level, that we're going to be matches made in heaven. I
don't know who you are, and you'll find me, or find one of my partners, if I
do my job correctly. And then finally, and probably ahead of my own self-
serviness, I’ve got all these people I’ve helped over the years, and I've
really watched them grow and prosper; I want them, and I've seen their
technology and methodology; I want them to come together and share it
with you, and I want, in the process, for them to use the experience to
grow their own business; and these are the experts, and I want to have
fun. I want to have a good time. And I want to see you guys transform and
not just - I don't want to be your intellectual entertainment. And that's
why we're here.

Correctly said, Rick? (Applause) Rick is my monitor. When we did a pre-call

that we took the liberty of transcribing and putting in your book; it's a
little embarrassing but you can see how we set the stage for everyone;
and we tried to canvas - and by the way, thank you so much. I'm at a
point in my life where your acknowledgement is very much appreciated
but unnecessary; your action, your implementation, what you do with it; is
the greatest compensation you'll ever give to me or somebody like me,
and that's the God's honest truth.

When we canvassed all the experts out there who are going to talk, we
said, 'Well, what do you think?' Read it, because we actually decided it
was profound enough that we put it in the front for you. This was pre-call
we had with everybody. I said, 'I don't want to call and just have every
man or woman for themselves; I want it to be integrated. I want everyone
to be able to understand everyone else's point of view and build on it and
they integrate it.' But there were four points that came out of all this,
don't you think Rick?

Rick: Three.

Jay: That's what I said, there were three points... (Laughter) I'm just
testing everyone, I know exactly what I'm doing. Number one; lack of
focus. Number two; lack of execution. Number three....

Rick: Lack of strategy.

Jay: Lack of having access to a special microphone?

Rick: No, no, you were supposed to talk about that.

Jay: Okay. Lack of strategy. I jumped, I'm just having fun. That almost
every company looked at didn't even understand what strategy was, they
were tactical, they were living moment to moment, lifestyle oriented; they
had to sell their business, they couldn't get even a fraction of what they
made really, net, in a year. They were stuck in a well-paid employ. They
didn't look at the asset as something they were husbanding for the future,
they were building, compounding. They weren't strategic, they weren't
trying to put into place systems that would sustain for them. Chet Holmes
could do a lot more about that when he talks; but we want to address that
now.

Now, now, last thing I want to say, then I’m going to get into
understanding all more about me until we have to stop; is that much of
what I cover today, tonight and tomorrow, will seem to you to be
reminiscent, explicative, duplicative, exactly the same as stuff that I sent
you in preparation. Now, do you think that is because I don't have
anything else to talk about? Do you think that's because I'm trying to
really avoid being original, or delving into the depths of my creative
capability? Or do you think it's because I have learned, over 25 years, that
intellectual understanding is not the same as transactional capability? And
that maybe we need to have a lesson right now in the difference between
process-learning and event-learning? Should I give it to them real quick?

You're going to do it, but you're going to do it better. But it underpins

everything I do, and why the process is critical. Two ways to learn: process
and event. Event is what most of us have been weaned on. We buy a
book, we get a tape set, we go to a 3 day experience, statically where an
expert lectures to us authoritatively. High up, looking down at you. And
you soak in the information, and you're blown away, and you go home and
it's so cool, and you try to tell people, and they go, 'Yeah, what?' And then
the status quo creeps in and grabs you by the neck and squeezes you,
and its Monday morning, and you can't remember anything because you
took no notes or cryptic notes; or if you took notes you don't look at them.
I'm looking at you, because I'm talking to you; you get that don't you? I
can tell. He's going, 'I think I can relate to that.'

And you end up with this much benefit but a great weekend and you're
gone $1,000 or $5,000. Process training can only, at best, get you this far.
It can change your mindset, and that's what I'm going to do with certainly.

Event training is how you keep going back and building on it. It's how the
military learns, it's how doctors learn, it's how pilots learn. Anybody here a
pilot? Anybody here a professional pilot? For what airline? [inaudible
09:04] Okay, can I ask you a question; you fly jets? When you decided to
become a pilot, did somebody give you the airplane pilot's manual, give
you an hour or two in a simulator and throw you the keys to a 747 and
say, 'Take it up?'

Audience member 1: No.

Jay: Did you instead have to go through arduous process of studying -

basically, theoretically studying it, simulatedly studying it, by sitting in a
seat a watching, studying it by holding and feeling, studying it by trying it
a little bit and getting a little bit more daring?

Audience member 1: Exactly right?

Jay: Is that a good way to learn?

Audience member 1: It's exactly right; it's a great way.

Jay: It's the only way, really, if you want to master it, because then you
become subconsciously competent at doing things automatically, when
scenarios happen, right? It's not just you're not the most articulate guy
about it, theoretically. Any doctors in this audience, medical physicians?
What kind? [Inaudible reply 9:56] The gentleman; there's a mike here.

Audience member 2: Emergency medicine.

Jay: Great, stand up. Did you decide you wanted to be - please. And by
the way, if I seem rude, it's not - I love you all, I really do, I'm in a great
mindset; but I'm going to be quick and curt because I'm going to go over
on everything, and I want to get right to the point, so if I'm rude, it's in
your best interests because I'm trying to cut it to just the essence so you
learn that.

When you went to - no pun intended. When you went to medical school,
did they give you - what's the name of the big - I think it's got somebody's
name, something's Medical...Gray's Anatomy. Did they give you a cadaver
and a scalpel, and then about a day later, say, 'Come on in the operating
theatre, you're going to do a heart?'

Audience member 2: No, we spent at least 3 months in the anatomy

lab.

Jay: And then you spent how much time reading about it, and watching it,
and going from dead animals, cadavers, to live little things, to holding, to
suturing, to get a little deeper, a little deeper?

Audience member 2: Two years before we begin clinical stuff.

Jay: Is that a good way to learn? Is that a good way to learn?

Audience member 2: Well, it's the only way, yes.

Jay: Probably the only way, isn't it really, if you really want to be proficient
and masterful at it? And you've got to keep doing it. Thank you. Anybody
here retired from the military? High ranking? High ranking?

Audience member 3: Major.

Jay: Major's pretty good. (Laughter) I mean, do they basically say okay,
recruit, here's the manual, here's a helmet, here's the keys to a $25
million tank?

Audience member 3: There's a whole lot of training, they just keep

building you as a person.
Jay: Is repitition important for proficiency and strategic affluency?

Audience member 3: Repitition is...Day in, day out. I mean, twice a year
you go to the field and do gunnery exercise.

Jay: Is that just to waste time and taxpayer's money?

Audience member 3: No, it's to stay awake all night, and learn and learn
and learn, and do it so when you're tired, you can still execute.

Jay: To live, and to drive, and to win the war?

Audience member 3: That's correct.

Jay: Thank you. Mac Ross, who's a great, great, great, great friend and
probably the brightest mind in business; and I call him the Dionne Sanders
and the - who did we used to call him before Dionne Sanders was good?
Who was it? Bo Jackson of business, because he understands all the stuff
that he can't possibly [unclear 00:39[ in one lifetime; says that today
business is war. We did a seminar years ago and it said 'Grow or Die.'
Mac's thesis tonight is going to be 'Win or die,' isn't it Mac? He says
whether you like it or not, it's a militaristic world, and you've got to
understand it; not to be brutal, but to be strategic. And do you agree with
what I’m saying about strategy? Okay, okay? So, Rick where are you?

Rick: Right here.

Jay: Wait, I screwed up so much, what should I do now, because I want to

make sure we do - no, I got all these notes I'm not following. Okay, what
do you think the best thing to do right now....

Rick: You are following but it's random and spontaneous. (Laughter)

Jay: That's okay, no. That's okay; are you enjoying this? If I get a dictated
thing that was just canned, it would be boring, and it would be so
impressive-sounding but it wouldn't - I'm about making sure you get a
result. You don't care how I do it, do you really? You don't care if I do it, or
if I get this guy to do it for you; all you care about is getting it. And keep
that in mind; you didn't pay for Jay Abraham to babble incoherently or
pontificate theoretically, that's a waste. Anybody can get someone to do
that. You paid for a result.

Rick: Talk about Peter Drucker.

Jay: Okay.

Rick: Marketing...
Jay: That's good. Look on the wall up here. It's on screen in a minute.
Peter Drucker, arguably the most masterful management business expert
of our time, says something pretty profound. I'm going to read it; it's on
the board over here. He says that, to quote - and there's a couple of dots,
only because there was more filler but it wasn't contextually any change.
Because it's purpose is to create a customer - I would now call it a client,
which we'll explain in a while. The business has two and only two
functions. Marketing and innovation. Marketing and innovation. Marketing
and innovation produce results. All the rest are costs. If you don't turn
yourself into a masterful strategic marketer, at best you are sub-
optimizing, at worse, you're screwed. (Laughter) Okay.

Rick: Recording and [unclear 2:38]

Jay: Okay, alright. I refuse - I did 50 programs in 1989 to 1995 or 1997.

Mastermind stopped in '95. I never do the same one twice, for three
reasons. I'm attention-deficit; I can never find my notes. I'm not lying, am
I?

Rick: That's why I'm here.

Jay: That's why Rick is here. Because I add all these notes in, I could
never find them. So he's like my memory. Number 2 is I was so committed
to trying to stretch and try different ways to move people to action.
Number 3, I realized that where you are now, basically based on what I
hope I and Mark, who's going to come, and Chet, who'll talk today, and
Mac, who's going to hammer it home tonight; will impact you, is there's so
much higher you can go. So much more you can accomplish, so many
more people and levels you can impact and contribute to, that (Audio
missing) ...and that even by Monday, that your limited paradigm today is
miniscule compared to where you'll end up. Whenever I get into the zone -
because I don't remember a word I say, I insist that every word be
protected and preserved for ever, for your benefit. Because if you go to a
static, lecture-based big expert; you feeble little underling, type of a thing;
at most you'll retain 7% of that. That's research, scientifically based. You
go to Jay Abraham program, you'll do maybe 3%. Not because I'm more
feeble, but because I'm more breakthrough, more tangible, more action,
more provocative. Your mind's going to be tripping out and you're going to
think of all these permutations, you're going to be talking at the tables,
people are going to sharing their insights, you're going to be seeing all
these applications; you're not going to hear half of the stuff that goes on,
which is okay for now, but once you go home and realize that you are
twice or thrice, or ten or 100 times more of the potential business person
or company than you ever thought possible; a lot of the things that you
would discount; because they don't seem to apply to you now in your
current static circumstance will be very important. And I refuse to harness,
harvest and articulate that for you, not myself, but out of everybody, and
not make it your prisoners' forever.

But in giving it to you, I assume three things. That you'll listen to it. Not
once, but many times, because process learning is about listening and
getting more and more things out of it. The greatest book that I ever read
for my own growth, was called Scientific Advertising. It was written by
Claude Hopkins. It was written in 1919. I read it 50 times. And very like -
someone who's very religious, committed and reads the Bible over and
over again; every time I read it, I got another distinction, another
breakthrough that made me, each time, probably $1 million plus and I
regrettable just stopped when I burned out about 5 years ago, and I
started again reading it, and it's instantly paid off.

You can't listen to the tapes of this if I orchestrate this dynamic properly
enough times, and have your people listen to it; and I would even get it
transcribed. And if you guys want to, later on we'll figure out a way you
guys can all get it transcribed for cost, and we'll figure someone who'll do
it for you. Note-taking. From today forward, I want you to take a pad - we
got enough pads, you got two pads there, and if we run out, I'll buy you
more. I want you to do two things. Every minute - it's going to be the
hardest thing you're going to do and I will yell at you. I’m a mellow fellow,
I'm so - and by the way, I may not get everything I want in this time, but
worry not, before you leave you'll get everything we promise you. I just
got to set the stage for everybody.

If you don't do this, you're going to be missing on probably 80% of the

opportunity. Most people are not used to taking great notes. Most people
are not used to saying, 'What about that? Is it directly or indirectly
applicable to me?' Most people don't realize that they great breakthroughs
in your business will never come from within; they will come from without.
If you look at great breakthroughs and the origin, almost none of them
come from within. FedEx; FedEx wouldn't be here - Mike is here; if they
hadn't borrowed the Hub and Spoke processing system from the Federal
Reserve Bank.

Roll-on deodorant wouldn't be here if they hadn't borrowed the process

from the roller pen, with the centrugal force concept. Very good. Fibre
optics, that everybody credits to Telephony, the telecommunication - they
wouldn't have come here if you would have depended - do you know
where it came from? Aerospace. It was borrowed forward. Any of you guys
who are re-growing your hair because of Monoxodril? That wouldn't have
been here if they hadn't have created it for acne. Breakthroughs don't -
great breakthroughs, powerful breakthroughs, strategic breakthroughs,
marketing breakthroughs, innovation breakthroughs; very rarely come
from within. They come from travelling outside your comfort zone, outside
yourself, outside your business. Some of you have already been - we know
that. Some of you have forgotten it who knew it. Most of you never heard
of it before, don't know it.

Anybody ever travel outside of your city? Your state? Your country? North
America? The Western Continent? Okay. Every time you go a little further,
you see different, really fascinating things. Different cultures, different
values, different foods, different climates, different clothes, right?
Different moralities. But it grows and expands you, it makes you broader,
it makes you more knowledgeable, it makes you more aware. Broadens
your perspective. Travelling outside your business will do that also. Why?
Why, because the approaches that are the most powerful, you'll learn, are
common place in other industries and they're totally unknown in yours. A
concept that's as common as dirt, Industry A can have the power, the
impact, the profitability, the pre-emptability and the pre-eminence of an
atom bomb, if you're the first one to understand it, to use it, or
combinations of it and other ones like it, in your world. You'll never do it if
you don't study other people.

I am going to force you for three merciless days and nights, and the
reason that I almost begged you all to eat lunches and dinners together, is
that I want you all to share your different perspectives. I want to share
your hopes and your dreams. I want you to share what you got out of
something today, and how you're going to use it, so somebody that didn't
get that will get what you got; and if you talk to a hundred people today,
you'll get a hundred different perspective you never would have had, and
20 of those will be things you never would have used; and the force
multiplier effect will be with you, and it's unbelievable. Does that make
sense?

Rick: Absolutely.

Jay: Okay, what next, Rick?

Rick: You have a choice. You could launch into Nine Drivers and Abraham
101...

Jay: Well, what's our timeline with Mark and...

Rick: You've got 50 - you've got 40 minutes.

Jay: Okay. Let me do an overview of Abraham 101.

Rick: Or the interaction. With strategic questions.

Jay: Yeah. Okay. Let's do a little of that first. We got three things to do and
I've got it very orchestrated but I never follow it. No, but it's okay. Again,
trust me on this; this concept of the field of dreams is what you're part of.
If our goal is to give you, and have you give yourselves, the most
incredible outcome possible, and have you turn yourselves into strategic
marketers, highly, highly integrated, masterful entrepreneurs, and have…

Jay Abraham Mastermind Marketing 4

...an incredible strategy and then tactics to deploy it. How we get you
there is not important. That we get you there by Monday night is all
important. Do you understand that? And you're all going to get there
differently, and I can promise you, you're all going to get your
breakthroughs at different points, and that is normal. I've done 50
different variances of this, so don't try to wait for something to happen,
and don't even ask me about any questions about, 'Am I going to do this,
am I going to do that?' I will do everything you need done, because if I
don't, you're going to have the chance to ask me a question about it; like
you, and if you don't shame on you. Because I am here, and if I can't
answer it, I’ll go to the audience who might be able to answer it better,
because I don't have any pride; I just want the truth, because the truth
experientially, is what will really drive you to greatness.

So let me give you a chance to get to know each other, okay? We're going
to do - we've got, in the workbook - where, what page?

Rick: I'm not - the strategic questions are not in the workbook, they're in
the...

Jay: Not in the workbook, but that’s okay.

Rick:...they're in the grounding materials.

Jay: We tried to create a neat workbook that was a little different; for what
reason I’m not sure, but it works out. We’ve got a bunch of interesting
questions I want to ask you. And we're going to go through about three of
them, then I'm going to have you write down the rest and ask them of
yourselves at lunches and dinners. The first one is - and this is going back
in time. What initially got you started in business in the first place? What
passion, what goal, what circumstance? Because a lot of you have lost
connection with the passion that started and you had it in the first place,
and to become a masterful strategic marketer, you really have to do that.
You really have to do that. And I need to know, and I need you to get back
in touch with your roots. What was it? Was it, 'Hey, when I saw this
opportunity I thought, man we could do better, we can make this outcome
better, we can protect people better, this is a great deal, I love this field, I
love the people in it.' Was it your technology? What was it? What got you
started?

And then I ask you as you're writing that down; do you still have that
feeling in your heart today? Do you still have that connection, do you still
relate the same way, or did you lose it somewhere between being
connected in the beginning, day-to-day, dealing with people, and moving
up to being the jack of all trades and the manager, and the bookkeeper,
and the bottle washer and the CEO?

What's the next question? When you first started, how did you attract your
first client? It says customers; we didn't change that. It should say clients,
and you'll see why in a minute. When you started, and you had nothing
but an idea and a little bit of capital, or no capital, or a lot of capital.
Maybe you were one of these Internet start-ups. Or you got raised by
private fund investing. What did you do when you had to make things
happen?

Did you call on people? Did you send letters, did you do something much
more effectively then, and then you got enough critical mass and enough
momentum that you stopped doing that and you bought other people in
or you moved yourself to a higher level, and things you did - maybe not
consciously, systematically; but regularly because it was the only way you
could get things going; you stopped doing now?

Next. And are you doing that today; number two. Why did your clients
originally buy from you? Maybe it was your passion, maybe it was your
personal accessibility, maybe it was the vision you had, maybe it was your
[unclear 00:08] vinegar, your - when I started out, I was so young and I
was energetic and so full of possibilities that I just -I overwhelmed people,
and they submitted just to the force of my enthusiasm. What was it about
you; and the question is, are you still that person today? Is your business
still that entity today? Is there more?

Rick: Three.

Jay: Okay, so I'd like you to answer those right now, and then I'd like you
to take - each table - I'd like you to take one of those, because we don't
have time; any one of those; I'd like you to answer to the group. Say, 'My
name is Jay Abraham, I'm a marketing expert (or whatever your business
is), I'm from this, and my answer is this.' And I'd like you to also share
what, if any, other thought, like underlying thought just came to mind as
you were answering that. Like, 'Shit, I'm not doing that anymore.' Or,
'Darn, I did this everyday and it built $3 million, and then I decided to be a
CEO, and I stopped doing that, and we plateaued and now we're at 2.6,
and if I'd only hired somebody behind to do the next level and the next
level, we might be at 8.3.' Or whatever, okay?

So take a minute to answer those questions, and then...

Rick: Jay? How about if they shared their biggest outcome that they're
looking for this weekend, as a part to question number four?

Jay: Okay, we'll do that. That was going to be another exercise but we'll
do it. Also at the end, after you've said what the answer is to just one
question; and you're going to be on your honor system because I'm going
to stop at 10 minutes; you won't get all the way around, but you'll get to
know each other a little bit more intimately. Share the one biggest
outcome. So it's Monday night. It's 9:00 or 10:00; and I know some of you
have to leave early, thank God we're going to have tapes, isn't it? And
we've done our job. And you've helped me help you; turn you from
marketing midgets to masterful - some of you are already very masterful,
but you'll be better; to just gloriously masterful strategic marketers, and
you've got a plan in here.

What do you want to walk out with - what one thing more than anything
else, must Jay Abraham give you and your company, or Jay Abraham's
attendees, or Jay Abraham’s experts, or some combination there, of give
you, and you, and you as could be different. So that you feel you've got
more than you wanted. What thing are you going to judge us, and judge
the event, and judge all the contributions, and judge your feelings and
interactions on more than anything, and why? Try to make that the last
thing, and then we're going to start in one minute.

Dave, now I do need some mellow, reflective, soul-bearing, candid,

vulnerability-inducing music, okay? And while you're doing this, so you
know this, the paintings in this room don’t come with the room. It's a
client of mine, who I don't get paid from; I take his art in kind because I
love it. I own five pieces and three of my pieces are here, and I'm going to
challenge you to figure out which ones they are. And I just thought I had
them bring a couple of pieces for me one time, and they coincided with
the programme; it was so cool that I said, 'Hey, why don't you decorate
the whole place?' He's here working on his business; [unclear 3:06] where
are you?

Woman: I saw him out in the hallway...

Jay: And he's brilliant, and his work is collected by the Sultan of...where?

Woman: President of Neiman Marcus...

Jay: Of Kuwait, the President of Neiman Marcus, Richard Branson has his
stuff, Andre Agassi has his stuff; I have his stuff. I just thought it would just
knock you out; its cool stuff isn't it? (Agreement and applause) I said,
'Decorate the place,' so he bought his whole collection here for us.
(Applause) And this is a project he's working on right now, with the Nobel
Foundation, to commemorate their 100 years, and it's the heart of peace,
and I thought, 'That'll be a cool emblem that we could appropriate for the
weekend.'

So, okay, we're ready to start? Who's going to be out official timer - who's
got a Rolex? (Laughter) Okay, who wants to give it to me as a gift? Who
believes in tithing? No? Okay, is your Rolex accurate.

Woman: Yeah.

Jay: What's your first name?

Woman: Pat.

Jay: Pat, you don't need to take it off. Okay, it is 1:14 on our digital $10
clock, what time does your Rolex say? Okay, at 1:24, Pat, the Rolex official
timekeeper is going to jump to her feet and say what? Time!

Woman: It's 1:24.

Jay: Okay, so you got 10 minutes, we're not going to get done; we're
going to start it. Go ahead. Use your time wisely. (Audience chatters).

...doing lots of this all weekend, but it's powerful, isn't it? Did you guys get
any insights from it? Okay, where's the roving mike? Rick? Okay, Rick, I
need a roving mike runner; one of my staff come here please. Raise your
hand, somebody at each table that got a hell of an insight out of what just
happened. A real interesting insight that applies to something meaningful
in their business life. Raise your hand. Okay, only two? That's interesting,
but that's okay. You don't have to. Okay, when we do exercises like this,
they're designed to do two things. Get you to see how many different
ways other people see and seize life. Yeah, well, it's just too much - I'd
rather - okay.

I'll have you guys who raised your hands go to the mike, just because we
can't get in there as easily as we wanted to because of the configuration.
Sorry about that. And the key to this event is going to be your willingness
to stop for a moment, figuratively and literally, to think through what you
got from that experience, what the biggest insight; I-N-C-I-T-E, I think. Or I-
N-S-I-G-H-T, whichever it is; and or both...

Audience member: I-N-S-I-G-H-T.

Jay: Yeah, but it could be also provoking you; depends on your thought.
And also the action it's going to cause you to do differently in your life,
and if you force yourself at every experience you have at the tables in
here, to think that way, and say, 'Wow, what about that is actionable?' I
didn't finish by the way. You'll go to the mike if you had an insight from
what just happened, that will positively change some way or something
you do, or something you'll reflect on in life. I was going to start with my
pads; I was going to show you what to do.

Can you see that? That's a vertical line that cuts a pad like a third, two-
thirds. That's how I would start taking notes, with the left third being what
I'll call 'linear literal,' and the right being 'translational and applicational,'
and you can call it anything else you want because I'm not in the right
words at the moment. But what you want is; somebody's going to say
something, and it's going to impact you, like 'I've got to do a back-end.' So
you'll write that down on the left, because that the literal linear. But then,
you've got to force yourself; this is something no-one else has ever made
you do, and I'm the only one that'll force you to do it; and if you do it
diligently from this point, throughout the rest of the long weekend, and
the long evenings; you'll do it forever.

Stop and say, 'What's the specific action, coefficient or correlation that
that generic theoretical, philosophical, general thought or insight has to
my business?' For example, create a back-end. Okay. Figure out a service I
can do for due, or figure out a way to get people to buy my...blank blank,
and then sell them 15 of my blank. Take it to something more specific.
Why? Because if you don't, if you delude yourself - and I think I’ve got a
very good mind, I think I got - even though I'm attention-deficit, I can
remember a lot of really amazing things, as you'll see; because I've got
people here from 20 years that come back, and I'll remember. Maybe not
the name, but a face and a business, and an element. I don't remember
squat of my own events, and I'm blown away by some of the insights I get
from you all. You won't remember anything if you look at your generic list,
like develop a back end. In the moment, your mind is going to be so
stretched, so focused, so basically appliably opened up, that it will, if you
ask it to give you very specific first stage applications, but if you don't
make those applications, a prisoner forever on paper.

I make my stream of consciousness, or my 'in the zone' a prisoner forever

for you on tape. You got to make your thoughts a prisoner forever on
paper, and let me tell you what I might do. So I'm going to encourage you
to make great notes, and great interpretive ones, because a lot of shows
and a lot of programs, I've made people give their notes to somebody else
and trade them, and if you take crappy notes you might get crappy notes.
Serious. Am I joking? I do some very unusual things, because I want it to -
I'm serious, this is not intellectual entertainment.

This is about forcing, pushing, cajoling, inspiring, ruthlessly but lovingly

keeping you committed to giving yourself an enduring breakthrough.
Okay? Alright, so once you've had a breakthrough, or an insight, run to the
mikes. Only one person, and it's our timekeeper. What, the people that
don't keep track of time, right?

Woman 1: Thank you, Pat Burns, general manager of the Millionaire

Summit. At our table we had 12 people, and every single person had an
ulterior motive other than being here.

Jay: For example?

Woman 1: Oh, just, buy land for their business, to increase their exposure
about the personal branding, about coming after contacts that would be
here; it was all about secret agendas or inside agendas.

Jay: Okay, and so what do you think the lesson to everybody about that
might be; or the insight that people might take if they hadn't seen - see, I
want people to understand. If 650 of you are hearing me say something,
that 600 are getting something totally different. Not necessarily better or
worse, but there's so many options and perspectives, and the more of
those I can open up to you kaleidoscopically, the more choices, the more
combinations, the more force multipliers you guys can commandeer. So
what's the insight for everyone to capture from your insight?

Woman 1: For my insight, is ask everyone that you meet question

number 4,

Jay: Which is? What's your outcome?

Woman 1: What's your outcome.

Jay: And why?

Woman 1: Because it's going to give you an immediate, well...

Jay: No, no, and why. Add why to the question...

Woman 1: The why is for me, that it'll give me an immediate insight on
who that person is. And you can cut through all the other stuff.
Jay: It'll challenge you to see life from a whole different perspective.
Thank you.

Woman 1: Absolutely.

Jay: Go ahead.

Woman 2: Hi, my name is Yvonne Greer; Baton is what's on all of your

sheets, but Greer's the name I use professionally. And I said, 'God must
have put me at that table with these wonderful people on purpose,'
because they're doing so many similar things. I have a company, Power
Zone; it's a fitness based business and I'm also a radio broadcaster, WLS
in Chicago. And just earlier today, my husband, who's here with me and is
my partner on the radio, had an insight just based on some of the things
that Mr. Tracy had to say about giving away services, because Power Zone
is not doing very well financially.

And I had this idea that we should have fitness parties, and bring people
out, and not to the health club, but to the community centre or a church
or wherever, and get them out of the traditional fitness atmosphere. And
we were struggling with how to get advertising and marketing to get
people to these parties. And his insights earlier today were, 'Well, have a
grass-roots effort.' You actually go to people's homes, have people come
in, and you do a mini-presentation. I also have a line of exercise videos,
and he said, 'Whoever hosts the party, let them get a percentage of
whatever exercise videos they sell after you're gone. But you just show
up, you talk for free, and then invite them to the party on the back-end.'

Jay: What's the lesson that everybody can take from your insight?

Woman 2: Don't be afraid to give it away.

Jay: Okay, good.

Woman 2: And as I was sitting here at this table, Tomaszo, who you heard
from earlier, is a personal trainer. He said he picked three people from his
neighbourhood who were obese, and for free, he trained them. He
consulted with them and with their doctors, and developed a program,
and it exponentially increased his business; and he only dealt with 3
people for nothing.

Jay: Thanks. I have a young man who does my cars. He comes to me, he's
from Peru. And he had no business and one day he was lamenting, and I
showed him how if he went in all the affluent neighbourhoods, knocked on
doors, was straightforward, offered to do the first wash no strings
attached; that he would build a great business, and now - he ain't big, but
he makes $5000 a month, and he's got two associates doing all the work
for him. He really does work. (Laughter)

Man 1: My name is Rick Wilslayer, I'm from the Aikido School of Self-
Defence in New York. The lesson that I got was tapping into the power of
why. Why we do things. And really emotionalizing and connecting with
that to use that to overcome the fear that might prevent action in
growing.

Jay: Good. I like that, thank you. Bob?

Man 2: Hi. Gentleman at my table said his outcome was to find 20 people
here that he could work with. Initially I thought that seemed quite
ruthless, and then I suddenly thought, 'My God, there is actually such a
wealth of people in this room that you can learn from and learn stuff.' And
the second thought was, 'Who else has my customers?' because he was
looking for people who had large databases of customers he could use.

Jay: Let me share with you a secret that you will realize by Monday night.
There are people that came here just to connect with you that don't even
know they're here for that reason. And there are people that you came
here to connect with that you don't even know you came for to meet. And
there will be people who have missing elements that you didn't even know
you needed or had.

And it will be remarkable, and there will be contacts, there will people who
have expertise, there will be resources, there will be not self-serving,
manipulative, diabolical, [unclear 9:38], just self-serving deals; they'll be
very equitable and very value-added and very wonderful networking; and
not just economical gain, but intellectual exchange or collaboration of
expertise, of skill sets, of experiences, of learning curves; but believe me,
this is the best chance you'll get, but once you learn this you'll be able to
go back and be able to master it all the time. One last question. Who do
you like in the fifth at Belmont?

(Laughter)

Just joking. Bob is a professional gambler, he's got a handicap in business

that he's very successful all throughout Europe.

Man 2: Yes.

Man 3:: Yeah, Frank Maddock, Recycled Dollars Marketing, it's Forest City,
North Carolina. I'm a start-up marketing company with an emphasis in
border transactions also. I think you'll be hearing about some barter over
the weekend. And the gentleman asked me a question at the table; he's
right. I've got two clients right now, one is a non-profit organization in New
York City, and the other one is a roofing company in Poughkeepsie, New
York. Last question, the gentleman asked me, 'Well, who's your target
market?' And at this particular point, I’ve got them essentially from
referrals, or old friends of mine, for that matter. But that's a question to
ask really; is what - to tighten up the target as much as possible, for that
matter.

Jay: Good, thank you.

Man 4: My name's Ned Baranovich, I’m with the Enlightened Millionaire

program. At our table, we have a number of people who are in transition.
But the insight that I got...

Jay: Is that just coincidentally, or did you all come together; the
transients; did you just sort of meet outside and attract each other?
(Laughter)

Man 4: It may be coincidence, but...

Jay: Or could it be karma?

Man 4: It could be karma.

Jay: Surreptitious. I mean, it's serendipitous.

Man 4: Serendipitous, right.

Jay: Or either.

Man 4: The princess of Serendip: there were three of them and they
serendipitously came together. So we serendipitously came together, and
the insight that I drew from that (Audio missing) useful, because they
have the point right now where - one lady says, 'I’ve got the money, I've
got the time, I'm looking for a new business interest.' And several other
people were in that same (Audio missing). The insight that I got is I took
your concept of leveraging, by going to your already existing customer
base, and saying, these people are leveraging by going to their already
existing, experiential base, and drawing on that.

So what they're learning is going to amplify them, as you would say,

geometrically. They're already smart, they've already arrived, they're
already high achievers, and they're taking it to the next level by coming
here to learn, and it's going to do a lot more for them than somebody who
didn't have anything to start with.

Jay: Great, that's great. Thank you. Who here loves taking plenty of notes
and is really good at it? Who can multi-task, who loves taking notes? Okay.
Raise your hands, keep your hands up. Okay, you, stand up, what is your
name? Ellen Patterson, you just become the resident secretary - not
treasure, just secretary of the event. I'm going to give you notes to keep
for me of things I want to make sure we get done before Monday night,
and you'll give them to Rick, and he'll make sure that we do them. And
one of them is; a lot of you are - you're not the multi - Brian said
millionaires; most of you probably are millionaires; probably a surprisingly
large number may have more wealth than I do, in this room, because you
put it into assets, rather than income streams like I do; but you probably
spend a lot of money, let's say, speculating on all kinds of other
businesses, and I'd like - I did it yesterday before I came here - a two hour
session with a group of investors trying to tell them what I would do if I
were they before I'd spend any money on any kind of investment, and if I
had a troubled investment then I'll try to give you, if time allows, a criteria
and a little bit of a template, so before you piss away money
unnecessarily, you could put them through a performance sort of a
criteria, a viability quotient; know the things to do.

For example, Brian was talking about selling. If I were a venture capitalist,
if I were an angel investor, I would never put money in any company that
didn't first invest massively in consultative selling. I don't sell it, Andy
Miller does, and Brian's got good stuff on it; but I would - because
quantitative selling will transform the performance and the success
probability of almost any organization. Minimum 20%, maximum maybe of
1000%, and everybody in the organization that has any public contact
should do it; but most people don't know about that, so make it a note and
I will make sure - and tell me your first name again one more time. Ellen
or Helen? I said Ellen didn't I? Why didn't you correct me? Are you afraid?
Come and go,'Hey! My name's Helen!' Helen will be our secretary. So
every time we have an insight, you give it to Rick, okay?

Alright, sir?

Man 5: Yeah, my name's Howard Hoffman, I'm a dentist, I do cosmetic

and sedation dentistry down in Miami.

Jay: Okay.

Man 5: One of the things I noticed at the table here, and I keep hearing
repeatedly, is everybody comes with a different agenda, everybody hears
everything differently, and everybody hopes to get something different
out of this. And the easiest way to find out what anybody wants is to just
ask, and say, 'What is it that you hope to get out of this, what are your
hopes and aspirations?' and in doing so, you're asking them what they
need to hear, what they want to hear, so that they can be sold, so that
they can convince themselves to do business with you.

Jay: You just gave the answer - were you on one of the dental calls we
did?

Man 5: Missed it.

Jay: We did them with - one of the dentists was saying how powerful it is;
he just asked his patients about what their outcome is, why they wanted -
what their result would be and what the problem is of not doing it, and
then he repeats it back to them very nobly, and it's like they're putty in his
hand, because he's listened, he's heard them, he’s acknowledged, he's
empathic.

Man 5: It’s a done deal.

Jay: Yeah. Pretty simple, pretty powerful. By the way, Fran said something
that I'd like - it's about one - I mean, I'm not humble but I'm also not really
arrogant like I used to be, but I 'm going to be very clinical about one thing
that I'm world-class at that I'm going to take a point of making clear to
you from the beginning. There's nobody, I think, better at understanding
complex things that are marketing-oriented and reducing it down to
simple, elegant simplicity, and sometimes I can reduce them to such
simplicity that something like that is so just matter of fact, you don't
realize how powerful it is.

What he just told you can translate to almost everything you do with your
prospects, with your team, with your family, with anyone you want to
ethically gain benevolent control of, to advance a qualitative and noble
agenda. It's very powerful, and about 90% of the things we'll cover are
very powerful, but they'll seem so simple that you won't write them down.
Remember what I said? Draw a line on the page; left hand is the generic,
literal one, the right hand is the real meat and what it means to you,
because you're probably definitely going to be exchanging your pad at
least temporarily with somebody, and trying to figure out what, making
heads or tails out of what they saw, that you didn't. Thank you.

Man 6: My name is Pat Solis, Jay, you might remember...

Jay: I know, you're a physician from Texas, you're in weight control. Have I
got a good memory?

Man 6: Yeah, very good.

Jay: Thank you.

Man 6: This is my fourth seminar, I wanted to share. The reason I came
up to the mike was - just wanted to tell you a little bit about what I've
gained out of the seminars. The first two seminars I came to were in 1994
and '95, to learn about my gynaecology practice. The USP that we
developed as a group; interestingly enough, the whole group participated
in the development of my USP.

Jay: It was a powerful dynamic, wasn't it.

Man 6: It was very dynamic. And then I came back a third time, I came
back for the work college. That's where Jay puts you up on the hot seat for
a couple of hours and all your marketing material and so forth...

Jay: Those were fun, weren't they?

Man 6: It was very, very exciting; very worthwhile. What I wanted to tell
you Jay, is to give you an update what happened. This was in the early fall
of 1999, went back and I'd already developed this company up to the sale
of it. I'd invented a new weight loss business, invented the new weight
loss program, and I was going to sell it to doctors across the country. And
Jay gave me a lot of ideas; we were going to distribute it through
pharmaceutical companies. I went back and Fen-Phen had their
malpractice situation, you know with Fen-Phen.

I put it on the back burner, and then I took a garden product that I
invented and basically had received four patents on. I'm in the process of
licensing this as we speak, Jay. And I wanted to show you an idea that I
picked up while I was here, but I had a law firm in Dallas who's
representing me. They're the second largest law firm in the United States.
They charge $500 an hour. The billing ended up - I paid them $30,000 in
legal fees in about a 4 month period.

And so I had enough money to sustain it for a period of time, but we had
not even gotten into heavy negotiations and they informed me that the
legal fees were going to be somewhere around $20,000 a month, with
hotel bills, airline flights.

Jay: What happened?

Man 6: So basically Jay, I thought about it and - basically just went ahead
and made them an offer of paying them twice their normal fee. They had
never done that before. They took it to the board and they accepted it.

Jay: It was contingent on what, on basically...?

Man 6: On basically, when we close out first deal, they get two X - twice
their normal fee.
Jay: What did that save you in cash flow?

Man 6: I would say in the last three months, I’ve saved probably maybe
$30,000.

Jay: And they're going to be motivated to get you an hell of an outcome

so you can write a check, huh [unclear 2:42].

Man 6: It is unbelievable; I just can't tell you how attentive they are right
now. (Laughter)

Jay: What's the lesson, Pat? What's the lesson?

Man 6: The lesson is joint ventures or host beneficiary; there are many
different permutations, and in this particular case, Jay, it's really an
unusual permutation because in this case it's not really - or I'm paying
them a profit; I guess I am in a way, but I'm really thrilled that I was able
to complete the project, hopefully, without having to spend any money.

Jay: That's great. Thanks a lot, it's good to have you back. Last two and
then we got to get to Mark.

Woman 3: Hi, Mitzy Hasslinger, Pioneer Spirit Enterprises. I have small

financial and marketing systems implementation company, and I was
startled today at how few people had implemented anything or taken
action from all of the material that you sent. I have a very small company,
and I've made probably a few thousand dollars over the next few months
from realizing a hidden asset, and as I watched what was going on this
morning, I saw how narrow Michael’s had been - they're great ones, but
they're narrow, and now Michael is, for this weekend, to be one of the five
percent of the people that come out of here that is a completely action-
oriented people - person, in that I continue to make those steps and
completely change my life.

Jay: Good. I'd like to have that goal be appropriated and impute that to
every one of you, because you can do it, you should do it, but it takes
action; and unfortunately many of us are comfortable enough or are -
Mark will maybe talk a little bit about it - you're not complacent, but I
don't think people know what it's like to perform, really, at optimum. It
feels so good.

Woman 3: Right.

Jay: It feels so good to connect, to contribute, to function, to think, to act,

to interact, it's just so good. Thank you. Last?
Man 7: Hi, my name is Chidakash, and I'm with Serenity Transformational
Tours, and what has really surfaced for me is a contradiction. It's become
quite clear - contradiction within myself, with something like this
Transformational Tour company. I've been in it, but I have an attitude
about business. I always have; I learned it in reaction to my dad, sorry
about that Jay. But that's where it came from, an attitude that business
isn't where I want to be; and yet I'm in it, so I'm not as fully in it as I
should be and could be; and being in something transformational, it's all
kind of new age stuff that I've been hiding out in for quite a long time.
What I'm really finding very exciting is that I have found that there is no
contradiction, as I look out to what I’ve heard in the last little while, and
what I heard around my table, between this sort of transformation and
business and new age. It all fits together really beautifully. What's just
happened at my table is that I've just received an invitation to get
involved more closely with Tom Masson, who's with Pro-Master's Golf
Training Centres; to promote my Transformational Tours. It quite blows me
away.

Jay: So what do you think the lesson - what's the lesson?

Man 7: The lesson for me is simply to just remove my limits. The limits
that I have are in my brain, and if I can just drop them, and open to
anything and any possibility, and all the people -all of you here, then the
possibilities are limitless.

Jay: Well, one of the things I'd like to end before we bring Mark on with, is
that we - for some reason, one of the really interesting - when I was
talking to Fran privately about insights in big corporations; well he started
talking about it but I didn't delve that deeply because I didn't think it was
relevant to that segment, but I probably should have. He said one of the
things he thought that big corporations had over entrepreneurs; that they
recognized what they didn't know and they were not afraid to ask and
solicit from all kinds of experts, and they understood advisory boards and
Boards of Directors, and they would spend sometimes too freely on
consultants, because they wanted to be the best they could in wherever
they were weak; and they wanted to be better than they were if they good
or great.

I think most entrepreneurs - where'd you guys come from, I swear there
was nobody up there before. We’re going to have to - you guys, don't no
more come up because we got to get Mark on, he's got a place he's got to
be. Most entrepreneurs think they have to be an island. They're afraid to
think - it lowers them to say, 'Hey, I'm struggling here. Hey, I don't
understand something,' or 'Here's my goal, I don't know how to get
there,' or 'Here's the goal and here's how I think I’m going to get there,'
or, ' Here's how I'm trying to get there,' or 'Here's the path I'm taking, is it
the best way? Have you got a better approach, what do you think?'

Realizing that we always have the right to discriminate. We can listen, we

can value it, we can examine, we can consider, we can reflect, we can
borrow freely elements, or reject them. Okay, thank you. Last two and
nobody else come up because I've got to stop after this. Sir?

Man 8: Yes, my name is Byron Nelson, of the Nelson Concentrator. I have

to tell you, Jay, that I've been attempting to lose weight, and if you
couldn't see me, I must be succeeding. (Laughter) Anyway, I want to talk a
little bit about the facility of giving something away to make your business
perform. What we sell is a machine for the recovery of fine gold. We, 20
years ago, it started in my carport with sampling done in the back yard,
and then eventually, a little larger, a little larger. Today, our lab takes in
samples and does work and charges for it, and is pretty well self-
supporting. And the machines themselves are known world-wide, and we
are the excepted authorities in that business.

And this is all from giving away the sampling effect in the beginning. And
something a little later side, I was recently - became unengaged, if you
will, and went to a dance and spotted a very beautiful lady get up to
dance, and she was having a little trouble on the floor with her partner,
and I thought, 'Oh boy, this guy can't dance.' So, make a long story short,
I worked up the courage to go ask her. Guess what? She couldn't dance a
step. Not a step.

And so a little later, I thought about this and I started watching my feet
while I was dancing. I went over, gave her my card, and said, 'Here, call
the cell number on that card; you want to learn to dance, I’ll teach you, no
strings attached.' I gave it away. Guess where I am today? (Laughter)

Man 9: My name is Joel Burrows, I'm marketing consultant; I'm part of

your Tuesday night class. One of the things that struck me when we were
sitting at the table, is just the power of talking with people. And in
particular, if you come to an event like this, where you're working with
other people that are very entrepreneurial, the power of talking with those
people. Somebody asked me how I got started. I just talked to some
people I thought had good products, and now I've got some clients lined
up, and I'm moving forward. And that was it, so...

[Inaudible 10:26 - 10:31]

Jay: Off, on? Sorry, I was talking over there. From this break forward, until
you get on your airplane or get in your car to go home, every break - and
you go take care of your bodily functions and make your phone calls, and
turn your phones back on, use the rest of the time to go up to five, ten, 20
people you don't know, tell them who you are, what you do, what's your
insight, what's your outcome; and every time you go through it - because
when we get done with lunch, I'm going to get into deep stuff; 25, 30 key
elements and you're going to do stuff with the table, and we're going to
start building on it, because we're ready now.

And share your insights, because that is the dynamic that'll make this the
richest - open up. This is a group of 650 people who are ready to basically
contribute, collaborate, respect your confidences, celebrate your
successes, commiserate; but not allow you to wallow in areas that you
have not been successful, and will share their insights, their experiences,
but only if you open up. If you stay with - if you go and you hang out with
your own people you came with at lunch, that's so shameful. If you find
three people you like right now and you spend all your time with them and
don't get a chance to commune with 30 or 40 other people; that'd be so
tragic.

Okay, Mark Victor Hansen, besides being another very good and very dear
friend of mine, is a remarkable man. He's dedicated - I don't have your bio
to read from, but he's dedicated his life to really moving, motivating and
inspiring, teaching, training, just…

Jay Abraham Mastermind Marketing 5

…transforming men and women in business, and in personal life, to see
and see so much more potential. He has written countless books, he's
done tape sets, he's probably best known today as the co-author of the
Chicken Soup for the Soul series, which has sold so far...?

Mark: 80 million.

Jay: And growing. How many different variations?

Mark: 61.

Jay: 61 variations. He and another friend, colleague, client of mine, Bob

Allen, just came out with a wonderful book called 'The One Minute
Millionaire.' It is on The New York Times as...?

Mark: Number one this Sunday.

Jay: Number one today - this Sunday coming up. (Applause and cheering)
Killer book, killer book. Mark is very graciously come down here just to
contribute to you; again, he's a dear friend, we have a lot of commonality.
We're both attention deficit, (laughter) which means we're extraordinarily
creative geniuses, right?

Mark: Correct.

Jay: And we forget and lose everything. Whatever you ask us to talk
about, don't expect it, because we'll do whatever we think is in your best
interests, and normally, we're insightful enough that we're correct, and if
we're not, you're stuck with it anyhow. Mark and I share the same
birthday, and we have many similar traits, and we both like very
conservative ties. (Laughter) And with that stated, Mark is going to come
here and spend an hour teaching you...what, Mark? I'll get out of your way
and get my papers outta here, first of all.

Mark: First of all, thank you Jay, thank you.

Jay: Thank you.

Mark: Give Jay a round of applause. (Applause) You know, I have paid to
come here, so it's nice to get it turned around. (Laughs) How many of you
read a Chicken Soup for the Soul book; could I see? Raise your hands. Oh
thank you. How many of you read a second helping? Third serving? We
still have a market. (Laughter)

Lady here in LA gets a brand new car, she's en route to work, has a
fender-bender. She's all distraught and all discontent. The guy said, 'Look,
lady, it's a minor accident, go in your glove compartment, pull out the
insurance papers, we'll take our notes and be on our way.' Goes in the
glove compartment, finds the insurance papers, and on the top is a little
yellow sticky from her husband. It says, 'Honey, in case of accident,
remember it's you I love and not the car.' All the women, go 'Awww.'
(Laughter) All the guys, go 'Yeah, right.' (Laughter).

We've done all those Chicken Soup books for different markets, and we
won't sell a book that sells less that 3 and half million, and Jay asked me
to talk to you about how to do that. And one of them's called Chicken
Soup for the Expectant Mother's Soul. I mean, in the world, there's 90
billion new-borns a year, so it's a great market. We've got a story about a
4 year old who's a thumb sucker. Parents have done everything; they've
wrapped it, coated it, tapped it, [unclear 2:58] combed it, and nothing
works. Right before they're off to church, Dad says, 'Boy, you keep sucking
your thumb, here's what's going to happen to you. Your stomach's going
to expand and it's going to explode.'

Sure enough he sits in a pew next to a woman who's 9 months pregnant.

(Laughter) All the way through the service he's looking at her askancely.
After the final 'Amen,' he walks up to her and says, 'I know what you've
been doing.' (Laughter)

With that, how many of you would like to write a best-selling book? Could I
see you raise your hands? Oh great. Everyone touch yourselves and say,
'I’m ready!' (Audience responds) Touch your neighbour’s should right and
left and say, 'I see you're ready.' (Audience complies, then laughs)

Now, one of the ways to sell books is obviously to do seminars, and we do

cartoons, so you can go to cartoons.com and find your own, and they
should be self-deprecating. This one says, 'Could we complain that you
need it? Number one, chicken soup is good for the flu. Number two, it's
nobody we know.' (Laughter) And if you really pay attention to Jay's
seminar, you're going to need this one, from our friend [3:53]. It says,
'Dear IRS, I 'd like to cancel my subscription, please remove my name
from your mailing list.' (Laughter)

Now, I start with that because some of you say, 'Well, I can't be funny.' Yes
you can, you just steal the good cartoons, but pay for them; that's
intellectual property if you want to do that. So if you ready to have a mega
best-seller, one more time say, 'I'm ready.' (Audience replies)

When we started, Jack and I got turned on - actually I don't know to say it -
134. 133 publishers - sorry there's two things. First of all, we went to New
York. 33 publishers all said, 'Hit the road, Jack.' I said, 'Look, it's okay if
you don't like him, but I'm a nice guy.' Then our agent fires us, then 134
publishers here at the - it was then Book Ex - it's now BEA: Book Expo of
America. By the way, it's back here in LA this spring, and if you're going to
come, I do a whole days' seminar in front of it on how to make every book
a best-seller, and this is just the tip of the iceberg.

We left a copy with two guys that owned Health Communication. And they
said, 'Well, we'll read it overnight,' and the next morning they said, 'Well,
we cried, and our soaked shirts, and it was really good, so we'll try it and
we'll publish 20,000 if you promise to buy all of them at 6 bucks each,'
which is exactly a Vanity Press, which I would not recommend. What were
you prepared to do? If it doesn't work, you've got to be prepared to self-
publish. Can you make a fortune self-publishing? The answer is Yes.
What's the answer; everyone thunder it. (Audience replies, 'Yes')

Yeah. There's lots of ways to do it. Whoops, let me get this clicked back so
we can keep moving. Here's the deal; write your book. Once you do a
great book, it's got to be an excellent book, what kind of book has it got to
be? Great and excellent. What's it got to be? (Audience replies). Excellent
and great. Then you're only 10% done. That's why I keep studying with
Jay, and yeah we do have the same birthday, and we go to each other's
birthday parties and we love each other's families and all that. And one of
my daughters wants to study marketing with Uncle Jay.

So anyhow, the point is, 90% of it is marketing, hustling and doing it.
Sorry, Mr. Mandel, now that you've been published, I'm afraid you have to
leave our writers group. (Laugher) You know a real best-seller takes a year
and a half. How long's it take to get to top? A year and a... (audience
replies, 'Half.) We hit two slides at once, but we started June 28th, 1993;
the book came out. We did all the buck-breaking behaviour, we did all the
normal marketing; we didn't do all the bypass marketing. And you've got
to have it hit in the first month. How fast you got to have it hit in? The
first...(audience replies 'Month.')

Because every book that goes in a bookstore today is a consignment

book. That means if it doesn't roll and you don't have velocity and
network marketing, they call it; momentum, that book gets to go kiss,
kiss, bye-bye. That's why you go into a bookstore every month and it rolls
over, and you say, 'Well, these authors; it's not fair that Michael Crichton
goes back to number one.' Yes it is, I love Michael Crichton and I read him;
but you know, or whoever. And we sold 80 million books because we hit
titles that they want. And we've hit some titles that people don't want,
and we've got to eat it lately, so you know, I'm telling you both sides of it.

Write a great book. Everyone say, 'I'm going to write a great book.'
(Audience complies). Now, the easy way is maybe write a five page
article; content-rich every day; and I know tomorrow when we're in the -
yeah tomorrow or night - Monday, Bob Allen's going to do a TV tele-
conference from Atlanta.. (Audio missing)

One minute, and from CNN studios, he's going to talk to you, and one of
the things that happens is that you write a great book and Bob; why I
bought that up; is that he says every word he writes is worth $20, so
every day he writes 1,000 words no matter what time he has to get up, so
he knows he's got 20 grand before he goes out; and it's that or exercise,
so you'll see in pictures... (Laughter) He skips exercise with me a lot.
Anyhow, make it as universal as possible or make it as specific as
possible. You can take over either one of those two markets. It works both
ways, but when I did this part of the slideshow, it was for Chicken; use a
panel of diverse readers.

When we interview the 101 best-selling authors, like Kenny Blanchard, and
Spencer Johnson, who wrote 'One Minute Millionaire,' and then he went on
to write a lot of other books more recently; 'Who Moved My Cheese,' for
Spence; is that both of them said, 'Look, feedback is a breakfast of
champions.' Everyone say that please. (Audience complies)

Everyone in marketing knows you test, test, test, test, test. You die behind
the scenes, not in front of it. You never want to die in the marketplace.
And when you're asking people about your titles, you never ask stupid
questions like everyone asks; 'Well, do you like this title?' 'Yes.' 'Are you
going to buy it, are you going to give me 20 bucks for it?' If they say no,
then don't do that title!

But I'm talking over a large number of people, and like when we did the
teenage book, our publisher said, 'You guys have blown it this time, they'll
never buy it. I've got teenagers that buy CD's, concert tickets, and
clothes.' Well, we sold 12 million of just Teen 1, and we've got four in that,
because you do both horizontal marketing; one through six, with Chicken
one, and then every book that works, and Mother's Soul; but then you also
go over vertical marketing, where we took over the women's market, the
mother's market. Right now we own the Christmas market. We got a brand
new little book out called 'Chicken Soup for the Christmas Soul - Kid's
Treasury.' Every book that sold, our partner is Salvation Army; they're
giving - we got the names of a million kids that have never had a book.

Well, I grew up in abject poverty; my parents - we had books in Danish,

because my parents were Danish. I though everyone went to the Danish
Brotherhood on Saturday night, and had friends like Torvill and Sven and
Una, and stuff like that; names you never heard. So you come up with a
great title, and here's some great titles: Who Moved My Cheese? How
many of you have read Cheese? Okay, can I see, raise your hands?

Spencer makes $2 million a month with that one book. He's a medical
doctor who went to Harvard; he’s a brilliant guy who I'd love to spend a
half hour talking about just him. Obviously, Chicken, One Minute Manager
did it. Think, Grow Rich; Napoleon Hill is about 60 million books. The
Prayer of Jabez in one year sells 11 million copies, by my buddy Dr. Bruce
Wilkinson. How many of you read Jabez? What happens is, it does what it
says I'm going to ask you to do. You've got to have instantaneous
behavioural change. Everyone say it please. (Audience complies)

When you read a Chicken book, it gives you one of seven effects. It gives
you - when I talk to 10,000 marines who say, 'We don't cry, but you made
our eyeballs sweaty.' (Laughter) You know? Or you get a lump in your
throat or a change in perspective, like the little kid said, 'Dear Mark and
Jack, I'm 10 years old and my name is Ryan Owen, I'm in the 4th grade. I
never bought a book, but every day in class my teacher reads a story to
us to calm us down, and I saved my allowance for 6 weeks and bought
your book and I went home and read a story to Mommy, and for the first
time ever, she cried. We had a heart-to-heart, soul-to-soul talk.'

Do we need more of those or less of those, everyone? (Audience replies

'More.') More. And Jabez does that; it gets you to believe some stuff you
may never believe. Fish teaches you how to do customer service at a
level, because their students are both Spence and Blanchard. Have giant
goals. We say we sell a million and half in a year and a half; we're going to
do a billion books by 2020 A.D. It doesn't cost anymore to have big goals,
and here's the goals that we started with, and we did a million three the
first year, and then five million of the original, and then - we get called up
by the guy who owns the Costco Price Club, Saul Price. He says, 'Look, you
guys, everyone thinks it's a cook book, and I want you to do a cookbook.' I
said, 'Saul, we don't do cookbooks.' He said, 'The first order is a quarter
million.' I said, 'Saul, I can do a cookbook.' It just - it got me real quick.

We're at 80 million books right now in 2002, and our goal is a million
books, but we had a kid that took a picture with me at the National
Speaker Association; Zig Zigler, this kid, Pete Walken and myself, and
writes me a letter and says, 'I'll show you how to sell a billion in a day.' Jeff
calls me back and says, 'Do you know the kid.' I said, 'I’m in the picture,
you saw that, but 30 seconds maybe I met him.' So I called him back and
for three hours he told me how to sell a billion in a day, doing payroll
deduction through every corporation. He's the number one guy in payroll
deduction. It's taken us two years to set it up, but it's what we teach in
One Minute Millionaire, right?

There's two ways to get rich, the long way and a short way. Which one do
you want, everyone? The...? (audience replies, 'Short way.') We want you
to do both. Right? But the long way is compound interest. A dollar a day,
66 years, 25 grand but at 10% is 2 million 750 and at 20% it's a billion
dollars. Everyone say 'a billion.' (Audience complies).

Just one dollar a day, if you get 20% like Warren Buffet, like 3rd, 5th bank
he has for the last 32 years, like the Gerard Group. There's a ton of us that
are making that kind of money. And you sit there - 'Well, I'm just going to
pee my pants and stay broke.' Well, that's a dumb idea. (Laughter) I teach
the best thing you can do for the poor is not be one of them. (Laughter)

My next door neighbour down in Newport Beach has the largest plumbing
[unclear 5:13]. On the side of his truck it says, 'A flush beats a full house.'
(Laughter) The list that you want to get people to buy from - are four lists
now. New York Times, Publishers' Weekly, USA Today. When we came out
with - on October 17th with One Minute Millionaire, we did affiliate groups,
and we mailed out 12 million emails in one day, and it started at Amazon,
which is the fourth one not listed here, I forgot to plug it in, but is at
87,000. By 10:00 we were 705; we melted down their system, and then
we went to number one, stayed there for the next 5 days. We decided to
do that again December 3rd, just to blow the rest of the books out of the
bookstore; because that's the new buying sigma, because Amazon's the
world's biggest retailer, and every teenager knows that's where you go.

And the point is, we did it again and screwed up their whole systems, and
- the other thing we did when we were on this book tour; we're in
headquarters where Amazon is. They've got more stealth there than when
I went to the Pentagon, after we did Chicken Soup for the American Soul.
It was amazing, the buildings are all covert and it takes a while to get -
you've got to carry a card in your pocket wrapped in your money that
says, 'I'm so happy.' Everyone say, 'I'm so happy.' (Audience complies)

But it's got to have your goal on it, and it's got to be signed by you and
whoever makes a difference. When Jack and I won the Book of the Year,
General Colin Powell was in the green room with us for breakfast; he says,
'How do you guys sell so many books?' I pull out my little thing, and Jack's
kicking me like my wife does under the table; 'You're going to show a four
star general that card?' I said, 'Well, that's what we used to sell 15 million
books a year, I think it's a pretty good idea.'

And you've got to look at it four times a day. Why? How many of you have
clutter in your lives? How many of you ever get off track? How many of
you procrastinate? How many of you got any messes going on, at any
level? Mentally, physically, financially, socially, spiritually, marketing? You
have this, and you look at it breakfast (Audio missing)

Because the last thought you pertrabate your brain cells with is when
you're going to get - I had a woman come up to me and say, 'Come on
Mark, tell the truth. Don't you ever get depressed?' And I said, 'Nope,
never.' And she said, 'Oh, how depressing.' (Laughter) If you ever need me
just come to Markvictorhansen.com, it's that easy.

Write a wall of a business plan. But do projections for your five years, ten
years and a hundred years. Richest guy in Japan was just with my buddy
Harvey McKay, How to Swim with Sharks; and he said 'Could I see your
business plan?' The guy showed him a 300 year business plan. He said to
the Japanese guy, 'How are you going to do that?' He said, 'Patience.'
(Laughter) You know? Invest 90% of your time marketing, selling, self-
promoting, advertising, hustling new business. There's always a way.
Everyone say, 'There's always a way.' (Audience does)
We came on this new book tour, everything went wrong. First of all, I had
sniper in Washington, screwed up all that. Then the election screwed up
all that. Then the Angels won the [unclear 00:56], the night we're here,
and screw up our audiences, because we're doing an infomercial. So
there's a lot of stuff that can get in your way. I want you to go to Book
Expo of America; the number is 800-673-0037, or it's
Bookexpoamerica.com. You know, there are 10,000 publishers there. Why
are there 10,000 publishers? Everyone can get published, that includes -
touch yourself, say, 'Me.' (Audience complies)

Why? Because Ten Speed Press ten years ago said desktop publishing is
going to make it, there's 78 million of us with racing bicycles; I'm a racing
bicycle aficionado; I've been racing since I was nine years old; the point is,
is that they made it because there was a market, there's a niche to grow
richer. Jay and I are even working on a book called 'Grow Rich in your
Niche,' which is a title that I worked and we've talked about at length. The
point is, go there - and it's right here in LA, and you're for three days - for
me the first time I went in, it was an intellectual orgasm, because anyone
who does anything has got to turn it into a book.

President got paid $10 million for a book he hasn't finished. (Laughs and
laughter from audience) He'll be there this year though, I think. And he's
doing a tell-all story in one room while his wife's doing a tell-all story in
another room, and Monica's in the third room, so I'm interested in hearing
that. (Laughter) Any of you find that utterly fascinating? Yeah, I do.
Anyhow...(laughs). Oh well, okay, I'll keep moving.

Selling, marketing and self-promoting is what it's all about. Be innovative,

do stuff that nobody else ever did. We're doing Chicken Soup for the
Grieving Soul; we pre-sold 6 million to all the funeral homes, cemeteries,
mortuaries, and crematoriums, before anyone's even seen the book. Why?
Because they trust us as a brand. When I read Steven Spielberg’s book, it
said he made $800 million on E.T. and made a billion and half on licensing.
I said, 'Jack, we're going to go into licensing.' He says, 'What do you know
about licensing?' I said, 'Nothing, but Bucky when I was in high school
said, 'Every system has an inside and an outside,' so let's find it; it's only a
20 year old system, I'll memorize it.' It does 135 billion a year, we've now
got 39 essentially number one products; all products bounce up and down,
but I mean, we've sold more calendars than anyone, last year we 897,000
compilation discs where we put together music with Ryan O'Record right
here, a couple of blocks from where we're being right now. And then I do
this centrefold with the words in it.
Do some stuff that never did it, and make it happen. Everyone say, 'I'm a
make it happen person.' I'm a...?(audience replies) This is what Jay talks
about 100% of the time is, are you actionable? And then the rule of seven;
you've got to do seven - hold up seven fingers. What have you got to do?
Seven marketing things, every day, no matter what. Don't go to sleep
until you do it. If you miss seven on Monday, how many have you got to
do on Tuesday? (Audience replies '14.') If you miss Monday and Tuesday,
where are you at on Wednesday? (Audience replies, unclear) You're in
deep doo-doo, right? Yeah.

WE did Chicken Soup for the Writers' Soul with Bud Gardner and I did the
last interview here with one of my heroes. The guy who started the
Tonight Show. His name is...? Not Johnny Carson, he was on it. (Unclear
responses) Not Parr. Steve Allen. Steve Allen writes the way I’m asking you
to write, just like I say you ought to multi-task, because you’re intrinsically
a multi-tasker. He had 28 tape recorders at his house, and he would run,
and he wrote songs like - little money makers, like 'Happy birthday to you;'
did you know that? I mean the guy just dictated, and he says, 'You never
have a mental block.' Isn't that good Tony? You just - if you hit something,
you go to the other project that you're hot on.

Now, the other thing; I'm flying back in Orange Country, and I'm a
neophyte on a computer basically, I want to be fast and efficient and grow
to an aficionado, and the guy next to me says, 'You're too slow, let me
show you the better way,' and I said, 'Show me.' I said, 'What do you do?'
He said, 'I'm the head of innovation at Microsoft.' I said, 'My boy, my boy.'
(Laughter)

Bill Gates created Power Point, which I hope all of you use to Power Point.
Picture your project, because your mind is 87% visual. He learned from
Walt Disney to story board everything, and that's what he created it for. I
got 58 projects going, which drives my wife and my team; most of whom
are here, I'll introduce them in a minute to you; nuts. I said, 'How many of
you guys work with Bill Gates?' He's got 1600 - that's one thousand six
hundred; different Power Points in they work on every day for three hours
with Ian Bomber and Nathan [unclear 4:51], and this guy, and seven other
people, and they got all of them. Why? Because you weren’t born
endowed, you were born over-endowed. And you go on, 'Oh no man, my
doctor, my teacher taught me I should have one thing at a time to do.'
They're so full of crap, they don't know what they're doing, and they're
broke, probably. I wouldn't listen to someone who doesn't have any
money.
Is Pointer talking to this thing? I don't know if he is or not. But he's the first
web-centric guy. He's the guy who - they hired him and our buddy, Dave
Berry; who's very funny; to sell all the stuff for IBM when they did Dragon
Master and all that. He makes about $7 million a year doing a niche that
none of you have ever even thought of. He does parachutes and every
year he parachutes with George Bush senior, and you see him, and I've
had him at some of my seminars where we have it on the screen that he
and George Bush are parachuting down; then he runs into side bar and
unzips his thing, and starts - unzips his coat, not his pants.

Anyhow, [unclear 5:40]. Be your own - or hire a PR person if you can; guys
like Rick Freshman, [unclear] is good, Bob Newman's good, Ariel Ford's
good. There's a lot of good ones but you want - if you're going to do
books, do somebody in the book industry; they're going to cost you about
$5,000 a month, but make them actionable. In other words, if you're going
to do radio drive time, which works from - here in this Coast, 3am to 6am,
basically, because people go to work pissed. And when they go to work
disenfranchised, they want to get out of what they're doing and do
something else. So it's the zone of our heart touching books or our money-
making books. And then, phone interviews.

When we interviewed Scott Peck, he said, 'Look, I've been 12 years

number one on The New York Times Bestseller List.' So we waited out his
name, put ours where it was, but he says, 'I've never missed a radio
interview. Now, some days I do 20 so I don't have to do them for 20 days,
but that's how I made $40 million with one little book.;

Everyone take your finger, point it at your temples, go, 'Hmm, that's
interesting.' (Audience does) Now, those records are being broken by the
second richest woman in England's name - she's a writer, her name is...
(inaudible reply from audience) Yeah after the Queen; here's a woman
who's got such galloping chutzpah that what does she do? She says,
'Coca-Cola, if you want to do this thing -' here's a lady who wrote her book
at McDonald's for God's sakes. Right? And here's a woman who says, 'You
can give me $160 million and we'll start putting it in our movies.' So can
you learn a lot? The answer is yes. Can you study this? Yes.

Writers, I think are tremendously interesting. Be on magazines. Here's one

of the magazine's I’m currently on, and we have the owner in it. This is
called Personal Branding Magazine. Peter Montoya stand up. Give this
man a round of applause. (Applause) We're going to pass this around so
you can look at it. Peter's had myself on the cover, Wyan on the cover,
Steadman Graham, Oprah's boyfriend, on the cover; does a lot of them.
He's going to one with Jay. Take that, pick that, pass it around.
You need to be on covers. At Christmas time you need to be on a dozen
covers. You say, 'Well, there's not that many.' There's 14,000 magazines;
there’s 18,000 newsletters. If you can't do it, it's because you haven't
done anything.

Not me; I’m afraid to call somebody else how to do it. They've got to put
somebody on the cover, why not you? And have fun doing this thing.
Right? Make sure you give a toll-free number. Now, the number that made
200 million the first year came out was 800-FLOWERS. It's called a vanity
number. Why? The average husband goes home, and if you want to know
how important an anniversary or birthday is, try missing one. (Laughter)
It's called cut off for two weeks, gang. Duh - my little teenage daughter
would go 'Duh.' Right?

Ours is 800-SOUPBOOK. When we did some radio interviews, we had to

say that three or four times, and we'd get 58 calls in the next few minutes.
It's amazing what can happen. You've got to make it easy for the client.
When you're selling books though, you've got to do it - the way we did it is
all our stories are three pages or less. And what we said it, 'Did you read
page 23?' Because it's a paragraph. I hear you say, 'How important's the
story?' When we're trying to sell - the guy who does America’s Funniest
Home Videos, Vin [unclear 8:32] on ourselves; we're there for two hours,
he'd tell us, 'Reality TV is what's hit now, and you guys are out of the
zone.'

Then his partner, Lloyd Winthrop’s, says, 'Last night my school teacher
wife came home with that little book;' this is five years ago now; 'And read
me one story. Can I tell you the story? Little old man is sitting on a bus on
a country road, and it's bouncing up and down, but he's carrying two
dozen red roses. Across the aisle is a demure 17 year old girl, beautiful
blonde, who keeps looking askancely at the flowers. After a few minutes
he arrives at his spot, he walks over to her, lays the flowers in her lap and
says, 'I was going to give them to my wife. But I think she'd like you to
have them.' Little girl starts crying uncontrollably and watches as the old
man shuffle-foots off the bus. As the bus takes off, he watches as he walks
into the cemetery.'

People read the book at bookstores; when no-one came to my book

signings, which why would they come? No-one ever heard of Chicken
Soup, right? It's Jewish [unclear 9:25] and all that, but it didn't register
right away. But then they would read it and they'd go, 'Oh I like this.' And
then our book became a handle-on book, which was our goal. So you've
got to have something - the equivalence, if you've got it, is a movie trailer.
Right? Trailers are now at the front-end of the movie, and you get to watch
them for 20 minutes before the movie starts.

Do free reports in the periodicals, journals, newsletters, but always include

your name and phone-number so they can get to you. Like, if you want to
go to my website, we download free - a thing called Idea Tithing. I was the
spokesperson the American Red Cross four years ago; they're out of blood,
I was with William Shatner, Liza Gibbons; and I said, 'Look, chiropractors
and I have been friends - or 60,000 of them, I'll do - how many DC's I've
got in here? Any chiropractors? Got three or four, five. Okay, so we sent
out a letter and said, 'Look, doc, I want you to call 800-GIVELIFE, I want
you to adjust a hundred patients free because you and I have been friends
for 20 years. A lot of you made millions because of me.' Because I did all
the seminal tapes on - when we finished Chicken Soup, both Jack and I are
upside down - about $140,000; we'd invested everything and we didn't
have any money, and I'd been working with chiropractors, so I'd do certain
tapes, you know, 'How to do a Million Dollar Practice,' because I’d met all
the guys and ladies, and 'How to do a Paediatric Practice,' or 'How to get
the Right Chiropractic Assistant,' and all that.

Anyhow, so I sent it out to all the docs; we had 30,000 of them bring in
100 patients; we went up to 300,000 pints of blood in one week. All
because you ask. Because you've to A-S-K to G-E-T, but every one of you
can do that; because if you'll be charitable towards somebody you need to
do business with, there's no limit to what you can do. Befriend the
gatekeepers; there's 33 of them in the book business. I'll just give you
one.

Ingram used to be the seminal distributor of books. They did it to

everybody. We call YSG, who was running it before they tried to get
bought by BN - B&N, and we said, 'We'll buy breakfast for all your
telemarketers,' because everyone calls up and says, 'I want three of this,
six of this,' and I'm in Moose Jaw, Canada; and then they said, 'Well,
what's hot?' and they said, 'Ohh. Mark and Jack were just here with
Chicken Soup for the Golfers' Soul; they hugged me and they kissed me
and they signed it. (Sniffs) Their story is so good, can I tell you the story?'
And then they say, 'Well, we'll take 20 of that,' and it was great, and we
went up 17 points on USA Today the next day.

Because gatekeepers can do it. Enrol other speakers. When we went to

the National Speaker Association, we did a show and tell; we said, 'We'll
give you our One Minute Millionaire free; we got a thousand of them, take
a free book,' and then we said, 'We'll do a telephone call with all of you
and teach you how to do it.' And now for the whole month of December,
they're talking about our book. Like I doubt Brian Tracy mentioned it today
because I was coming, but I'm going to show him in a minute, and stuff
like that. You can get incredible results if you ask.

When you're doing the book signings, request an ad budget. Do stuffers,

get magazines, create commotion. When nobody came to the biggest
bookstore in Canada, I bought balloons and I broke them on the crystal
like this, and then I started taking pictures of me - anybody walking down
the hall, if you walk down the hall, Doctor, you and I can get a picture.
Then I say, 'By the way, did you see this book?' Whatever it takes to get it
done.

Befriend the bookstore owners, get pictures of them. Today, you’ve got to
carry your digital camera, and a smal camera - S-M-A-L, one L; camera is
$109, take 284 pictures, you can carry it in your pocket, it's the size of a
postage stamp. Get pictures and then say, 'Can I email those back to
you?' And you write it 'I like you,' and then you say, 'Are you going to give
me front promotion?' You'll be the only author that does stuff like that.
Create a videotape. If you go into any of the bookstores right now, Hulk
Hogan has a videotape. He says, 'I'm going to wrestle with you if you don't
buy my book.' Well, it's an interesting little idea, right?

Have your publisher buy the - now this - the publisher has to do, because
this is expensive real estate. A book store today is just a piece of real
estate, just like a grocery store is a piece of real estate that you put
groceries in. And what you want is the front of the store when they walk
in; the window, the aisle or the end aisle is where the people buy, because
they bump into your book. And then obviously you've got to have a good
cover and all that.

There's two kinds of stores. There's book stores; B&N, Books A Million, all
that stuff, media players; then there's club stores. Club stores now outsell
book stores. Why? Because it costs more or it costs...? (Audience replies
'Less')

Duh. Right? BJ's; there's a lot of them, and there's one company,
Advanced Marketing, that sells all that stuff. Be creative. I told you I had
the chiropractors sell on the book, and I was doing Chicken Soup for the
Chiropractor; so we got Chicken Soup for the Dental Soul. How many
dentists have I got in here? Right. You give your - I know that you're a
special surgeon, I heard when you stood up, so you're disqualified, but
only - he'll tell you my numbers are right; only half the people in America
go to a dentist, am I right Doc? That doesn't work as far as I'm concerned.
Does everyone need good dentistry? What's the answer? (Audience
replies 'Yes')
It adds 10 years to your life; all that kind of stuff. So the dentistry - we've
increased dentistry by 10%. And as a result, I met the guy who created
dental floss; he's a billionaire with a piece of string. Why aren't you rich?
(Laughter) Duh. Is there anybody here who hasn't had a piece of string in
their life, I guess? Create events with hoopla’s. Well we did - we tithed on
every book, which I recommend to you; we teach it in One Minute
Millionaire, if you're not into it - and you don't have to do it to your Church,
you can do it to your philanthropy cause or your creation; but when we
decided to do it in LA, we went to Union Rescue Mission; we fed 10,000 in
LA and Turkey Day was the cliché I wrote with Jack, and we were on the
front page of USA Today. Got bigger promotions than anyone else.

You can do all kinds of cool stuff. Identify a charity, like I said, and then
you get to put their emblem on it. Red Cross has a million five hundred
thousand volunteers at centres right up to number 1. You know, because
they expose it from inside, and they got the e-list of every veteran in
America. So when we did Veterans' Soul, who did we partner with again;
sent it to the top? There's our books, and we did it all in a decade.

Now, some of you are going to be told, 'Well, you can only promote a book
in 90 days.' In 90 days, you can't make it a bestseller. I said it takes how
long? A year and a...? (Audience replies, 'Half.') But the bookstores will tell
you that, and the publishers will tell you that. That's why right now to sell
a million books; we're going to be on a decade-long plan. And if you want
to help us, we want help. And not only do I do the books, but we also do
these seminars. I do seminars; we've got Mary McKay, who's sitting right
here somewhere, where are you? Stand up Mary, just so they see you.
Give her a round of applause. (Applause) She does all my seminars.

Then Bob and I did a seminar called the 'One Minute Millionaire Seminar,'
which we're selling on the infomercial, and then for those of you that are
millionaires that want to go towards being a billionaire, and also be
charitable, philanthropic; in the zone of like a Paul Newman, we have my
dear friend Pat Burns who runs a millionaire's summit. Give her a round of
applause of you would please, (applause) and talk to her about that if
you're interested.

Royalties; for a starting author, you get 6-10%, and they're going to want
two books, and the average advance is 12 grand, and you don't get paid
any more until you recoup the advance. If you're an established author,
you get 20%. Now, you've got to make sure you've got a good intellectual
property attorney. Do we have any intellectual property attorneys in here?
It's the only kind you want to be negotiating this, because this is a
slippery slope. This is the same as the movie business, where you see
Eddie Murphy and Art Buchwald make - movies make 120 million or -
when I won the Horatio Alger Award, my classmate, one of them - one of
the ten of us, is Tom Selleck, and he paid for a movie called Three Men
and a...? {Audience replies, 'Baby.') And never got paid one penny.

120 million it made, and he didn't get paid a penny. Duh. 'No, I can do it
myself, I don't need no lawyer.' Yeah, bend over. Okay, so it's real easy.
Now, Jay told me to tell you the truth, so if that offends any of you, write
Jay. He doesn't get enough mail. Mega best-selling authors like Stephen
King and that get 50% of the deal, and today you can do joint-venture
deals that are a little even better than that. What am I doing now? Sell the
book first, then write it. Sell the book first, then write it. Just like when I
started the seminar business 28 years ago after I went bankrupt. My guy
taught me, sell the seminar and then write it. So I went and sold in little
insurance offices and then I went back and stayed up all night, freaking
out, 'How am I going to put this together?' Seminar products, service or
license.

Do you think Bob and I wrote - I'll show you - we're going to show you how
to do it. I always begin with the end. What do you begin with? The...
(Audience replies, 'End') Start at the end. We said, 'Look, we're going to
write a kick-ass movie that outdoes Titanic, outdoes Men in Black. We've
got the first movie that we figured out how to market to get 10 million
butts in seats day one. Bob sat on the airplane and rolled me any idea,
and I said, 'Cool.' We went to New York - now, it is Random House that
bought us - 13 publishers said (makes noise), 'can't happen.' this little
that's holding our butterfly. Ariel Ford was getting married, she had Kenny
[unclear 17:43] to sing at her wedding, they had a little tetrahedron under
every chair, we - when Kenny was done singing we released the
butterflies, and I said, 'Wow.'

Because in sales, you all know the five steps - I don't know what Brian
taught today, but - he probably taught prospect, present, and follow-up. I
teach it a little different: prospect, present and close. But the trip is - Brian
and I are great friends - the trip is, is that we released butterflies. Well, the
Chairman of the Time Warner's diving under his table; we've got it all on
videotape, because we bought a videotape and we bought a little (laughs)
cell cameras, and they're going, 'Aah! Insects.' And it was great fun, so it
worked a little different than we thought. (Laughter)

The lady with the blonde hair, in the middle is the world's greatest agent;
sold 600 million of Danielle Steels' books; John Grisham, John Grey, and
now our One Minute Millionaire. And when Random House said, 'Well,
we've give you a quarter million.' I say, my little teenage daughter's got
this, everyone....(Audience says, 'Duh') Duh. How much have you got to
get? A million. Bob and I are rich. Bucky taught me, get your feature days
paid for so you can afford to do projects. What can you afford to do?
(Audience replies, 'Projects.')

Projects. You can sit here and you say, - pick anything, right? I'm helping
inspire the planting of 18 billion trees around the planet, right? So if you're
alive, plant three trees, I ask all of you. We're going to clean up the ocean
with Wieland; we're doing Chicken Soup for the Ocean Lovers' Soul, we're
[unclear 18:56] ten miles of the Great Wall of China, right before the 2008
Olympics. We're going to re - just like I'm forcing the planet, we're
restocking the sea with cage fishing like I just saw in Ireland, and it cleans
it up. And just - there's such cool things to do if you put together a team
and got a dream.

Now, we're on our book tour and that's what our cover looks like. Now,
when we sat with the world's best book cover designer, which we wrote in
the contract that we had to have; the guy did Grisham and my other hero,
Crichton, and all that. He gave us a garbage cover, and we had a little
'Come to Jesus' meeting, and we said, 'Look, it's our cover, and we don't
want a cover that looks like a business book.' Because you have to have
an element of distinction, right? So, have you ever seen a business book
look like that? (Audience says, 'No.') No, and you haven't seen anything
that bold and it stands out, and we said, 'It’s got to be face out on every
cover,' so we just want to do it.

Why? What is the deal? Whoops. What's our vision? Our vision is this. I’m
talking about thinking big, right? You've got to sell a million books pre-pub.
Which, by the way, we almost pulled that off. Ten million books post-
publication, because we need ten million to find a million people to play
with us and work hard enough, be actionable enough, to use Jay's word; to
get a best-selling series. Never do something without sequelling and
prequeling it. Does that make sense?

'No, man, George Lucas does that, duh.' You know? Blockbuster Movie-s, it
should be; I should pluralize; it created a million millionaires. How many of
you want to create an extra million because of our book? Raise your
hands. How many of you are willing to give away a million if you make an
extra million? I rest my case; we're going to have a million times a million,
that’s a trillion dollars. I don't care what your philanthropy cause - Church,
temple, [unclear 20:31] is, you did that. And we're going to create billions,
actually trillions.

Now, you start with the end in mind, so what do you do? You write up
what's going to happen before it happens. Publishers' Weekly, January 1st,
notice it's 2003; who wrote the copy? Bob and Mark. (Laughter) So its New
York Times tops of fiction and non-fiction list; we're right now number one,
but we want to be on both lists. How do you do that? Volume. (Laughs).
You know, you can do - and by the way, just like - they say, 'Have they
given you any crap about that?' The same thing they did when I wrote
Chicken. They said, 'You can't be in the best-seller list, you're a multi-
authored book.' I said, 'Well, you've got the Bible there, and that's got 66
authors.' (Laughter)

What does Jay teach you? You've got to out-think them, out-market them,
out-serve them, out-sell them, out-work them, out-manoeuvre them;
because they're going to try to sink your ship. Every good idea is born
drowning. Which is why you don't let your lawyer in at the front-end of
your deals. (Laughter) Anyhow. One Minute Millionaire - and if any
attorneys are in here, my little brother is a JD, and I love JD's. Sometimes.
When they're on my side.

Here's the marketing plan that we did, because you've got to have a kick-
ass marketing plan. You're all in marketing; what did Jay just teach you
that Peter Drucker says? Who, if you ever see Peter, he sucks on his pipes
before he ever answers a question, and the times up. It's interesting to
watch Peter talk. (Inhales) Good think he came along before dope. Could
you imagine him sitting in front - (Inhales again, audience laughs)

Here's what Jay told me to do. He says, 'Look, why don't you bring the
best marketing minds together?' So I said, 'Jay, that is like a way cool
idea,' so we scheduled the day, January 30th a year ago, and Jay says, 'I'll
be there,' and then all of a sudden Jay wasn't there; but we bought
everybody else and Bob's on the left and I'm on the right. And this is - we
had Joe [unclear 22:22], we had Joe Sugarman, who makes $160 million a
year with Blue Blockers; owns over a billion dollars’ worth of Malian real
estate; and he told us all kinds of cool stuff to do. And then Brian Tracy
said - oops, I just hit black for one second. I missed it. He said, 'Well, we
ought to use Occam’s Razor.' And I said, 'God that's a great idea, Brian.'
And I hit Bob; 'Let's do that. (Whispers) What's Occam’s Razor?' (Laughter)
Did he teach you Occam’s Razor today? Do it the best, easiest, fastest
way. I said, 'Now, there's a clear idea. What is that?' He said, 'Sell one guy
a million books.' I said,'Pffft. Brian, that's so good, why don't you do it?' He
said, 'I didn't think I could.' I said, 'Well, I didn’t either.'

But we had one guy who was my best student, Jimmy Griffin, who 20
years ago hired me as a consultant; every Saturday, I spent time with, we
took him for a hundred to a half million, into a million, and then he's now
the highest running guy in the life insurance business; just sold George
Soros the biggest policy in history: $200 million. So I said, 'I eat at the
Harvard Club regularly with Sandy Wahl, I'll get him to do it.' Looks like
that Sandy, now that he's out of the doo-doo of the last couple weeks, he
paid off that 5 million and all that, so it looks like things are going to float
for him again. Where did I put that little changer?

So he says he wants to do it, and it looks like he wants to take a million.

WE sold a hundred thousand to you, Saul, and a hundred thousand here
and there. We showed this marketing plan to the little group that we
bought together. We had Melanie Griffith, Antonio Banderas's wife, in the
room, and all kinds of cool people. She is a great marketer, has a great
company.

When I showed that to Don King when he came to one of our seminars,
you know, he's the guy with - Patti LaBelle in male form. (Laughter)
Anyhow, Don King says, 'You know, opportunity is the greatest charity,
Mark,' and he said, 'And if I knew how to market as good as you do, I'd be
a billionaire.' He says, 'Hell, I'm only worth $360 million.' (Laughs) I go,
'You're doing fine, you're doing fine.' (Laughter)

The goal is that we want to pre-sell ten million tickets to the movie
theatres before they get there. Are we going to do it? What's the answer?
(Audience says, 'Yes.') Yeah, because we figured out how. Why? What do I
teach in my tapes? That the size of your question determines the size of
your result. If you ask anaemic, dumb, weak questions; 'How do I make
$30,000 a year?' You'll figure it out, it's easier to ask - make $3 million a
year, $10 million. Hollywood Reporter; when we wrote that up too, and it's
so cool - I'm out of time almost so I’m racing through this, and I apologize,
but - our agent is over at Cannes Film Festival. When they give a million,
those guys in the mailroom sell those scripts.

This guy follows her all the way to Amsterdam; she calls us up and says.
'You've got to talk to this guy.' Guy calls up and said - we ended up putting
it in a book because it was such a cool thing; because the right hand side
is fiction; he says, 'You guys are my heroes. Twenty years ago I read Bob
Allen's [unclear 25:00]. I started flipping single families, then multi-units,
then strip malls then shopping centres.' And he said, 'I've done so well,
two years ago God said, 'Sell everything. You're worth $2 billion, make the
most - 15 most make a difference movies.'' He said 'I’ve got to do you
guys' movie.'

And right now he's just finished Anthony Hopkins - has done the new
Napoleon movie which comes out in January; he's just finished Howard
Hughes' movie with Jim Carrey. And so he came sat in our audience when
we were doing a book tour here a couple of nights ago, and he said,
'Whoa, you guys have gotten really solid on this stuff. I got to take this
book.' And he brings over a little guy that owns a company called
Dreams...something or other. And Spielberg reads it and says, 'Whoa, this
has also got to be reality TV; we need to have Who Wants to be A
Millionaire meets Survivor, and we're going to call in Millionaire Search.'
So we're getting to do that too, and we're going to - because our fastest
millionaire so far has been four months, nine days, right?

This husband and wife got fired, so they bought ten properties and
became millionaires, and just - cool stuff. So, can you write stuff and make
it come true? The answer is...(Audience replies, 'Yes.') See, the intangible
creates a tangible. That's what he's teaching you. But somebody would
say, 'Well, I go to the bank and show me your financials.' Irrelevant. Here's
your financials - point to you self and say, 'Here's my financials.'
(Audience does) You know, it's not out there.

The book should be a lead generating device. This is what Bob Allen
taught his teacher Steve Covey, his mentor. And then Covey went out and
sold 12 million books, turned it into $2 billion. That seems like a pretty
good transaction. Always think - how do you always want to think?
(Audience replies, unclear). Good. That's it, and now Jay gets to come up
here and interview me. Pretty exciting. (Applause) Go ahead, give me a
round of applause for being crazy enough to bring me here. Thank you.

Okay, you're not on yet?

Jay: I apologize, they're rehearsing a band next door and I went down
[unclear 27:03] and said, 'Hey, what are you guys doing? Stop that. We
got an expert over here.' So Mark, okay. So, we got people in here who
probably never thought in their life about writing a book for bookstores, or
trying to be a best-selling author. Man, they're business owners. I have a
belief system that says that every one of you should have a book or a
book in process, even if you...

Mark: Or even write a story for Chicken Soup, if you want, because that
gives you what he's going to say next, I think. Make it credibility.

Jay: Well, it gives you credibility. It gives you negotiability, gives you pre-
emptibility, gives you distinction. If everyone's trying to get a job in a
certain category, and you're the only one that's written one or two books
on it, who would you hire, all things being equal? If there are five choices
of a supplier or a vendor, and one wrote a book, even if he or she
published it themselves initially, or co-published it with a reputable
publisher; even if they didn't make a dime, just for legitimacy, first round.
Is that stupid, or is that very powerful? Is it? So, let's ask two questions.
I'm going to switch from book publishing, but you just gave a really
interesting overview on how you made a book a best-seller for traditional
trade distribution; trade meaning bookstores.

Let's take the elements that you just went through, let's totally not apply
it to a book. Let's apply everything you just said to somebody's business
or life. Could you just take us...

Mark: Exactly the same.

Jay: So tell them.

Mark: Yes. So first of all, you've got to have a great title, like we said. So
whatever your business is, it's got to be a great title, like that's what I said
800-FLOWERS is a super title because a husband goes home and goes,
'Duh.' If I don't have flowers there, you can call and hey charge you four
times as much to have them there within one hour. That's where they
make all that profit. And the same with 800-MATTRESSES, once the guy
got it, right? Because you need a bed, or whatever. The same - so all the
principles - 80% of all businesses are the same, it's only the distinctions...

Jay: Because they didn't take the kind of notes that they probably should
be because they weren't thinking; I’m trying to not put you on the spot; go
through the eight or ten things, because you whisked through your Power
Point fast, and just say - what are they? Go back, what are they? If you
can't remember you can go back to your Power Point...

Mark: Okay, we said first of all you've got to have a great title, you've got
to have a great book, or great product, or great service, or great - if you're
selling your personality...

Jay: OR great articulation of what it is; a great USP.

Mark: Yeah, great - by the way, you've got to have three parts to that. He
teaches USP; unique selling proposition, and ours is, change the whole
world one straw at a time, or create one million millionaires; or in the old
days when I was selling seminars, I'd sit next to this gentleman who's a
good friend, and he'd say, 'What do you do?' and I'd say, 'I'll triple your
income, double your time off.' Then I'd shut up and he's got a 'now I own
this conversation,' for the next three hours on the flight, and I'd sell him
whatever I'm going to sell him.

So you've got have a USP but you've also got to have an ESP. This is what
Victoria's Secret teaches. And the other day we're on TV with Victoria's
Secret models, nationally with FOX. We get there at six, we walk into the
green room and all the women are naked, and I go, 'Ooh, I think we're in
the wrong room, but boy was that interesting!' (Laughter) So the guy
introduced us, on a national show which gets replayed all day long, and
says, 'Today we've got the millionaires - going to teach you how to make a
million in a minute, and after them we've got Victoria's Secret girls doing
Christmas lingerie.' He said, 'This is going to be our most up-lifting show
ever.' (Laughter) It has a longer story but I better leave it alone.
(Laughter).

Okay, so. We had one single guy travelling with us that was hitting on all
three...

Jay: Okay, so, the point, the point. Because I want to keep you on point.
We're two attention deficit guys having a conversation. This is fun.

Mark: The point, so great product, great service. Next you've got to have
feedback, which is the breakfast of champions. (Laughs)

Jay: So, so. Keep on point. Damn.

Mark: You've got to have a good distributor, you've also got to have a
team. Everyone take your index fingers like this quickly please. Put it
together and say, 'One and one equals eleven.' (Audience does) In a
Christian model, Christ never did the miracle water into wine until he had
12 disciples. What it means and what we did in one minute, is we said,
'Look, you’ve got to have four kinds of people,' which I didn't always know.
You've got to have a creative; that's my job. You've got to have an
advancer; that's Bob Allen's job and Jack Canfield's job. He is a creative,
by the way. You've got to have a refiner, that's usually your analyser; your
lawyer, your doctor. You got to have him or her. then you've got to have
the executer, and in our case it's the publisher, whether is Health
Communication or Random House.

Jay: Okay, next. Okay, switch, we're playing a different game.

Mark: Good.

Jay: Prior to being the co-author of probably the most successful book
other than the Bible, Mark spent his life studying a number of very, very
interesting elements that could be tragic, and it'd be sacrilege for him to
leave and not share. He understands three things: your capability of
performing at a much higher level; how quickly and how importantly it is
to change your paradigm; how you can't accomplish anything if you're not
focused on external contribution; and the power, the inordinate and
remarkable and amazingly compound performance capability that
masterminding and networking has. And if you'll take all four of those
understandings, shake them up and turn them into a tapestry of
comment, that would be very good.

Mark: Okay. (Laughter) Well, I think that this is our year. Everyone say
yes. (Audience does) Is there anyone who doesn't believe this is your
year? This is also going to be your decade, because most of you are going
to do more in this decade than ever before, because the computer
leverages us. I mean, a Pentium 4 now can process in and out and all at
the same time. What that does is that externalizes your mind for the first
time in history. And what you're going to be able to do during this meeting
is power mastermind and network with the people you need, and now that
you know you need four kinds of people, you're going to figure out how
am I weak, how am I unique. How do I put this together, how do I package
that? Because whoever you need is in this room. Everyone say that - we'll
do it in the first person. Whoever I need is in this room. Everyone?
(Audience says it)

I don't know who you need, and by the way, you don't need me. You've
got plenty of - you've got a lot of firepower. I’ve got plenty of friends in
here, I'm saying hi to some of you. You've even got the world's greatest
artist, Spar over there, who's got almost a million dollars’ worth of artwork
on the wall. Would you give him a round of applause? (Applause) Spar
[unclear 32:58] over there, our good friend.

What Jay teaches is you want to variegate it among friendships, because

you don’t know who can pull something off. And some of the charitable
stuff - charitable stuff gets you to everybody you need, because at the
charities; especially if you live here in LA or New York, or one of the big
cities; you get with everyone.

Jay: What's even better is small cities. Because everyone is the same.

Mark: You know the who's who are running them. Exactly correct. But
here in this city...

Jay: How many different charitable, philanthropic activities are you

involved in? And how many have gotten you - you've benevolently gotten
in for the right reason, but how many have produced pretty impressive
relationships?

Mark: Incredible, that's where I was going to go. 37 different charities

we've done in our book. Some we've done the same again and again,
because I love the American Red Cross. Last year we did the [unclear
33:48] and I was a spokesperson with Melanie Griffith, and I just adore her.
But the one I was going to tell you about is, when I was 16, I started a rock
group, because the Beatles came on Ed Sullivan; I called my best little
Danish buddy and I said, 'We're starting it,' and we did it, and two weeks
later we were making $17 an hour. And then I grow richer and richer; this
is what I told Jay. I said, we went to the YMCA's and they're empty on
Friday and Saturday night, so I said, 'Well, look, we'll do a joint venture. I
get 50 you get 50; we charge $5.' 'You're a 17 year old kid, first name? Are
you going to pay 5 buck to come and see all the women that are about
your age? You get paid 10.' Right, okay. (Laughter)

We were filling the place to 1,000 people a night. My older brothers were
bouncers and they said, 'Well, some nights we have 2,000 in different
YMCA's.' I live in the Gold Coast area, and while I was poor, there was
plenty of money in Lake Forrest and all those great places outside of
Chicago. And I was sometime was walking away with $5,000 a night; I had
way more than enough to go to college; I had a car and a motorcycle, and
all kinds of cool stuff. And I wanted to meet Paul McCartney, it was one of
my goals for a long time, and then at Doctor Landmine, Paul was just here
and Jay Leno was there, and I got to meet Paul McCartney, and I told him,
and it was really touching. For 30 or 40 years, I wanted to meet this guy,
and I finally got to spend real prime time with him.

And the, because we're the icon in books, Jay Leno does a joke about
Chicken almost weekly, and the last one was we found Bin Laden's diary
that said, 'Get up at five, don't shower, don't shave; go to the bookstore
and buy Chicken Soup for the Cold-Hearted Bastard's Soul.' (Laughter)

Jay: Okay. Let me take another question.

Mark: I'm as fractal as he is, so...

Jay: Like I said, two attention deficit guys trying to have a contributing
conversation, is a joke. It's a joke. But the intent is - the saying is if good
intentions ruled the world we'd both be Alexander the Great. So, talk
about the power of building a mastermind. But first, do you understand
what I've tried to put together for three days for these people?

Mark: Yep, yep.

Jay: So give them some advice on - I mean, you've been through one or
two of my programs. What should they do to get the most out of this and
then to take it to much higher levels when they get home?

Mark: Decide what your major - you know, Napoleon Hill would say - on
his deathbed, after he'd interviewed all the 500 and spent time with my
hero Andrew Carnegie, and I want you to go Andrew Carnegie's house in
New York, it's 91st and 5th Avenue; it'll blow your mind because the guy
with a third-grade education became essentially the first billionaire - the
first great philanthropist - started the whole philanthropic deal and the
first line in his house, and the freeze that he wrote is, 'No-one can get rich
without enriching all others.' Everyone go (whistles). (Audience does)

Anyhow, Napoleon Hill said two things. 'If you've got it, you've got it.
You've got to have your definite major purpose; what's your goal, what's
your mantra, what's your purpose? If you don't have a goal, get a goal; if
you don't have a purpose, get a purpose.' Number two is, you've got to
have a dream team to pull off your scheme, and deliver your theme, so
you have multiple streams of income.' It's that simple.

Jay: The next question...

Mark: I think it's that simple.

Jay: Next question. You've interviewed, and you have addressed tens,
hundreds of thousands of entrepreneurial groups. What are the biggest
recurring mistake, problem, or oversight that they're guilty of, and what's
the easiest, fastest, quickest, tangible way - from your vantage point -
that they can change that and get a better effect?

Mark: Okay, two. Number one is that you think you've got to have money
to make money; and it's you times the system equals unlimited results,
and you're in the envelope here, the cocoon, to get that system. And
number two is that you've got to have a team, because a team; you can
pull off miracles. Nobody can pull off miracles, and we got Mike Fry here,
who when we wrote on the right hand side that we wanted this little,
always together toy to take our little heroin out of the dog roll part of life,
and...

Jay: Right hand side of the book; he's like me, he thinks you know what
he's talking about.

Mark: Oh. Good. Here's one of the books, and here's one of my other
partners, Tom Painter. I didn't know he was here. Here's what the book
looks like. It was 800 pages and we edited it down, but on the right hand
side is the logical side; the 101 millionaire a-ha's. And on the left hand
side - Richard, could you turn this down just a hair, please? On the right
hand side, we've got a butterfly; the caterpillar comes into a butterfly and
then it flies off the page; you become a self-actualizing person. But in our
proposed movie, we're expecting to have Julia Roberts be the lead there;
Erin Brockovich; and she loses everything, her husband dies, her mentor
comes in as my Maya Angelou, her evil nemesis is going to be hopefully
played by Anthony Hopkins, who says, 'You couldn't make a million in a
million years.' And Maya Angelou, who is the - if you ever get a chance to
hear her, walk across cracked glass. This woman was raped at seven
years old, told her mother, the next day she has her - the guy's got his
head kicked in on the front porch; he does an auditorium on speech for
the next seven years. Her grandmother says, 'Girl, if you like poetry like
you says you likes poetry, poetry ain't poetry until you talks it.' And now
she is the poet laureate of the world, as far as I'm concerned. She is
profound, prolific; I've been on her PBS show, she's a Horatio Alger winner,
she's Oprah Winfrey's mentor. Nobody makes without a mentor, gang.

So that's be the third thing you'd have to have, is a mentor. But this just
teaches you, you've got to put together teams that have deliverable
responses that you know, that they've already proven themselves. Doesn't
mean you have to, it means you've got to get on a high performance team
to get it delivered.

Jay: Two more questions. Okay. You and I have been friends for a while.

Mark: Twenty years, I'd guess.

Jay: And, what do you think is the biggest lesson - the thing I’ve learned
from you is to think at a much higher level, have very finite goals, and
have a plan working backwards to get that. What have you learned from
me that maybe I'm not - and I'm not trying to grandize me, I'm trying to
see an insight that I don't see, that I can have pre-emptively shared in
case I miss it. And then I got one more question.

Mark: He said that was the last. (Laughter)

Jay: No I said there were two, didn't I?

Mark: He is the best [unclear 39:28] on the planet. (Laughter)

Jay: I like that word.

Mark: That's something that has the [unclear 39:33] the right word at the
right time in the right place to get the right result, right here and right...?
(Audience says, 'Now.') This guy is the best word merchant in the
Godfather of long copy, and I've really learned that and I’ve tried to
imitate him until I can emulate him, and that's why we have books that
we've got to edit back down to 400 pages, which fries the publisher.

Jay: What's the answer? (Laughter)

Mark: That was the answer.

Jay: So what's the application...

Mark: What was your question again? (Laughs and laughter from
audience)

Jay: What’s something that you think that I teach that I don't know I
teach, that they can pick up on ,that maybe on their own they won't see?
And maybe I don't see?

Mark: Just that you hang out with the finest minds in the planet on a full-
time basis.

Jay: And they ask a lot of questions. They ask a lot of questions.

Mark: By the way, there's nobody more laser beam than Jay. And he has
been very kind; in like one minute, I bet you you've given us three days of
investment of your time, and shared your good thinking.

Jay: You reciprocated [unclear 40:21]. But - okay, lastly, and then you can
go to your next impact - he's impacting people all day, and he's very
gracious to come down here/ He's on a book tour, and you're going to be
in Atlanta on Monday, because your partner Bob, unbeknownst to you, is
going to do a surprise video, if we can get the connection right for about
15 minutes, and you be able to wave and say hi too, if you're there with
him.

What's the one, overriding insight and application coefficient that you
want to have left people with? You're going to leave in a minute, you're
going to drive back down the Boulevard and go on to your next
endeavour, and these people who you may or may not ever see in your
life, are going to go back, and they're going to do something. And you
have a chance to hopefully implicitly have accomplished that by what you
did - but you could explicitly accomplish it. And if you leave with a hopeful
wish they got at least 'blank,' and that they will do minimally, 'blank,' with
it. What are those two blanks?

Mark: I really believe what Oprah says is correct; is if you journal every
day and you ought to journal in color. And when she was doing The Color
Purple, she was sitting next to Steven Spielberg and he's writing up
DreamWorks; she copies it into her journal with his permission, changes
her name: Oprah, to Harpo, and obviously you read in Fortune Magazine,
she became the first female billionaire; and now she's doing a company
just like Paul Newman, to create the first legacy. She's always tithed, but
now she's going to create a Newman Zone, that's going to be able to do
billions. She's going to create the biggest cosmetics company, literally,
and do it globally from the first day, so I think you gotta journal.
And number two is you've got to absorb books. This guy will give you a
book list that just doesn't quit. And I read - I don't know how many of them
will read all the books that you listed. I think back then there were 400
and I bought a lot but didn't...

Jay: My publisher was mad. He said, 'Won't you give 12?' And I said, 'I did
a service to people.' I mean, it depends. There's a list of different books
for a lot of different - by the way, you do have to grow or die. You've got to
be able to - and you need a way to compactly, really grasp a lot of
information. I'm doing - I'm involved with Marshall and Edwin in their book,
and they owe us a service; and I think you've got to be connected to so
many other ways of harvesting, harnessing and digesting, and really
compressing knowledge, because you need it.

I mean the what knowledge is doubling the body of information,

knowledge that you have the opportunity and the necessity to
comprehend, master, and really incorporate, is by doubling or tripling
every nine months or so.

Mark: Whatever.

Jay: Scary. Okay, so, your parting thought to them is...?

Mark: Read and journal.

Jay: Okay, good.

Mark: Or journal and read; either way.

Jay: Okay. I have only one more thing to say. Originally, when we knew
that Mark was going to be here, we were going to urge you if you thought
about - see, I like the mind-set elements in the book because it stretches
your mind. Was going to encourage you to go out and get a copy. We
thought, 'Oh what the hell,' so we bought you all a copy....

Mark: Give Jay a round of applause. Please, he bought all of you a copy.
(Applause and cheering)

Jay: It's too burdensome to try to bring them all in here and distribute it;
we'll give everybody a [unclear 43:33], so on the way out you can pick it
up at the counter. And I want to thank you for coming and giving to us so
freely. You're gracious. (Applause)

Mark: Thank you.

Jay: Thank you.

Mark: Thank you, thank you, mwah, thank you.

Jay: When you get back, we'll talk about birthday, but if we don't talk
soon, we won't have time for birthday parties.

Mark: Yeah.

Jay: I'm so lucky to have friends like Mark, who will give themselves, and
I've got a lot of them, very kind to do that. You're a wonderful man. We're
going to stop for lunch. (Cheering) Okay, but as I said, if for three days in
your life - so you don't get mad at me. I’m not trying to do deprivation, I’m
not trying to be a power monger; I don't think in your life, you're going to
have a chance to be inculcated by this fear, and the expanse of the
perspectives, minds, that I've been able to organize, and I'm not just
talking about the brilliant experts, I’m talking about the brilliant
contributors in yourself. And for three days and nights, if you're strained a
little bit, and a little tired, a little bit uncomfortable, then go with it,
because it will pay dividends compounds forever.

When we come back for about a half an hour, a colleague of mine is going
to set up the 12 criteria, or the 12 key core competencies you gotta work
on, and then I'm going to bring Mac Ross, my colleague, up and we're
going to work through 25 key elements to really out-market your
competition. We're going to go through Abraham 101, we're going to get
you soluably entrenched, and do a lot of work around the table, and we're
going to have a lot of fun. And by the end of the evening - where's Andy?
Andy Miller are you here?

Andy: Yeah, I’m here.

Jay: By the end of the evening, they're going to have a good fundamental
understanding of consultative selling in a very broad sense, and you'll try
to get some interaction, right?

Andy: Yep.

Jay: But we're going to have fun. Trust me, don't come up to me and say,
'Are we going to talk about such and such?' We're going to talk about
everything and anything that is relevant for you, if you take responsibility
for it. If you don't we won't. Does that make sense? How? Because I’m
going to cover all the things that I know, and then you're going to say,
'What about this?' and one of three things are going to happen. I'll either
have a cool answer for you from my experience. Or I won't be [unclear
45:47]. I'll plump out of 650 people of which 19 are experts of the highest
magnitude that I know, and about 30 other ones are experts coming to
build their own practices. We'll get answers from them, and then we'll go
to the own group after that. Do you understand that?
You can't lose unless you don't contribute. You'll give yourself a great
outcome if you play the game, to collaboratively contribute. Okay, what
time, Rick; an hour and 15 minutes? I'd like an hour and 15 minutes. The
food's out there, those of you on a meal plan. Those of you who aren't, I
think that you should consider it. Be back here at 4:15. 4:15, thanks guys.

How was it? Good?

Jay Abraham Mastermind Marketing 6

(General chatter in the background)

Man 1: ...double the number of sales [unclear 00:07]. This price includes
50 of the Fortune 500 companies. [unclear], a tycoon, just a really great
guy also, he's really fun to listen to, and I promise you you're perspective
will be forever transformed. So with that, I’d like you to give it up for...Chet
Holmes. (Applause)

Chet: Thank you. Thanks bud. My mike on? Is my mike on? No it's not. You
guys hear me? Okay, does anybody know the worst time to go on when
you're a speaker. (Audience shouts, 'After lunch.') Thank you. These guys
get food coma, and I have to come on here and try to keep you awake.

So I'm going to start with you all standing up, please. Fact is, that 90% of
the energy that goes to the brain is generated by movement of the spine.
So I'd like you to literally twist your spine around. What you're doing right
now, is you're actually pumping cerebral fluid into the brain. We've got
some chiropractors in here, you guys back me up, right? Okay, stretch to
your left. To your right. See, I'm doing the opposite, just to make it - I'm
trying to confuse you. Back, forward. Okay, now stay standing, I’ve got a
little experiment for you. So this is the sure-fire way to make sure you
don't fall asleep on me while I’m talking.

Okay, so this session is called Zero to a Hundred Million. Just keep

standing. And - if this doesn't work - we're going to talk about how you go
to a hundred million dollars, and even if that's not important to you, like
you don't want to get to a hundred million dollars; there's going to be
some lessons here that every entrepreneur needs to learn in order to
make their company run really well. And I know we had some people over
here complaining that they couldn't see the screen over here. Don't worry
about it, I know we put it on this plasma screen here, but I will say
everything that's on the screens. If you can't see it, don't fret over it.

Okay, so. Here's a little quiz. How many people here are in companies of
a million dollars or more - keep standing, everybody else, under a million
dollars, sit down. Okay, so that's amazing. That's probably only about less
than half the room. Alright, how many people are in companies...five
million dollars and up, keep standing. Everybody else under five million,
sit down. Okay. So that's practically like 8%.

And then how many people are in companies ten million dollars or more,
keep standing. Everybody else sit down.

Woman 1: Does it have to be your own company, or you represent that

company?

Chet: It has to be your own company, yes. The owner of the company,
keep standing. Oh, I just had a bunch of people sit down. (Laughter)
There's one guy here with 15 employees, - company with ten million
dollars or more in sales. Alright, so sit down. I’m going to have you stand
up again in a few minutes. Let me just tell you the facts. 85% of
companies in America will never reach a million dollars. Carl, can we have
that door permanently shut, please? Thank you.

So 85% of you will never reach a million dollars, and in fact, only 95% - I'm
sorry, only 5% will reach $5 million, and only 2% will ever get to $10
million. So 98% of all companies in America are small business, and
they're under $10 million in sales. Only 1 in 25 will survive 10 years or
longer. So now I'd like those of you who are the company owner, if you've
been in business for 10 years or longer in the same company, stand up.

Wow. That's an anomaly, and it says a lot for Jay and the kind of
companies he attracts. Okay, have a seat. So, my question to you is,
what's the difference? Why do some companies get to $10 million and
other companies never get past $1 million? It's not that people start off
saying, 'I'm only going to grow to 200,000.' A lot of people start off with
much bigger goals, and we're going to establish that in a few minutes. So
in most cases, it’s not the product; meaning that -1967, a hamburger joint
opens, and it's called Joe's Hamburger Joint; and we go back 30 years
later, and it's still Joe's Hamburger Joint. 1967, another hamburger joint
opens and we go back 30 years later, and it's McDonald's.

Now, my question to you is, is the hamburger made at McDonald's really

that much different? (Laughter) We're talking like $40 billion a year,
versus $300,000 a year, for Joe's Hamburger Stand. What is the deal
here? So what it turns out to be, is - I'm just upstaging myself here - is it's
really the skills or the learning curve of the entrepreneur. In other words,
what you bring to the table is what's going to make the difference of how
far you can really go. It is generally not the idea, because someone else
will start with one idea.
I was corrected by somebody recently; I kept telling them the Tom Watson
story, about how he built IBM, and somebody wrote me in an email, and
said, 'Oh, by the way, did you know that Tom Watson was famous for
saying, 'Computers will never work,'' or something like that, because he
actually has data-processing - started with some simple thing, anyway.
But he had the foresight, and the vision, and the leadership, and the
judgement and all those other things that it took to try and turn what
could have been Joe's Stationary Store, into IBM.

Okay, so it is the skills of the entrepreneur that makes a difference. So my

question to you is, what kind of person grows a company to a million? Just,
what kind of person does it take, because I’m going to tell you in a
minute, what kind of person it takes. Just get a company from nothing to a
million, because 85% of companies in America won't ever get there. And
then to get to five million, that's a different person, different skills; you've
got to think differently, and I'm going to tell it to you. You're going to be
clear, you're going to believe me, you're going to know I’m right.

And then 10 million is quantum leap from a million. I mean, you're talking
about $1 million a year and then going to $1 million a month. What kind of
a person, what kind of changes do you, as the entrepreneur, have to make
in order to have that happen in your company? Okay, and then a hundred
million - because this is called Zero to a Hundred Million - or a billion,
right? And I say, skyscraper, anyone?

So, now, let's ask another very important question, and we'll get some
reality check here. How many of you in the room - now let's take you back
to when you started the company. Not what your feelings are now,
because we've got a lot of people who are in business ten years and
you're - ten years can beat anybody down, and can change your
perception, and you give up on a lot of stuff. So I want to know, when you
started your company, how many people in the room had the desire to
take the company to at least a million dollars, please stand up. When you
started your company, did you want to grow it to at least a million dollars,
stand up.

So that's almost everybody, right? Because we've got a lot - will the
employees of companies who want to go beyond a million dollars, stand
up? Because I just don't want to have any deception here. Alright, so that
means that almost every company in the room here, at least wanted to
grow to a million dollars, right? So there are some of you in the room who
don't want to grow to a million dollars, keep standing please. Because this
keeps you awake after lunch; this is deliberately planned, just to make
sure you guys aren't going to fall asleep on me, and I will have you stand
all through this...no I'm kidding.

But, now, the question becomes, how many of you wanted to grow to five
million? Keep standing. When you first started the company, the goal was
you're going to grow to at least five million or more. Ten million or more.
So still like 90% of the room - saying this for people who aren't going to
see this on tape, who aren't going to see, they can hear it. It's like 90% of
the room wanted to get to ten million. Okay, have a seat. So why haven't
you? What's it take? Not trying to embarrass anyone, I'm trying to give
you the tools that you're going to need to get there. Real practical stuff.

Alright, one million is easy. It says your workload is - it shows a guy totally
overworked here. One million is easy - well, I say not exactly, because
what it takes to build a company to a million dollars; anyone with passion,
drive and hard work can build a company to a million dollars working half
days. Can anybody tell me what a half day is? That's right, if 24 hours is a
full day, what's a half day?

Right? So, I'm telling you - because I've seen a lot of companies that are
utterly and totally dysfunctional, and when I'm finished here, you're going
to know exactly what I mean by dysfunctional. I've seen a lot of
companies that are completely dysfunctional, and just the owner is just so
passionate and he's got so much drive, and he works so hard, he's just
dragged that company to a million dollars on the pure sweat of his back.
And you might get to $2 million by doing the same thing, but I guarantee
you, you will not get to $5 million, and you sure as heck will not get to $10
million just on passion and hard work.

So, it should be nice to know that you're not going to have to work ten
times harder, if you really want to still go to ten million, like some of you
people kept standing to tell you me you want to do. Because you can't
work ten times harder, can you? Not if you're working half days now.
There's only another 12 hours in the day. So, clearly the owner working
half days to do a million, can't possibly work ten times harder to get to
$10 million. So the point is, it should be a great relief to you to know
you're only going to have to work smarter, not harder. Right, and I want to
try and give you that.

So what do you need to reach ten million and beyond? I'm going to tell
you in the next five, six slides. And when I tell you , you will hear what I
say, you will understand it intellectually - come on, got to point right at
this thing - you will agree with all the principles, you will know that it's the
thing you should do, and you will still not do it. (Laughter) Okay, this is
what I call reverse psychology. It's like when your kids were little, you used
to be able to say, 'I bet you can't get me a drink of water.' 'Oh yes I can,'
and they'd run off and get you a drink of water, and now they're 14 and
they go, 'Yeah, you're right, I can't help you out there.' (Laughter)Doesn’t
work at all anymore.

So why won't you do it? This is more reverse psychology. Well, because
here's the key guys. Here's what it takes to get to ten million and then
beyond. It's pig-headed discipline and keeping your eye on the ball. Now,
I'm going to take exception with Brian Tracy's comment, where he said,
'Working on the business is a bunch of crap, all you got to do is just sell,
sell, sell, sell.' Well, I've got a lot of clients that sell, sell, sell, sell, sell
really well, and the company is nothing but problems. And it's because no-
one's stopping to work on the business. So, the question really is, to work
on the business, but what should you be working on? And that's where
people get stuck. They don't really know what to work on, so you just
come to these events, and you get tons of ideas; you're not really sure
where to go with all of it, and so what I'd like to do is kind of give you a
blueprint in the next half hour, that I have here, and help you get there.

Well, first is that you want to work on being proactive instead of reactive;
and it's kind of obvious, but I love what Fran Tarkenton said; he thinks the
80/20 rule is now the 95/5% rule. And so 95% of your time is probably
spent doing things that yield very little results, working in the business
and if you're lucky, 5% is on things advancing the business and moving
the business forward. Okay?

So there's different needs at different levels of growth, but the bottom line
is you definitely need to work on the business, and I’m going to give you
some really clear examples, and I’m going to make it real easy for you.
And the key - if I could get this thing to move forward - is what I call the
'three P's.' So this is interesting, because the first time I unveiled this
concept; zero to a hundred million; and I have a cassette program coming
out [unclear 4:23] Bill Conan, called Zero to a Hundred Million, where I
take this much further than the half hour we're going to here today; but
the first time I was exposed to it, I was running a bunch of trade shows for
Charlie Munger, and - if you don't know who he is, he's Warren Buffett's
partner, they started Berkshire-Hathaway when it was $9 million, and
today it's $90 billion, or something; and Charlie is the co-chairman, and I,
stupid kid that I was, 28 years old; got a job working for this guy. I had no
idea who he was, but it was a fantastic opportunity, because you go to
Charlie Munger, a billionaire, with an idea, and he'd say, 'You think you
can do a good job at that?' And I'd go, 'Yes. I do,' and he'd go, 'Well, go
ahead.'
Started trade shows, bought magazines; it was so much fun, oh God, I had
a ball. But I learned a lot, and one of the things I did at one of the trade
shows is put on this conference where we analyzed the kinds of people
who grew companies. And I got this epiphany. At the time, I was running
nine different divisions; I was so busy, I was working 12 hours a day at the
office and then go home to do three or four hours a day; worked every
single weekend. I remember going on vacation in Hawaii, and getting an
average of 15 to 16 faxes a day. This is my vacation, you know? And some
of you know exactly what I'm saying.

And then I got this epiphany, and I realized that everything that had any
kind of impact in the company had to start and end with me because I had
not established what the three P's are, and it says the most successful
companies constantly focus on the three P's, and they are: Planning,
Policies, and Procedures. Now how many people here own PEQ? Oh we've
got a good number of you in the room. So you guys know exactly what I’m
talking about, but I’m going to put a new spin on it for you; and I know
some of you are guilty of still not doing stuff at PEQ, so I hope this is
impactful repetition being the mother of skill. Because I go deep on this in
our PEQ program, but planning policies and procedures; when you work -
I've had 50 Fortune 500 clients, and they have tons of planning sessions
for everyone.

They have quarterly planning, they have annual planning, they have
monthly planning, they have policies for everything. There's nothing - it's
like in your company - how many people have sales people? So I'll pick on
you just for a minute. Microphone? You took my mike, Rick. How many
sales people do you have? 20 sales people? [inaudible 6:51] gentleman,
mike.

Okay, what's the policy for follow-up? How many times are they supposed
to follow-up with a prospect who says no? He's got a policy for that. Your
mike doesn't work? (Laughs) So you actually have seven follow-up
procedures for a customer who says no? And they're strictly adhered to in
the organization?

Man 1: No. (Laughter)

Chet: (Laughs) Okay, how many other people - just wait a second - how
many other people with sales people - first of all, how many people with
sales people, raise your hands. High, come on, so we can see them. And
then, where you have seven, or even three standardized policies for
following up on a customer who says no. Keep your hand up if you do. Like
I person - 2 people, three, four, and a PEQ over here, I know.
Okay, and then what's the policy on follow-up after the customer buys? Is
it up to the sales person or do you have procedures in place for that? This
guy is good. This guy is good. Okay, let's pick somebody else. (Laughter)
Thanks, thanks. No, that's good, that's okay.

The point is, most companies don't have policies for that and it's funny; a
sales person will come up to you and go, 'What's our policy on if they say
no, how many more times should we try?' And most entrepreneurs will
look at them and go, 'I don't really know. I don't really have an answer for
that.' And so what I try to do with companies is systematize everything
and - here's the learning curve. Here's exactly how I got to this. I was top
producer every place I ever worked. The last sales job I had, I was out
selling the next five sales people, all put together, and I couldn't
understand why they didn't hire more guys like me. Right? Why don't they
just hire more guys who love to cold call in the morning. How many people
here love to cold call in the morning? How many people here are in sales?
Everybody should raise their hands.

Almost everybody raised their hands when I say how many people love
sales, and three people raised their hands when I say how many people
love to cold call in the morning. You know why? It takes a warped
psychological profile, no offense intended, so you and I are the two in the
room who have that warped psychological profile. But it is a unique
psychological profile that really loves to cold call in the morning. So what I
did is, I got this job working for Charlie Munger, and I tried to hire nothing
but sales super stars. I was determined; I said, 'You know what, when I get
in a position of authority, I’m going to hire nothing but guys who love to
sell.' So I hired what I thought were great sales people; all you guys who
hire sales people, you know exactly what I’m talking about. How many
superstars are there in the world? And how hard are they to find? Really
hard to find.

So I actually developed amazing techniques in that area. You PEQ guys,

you know exactly what I'm talking about. But the point is, then I started to
- so if I wanted them to try 12 times to get an appointment, because the
average sales person actually statistically will give up after only two
rejections.

So, what's your policy for how many rejections they should face before
they give up? And if you don't have a policy there, then you're running
like, Joe's Hamburger Joint, not like McDonald's, because McDonald's have
got policies for everything. You know what I’m saying? Morgan Stanley has
policies for everything. But if you don't have policies and procedures for
each area where you want some competency in your company, then
you're not ever going to have a great company, and you sure as heck
can't grow to 10 million and beyond. And I’ve got clients who get stuck.

Now, I only work with Fortune 500 clients, prior to meeting Jay, and I've 50
of them, so I've had some great success; million dollar fees, to go in there
and help them. And Jay says to me, 'Well, you know -' and it is frustrating
too, working with a Fortune 500 company, because if I make a suggestion
at Wells Fargo, it's like a year before anything happens with that. And the
layers and the things; and now working with smaller companies with this
high-flying deal that Jay's come up with, I can have like an immediate
impact.

Got a company, six weeks [unclear 00:58], we were like doubling their
sales. And I'll tell you the exact story tomorrow; how we did it, and every
one of you in the room will be able to do it, and you'll be able to apply the
combination of my skills and Jay's skills for yourselves.

So, sort of like Jay says, 'What's a forensic reconstruction -' forensic person
reconstructs the crime and tries to find out how it happened; what's a
forensic reconstruction to see how many situations require your input,
where you could apply the 3 P's. So because every area of your company
you need to do this - and I’m going to explain this really well in a minute
here. Okay, the more you utilize the three P's, the better the company will
run without you; every McDonald's runs with the same quality control. You
can go to the one in Harlem, or in Kentucky, or in Beverly Hills; you're
going to get the same exact hamburger, and the same exact French fries.
I'd like to see any of you do that. That's a real great accomplishment.

So here's a great true story; and there's a lot of lessons for you to learn
about this. Carpet cleaning company comes to us; one of the largest in the
country, and that's not saying much for carpet cleaning companies
because most carpet cleaning companies are too guys in a truck, This
guys' got 40 trucks, or whatever it is. And he comes to us and he says, 'I
have 30,000 customers, and I want you and Jay to help me get 60,000
customers.' So Jay starts on him; he says, 'Well, how often do those
customers buy from you?' 'They only buy about once every three years.'
See, he also does rug cleaning too. And he says, 'You ever try to get them
to buy more often?' 'Well, yeah, probably, send them coupons, discounts,'
'Do they ever buy more often?' 'No, not really. About once every three
years, no matter what you do.'

So Jay comes up with this idea; it's called the Gold Service. And instead of
trying to sell them after the fact, what he said is, let's get them when they
call in and sell them on a service to buy more frequently. Now that just
sounds real logical, right? Now, that's Jay's gift; he comes up with those
ideas; when you hear me go, 'Yeah, that's a great idea.' And so we get in
there and - now, my particular approach is I'm very research oriented; I
like to know everything about the company and the situation; you PEQ
guys know exactly what I'm talking about; I go deep. So I hire a researcher
and we do some studies, and we find out that your carpets have a
dramatic impact on the health of your home; as a matter of fact, the
environmental protection agency even studied the impact of professional
cleaning - I can't believe this, but it was like one of those 'Oh my God - '
you know, they've actually studied - because your carpets capture dust,
pollen, bacteria, dust mites, their faeces and the bacteria that feeds on it;
so it's all in your carpets, and what occurs is that - that's good that your
carpets capture that, because it's like a big health filter, but after about
six months, it gets saturated.

So you've seen these professional cleaners; they come in with this hot
steam cleaning, you know (makes a noise) and it just melts everything;
kills all the bacteria and everything in your carpets. Well, with that little 60
second education that I just gave you , four out of 10 people are signing
up for the Gold Service. And I'll show you in a minute what it did for his
business; it's profound, because - do the math. You have 30,000
customers buying once every three years, instead of - now, 30,000
customers buying six times every three years. What is that going to do for
your company? Okay? So you could see the guy's hands trembling with
Jay laying this out and me saying, 'Yeah, we'll do this.'

So then we started - oh, and then the other thing we do is we find out, in
fact, they have a lot of other services they only mention when the client
asks for it. And the way I found out is I'm listening; they tape calls for us
so we could hear what the sales people were doing; and here's this 78
year old woman, and the sales rep knows I'm listening, right? Or knows I
will be listening, because we're taping it; and she has her rug, and they
take the rugs out of the house to clean them, because they can clean
them twice as good that way - in fact, you should never have your rugs
cleaned in the home, they should - because they can be rolled up and
taken to a factory and really cleaned well. Now I’m turning into a carpet
cleaning sales guy here, because I know so much about this now.

But anyway, so she says, 'Well, what about the padding underneath the
rug?' And she says, 'Well, how olds the padding?' She says, 'It's ten years.'
She goes, 'Oh no, you can't clean that, it'll just disintegrate, just get a new
one.' So I write down 'Get - sell padding.' Does that seem like an easy
thing here, to make some 78 year old woman - she said she's in a walker,
you know, go out and get padding; so I go to the owner, I go, 'You should
sell padding.' He says, 'Oh, we do.' 'You do?' (Laughter) You want to tell
your sales people you do that, you know.

So it was about six things like that, and you'll hear Jay's whole thing on
strategy and pre-eminence; it means you have, as he puts it, a moral
obligation to serve that client in every single way - he's going to do a
whole thing on this, I don't want to upstage him. But the point is that you
have a moral obligation to at least mention that, okay? So I start to
implement. I get in there, I explain it to the sales people; let's pretend
you're all carpet cleaning sales people, and I just explain to you what I
explained to you, right? I explained to them what I just explained to you,
and intellectually you understand it right away. But now you've been doing
it a certain way, and you guys know what I’m talking about, who have
companies. who have employees, you've come to these events, you've
heard good ideas, you go back to your staff, you say, 'We're going to do -
we're going to pre-empt the competition, we're going to offer a Gold
Service,' and they tried it and so - when I work with a company, I virtually,
literally run the sales meetings.

One hour a week, every week, I'd get on the phone and I’d run the sales
meeting, and so I'm running the sales meeting, I introduce the concept,
they all say, 'Great,' we give them a basic script - big mistake, needs to be
an exact script; they all get on the phone, they try it, come back the next
week, I say, 'How did it go?' 'It didn't work. Didn't work at all.' 'Didn't work
at all?' 'Yeah almost everybody said no.' 'Oh, really, well let's get some
actual facts, okay? Rob, how did you do?' 'Well, I pitched it to ten people
and only four said yes.' (Laughter) I swear to God. True story.

Six out of ten people said no, and he thought it's a total failure. And now -
so then, we just kept going at it. I'm telling you, in six months of weekly
workshops to get it working beautifully. And that's when I said pig-headed
determination - if you guys own Joe's Hamburger Stand right now, and I
said to you, 'Let's get it to work like McDonald's,' and you go in there, and
you've been working at Joe's Hamburger Stand for three years, and now I
want you to be able to put down six burgers, flip three at a time, go this
way - you've never done that. You know, so then we get you to do it, you
try it a little bit, and after a couple of hours, you go, 'Ugh. It doesn't work.'
And Joe comes to me and says, 'It's not going to work; we can never be
McDonald's.' 'Why not?' 'Well, I mean we tried it.' 'How long did you try it?'
'Tried it for hours.' Well, I can tell you as a guy who worked in McDonald's,
the first day, that's all I did. But by the end of the day, guess what?
(Makes whooshing noises) You know, judo burger flipper here. You know,
it's really fast - you can get good at anything if you stay at it.
So it's about you having the pig-headed determination to take the areas of
your company that need to be improved, and to stick with them. To take
Jay's ideas of cross-sell, up-sell, of strategy pre-eminence, and work at it
weekly, but the secret is going to be, guys, six months for six things. Oh,
by the way, results: 87% increase in sales performance in one year. For a
guy who had increased about 6% per year for a hundred years. (Laughs)
And I'm not exaggerating here; it's the fourth generation that own the
business. I mean, it's profound.

Yet, average sales person was doing $22,000 a month; now he's got guys
doing $105,000 a month. Plus, another tip for you again - just little tips as
we go - then I said, 'Alright, well these other guys are so resistant; let's
bring in a new guy.' Because a new person is not going to have any
resistance to the old ways. Little tip for all of you; trying to implement
something new? Bring in somebody new and train them the way you want
them to do it right from the start.

So we trained the new guy; the new guys goes to $105,000 in his fifth
month. And all the other top producers who were saying this wasn’t going
to work are now all of a sudden doing it like a champion racehorse on the
telephone every day, because the heat got up in the kitchen. You
understand what I'm saying?

Alright, so. Fifty different ways to implement; my point is just stay in their
face. Okay, everybody stand up. Lunch coma setting in; I see some people
dozing. (Laughter) I hate that. Okay, lets twist that - come on baby. Twist
the spine, bend, come on - especially you - she's sound asleep over here.
(Laughter) Okay, good. Oh, you're not? Alright, good. Okay, thanks. Good.

Okay, case study number two. This is a little more detailed, and it goes to
my conversation with the gentleman before; and you said yeah they had
seven procedures; do they follow them? You say no; it's because you've
got to be on that, like until it's the policy. It’s not 'here's an idea.' It's our
policy, and it must be strictly adhered to, and you've got to be pig-headed
determined about it. This is what we're going to do; and you're just going
to keep working them, and every week you're going to come back, and
once a week, every single week, you're going to work on that until it's just
- they're all doing it.

And I did that with Charlie Munger's first company [unclear 9:33]; doubled
the sales in 15 months; and you have to see the reaction of a billionaire
when he sees a 28 year old guy double the sales of a magazine that's
been around for a hundred years, with 2 and 3% increases for a hundred
years. He was just astonished. But nothing compared to the other nine
divisions he gave me, and I doubled the sales of every one of them using
all the stuff I'm going to tell you today and tomorrow.

But most of it is just the pig-headed determination, to see - that's why it

shows this fellow here; it's like the tip is - so this is your top producer, and
this is what he would do in every single situation. Well, every person
needs to duplicate that, and you start to put it into place. So I have a
telecom client; this is Jay and I again; and they - I'm teaching them how to
scope on - anyway, so we get on the telephone and they start calling to
try and get appointments, and then come back the next week and you
monitor it, and say, 'Okay, how did we do?' 'Well, we -' One sales guy
goes, 'Oh I made 137 calls.' 'Great, how did you do?' 'I made three
appointments.' 'Fantastic.'

Because every deal they get is like 100 grand. He got three appointments
in one week. That's a good week, right? And a lot of guys in here would be
happy to have every sales rep you have getting three appointments a
week, right? What do you sell?

Audience member: Real estate.

Chet: Real estate? You'd love them to be (clicks fingers). Three is probably
light for real estate. But anyway - I have got to stop using him- he's a bad
example. (Laughter) Don't let me call on you again. So, anyway, they go
out there, and he gets three appointments, and I go, 'Okay, I mean 130
calls, he's got three appointments, how many pitches did you do?' 'I did
13.' 'So, oh. You did 13 and got three, that's pretty good. Great. What
happened to the other 10? 'Oh, they hung up on me.' 'What do you
mean?' 'Well, they basically said I'm not interested and they hung up on
you.'

So I go, 'Then what did you do?' 'Nothing, they said they weren't
interested.' 'Oh. So what we have must not be very important.' Because if
we hang up on a single rejection, what we're selling can't be - I mean, the
thought to me if someone goes away after me rejecting them one time, is
that it must not be very important if they went away after a single
rejection. So I say to the owners - and this is with the whole staff listening;
I say, 'We need some follow-up procedures,' because today, getting top of
mind - or getting mind-share is very expensive. In fact, studies show its six
times more to get that guy who says, 'I'm not interested - ' six times more
expensive to get that guy on the phone, and to get him to say, 'I’m not
interested,' than it is for the other 130 calls that you made.

In other words, you made a major accomplishment. When somebody

listened to you enough to say, 'I'm not interested,' you got into their mind-
share. Now, if you want to stay in their mind share, you better follow up
like a champion racehorse. And so, like I say here, what would a top
producer do? What would a top producer do? And again, you guys, how
many people in the audience either have a top producer working for them
or have been themselves a top producer?

Okay, so you know what a top producer is going to do? Here, I wrote it
down. Massive diligent follow-up, more determined in the face of rejection.
So my point to you is, let's build procedures that make everybody function
that way; and that's what I did for Charlie Munger's companies. I built
procedures. I had 12 steps to get an appointment with everyone, because
studies show it takes 8. So you come to work for me and I say, 'Here's the
12 things you're going to do to try and get an appointment with
somebody.' And then I would spell it out. 'Here's the first promo piece,
here's the call you're going to make, he's the charge key you're going to
send;' it was all laid out for the sales reps.

And then 'Here's the ten follow-up steps, so we're going to bond with
them, here's the way the sales calls -' every single aspect of it until the
place ran like a finely tuned machine. Anybody have a company running
like that, in here?

Man, it's so satisfying, I got to tell you. And you know how I did it? One
hour a week. That's all. Working on the business. But that one hour - I'm
going to show you exactly how you guys need to do. Alright. Oh, so my
point here is that it took three weeks of me badgering the owner to get
him to institute those procedures. So, I said it, you know, and then in the
third week - and I know he'll be listening to this, so I don't want to
embarrass him; here’s a really good guy and I love him, and he knows
that. I’m just saying that because he's actually going to be listening to this
on tape. (Laughter)

But I said to him, 'Look, you're wasting my talent and your money. Do you
really want to be wasting all that? We’ve talked about this for three weeks
in a row; you need to procedurize these follow-up procedures.' We need -
and there’s another thing they had, and again, you've got to be like a
scientist. So I got them so good at closing appointments. And just like
three-four weeks of these one hour calls, just coaching them, working with
them, letting them role-play, making it better and better each and every
time. Giving them better scripts, better promo pieces, better everything.
They got so good at closing appointments, that - like I said, they were
closing three out of ten, then they get the guy on the phone; they close it
so hard, come a week later it's time for the appointment, the guy looks
down like, 'Oh yeah, that telephone guy. Oh yeah, cancel that.'
So they started to get two out of three who would cancel. So now what do
we need to do about that? We needed five procedures to make sure that
they don't cancel, and so my point is that it took me three weeks to
badger the owner, of three weeks of these kinds of calls in a row before I
finally got him to go, 'Okay, okay, I'm going to build the procedures.'

So that's my point; when I say to you pig-headed determination, that's

what it really takes, And if you don't have that, you're never going to build
a great company, because that's what it takes. But I’m going to make it
even simpler for you, alright? Building procedures that would have every
person perform at the height of performance. And I'm going to show you
exactly how to do that. How much time do you need? I already said it's an
hour a week.

Proactively, at the same time, every single week. I’ve changed the course
and direction of growth curve of hundreds of companies just with this one
thing. Just spend one hour a week, take it, put it on the whiteboard. We
can run a meeting right now to improve any area of your company, any
place where you're having problems; you put it on the whiteboard, and
then we work on how we're going to solve it. We plan, we put it into
effects and procedures, and then we make it a standard policy within the
company. And if you do that, you will have profound results.

The secret is that the process is continuous and incremental. In other

words - I have another client I'm working with, and the first workshop we
do; and it says it here. First workshop that you do, here's what you do. You
sit down; if you're by yourself in your - how many people are a one man
army? Raise your hands - actually stand up. One man army, stand up.
Okay, quite a few of you. Okay, now sit down. Now everybody else stand
up. Just making sure you guys are not falling asleep; okay, that good.
Thanks, sit down.

Alright, so the first workshop that you're going to do- this is what I do. If
you hire me, and I’m on the phone with you and your staff, I’m going to
say, 'Alight everybody, we're here because we want to grow really fast,
and we want to build a really bulletproof company; we want to slaughter
the competition, and we're going to have some great curves. We're going
to be highly profitable, and I want everyone here to give me at least three
things standing in the way of that kind of growth.' And it's great. I mean
you've got to be an owner who really wants to improve to invite someone
into your company to go and ask that question of your employees,
because every embarrassing thing that's wrong with it is going to come
up. But the minute you do that, you're on your way to making a great
company. So you do it. You go back - after this meeting, you sit down with
your staff, those - you here with the staff, and you say, 'What three things
are standing in our way?' You don't point to people. Let me tell you how
not to do a workshop. You don’t go like this. 'Let me hear three
suggestions right now on how to improve the company.'

You don't put that kind of pressure on people. Let them think. Let them
think, because I’ve had - taught these programs and had people say to
me, 'I tried workshops and they didn't really work.' 'Well, what did you
do?' 'Well, I just said 'Okay, I want to hear an idea on how to solve our
problem of such-and-such.'' And the guys like, and afraid to say anything
in front of - let everybody take some time. So if you say to you right now,
'I want three ways to get better appointments. I'm going to give you five
minutes right now to think of it,' and we just kept quiet; guess what? In
this room, we're going to have 3,000 ways or 300 ways to get more
appointments, and you guys are all going to help do that. So that's what
you do in your own company.

So the first thing I ask is what's the problem. This particular client I’m
mentioning here is Case Study 3 actually, it doesn't say it. One of the
things that comes up is too many exceptions to the rule. This company
has grown to $14 million, with two people starting of in the spare bedroom
of their house, and they were doubling sales, and then they hit this
plateau and they're just stuck. They can't go any further. And it's because
they're not doing this stuff. They're still running like, a Mom and Pop
organization; no offense intended, because I’m pretty sure they will also
be listening to this tape. But they love me because I'm taking good care of
them, and I love them.

But the point is that they’re not solving the problems. So I said, 'What's
exceptions to the rule mean?' And they say, 'Too many things where we
don't have a rule about it so we've got to go to this one, go to this one, go
to that one,' and things get elevated all the way up to owner of the
company. Customer service things. So then the next workshop is 'too
many exceptions to the rule. 'I want three examples from everybody.'
Okay, so then customer service comes up. 'Alright, customer service.
What are some of the exceptions to the rule? I want three answers from
everybody.' So we had eleven major management people in this company;
we come up with a list. It's 22 - not 36 because after a while, things
duplicate, right?

If you have a workshop in your group, and the same problems don't come
up from a couple different people, I'd be shocked. So you don't end up; if
you have six people in the workshop; you don't end up with 18 things, you
end up with 12 things, before you start to hit - the same things are coming
up. So then, they had 18 customer service complaints that continuously
were not able to be solved by the customer service reps themselves, and
had to go to - okay, come on guys. I see three people sleeping. Get up.
Stand up please. Twist that spine. I hate lunch coma. It's for your own
good. Breathe, yeah. Take a good breath; that nice stale air in here, yes.
Move the body, there you go. Stretch this way. Good, alright, thanks.

So anyway, they had 18 customer service issues that continually made

their way all the way up, in some cases, to the CEO of the company, and
we solved 9 of them in an hour. Nine things that have burned people's
time for ten years; we solved in an hour. Oh, and then this says, 'Every
person will give a different answer.' Because it's interesting, like the
receptionists' perception of what's holding up the company, can be very
different from the sales managers' perception. It's very different than a
customer - I mean, the receptionist will bring up things that you didn't
even know. They call it the iceberg of ignorance. Like management only
really knows about 5% of what's going on in the company.

Again, unless you're a one man army. And if you're a one man army, you
spend that same one hour writing down for yourself. Excuse me.
Everything that's going to stand in the way of you growing that company,
and then in the next week, you write one of them on the whiteboard and
you try to come up with solutions. And then you take the solutions - and
here's the next steps you do guys. You break it down. Because if you
don't break it down, you're wasting your time, it's not going to get solved
if you say, 'Oh that's a good idea, why don't you try that next week and
see how it goes.' It's not going to happen.

Or, 'Okay, well let's try a bunch of different things.' You've got to be very
specific. You've got to run the company like you're a serious entrepreneur.
It’s like, the example I gave of Joe's Bank versus Wells Fargo Bank, you
know? At Joe's Bank, when you come and you say, 'Why don't you go sit
with Bill here for a little while, and watch how he does it and do what he
does.' You think they do that at Wells Fargo, or do you think they have a
training director, training manuals, videos that you watch, tests that you
take; long before you ever observe someone else, and that's what makes
a difference.

Okay, so break it down. We have tasks, deadlines and procedures; so we

came up with these nine solutions to the customer service. So I go,
'Alright, who's going to do it?' Because we've got to have people that will
do it. 'Alright, you're going to do it? When are you going to have
something that we as a group can look at? Are you going to have it next
week? Is that good?' 'No, that's not reasonable because it's Thanksgiving,
we just went through this.' 'Okay, how about the following Tuesday?' I
happened to do Tuesday with this company every week. And so, 'Yeah, I'll
have it by the following Tuesday.'

And then we'd take that and we'd start - you know, break it down; is my
point. And just like a scientist, go and fix it. Little by little, step by step.
Remember guys, you just want it continuous and incremental, and I said
to these owners; and they know I'm right, they already completely get it;
that a year from now, of these kinds of workshops - and we made really
major progress in like four or five weeks - but a year of those kinds of
proactive, fixing every little thing in your company; a year from now, you
won't have to work half as hard as you do now. I am telling you. Just do it.

Let's see. Can you commit just one hour, if it's dramatically improved the
business? Involve your staff, make it mandatory. My time is up.
Completely. (Groans from audience).

Jay: Finish, finish, finish. He's coming back - wait, there's more. I told you
you'd be transformed. (Applause)

Chet: I made the main point, but let me do like three minutes and then I'll
wrap. Okay, so you don't have to think of everything, your staff will give
you their opinions, and all you do is ask. Bigger companies, the only thing
you need to bring to those meetings is your judgement. And I teach this to
the clients that I have; they're a little bigger. Just come to the meeting.
Like, a lot of companies, the CEO thinks he's got to come up with
everything. I've got a client; 65 shoe stores, and before I came along, he
thought he had to come up - 'I need a solution for this.' I go, 'You've got 65
store owners, let's ask them. You don't have to bring anything to the
meeting except you're judgement.' And he's like, 'Yeah. I like that idea.'
(Laughter) 'I've been working really way too hard here.' Okay?

So it's about thinking like a Fortune - (Audio cuts off)

So there's 12 areas of competency that make up a great business; here

they are. Okay. Time for training, master level skills. Here's how you get
master level skills, everyone. Strategy versus tactics, [unclear 11:43]
against clients; that's something you got to be really good at,
understanding the art of sales, effective presenting - ooh, that's a really
good segment. Mastering the telephone, the dream 100 sell - man, that's
going to revolutionize your business someday, if you ever learn it. Time
management, how to run a cold company for good-time management,
follow-up procedures; you already know that's important. Setting
standards for overachievement -I’ve got to get to the end because I’ve got
a joke here. Goal setting, hiring, hiring sales superstars; a really important
competency; and blah, blah, blah.

Role of a great leader; the one with the most passion wins. Really
important. If you're passion to improve your business is greater than the
resistance of your staff, you will prevail, and the business will improve. As
stated when we began, you need pig-headed discipline and the ability to
keep your eye on the ball, which is to constantly work on the business, not
just in it.

If you want master level skills in all these areas, just start working on
them, because it'll make a huge difference. And so that can be you with
one person, with one idea here or there, or you can be a machine with 52
proactive, one hour sessions to improve every aspect of your company,
and all of it starts to cross-reference, you get a profound - final promise to
motivate you: This could be you if you religiously spend one hour working
on your business. Okay, that was just a joke. See how powerful visualate
-oh, how'd that get in there? Okay, thank you. (Applause)

Jay Abraham Mastermind Marketing 7

Jay: ...now, was to position you briefly to understand that there's a lot of
predictable science to growing a business. The thing that I stand for more
than anything, is that it really isn’t an art, it is a science; it can be learned
and mastered by any one of you and every one of you, provided you're
willing and able to follow some systems and strategies, and that's what
we're going to try to do. Chet's going to be back, and he's not going to be
constrained, so he's going to concentrate on the two critical elements that
I think are the Pareto principle; the 80% of what he's all about, and it's
going to give you a really good foundation.

He and I are involved in lots of different consulting and joint venture

activities, and some of you might hear from us later, but he's really here
to teach you, later on, how to do a Dream 100 and to be very strategic.
Thank you, Chet. (Applause) How are you guys feeling? Have you got
energy or not? Is your stomach full? (Audience replies, 'Yeah.')

Okay, so here's what I think. Dave, I think we should do YMCA for a

minute. (Laughter and cheering) I think we should all stand and do it. I'll
do it with you and make sure my zipper's up; I just changed. (Laughter)
Okay, so - wait, wait until we all stand, hold on. Mac Ross, you can do it,
because you're a perfect YMCA guy. Mac Ross is going to help me for the
next session; he's my colleague from time gone by, for like 50 different
seminars, and he's the greatest YMCA guy I ever seen, aren't you?
(Laughter)
Okay, we're going to do this with energy, right? A little energy. You guys
are great. He actually talked to Village People, I swear to - okay, ready?
(Clapping) Louder, Dave. Louder. (YMCA plays and audience claps along) I
don't know all the words though, you have to help me. I don't know all the
words. You can sing, Mac. I don't know, whatever. I know how to do that.
We'll have fun. Little louder Dave. Louder Rick. Little louder, Rick. That's
good. (Sings along) Go ahead, Mac, sing. Can you feel the energy, Mac?
You feeling good man? Almost done. It's good, we needed this.

Okay, Dave, we’re ready. Alright. (Cheering and applause) Okay, we're
ready.

Mac: You've been practicing that.

Jay: No, I knew that - my wife - Mac knows this, this is so cool. Before I
burnt out on business, or about the same time I turned 50...

Mac: Oh yeah, the birthday party.

Jay: And this is so cool. So my favorite group - because I'm frozen in time -
are the Village People. I love the Village People. (Laughter) They're my
heroes. So for my 50th birthday...

Mac: Particularly the policeman, wasn't it?

, and we had philosophical discord, with - all over the world. Now, most
parties if you invited 200 people from all over the world, what, a hundred
would come? So my daughter Michelle, who's around here - Dave, we're
getting back up here - takes me out, come home - it's like 7:00; the house
is full...

Mac: Didn't Mark Victor take you and fly you all over...?

Jay: No, Michelle did. But Mark Victor was there too, he got stuck in my
Porsche...it's a long story. His big body got stuck in the Porsche and locked
himself in. (Laughs) Anyway - it was hilarious - for three hours, no one
found him. (Laughter) I have an old Porsche with a manual lock at the
bottom, and it was really complicated, and he somehow got in to move it
and got locked in it for three hours. (Laughter)But, anyhow, I come in the
house...

Mac: That's the story you heard, anyway.

Jay: This is so cool. Come in, and there are 200 people all dressed as
Village People; and you were a cowboy.
Mac: Yeah, yeah.

Jay: They flew in from everywhere three guys who are my ex-partners; I
never talked to, didn't even want to see where they are - it was wild, it
was just wild. And about 10:00 - were you there when the police came?

Mac: Oh yeah. (Laughter)

Jay: So the police come - this is so funny.

Mac: And not only did the police come...

Jay: [unclear 1:04], so the police come, and first thing happens is my wife
comes to the door, and our neighbours were complaining. It was a pretty
wild party. And everyone's dressed in...

Mac: Of course, he didn't invite them.

Jay: Didn't invite the police. So they say, 'You gotta stop this.' And she
says, 'Or...?' And they said, 'Well this is a warning, if we come back, we
gotta give you a citation.' And she said, 'Then what happens if we keep -'
and they said, 'Then we have to send a helicopter.' And she went on, and
she says, 'Well, first of all, I've spent like 80 grand for this party.' And she
said - and she had like the Village People - it was great - she had Village
People from Las Vegas who flew in. Then, as she was talking, all these
police dressed guys came in to her, drunk, from the party...

Mac: And women...

Jay: And women. And then they said, 'It's okay Officers, we got the matter
well in hand.' And they were looking at - (laughter) Swear to God. So then
my wife basically takes over, because they figured out - because these
guys were not policeman. So she goes, 'Officer, here's the deal. If the
ticket is 100 bucks, we'll pay it. If you bring the helicopter and they charge
us a couple of grand, my husband will get the biggest kick out of it.' And
he said, 'Yeah, but the next time we'll have to arrest someone.' And she
said, 'Can we volunteer someone, like - an airline - and get volunteers and
pay them?' (Laughter)

And they got so exasperated with my wife, they just left. (Laughter)

Mac: IT's true.

Jay: And you'll meet my wife tomorrow, because she's going to come. She
doesn't know I talk about her behind her back, but this is the same person
- if you guys heard about it - that taught me how you make the rules, and
how - [unclear 2:35] correctly - how erroneous most of our perspectives
are - and I've got to tell a quick story about [unclear].
Mac: You've got to tell that, yeah...

Jay: The airline story?

Mac: Yeah, for sure man.

Jay: IT's like a defining moment in my life and my respect for my wife.

Mac: I still tell it all the time.

Jay: So, we're doing a seminar. My father dies, like the next week. We
have to go back to Indianapolis. I've got a lot of kid, grand - not grand-kids
- all kinds of kids to take. It was very expensive, and it was like last
minute, but they had bereave - It was USA Air - they had bereavement....

Mac: They had like 10 kids, 5 adults..

Jay: A lot people, I was taking family, so it was like 8 grand or something.
Get to the airport, the damn flight's cancelled because of weather.

Mac: It was a blizzard. In the Mid-West.

Jay: I won't go through the whole story, because it's a really cool story. It
tells you about seven things. But to make a long story short, we got put on
a different flight; a TWA flight, and we got there, and the poor woman on
TWA was exasperated...

Mac: Well, I think it is funny, because he's at the line, and the lady says,
'We can't help you sir.' And he's saying...

Jay: Mac, something's harassing him, what is it?

Mac: ...will you please move on? And he said, 'Well.' He looks round, and
he says...

Jay: One second...is it me?

Mac: 'Is anybody going anywhere, what's the rush?' You know, because
there's like 300 people sitting around there waiting for a plane...

Jay: Yeah, I said, 'Why? What's the big deal? We can't get anywhere.' I
mean it was just 300 people - anyway to make a long story short, they
didn't want to give me a ticket, but I was well read - like you'll be - and I
refused to leave. Nicely. And I said, 'So you have no obligation to make
good if it's not my fault?' And they said, 'Well...' And I said, 'Put it in
writing, just put it in writing that you have no obligation, and that -' and to
make a long story short, we got 10 tickets to TWA for free; but that wasn’t
the big deal.
We got on TWA. We get there, and the poor flight attendant is exasperated
because it was going to be a low attendance afternoon flight. And all
these flights got cancelled, and they had like 300 people. They were very
nice, but they said, 'We can't promise we can get you guys all together.'
And I was - the old Jay was not as nice and easy-going, was it.

Mac: No.

Jay: I was going, 'Pfft, pfft,' and like smoke coming out of my ears. And
I've got all these little kids. I've got kids 6 months old, a kid a year and
half old, a kid three years old, and it's like, Oh God; what are you going to
do? So first place we come - you know, they hold back a lot of the really
choice - like the bulkheads, for either really important people or for
invalids until the end. So the first ticket we had; one ticket was a
bulkhead. Prime, desirable place, right? So I very nicely asked the guy,
and I said, 'You know, this has been a mess, would you mind trading with
us anywhere? We got this one seat, and can we get two?' And the guy was
just a real ass. He said, 'Absolutely not. I reserved this 6 weeks ago, I
always get the bulkhead; I won't do it.' And I'm getting like furious,
because I'm thinking what the hell are we going to do with one kid here,
one kid there. And the angrier I'm getting - (makes noises), red, and I was
a lot heavier then, I was going to beat the crap out of him, something
really bad.

My wife starts laughing. I'm thinking, okay, I'm ready to explode in anger,
and she's laughing her head off. She said, 'It's no problem sir.' So she puts
the baby carrier in the [unclear 5:36] - (Laughter) Sticks - wait, I swear to
God - sticks the baby in there, looks at the guy, and says, 'If he cries a
little, give him this,' and gave him the bottle. (Laughter and clapping) 'If
he cries a lot, you might want this,' and gave him wipes, and left. And I
realized in a moment, we didn't have a problem; he did. And we left.
(Applause and laughter).

Now, to make a long story short, because it was just an aside about my
wife who's so cool - is that all our kids sat together on the flight.
(Laughter) And ever since, we've never had problems; when we realized
it's not our problem, it's somebody else's. And if you take that attitude, it's
sort of cool. Anyhow.

Alright, so Mac Ross, God bless him is really the Bo Derrick, the Dionne
Sanders....

Mac: No, not Bo Derrick, no. (Laughter)

Jay: (Laughs) (Applause) Wait, it's after lunch. Wait, wait - YMCA...
Mac: ...about your wife.

Jay: No, that’s true, I was thinking about my wife; she's very attractive.
Before his sex operation, he was Bjorn Derrick. (Laughter) Anyhow, he and
I have been through a lot together. I trust him implicitly. He gets me better
than sometimes I get myself. He's going to help me help you comprehend
the basic Jay Abraham, and then we're going to build a lot of tactical
elements so you see how it comes together. Do you want to do that, or do
you want to do a little exercise?

Mac: Exercise.

Jay: Okay, we're going to do a very quick exercise.

Mac: YMCA.

Jay: YMCA. This exercise is based on - it was darling watching you do it.
(Audio missing) ...on a Saturday, it's a wonderful sight. It's a wonderful
sight to behold. I have to ask a question. At lunch, did you, in fact, truly
and honestly meet different people? Did you discuss what has transpired,
and did you get some clarified impact? Yes or no. (Audience replies, 'Yes.')
Did everybody get at least one interesting insight that maybe - not the
defining insight of the program, because we're at the outer periphery, but
it was pretty interesting and pretty reflective, and it was actually quite
provocative, and you're thinking about it a little bit even now, residually?
Yes, no? (Audience replies, 'Yes.') Good. Okay, you have ten minutes, and
there are ten of you; you got one minute each to say what the biggest
insight you got from your discussions with other people that you had
never thought about, at lunch was. And if you have time in that one
minute, what you're going to do about it, if anything, and then we're going
to start in our process. So Dave, do you have the Enya music - the easy
music?

In ten minutes, and then - where did our Rolex timekeeper go?

Mac: Have somebody at each table sort of volunteer to be a moderator...

Jay: You guys - yeah moderator and advancer, but in ten minutes we must
stop, so where are you? So ten minutes, you know the drill. Okay, go for it
Dave.

Jay: Mac is going to hold me accountable. Rick, are you around? Come on,
because we're going to do some Power Point's now. Okay, what I want you
to see is that some of you here will see life, see an experience, see an
opportunity, to see a transaction, to see a dynamic so differently that you
owe it to yourself and try to grasp what they grasp. There's an old Eastern
philosophy statement, and it's by a Guru named Krishna [unclear 00:30]
-not sure, but I think it's him. And it's something to the effect -and I won't
do this with [unclear], but your goal in life is to observe, examine,
understand, analyze, empathize - what else? Study how other people see
a situation. Not to agree with them, but you have to appreciate them
because that's their reality.

And if you talk - if you had the good fortune, which I wish I could; I wish I
could be a fly on the wall of every one of your minds right now and listen
to everything that goes on for every minute remaining, and every one that
has already transpired, and hear how you saw it and what your thoughts
were. It's like, to Mark - what he did, it was obvious that everyone was
going to get - that there were certain implications. I'm not sure you all
would have if I didn't try to connect it. Maybe I’m the lame one, but it
doesn’t matter.

The truth of the matter is, there's so much to grow and learn from how
many other people see a situation differently. And you want to add to
that?

Mac: Just that I think you saw in Mark Victor, who came to this program as
they were -I think before Chicken Soup, if I'm not mistaken.

Jay: Yeah, they attended; they paid and they came. And Jack.

Mac: And they'll attribute to Jay that they learned how to run those
changes here, and then perfected the art in the way that now they've
become a publishing phenomenon. that hardly anyone has ever seen
before. I don't know of anyone who's ever seen the number of successful
roll-outs of a concept; spins and twirls....

Jay: That they’ve done?

Mac: Yeah.

Jay: Yeah, they took it to an art form, they really did.

Mac: But did you see what they did? And you can do the same thing with
your business.

Jay: He gets what he's trying to say, but I’m not sure when got it, that
even though he's using it as a metaphoric example, a book; it doesn't
really matter. I hope you all got that There's another thing. Even if you
don't want to have a book - be a best-seller, a book is a hell of a great
vehicle for credibility and pre-emptive positioning. As I say to you and
your kids, they're trying to get a job; let them write a book, and all things
being equal - well, I’d hire someone who went to that trouble before I'd
hire somebody who didn't, wouldn’t you?

Mac: Yeah, I mean it's a...

Jay: Particularly if it was authoritative and a good read. If they couldn't

write I'd pay somebody to write it, just a - university. What's it cost to get
a really good grad student to do something like that; do a manuscript; not
a lot, does it? I mean, and he teaches marketing at Columbia...

Mac: And exploits grad students...

Jay: That's a [unclear 2:58] right, but not - just intellectually. (Laughter)
We'll protect you.

Mac: Sorry. (Laughs)

Jay: This is like, the first day. Okay, so here's what we're going to do, and
Mac's going to help me. I’m going to give you an overview of what I think
Jay Abraham 101 is, because I don't care where you are on the Jay
Abraham curve; you either learned it, know it but don't do it; you sort of
learned it but don't know it all; you sort of learned it in the last month or
so, through whatever grounding materials you read or perused or
scanned, but you really haven't done it; or you never heard it before. It
doesn't matter because they're so foundationally critical to building
geometrics, sustaining and compounding growth.

So, let me try to do it the way that I would, and then Mac and Rick will
help me simplify it for you so we can get it quick and then build on it. So,
I’m about a couple of things. I'm about leverage, which I think I
demonstrated earlier; did I do the leverage or not yet? Okay, I did a group
yesterday. Okay, no matter how you marketers sell - there's two kinds of
leverage; doctors - doctors in the audience, raise your hand. Medical
doctors. Okay. Medical doctors? Okay. Two kinds of cholesterol; good and
bad, right?

Two kinds of leverage, good and bad. Bad kind; you set out, you're going
to buy an asset or a piece of equipment or an income producing
something, and as long as it works and either appreciates and you can sell
it, or it makes more money; you're okay, right? If it doesn't, you're
screwed, aren't you? Big time. Why am I thinking you're a pathologist? Are
you? What are you?

Audience member: Psychiatrist.

Jay: I knew you were something close, I knew you were medical.
(Laughter) No, I couldn't remember. No, I’m sorry, I was close; I was only
off by - started with a P though didn't it? Want me to guess your weight?
(Laughter) So, there's two kinds of leverage in business; good and bad.
Marketing is almost infinite upside. It costs you the very same fixed
expense, no matter what you market; to dispatch a sales force; whether
they make an effect - ten calls a day, 15 calls, 20 - it costs you the same
on those calls whether they secure 50% appointment, 10%, 15%. Costs
you the same on those appointments whether they close one out of 10
presented, one out of 5, one out of two, one out of one.

Costs you the same to close them whether they sell on average of $100,
or an average of $300, an average of $3,000. Costs you the same to get
that client whether the client buys one time, whether he never buys
again, buys one time every six months, one time every three months, one
time every month, one time every week. Costs you the same to send a
newsletter; a lead generating letter, a catalogue, a brochure, whether it
affects half a percent response; 10% response.

Costs the same whether there are leads coming in, whether you close on
one out of - 1%, 5%, 10%. I'm trying to hurry thins, because it applies
everywhere. If you go to trade shows, costs you the same to rent the
booth and put up a big canvas sign where it blatantly states a name
nobody cares about, or a promise of a result, that ten times - how many
people come by. Costs you the same to get people's cards, whether it’s to
put on a fishbowl, just to win the free TV, or whether they're looking for a
result that they can't wait for you to send them viable and important
information on.

Costs you the same to buy those leads where they convert one percent,
10%, etc. Costs you the same to sell them - whether you sell them one
thing - never sell them anything else, or whether you integrate three or
four other products or services. Costs you the same to get the leads that
don't convert, whether you figure any reclamation use for it or not.

I can go on and on, but the point of leverage is, if you can get salespeople
who normally got 10 calls in a day; to get 12,and who would have used to
close 5%, to close 20%, and who used sell $200, to close $400; and clients
that used to buy two times a year, to buy four. And people who used to
buy thing, to buy three, and people who didn't convert, to now be worth
more money to you than the people who were at trade shows - used to
get 100 lousy people wanting a free TV, to get 300 who can’t wait for you
to do a proposal for them.

The leverage in that is so dauntingly staggering, that you can't even

comprehend it. And the reason that I have 6 or $7 billion to my name, and
the reason that I have a reputation that sounds hyperbolic and so
unbelievable, is not that I really am a purveyor of hype or chicanery, it's
because so few people demand, accept or really, yield anywhere close to
even a fraction of a fraction of the outcome. of the result, of the
productivity, of the profit, of the sales, the effort, the activity, the
opportunity should produce. I'm all about enhancing leverage; working on
the leverage. You want to comment?

Mac: There's one little catch. The leverage comes from testing and
tracking. Because one thing you can tell about marketing; it is
exptrapolatable; something that works on say, even a small as 500 leads,
will probably work on the 5000 you have in your database. And the bigger
the number you're testing, the more the extrpolatability and the more the
leverage.

Jay: Yep. Good.

Mac: And keeping track means not just looking at your bottom line, but
seeing if, in fact, you got that - the sales men went out with the new
pitches, Chet was saying, with the upsell. And you can't trust their 'We did
good, you did bad,' because you have to look at the numbers. If you don't
look at the numbers, you can't make that independent evaluation. As
Chet's story illustrated.

Jay: Okay. We over here? Now, next, I'm about something called
optimization, which is what I said; broken down to its simplest terms, it's
about getting the maximum for minimum time, effort, risk, investment.
It's about highest and best use of your opportunities, your investment,
your people, your capital; human and otherwise. Who here is in
commercial real estate, either directly or indirectly? Okay, you know what
highest and best use means? Yes? Those of you who don't, it's a very
important metaphoric example.

Let's pretend that we were in Beverley Hills on Rodeo Drive. You know
what Rodeo Drive is. And across the street from the Beverly Hills Hotel on
Rodeo Drive, let's presume there was a big three-acre lot with a beat-up
two bedroom, one bath, horribly ramshackle; just really ugly, little
thousand square foot house, that was almost untenable. And we wanted
to buy it. It would not be appraised by a commercial appraiser as a two
bedroom, thousand square foot house. He or she would look at it and
appraise it, in that location, on that lot, at what it could be worth; a lot
converted to its highest and best use. As a high rise, as a hotel, as a
parking garage, as a shopping mall, as an office complex.

You have to look at your life and your marketing decisions on the same
criteria. In order to optimize, however, you can't optimize until you first
identify all the options, all the opportunities, all the choices you have
above and beyond the approach you're currently taking, because as I said
earlier, most people - what I learned early in my career; you look at
hundred, you look at 400 industries as I have, you find that 90% of them
market a totally different way, and none of those ways are necessarily
uniquely applicable to them; it's just that Industry A doesn't know what
Industry B is doing. Industry B doesn't know what Industry C is doing. A
concept common as dirt, as I said earlier, can have the power and the
impact of an atom bomb if you're the first and only business to use it in
your industry.

Towards optimization: you can't optimize until you first identify all of the
activities and the processes you are engaged in. I did work for Deming,
'92 or '93; the organization - great training for me. I did a lot of experts
and in order to help the experts, I had to learn their expertise, and Deming
was the father of process improvement. You should all know that. If not,
you should do a little bio research on the guy, because he was brilliant.
He's the one that taught Japan how to go from Schlockmeisters to
purveyors of incredibly high quality products.

He did it by saying everything could be broken down to a process. As a

process it can be identified, it can be measured, monitored, quantified,
improved. Did I say them wrong - in the right order?

Mac: I think quantified and probably early - one step away.

Jay: Quantified, and measured...

Mac: Well, measured is quantified right? Measured, quantified...

Jay: I don't know. Okay, extrapolated, too. Okay, here's what he would do.
He applied it all to output, throughput, manufacturing, operations. He'd
look at 12 different people or 12 different lines in production, and say,
'Well, what's unique about - let's find the key elements that are relevant to
us.' This one's got 40% greater productivity per day. This one's got 12%
greater downtime. This one had 30% fewer rejects. This one is down 25%
less for - all the variables. Then he'd say, 'What is it about this one that's
different?' And he figured out that there may be 25 impact points that
somebody consciously or unconsciously had figured out, but everybody
else didn't know it.

His goal - he'd say - and I’m going to use a demonstration to see if this
makes sense, Mac, because my ADD may confuse people. He would say
that - he'd produce it down to this. This is a process, okay? In a process
there is variation. This is the band of variants. This is the best performing
one, this is the worst. All this is in between. In the manufacturing, this
may be - and this applies to maybe 25 different activities. If we were
looking at productivity. This may be 150% of budget. This may be 60.
Somebody else online, maybe doing 80. Somebody else maybe doing 95.
Somebody else maybe doing 110.

Well, he'd look and see what this person's doing, or what this line is doing,
and this; that these aren't - and his goal was to teach all these people
what this is. Sort of the early stages of best practices. But his goal was to -
he used to into variants - to reduce the band of variants, to bring this up
to here, by bringing all these people up closer to here, and then raise the
base line, because these people would figure out what all these people
were doing better than them. Does that make sense? Or is it too
confusing? Okay, so warp speed ahead and translate it to the revenue
generating side of your business...

Mac: And of course, the reason why Deming became such a guru, was
that he developed his models as basically a stat- a government
statistician early on...

Jay: [unclear 14:17]

Mac: He couldn’t even get arrested here, but he went to Japan in the 50's
and 60's, and totally revolutionized their business, because they
understood the impact, and they were at a place desperate enough to
compete in the world economy, where they had their infrastructure wiped
out; they could start from scratch and put in these controls. And so when
they came back again in the 80's and 90's again, the whole art of
Japanese management - and statistical management - they were really an
export coming back as an import.

Jay: Great point. So now, we look at marketing. And there's two things to
look at. Jay Abraham is all about two different things. First of all, starting
with where you are now, because you have velocity and critical mass and
motion in place. You've got stuff going, you've got shit going on. Not being
vulgar. You've got ads running, you've got phone calls coming, you've got
referrals coming in, you've got sales people going out, you've got
catalogues being sent, you've got people coming in your door, you've got
annual events, sales - first thing I try to get people to do is figure out what
in the hell they're doing process wise, and then ask themselves a couple
of questions.

Number one; is that approach the highest and best use of the objective?
For example, your goal might be to try to get a lot of leads, and maybe
the only way you know is to cold call on the phone, when in fact there's
fact 20 or 30 or 50 better alternative options that can be less time-
consuming, less expensive, far greater yielding. So you've got to look at
what you're doing now, and figure out how to do it.

The next thing is look at how many people in your organization are doing
it, and how different performance levels are. Or, how many different
people in your industry are doing it, and how many different performance
levels there are. Or optimally - because I try to get people to travel
outside their industry - how many more people outside your industry have
found a better way to accomplish the end result? The goal is the same,
but the means to achieve it that you have available, once you start
practising what I'm trying to teach you; are near infinite. Wouldn't you
agree?

Mac: Yeah, I think you gotta take them through the three way - just for the
basic three ways...

Jay: Let me go through the three ways to grow a business model, right
now. Because this is paramount to working on the geometry of the
business. Everybody asks me, 'Jay, how many ways are there to grow a
business?' And for 15 years, I’ve said, 'You think there are thousands, but
there are three and only three that I believe in.' Rick, go ahead.

Number one; increase the number of clients. Everyone still thinks 'know
them as customers,' we're going to talk about the strategy parameters in
a minute, and we'll talk about clients. Everyone works almost all their
money, all their time, on trying to get more clients. Number two; increase
the average transaction value; the size of the sale. And also - or the
components that are combined into it. Number three; increase the
frequency of re-purchase. (Audio missing) ...more residual value out of
each client, or more utility. Maybe they have nothing else - you have
nothing else to sell, so figuring out how to either get more things from
other people you can sell to them that complement you, or at least get
referrals or the like out of them. Okay, I'm going to show you - those of
you who have seen it before, as impressive as it is or as trite as it may
seem, if you aren't doing it diligently, you would take great, great, great
benefits writing this down and reflecting on what you're not doing. So
we're going to do a little model.

We're going to take a hypothetical - and it's in one of your workbooks. But
I think you're better off writing this down, because when you write it by
hand, it settles in your brain better. Don't go -

Mac: If I had to make a guess, 90% of businesses focus on that first box...

Jay: Yeah, it's done, it's done. And let me tell you...
Mac: And stopped there, trying to increase the number of clients. That's
what they - start and stop at.

Jay: Right. And the ludiacy of it is this; it costs you six-ten times as much,
takes you three, four, five times as long, costs - it effects human capital
immensely. Once you've made this sale, getting them to buy more,
getting them to buy more often takes minutes; takes almost no money. It's
all based on the relationship you establish at the get-go, and how
strategic you are. But let's look at a model, for those of you have never
seen this; and those of you who have seen it, let's revisit it again, because
the more you revisit it and - Mark said you look at this card four times a
day.

I would think you guys should look at the next five or six points I’m going
to cover - three ways to grow a business model, power Parthenon,
optimization; probably two or three times every day, and make sure you
hammer it in to everybody that works for you. So we've got a hypothetical
business here that has a thousand - should be clients, I don't know why...

Mac: Hypothetical English business.

Jay: English business. I don't know why it's a hypothetical English

business, but i didn't do it. Anyhow, there's a thousand clients transacting
a hundred dollars of sales every time a purchase, and buying two times a
year. So we extrapolate, or we extend it, and what do you have? You have
a thousand people buying $100 twice. So that business is doing 200,000
in this case, pounds. We probably picked a slide up from one of the UK
ones that we used to do.

Okay, what would happen if we tried to improve only slightly? Not the kind
of monster improvements that I'm known for, and that people in this room
- I'm going to get them to show you with your hands, that they're really
possible, but we're just going to go for a little conservative - we're not
going to try to swing for the fences. What happened if all we tried to do is
get a 10% increase across the board? And in case you think, 'Jay, we in
brutal competitive times, we are in brutal economical - we are in brutal
psychology time for consumers. They're looking for commodities, they're
look to hammer us down,' etc. etc. etc.

Let me just try to give you instantly, three or four ways you could - out of
the maybe 50 available, or 150 - that you could increase the number of
clients, not customers; that is a typographical era; it should have been
changed but that was an old slide. Number one: how many people in this
room have any clients, buyers, patients, customers if that's what you want
to call them, but you won't in a minute - that don't buy as often as you
would like? How many have people have bought before, maybe don't buy
even at all right now?

How many know honestly what you're attrition rate is? Raise your hand.
Look around the room. How many know what attrition means, raise your
hand. (Laughter) How many don't? How many people would like to?
Attrition is a word that refers to the number or the percentage, or the
quantity of people that stop doing something with you; that stop
subscribing,, that stop buying, that stop visiting you.

Everybody that's ever - unless you're very unique, you don't have 100%
conservation or retention, you have attrition. Some businesses have
atrocious attrition. The newsletter business that Mac and I know well, they
bring in a hundred people, they lose 75 of them in the first year, don't
they?

Mac: Many of them do.

Jay: Many of them do. Not all, but many. You all have attrition. If you - first
of all you've got to know who they are and where they are, or you can't
save it and stop it. Second, you've got to try to stop and reclaim them; get
them back. Third you've got to realize why they're leaving so you can put
into place a conservation, or attrition aversion programme to - or
avoidance program, to minimize or eliminate it. If you cut your attrition in
half, it's like giving you an absolute increase of that amount. Except that
having to spend $600 in 6 months to sell them, basically you spend
nothing at all; it goes to the bottom line.

Let me give you a quick insight in why people stop doing business with
you. There are three main reasons. All three can be used advantageously
for you in an ethical manner. Number one; they had an interruption in
their life that had nothing to do with you;; maybe they went on vacation,
maybe they got sick, maybe they got sent overseas, maybe there was
unusual weather, maybe they - doctor's orders; they couldn't work out.
Whatever it is, something happened to stop them from doing regular
business with you, and the negative elements of a habit took hold. And for
no reason that's negative whatsoever to you, they stopped and they
either don't do it at all, they went to an alternative, or they just found
somebody closer or different; but it has nothing whatsoever to do with
negative from you.

If you find out who those people are, if you call them, visit them, send
them a letter, write them, email them; in the order I just said; you're going
to get the tapes, and you did nothing more than try to literally contact
them and say, 'Jay, I'm worried. It's been a year since you last transacted
business. It's either something's wrong with you or something's wrong
with us, and if it's you, we care too much to let you guys be in trouble.
We'll work with you if you need our help. If it's us, and we did anything to
offend, or disturb you, I didn’t' do it consciously. I need to know about it
because even if we never do business again, it's terribly important to me
that the last transaction you do with my company be a satisfying and a
profitable one; and I gotta make it right.'

Those words are very powerful; I’ve used it very successfully for clients,
and it's on this tape, so I urge you to listen to it. You do that and that
alone, and it will save or reactivate certainly 50% or more. That's the first
reason. Even the ones that didn't reactivate will be so favourably disposed
that they'll turn into referral sources for you.

The second one, which is a very powerful one, is: they had a bad
experience. Maybe the product didn't come when it was supposed to, or
didn't perform; maybe it was missing a part, maybe your people didn't call
them back and service them right, maybe you're supposed to do
something post-purchase and you didn't, maybe they just felt like it was
not what it was proposed. Maybe a service person delivered something
and walked over their white carpet and stained it, maybe a guy delivered
something and ogled their wife or their daughter. Any of a number of
things could have happened. Really. That you don't know about, but you're
being accountable for. If you call with the utmost of heartfelt sincerity, and
use the same thing - 'If we've done anything, boy, it certainly wasn't
conscious. I'd like to have the chance to correct it, improve it, and
hopefully we can reactivate - rekindle the relationship. But even if we
don't, I've got to do the right thing.' Half those people have such humanity
and such goodness and such heartfelt response for you, they’ll start
dealing with you immediately. The other half, even if they don't, will be
impressed and tell other people.

The third reason you lose people is they outgrew the need for you product.
These are a great source for referrals if you develop a referral generating
system. So that's one way you can get 10%. The next way: how many
people in this room - this is the mind blow, are you ready for the mind
blow question of the week? Maybe? Maybe? (Audience shouts, 'Yes.') It's
that or another version of YMCA.

Mac: Yes, yes, we're ready!

Jay: Mind blow question or YMCA.

Mac: I think we're ready.

Jay: Okay. (Imitates drum roll) How many people in this room can honestly
say that 10% or more of their business up to 100, emanates directly from
either word of mouth or referrals? Raise you hand. Okay, I want you to
take a minute and figure out what that is as a percentage conservatively;
and then multiply that out times the volume you do, and then get a figure
in your mind, okay? Okay, you ready? I'm going to arbitrarily point to
people, and I'll call you out by color or shirt or something, because I want
you to say what the percentage is, and what the dollars are. And I'm going
to make a point that is going to blow your mind. Okay? You've got 30 more
seconds. Would somebody - oh we've got sparkling water, thank you.

Ready? Okay. Raise your hand though, if referrals - I guess, raise your
hand if referrals aren't a part of your business. Now, I would ask anybody
who doesn't have referrals why you don't have them. Even you Bob. I
would say there's something wrong with either - you haven’t given
permission to people to do it, they don't think you want it, or they don’t
see very much value in it, or they're embarrassed by it. You're as - I mean,
maybe they're embarrassed by it. I don't think you give them permission
to tell their people that might want to...something. There's some reason. If
you aren't getting at least some referrals, there's something wrong with
the credibility or the quality or the perception, or you're inhibiting people.
(Inaudible comment from member of audience) I wouldn't, but we'll talk
about that in a minute.

Okay, so those of you who get referral, I'm going to arbitrarily go around.
Gentleman in the striped shirt in the far end. Do you get referrals? How
much percentage? 40%? What's the dollar worth? Annual. $32,000.

Gentleman in the blue shirt with the beard. Yeah, do you get referrals?

Audience member: Yeah

Jay: How much percentage?

Audience member: About 80% percent.

Jay: Eight zero? What's the dollar?

Audience member: [inaudible 9:53]

Jay: A year? Okay. Gentleman in the back who wooed your either
girlfriend, or wife by teaching her to dance. Isn't that you with the beard?
You. Didn't you say you gave somebody your card? Well, okay, but do you
get referrals? (Laughter) How much, what do you think? Just give me a
conservative figure. 5%, 10%? How much? What's it in dollars? Okay, $17
million a year? A year right?
Okay, let's see. There’s somebody there with a yellow shirt and his hand
over his nose. I can't hardly see you, but do you get referrals? Okay,
what's the percentage? Seven percent? How much is it in dollars? Okay.
Who gets referrals that are least $500,000 a year more? Stand up.

Mac: Look to your right.

Jay: Stand up. Okay. I want to make a point. Those of you standing - and
I'll have all of you stand, but this will be just as easy. Or in fact, you know,
everybody that gets referrals, stand up. I'm going to make a better point.
All of you stand up. And the ones that you saw maybe do half a million or
more. Okay, all of you standing up, remain standing if you have in place
right now - even if you've been in Jay Abraham’s septor of influence for a
long time - at least one, systematic, formalized, year-round, constant
referral generating process system that everybody works at key-operative
times, that you monitor, you manage, and that you're really following
diligently? If you're doing that, remain standing. If you're not, sit.

We're not done, we're not done. Okay, so 90% of you sat down. The rest of
you standing up, remain standing if you have at least two programs that
you're working on continuously. Half sat. Three? Half again. Four
programs? Five? Virtually everyone but Michael and partner. You can sit,
Michael. Okay, now, we have looked at 400 industries. WE have found 93
unduplicated referral generating systems that cost you nothing initially,
some are monetary induced ...most of them are much higher planes of
intellectual compensation and psychic rewards for people who either want
to feel good about contributing or want to feel good about their own
purchase. The point is this: almost all of you who sat down who don't have
any, which is about 90%, and the 50% who got only one, and the rest of
you have maybe, on average, two and a half; probably spend a lot a hell
of a lot more money on advertising, on sales forces, on trade shows, on
every other form of let say, less performing marketing. Would you agree?
And that there's something fundamentally wrong with that picture, would
that make sense?

Because - and this is going to be the definitive when you're trying to

decide does Jay really know his stuff or not - you're don't to have to wait til
tomorrow at 2:00, you can decide right now, because I 'm going to make a
prediction, a hallucinatory, deluded prediction, Mac; and we'll see if I’m
really a charlatan and a sham, because I don’t' know it, or whether I'm a
lucky guesser. I believe that - see if I’m right as you go back down
memory lane, and conjure up an image of all the clients that you've
gotten on referral - that referral generated client; number one, buys
faster, number two; buys more; number three; doesn’t negotiate as much,
pays more towards full price; number three; buys more often; number
four, buys more things, number five; is more enjoyable to deal with, and
number six; refers more people; and number seven; is more profitable.
Am I right or wrong? (Audience replies, 'Right.')

Okay, so do you see how easy it is to grow - what happened to our three-
way model that was on there?

Rick: I haven’t put them back here, because we were...

Jay: Oh, okay, okay. I'm trying to show you how easy it is to get a 10%
increase. So far I’ve shown you two. Andy Miller, where are you?

Mac: And this is just one box in a list of...

Jay: Oh yeah, I’m just giving you the outer peripheral. I’m trying to show
you how easy it is to get geometric growth in your business.

Mac: Never even went near raising your conversion level of leads, for
instance.

Jay: Oh no, we haven't done anything.

Mac: This is one little.

Jay: I was trying to show you it's a no-brainer. That - and those of you who
we copied - one of the reasons I stopped selling seminars; we come up
with a nuance and Carl would talk to them and say, [unclear 2:!5]. and
Carl would say, 'Really?' And they'd say, 'yeah, I know all that.' And he'd
say, 'Great. Jay loves to hear people who are really doing stuff, will you tell
me the seven or eight referral systems you're operating and the 15 or 20
things you've tested in the last year? Maybe the - about the seven or eight
strategic alliances you have in place?' And they'd go, '(Coughs) My
mother's calling me.' (Laughter)

And this is like, really, this is - Fran said something about me which was a
great compliment but also it's my bane. I reduce this down to such
elegant simplicity that people here think, 'Oh, okay.' Then they sort of just
discount it because it's too simple sounding. I just showed you already -
I'm going to show you one more, and that's just a few, to show you how
easy it is to get 10%. Really, it's easy to get 40 or 50; I'm going to prove it
in a minute.

Andy's going to be on, screwing up your time, but you're going to be on,
and you're going to teach people that the singularly most powerful lever
you've got is consultative selling. I don't teach it. He does and he's doing
this just for us, to contribute, but he's a great person to go to for it. But
you can go to an Andy, who's the tops, you can go to get a book, you can
get a tape set, you can get a hack sales trainer, and if they're decent at all
- Andy would have to agree with this - you'll get a great outcome. Won't
they?

Consultative selling, properly understood, has got more leverage than

anything else. you want to make a comment? A little prelude to tonight? If
you put it in your - implement actuate and put a system in place - it's all
about systems isn't it? It's all about systems. Because my biggest,
disgusting element of most of the people that I’ve trained - I’m not
disgusted with you, I'm disgusted with the fact that you've got to - went
for them and went right back to the standard [unclear 3:53]. You didn't
start building on it and layering it.

Back at the three ways to grow business. But anyhow, Andy - Andy's going
to mesmerize you tonight; we're screwing around with his timeline a little
bit, but he's going to be so great, in spite of - okay, back to the three way
model, Rick. No pressure. Sorry, we have it backwards here.

So, I mean, I don't have time to go through all the elements right now, but
we will in a few minutes. In fact I will. How many in this audience who are
previous Jay Abraham attendees have used some of my methods to
increase your number of clients more than 10%? Raise your hand. More
than 20%, raise your hand. Look around the room. More than 30%, raise
your hand. More than 40% raise your hand. Double? Triple? Okay.

How many in this room have used this stuff to increase the size of the
transaction more than 10%, raise your hand. 20%? 30%? 40? Double?
Look around the room. These are because people did a little bit. How
about frequency of purchase? 10% more? 20%? 30? 40? Okay. Here's the
deal. If you've only got - put the next slide in. If you've only got a 10%
increase across the board, which I swear to you , in almost every situation,
time allowing to bring some people up here, will orchestrate for you. And
keep in mind, the greatest illustration; that is Costco, or Sam's Club; just
by letting people buy bigger quantities. They doubled or tripled or
quadrupled or ten-timed the unit of sale. And even if they only made half
the profit on ten times the sales, it's still like triple the profit they made
from the transaction. Does that make sense? Am I being too fast for
anybody?

If you've only got a 10% increase across the base, it's not a 10% - and
when it's extended, it's 33 and a third percent increase. And to a lot of
businesses that are marginal, that could be triple, quadruple, ten times; it
could be all the profit. Let's get a little more daring. Next slide.
Let's presume you went for a 33% increase in the size of the clients, and
that's not hard to get, because I gave you three elements that could
probably do that if you systematically follow them. Let's say you went for
25% increase in the size of the sale; and that's not even going to be hard
once you learn and follow the strategy and parameter - a lot you heard
but most of you don't really follow it to the T. We figured a 50% increase
was realistic because those people let clients buy at their own frequency,
which is not in their best interests. A simple model of reference is good.

I get my hair cut every two weeks. Why? Because I want to look like I got
my hair cut. I want to look my best. I want to look the most authoritative,
the most powerful, the most handsome - I want my wife to think I'm really
hot. (Laughter) I'm serious. I want to feel great about myself, I don't want
to feel like I'm looking shabby or looking flat or whatever. Most people
though, go about once every 6, 8, 12 weeks, which isn't optimal. They
don't know it; their stylist let them do whatever they want, because they
like the money; they're doing them a disservice.

As I'm going to teach you in a few minutes; I'm going to teach you the
strategy parameters, and it'll teach you to have a moral obligation, to not
let people buy whenever they want, whatever they want. But you have an
obligation to make certain they buy the maximum quantity, quality,
combination and frequency, so they get the greatest outcome, because
it's not about you making money. It's about them getting a great result.
about them getting the greatest result you could orchestrate for them,
and if you let them buy less, they're getting screwed. And you're part of it.
You're consciously perpetrating a bit of a sham, because you're stealing
productivity, profitability, protection, enjoyment, experience from them,
and you can't allow that.

But the model - because I'm attention deficit, I almost got on a tangent -
Mac, slap me. He throws me off and I go boom, into a table. If you only got
those increases, look what it would be. Never even - one double. The
doubling is because I don't think most people buy anywhere as close to as
frequent as they should for the maximum outcome - I mean, benefit for
themselves. It would be 250%. If you really went for doubles, which is not
impossible to do, it would be 800% increase in business. This is how you
engineer geometric growth, and it's only one of about seven ways we're
going to do.

Mac: And this is - let me just give a little insight to something you're
going to hear on Monday. The details. The reason there’s so many people
in this room is because Jay and Carl and their team managed to increase
what was the standard conversion percentage of leads for this kind of
program, from 1% to 10%. But - by using existing assets, and to some
extent, the magic of technology, so it's a little teaser for Monday, when
you hear in detail how they did that. But that’s a thousand...

Jay: It's going to be cool, I'm going to do a half hour on Monday morning
explaining exactly how we did it; the psychology, the construction of it,
the methodology, the technology and how it directly and explicitly applies
to each and every one of you businesses and how to run with the ball and
do the same thing in your business.

Mac: And a thousand percent increase in the conversion that was already
above industry average.

Jay: That's right, you're not lying. And the truth of the matter is, we have
about 25 people that didn't show up at the end, which is very
disappointing, because they stole places from people that could have
been here; we had a room that was bigger, but we literally turned down
20 or 30 people, and we stopped selling and most of the home studies
would have come live, but we couldn't put them anywhere; and that's
because of the message we want to [unclear 2:28] Okay, so...

Mac: We need to go to the next - just on a framing level - the next two
boxes in a...

Jay: I’ve already talked about that ...faster. I know, you're too slow.

Mac: No. Too detailed.

Jay: I always have to keep Mac speeded up because he's so slow. I mean,
understand...

Mac: If he's AD, I'm ADD.

Jay: Don't worry about it, we'll get you where you're supposed to go by
Monday. We don't always go - when we get started after something we
haven’t done for seven years, it's like a train. It's a little different out of
the track, and then you build momentum, but you don't care as long as I
get you there, do you really? And if you trust me, I'll get you there,
because I’m committed to it. I'm committed you're all going to get at least
$100,000 breakthrough, or you're going to get multiples of that by
Monday night, if you help yourself do it. I can't do it all for you , but I can
open up the spicket, if you guys want to drink from it.

Okay, next slide. Let's do the Power Parthenon. Okay, so now we're going
to do the next area of leverage.
Mac: You need to do the other two boxes, you haven't even touched on
them.

Jay: Oh yeah, I just told them that. But we're going to go...

Mac: Let's just do the slide, briefly.

Jay: You want to go back to it? Which one? He always does this to me.

Mac: Average transaction value, right?

Jay: We already talked about it though.

Mac: Okay.

Jay: Didn't I already talk about that? (Audience replies, 'yes.')

Mac: Okay. Alright.

Jay: I did, we just went forward and backwards again. I hurried through it
just to show that they knew it. We're going to visit the actual ways to do
this later; I just want you to get clear on the macro global elements and
how you engineer geometry into your business. So are you clear, or am I
confusing the heck out of you? (Audience replies, 'Clear.') Okay, good.
Okay, go to Power Parthenon.

The next area of leverage, which has been around for a long time is the
power Parthenon of geometric business growth, and it's broken down in
two ways. The diving board versus the Parthenon. I believe; and I've
looked at about 50,000 companies and Mac agrees with me; okay, that
most businesses in this country remind me of a diving board. In that 90%
of their business, by and large, is dependent on one approach and one
revenue source. It reminds me of a diving board. If you can envision that
being a diving board; the top being the revenue, the bottom being the one
lowly - even if it's generating a lot - lowly support beam that's producing
it.

First of all, I don't - my metaphoric analogists mind - I don't see a diving

board being a mechanism to propel you up permanently to growth. You do
go up temporarily, in the process of plummeting down. I see this very
dangerous. Even if you're making a lot of money. The moment any factor
changes in your business world, like oil prices double; they cost you twice
as must to make a sales call, competition emulates your selling strategy.
This is an example; we hypothetically said direct sales- for those of you
that can't read anything - but we just said a lot of people just have direct
sales people. How many people in the room - raise your hand - have a
sales force, either captive, salary, independent, manufacturer's rep; raise
your hand.

Keep them up if those people are comprehensively and professionally

consultatively trained. Keep your hand up if you trained them all in
consultative selling. Lot of room for improvement, Andy. Okay, raise your
hand if you have been trained in consultative selling. So it's about 14-15%
of the room. Okay. So this is my vision of what businesses look like today,
including Brad [unclear 5:40]. Here's (Audio missing)

It's dangerous. Number one; any change that happens externally could
screw you up. Number two; you're sales force could say, 'Hey, we got the
relationship, the owner - he or she isn't here, she's in the ivory tower;
when they started they did all these great things; now they're a
CEO/executive, they don't even know who the clients are, I got the
relationship, I can get anybody to [unclear 00:21] for me, or fund me. I
can go down the street with my contacts and make ten times as much.'
Do you think that won't happen in a world that [unclear] will tell you is
totally free-agent oriented now? If it's every man or woman for
themselves; no loyalty?

Number three; people who come to programs like mine and take action,
that 5%; will say,' Hmm. There's all these sales people that are okay
compensated, but that guy or woman doesn't have a clue about Jay
Abraham's stuff, I think I’ll hire those people and pay them a signing
bonus, and give them an incredible bonus if those people stay with me for
a period of time. They won't realize it; they're the real asset. I'll decimate
that person and triple my business overnight. And it'll cost me almost
nothing. Hmm.' Or any other number of things. You're exposed. you're
exposed.

Now, how much better off are you - next slide - if you add even 1more
element to your selling system to stabilize it? Let me just arbitrarily add in
joint ventures there, but you can see even visually, it looks a lot more
sturdy, doesn’t it? Next slide. What happens, however, if you really got
serious and built what I call a power Parthenon, and I say that because it
reminds me of the Parthenon in Greece - Rick, could we see the picture of
the Parthenon in Greece for one minute? Which you'll see that it’s been
around for eons, it's survived more changes or civilization, more military,
insurgencies, more acute weather, and the only real reason it looks even
that bad, is some imbecile used it as a munitions storage armament in
World War 2, and a bunch of rockets went off; it's so sturdy, it's still
around. Isn't that what you want your business to be like? Go back to the
graphic now.
So our goal for you is to broaden what you're doing with 8 or 10 more
pillars that you're not using, that will access the marketplace from
multiple streams, from multiple leverage points, from multiple impact
points. For example, and this is not limited to; we said in addition to direct
sales, what if you did telemarketing? Referral systems, joint ventures,
direct mail, advertising, develop a back end that you didn't have?
Endorsements, host beneficiaries; one of those are a little nuances which
we'll try to go into, time allowing, tomorrow. First of all - I'm sorry...

Mac: Email marketing, web marketing.

Jay: Oh yeah, we didn't finish. The point is, if you have all those in place
as profit centres, as revenue streams, as key strategic elements that are
being tactically deployed to reach your objective, here's what will happen.
Three things. Number one; you're going to criss-cross, pollinate, and a
force multiplier will take effect to certain markets. Because they'll all get
hit with the same thing, and they’ll move them. And that’s the thing we're
going to teach you about Monday morning, that Carl and I did with all
those emails and other things. Number two; you're going to penetrate
different segments of the market in different ways, and you're going to
open up all kinds of opportunities that can be integrated and evolve
forward.

Number three; you're going to hedge your bet. Number four; you’re going
to bring the power of geometry to bear another way. Why? Because if
100% of your business was coming from direct sales; but if telemarketing
now added another 5%; if referral systems now added, let's say, 20%
which it should because the average person's room got 20 or 30%
already, and they weren't even doing anything formal. They didn’t ask for
them, they didn't structure, they didn't give permission, they didn't give
incentive, both psychic and financial. If joint ventures produce 20, 30, 40%
- we did $1 million plus and made 750 in the last four months with Mr X.
All of you in the room; how many in this room came from [unclear 4:01]
raise your hand. Look around there. How many of you came from Oxford
Club, raise your hand. Look around the room.

How many of you came from Early to Rise, raise your hand. How many of
you came from - what was another one that we did? Robin's? Raise your
hand. Put them down. How many came from. let's see, Robert Allen? Raise
your hand. Which other ones, Carl? [inaudible] Joe [unclear], raise your
hand. Some more, Carl.

Gary North, raise your hand. Okay, all of you raised your hand, stand up.
Okay, it's going to be a little disruptive, but we haven't done this for a
long time. Go to the outer group - go anywhere away from your table. Go
round the wall. Go round the walls. I want to make a point; graphically,
you guys. Because we want to show you how powerful this stuff is.
[inaudible comment from audience 4:53] You could, you could. Because
the point I'm making - the principles are enough - the single principle's
fine - the main decision-maker.

Okay, look around this room and multiply those heads by $5000 that we
wouldn't have had if we didn't do other selling systems besides us going
through our list. Multiply those people times $5000, to see the graphic
implications of what I'm showing on that board. Does that make sense to
you? Does that make sense to you? (Applause) Okay, you can sit down.
That's really powerful, don't you think?

Mac: And if you would have gone down the list, they wouldn't have been
any more people...

Jay: Yeah, we didn't go down the whole list, by the way, there’s another -
but I'm trying to make a point. You do this - Gary North did 10 people,
Tony Robbins did 50 people, we did 400 people, somebody else did 50.
The cumulative effect though, incrementally, it cost 500 grand to do this.
At 501 I’m in profit, you understand that? At 600 I'm in pretty good profit,
at 3 million I'm in a lot more profit and you will be too but you gotta get
that intellectually. Does that - do you want to embellish that?

Mac: Only that that dynamic, it didn't take - once you had one affiliate set
up, setting the next one up is relatively easy. And it's just a question of
making a couple of phone calls. So it isn't as if it's quintupled your
workload. In fact it made everything possible.

Jay: And before you ask me, yes I will teach you how to do strategic
alliances and joint ventures tomorrow night, okay? (Laughter) Is that what
you were going to ask?

Audience member: Yes.

[inaudible question for audience member 6:26]

Jay: I do different things to different people. Sometimes I help them

market for nothing. I gave them what they wanted. I gave them what was
the best incentive to ethically - or like the people here. I mean, the people
that came and spoke for me for free, came because I made them a lot of
money, and I did stuff for them. It was fair exchange. Now, but the point
you gotta realize is that there's more to it.

Like, let me show you all the ways you can use this. It's the mind blow.
And these are just few. So you got these sales people in the field, probably
sub-optimal, cold-call, knocking on doors, don't have a good quality list,
don't have a pre-qualifying system, don't have appointment setting, don't
have anything, don't have anything you're milling out; you could use
telemarketing, which is the first category of example; to do a few different
things. Let me tell you - let me count the ways. You could use it to
penetrate markets that don't cost justify sending a sales man or woman
to. You could use it to sell products or services all over the world that you
couldn’t' really afford to have a facility for. You could use it to set up
appointments for sales people, you could use it to confirm appointments,
to make sure that they're 100% people [unclear 7:29], that we're ready
and allocated a time.

You could use it after a sale to upsell them more things. You could use
them - once you've got a client - to get them to buy more things more
often. You could use them to exclusively sell other products and services
that are VIP oriented. You could use it for post-purchase [unclear 7:46]
which is to avoid a cancellation. You could use it to reactivate , which is
changing attrition. You could use it for what, Mac? Telemarketing.

Mac: Well, you can use all of it for cross fertilization, because many of
your prospects and potential clients will be on multiple avenues
themselves, and if you do enough of these things, they get reinforced. If
they see a direct mail package, and then they see advertising, they're a
synergistic effect. Even if the advertising is direct advertising. So you
never know what modality people will buy into, or what is the confirming
third or fourth or fifth or tenth contact, than it's necessary to enclose, but
the synergistic effect of doing all these things is very high.

Jay: Also, the point is, the high probability that one of those is going to be
a home run is very high. For example, when you send a letter out - those
of you who send letters out - if you call behind it, you can increase yield
by as much as three to five or a thousand percent. Now, before you say it,
'Whoa, we can't get anybody on the phone.' we know that. But we take a
different attitude than most people. We think it's about leaving very, very
provocative, consistent, sequential messages, because you are having a
conversation with that person's voicemail, whether you acknowledge it or
not.

If you do referral systems, you found out that on your own, you're doing
ten to a hundred percent. What do you think would happen if you formally
tried to do it? Who is the person that came to the mike earlier and talked
about referrals went up 300%? Raise your hand. Or more. Somebody did.
Couple of you were here this morning, when you were talking about
something that happened beforehand? Somebody did, didn't they? I'm
sure of it.

Mac: Yeah they did, yeah.

Jay: It's 300%. I’m not saying you get 300%, but if adding that one pillar
got you 30% more; you're doing a million now, it's $300,000 with almost
no marketing cost. That may triple your income, and that's one thing. The
odds of getting a home run are pretty good. I have generated, for myself
and clients, in excess of $1 billion with endorsed relationships. $1 billion
plus. Probably two or three; I stopped counting. The odds of you getting
something if you do it right; we will teach you tomorrow night - or
tomorrow day, I’ve got to see where the schedule is - how to do it
masterfully. Got to execute. Got to drink from the well if we take you
there. But one of these is going to be a home run, don't you think, Mac?

And you don't care which one it is. Remember force multiplier effect? But
the point is...

Mac: And some may not work at all...

Jay: Yeah, who cares.

Mac: But that doesn't mean you need to do every single one, but you
do...

Jay: This is the goal, you're evolving towards this.

Mac: You do try to build several columns under you r roof.

Jay: Now I'm going to blow your mind and show you if you want - do you
like this concept of leverage? Upside leverage? (Audience replies, 'Yes.')
Can I take it a little higher? (Audience says, 'Please.') Okay, so now you
got your three ways to grow a business model. Now you got -red won't
work. Now you got your - this is like microscopic - look at three pillars,
right? Guess what you can do? You can build sub-pillars under each one.
Telemarketing; you can have a separate one doing lead generating
through sales field. So everyone's selling out of the market. A separate
one, reactivating. And each one of these can be - and it doesn't end.

And that's how - I'm merciless and ruthless about driving people to higher
levels of incremental performance and combining them to geometric
growth. Mac, do you want to make a comment?

Mac: I think it's sufficient.

Jay: It's pretty powerful, isn't it? (Laughter) Now, let's go and look at three
other ways; my 'R's,' that a colleague of ours that Mac and both have had
business relationships with, named Tom Phillips, believes in. He says
there's three additional ways. The first one...

Mac: This is the guy who, if…

Jay Abraham Mastermind Marketing 8

…you remember, ten years ago, took his whole company, and...

Jay: To Disney World?

Mac: Took over 2000 people...

Jay: you went too, didn't you?

Mac: Oh yeah.

Jay: He just rented like four 747's, but he took $1000, in about ten years,
probably to what, $400 million? Or something?

Mac: He took $1000 and as of at the 15 year mark he was a $250 million
company.

Jay: Two five oh?

Mac: And then - without any debt, any long-term debt...

Jay: He also bought a bank, didn't he?

Mac: Well, that's the thing - he's doing...

Jay: [unclear 00:44] programs, and this is like...

Mac: My wife works for him, still. He's doing it again. He's taking every -
just because he wants to; he's taking everybody on the Disney Cruise next
year.

Jay: It's probably cheap right now. (Laughter) It’s the weekend without
meal service.

Mac: I suspect he's renegotiated that, because he did it before; the

incidents recently. But he just wanted to do that, so... But he's a very
smart guy, he's wonderful...

Jay: We had him at the X-Factor, and here's his three ways to grow
business, which is somewhat different than mine.

Mac: This one is - this corresponds to all Jay's techniques.

Jay: Yeah, but you know what? He makes this -this is a disciplined element
of his business...

Mac: I went to work for him from a Fortune 500 company, which
pretended to do planning. And then I went to his company, which was
fraction of a fraction of the size, and they did real planning, bottom-up,
ground - just totally grounded planning. Everything specific, and they
made it happen, they drew it. You didn't go back the next year, or the next
six months and go, 'Gee, adding 10% to everything didn't work.' Which is
the modality in a lot of big companies.

Jay: But they had to present - all the managers had to basically - they had
to engineer a growth; it's got to be a predictable growth in the business,
then they got to present to the executive team, how they're going to do it,
and what happens if they don't and how they're going to do it anyhow.

Mac: Up and down through the company.

Jay: And they work backwards.

Mac: They spent a full month on planning, at least. And it works. And he -
he's a very smart guy.

Jay: Go back a minute, I want to use an analogy. You know the stupid - the
little balloons in our thing. Go back to that for a minute.

Mac: And you know one thing he did that was really fun for that...

Jay: And this is something - go back; and you've seen where he used to do
this?

Mac: With your...

Jay: This is part of optimization, but you've got to start with the end result
and vision in mind, then you've got to work backwards. What the heck is
the strategy or [unclear 2:39], what's basically the philosophy and mind-
set. You've got to work backwards. And what’s going to deliver? If you
guys don’t have a - I mean, saying grow our business 20% this year; if you
don't have it reduced down to systems and work backwards and look at
the highest and best way to do it and what's going to happen if you don't
do it anyhow, you're not going to get it. Do you think, Mac?

Mac: I think thinking will get you there.

Jay: Okay, go back now to Tom Phillips. So the first thing he says or make -
growing your existing product or service, a regular product - if you're a
one man or woman business, get yourself, find somebody here that you
can present to, annually or every six months, or get your accountant or
your attorney, or trusted friend, and make them hold your feet to the fire.

Mac: And what this means is if you have a success with something that
you figure out in the process of going through this experience and using
Jay's techniques, you don't just stop there. You hold your own feet to the
fire and keep on going, as long as you want that business to be yours.

Jay: What's the next one? Introduce a new product or service or strategic
alliance each year. He, every year makes sure he ends with up a new
product, a new service, a new market he penetrates. And it's ingrained in
his success strategy, isn't it?

Mac: Absolutely.

Jay: The third one is make at least acquisition each year. Acquire assets,
distribution networks; it's usually better than buying a business. Okay.
Introduce a new product or service or strategy alliance - it's supposed to
be strategic, it's a typo. Each year. The next one is make at least one
acquisition each year, and he believes in acquiring the assets or
distribution networks is usually better - I think I said distribution networks
- than buying - we played with it in interview that time - than buying the
business. For tax reasons, for legal reasons; but the point is, you can - one
of the greatest ways to grow your business - a lot of people in your
industry right now who probably aren't doing as well as you, even if you're
struggling. And you're all struggling, but some of you aren't.

And if you find out who's got a good reputation but making no money, you
could take over their clients, their business, integrate it in yours -
incrementally it might not cost you very much more to service them; you
could pay them a share of the revenue or the profits forever; they'd make
more money for doing nothing than they probably make right now working
12 hours a day. The could sell all their products, get out of their lease…
(Audio missing)

...pretty good salesmen or women in the beginning, you could put them
out to work in the field for you, and give them an incredibly generous
commission on the first and residual sales they generated. and if you did
that all day long, you could triple or quadruple your business. that's one
thing. Number two; you take products you've got to new market, you
could create new products for new markets.

Most people stubbornly, doggedly, and ostrich-like, steadfastly live in the

past; they don't really want to think about changing, growing, and making
the current success obsolete. But if you don't do it consciously to yourself,
guess what? There's somebody out there that's planning right now to do it
to and for you.

Mac: One of Tom's benefits of doing this, which is perhaps the hidden
benefit, is if you actually do go out and do an acquisition trip, go look at
properties, and the acquisition's in your business, you get to look at
everything they're doing, and what's working and what's not. So even if
you end up not buying anything...

Jay: The education is amazing.

Mac: You see the vendors, you get the vendor relationships opened up to
you; it's shocking really what some people will show you in the course of
trying to sell a business. And so even if you end up not being the
successful bidder...

Jay: you should always look at as many businesses as you could at least
examine all day long. It should be a great process you go through.

Mac: And as a head-hunter trip as well.

Jay: Okay then we have - now what’s next? We can't decide whether
that's a way or that's a - we've discussed whether that's just an extension
or that's just a way, because it's very interesting what it means. What do
you think?

Mac: It can be both. I mean it can be in some categories -

Jay: So we have a colleague -

Mac: If it's important enough -

Jay: We have a colleague who is Jay Abraham trained, who came here one
day and said, I've got a seventh way.' I said, 'What is it?' And he said,
'Accelerate the buying cycle.' And I said, 'Well, yeah, that's interesting.' He
said, 'Most people don't even realize the faster you bring them to sale, the
more they buy, the more profit they make, the more revenue you make,
the more asset value your business has got.' And, at least think about it
because you have control. These are the kind of variables - I feel...

Mac: the thing that distinguishes Costco from a regular department store
is turnover. They turnover probably ten times as much as a normal retail
operation. They only work on gross 8% margin, but it doesn't matter,
because their turnover is so enormous.

Jay: And truthfully, to all of you, I’m slowly trying to layer this, and I'm
trying to crock-cook you today and tomorrow; and then we're going to
build you into really formidable strategic systematic money-making sales
and marketing machines by Monday afternoon, but if just stop now, you
already get more things right now or re-remember - those of you that
have been introduced to - more things than all your competitors
combined. Does that mean that this is the easiest world to live in? No.

Does that mean that you're going to have fearless, ruthless competitors
trying everything possible, ethically and otherwise to bring you down? No.
Does that not mean that consumers are out there trying to marginalize
and turn you into commodities? No. Does that mean you have to accept
it? Absolutely not. You've got license with the stuff we're going to get into
now, it's going to just liberate you in such a light - what should I do next?

Mac: Ten marketing mistakes.

Jay: Okay, now, we're going to go through the fundamental - do we take

them to 20? [unclear 3:08] We [unclear] about 20.

Mac: 20, yes of course.

Jay: But we might back up because - some of them are not yet ready for
primetime mistakes. You can laugh. I like that. My ego is nourished by
laughter. (Laughter) Again. (Laughter) Little louder. Ho-ho, good, thank
you, thank you. Appreciate that. Okay, so we're going to go through two
things. We’re talking leverage. Jay Abraham is a very simple person. I
really am. I'm an opportunities’ although - and I'll be an ethical one. I want
to do the least I can and get the most I can get from it, now and forever
more. It's pretty simple. Am I right Mac?

Mac: Absolutely.

Jay: I'm a pragmatist and an opportunist, it's that simple. So we're going
to start with somewhere between ten and twenty. We created 20 but I
haven't pared them down because I was going to do it the day before and
I didn't. So I might pare them down as we're talking but to somewhere
between ten and twenty marketing mistakes every one of you; and
believe me; every one of your competitors are making. and this is
leverage 101. If they are costing you, if they are dragging your results
down if they are costing you [unclear 4:14], or reducing your outcome if
they are compromising your productivity, if they are depleting your profits,
and you stop doing it and do nothing more than stopping, what
happened?

Duh, as Mark Victor Hansen would say. Okay, so think about - is this hard
so far? It isn't really is it? Is it? Now, we're trying to get your mind set to
see how much more is possible and how much fun it is. To me life is one
joyous, playful game; not being disrespectful to you, but it's so much fun,
because no one gets it. And you've got glasses - we're giving you these
3D glasses and we're saying, 'Hey, let's go to the movies for the rest of
our business life.' So let’s look at some marketing mistakes in the core
[unclear 4:56].

Okay, number one; not testing all of your marketing ideas - and that isn't
even the best - not even testing all the facets. Mac, why don't you give
them the pallet of things and ways and applications.

Mac: You can test message, media - message gets almost all the
emphasis, but if you do a statistical analysis, and it'll show you it’s much
more important to test the list you're sending to the group you're
advertising to, than it is the message. The message has to be
appropriately matched with the audience that you're making it to.

Jay: Some is, but not necessarily where you'll find it -

Mac: What's that? Sorry I couldn't hear.

Jay: Yeah, it is an [unclear 5:34] but I'm not going to refer you to do it. We
want you to hear it, we don't want you to see it. If we wanted you to see
it, we would tell you where to go. (Laughter) That's not a double entendre,
serious. I mean, you won't get it the same way. If you hear it and you write
it down, you'll get it at a different level. The workbook will be with you
forever, and I'll have Rick give us reference points on stuff tomorrow, so
we will refer you to it. If you want to look through it and not be
concentrating at your prerogative - and I'm not trying to take anyone to
task - there's method to our madness. The mind learns better when you
write it down.

Mac: You may think it's self-evident, but the truth of the matter is I've
worked with dozens, if not more than dozens of direct marketing
businesses who are very sophisticated, and most of the time, all they test
is message, and they test small increments of where they're sending the
message to.

Jay: Now, again, poor Mac, I drive him crazy, because I talk, talk and then
I interrupt him. And I apologize from both me to you. I'm all about
leverage. I see something it's like, I see not dead people; I see live
opportunities. And I want to point out another insight I don't think people
see. There are probably, in the test pallet - what I'll call impact points; I
don't know, sometimes there could be 10, 15 impact points in an activity.

Each one of which, you could improve performance from 10, to 20, 100%.
Now, I’m trying to not be - really, ludicrously lavish, but I'm talking about
having five or ten ways to get twenty to twenty one times greater yield
from the same transaction. And that’s like, mind-boggling, isn't it? And I've
given some of the spectrums of yield the differences and testing of price,
and often...

Mac: The 2100% is a figure that comes from merely testing headlines...

Jay: That one thing...

Mac: And it's David Ogilvie’s figures that - a great advertiser and direct
marketer, and even in big campaigns, he's seen as big as 2100%. In all
honestly, we've seen infinite difference. We’ve seen nothing come back on
one headline, and profitable ventures come back on another. Bob Morrison
was a...

Jay: This guy did $21 million worth of books with a book titled 'Why SOB's
succeed in Business and Nice Guys Fail.' And SOB's was an acronym for
Smart Operating Business People, but he first came out with a tepid title
called 'The Entrepreneur's Manual.' He sent that out and got zero
response. He sent out the same mailing piece with the headline I just told
you, and he did £21 million, or $25 million.

Mac: Yeah, he retired on that.

Jay: Pretty big difference, but, by the way, those of you who don't do
direct mail. (Audio missing)

I'm like, that doesn't apply to me, I don't use headlines. You sure as heck
do. The headline is the opening phrase a salesperson uses when he or she
tries to get an appointment or make a presentation. It's the message you
leave on a phone. It's the subject matter, and/or also the first line in an
email. It's the signage at a trade show exhibit. It's the headline opening -
it's the statement on catalogue, it's the bold descriptor underneath every
sub-product in the catalogue. What else is there?

Mac: It's the tie you wear, it's the stamp you put on an envelope.

Jay: Well, you'd agree with that wouldn't you?

Mac: It's the car you drive, it's everything that catches or anything that
first catches someone's attention or doesn’t. It's the grabber, it's the thing
that makes - that focuses the attention on your communication, and says,
'This might have something in it for me.'

Jay: Do you remember - I don't remember their names right this moment,
but they're in Denver and they have a furniture store that does about $40
million. And these guys took my stuff to the M3 and they tested
everything, and they found out for example that one opening embraced,
when people walked in their store, predisposed 300% more people to buy.
Three times more leverage, just from people walking in the store, by
saying one 8 word sentence, differently. You want to guess what it could
be?

(Audience mumbles suggestions) No. Here's what it was; you'll never

guess it. It's this. 'And what ad brought you into the store today?'

Mac: Excellent.

Jay: So it cut through all the BS, took them right to it, they gave them an
education. But they tested like 25 different ways, because these guys took
this seriously, and they took a story that was doing like 3 or $5 million to
$40 million, in two locations; which is pretty good in the furniture
business.

Mac: You can test things like, at a trade show, if you sell through trade
shows. You can test where you put the front table, and the design of
whether or not you have a trap as a booth, or whether you have an open
booth. Or whether you have people out front, or standing back, or ...

Jay: Or whether there's a benefit in the signage, and bulleted features and
benefits on boards underneath, or whether there's nothing.

Mac: Or having real sales people or having career show people, who hand
out the balloons.

Jay: That's right.

Mac: You test all those things fairly fast.

Jay: And sometimes what we found - I mean, the tests I’ve done, 25% of
the successful results are totally counterintuitive. so you know what that
means is? If, like I was talking to Fran about his wife, holding her captive.
If your life depended on it, and you had to put money for the life a loved
one [unclear 2:55] your business, you couldn't necessarily know; and you
don't need to know. All you need to do is conservatively test and not bet
the store.

Mac: Case in point. With all the bank mergers - banks changing names,
changing names, and it's usually the big fish that gets to put their name
on something. Nations Bank bought Bank of America, or merged with
Bank of America. Hugh McCall was the chairman. Big ego, well deserved;
was about to - the whole world was about to see everything go Nations
Bank. They just decided to check, and did a survey on brand name,
acceptability, visibility, positive feelings, and guess what? Which name
came back stronger? Much stronger, by a factor of two. Bank of America
or Nations Bank?

(Audience says, 'America.')

Mac: And at the last minute they pulled the plug on Nations Bank as the
corporate title. Now, on the other side, you could look at all the phone
companies that have thrown away years of brand building and put funky
names on their companies and started from scratch. Now, what they're
paying attention to there, I don't know. But that's headlining too.

Jay: Where's Kim Henry? Are you still here? You're Kim? He was here
earlier; are you still here? No. Kim Henry's a friend of mine; he used to be
involved with Rough Times when they were at their peak, and by changing
one price from 129 to 69, was something like, quadrupled sales. And you
could - what are the other things? Write this down, by the way...

Mac: Well, we'll go through it.

Jay: And this is the things - like this is leverage 101 at the highest
magnitude; you got like 12 things you can test, and I'm going to show
something really cool, that is in the workbook in a minute; on this. Go
ahead.

Mac: It's - obviously, test price point. You can test absolute price point, or
relative price point. You can test...

Jay: We'll take turns; we'll play like, a game. You do one, I'll do one.

Mac: Okay, you do one.

Jay: You can test the offer or proposition.

Mac: You can test the format of your message, whether it be direct mail
envelope or on magazine, or even a postcard; you can test your format,
whether it should be in an email or...

Jay: It doesn't have to be written...

Mac: For instance, one interesting piece of information that a joint-

venture partner and I have discovered recently, is definitively email - at
least in his market place which is a business-to-business market place -
html e-letters were pulling three or four hundred percent, persistently over
[unclear 5:33], if you understand; for the plain type. That was totally
against what all the pros would tell you, but it's proved out over the last
six months so definitively...

Jay: But it doesn't work to others. I haven’t [unclear 5:43]

Mac: HTML?

Jay: Yeah.

Mac: You have to test, you can't make any absolutes. What other people
are doing is a lead...

Jay: It's indicative but not definitive; you've got to basically - you've got to
commit to be - and where’s Marshall? Marshall Ferber, where are you?
Come to the mike, and now's your big chance to do a two minute soliloquy
about innovation and testing, and it's relevance. Can you do that?
Marshall, say hello to everybody. I promised you guys this would be
exciting. Marshall has got a like, 400 IQ, and before you talk, he's got this
incredible dichotomy; he was the protégé of both Demi, and also
Buckminster Fuller. That's real (Audio missing)

...innovation, which is basically trying all kinds of wild and woolly

experiments. The others were about optimization, which isn't wasting a
cent. How do you reconcile the two? Hmmm.

Marshall: Well, the whole concept here; what got Japan - it's success; was
reducing variations and going through quality. Demi says what is
management in one word? What is a manager in one word?

Jay: I know now.

Marshall: Prediction.

Jay: Predictability.

Marshall: You know, and his concept was any statement devoid of a
prediction conveys no knowledge. So his whole idea was prediction,
prediction, prediction, and you won't get a [unclear 00:34], that's what
you want. That's why the Japanese cars - it's the second and third hundred
thousand miles that makes the difference between a Japanese car and
anyone else, because that's the way they designed it, to reduce the
variation. So that's one side. The other side is, it's innovation what's killing
Japan right now, because they're stuck in the paradigm of optimization,
not innovation. Now, that means the offers that you want diversity, you
want the greatest, most outrageous differences as you can get.

So you're looking a - you want to get the people that you really can't
stand, and put them in your room and actually pay them to be there, and
be a pain in the butt, because they're going to get a few things differently,
and it's really hard; because once you've got the idea that you're going to
go with, then what the heck do you do with that crazy guy that just gave
you - you want to fire? So the Japanese have killed their economy because
they have gone totally to the Demi theory of optimization, and there's no
new product.

The banks are sitting here; they don't - what are they going to do? So this
country being the model - see, there's no elegant way to innovate except
increase the variation and be a deviant.)

Jay: Be a - so this - give us a very broken down to an entrepreneurial

level; I’m trying to encourage people, they’ve got to test a lot of stuff.
Gimme some - gimme a prospective or a soliloquy on it from a different
focal thrust that'll move them to be so motivated that they'll go back and
do something.

Marshall: Like you say, nothing is proven until it's tested. And test the
craziest ideas you can...

Jay: And tell them some of the wild things that proved successful that you
never would have predicted.

Marshall: Well, who goes to a spa? You know? I mean, I didn't think truck
drivers would go to a spa, so...(Laughter) ...it turned out that they
happened to really like that. You know, certain pieces - I’m just trying to
say, that's as wild as it gets, that's not where I would expect truck drivers
to be - so how far out is that? I didn't even want to test that.

Jay: But do you agree with me; if you want to grow, you've got to
engineer breakthroughs, and breakthroughs are only going to come if you
try some wild and woolly things conservatively?

Marshall: The whole this is: hire that person that you can't stand when
they come into the room, because they drive you crazy, and they think
absolutely the wrong way, and you couldn't put up with them for ten
minutes, because you just want to throw them out; because how stupid
could they possibly be? And yet, that's the person who's going to come up
with the crazy idea.

Invariably, every innovative idea comes outside of the traditional norm,

and like it or not, all of us have out patterns and as long as we stay in that
pattern - what you're doing here is trying to perturb the system, let us see
outside of it, and the problem of course is that we're very familiar and
habitual. And a lot of things are good for a habit, but not in a world like
we're in now, when 10.3 billion people and - $10.3 billion was just reduced
out of the budget today, or yesterday in California. What does that mean
for people? Lots people are going to now what? Have to become much
more creative than they've ever thought about, and they've been in
employment business.
So, if you start to look at the variability being a blessing rather than a...

Jay: You've got to find it, and you've got to look for it, right?

Marshall: You've got to, and - the person that makes you so
uncomfortable, and makes a statement that you think....

Jay: I agree with you , but I think you got - we're trying to get these
people not just to higher that, but to internalize...

Marshall: Well, test it then, test, you know.

Jay: No, no, that's okay, but the point is, they got to be committed
ideologically, philosophically, and transactionally; that they've got to
engineer breakthroughs through testing a lot of supposition, and when
they get a winner, all it is is a better control to try to improve on, isn't it?

Marshall: Well, it - the thing about Ederson was, he wasn't really better at
his success rate than anybody else, the thing he did is he tested so many
more things than anyone else, so they looked at that team here, and his
ability to test was magnitudes higher than anybody else during that
domain. And his success rate wasn't really better than anybody else's.

Jay: Just his commitment and his prolific [unclear 4:23] ability...

Marshall: ....[unclear 4:23]stupid, and make things really stupid, you

know. He tried doggy hairs for his light bulb; he tried all kinds of stuff, and
none of it worked until finally something did. The point being, failure was
an essential part of his ingredients; so you know, 'I didn't fail, I just
successfully found what didn't work.' And that was his perspective; and if
you look at the great leaders, they never say failure is failure; they say
'We botched this, we had a false start, it was a glitch.' They don't say, 'I
screwed up.' They say, 'Hey, I just learned something.'

And your idea of testing; testing, testing, testing. If you start putting a grid
on this stuff - and if you go to Japan, which I've been to and I've spent
time - you know, I've carried Demi's book; his bags and his books.
Everything's about being perfect. And they're perfect now and they're
dying.

Jay: So what's the lesson for all these people? And what we're - tie
together what I'm trying to say with what you just said.

Marshall: Well, two things. Optimization comes after you've got the great
idea that's been tested to be true. Then you optimize the heck out of it;
but the beginning is just messy, falsely, stupid, and if you don't test, you'll
- it's nuts. It's totally nuts.
Mac: Yeah, there's a tension there between looking for the next
breakthrough and optimizing the process...

Jay: How do you reconcile the two?

Mac: Don't Jay, got it...

Marshall: ...it happened with Lotus; just take Lotus 123, right? They had
the - they went through - why? They weren’t heading new products. So a
good friend of mine went ahead and said, 'Well, look. Let's just now take
the first 40 people that were hired at Lotus 123,' because they weren't
getting any new products. 'And let's send them now through your
employment thing here, and we're just going to change the names but
we're going to keep basic resumes the same, including the president;'
okay? Not one even got a call back.

Jay: Really?

Marshall: It was the first 40 people; not one of them got a call back.

Jay: Thanks Marshall. [Unclear 6:03]

Mac: Alright. No, you need to...

(Applause)

Jay: Okay, next.

Mac: Power through...

Jay: Okay, before, earlier, I made another point. did I make my point? On
that? Okay, next one. Marketing mistake number two; running institutional
advertising. Most people don't understand that ads should be made to
justify their existence. There are two kinds of advertising. Institutional,
which is more in terms of - what do they call it? Tombstone advertising; it's
a declaratory statement: Mac Ross's Furniture Company. There's no
benefit, no call-to-action, no offer, nothing. It's just a declaratory
statement; 'Hey, we're here guys, you want to favor us with your business
for no reason.'

Then there’s direct response advertising and it's self-explanatory. It's

designed to telegraph a benefit, an advantage, make an offer, make a
proposition, provide a call-to-action, generate a positioning, imbue a
product to serve as a company with - to mention: to get a targeted
prospective client to raise his or her hand and contact them, visit them,
email them, come in, call in, phone it; whatever it is. When you run
institutional advertising, it's a crapshoot whether it ever pays off, and if it
does you can't tell.
When you run direct response advertising, it always pays off or you stop
running it and you get free institutional value in the process. It's pretty
self-explanatory; the way to turn everything into institutional - I mean a
direct response advertising, is make offers. Call-to-action. Offer people
assessments, reports, benefits, free consultations, bonuses, premiums,
incentives. Mac, you want to build on that?

Mac: No, because we probably should [inaudible 8:01]

Jay: That's okay, we'll do it. That’s fine. We're okay. What time is it right
now? We'll do two more and then we'll stop and we'll take a break, a little
break, at 7. Okay, so the [unclear 8:11] is run direct responses; not just
display adverts; emails - it's like everyone makes fun of our emails, and
yet our emails, to a little 17 or 18 thousand list, generates $7 million
worth of direct sales, and yes, we did lose about 200 mailers list who de-
subscribed; and when I looked up 80% of them, they never bought
anything from us anyhow.

Mac: Institutional advertising in essence, is any advertising or messaging

that doesn't ask for an action. Doesn't have to be a purchase action; it can
be an involvement action, it can be an information action...

Jay: Can be 'let us asses it,' 'get a free report,' 'come to a seminar;'
anything and everything lead generators do. Number three - caught you
off-guard didn't I? Three? Okay. Not articulating and differentiating your
business. Most people don't have a clue what makes their business any
different. If I asked you before you were introduced to me, why people buy
from you and not your competitors, half of you couldn't give me any
answer. The ones that would try feebly would say, ‘Quality, service,
dependability.' That doesn't mean anything to anybody. They're general
abstract platitudes.

You've got to be able to - and if you can't articulate why they buy from
you, you should feel damn lucky with whatever business you get. People
buy because they either see advantage or benefit in buying either from
them or in buying what you sell. If they don't it's only the luck of the draw,
and you don't have any right to retain them. Mac, you want to talk about it
a little bit?

Mac: Well, just that it's probably the most powerful and yet most elusive
question. If you are in a commodity business, you may not, in face, have a
unique selling proposition, a unique strategic positioning. It becomes your
job to develop one. You aren’t born with one.

Jay: Its good; it's a good point. Rick made a good point, because each
one's an independent business; you are unique because there’s a lot more
personalization, but it's only evident if you tell people. I’m trying to think
who we had - I was doing something with somebody. Maybe one of you
guys, last night, about something and it was so cool what they did, but
they never told anybody about it, and they were so shocked and they
started telling people about it, and their business tripled.

You know how when FedEx came out, they said - this is when everybody
else was just basically schlocky, undependable package delivery, when it
absolutely positively has to be there by 10am… (Audio missing) ...if you're
dissatisfied with any purchase, at any time, for any reason, you're going to
have a refund, a credit, exchange; no questions asked. You know how
when Dominoes came out, initially before the accidents, they said 'Hot,
fresh, delicious pizzas delivered to your door in 30 minutes or less, or it's
yours free.' You know how when Avis came out, they said, ‘We are number
two, so we have to do more and try harder.' That's a unique selling
proposition. That's a pre-emptive move that instantly articulates what's
different, why you're superior, why you get it, why people should deal with
you. You've got to move to make that - not just lip service, but deliver on
it, and instil it throughout your whole organization.

Next. Marketing mistake number four; not having a back-end product or

service. It costs you a fortune, a fortune, to acquire a client, a buyer. It
costs you almost nothing to add far more tiers of purchase, frequency,
and residual value to it. I can’t make this work exactly well, because I
don't know how to erase, which is pretty stupid. But it'll cost you a fortune
to get here. first - yes. Said black on it though. Cost you a fortune...to get
first...sale. (Laughter) I'm going to vie against - take Spar's paintings
down; I'm going to do a bunch of stuff tonight; we'll put them up, okay?
(Laughter) Works for me. (Applause)

Costs you nothing, almost to, at the point of sale, add to it. Costs you
nothing, almost, at the point of sale, to set people up to buy over and over
again. Costs you nothing to add new purchases once you have their trust
and their faith, and when you don the strategy [unclear 2:08], which we
will absolutely teach you in the next segment; you’re doing them a
greater service.

Who is the gentleman who came and said your business took off - the
radio guy - after you had to figure out the back-end? Where are you? And
you said it was millions of dollars, right? Okay, you guys - all of you - have
to work on the back-end. You either have a back-end or you should. there
are either other products or services you sell, and you're letting people
not buy, because you're not being proactive; or it's other products or
services that complement, precede, correspond to, or follow the purchase
of your product that you should arrange to make available to them
through you also, and make the lion's share of the profit on it. We'll get
into that later. Mac, you want to talk anymore on that? Did I...?

Mac: If you think that might overlap with increasing frequency of a

purchase or some of the other concepts; they do. They're not - they're
interlocking concepts, they're not -having a back-end is not just having
another product to sell.

Jay: I was trying to see if there was another board so I could - would you
erase this for me, Rick? Another thing that's really critical. I can't figure
out how to erase it. Another thing that's really critical. The more back-end
stream you've got, the more marketing money you can afford to invest to
acquire a client, to induce a sales person to sell; do you understand that?
If you're selling one product, and the product sells for $1000 and you
make £200 on it, and that's all you do; you've got whatever you can afford
of that $200 for advertising, for sales, for overhead.

If that's the first sale, and in fact, because you have seven or eight or ten,
or a lifetime of back-ends, and that's no longer your whole existence, it's
really your lead generation, because you've figured out how to get 25
more sales over the next three years, at an average of $100 profit apiece.
You just increased your allocable amount of money you can invest in
acquiring that client, that purchase, by 10, 20 times; which means you
can play wretched havoc with all your competitors that don't get that.

Mac: If you're a single produce, for instance, direct-marketed business,

you can't afford to be in business. It costs too much money to raise that
customer to have one product to sell. You need to have an array of
products before you can independently go in, 99% of the time.

Jay: But, you don't have to create them themselves.

Mac: That's right.

Jay: Thank God for creativity, ingenuity and stupidity. Creativity because
people create all kinds of things. Ingenuity because they go to the point of
formalizing them, producing them, creating them. Stupidity because they
don't know how to market them, and they're sitting in garages or in
companies gone bad, or in patterns that never get produced. All you got
to do is find somebody who's got something they don't know what to do
with, and you don't have to buy it from them; you could license, royalty,
joint venture with it; keep the lion's share and make so much money.

When I started burning out on my business, which I did, in about 1998 or

1999; I had about 40,000 people who bought about $50 million form me,
and I was tired; I didn't have the creativity to create another program. So I
went out to people all over, including - where's Chet? 'Hey Chet, do you
like that?' and I'd get the best stuff, and I'd package it together and I'd
negotiate fiercely and I'd get 70, 80, 50, 90% of the profit. I made millions
of dollars by bringing their complimentary products to my list, and
repackaging them and endorsing them.

There's so many ways you can create a back-end. You can be proprietary,
that you create. It could be a logical extension, it could be acquiring or
joint venturing other people; and I could get into this for hours; but am I
confusing or stimulating? (Audience replies, 'Stimulating.') Okay. This is
really big time. Corollary is create a profitable and systematic back-end,
and the triple corollary is create multiple ones. We'll do one more and then
we'll stop.

Mac: You may or may not know this, but Jay's whole career...

Jay: Before I became marketing guru.

Mac: Was that he found money in people's businesses.

Jay: I'd go to all these companies and all of a sudden I'd make them $10
million in windfall profits, because I'd found back-ends they didn't know; or
I created them, or I joint ventured them. I mixed and matched, and I took
a friendly share of the revenue.

Mac: And he'd go and they would say,' But we want to know how to get
new customers.' And he'd say, 'Well, okay, but we have a profit deal, so I
think we're going to do the back-end first.' (Laughter) And so they never
got back to getting the new customers part.

Jay: Thank you. Remember the David...

Mac: They didn't need them.

Jay: Remember the David Hall story?

Mac: Yeah.

Jay: We had this guy who had his newsletter. He was selling his newsletter
for $100. He had 1000 people, and he would only run ads if they broke
even. And I said, 'Well, did you ever look at the correlation between how
many people buy the newsletter, buy your investment products?' He said,
'No.' We looked at it; it was amazing, it's like out of 1000 subscribers and
$100, he had like 250 were buying on average, about $30,000. And I said,
'Dummy, you could buy them the damn newsletter, because your back-
end is that.'
So we went out, we bought 145,000 people on subscription, made him
$25 million on the back-end in the first year, selling his products and
services. But you’ve got to look at correlation. You've got to - as Marshall
said - monitor, measure, quantify...

Mac: Look for affinities.

Jay: So the corollary is always determine - oh excuse me. Last one. Last
one until we break. Not understanding your - should be clients - clients
and their needs and desires. See, one of the big problems; and it's more
exacerbated today, for those of us who are not willing to change; and I've
been one of those and I'm not anymore; is that what we think is valuable,
our client may not. (audio missing)

said, if we don't understand, if we aren't empathic, if we don't live in their

world, if we don't put ourselves in their shoes, we can't really play to their
needs. And I'll try to do a distillation of the strategy of pre-eminence in
some bullet points later tomorrow; I'll do the essence of it when we come
back, but I'll do a bigger - time allowing - tomorrow. And it has to do with
empathizing, with understanding what's guiding and leading them, and
until you know what they want, you can't play to their needs. Until you
can articulate and verbalize what they feel in their heart, in words that no-
one else has ever given, you won't own them.

Remember what we did - one of the greatest Masterminds we ever did;

and I try all kinds of things that we experiment with and forget to ever do
again. One of them was when we asked everybody what their biggest
challenges, frustrations, hopes and dreams were. Went around the room, I
wasted about - I thought - about 5 hours doing it and everyone thought I
was crazy, but you could see physically the countenance and their faces
and everything changed when they got it off their chest; the first time
they verbalized what they wanted to get closer to and what they wanted
to get away from. And it was liberating, because now they understood it. It
was like a weight off - wasn't it? Want to say anything?

Mac: I just want to say, when you take this break, and it's relatively
short...

Jay: Yeah, 15 minutes on this one.

Mac: Try for 10, and if everybody's back for 15....But concentrate on your
frustrations and articulating your top three - your challenges and
frustrations, so that you can share it with your table when you get back.
Jay: Yeah, because we're going to do it. Okay, break now for just 15
minutes max, okay? It's 7,come back at 7:15 on the dot, or before.
Thanks. Put some fast music on. (Audience chatters) [00:01:34.12]

I’ve just got to say, you're slow.

Mac: You're getting deeper, that’s the...

Man 1: You guys are so good.

Jay: That's Mac, I'm just following suit.

Man 1: Yeah, but come on.

Rick: So you guys have a couple of choices...

Mac: Five pounds of sugar and a two pound bag. How you doing?

Woman 1: I've always thought you guys were brilliant.

(Music playing and audience still chattering)

(Audio is silent [00:05:35.23] - [00:15:56.16])

(Music playing and audience chattering) [00:20:02.20]

Mac: We’ve got a lot of ground to cover. It's a long day. [unclear 20:20]
that Chet was talking about.

Man: Are we waiting for them to come up, Rick? Are we waiting for Jay? I
wonder if Mac wants to fill a little time. Did you want to fill a little time
while we're waiting?

Mac: I need to go get a tea, but do you want to put it on me and keep it
off, and then...? Okay, because I don't mind if you put it on me, but I need
to go get a tea. Or water, or something.

Jay: Are we having fun yet? (Audience cheers) I can't hear you. (More
cheering and clapping) Louder. (Loud cheering) Come on, come on.
(Whistling and cheering)

(Audience chattering [00:21:23.28])

[00:22:54.11]

Jay: Am I on? Am I on? Yes, okay. We're going to finish real quickly the
marketing mistakes; we're going to do a really powerful exercise that I
think will be very, very impactful. So okay, Rick, you want to work the rest
of them? We're going to do five more, then we're going to print out the
other 20 for you, because you're getting the general idea. The idea is you
are unintentionally, unknowingly, un-purposely restricting, limiting the
amount of clients, the size of the transaction, the frequency, the
aggregate profit, the ease, the success, the competitive advantage; just
because you're doing dumb things that you might not even thought of,
and if you just stop doing them and nothing else, it's upside leverage.

And that's a pretty exciting and liberating thought to contemplate, isn’t'

it? At least for me it is. Okay, let’s do the next one. Next one Rick. Okay,
stop. No, go back, I didn't see it. Okay. This is a really key element of my
philosophy; I'm going to do it very quick, because I want to get to the
point where we can do some fun things. You must educate your way out of
a business problem. You can't just cut your price. A lot of people get in
trouble, and they think just cutting price is going to be the answer. People
won't buy things unless they appreciate it.

I usually do an exercise that was pretty cool, and I'll try it again. Would
you like to buy my wife's Porsche for $65,000? He said no. My wife has a
Porsche that she just got and it has 1,000 miles on it. It stickers for
$135,000, but it was a friend of mine's car; it was a dealer, he tricked it
out. It's got about 25,000 options on it, there's only two other ones in the
country that colour and with that combination. One of them is a famous
rock star, the other is a famous actor. We turned down a price of $110,000
two days ago. Would you like to buy my wife's car for $60,000? (Audience
says, 'Yes.') You get the point?

You build it, you revere it, you demonstrably compare it, you demonstrate
it, you illustrate it, you analogize it, you metaphorically compare it; and all
of a sudden it has value, and you can't just lower price. Mac?

Mac: [inaudible 25:15] If you go in and make an offer, and that offer is
accepted immediately, what's your reaction? You're massively scared, if
not disappointed, because you figured you negotiate hard enough. But if
the seller comes back to you and says, 'Well, I don't think so, this is worth
so much more; look at the landscaping, look at all the new plumbing.' And
the negotiation takes place over time, and educationally you buy into the
value of the proposition, you're satisfaction is much higher even if you pay
a higher price, because of the education factor. Education is the pre-
emptive...

Jay: And that's what marketing is...

Mac: If there's one thing I learned from Jay is that education is the pre-
emptive factor in marketing...

Jay: Who gets my emails? Now, you may think they're long...
(Laughter) ...but I have a belief system which works for me. And it works
at training programs, it works with clients, it works for clients to their
prospective market, and it works in letters. I educate and tell the truth,
and I let them in to my method to my (Audio missing).

If I didn't tell you what I was doing here and why I was doing it, you'd be
judgmentally - you'd be critical, you'd be frustrated; but because you
understand what I'm trying to do, and it's in your best interests and I'm
working through it, and I'm changing as we go, and it doesn't matter what
format I want, I just want to get you the best outcome financially; you're
very appreciative and you're tolerant and you're having a good time,
aren't you? Big difference.

Educating people is what marketing is all about. Earlier, I think when I was
trying to explain it, I don't know if could hear it when I said it's about
basically educating them to first of all see that they have a problem, or an
opportunity they haven't recognized they could capitalize on. Showing
them what the impact of capitalizing it or not acting on it is, showing them
how you have the only understanding of how to exploit or protect or avoid
it; getting them to desire an outcome right away and getting them to
desire that outcome from you. It's all educational, isn't it Mac?

Mac: There's an old Latin phrase which is much admired by Classicists,

and is completely wrong. Its 'Race ipsa loquitur,' which means 'The thing
speaks for itself.' Well, even in poker, you have to call your hand, you
can't just lay it down. You've got to say what you're up to, you have to
explain what you're doing. People do not necessarily perceive the value in
your proposition without explanation. Marketing is establishing value
beyond the immediately apparent. That’s what it's all about.

Jay: So when you’ve got a problem, people can't appreciate it. One time, I
sold - I had a client that had two-three hundred thousand dollars’ worth of
inventory in jewellery, and they tried to sell it themselves and sold
$1,000, and I sold 100% of it out in about three days, by describing it,
explaining it, telling them what it was worth - it retail, and how they got it,
and I don't have time to get into this, but dozens of stories; but anytime
I'm called in to solve a marketing - excuse me - a business problem, an
inventory problem, a sales problem; I go to education first and foremost,
because that's an infallible and probably the most powerful friend you'll
ever have. Next.

Not making doing business with your company easy, appealing and fun.
Now, we aren’t perfect, because I don't really try to do seminars much
anymore, and even products, but anybody who's part of our 25 or 30 step
communication cycle had a lot of fun with it. You saw I was having fun
with you; I was trying to make it easy and enjoyable. Many people take for
granted the process of dealing with their client. You should step in your
client's shoes. You should try to buy from yourself; you should buy from
your clients. You should make a list of all the companies and al the
individuals that you love to do business with as a business and as an
individual, and ask yourself why and what?

Why you like it and what. Is Mike Bash here in the room? Mike?

Mac: He was in the back when I saw him.

Jay: He was in the back? Okay, well Mike Bash hopefully tomorrow - he's a
co-founder of FedEx, and he'll talk about really being sensitive. When
FedEx came into their greatness, it's because they realized that their job
wasn't to sell the CEO's; it was to make the CEO's assistant look good in
his eyes. And you've got to realize what your real goal is. What your real -
what your market really wants. What they need. What they value, not
what you value. You may think this is the greatest watch, because it's
smooth to the hand, it's this - I may think that that's not as important as
the fact that it's made out of 18 carat gold, and it's got a - the things that
are maybe not as relevant to perfection.

Also, a lot of times when people are not making it easy to do business,
they're not sensitive to making it easy to call to do it. I think that
voicemail sucks. I think that a lot of people who save money because they
don't want to pay for a receptionist are really dumb; because I think it
costs most high-ticket businesses....(Applause and cheering)...a lot more
than it saves them. Because you don't mind paying a premium to talk to a
human being who will listen. The greatest attribute you will ever cultivate
in today's economy is respect and empathy; I think. Mac?

Mac: Well, you have to perceive that - when you hire that receptionist;
and this is the mistake that a lot of businesses make; they perceive it as a
clerical job. It's the number one sales job for anybody who does major
business in their company.

Jay: It is, it's the first contact. They've got to be happy, they've got to be
so excited they get the chance to talk to so many wonderful people. All
the time at the office - where's Carrie, are you here? Where...is Carrie here
anywhere? Nobody's here. (Laughter) I bring them all, stand in the room
when it's [unclear 4:54], nobody's here.

Mac: It's like that restaurant you didn't want to go to anymore because I
said, 'Why don't you go there?' He said, 'It's too crowded, nobody goes
there anymore.' (Laughter)
Jay: It is, that's right. But my office looks forward to all the fascinating and
interesting people we're going to talk to. We look forward to how many
ways we’re going to help solve people's problems. Where's David
Wagenford, are you here? Anybody here?

Mac: Mike Bash is back.

Jay: Mike Bash, we were just talking - you're our hero, and you weren't
here. Too late. But David Wagenford is a mentor of mine. He's brilliant and
barmy, he's going to stretch your mind when you ever borrow a dime. He's
going to show you all kinds of permutations and spins and...

Mac: But let's get through these marketing mistakes. (Laughter)

Jay: He taught me this. The more problems you solve, the more empathic
you are, the more money you make. Next. Not telling your clients the
reason why. I think the most honorable, respectful, and powerful thing you
can do is let people in on the method to your madness. Tell them the
reason why you do things, you're doing things, what it means to them,
why you're doing it, how it's going to work. Knowledge is power. Give
them knowledge; they'll feel powerful, they’ll trust the person who
liberated them; think in terms of old civilizations; liberators got hoisted on
people's shoulders and lofted tithe highest pinnacle of stature, presidency,
rulers. That's what you'll get. Tell people the reason why and give them
the basis.

People won't buy, they won't sell, they won't take action unless you give
them competent, qualitative, compelling, logical reasons why, and
emotional permission to do it. Is that fast enough?

Mac: That's not just Jay's opinion; there's a very interesting book called
'Influence: The Psychology of Persuasion,' by Robert Cialdini, where he
demonstrates that working totally independently - what really turned out
to be Jay's concepts; they tested them in a social psychology setting and it
actually tested whether - how well tolerated it was for somebody to break
into the copy line ahead of - by giving no reason - for the spectrum -
giving no reason, to giving a totally nonsensical reason, because such and
such, and some really powerful 'because.'

And people break into the copy line with giving no reason half the time got
decked, and when they - all they had to do is say, 'Because,' and it didn't
matter what the because was. Because the acceptance of somebody
breaking in with just using the word 'because,' was almost as high for
'Because the planets are not in alignment,' to 'Because the CEO needs this
right away.' It made no difference.

Jay: But to your advantage, you have integrity, so you won't just
capitalize on that psychological power; you'll always affix it to a logical,
compelling reason, but people need to have a reason for doing things;
reason for buying, reason for selling, reason for going to work for you,
reason to marry you, reason to buy into your - whether you're doing it in
business and in your personal life; always - it is an immutable law. Next.

Mac: Only the Marines don't have to tell you why. (Laughter)

Jay: I'm going to use a close to home example. We get tired of things a lot
shorter than our market - a lot before our market tires of them. I used to
do car dealerships; it was hilarious. They'd get a camping that would work
like ad, and they'd get tired and change it. and one time I had a big one
and I worked through the numbers, and it showed it would take - we
figured out - like the LA Times and the readership of 3 million people,
there was something like 3,000 used cars sold a week; and we figured out
it was point something of the readers; and then I showed them that
people aren’t that excited about getting their hands all smudgy going
through the classifieds unless they're really ready to buy, and for that ad
to stop working… (Audio missing)

Jay Abraham Mastermind Marketing 9

Mac: ...avenue I've got, and he told me this great story about them
preparing a terrific campaign, spending months on it, and it went for final
approval, because it was some new concepts all the way to the top of
what was National Dairy - seal-tested that time; and the Chairman took a
look at this and said, 'I’m so tired of this campaign, we have to stop
running - we need to do something else.' It had never run. They had
already - it had been in-house the whole time. (Laughter)

Jay: So here's the deal, here's the deal. Once you start measuring,
monitoring, quantifying and improving, you never stop running marketing
that works. You keep running it and running it until it stops, and then you
stop running it only if, when and after you find something superior;
because once you know the lifetime value, the marginal net worth of a
client; which is how much you can allowably expect to make from them,
which tells you what you can afford to invest to acquire them, you may
even be able to make out like a bandit when you lose money on
marketing, but you don't stop anything when it stops working.
How many people here do direct mail? Run - do lead generating, direct
sale catalogues; raise your hand. How many do it like you've got a flight?
You’ll do a mailing a month or something like that; raise your hand. Well,
most of you don't realize if you mail a list and it pulls X, you could mail it
the next day and it'll pull 50-70% of X, and sometimes more than 100% of
X, and your job is to keep mailing and mailing.

Now, Carl, are you here? Carl? We did emails to the same list. How many
did we do? Roughly? Three. Me and you duplicated and a couple of times
you sent 20 to everybody. (Laughter) And he accidentally sent 25 once?
So we probably sent 40. Now, each time we did it, what happened? Didn’t'
we get another 40, 50, 500, 600, 1,000 leads?

Carl: Yes.

Jay: It's accumulative, sequential effect. Mac?

Mac: It's - this is - you just really can't say. Especially with doing direct
response, things work until they don't.

Jay: Okay we're not specifically talking about - I know...

Mac: And then sometimes they stop working; you suspend them for a
while, but you keep them around, because...

Jay: And bring them back.

Mac: It's the South will rise again, at some point, and that campaign that
worked before will probably work again at some point.

Jay: Yeah, but don't abandon just because you're tired of it. Okay, last
one; I want to tell the Gary Albert story, because it's good.

Mac: Oh yeah.

Jay: It's a great story about a colleague of mine that I hadn't seen for
years, but he used to do mail order seminars. He'd go around the room
and he'd say, 'Okay, let's do a hypothetical situation. We’re going to all
own a restaurant in Los Angeles, and we're giving each one of you a
singular advantage over everyone else in [unclear 2:42]. You get to pick
it.' What do you want as your advantage, sir? One advantage in a
restaurant in Los Angeles, what do you want it to be? Do you want the
only McDonald's, do you want the only all-chicken restaurant, you want
the only barbeque restaurant, you want the only restaurant - he's got - girl
with the fringe, what do you want?

Woman 1: Vegan.
Jay: Vegan. Okay, what do you want? One advantage; what is it going to
be? Okay you can have vegan too, you can have - something else. You can
have...? Okay, great [unclear 3:10]. What do you want? Best location. she
wants to have it at the intersection of four different highways. What do
you want? You're right. He wants a starving crowd, and that's what you
want.

Most people are the most lame at going after markets. You're profligate,
you're promiscuous, you're not discriminating about figuring out where
the best buyers lie. You don't even look at your own profile and your client
base to figure out who's got a higher propensity to buy and what kind of
demographic or generic types they are. Go where the buyers are. It's like
in the book we wrote, they said Willy Satin got - he was the great bank
robber, and they said, 'Why do you rob banks?' And he said...and he
said...? (Audience shouts answer) That's where the money is. (Laughter)
You should have robbed paper boys?

But it's really true. It's really true. Ask yourself - it's like, I'll tell you a story
about Brian, my son. Brian basically used to sell for Canon copier. He had
the Eastern quadrant of Los Angeles, he had no target list, he had nothing
known about him, and he was making eggs. I looked at him and said,
'That's the dumbest thing in the world. Go to the company, ask them for
profiles, demographic profiles, psychographic - whatever you know about
the kind of buyers, the kind of companies that have the highest probability
of buying [unclear 4:20] using them over again, where they are; get a
mailing list, organize it completely geographic.'

and he started doing that and he worked 40% and made about three
times more. It's not really that hard, is it Mac? Leverage is pretty easy if
you step back and you look at it pragmatically; it's pretty logical, isn't it?

Okay, now my question to you: Did anybody get anything out of those
ten? (Audience says, 'Yeah.') did anybody get anything out of the previous
part of this day? (Audience says, 'Yes.') Did anybody get anything out of
the interaction you've done with any of the people at lunches, at the meal
breaks, at the tables, yes? (Audience says, 'Yes.')

Okay, I want you to take, now, I want you to take two minutes and think
about what the biggest single insight, a-ha, revelation, implication; that
you're going to do different is. One; not a lot, one single, the most
important to you right now of all, that you've gotten so far from this day
and I want you to write it down. It could be from what I did, from what Mac
did, from what Brian Tracey did, from Mark did, from Chet, from me
joshing somebody; from anybody talking to you, from anybody sharing
their outcome, from any combination; it doesn't matter. One big insight
asset. Write it down.

You've got 10 minutes to present it to around the table. Each person's got
one minute or less; then each table, appoint a chairman or woman; and
you really only have 10 minutes, so if you don't get done, stop. And the
rest of you, you can do it at the break. Vote on the best single insight, and
that winner is going to go to the mike's and that's going to be how we're
going to conclude before dinner, okay? So you're going to share - yes?

Man 1: Do you want the insight and the application, or just the insight?

Jay: Whatever you can get in the one minute. It's up to you, but
chairman...

Mac: And if you can do, why not throw in the quantification too; see what
the...

Jay: Say here's what I’m going to do, it's great. But you've got to take a
minute or less, okay? Dave, put some mellow music on. Timekeeper?
Gimme two minutes and then yell at me, and then we'll take ten. And then
we'll vote and we'll get people to the mikes. This is good. Okay, put on
some Enya, low and quiet. Either that or Neon Dance, one or the two.

Mac: We got the Steve Alpen stuff?

Jay: We don't. I should

Mac: I think I have one - I'll bring one down from...

Jay: I like his stuff, he's nice...

Mac: You should his new stuff, it's great.

Jay: He's a very bright guy, quality guy. This is going pretty good. We
need a new timekeeper. Who's got a Rolex?

Jay: Got a chairman, make a chairman of the table, wherever you got to,
stop. Please. Okay, I doubt if you got all the way around the table; I would
encourage you to continue this process with whatever new group you
meet at dinner, and I would encourage and recommend that you do not sit
with anybody you already sat with anytime today, including the ones you
came here with, but whomever has done it so far, if you have a chairman,
appoint what you think was the most universal insight, that if that insight
were shared at the mike, for everyone else to hear, they would get a killer
expanded perspective on something they may not have thought about
that's very valuable to their business. Choose that person, an then raise
your hand when your table's ready.
Okay. This table, this table, this table in the back, this table go to the mike
over there. Table in the back, got your hands up, you go to the mike. You
guys go the mike that are waving. You guys, send your person to the mike.
You send your person to the mike. You send your person to the mike. You
guys in the back, send your person to the mike. How many do we need?

Mac: That's good.

Jay: Stop there.

Mac: For now. That's good for now.

Jay: One, two, three, four, five, six...it's good. Okay. Talk real quietly, come
on. Vote quietly. Okay, sir? Take a minute and a half and share your insight
and what you're going to do with it, okay? And the kind of business you're
in. Okay, shhh, shhh, please quiet.

Man 1: I’ve been selling eBooks online for the last four years...

Jay: EBooks, okay.

Man 1: And I've been throwing away these marketing techniques for
about four years, but my biggest insight today was how you can
repackage the same content over and over and over again, such as taking
the content and selling it as a seminar, a video, tape series, a newsletter,
a transcript.

Jay: Great insight, great insight. What's the implication to everybody in

this room?

Man 1: so you can take almost anything that you know, and package it in
multiple formats.

Jay: Great, brilliant, good. Thank you. (Applause)

Woman 1: My name is Debra Delosario, and I’m in the entertainment

business; I create television and film. And what I - develop our franchise
properties, and what I realized was that even though I had sold an old
franchise to a big studio, and they had exploited it, and I got to do that
and express all the different areas and the multiple platforms it could go
out on, and now I had created a new property that I was developing and
building; I realized that I have a huge fan base that I can go back to,
create something that relates to that brand, up - bring the fans back to
the table and say, 'And now I’ve got this for you.' So it's a direct line to go
to an established brand, and then create a new brand based on the next
property, and on the [unclear 3:15].
Jay: A lesson for everyone who has got their pen pensively in hand,
waiting to write is...

Woman 1: I'm sorry?

Jay: The lesson that you want - you can teach...

Mac: for anyone else.

Woman 1: Oh, that once you establish a following, once you establish a
fan base, they know who you are, they know they quality of your work,
they know the soul of your work; that you can go back to them at any
time, give them more of what they loved from you in the past...

Jay: And they're eager and appreciative.

Woman 1: Exactly, because you're giving them more of what they

already love.

Jay: Great insight, thank you.

Woman 1: and then move on to the next one.

Jay: I'll move fast because I want you guys to go to lunch - to dinner.
Good.

Man 2: I'm in communications, and so far everybody I've met with has all
done something similar, relative in one way. That we all related to three
things Brian Tracey said. Action, solution and future orientation. Well, we
all in our businesses have forgotten to do certain things; we all come back
to the same three fundamentals that we need to address.

Jay: Good. Okay, I love it. Thanks. But wait, I just wanted to see how many
different perspectives there are, and why and how it's so important to
plumb the depths of perspective that everybody in this room has got the
capacity of sharing with anybody else, and everybody else, because it's
going to broaden your mind set and open your paradigm to so many
hybrids you can combine together. Just blow your competitors out of the
market.

Woman 2: I've been writing a newsletter for eight years, and I’ve got
about 5,000 or more - no 25,000, sorry, people who I've marketed to who
have, at one time or another, been a subscriber. And I've got all their
names and addresses. Every now and again, we send them a card and we
find out that they've changed their address or whatever. And I’ve got a
book that I can take out of my newsletters, that I've been itching to do,
but I didn't think I could market it. Now, I know I can market it. (Laughter)
Jay: That's good. That's great, that's good. And you know what, it’s like
Bob Allen, who you'll meet on Monday morning I think, and there's about
25 or 30 or 50 people here from him; maybe you're one of them. They're
all looking for books and things to sell. You can also take it to all kinds of
complementary markets and joint venture and licence to them. Great
insight.

Woman 2: I don't know if they'll want mine though.

Jay: What is it?

Woman 2: Death by Prescription. (Laughter and applause)

Jay: Ohhh.

Mac: Well, you never know until you ask.

Jay: Give it up. Go ahead.

Woman 3: Muriel [unclear 5:44], I have this little bitty kitchen store in
Phoenix, Arizona, and I have a killer mailing list, every one of whom has
been in the store. I mail them once a month, courtesy of Jay's marketing
strategies.

Jay: Muriel’s a great student. How many of our programs have you been
to, or...

Woman 3: Well, I kept telling people it was six, but actually it was seven.

Jay: Has it helped your business?

Woman 3: You kept me in business, Jay.

Jay: But she really applies it, she's not - she doesn't fight it, she just goes
out and tries stuff; it doesn't all work but she's built this incredible
personality and voice and relationship with her market. It's very
impressive.

Woman 3: You know, one of the things about the programs, Jay; I always
felt that the million dollar; the silver bullet; was not for me. But I worked
really hard at instituting all the detail, and it just works. Anyway, I’ve got
these fabulous relationships also with all the top chefs in Phoenix, who like
to come and do cooking classes for us, and you know, it's just kind of
obvious, isn't it, that they need customers; they're all hurting for
customers in their wonderful restaurants nowadays. I've got this gorgeous
mailing list and I pay them a lot of money...

Jay: They all love food.

Woman 3: Yeah. And I pay them a lot of money to come do cooking
classes for us, but I'll bet that they'd be delighted to have the use of my
mailing list under my auspices of course; to come and do free cooking
classes for me.

Jay: That's a great point. That's great, I like that. Lesson to everybody else
is...?

Woman 3: Use your relationships; think about the host beneficiary

relationships and how you can benefit somebody else by using the assets
that you have.

Jay: Good.

Man 3: At our table, we have real estate; we've got electronic

manufacture, we've got marketing, we've got mortgage, we've got
medical. We all had a variety of insights and we've all decided that we've
tried lots of things before and it hasn't seemed to work, so
implementation is what we're focused on, specifically when Chet
mentioned about the three P's. By using the three P's - and that'll only
happen if we individually possess more passion than our staff has
resistance. Because most of us have tried things before; all these great
ideas, and never gotten them off the ground, and the reason why is our
staff beats us down to the lowest level of them. If we have sufficient
passion, then the staff will win because we will win by overpowering them.
If we allow them to drive us down to the lowest level, not only do we lose,
but they lose as well.

Jay: That's great.

Man 3: Implementation, the three P's, greater passion.

Jay: Great. That's great, and tomorrow you'll be really good when he
concentrates on the two most leveragable elements of his whole
methodology. Thank you.

Man 4: My name's Jim Ford, I'm in communications. The one thing we

talked about was - and the one thing that I’ve got now, is this changing
the focus of our employees in the company that are dealing with
customers, from something that's negative and apprehensive about
making a mistake, or trying to solve a problem, to finding a good thing
with the problem so they can solve it; and also if they do make a mistake,
use some kind of positive feedback to them, so that they don't make that
mistake again.
Jay: Great. Thank you. And Mike Bash will be very, very impactful to you
tomorrow. Next.

Man 5: Hi, my name's Lou Altman, I’m the president of Globefone, and we
help international business travellers frustrated with cell phones or
satellite phones that don't work where they're going. We're going to
increase our revenue this year 40 to 50% by doing nothing. So I have
eleven words. It's not rocket surgery, you just have to do it. Any of those
strategies, anything at all, is going to impact our business at a measurable
scale, because we have done nothing in the past. And it's common sense,
right? (Laughter)

Jay: You're talking to the choir here.

Man 5: It's a one word answer: Duh. (Laughter)

Jay: Alright, thanks. Great.

Woman 4: Hi, Yvonne Batten again, and I promise this was not my idea to
be up here; my table asked me to come up here and speak for the second
time.

Mac: My table made me do it, huh?

Woman 4: We have all been impacted across a variety of levels over the
course of the day, and let me say thank you to all of you. You are
wonderful people, and I am learning by leaps and bounds over the course
of just this one day; I’m looking forward to the rest of the seminar. I was
really impressed and touched when Mark Victor Hansen was talking about
doing lots of things, because in addition to the fitness business with the
exercise videos and the workshops, and the radio show with my husband,
I also have a line of children's books and songs to go with them, and I’m
working on another book for grown-ups as well. And I spend so much time
working in the business; I'm doing the writing, I'm doing the singing, I'm
doing the teaching of the classes, I'm talking on the radio; that when Chet
got to talking about on the business, it was like, duh.

I have no three P's. I've done no planning, I've got no policies, I've got no
procedures. So literally, every time it came to us having a workshop, my
husband and I would say, 'Okay, who's in charge of the sound system,
who's in charge of getting the flyers out, who's in charge of writing down
who's coming so we know how to contact them again?' Literally, every
time we do something, we start from ground zero, which is my most major
marketing challenge, because that's the name of my fitness video series;
and of course, after September 11th, nobody wants to see any program
called 'From Ground Zero,' on their store shelves. (Tentative laughter) But
to a person at our table, the three P's are what impacted us the most.

Jay: Good. Thanks a lot.

Woman 5: Hi, I'm Linda Slocomb, I teach people how to invest in

government securities that have high rates of return, high level of safety
backed by real estate, and I teach them how to do this from the comfort of
their home using the Internet. And one of the key things that we felt that
our table was the primary focus, was the follow-up, and the planned
method of follow-up; and not only following up by one method such as
email or phone, but combining multiple methods: phone, email, snail mail,
lumpy mail; altogether, and creating a defined pattern of follow-up.

Jay: Good, thanks. I was looking - guys, even if you're a little tired, make
those pens work, because if you don't imply and - implication this exercise
is a waste, I just basically mined 650 people, found the most important 50
insights so I basically compressed it down and articulating what it is.
Please force yourself to make an interpretive comment, and start doing
this the rest of the day. You'll appreciate me for forcing you. Thanks a lot.

Mac: Or if you have a contribution for these people, pass it on.

Jay: Yeah, pass it on. Yeah, write it to us, and we'll bring it out tomorrow or
later tonight. Mac's going to do a lot of work with you. Go ahead.

Woman 6: My name is Sarah and I've been a business manager of a

seminar company, and we bring big speakers to our community and
produce events, and we also have our own in-house business
development seminar, which is sort of a microcosm of what we're doing
here; called the 'Successism that Never Fails.' And the theme that
emerged from our table was systems. Whatever the problem is, it is
creating a particular system for handling that that is the solution, whether
it's the three P's, or multiple streams of revenue, so you have the pyramid
instead of the diving board; but the system is going to be the solution for
your business. so take the time to solve the problem, knock down the
target, create a system for getting referrals, create a system for your
marketing.

Jay: That's good. That's good; that's very impressive, I like that one. Sir?

Man 6: My name is Franklin Sanders, I'm in the physical gold and silver
business, and I publish a newsletter about the gold and silver markets.
And the thing that we talked about was that it's easy after you've been in
the business a long number of years, to become jagged with it. So that
you fall out of touch with you original passion; it's just like being married,
you have to stay in touch with that original passion...

Jay: Great insight.

Man 6: And if you lose touch with it, then you've got to go back and for
your customer's sake, you have to put together a program that gives -that
works him through step-by-step, what he needs in the way of information,
and then implementation.

Jay: Good. I like that a lot, thank you. This is good. I hope people are
writing notes and thinking about the implication to them.

Woman 7: Hi, I'm Susanne McBrian, I'm an emerging visual artist, so in a

lot of ways, I'm coming here at ground zero, wherever you are; with no
clients and - so part of what I’m coming away with is my personal insight,
is - and I'm looking around the room and I'm thinking, how much more
energy is there in here because there's beautiful art on the walls? My god,
I could do that. I have so many friends who do seminars and other sorts of
things like that, that I could just help beautify their presentation. If I get
sales out of that, that's really cool. And you know what? I know a heck of a
lot of other visual artists who are also just dying for exposure. I mean, this
is in the - what you really want are sales, but a lot of people just simply
need the practice as an emerging artist, at getting an exhibition together;
at getting stuff framed; getting it on the wall, and talking to people as
they come by and look at their artwork.

That's my personal insight, and it’s like, 'Oh my gosh. I can do this.' and
I'm coming away with such a great deal of hope, and I think that the most
common insight that I was gathering from our group at the table was
simply, we're finally asking the question 'how?' and getting a lot of relief
in the sense that you're finding answers in amongst a very safe,
supportive environment, with your peers.

...at my table suggested, 'My gosh, why can't my clients become my

peers? I can use the education process to have them become part of the
process instead of me versus them.'

Jay: That's great, thank you.

Man 7: My name is John Barr, and our table thought that the statement
about breakthroughs being a driver for change, made a lot of sense. We
all are creatures of habit, it's hard to search out of our areas of expertise.
But if you meet people, or just work in different areas; that's where growth
- not totally, but that’s where growth can occur. Very positive.
Jay: Good, good, [unclear 00:47]. Okay, that's great, thank you. And you
should all take a page from that. Thank you very much.

Man 8: My name is Mark Walker, and we have a construction material

wholesale business in Portland, Oregon. We started in 1994. In the late
90's we came across this X-Factor program that Jay had put out, and we
bought a home study version and implemented, very systematically, the
things that we learned from that.

Jay: Has it worked?

Man 8: We just missed the Inc. 500 by 15 percentage points.

Jay: Wow.

Man 8: So it was very dramatic. And it was a systematic approach to

developing prospects, customers; cultivating those customers, following
up routinely and continuing to work those systems day after day, that
produced those results. We stopped doing that because we got so busy.
And we plateaued. So as we surveyed the table, the general thing that
came out was, you've got to return to a systematic, consistent approach,
test it, make sure it works, and do it time after time after time. And don't
stop doing it when you're successful.

Jay: Great, thank you.

Man 9: I'm Will Bonner, and I work for Early to Rise. some of you might
receive that. There’s the often ignored referral program, which I was
realizing that if only 2% of our subscribers referred us, we'd get 1400
names. these names are valued at around $40 apiece, so that's like
$50,000 that we were ignoring, and it could be a really profitable thing if
we just do a couple of programs.

Jay: If you have good will, and do you have people who trust you, and you
trust them, and you're really dedicated, and you don't put together
systems to encourage and help them make it easy to refer quality people
they know they work with, that work for them; shame on you. It's a great
insight, thank you.

Man 10: Hi, my name's Joe Shank, and I'm president and CEO of Software
Safety. We do software quality consultant in the pharmaceutical industry. I
guess a common theme at our table really reflected on Chet Holmes'
comments on the three P's, and actually, part of our consulting process is
doing policies and procedures for pharmaceutical companies with respect
to their computer systems. But we don't have policies and procedures
ourselves, for sales. And consequently our sales are kind of one
dimensional, so if we have a sales failure where a customer rejects talking
to us, or rejects a proposal or rejects anything, we pretty much move on
to the next one. And it's pretty expensive proposition, so our biggest
insight was getting some procedures to handle sales rejections, to keep
finding ultimate ways to convert them to the next step.

Jay: Great, thank you.

Man 11: My name is Steve Bourne, I work for a company that designs,
markets and sells nutritional supplements in fields - primarily to
endurance athletes. And I think what we learned, or what was universally
accepted at our table was the need to rely not just on one avenue of
marketing, but on several. And I know for me and our company, what I
found happens to me is, one areas of marketing works so successfully that
I or the company tends to neglect other areas that we either have not
tried yet, or that have already worked, and we maybe - it's just we get the
blinders on or we get more complacent and we rely too heavily on just one
area of marketing, and I think our goal is to implement more areas of
marketing, so that we can garner new customers and reach our old
customers. I think that was the thing...

Jay: What do you think the lesson to everybody is?

Man 11: Don't rely just on one area of marketing, test everything, take
some risks, and you know, when something works, don't neglect or forget
about the other things that have worked. Go with everything.

Jay: Great. Thank you. I want to go fast only because I want to get you all
done; I've got to set you up for a really powerful dynamic tonight. Good.

Man 12: I'm Jack Klein, I’m in the commercial real estate business, and
our table basically felt that referrals, which is largely uncovered and - one
thing we should probably do is first account for what the value of a referral
is. My own personal case; our referrals are worth about $25,000 apiece,
and we don't have a formal referral program. Frankly, we have
implemented Jay's ideas for an extensive period of time, and we have
great new client acquisition programs, great follow-up with existing client
programs; but we don't have a referral program. We just accept what
comes to us, so I think the biggest motivator is determine the value of one
of these things, that's very easy and tangible to see, and say get off your
butt and get something done. Thanks.

Jay: Great.

Man 13: Hi, I’m Cliff Johnstone, with Adrian Designs. We manufacture gold
chains here in California. The thing that came up at our table was using a
multiple approach on a certain attack, and the one idea that come up is
with trade shows, we never know exactly what it’s going to get to attract
somebody to a trade show. So we've done - instead of doing one mailer or
two mailers, we're doing four or five different mailers to the same crowd,
and it's amazing which particular one actually people respond to. they
don't come with it - and even we're surprised ourselves as to which one
they respond to. And to sort of continue to multiply on that. Because I
think we're...

Jay: [unclear 6:30], your good credit, you're down doing lots of different
integrated things, aren't you?

Man 13: Right.

Jay: And the Kimble effect is very powerful.

Mac: How big a difference between the five different...?

Man 13: I'd say there's a 30% increase in just attendance. Just from
using...

Mac: But you found a big differential between the various pieces?

Man 13: You mean one piece over another one? Yeah, it shocks us that
sometime everybody will come with one or two, and the other ones not at
all.

Jay: Pretty good if you're doing multiple one, isn't it?

Man 13: It's good that we did.

Jay: Okay.

Man 14: My name Steve Krause. Our company develops health and
nutrition products and skincare products; it's definitely high quality;
they've got an oxygen-enhanced base, and I've been spending so much
time, over the last six years, working at the business, that I've forgotten
my first passion, which was marketing and sales. And I have to tell you ,
the problem with the greatest paradigm was realizing that I haven't been
taking care, not of my customers, because I do that; but I haven't been
taking care of myself, in coming to events like this to realize there are
others who can be incredible resources. And I think that's probably the
thing that I can take away from this; is that don't forget to take care of
yourself.

Jay: Great, thanks.

Man 15: Yeah, Chris Wray, with ICC Business Products, Indiana Carbon,
and we deal in supplies - we do supplies from ITDP, all the down through
office supplies. And I was just overwhelmed here; and our table was; with
so many ways to make money, it just amazes you with all there is. But
what really hit me, is the referrals and the hands going up all over the
room, and then these people saying it was like 10, 20% and up, that they
were generating from referrals. And I've got a database with thousands of
people; happy customers. Some people have been buying from me for 20
years. Never have asked them for a referral. There will be a referral
procedure in place at my company, by the end of next week. (Laughter)
Thank you. (Applause)

Jay: Great. Carl...is Carl here?

Mac: Yeah he's right there.

Jay: Do we have, in the tactical force, do we have referrals in there?

Carl: Yes.

Jay: So we're giving you, on the last day, like four of five hundred page
tactical, and it’s got 93 referral systems in it, I think. So you'll enjoy that a
lot.

Mac: Literally, 93.

Jay: [unclear 8:49], talk and transcribe; I've spent a lot of money putting it
together and transcribing it for you, because it was a tape thing. So you'll
get it, and it's like 400 pages, just 'here's the tactics.' So you'll enjoy that.
(Applause) Yes? Wait a minute, it's not working. You've got to pay
attention, Dave; the guy's over here.

Carl: [inaudible 9:06] your grounding material has a better program.

Jay: Then, okay, so you've already got that in there, use it. We'll talk
about - Carl, just write it down for me, we'll talk about it in the morning.

Man 16: Hi. I think that one important point Brian Tracey said is that
successful people fail. If you fail, you're not a loser, and it's very important
because a lot of people, they don't start because they're afraid to fail. But
it's part of the process, and you just learn from it. Move on.

Jay: Great. See, testing; there's no negative. If something doesn't work,

you can almost be gleeful and say, 'Well, I don't have to spend any time in
that direction, I can go over here.' Do you remember - a lot of people that
are my age or older - I’m going to be 54; when we were kids, you would
get a toy robot. And the robot would hit a wall and do a quarter turn, and
hit another wall and do a quarter turn. If I point it over there, it would go
out that door if you gave it enough time to test and adjust.

Use that as a metaphor; you're just getting closer to the answer, do you
understand that? Just never believe that you should drop a lot of money or
a lot of expectations; test lots of things, don't be judgemental, don't try to
wish for something; just watch and just assassinate what works and what
doesn't and run with wind; and cut your losses on the losers, and you'll be
massively successful.

Man 16: No offense to Jay or the other speakers, but I think the number
one thing in here is the energy. You look into people's eyes, and they've
got that passion, and that hunger, and...

Jay: We’ve cracked that element.

Man 16: I love that part. And I guess when I go back, that's what I 'm
going to go after, but our number one - My name is Curtis Hogan, and I'm
with a company that does Christmas lighting and landscape lighting; so
we're elves at our best, spreading Christmas cheer; but we've grown so
fast and so quickly that we've been caught up in that sucking, swirling
sound, with really no focus. Taking that to a marketing ploy; we teach our
guys to market with a rifle. Shoot; powerful shooting in one direction. Well,
you know I hear about having variety and things like that, so I think we'll
alter that. We'll shoot with a shotgun, and if people don't know what a
shotgun does, it sends out pellets, and it hits every different place, which
is our variety. Then we hone in on those, and maybe we shoot those with
the rifle, with the paunch and with the vigour, and the testing and the
tracking, and all the things that we've talked about. I think we can be
more successful in that way. So I'm saying being focused in our marketing,
tracking it, but still be open-minded to try a number of different things,
just like the shotgun shell.

Jay: Great, thank you.

Woman 8: Hi, my name is Denise Michaels, and we had a lot of great

ideas going around our table, and a pretty democratic discussion; I would
say the number one vote-getter out of all of them came from one
gentleman when he said, 'I am criminally neglecting my clients.'

Jay: That's great, that's great. And tomorrow we'll do the strategy
parameters so you can understand the moral obligation you have to make
sure they never buy less than they should, less combinations, less quality,
less frequently; for their benefit, not yours.
Man 17: Hi, my name is Cory [unclear 12:11], and at our table, the idea
that we found probably the most universally applicable was the concept
that your greatest weakness is the limit for your earnings; that Brian
Tracey brought up, and a lot of times in your business, you spend a lot of
time on these things, that you go, 'Why am I spending all my time on this
stuff? It's driving me crazy.' But when you recognize that's what's holding
you up, it might be easier to justify the time spent on those things and
take the hour a week, as Chet said, and get those systems in place, and
work on your weakest link; because then you're going to raise everything
up about what you're doing. So that was our a-ha.

Jay: Good, thank you. Okay, only because its...

Mac: Well, believe it or not, he's going to sugar-coat it. You won't eat
unless you know - until we have dinner.

Jay: We got to get you to eat or you're going to be mad at me.

Mac: They're going to close the kitchen.

Jay: We get so energized that we don't eat for these things, but truthfully
I've got to get you out and so we can get you fed and back, so
Rick...we've got something you need to do when you get out, you can just
pick them up, right? Okay, here's the deal. Marshall, Edwin, who will -
where are you Edwin?

Mac: Why don't we just tell them - but if you have the energy when we
come back...

Jay: We're going to do the rest of them...

Mac: Anybody who wants to...

Jay: Anyone at this table who's in the line, we’re going to do you when
you come back, only because we've got to get you fed. I'm sorry, and -
isn't this a wonderful dynamic? So please don't be offended; don't leave
yet, don't leave yet. Please, wait please. Sorry. We got another dynamic
that is a really interesting exercise for tomorrow; were not done. We’re
going to come back and Mac's going to be here; we're going to do other
stuff. But Marshall, Edwin - I am involved in a service where we analyze -
Marshall reads 40 books; he's an animal, he reads 40 books a month, finds
the one that's the most pivotal, analyzes it, interviews the author, does all
kinds of incredible things, and he's published 40 of them so far.

That's like reading 1600. We’ve taken a dozen of the best ones of the
most relevant to you; we’ve printed out one for each one of you. We want
you to take one. It's about a 10 page summary - you have all 39 in a CD
you're going to get...when? Monday?

Rick: It's on Monday...

Jay: But that's not the point. We want you to read it tonight or tomorrow;
it'll take you like 10 minutes, 15 minutes, and we want you to make a note
of the insights you got from it that you can apply to your business, and
we're going to do an exercise in the morning, and you're going to see how
important it is to read and learn about all the new ideas and new
perspectives out there and find a way to synthesize it, because we're
going to show you how much power that is. So pick one up on the way
out, right?

Rick: Yeah, and then you tell them what to do for tomorrow morning.

Jay: All you do tonight is read it and comprehend it, and be ready to talk
about what you got out of it in the morning. Now, what else? Did we
change everything around or not?

Rick: Tomorrow morning there will be placards on each table and a title of
[unclear 14:56] that you will take home and read tonight.

Jay: So you'll sit at different tables. Okay, you've got the tipping point all
sitting together to discuss it. You understand that? Just- you're going to
have a reading room, and it's going to be really killer.

Rick: Then you sit and compare notes.

Jay: Okay, what about speaking? Where are we on the speaking for
tonight?

Rick: The speaking is - you're on and then Mac is on, and then...

Jay: Alright, okay. So come back and it'll probably be Mac because he's
got about three killer hours on direct response. He'll finish this, the lines,
because I think getting what these people got is incredible, but I think you
should all do the exercise with one another, at the other tables you do,
and then Mac's going to work you through advertising, direct response,
right? And all that goes bump in the marketing night. And then tomorrow
morning...

Rick: Tomorrow morning, 7:00, you will be in [unclear 15:53]

Jay: And he's going to do a killer - when he's fresh - a killer one on
consultative selling, and we'll continue.

Rick: 7am.
Jay: Yeah, we changed the rules. Oh, you want to go to six?

Rick: Want to make sure you guys appreciate Mac's level of competency
and expertise in - he has laboured endlessly over the last 15 years to put
together one of the finest programs on direct response copywriting. This is
a session you do not want to miss.

Jay: Oh, yeah, it's going to be killer.

Rick: You do not want to go home until he goes home.

Jay: Oh yeah, because here's the deal. Mac will sit through and work with
your copy. He'll do clinics right here, on the stuff you guys want. He’ll say,
'Okay, here's how you build it; let's take your ad, let's take your sales, let's
take your email, let's see what's wrong with it. Let's build it, let's discuss
it.' He's a killer - and we changed it around because...

Rick: He's a genius.

Jay: We want you to have more time with him, because we think it's going
to transform you for tomorrow's events. And then Andy's going to switch,
so bear with us. We know we're stretching you, but for three days in your
life, believe me, you're not going to go home and find 650 people open to
giving, you’re not going to find 19 experts willing to basically give their
hearts out and do this, so we’re just trying to bring it all together. And I'm
trying to do it in three days so it doesn’t kill you and charge you like, one
fifth of what we normally do; because I think it's going to be a killer for
you. But work with us a little bit, okay? (Applause)

Okay, thanks guys. See you.

Rick: Was it good? Good

Audience member: No dessert!

Rick: No dessert? What was great about it?

Audience member: It was fast, it was hot.

Mac: It was done.

Audience member: It's been paid for.

(Audience chattering)

Rick: Alright. Can we close the doors? Can we get the doors closed?
Question, question. How many people did not get their analysis? Your
[unclear 00:50] analysis by Marshall Ferber. How many people did not get
their copy? One - anybody else? Two. Okay, those people that did not,
there's going to be a person; [unclear 1:05] Fox, as you leave, okay. Pick
up your copy. Now, this is for everybody. you want to read that tonight.
You want to pick out, you want to be impacted by it, you want to figure out
what you're learning from it, you want to be prepared to discuss it
tomorrow. It's going to be one of the important exercises, trust me on that
one. Okay.

When you come back tomorrow - as you're going into the room, I want you
to be clear about this; you want to sit at the table that has the title of the
analysis that you have. Okay? Anybody not get that, raise your hand. So,
you want to - you did get it? Did you get it? Okay, alright.

Audience member: Is there something else besides this?

Rick: No. Just be prepared to discuss it, alright. So with that said, you
guys are in for a real treat. You're satiated, you're full, you're ready to go,
and I can’t tell you how happy I am for you that you have the opportunity
to listen to this man. He is one of the - he is a reservoir of how to posture
your company using the cryptic word.

Mac: not just [unclear 2:54] Thank you very much, I really appreciate it.
No, I do.

Rick: So here he is...(Laughter)

Mac: No, no, I don’t mean to - no.

Rick: You interrupted your own - I'm painting the halo.

Mac: I know, but one of the - there are a couple of curses in life. One is a
noble birth, and the other is a powerful introduction, where you disappoint
everybody after. (Laughter) Wouldn't you rather sneak up on them, and...I
don't know. So under promise and over deliver, that kind of stuff. No, I
really do appreciate your kind words, and you're right, I have been
working on this for more than 15 years, and I've tried to put the congealed
product of my experience.

Congealed is probably not the right word. (Laughs) Copywrite. [Unclear

3:40], frozen or...distilled. That's what it is. See, this is copywriting just
here, just - we just improved the pitch right on the spot. I'm going to start
it - let me tell what we're going to do.

I'm going to start with a little bit, a quick kind of flash review of some
strategy principles that I work with, and then segue into some ad
principles, but what I really want to do is get down and dirty with - there
are at least 10 people here that have bought things that I want to work
with here. And then I also want to run you through an exercise, so we've
got a pretty heavy schedule. Please, if I run through some principle stuff
really fast, realize it's just - you probably have some feeling for this
already. I just want to review it for you. And I'm going to be running back
and forth - I forgot my wireless presenter thing - I'm going to be running
back and forth between here and the podium to do my laptop, and since it
- I'll probably get over there less than I want to, because....No, this is fine.
I'll just live with it.

One of the things that we've been talking about here is strategy. What is
strategy? And the importance of strategy is this. The importance of
strategy is - and I have a quote - I have quotes from Peter Drucker, too.
But the importance of strategy is this. Strategy is, everybody's excited
about the how question. And it's an important question. But the tougher
question is the blank slate question. The strategy question is why, what,
and where.

Where are we going to go, Coach? What's the plan, Coach? You can take
the one you got, the one you inherited, the one you accepted, but a real
strategy question is, do you do by land, do you do it by sea, do you take
that objective or that objective first. Do you even fight the battle? And
strategy comes from the Greek word 'stratçgos,' meaning general officer
in the military sense.

And it's the mind-set of the leader. And it's the art and science of
leadership. Here's the problem that I see everybody facing now. And this
has only gotten exacerbated - it's always been a little true, but as
communications and transportation and all our forces make this - [unclear
6:08] global village, you even - no matter that you don't have a national
business, that you're a local business; you are in a global framework, and
consumers, clients, customers; are making global choices. When they go
down and order a cup of coffee, do they buy it from Starbucks, or they go
to Dunkin; Donuts? Do they go to a little greasy spoon? So global choice.

Starbucks is a multiple-tentacled international operation, that's all focused

on creating a product and service of world-class proportions, and yet, it's
just a cup of coffee. And the way that our communications system, and
out marketing systems and everything are coming together now, as a
strategist and copywriter, and market myself, you find more and more
that you really don't have lots of choice about becoming a global
competitor.

Your competition, no matter what business you're in, is - I have some pre-
framing questions here. To make yourself globally competitive; because
even though you may have the dog-on-a-chain, local business,
everybody’s going to come in at you. The big guys are targeting you, the
people with marketing leverage, the people who can spend a million
dollars on advertising because they're spreading it over a thousand
outlets. And you have to compete with them. So just - here's a little
strategic [unclear 7:45]; it's in your workbooks. I don't know what the
page is, but it's in there now. You don't have to write it down, you don't
have to write this stuff down; this is all printed out for you.

But think about it. Start with your own goals. I know I heard a couple of
people at the mike before we broke for dinner, talking about how they had
lost the passion in their business. And boy, if you don't have - if you lost
that, you're just marking time until you're out, because things are so
competitive now; I don't have to tell you that. Things are so competitive
now, and there's so much talent and so much ability to communicate
around, you really have to want to win. You have to really love what you're
doing and put in more that you could ever really put in rationally .

So ask yourself these questions about, are you having fun anymore? What
could you add or eliminate to enjoy life more. Because I've noticed that a
lot companies I've worked with; particularly I worked with the Chief
Executives, or the owners, that are principals. The thing that's holding
them back is, they really don't want to be in their business anymore.
They've lost interest. They want to simply it and get out of it, and they
have to get themselves aligned with what they want to do so they have
some juice. So you have to ask all these framing questions of yourself.

Are you running your business or is it running you? What would happen to
your business if you took a month vacation? That's without cell phones,
communications, faxes; just took off. I call it the Peterman Drill. And as the
business got beyond your point of enjoyment? These are all questions you
really should answer before you really decide on a business plan. One of
the things - if you have a business plan that you find yourself not being
able to execute, because it just doesn't happen, you have to ask yourself,
is it possible that your business plan brings you personally in a direction
you don't want to go to?

And if you're the driving force in that business, it isn’t going to happen. If
that business plan involves having you spending more time in your
business and you want to spend less time in your business, you won't
execute. You'll be stopped. And you may not know it, and you may not
understand why you can't bring yourself to it. And then you have to look
at the nature of your business. do you have a business that's a hobby, a
cause, a high-wire act or an art form? I’ve seen all the above; they can all
be successful, but you have to understand where you are. Some of them
are more successful than others.

Here’s another fact of life now. Strategic planning. Strategic planning is

almost debt. You can make plans, and you should make plans, but the
notion that you're going to execute that plan three years out, or five years
out the way you wrote it; is pretty unlikely .You may get certain financial
goals, but five years ago - what was that? 1997? What was missing from
the mix in '97, or just coming on the horizon? Internet. I mean, it was
there, but it was one of those, you know, funny guys running around doing
it, and there were all these people trading funny stocks and all that sort of
stuff.

And now, the stocks have disappeared...(laughter)...but the Internet's still

here. And the Internet's become an essential part of many people's lives;
in fact, the ones you can afford to reach these days… (Audio missing)

...or, if there's a division between the quick and the dead, is probably the
Internet. I mean, that's a fact of life. So what can you do with strategy in
the instant age? You can plan ahead, but don't expect to execute your
plan as written. Revise it every six months, if you have to. Maybe even
every quarter, take a look at it. You may have to change.

A book I'd recommend very much for your thinking, is a book called 'The
Innovator's Dilemma,' by Clayton Christensen. It's not his most recent
book but it's their core book. He's a board member of Cisco, a Harvard
Business School professor; very insightful guy. If you've ever heard
anybody use the term 'disruptive technology,' - he basically says, 'In every
big organization, as technology progresses, the seeds of a major
enterprise's destruction are contained in its successful patterns.' Because
it will tend to go against the new, ridiculous technology, like the Internet
was seven or eight years ago, and not be able to incorporate it into its
DNA. And it will knock it out of the box.

I have a - I've got to find the slide, it may not be in this - but there’s a very
interesting - excuse me for doing this. No, not here. I just wanted to touch
on some of these things, because I want you to think about them when
you're making your business plans. Because you can really align yourself
personally with your business goals; you would be successful, because all
your energy will be there. Now, what is - this isn't very nice to say - what's
the important - to do the right thing, that you do the thing right? What is
that?

Well, if you execute a strategy that has success built in, that has - that's
doing the things right....let's say you start with a hundred points'
potential. If you have a strategy that can deliver 80 points, and you only
execute at 50%, you've got 40 points. If you have a strategy that starts,
they'll be able to deliver 50 points, and you execute at 80%, what have
you got? At 80%,which is twice as effective on the execution side, you've
got 40 points. You just - the right strategy primes you for success. You can
be less effective an executor, but if you pick the right strategy, the
strategy has robustness, and will carry you along. And just that alone is
why strategy is so important.

Now, there's a very interesting business development that's happened

between the prevailing business model prior to, probably 1985; was - or
maybe into 1990, but '85 is probably a good year. And it maybe even
started earlier; was that the prevailing Harvard Business School thinking
planted to down to the last drop, was dominant in American business. But
somewhere along the line, this disruptive technology that Christensen
writes about - Silicon Valle; the silicon chip changed that, and strategy for
Silicon Valley has always been, get it out there and fix it later.

We've all sworn at it, but we buy the products anyway, because we need
them. We want them. And I think in my other set of slides, which I'll switch
to, I have the relative value of a dollar of sales in the market capitalization
of GM versus Microsoft. A dollar of sales in the marketplace; and this is -
held true over the last five years, even with the ups and downs in the
market; a dollar of sales in Microsoft is worth 48 times in the market place,
what a dollar of sales at GM is worth. Even though GM arguably has more
assets, more business; it's ten times the size in terms of dollar volume.
And employees, and products; it doesn’t matter. The market cap is 48
times different on that dollar of sales. And what's that? Intellectual
property supremacy? Having a niche that's a probability for profits? Your
guess is as good as mine, but it seems to be the truth.

This is very important on strategic planning. Jay's mentioned, and he's

going to do more. Ever heard of the Pareto principle. Pareto principle
comes from an Italian sociologist in the 19th century, named Vilfredo
Pareto; it's also called the law of the vital few. It says that in any list of
activities, objects, randomly derived, 80% of the value of that list, will
reside in 20% of the items. And it seems to be a phenomenal - this is a
phenomenal logical, it's just like, it just happens that way. It's one of those
rules that seems to bear out. And it's also conversely true; you flip, for
instance if you have a customer list, it's also true that 80% of your
problems will be with 20% of your customers.

And one of your tasks as a marketer, and as a strategist is to go for those

vital few as part of your business. Because you can't afford to service all
the rest. That's also the fundamental rule in marketing affinity. But with
Pareto's rule on a strategy, you do the activity that takes - which activity
take the most work and produces the least return and the least
satisfaction; you do less of it, right? Rather than proving you can be right.
And what activity takes the least work and produces the highest return
and the highest satisfaction; you do more of it.

And as I said, you ask these strategic questions: what, where, why? If you
start with how, you don't think about where you're going. Because you've
already picked the course. You've got to take you and whoever thinks
strategically with you, to figure out where you're going. So these are all -
this is just one question on this presentation I want to leave you with.
What would you want to invest - would you invest in your business if it
weren’t yours?

In this presentation, in the workbook, I have some other questions I want

you to ask yourself. But that's not the whole point of this presentation, I'm
going to get to the ad clinic, and...let's see here. Why won't this...?

Now, I started doing these seminars with Jay, as some of you who I’ve met
in previous incarnations thought. I started doing this when I was on the - I
was the back-end guy at - we created the back-end at Phil's Publishing; an
enormous newsletter publisher that at one time had a million and a half
subscribers, in financial and investment. I'll pay people, and somebody
called me up, and I had created all these things, and I, to some extent,
modelled some crazy deals I had seen in some other newsletters, and a
mutual - what turned out to be a mutual friend called me up and said,
'You're the new Jay Abraham.' I said, 'Who's the old Jay Abraham?'
(Laughter)

And I was on the East Coast, and so one thing lead to another and he
arranged a meeting, and we arranged to do a couple of deals, and we've
been friends ever since. I've been on my own since '89, as consultant and
marketer. But in that period of time, we did some of the first seminars
together, and I filled in when somebody else dropped out, and I guess I'm
cheap, at least for Jay. No, I'm still doing it. And one of the things that I
love doing is this ad clinic, but I do want to get to some of these
principles. They're all in here, it's late, I don't want to keep you and run
this through the way - because this presentation right here could be a full
day. I've done it in a day, two days; getting detailed. But I want you to just
get a sense of it tonight.

Here are some levers that you can pull. We're talking about leverage.
Leverage is using a small indicator, a small move, to move big things, to
make big things happen. And that's what we're working for; a little in, a lot
out. And you know the old saying people used to have on their military
patches, 'Lead, follow, or get out of the way.' I don't think that's true
anymore. I mean, I 've seen too many businesses where if you’re not the
niche winner, you're just not going to make it. I don't know if that's true in
your business, but it's best to perceive if that's true. Because there may
be no second. I can't through every business here and analyze it as I'd
like, but I think now it's lead, or get out of the way. Just because you can
find another niche. Because there may be no room for a second, of any
vitality, unless you're coming on an established business that has gotten
big and stayed big.

Here are five things, five points, that if you master these concepts, you
will be a marketing genius. Because very few business people have all
these down, and just understand them; how to manipulate them. Unique
Selling Proposition. Unique Selling Proposition is really, answers the
question, 'Why should I put your product, service, or offering at the top of
my list?' and act there. Why should I pick you to be number one? Because
for someone to buy your product or service, to pick you, you have to be
at the top of a list. The list may be derived of lots of little lists; you may
have lots of different characteristics, but that moment of execution;
they've had to pick you, the balance of features and benefits; had to pick
you to be number one.

Because number two didn't get picked, didn’t' get bought. So

understanding USP in this position power is very important. Then we
talked a little bit about testing, not about the mechanics of testing, but
the psychology of testing; and a lot of what I'm saying comes out of my
direct marketing background. And direct marketing has become more and
more influential in business, now. And has affected the general advertising
field tremendously. General advertising is way, way off in the last couple
of years, and it's not just because of the dot bomb; there aren’t' any dot
coms to buy crazy ads at the Super Bowl; it’s not just because of that.

It's because that and 9/11 created an atmosphere where people said,
'Why were we spending all that money?' And 'What did we get for it?' And
they said, 'We didn't do it last year...didn’t really hurt that much.' And they
are looking for results. So testing, and creative leverage; testing gives you
the opportunity to look for results. Everything I'm talking about here will
be in a results oriented frame. There is such thing as brand building if
you're Kellogg’s or Proctor and Gamble, or Colgate. But ultimately, that's
bottom-line oriented too, if you know people or brand managers. They just
have enough money that they can afford to do things almost any smaller
business can't afford to do. You can't do what they do.
Just like it's very hard to play tennis the way the pros paly; they're low
percentage shots unless you're a high level pro. You should probably find
some other strategies. List and media affinity comes back to that birds of
a feather flock together. To go - when you think in direct marketing terms
of a market place; if you’re not marketing oriented, you look at a
marketplace, you'll say - all the small business people, 'Well, I'll just find a
list, I'll get one of those things for $20 you can buy on disc where you get
10 million small businesses, and I'll just take a random assortment around
my business.' Well, no one can truly explain this, but you'd be much better
off by a factor of 10 or 20, often, to buy a list of magazine buyers of -if
you're going for that small business - of Inc., or Entrepreneur, or The
Economist; and that list will respond to a direct marketing offer at a factor
of 5, 10, even 20 times what a so-called compiled list would do.

The affinities is - affinities are things like clusters of behaviours, which

may not be linearly connected, but they're connected in behaviour. And
you usually find - you can just find some kind of link. for instance, affluent
- most of us can see it quite clearly in an affluent market. When you pick
up a platinum card magazine called Departures, even though it’s no direct
connection, they have ads from all the world-wide antique dealers in
there. Because they see an affinity between wealth and people collecting
high end antiques, or high-end golf clubs. And it's that kind of natural
connection, and it goes up and down the socio-economical spectrum. That
you try to find clusters of behaviour; one thing indicates something else. It
can be a real science. For you , it might be just knowing that if you're in a
local business, you might just know that…(audio missing)

All your customers come from north of a particular geographic boundary.

You just take a look; you try and look for these things, these patterns, that
you can take advantage of, or you can find that 80/20 rule. risk reversal is
another major lever for you to pull on. It's - despite the fact that - and Jay
is probably the master of risk reversal of all time. Because Jay - risk
reversal lowers that threshold of commitment. I’ve had any number of
people tell me at these gatherings, at whatever price Jay puts on them, 'If
I know I can walk out at some point, what's my risk?' And it's that feeling
of being able to interact and find value that risk-reversal does; on a gut
level, you know what it is.

But it's testable. It's one of those things you can see where adding an
explicit warranty, guarantee, risk reversal, makes a difference. And
something where people are very reluctant to move; Jay pioneered the
better than risk free guarantee, where you get a payoff just for engaging
in the exploratory activity. So even if you terminate the transaction, you
walk away better, you walk away with more that you had before, even
though you don't complete the transaction.

For instance, anybody who signed up as a lead person on this affinity list,
got tremendous materials for [unclear 1:42] the program, certainly, but
they walked away with more than they had to start with. It's a better than
risk free guarantee. You have to look at your numbers and your conditions,
and what you can offer and what you can't. It's not as straight as
everybody should give the same deal, but risk reversal is a great
motivator for overcoming the threshold of behaviour when there's either
suspicion, lack of knowledge, fear, bad previous experiences; there are
lots of things we have to deal with.

And then the last lever that I think is super important and it can make you
an instant marketing genius without writing a word of copy is the power of
lifetime value. Lifetime value is a concept that says - and goes into your
capitalization and what you think your risks are. Lifetime value is the
profits and the stream of earning that a customer will generate over their
statistical life. Now, you don't look and say, 'Well this customer...' your
average customer delivers $500 in the first sale. It's a $500 sale of which
the 20% - well let's say a 30% margin. And that's $150 business.

But if you know they have an 80% chance of doing it over the next 24
months, you have the same - you have an 80% chance of getting that
$500 again. You have $400 with that 30% margin; you have an expected
$120 added to the lifetime value, and you can do that out as far as you
can statistically project. And that will give you a sense of how much that
customer is worth coming in the door. That's often the advantage of a big
business over a small business. A big business can look and say, 'We can
afford it, we can afford to get that customer at that price, because we
know if we retain them over a period of time, we can afford holding them
at a particular cost until that pays off.' Insurance works that way, a lot of
businesses, that only big businesses seem to be able to afford to go into.
But it's a real competitive advantage, if you understand your own
dynamics.

I talked about winner take all. Global production plus global

communications, global distributing. It means global choice and global
contribution. And this is what - this session, what Jay's all about, what I'm
all about - why I concentrate on marketing. Because the most costly thing
in business is to acquire a new customer. And anything you can do to have
that customer deliver more is the marketing effort. And these days - and I
don't think it used to be true - these days, big business has learned, and
somewhat - to some extent from watching Jay, I can tell you, big business
has learned to get its act together, and some of the big businesses are
very strong competitors. And if you think they're not, look at Wal-Mart.

Wal-Mart uses it’s buying power, it uses it purchasing power, which drives
- anybody who's done business with Wal-Mart - anybody does business
with Wal-Mart? I don't mean buying from them; you selling to? They drive
the most merciless bargains you've ever heard. They know exactly down
to the mill, exactly how much his vendor makes from the product. And
they'll drive them down to that mill, because they have a proposal right
from - they have a proposal from the competition; they know where they
can go, and they use that as competitive advantage, and they have a
machine.

So if you're in business against them, you have to offer something they

don't offer. And then we have the Internet. And the Internet - what do you
get out of the Internet? I heard information. Information gives you what?
Power. I mean, you can go - You can do a price search even with
something as simple as my assignment, and you can come up with 30 or
40 choices on a commodity product, and at 1% difference on price on
Internet offers, can mean as much as 50% of sales. Choices go from 1%
difference in price, because people - these are commoditized transactions,
people say, 'Why won't I go with the lowest price?'

So it's brutal, and it's driving people's margins down, because you frankly,
as a consumer or as a purchaser in a business, you have more
information, and everybody’s chunk is getting shaved a little bit. So you
can benefit from that as a buyer, you can communicate better as a seller,
but - you've probably heard of the term disintermediation, which is
eliminating the middle men, and most of us are middle men of one kind or
another. So it cuts deep.

There’s another reason; why concentrate on marketing? Because

marketing is the most highly leveraged - and Jay went through this
morning a little bit - most highly leveraged activity you can have. I mean,
if you look at - this is just experiential - cost-cutting. Cost-cutting in an on-
going business, can actually cost you money, for a good period of time. If
you have to lay employees off with some kind of tenure; if you have to
close down lines of businesses…

Jay Abraham Mastermind Marketing 10

…that can actually cost you money in the short run. And even at best, you
might be cutting capacity and ability to deliver. So what can you get out of
it? Maybe 20%? Productivity gains, doing things a little better; you might
get 20% out of it. I suppose in the extreme case, you might get 50%. As I
said, these are all in your notes, if you look in. Technology and
automation; well, you can get some kick, particularly as we're in the most
productive society today. You can get kicked maybe - even if you get
100% kick on technology.

You don't have to, technology - one of the biggest unassumed business
risk is people installing new software. Their business might never survive.
So technology is not free, but marketing, as Jay was going through just
before we broke; your chance of leveraging the same marketing money
and getting something more out of it by using some of the direct response
disciplines we’re talking about, because even though they’ve extended
into cyberspace, the disciplines are still the same.

We went through a period of time, when Jay, fortunately for himself,

decided to take some time away; where the logic of sales and marketing
seemed to be turned on its head, and there was a new paradigm. And the
world seemed to be different. But it didn't turn out that way, and the same
paradigm is governing; two and two still have to add up to four. There is
no such thing as customers how are different. I mean, there are still other
people at the end of the computer, and they still have their human
motives. So marketing and marketing economics are not being held up by
elusory venture capital anymore, which is what happened. And there's still
a lot of that to hit the fan. But, right now, you still have the option of going
back and building a business on marketing principles, and getting
tremendous affinities out of your marketing money, by testing, using
creative leverages, using risk reversal, and spending the same amount of
money redirecting it, and getting 50-5000% more return.

Just look at what they did here, which is really remarkable. The thousand
percent lift in conversion, not in lead generation, but in conversion they
got into this program, by using email properly. By using the unique
advantages of email, and it changes the skew a little bit. A lot of this
crowd is probably on average, five years younger than an average Jay
crowd, I would say that over the last seven years. Maybe even a little
more.

So your wants and needs are going to be slightly different, which is why
we have all the rock and roll. (Laughter) It's leverage, leverage, leverage,
because it's money for nothing. It's returns for nothing, to use the old
brothers in arms quote. And if you know the rest of it, it's up to you. Fixed
costs - using fixed cost, fixed budgets, and getting leveraged returns. And
this needs a little clarification.

In Jay Abraham's terms, what is marketing? Marketing is doing the

simplest, most powerful thing you can do to get to where you want to go.
There's no limits, there are no rules around that, there's no box around
that. If doing your best marketing effort is to make one phone call to the
right buyer, and that's it, that's your marketing effort. You don't have to
gear up a whole campaign. Marketing is finding the most reliable path to
success, probably through communication. It's becoming the business you
and your investors want your business to be.

This is something that we always fight, which is when I call them mouse-
trap methods. The most prevalent method in business today, is - and has
been forever in America - is that if you build the better mousetrap, what
happens? The world would beat a path to your door. Well, I don't think
that's true. We all know inventors with garages full of mousetraps,
because they forgot to ask if in fact anybody wanted a better mouse-trap.
GE apparently made a better mouse-trap at one time. And it had to be
electric, because that's what GE does. (Laughter)

And a friend of mine, who was a strategic planner with GE told me the
story. And they made this better mouse-trap and it really went (makes
electrical sounding noise). And essentially electrocuted the mouse.
(Laughter) And all he had to do was take it and shake the mouse out into
the trash, and start over again. But the problem was, what do most people
do with mouse-traps? They get their husband or their boyfriend, and then
the boyfriend takes the broom and the dustpan and sweeps it into the
dustpan and throws the whole thing into the trash, right?

They don't take the mouse-trap apart and reuse it; it's only 25 cents.
Nobody really wanted an electrocution mode...(laughter)...so back to the
drawing board on that one. So make sure you - your customers - but you
need to ask, you can't just assume. You have to ask your customers
creatively. If you're in a new business, you can't just go out and ask your
customers if they would like something. First of all, if you're going to ask
them anything, ask them and attach a price to it. And often the case is
research will only show you a general indication, and if you can't - the best
test of whether something will tell is to make a prototype; or even not;
and make a - what they call a dry test, and see if you can sell it in
advance to producing it. Because people are usually not picking up the
product and selling it, and in some cases you might have to.

But see if people will actually pay for your product before you really sign
on and sell the family farm to finance it. The DM revolution, as I said, is
affecting advertising tremendously. Companies are really all of a sudden
under this global competition and thinner margins, and everything else,
had to look for performance. If anybody remembers that great start of
Ghostbusters, when the Ghostbusters guys are up and they're about to be
thrown out of the labs at Columbia, and they're having to do something to
get a job. And they're saying, 'What are we going to do?' And somebody
says, 'Maybe we can work in the private sector.' And Bill Murray says, 'Oh
no,' he says, 'We don't want to work in the private sector. They want
results.' (Laughter) It's very funny; if you haven't seen it for a while. But
direct marketing, direct response, as a discipline, brought a mind-set to
advertising, which has been a very interesting process of uncontrolled and
unmonitored creativity, for the most part.

And rule number one in direct response, for better or for worse, is get
results. Rule number two is see rule number one. And it's taken that mind-
set and transplanted it into cultures that didn't have that before. It's been
a crunching adjustment for a lot of advertising departments, and they're
not entirely happy with it. But it's a new reality and as an independent
business of less than global proportions, as most of you are here, you're
way ahead of the curve.

You really have to know your own internals, too. You have to know what
makes your company tick and - I'm talking about focus. What makes your
particular company - what's your strong suit? What can you play to? What
can you do well. Should you go into every venture that’s possible? No, you
should do ones that - use your assets, your strategic set - best. So you
have to know what those are. I'm going to give you another million dollar
advice for 25 bucks. There’s a great book by Michael Robert, called
'Strategy, Pure and Simple.'

This is a guy who does top-level mega corporate re-positioning. Wonderful

book about thinking about your strategic heartbeat in your business. I
won't take the time to even tell some of his - USP; what can your USP be?
It can be as simple as price or discount; it's the most elementary. That's
especially on a commoditized product, but if you have the best price, and
you have equivalent feature set, that is a unique selling proposition. it's
one that's easily undermined, and one that's - it's susceptible to attack by
a well-capitalized competitor, but it's not one to ignore.

You could point to Microsoft undermining all kinds of markets; proven in

court, incidentally. [unclear 10:12], I’m not making any judgements, but
they come in a devastate a market by giving away a product free. Or
bundled with another product. And sooner or later they charge for it, one
way or another, but if you - it's very hard to compete against that. So
price alone is a difficult one to compete on. Now, value is a whole different
world. If you've got price value relationship, now - what's the best-selling
luxury car in the county now?
It's Lexus, isn't it? The Japanese came in, looked at this market, and then -
the Japanese use Martian logic when they come into a market. They don't
pretend to understand America. But they have to go survey the markets,
and they find out what people want. And they give them to them at a
price - they give them exactly what they want at a price that's
competitive. Usually they try to give them a 20% price advantage. Pretty
hard combination to beat. Takes a lot of work.

so all these things can be USP's, and you will have a unique amalgam of
style and combinations of things, but these are your magic buttons to
think about; your discount, value, design, uniqueness, convenience,
service level, performance, reliability.

I mean, way back when IBM was IBM, do you know why they had such a
lock of the mainframe market? Because; service. Their service was the
ultimate in the business. they kept their stuff running, and they bundled
their service. They were ultimately forced by the FTC to unbundle service
and product. They had service and product bundled in, and until they were
forced to break them apart, and price them differentially, they had an
absolute lock, because their service, their hardware - and it was their
hardware - I mean, we're all focusing on getting a computer now for $700,
that could have run the Space Program. (Laughter) And yet, what's the
first thing that happens when you get the blue screen of death? Who do
you talk to?

I mean, the reason Dell has been able to have it's wonderful business
model is that they've taken some of these principles and they've rolled
both service and price into a package. Forbes, I believe it was, did a thing
a year and half or so ago, on seeing who had got religion, who had got the
direct marketing model. And they sent out an order for 10 computers and
some small network stuff, to Dell, Gateway, at the time; HP, Compaq and
IBM. I think it was, they looked at what they had after two months. Well,
Dell had delivered its order in seven days, complete, and had come and
installed it. Gateway had done - actually delivered in five but they had a
couple of problems; they didn't get it installed til seven. And this was like,
35 or 60 days later.

Compaq and HP were still corresponding, and IBM hadn't responded to the
request. (Laughter) And so, you know, you have to execute your business
model well. So there's options there for your USP. When you think about
USP; and we'll try to work on it a little bit tonight; I'd like to say you are
developing a 'you' attitude. And rather than just unique selling proposition
for a particular product, you have to see if you can nest your unique
selling proposition from that product, inside your company's strategic
strengths. And see - you come out of your strongest, what's best for your
company with the set of assets and talents, and skills you have, and nest
your selling proposition in that.

It's a springboard for all your marketing. That's fairly abstract, but we'll try
to look at some. A USP doesn't have to be something an ad agency would
give you an award for; an ad council will give you an award for. It just has
to be something that's most meaningful and pre-emptively placing you at
the top of the list for that moment of purchase.

Yes, FedEx has built an empire on this concept, whether or not they even
say it anymore. But if you have - and this should be on the same line - if
you have - if you're out in the boonies and you see a sign on a diner that
says, 'Eat at Joes, open all night,' it's - you know, you look around and it's
just dark windows; that's a pretty powerful USP. Because if you want a
coffee at that time of night, that's your choice. And they communicated it
at the right place and at the right time. Or, as you're leaving Las Vegas, or
coming into Las Vegas, you see those signs that says 'Cash for your car
now.' Pretty compelling composition; at the right time, in the right place.
(Laughter)

Doesn't have to be - but it's not; and this is where it gets hard, because
we have to get the focus off us, into - it's not about you , it's about your
customers, your clients; what they want. Not the cleverest technical
achievement, not how long you've been in business. Although those can
be supportive things, but - not that you have a new conveyer system, but
their product will arrive faster, cleaning, with no defects. They don't care
about your conveyer system. They care about what they're going to get.
They might want to know about your conveyer system if in fact they're
concerned about handling, but they want to know - the first thing they
want to know is the product's going to arrive in better shape. You see a lot
of companies and people are advising their high profits. Generally
speaking, that's not appealing to me as a consumer. I want value added to
me. I assume you're trying to make money, but don't brag in my face. So
that's a little steer on USP.

This is that wonderful Peter Drucker - 'all into central functions of business
or marketing innovation, all the rest are costs.' Because the purpose is to
create a customer. And this whole question of USP, think of it as carbon,
your carbon. Your company’s carbon; your product VR carbon, your carbon
devices; and a carbon can either be a coal, at hundreds of dollars a ton, or
it can be a diamond, at thousands of dollars a carat. It's all coal. It's how
you handle it. So, one's a commodity, and the other can be rare and
unique. Somewhere on the scale, you want to move up the scale; and you
make it different, make it unique, make it invaluable, make it
impassionedly desirable. Which is why diamonds are sold not on - the
gemmological institute - when DeBeers, and the diamond institute does
the campaign, they don't sell it - how do they sell it? Romance. If you're
watching the guilt...(laughter)..but not on the cut, clarity, carat, weight,
and colour. They don't sell the four C's, the three C's anymore.

Now, this is an interesting list. Positioning. Remember when I said you had
to be number one at the time of attack? I first put this list together 10
years ago, and I haven't changed it, but the only one that isn't number
one still in its category - arguably two - is Target, which is still number two,
and AT&T, because who knows what AT&T does these days (laughter). But
it's a persistent list. To get to top of mind - people just don't have that
much - how many hooks in their mind for number one. They have choice.
We all want to make the choice for life. We're forced by circumstance to
move off it, but we all want to just be reflexively reaching for that, so if
something gets to that top choice position, it takes something to dislodge
it.

My friends in the tech universe say, 'You've got to have a five X or a ten X
benefit factor to move technology out, and have a new technology moving
into its spot.' 500% to 1000% performance advantage if you really want to
bring a product into a market with a reasonable chance of success. And
even then it's only because there's so much, even in the tech market,
there's so much inertia.

We're getting into the - please don't say everybody is your market.
Everybody isn't your market. If you try to reach everybody, you will go
broke before you reach anybody. And we'll get into that deeper. These are
niches. They may be fantasy, they may be realistic. Microsoft went after
the global desktop, the global sliver. they went after the desktop, the PC
desktop. That's what they went after. Not mainframes, not mini's. They
went after the PC desktop and want to command it.

And then several airlines vie for the business traveller's airline. But it -
fantasy; tax advisors who work directly with the IRS; as long as you
thought they were on their side, you'd be happy with that, wouldn't you.
H&R Black is using that. And a doctor who would come to you; now what a
USP that would be. But that’s just fantasy. (Laughter) Marketing mind-sets:
seeing opportunities where you saw obstacles. No failures, just tests. No
failures, just tests. No matter what hard lessons you have, and sometimes
they come easier than you might think.

Now, here's copy writing. Copy writing is not about jus producing print ads
or any kind of ad. Copy writing is salesmanship, in whatever multiplication
medium you find. It's not just - it's taking salesmanship, and taking it in a
form where you can replicate it, to some extent, mechanically or
technically, and deliver; for a fraction of the cost of a one-on-one
relationship; to your targeted market. It is so - we familiarly call it copy
writing, but it isn't just copy writing. It's salesmanship, and so it doesn’t
really matter what - yes there are some expertise, knowing what formats
and what things work better and worse.

But the fundamental sales proposition is a psychological proposition; it

has nothing to do with getting 800 in your English college boards. Good
salesmen, first of all, are the best copy writers. Here' a couple of [unclear
22:07] from out things. Find out - follow your - if you can't sell it one-on-
one, then nobody can sell it one-on-one; you’re unlikely to be able to sell
it in any other medium, unless you totally make it up. Which we know
happens. So you want to find out why people buy, because copy writing -
and my goal here is not to turn you all into copy writers, but in many
cases make you managers of copy writing, and know what principles -
where you can intervene, and whether you have a right to say anything
about somebody's copy. If you can put yourself in the mind-set of your
client or customer while you look at copy; whatever form it might be: TV,
radio; if you can put yourself in the mind-set of - if you can understand
your customer, then you have a right to manage that copy. Not somebody
who happens to be good with words... (Audio missing)

…something for their portfolio. Or for their friends down at the art
institute, or for the copywriter's club where they're going to give each
other awards. Because a lot of times, people putting this stuff together on
a professional basis, have everything in mind but selling your product. And
you have to be very careful, so even if you're not going to be your top
copywriter, this is a function you need to manage. And although I certainly
subscribe to Michael Gerber's observation; he wanted you to work on your
business, not in your business; sometimes you really do need to work in
your business, and if you let marketing get too remotely away from being
your core function, it's very dangerous. There's lots of - one of the great
marketers in the United Sates dies this last week. Anybody know who
Roone Arledge was?

He was the inventor of the modern ABC, Wide World of Sports, Monday
night football, a whole panoply of other stuff; created industries out of
making an experience out of these things; and became president of ABC
because of it, because he was a great marketer. But, remember, if you
can't really sell it in person, you can't sell it in print or any other medium.
And you need to tap into feelings. People analyze with their thoughts, but
they act with their feelings, and this is true in business-to-business as well
as consumer. And that we’re all people and we respond to our feelings.
Our feelings are actors; analysis is not an actor. And its benefits, not
features; and wants not needs.

This is a great phrase of sometime crazy and wonderful copywriter named

Gary Halbert, that Jay mentioned earlier. Picture with pleasure. That's your
goal when you're putting copy together. Here a couple of other little rules.
Don't be a comedian, unless you're David Letterman. Take the purchase
seriously. And there's an old document; it isn’t on here, but it still seems to
be true, and I keep hearing rumours of its death, but it doesn’t seem to be
true in practice; which is the more you tell, the more you sell, in direct
response. If you have a compelling message, you need to tell people
about what you're doing.

Now, there’s a lot of detail, but your challenge is - there are millions,
literally millions of messages; tens of thousands people get every day. I
think the psychologists say we're screening out 15,000 message a day.
Screening through them, dismissing them, blocking them out. And you've
got to get somehow through that, to get heard. I mean, just think about
the simple act of sorting your mail, or your email with your finger on the
key and the (makes whooshing noise)...gone. right? How long does that
take? Virtually not at all. So somewhere along the line you have to catch
that one that isn't blue screened out of there. How do you do that?

Well, in email, you've got two things that are prime determinants to be
keepers. What are they? What's the first thing that some research has
shown that is the prime determinant of keeper in email? Sender. From line.
Not necessarily the subject line, although there's a lot of psychology in the
subject line, but that's where the affinity comes in. If you have a trusted,
positive relationship, that from line - this is true with every other medium,
but we're all interested in email; including me, and it's certainly an
unbelievably powerful device, particularly when you have a sound
business model to start with.

But, just to think about how quick you evaluation process takes place, just
look at your watch. Right now. Starting now. That was five seconds. How
many decisions could you have made in five seconds? Several. You could
have dismissed..(makes noise)..yeah, you could have - emails, things in
your mail, you could have gone (makes clicking noise)...gone. Somebody’s
-all year work on a promo is down the drain, because you didn't catch
them. So it's brutal out there, and so you have to answer, what's in it for
me? Do I know you? And the A-pile or the circular file; that's your fate.

Now, there's some fundamental principles but I want to do something, just

- I want to show you - here's a breakthrough of marketing toolkit I put
together for you. I talked about some of these things already, how you put
stuff together, the strategy questions; but here's a fundamental priority
list of what you want to put together, and the first thing is the audience…
(audio missing)

It's in the workbook, folks. But if you want to write it down, I’m not going
to discourage you. Of a thousand points; the starving crowd, you need find
at least half to start with. What offer you make to the starving crowd is
probably the other half. And everything else is kind of glass. You can't sell
- if it's a starving crowd, you're probably not going to be selling them diet
recipes. You've got to find what’s appropriate for the audience you're
going to.

Headlines are very important and make tremendous difference under the
author, but if your offer -you can have a great headline, but if your
fundamental offer of product and your delivery of benefit isn't matching
your audience, it doesn't matter how good it is at getting attention. I could
give you a million examples. Beautiful copy is very small, aesthetics,
really, in response, is not that important; only if it doesn't clutter up, and
just being clever. It's worth nothing and often counter-productive. I'll get
back to some of this. These are some of the things in affinity; product,
price, profile, medium, frequency, regency; I'll get back to that. A list is a
market you can reach with communications technology, and I talked to
you about response lists, compiled lists. Your own list should be - your own
house list should be your best list. This is fundamental. How many people
know what 'AIDA' means?

Attention, interest, desire, action. If you have an ad that builds those

things in, whatever form of communication; a motivating communication;
we're calling it an ad. Now, one of the things about copywriting is there's a
reason it's called copywriting. The copy part can be really important.
Don't, just because - follow models that worked. You can adapt them for
your own purposes. Jay's provided you a hundred greatest headlines;
there's a whole ad book some of you have. But think about this. Attention,
interest, desire, action. In the back of your workbook; and these are prep
tools you get; in the back there's something called an ad template. I think
it's one of the very back pieces in the workbook, in the big binder.

And what you're going to do right now is use that ad template, or piece of
paper, and you can just go for it. And what you're going to do is you're
going to take the next 10 minutes, and you're going to write an ad, in
whatever medium you like, and you're going to pick a product or service
that you have or want to sell; and you're going to write an ad, okay? No
pre-amble. Do as much, or as little as you can. And you're going to think
about all these components. USP, risk reversal, marketplace, headlining,
format. You're going to think about all these things.

But then you're going to sit down and see whether rubber meets the road.
And then we'll see what floats to the top here, okay? Ten minutes? And
you can cheat; you can ask other people's opinion, if you could… (audio
missing)

Okay, I’m going to ask you to wrap up a little bit here, and then you're
going to spend five minutes or maybe I'll give you ten, I'll see how it goes.
I want you to read your ads to your table mates, as far as the - what's a
good workable group; six at a time? At these tables? Half a table to each
other, or not more than - because you can't get down to the other end,
so...half a table. Pick your half table, and if your table is a short table,
you've got MIA's; you can pull down together a little bit. And you're going
to read your ads to your table mates and get their comments, and then
two from each table are going to share them with us. Okay? I'm not asking
- a friend of mine said, 'Don't do that with your kids,' he said,' Don't say
okay, sounds like you're asking them permission.' You say, 'Do you
understand?' It’s all the way you say it, huh.

(Audio missing) ...out of this. No, but, has anybody done that? Or did I
totally misdirect everybody? Try to take what you're doing with the ad
template; where you've framed out, and I'll give you another five minutes,
and try to take that and put it together in a short but working ad on just a
piece of paper. Let's assume you were doing, at minimum, a postcard,
okay? Think of it as a postcard. It doesn't have to be a postcard, could be
a 15 second radio spot. Could be a cable - just whatever. But do
something that's readable. I’m sorry I misdirected you to the ad template.
I gave you the ad template because I want you to think about it, not
because I wanted you to do a full execution. The ad template will walk you
through a real ad campaign and make you think about it. At least you
know it's there, that's a positive.

That's a fundamental principle of direct response, is tell people exactly

what you want them to do, and make sure it's what you want them to do.
Don't assume they understand. I gave you a misdirection and you did it.
It's my fault, I apologize. I don't think it's all lost, but....we didn't get the
product we wanted, because - take that five minutes and sketch
something out.

(Audio missing)

...time here, so I want to do something collective. But come on up. We'll

forget that - we’ll disintermediate the process and forget the collaboration
at the tables. So come on up and join; we need a couple of the hand mikes
to pass along. We can move the screen way back, so people can look at
each other and scoff, and kind of talk to each other behind their hands,
and all that stuff.

Okay, we got a hand mike? Hand mike up here? Okay. Pressure, pressure,
pressure. Okay, we're going to cut it off there, that's it. Okay, we just don't
have time. We don't have time for all this anyway, but...I just need one or
two. You can only talk one at a time anyway, isn't that right? Good. Okay.
first mover's status goes to - tell who you are, where you're from and what
business you're in.

Man 1: Hi, my name's Peter Guberman, I’m from San Francisco, and the
company I [unclear 1:16] a building company called Circle Lending. What
Circle Lending does is...

Mac: Can I...? Let me do this. Don't go into an elaborate explanation of

what your company does if you're - after you read your ad, then if we
think we need to know, we're going to ask you. But read your ad, because
your ad has to go - you can't go with your ad, and say, 'You know, what I
really meant to say was...' (Laughter) 'What I didn't mention here,' and
'Before you read that, you really should...' You can't do that, it's got to
speak for itself, in this particular case.

Man 1: Okay, I think I can preface this by saying this a direct mail ad that
[unclear 2:01]...

Mac: That's fine.

Man 1: ...baby boomers, that sort of thing. So you get the ad, and...

Mac: I'm sorry, there's a little discipline to the hand-held...the best thing
to do is to put - excuse me. Put your thumb up and point the thumb at
your mouth like that. Because that'll put the microphone globe pattern -
pick up pattern in the right relationship.

Man 1: Have you ever had family or friends ask you for money? Almost all
people lend money to family and friends. Most of the time a lack of record-
keeping leads to problems about [unclear 2:39], probate problems, as well
as confusion and misunderstanding [unclear 2:44]. This is the problem
that you probably have. Circle Lending provides a solution. If you would
like to have successful loans without any issues that cause guilt and
tensions in the relationships you have with those that are close to you,
you need to use Circle Lending. If you're in this position, go to
www.circlelending.com. Read about us and set up a loan.
Mac: Okay, give it a numerical score and just [unclear 3:15] it out. Scale
of ten. (Audience shouts out numbers) So you think he has his basic
building blocks there, hasn't he, in that ad? I mean, you have some
questions, right? You have some questions that are sort of, 'What’s the
pricing?' I mean, there may or may not be questions you want to put
answer in the ad. 'What's the pricing, is there any risk reversal?' Is there
any risk reversal?

Man 1: No, I mean, Circle lending - I mean, you set up a loan...

Audience Member: ...that's all the website; the whole idea's pretty
obvious. [Unclear 3:44] and it's like, you know what? My son is asking for
money, and the son of a gun doesn't pay you pack, and I can't - and his
mother's giving me grief, how do I get out of the pickle? Www....

Mac: Yeah, so he may actually have gone - if what he's looking for is an
interested lead, he may have gone one step too far. He may actually have
to back off a little bit and tell a little less. Because what you really want is
to go to your website, which is your second stage of your sell. Point the
microphone at your mouth. I have a lav, so you can't have one.

Man 1: What we found out is that we can send the [unclear 4:19] to our
site. We have two customers, they're borrowers and lenders. WE get a
borrower and they have to find the lender, and if they're a lender they
have to find a borrower.

Mac: But then they're not family and friends anymore?

Man 1: Well no. Yeah, they are family and friends, but what I'm saying is
you can either market to borrowers or you can market to lenders.

Mac: Well, don't you have to market to both?

Man 1: You market to one, and they find you.

Mac: Where do you think you might find people in this position? What
media would you have to go to? Where do you think you might get people
in the - because it's a kind of 'everybody and nobody' market, isn't it?

Man 1: Yes, it is an everybody and nobody market, and we don't have

enough customers yet to really do a demographic profile. What we're
doing is hitting people who are starting small businesses. That's where
we're getting our customers right now, but we feel there’s a larger market
if we hit people who are - net worth of one plus million. Because we
figured anyone who's worth that much have to ask for loans from
someone.
Mac: That's a good presumption.

Man 1: And the close range on lenders is about 9 out of 10. the close
range on borrowers is much less.

Mac: Okay. Thanks. He has a lot of elements in that ad; he did pretty well
with it. He could think about risk reversal; where I might go best, where he
could look, but an interesting job. And has your basic pieces there. It isn't
elegant writing, but it doesn’t need to be elegant writing, and that's the
first thing about copy writing. Copy writing needs to be succinct and
direct. Yes sir? [inaudible from audience 5:49] Right, I understand, but I’m
not sure that we can get all your comments on record, but I'll try to repeat
if it's important. If you have an extensive comment, we’ll have to get you
to a mike, but I’m going to try and translate. Go ahead. So who you are...

Man 2: My name is Leonard [inaudible 6:11]

Mac: What business are you here for?

Man 2: I market on the Internet, [inaudible 6:16]

Mac: Successfully? Yeah, okay.

Man 2: [inaudible 6:30]

Mac: You've got to keep the mike up there, because it really can't pick up.
Unfortunately if you're...

Man 2: ...crises he was talking about this morning, we have ups and
downs. [inaudible mumbling 6:43] ...zero market budget, and you can too.
Dear friend. would you like to catapult your online sales, revenue; into six
figures. Give me five minutes of your time and read this letter [unclear]. I
went from broke and about to get evicted to now driving a Mercedes, by
using a simple [inaudible]. So these are my [unclear] are extremely
competitive, and if you want to sell successfully online, you must have
these simple and powerful keys, methods and techniques to get your
customers to give you their hard-earned money. [Inaudible 7:24]

Mac: Okay that’s - don't apologize, it's a sign of weakness, just keep
going.

Man 2: You'll will learn everything you need to know to be successful

online, [unclear 7:34]. Why you need at least ten domain names and not
just one, where to get the best price for domain names, how to get high-
quality targeted traffic to your site in less than a [unclear] per visit. The
problem with today's search engines and what we can do about them.
What are the most powerful marketing techniques that saved my business
from [unclear]. And how you can free multiple streams of income from
your website.

Mac: Okay, these are all what you're going to learn from - and now you're
going to make an offer?

Man 2: Yes, sure. With my one-on-one consulting opportunity, show you

step by step what you need to make your business a success. In fact, I
guarantee your success. If you don't increase your sales by at least 50%
after implementing my techniques, I will give you 100% of your money.
For free consultation call...

Mac: Okay, and what's your call to action?

Man 2: Have them call me out here.

Mac: Have them call you. So it's a lead gen, at this point?

Man 2: This one is. If I was doing a book, I would say 'click here to buy
right now'...

Mac: so you've done this before, as the sailor said when he visited New
Orleans.

Man 2: Correct.

(Laughter)

Mac: You sound like it - see, he managed to get - in five minutes, he

managed to get the essence of his message up, and he's got a lot of
interest. He's got you at least with a call to action, he's walked out in a
very workable form. And you're taking on a problem like this, just as Brian
Tracey taught you quick goal setting. Do a quick take on your prospect,
because you should be able to get the USP and the fundamental
proposition clear, by just forcing it out. Don't sweat it, at that point. That's
not the point, to sweat it.

Man 2: Normally, this would be 15 pages by the time I'm finished, and we
would have a few calls to action, more than just one, and lots...

Mac: They may want to know your name a little clearer.

Man 2: Nico P-I -C-O -P -R [unclear 9:36]

Mac: And do you have an easy...

Man 2: C-Y, and you can reach me at nico@cashcows.com, or just type in

cashcows.com [unclear 9:4]
Mac: Okay, now the call to action was just a - was it a call me? Shouldn't
you add a web - shouldn't you...?

Man 2: Well, that’s the thing, because I’m speaking in front of people, I
would just give out number if I was...and my website. I didn’t really have
time to finish this.

Mac: That's fine. No, that’s good...

Man 2: On the web I would directly ask for the order or say, '$49.95 or
$105,' or whatever it is. Then they click here, tell the description of the
money back guarantee, and then it would take them to the next page
where it would say, 'Yes, Nico, I would...'

Mac: Thank you. Thank you very much for sharing that with us, and I 'm
appreciate to see what you can do in five minutes. You can see, if you get
to it, you can black it out in five minutes. This is part of the value of this
experience. And I’m sure that other people will be talking to you
afterwards; please snare him. Who's next at the mike?

Man 2: One more thing; it took me four years to be able to write like this.

Mac: I bet it did. Took you - I don't know how old you are but it took you
as long as you're - doing this kind of thing is that you're using everything
you know about your market, your human psychology, your product place,
your customers, your inter-relations. It's not one thing. What you're
striving for is in a sales prospect like this, is what's been called the
greased shoot. Or grease slide. You want the prospect to go down the
slide, not hitting any razor blades or bumps, or rust spots or anything
that's going to slow them down. You want them to go from the top to the
bottom, smoothly and slickly. Nothing stopping them, nothing going, 'Oh,
no! Oh no.' So, the greased shoot. There weren't any stoppers there, were
there? In his copy?

Reading it out loud, not matter how experienced or how good the
copywriter, reading it out loud to a group, you get the - when you hit the
spike in the greased shoot, people go, 'Oh. Uh-huh,' and it's really visceral.
It's interesting because people follow it along, you're seducing them with
your approach. Go ahead.

Woman 1: [inaudible 11:42]. It's just a little display type ad. It says clip,
a little...

Mac: And where would you run it?

Woman 1: I would run it in a magazine.

Mac: What kind of magazine? There are only 15000 magazines. Where?

Woman 1: [unclear 12:02] or Network marketing.

Mac: Okay, you're going to run it in network marketing magazine.

Woman 1: This is the -Lose up to ten pounds or ten inches in 10 days,

guaranteed; in caps. [inaudible 12:16] sizes in only 10 days. 14 meals
included and all three products for only $59.95. Free computerized body
analysis; $65 value. To first 25 callers; 817-424-5204,
www.firstfitness.net/healthyday. What do you have to lose?

Mac: Except weight. (Laughter)

Woman 1: Guaranteed.

Mac: Does she have a risk reversal? Can she benefit from it, because it’s
kind of a pig in a poke; you know what you're buying right.

Woman 1: Money back guarantee.

Mac: Pardon me?

Woman 1: It's got a money back guarantee that guarantees...

Mac: Oh, it does, sorry, that went by me.

[inaudible 13:02 from audience member)k guarantee

Woman 1: Sir, where it says lose up to ten pounds and ten inches in ten
days, money back guarantee. [inaudible 13:13] For 30 days. You have 30
days. 30 day money back guarantee.

Mac: Well, not until you make - you haven't made the price offer. I
wouldn't make the terms guarantee until I had put the price in front
somewhere; because it's going to be putting the cart before the horse. You
want to get through the psychology of, 'Well, what does it cost?' I mean, if
it costs a buck, I don't really care that much about the guarantee. If it
costs a thousand, I care a lot more, in terms - so there's a lot of interaction
on that. Now, why would you pick that medium? Why would you pick the -
you got a free ad?

Woman 1: No, I'm a columnist in a magazine; I've been a columnist for

over 8 years, so obviously I have a built in following there, so that would
be...

Mac: But, that you may have a following, but is there any reason to
believe that there's a concentration of people who want weight control
products for themselves, in the network marketing magazine?
Woman 1: Well, I think there is, simply because my husband and I have
run a full page ad for about 10 years, and we've gotten a big response.

Mac: Okay. That's a good answer.

Audience Member: What's unique about your...[unclear 14:23]

Woman 1: Body chemistry correction. We're the only ones that correct
five major body chemistry things in ten days, it's not just...

Mac: Body chemistry correction?

Audience Member: You know what I would do is think and reduce your
cost to 'per meal.'

Mac: Reduce your cost per meal? Well, I don't know - you see, there's lots
of different sales points here, and we could work any one of these ads,
productively spend an hour - to look and see - does she have - however, I
did hear a comment, 'Does she have a unique selling proposition?' Is it a
clear one? Is it a benefit oriented one? No, it's a feature oriented one,
right? What is it again?

Woman 1: Correct your body chemistry while losing weight and sizes in
only ten days?

Mac: but what did you call the process?

Woman 1: Body chemistry correction.

Mac: Is that phrase used in your ad?

Woman 1: Correct your body chemistry.

Mac: No, but at least that's benefit orientation; she doesn't just lay out
the process. And what's the headline?

Woman 1: Lose up to ten pounds and ten inches in ten days, guaranteed.

Mac: It's like back pain always works for chiropractors' induces the
question of what are they looking at at the moment. So it isn't - given the
state of the weight loss product market, you might say, 'If all else has
failed,' - you might go to the person who's the multi-buyer, because they
tend to have heard that pitch before, a million times. So you have to say,
'I acknowledge you've been down this road, but this one really works,
really, really, hones, honest.' Okay, thank you. (Applause) I understand
this is a difficult process and I appreciate everybody's bravery and -

Man 3: Did you just want me to start?

Mac: Yes, lets' start - just introduce yourself, and your company, so that
people can talk to you later.

Man 3: My name is Chidacash and I'm with Serenity Transformational

Tours. Enter the mystery, a life transforming tour to Machu Picchu. Go
beyond the normal travel experience. Journey into the past, saviour the
high Andes of Peru. Enjoy time to linger in ancient Incan ruins. You will
also have the opportunity, in this remarkable experience, of 17 to explore
new dimensions of your own potential. Gain insights and learn new skills,
which will empower your life when you return home. Spring or fall, limited
number. Book early to ensure space. And all inclusive fare. Visit our
website or phone - and I've got the number; 800-944-2655; for more
information and a free booklet on getting the most from travelling in
another culture. Remember to ask about our guarantee of satisfaction.

Mac: Okay, what was the headline again?

Man 3: Enter the mystery; a life transforming tour to Machu Picchu.

Mac: I'm sorry, what was the first word? Sorry, I'm not getting it.

Man 3: Enter.

Mac: Oh, enter the mystery.

Man 3: Enter the mystery.

Mac: Well, that's one that might work, and you might have a couple of
others. That's a particularly - your proposition is fairly straightforward, but
the headline on that sort of ad, and the framing; illustrations around it
would be critical in your response patter. Enter the mystery might be too
transcendental, and you might test something - 'Visit ancient ruins and
transform your soul,' or something, You might test some variations on
that.

Man 3: I've considered a transformation tour to Machu Pichu

Mac: But that's...

Man 3: The same thing.

Mac: That's the same thing, and try and - the thing to test there would be
some big concept, not little changes and phraseology, but some big
conceptual differences. What else could he sell?

(inaudible comment from audience member 18:24]

Mac: Transcend your reality. That's still along the same mystical lines.
Now, does he want to sell - this is a positioning question. Is he more
effective selling travel? Or internal experience change process?
(Comments from audience) It does come back to his market, but that's the
kind of thing you test. You try and find whether you're better off leading
with the internal question, or the external question. Those are two things
to start right away. The other is what are the triggers for people buying
your services in your direct experience. What makes them...?

Man 3: Well the image of Machu Picchu itself. And it's been quite amazing
because with what we've put out already, we've had people who have just
come for the walk, and then they discover more. And we've had people
come there particularly for the spiritual side of it.

Mac: Now, the question is, are you more - and this is a testable question.
What if you did a headline that said, 'Bored?' or 'Bored with life?' I don't
know if that would work better, but you see, that tests a different
psychological button, and rather than assuming them want
transformational psychological change, all you're doing in attracting them
in a particular state that they find in themselves, and then providing a
route out. That would be a testable thing. But thank you very much, and
it's a real pleasure to hear your ad, and I wish good luck with your
business, (Applause)

Isn't this interesting? I mean, at this hour of the night, with really just a
couple of minutes to block this stuff out, and people doing a pretty good
job.

Man 4: My name is Marvin Knighter, and I have a pharmacy in Vancouver.

It's one of the products I'm marketing right now. Cut your drug costs by up
to 50%. Prescription drugs in Canada and produced by the same high
quality manufacturers. You can mail or fax your prescription to Mark's
[unclear 20:24] Pharmacy in Vancouver for fast, convenient service, and
have your prescription mailed by express post. For order form, call 1877-
747-6664, or check our website at www.rxcanadaforless.com.

Mac: Who's your target customer?

Man 4: Americans. (Laughter)

Mac: No, no, no. Okay, what are most people's reaction to this? [inaudible
comment from audience member 20:48] I couldn't care less, my insurance
company pays for it, right? If your covered, if you’re covered.

Man 4: 91 million people aren't covered.

Mac: I understand. But you say, 'Uninsured?' or 'Drug' - see, it's flag - you
have to flag somebody's special need. If you tested 'Uninsured?' or 'Drug
costs eating you alive?' or something that flags an immediate felt need;
you'll get a stronger intake into the ad. Once you get into it, your
proposition's pretty clear, given that you have to sell prescription
pharmaceuticals, and there might be a question on - you might want to
say, 'Customs, no problem. We ship internationally.' Something so that it
says the mechanics won't weigh anybody down. But when you're
headlining, you want to get at the deepest felt psychological need that
covers the most people in your marketplace. Question?

Audience Member: One thing I [unclear 21:48], you said express post,
you don't call it...

Mac: That's right, for America, it's not express post, it's either express
mail, or overnight express or something like that. But we don't say
express post. And that's an important nuance to pick up, although it would
tend to confirm your Canadian origin. (Laughter) Thank you. (Applause)

Man 5: My name is Greg Baroni, and this is an actual radio ad that aired.

Mac: Okay, good.

Man 5: And I won't tell you what I do, because hopefully the ad will do
that. Will you expose criminals, or invite them into your business?
Intellifacts intelligent background checks are the most accurate and
affordable searches nationwide. Intellifacts offers personalized customer
service that you can trust. Whether you hire one person or thousands`,
call Intellifacts now. It's all up to you. 1800-208-9422. That's 1800-208-
9422. Intelligent hiring means knowing the facts. Intellifacts.

Mac: Okay, that's pretty good, right? What's one thing that I heard wrong
with it? Maybe it's just my ears but one thing I heard? Do you want to
expose criminals? I don't frankly care about exposing them, all I want to
do is avoid them. (Laughter) Exposing them sounds like it has liability for
me, so I go, 'I don't know about that. I'm not in law enforcement, I'm just a
business man.' So that one might chill - if they think they're getting
involved with litigation and prosecution, and they have to be a witness
and stuff, it's a killer. So that could be a spike in your shoe. So you want to
test some variations on - what's the headline, if you just read it without
that?

Man 5: Intellifacts, intelligent background...

Mac: No, no, what’s the headline now?

Man 5: Oh, it's 'will you expose criminals or invite them into your
business?'

Mac: Are you inviting criminals into your business? Just forget about
exposing them. Isn't that a powerful enough proposition? (Audience says
'yes.') See, exposing them may be something you want to do, but chances
are - this is where you have to get feedback from people who can give you
- who have their antenna up, as Mark Victor and Brian - you have to feel
that stuff through.

Man 5: Initially we had it written to totally keep criminals away from your
business.

Mac: Yeah?

Man 5: And the feedback we got is of somebody who's paid their debt
back to society and wants a job, There ought be a job that's suited...

Mac: Who did you - now, see, this is a really important point. There's
feedback and there's feedback. There's feedback, which is chatter from
people who aren't real prospects. And then there's the other kind of
feedback, which is - what do we call that? Buyers, customers, clients.
That's feedback. That's the feedback you should listen to. You can't satisfy
everybody else's social engineering goals. You have to survive in a tough
business, so there's a lot of feedback you'll get from people, which is
totally extraneous, and you can say to them, 'Do you own a business? Do
you have employees? Are you worried about security concerns?' 'No, I’m a
social activist.' (Laughter) You go - you really have to pay attention to
where people are coming from, because the only feedback that truly
matters, other than moral, legal and ethical concerns, are from people
who are customers, clients, and potential customers. [inaudible comment
from audience member 25:32] Yeah.

Man 5: That's the way it is. Absolutely. If we got it wrong - yeah. We did
the background and we reported inaccurate information. Now, let me
clarify that. That means inaccurate and doesn't match what the courts
have,

Mac: Not proper due diligence.

Man 5: Now, if the court is inaccurate, then we have liability, which

happens all the time, believe it or not.

Mac: Are you bonded?

Man 5: We have errors and omissions insurance.

Mac: How much?

Man 5: One million.

Mac: Okay, we're insured - our results are insured to one million dollars.
See if you can do that...

Man 5: They don't care about that.

Mac: Oh, maybe they don't and maybe they do. Try it in an ad and see. I
mean, the fact that you can get bonded, somebody else has taken a
million dollar risk on you, and they may not be the closer in it - it may not
be the first thing they look for, but it may be a pre-emptive positioning for
picking you out over another service, that isn't bonded or doesn't say so.
Thanks.

Man 5: Okay, thanks.

Mac: Thank, you, very good. (Applause)

Man 6: alright, this is an ad in a trade magazine for entertainment

industry. Headline: Do you want to work full time as an actor? SAG says
only 10% of their members work full time. We teach you what they know
in only a tenth of the time they took to learn it. Learn how to get the job,
and learn...

Mac: Say that - sorry, I didn't quite hear that one. That last line; I didn't
quite hear it.

Man 6: I didn't even stumble; I’ve got to do it again?

Mac: No you didn't, it just didn't register.

Man 6: Okay. We teach you what they know and a tenth of the time they
took to learn it. Learn how to get the job and learn how to sell the job once
you've gotten it. If, after our training, you don't feel you're a better actor
than ever before, take back you're tuition; we don't want it. Call us toll-
free; 888-705-8540 for a free consultation, and get the edge over all those
other actors, now.

Mac: Okay, what's wrong with this ad?

Audience Member: Makes it sound like that happens [unclear 27:49]

Mac: Yeah. Okay, the other is, 'we teach what they know.' The 'they' is
kind of a floater, isn't it? I mean, you don't know whether SAG knows, and
who says they know of anything about keeping their actors employed full
time? Do they pretend to give people full time employment? SAG?
Man 6: No, it's just - SAG only - SAG says; it's like a state, it's a quote.
SAG says only 10% of their actors work full time.

Mac: Right. But who is it you’re saying you know better than? Or...?

Man 6: Oh I see, yeah. I'm saying that the successful actors, yes; the 10%
of successful actors who work full time.

Mac: Oh, okay. Well, say successful actors again. That [unclear 28:32] got
lost on me. That's a much more believable proposition, if you say -

Audience Member: Just say 'in a tenth of the time,' not - to learn. I don't
care about that last little bit.

Mac: Yeah, that's right. Yeah, in a tenth of the time you're wasting? Sort of
stuff like that.

Audience Member: I would do it as a time frame instead of a tenth of

the time...

Mac: Like what? Time frame like what?

Audience Member: Six months, six weeks...

Mac: Results guaranteed in some period of time? Well, you could try that.
That's a testable proposition. That's the kind of stuff you test to see if it
makes a difference. [Inaudible comment from audience member 29:07]

Man 6: Probably not. We couldn’t' do it. I don't think anybody could. In

fact, I know nobody can.

Mac: Now, you might test a couple of variations of headlines, and another
concept might be rather than them being worried about being employed
full time, you could say, 'Actors and prospective actors. Does your family
believe you'll never make it?' I mean, it's a little more - (Laughter) But
that’s the kind of stuff you try to refine, get a little bit more gut-level
concern in. Okay? Thanks. It's great.

Man 6: Thank you.

Mac: I’m going to move through fast, because I want to hear - most of
these are pretty well constructed, but you just hear the way you can tune
this. Do it in a mastermind - create your own little mastermind group
that's sort of like this; people who are good business people, and have the
sense for sales and have their eyes and ears open; and you get feedback
on how to put your ads together. It's a collaborative effort, it’s not a
singleton; you're not [unclear 30:24] up in his garret, writing a novel. This
is an ad, it's a sales process. It's like salesmen getting together and
sharing their best stuff. The process is closer to that then it is to writing a
novel.

Man 7: Hi, my name is Joel Burrows, I'm a marketing consultant, based

out of Temecula, California. This is an actual ad...

Mac: What kind of consultant?

Man 7: Marketing consultant.

Mac: Marketing, okay.

Man 7: This is an actual ad that ran for a client of mine. They advertise to
the heating, ventilating, and air-conditioning market. And they sell a
particular product that helps to lay out sheet metal patterns. Here it goes:
Put a layout expert inside your computer. All the solutions you need in one
integrated package. Fast, easy layout, without expensive plasma
equipment. Easy, affordable estimating; seamlessly integrated. Now even
the smallest shop can afford computerized pattern layout development,
fabrication, estimating, and job costing. So easy, even beginners can do
layout, so versatile you can customize fittings to virtually any dimension,
with the click of the mouse. Metric or standard measurements allows for
any metal thickness. Great teaching and learning tool. Exact point sized,
optimized metal and cut waist. Designed to fab software Inc. Download
your free trial at www.designtofab.com, and receive a free gift. 'I literally
saved hundreds of hours and thousands of dollars immediately after using
this software, and it is so easy to use, I was using it to make fittings in
minutes.' Tippy Luda, shop attendant, Los Angeles.

Mac: Okay, and if that testimonial could read just a little tuning, and 'It
added $135 an hour, it pays for itself pretty fast.' You get a value
proposition payoff on a quantitative basis. What was the line in there
about 'put so-and-so in your computer?' Sounded like The Sopranos.
(Laughter) Put a...?

Man 7: Put a layout expert inside your computer.

Mac: How about 'it's like having a layout expert inside your computer?'
Because, really, you have this - (makes noises) (Laughter) No, but it's a
good, straightforward ad. Did it work?

Man 7: She mailed out 13,000....

Mac: To whom?

Man 7: To the subscriber base for Snips Magazine, which is a prominent

magazine in the H-back.
Mac: Controlled circulation, or paid circulation? Controlled in the
publishing business; you have two different kinds of magazines. Controlled
is, you start getting the magazine one day, and you don't know why.
(Laughter) And six months later they send you a card saying, 'If you want
to continue receiving this magazine, please sign this card and put your
proper title, and your phone number, and whether or not you employ
more than half a person.' And that's a controlled circ.

Man 7: That's the control, and then what was the other one?

Mac: Subscription.

Man 7: Subscription.

Mac: Subscription, paid subscription, is worth literally five to ten times in

terms of affinity and advertising value, what a controlled circ publication...

Man 7: That's a good question; I don't know the answer to that.

Mac: But the 13,000 has to be weighed and - maybe everybody gets it
and nobody reads it.

Man 7: This is what happened. She sent out 13,000 of these the first
week in November. 200 downloaded the free trial...

Mac: That's good.

Man 7:Nobody's purchased it.

Mac: There's a flaw in her second stage then. Either, A; what's the first
thing’s most likely? The product doesn't work, right?

Man 7: No, it works great.

Mac: Or else, the installation process is a bear, scary, ate something on

your computer...?

Audience Member: They downloaded it? There's no auto-responder back

to follow up?

Man 7: Oh yeah. She's got an auto-responder, an email follow-up, a letter

follow-up...

Mac: Is it an expiration - is it a crippled or timed download?

Man 7: It's a 30 day trial.

Mac: Maybe you want to make it a shorter trial from point of download; it
blows up in a shorter period of time.
Man 7: Okay.

Mac: what's the price point?

Man 7: She's got a few price points; $1000, $2000, $3000,...

Mac: I don't know if you can sell a thousand dollar program through
download. By itself. It's too much. I think if there's just a day - maybe you
can demonstrate it, but it would seem that a thousand dollar program is
pretty pricy, as stuff goes now. And that's just maybe too high a price
point, to be selling through that methodology. Needs, more packaging, she
should investigate price point, first of all. See if there's a price hurdle
there. A thousand bucks is pricy.

Man 7: Yeah, well they actually had a lower price before...

Mac: And?

(Audio missing)

Mac:...cost.

Man 7: no, they had some reasons for doing it, but...

Mac: But internal reasons. They weren’t market acceptance reasons or

anything like that, they were...

Man 7: Yeah, I think they had some internal reasons for doing that.

Mac: Well, that's what happens with internal reasons. Thanks. It's very
good, it's an interesting ad. Did you have a question on it, or is...?

Man 7: There was the follow-up issues I think we need to work out.

Mac: Yeah, that's right, because your whole advertising process isn't done
until the offer is made, and there's an opportunity to respond, so the fact
that this might be a good lead gen, which it clearly is; that's not where it's
failing. It's failing with something we can't see. See, because 200
downloads is a lot of downloads for something like this. [unclear comment
from audience member 00:38] You know, do they have a test...?

Man 7: It's a very niche market, and there’s not, as far as I know, there's
not any other companies that are selling this particular software, that'll do
these things as a stand-alone package. There are other companies that
are selling it as part of a plasma table system, that costs $40,000.

Mac: Yeah, that's right, say that in the ad if you can, because that's a real
value builder. The issue becomes are you better off selling it as a sales
strategy question; you're better off selling it as packaged product, with full
support and documentation; is customer service a big - do they have any
customer service? Is there any tech rep service? I mean, there are a lot of
issues downstream from where you were going. Thanks - we've got a
whole bunch of people...

Audience Member: Can I comment on this?

Mac: Try and get feedback; if you have these issues and you want to talk
to him about this, go talk to him, if you think...

Audience Member: Can I say something for the guy? I have a tip for him.

Mac: I'm sorry, I can't see you. Sure, go ahead.

Audience Member: Well, what's very important is that you market

directly to the decision makers. If all kinds of people read that magazine,
and the download is free, so a lot of salespeople or even - all kinds of
person…

Jay Abraham Mastermind Marketing 11

…kinds of people read that magazine, and the download is free, so a lot of
salespeople or all kinds of personnel can download it and try it, but you
have to direct - market direct to the decision makers, so the headline of
the ad must focus in on the decision maker; the one who has the money
to buy the product.

Mac: and that's a very - you probably heard him say focus on the decision
maker. That's a tricky question. You sometimes need the end user to
stimulate the decision maker, because the decision maker - that is to say
the financial gatekeeper, isn't always the end user. So you have to get
evidence in their hands it's worth the money, or have a guarantee. With a
thousand dollar price point; even a $500 price point; if you had a
performance guarantee - 'We guarantee we'll save you 20 hours of
professional time in the next month.' [Inaudible comment from audience
member [1:29]

Well, it's a lot of tactics with that, and I wish we had time to go into them
all, but you should pay attention to some of these dynamics, and started
paying attention no to this front-end, which worked, but to the secondary
steps. Dan?

Man 8: My names' Dan Bantley and I own a trade school. 'Adores men
and women. Do you love hunting and fishing but hate your job? Gain a
clear advantage. Learn a career that will complement y our outdoors
lifestyle. Be you own boss, make your own hours, control you destiny. Call
the Pennsylvania Institute of Taxidermy for more information about your
new career. 1800-GREYFOX, or visit www.studytaxidermy.com.

Mac: Reactions? [Inaudible comment from audience member 2:21] Well,

it’s an interesting question, because I actually talked to him about his
earlier. What's your naive assumption about school taxidermy? What are
they teaching you to do? Stuff animals. That's not what he's teaching
them. IT's a $23,000 product that -it's a school of taxidermy business;
yeah you have to learn how to stuff animals, but it's a business course; it's
a business opportunity course, in many ways. See, this is what you've
done is an interesting thing.

You've said the affinity here that you've discovered is outdoors people. But
your headlining could be different from that, and this is where you test
positioning. Your headlining could be 'Hunters, fisherman - do you want a
business and profession where you're totally on your own?' So you could
sell the business proposition dominant, not the love of the outdoors. Even
though you’re targeting outdoors people as a prime proposition, because
they've proved to be your market. So your positioning could be the people
looking for a business proposition, somewhat related to their core
interests. and that's how you test the positioning. And we talked about
whether or not you should name to School of Taxidermy Business, or
Institute of Taxidermy and Business, so the business aspect, which is
dominant in his course, could come up higher, rather just than the naive
assumption you're just going to learn to put the deer on the wall. Which is
what I think most people would assume, without any other prompt to the
contrary.

Man 8: Yeah, the business today has changed. We do a lot of dioramas.

75% of the work we do in our private studio is large life sized animals
done on dioramas, so...

Mac: Well, you could also do another positioning, which is 'ten surprises
about taxidermy as a business and profession.' And go through some of
these things of interest that you're just adding to here now. That's great.

Man 8: Thanks.

Woman 2: Hi, my name's Barb Steel, and we sell high tech health
products that help take away pain. This is an actual email that went out to
3,000 people who had opted into receive more information from us. Why
do thousands of Canadians buy and use Solartherm Mega Relief Cream?
Because it works. Now available for the first time in the US, this mega
strength therapeutic cream is specially formulated for the relief of pain of
muscles and joints. It provides warmth and comforting relief for hours. Not
only does it have menthol to dull the pain, but it also contains a special
patented strength of MSM with professional-grade aromatherapy. It is like
an aromatherapy massage in a jar. Do you suffer from pain? Do you suffer
from arthritis? Simple back ache? Minor aches and pains? Turn to relief
you can count on. Solartherm Cream, $24.95 for a 1 month supply. Either
the pain goes away or you don't pay. Special offer: $10 off Solartherm
Mega Relief Cream with any purchase of our soothing Solartherm wear;
which is our back-end, which we really want to sell. Call 1800, 24 hours a
day, or order online at www.solartherm.biz.

Mac: Okay, now, pretty good ad? What's missing? One enormously
important element is missing.

Woman 2: Unique selling proposition.

Mac: No.

Woman 2: What?

Mac: Testimonials. The single most important - in non-prescription

medicine; alternative medicines, and treatments, is testimonials. Because
you can't present scientific evidence, and people go, 'Yeah, okay, I guess it
won't hurt me, but will it really work?' And the most compelling evidence
is from a credible and passionate testimonial.

Woman 2: That's a point.

Mac: And the more the better.

Woman 2: That's a great idea. We had a problem with unique selling

proposition, because the FDA lawyers say we're not allowed to say it's
unique.

Mac: That's where a testimonial can say, 'I never found anything like this.'

Woman 2: Perfect.

Mac: And you can't say it, but they can, because it's their personal
opinion.

Woman 2: Yeah.

[Inaudible comment from audience member 2:16]

Mac: Why does it start with a question? How would you rephrase that as a
question?

Audience Member: I would take - though she has it as a question, I

would...
Woman 2: Why do thousands of...

Mac: Why would the blanket assertion be better than the question?
Because you like it better? No, because I’m just saying, questions are a
lead in. A question, if you have an interest in the question; you implicitly
want to read the answer. The statement may or may not be intriguing. It's
the kind of stuff, if you really have an opportunity, you can test. But
questions that have an intrigue factor are good as headlines. They’re
dangerous, however, if you don't know what you're doing, because you
can say, 'Who can imagine a more powerful proposition that Preparation
H?' And you go, 'Who cares, I don't know, I don't want to know.'

If it can be answered more than one way, by a sceptical soul, you don't
want to ask the question. If the question leads you into the copy, it might
be powerful. How to's are excellent headlines, of course.

Woman 2: Like, how to thousands of Canadians find relief from pain? How
do they find?

Mac: Well, that's a little - but how thousands of Canadians find relief from
pain might be powerful.

Audience Member: But the answer is 'because it works. ‘Do you think...?

Mac: That's where the testimonial approach - her answer is that it works.
The only evidence you can say that is from testimonials. You probably
can't even say, 'Because it works.'

Woman 2: So I can say, 'Learn what Solartherm uses,' or say...?

Mac: Excuse me?

Woman 2: Learn what Solartherm...

Mac: Right, but you really to re-plot the ad so you actually have some live
testimonials in there. That's a critical element in that. Thanks.

Woman 2: Okay, thank you.

Mac: I'm sorry we're pushing you through it; it would be wonderful to go
into depth, but we're dropping like fruit flies at the California border here.
(Laughter)

Man 9: Hi, my name is Will Green. This is an ad that I would run in

Millionaire Magazine, the Rob Report, and Entrepreneur. The headline is,
'How much are really worth? Would you diligently work 20 hours a week to
accumulate $20 million over the next ten years, and save thousands on
your income tax as an added benefit? Free $200 information package,
including four training videos. Send $20 to cover shipping and handling
to:' and then the address.

Mac: What do you think? Greased shoot, problems with the copy,
something where you just go nuh-uh. [inaudible comments from audience
5:03] Well, as a lead gen, interestingly enough, specificity can work
against you as a lead gen. What was your original proposition? Read that
first paragraph.

Man 9: Okay. 'Would you diligently work 20 hours a week to accumulate

$20 million over the next ten years.'

Mac: What does that sound like? Sound like 20 hours a week; 'Where am I
going get that? I don't even have time to go to the bathroom right now.'
(Laughter)

Man 9: I think my market is executives out of work. That's my market...

Mac: Well, then say, 'Are you an unemployed executive? Would you be
able to give - not 20 hours - two hours a day - yeah, two hours part-time.
Something, because 20 hours sounds like you should be getting paid for it.

Man 9: But it is a lot; $20 million is a lot.

Mac: Yeah, but you know what? It's like winning the lottery - it's too much.
That's one of those things you should test. That payoff is so big, that most
of the people could not aspire to making that much money. They wouldn't
allow themselves to think about it. If you'll see, some very good biz op ads
will say, 'Do you want to make $1,000, $3,000 or even $10,000?' That's
because when people read it, they pick the aspiration point that they're
comfortable with, and they don't see the other ones. And so - because if
you say, 'Just $10,000,' you might be able to justify it, but it might fall flat
as a - because you just screened out - you might be able to say - you can
show logically that it would pay off that way, but people don't believe that
they can make that much. So that's one of those things.

Man 9: My sense is that I want to screen people out. I want nothing but
the top echelon.

Mac: Well, then you would. (Laughter) So, if that’s what you want, that's
good.

Man 10: I'm Mike Levy with 'We Notify' from the San Francisco Bay area.
This is a draft for a direct mail postcard. 'Uncover buried treasure in your
business. Businesses routinely suffer loss of revenue in conjunction with
relocating their offices and operations. We Notify, the move
announcement specialists, guarantee that your move announcement will
provide bottom-line pay off. Producing move announcements yourselves
commonly requires 2400% more staff time than We Notify, with uncertain
follow-through and unknown results. Call Wenotify.net today, before it's
too late. We answer the phone. 800-68609496, www.wenotify.net.'

Mac: Anybody else confused? Do you have any idea what they do? What
the service is? I don't, I mean, you're - move announcements. Because
you shifted into that real fast, without explaining what it was, and I’m not
sure it's self-evident. What is it, and what's the benefit? What's the
actual...?

Man 9: It's for businesses that are relocating, and need to communicate
with everybody they do business with.

Mac: You need to say that very - you can't, even though it may be a
throw-away to you, it isn't a throw-away to anybody else. It's not a familiar
- it's something they do once every blue moon, and they don't think about
that as a - the move - 'Take away one part of the moving nightmare. I
mean, nightmare of moving.' Something like that, which is, 'all the millions
of people you've got to notify; customers, whatever, we do that for you.'
Rather than say 'move announcements,' which I think isn't on anybody's
do list, per say. So you have to remind them that they have to do it. Isn't
that right?

Audience Member: It’s like a wedding announcement or something.

Mac: Yeah, I don't think - even though you may be right, it's not
something that I would say, and you can ask around, that most people
have on their list already. So you're introducing - you're assuming it’s a
given as something they're worried about, and I think you have to do a
little more selling of the product - proposition first. That's my reaction. Get
some feedback. Thank you. I'm going to - because it is really late for you
guys, and I still want to take on the individual copy stuff for the people
who gave them to me. If they want to stay. And otherwise, I'll do it for
them - because I know you've got 7:00 tomorrow. This is still - we used to
do this two, three o'clock in the morning. No, no, no, you sleep after the -
you sleep Tuesday. Tuesday, you got time.

Man 10: Allergy relief in 20 minutes, with herbs. Dear friends, and I know
you have allergies, and I know you suffer from runny nose, headaches,
and...

Mac: Try and bring the mike up a little closer. Just start over. Because you
were a little bit out of range of the mike.

Man 10: Okay. Is it better?

Mac: Yeah, that's better.

Man 10: Okay. Allergy relief in 20 minutes. Dear friends, I know you have
allergies and you suffer from a runny nose, headaches, and watery eyes. I
know the medication you're taking will relieve your symptoms, but it also
will give you some side effects, and is also kind of dangerous for you to
drive while you're taking medication. We have herbal solutions for that,
and within 20 minutes of the taking, you can get relief without side
effects. And I do have a testimony here, you want to read it?

Mac: Yes.

Man 10: The herbs prescribed by Dr. Wong has been a big help with a
severe allergy problem I have had for years. I have no runny nose, no
watery eyes, and very little congestion at night. Autumn is a very heavy
allergy season for me, and I have been doing so well lately, that I have
had people ask me who my allergist is. I sleep all night and wake up very
restful. I have not had this kind of sleep in over two years.

Mac: Did you have risk reversal in here?

Man 10: So the supply of herbs is for two weeks for $30, and...

Mac: That's not a risk reversal, that’s just a sale proposition.

Man 10: Yeah, and we offer 12 month money back guarantee, no

questions asked, and no [unclear] either.

Mac: 12 months, huh.

Man 10: So call 512-453-5352.

Mac: I think you need to adjust - you have to adjust your risk reversal to
people's [unclear 4:29] concern. What's the first thing this ad needs? A
headline, right? 'Are your allergies driving you crazy?' Something that
encapsulates the feeling, not the symptoms; but the feelings people have
about their symptoms.

Audience Member:...really blurry, and say, 'Can you read this, or are
your allergies blinding you?'(Laughter)

Man 10: How about 'When allergies hit, what happens to you?'

Mac: What's that?

Man 10: When allergies hit, what happens to you?

Mac: It's testable. I think you could find something that's impactful and
short, that is in a short phrase, how people feel about their own allergies,
not how you feel about their allergies.

Man 10: So saying, 'Are your allergies driving you crazy?' That one you
would test?

Mac: I mean, that's down the line that I would go. 'Are you allergies
embarrassing - are your allergies an embarrassment?' I mean, you can run
some changes on how people feel about their allergic symptoms.
[Inaudible comment from audience member 5:34] Well, because you've
got to - you can't sell everybody everything all the time. [Inaudible 5:44]
Then you have allergies. (Laughter) Well, this is a little...that's a strategy
question, and a good one to ask. And maybe you could take to him about
that, because that might work, but I don’t know that. He seems to have
targeted allergy presenting - presentation. People who are allergic know
they're allergic, and are a definable and in fact, flaggable market, where a
lot of other symptoms - although there might be a payoff. If it's a cold for
instance, the only time you're feeling that is when you have a cold, when
if you're an allergic, you know it - either you just had an allergic reaction,
or you're just about to have one, so...

Audience Member: That's like rolling, right, how you...

Mac: Yeah, and so you have to get them at the optimal psychological
moment. Thanks. I’m going to power through at least, to give you guys
some chance at sleep. But this line never ends, my God. We've added ten
more. I'll do it. I don't care, I’m worried about you, not me. But I'll do it if
you - if you stand up here, I'll punch it out with you.

Woman 3: Helena Long, from Sasquatch from Canada, Global Money

Management Club, and we do seminars and financial planning and stuff
like this. 'Paying too much tax? How much tax have you paid this year?
Could you do a better job than the IRS of using this money? Perhaps you
would invest those dollars and retire early...'

Mac: Well, when you heard that, where’s her headline? That's it right
there. That's the - you pull that up. You say, 'Can you do a -' because
that's a very impactful way of saying that. 'Could you do a better job with
the IRS, using your own money?' I mean, that’s a concept you bring up
top, not one you bury in the copy. What was your starting headline?

Woman 3: Paying too much tax?

Mac: Well, I mean, that's okay, but a zinger proposition - 'could you do a
better -' that's more impactful. It just is.
Woman 3: Okay. 'Perhaps you would invest those dollars and retire
earlier. Maybe you would take your family on a winter holiday. Reduce or
eliminate your debts, support your church, buy a new car, renovate the
kitchen; the possibilities are endless. Monday to...'

Mac: And the solution is right at hand. See, you want to suggest you have
a solution. 'Solution is easier than you might have dreamed,' or 'Just a
phone call away,' or - you want to bring that circuit - the need back into
the fulfilment of the need, which you're providing.

Woman 3: Okay. And what I had was, 'Monday, December 16th, 2002,
7:30pm, LA Airport Hilton. An accountant lawyer will explain how you can
reclaim your tax dollars. No cost, no obligation. RSVP to: phone number,
or email for further info.'

Mac: What sort of clientele do you anticipate? What time of person?

Woman 3: Middle to upper income people.

Mac: Because you want to do something; if you have a special appeal to

certain types, you want to flag that as best as possible. 'Do you make
more than X thousand dollars a year?' 'Do you pay more than X thousand
dollars in taxes.' Something that says, 'Oh yeah, [unclear 3:17] me in.' So,
thanks, good. Attention, interest, desire, action.

Man 11: My name is Clive Swarzski, I’m a financial advisor, and this may
be a postcard mailing or an ad in a publication like Forbes or Investor's
Business Daily. I start off with a question: 'Yearn to keep more of the
dollars you earn? Let me show you the way. In a few short hours, you'll see
how you can have more money than you think. Go to
www.cliveswarzski.com. Take me up on my improved, no risk, special free
offer, and begin to win.'

Mac: What's it missing? Credibility factor, right? Who is he? You're

essentially handing - any financial proposition, you're handing over your
money to someone, and the first thing is, 'Well, I like the happy talk, but
who is this person?' So, 'Let a financial professional with XYZ - financial
credential, bonded to $10 million, 30 years’ experience, and a track record
of XYZ, help you reach these goals,' rather than just an open ended,
'Here's what you want.' Because what's your market place, do you think?
Is it sophisticated or unsophisticated?

Man 11: Sophisticated.

Mac: Sophisticated, they want to know who the hell you are. It's the first
question, who are you? They've heard every financial pitch, they get 10 a
day. They get ten financial advisors a day smiling and dialling. They get -
this is, 'Hold the phone please for Joe Schmoe from Morgan Stanley.' 'Hi,
Bob, how are you doing today? Wanted to talk to you about mutual funds,
municipal bonds.'

Man 11: Does it matter if credentials go beyond my name?

Mac: No, because you've got to get it up front, because it's sort of like -
as Aristotle said, 'The first principle of rhetoric is the character of the
speaker.' So the character of the speaker matters. You're making what
sounds like a lot of - sounds too good to be true claims, unless you have
some credibility when you're saying it. If it came on a letterhead and you
were a known quantity, better, in the particular tone you've chosen to at
least have your credentials be commensurate with the promises you're
making.

Man 11: Makes sense.

Mac: Testimonials for the extent that they're permissible? Sure.

Testimonials are always - testimonials are the great secret weapon of
direct response marketing. Testimonials are third party endorsements.
There's some rules and FTC rules; there are lots of - but still. If they're real
or vouchable, there's nothing like testimonials. Because it says, 'This guy's
for real. This proposition is for real. This product's real.' Take care. Good
night.

Man 11: Good night.

Man 12: My name is Ken [unclear 6:29] , and my company is a feature

film production licensing company; we make five or six feature films a
year, and I’m branching a new division which is selling the effects portion
of the company. We have animators, so I'm talking to visual effects
coordinators at the studios, advertising...

Mac: You're selling the animation services?

Man 12: Yes.

Mac: As like, somebody on contract?

Man 12: Right. And my ad is a direct letter or mail piece to them. To the
visual effects coordinators; I’m pretty certain production companies,
advertising agencies and studios.

Mac: Sure, okay.

Man 12: 'Could your production use more money?'

Mac: Who? Who's it to?

Man 12: This is to the visual effects coordinator of...

Mac: Does it say? Does it have little flag up in the corner that says, 'Visual
effects coordinators?' To...

Man 12: Like a letter?

Mac: Underline. A call-out.

Man 12: Dear Joe Shmoe...

Mac: It doesn't have to be 'Dear.' You can just flag it up on the...

Man 12: Oh, visual effects coordinators...okay. 'Attention...'

Mac: 'FYI, visual effects coordinators.' I mean, something that says if

you're...

Man 12: That would be more like an email wouldn't it? Directly to their
email, once I find out what their email is, I have their name on it, and...

Mac: You still should flag them because they're looking down for a reason
to read it.

Man 12: Okay. Flag...

Mac: You're talking to me. Okay. You know my job title, you know my
function anyway. You may not know anything else, but you know that.

Man 12: I know your job title. 'Could your production use more money?
Now you can have major studio level effects at independent prices. Our
Emmy award winning team is ready to work for you, and with the addition
of our new European facility, your production dollar travels even farther.
Call us for a bid and receive our Volume 1 Royalty free stock footage CD
absolutely free. Animators are standing by. Call us at UFO effects at 818-
846-0465 or visit us at www.ufoeffects.com and download our promo.

Mac: What's the sales cycle on it? How long...?

Man 12: How long for the CD?

Mac: No, what will they know - what do they need to know before they
can make a commitment to you? What are they likely to check out?

Man 12: Well I think they’re going to, first of all, it's a finite group of
people who I’m competing against. So they know this is a feature film
company; now they're seeing us as an effects - so the time limit is, if they
have a job that they’ve got coming up, they will get this email or letter,
and they'll go right to the website and see our stuff, call us immediately
for a bid. Also the fact that there’s a CD in here for free, of stock footage;
and to these guys, that's got value; and it's free.

Mac: You see, more convincing is 'Our schedule is filling up fast, give us a
call...'

Man 12: Oh I see. Put urgency there.

Mac: Because also, posture. You're selling real hard, you're leaning real
into it, and you're - so you've got to come back a little bit and sell
professional posture, first, rather than all the (makes noises); which
sounds, for a professional sell, you’ve got to be a little careful not to look
like you're desperate.

Man 12: Okay, so...

Mac: Or you say, 'Check out our work, we're booking now.' Just something
that says, 'Well, they're hard to get, but this is my opportunity.

Man 12: They're available right now.

Mac: Well, you say, 'The schedule's filling up, we still have a couple of
slots for the...but you know, they're filling up fast.'

Man 12: That's good.

Mac: Now, does it make a lot of difference? It might. I mean, it's a tonality
thing.

Man 12: Yeah, demand. It's always the same in that business, if you're in
demand...

Mac: If you wouldn't like reading that ad face to face with - to say, you
made a call to one of your prospects, and they said, 'Well, we didn't see
the ad,' and you said, 'I'll read it to you.' And if it made you cringe reading
the ad, you shouldn't...

Man 12: Shouldn't do it.

Mac: Shouldn't do it. You should do something you're happy, that they’d
be happy to hear.

Man 12: I'd probably minimize [unclear 3:41].

Mac: And it's believable from you. And it's in the right tonality. If you're a
leader in features, or even a player in features, then...
Man 12: On the independent level, we are. We're the leaders...

Mac: You can say that - you can say, 'Take the animation facility - put the
animation facilities of a scrappy and successful independent, to work for
you.'

Man 12: Okay.

Mac: Limited availability. As Mark Twain said, 'You can sell anything in this
country as long as you sell one to a customer.' (Laughter)

Man 13: I'm David Cathers, my business is an office furniture doctor;

basically go into offices, repair their chairs and files and stuff, but this one
is directed more towards sales of new chairs or [unclear 4:33]. 'Did you
test drive your office chair just on the showroom, or did you try one of
ours free for day long, for two weeks, to really feel the comfort? Have you
gone to an office furniture store when you're tired after a long day, since
that's the only time you can find in your busy schedule?

Didn't that new chair feel great, at least the five minutes you spent in it?
Any chair might feel good at this time of day, after walking around all
those stores, too. But after you take the chair to the office and plant
yourself in it for a full day, how does it feel? If you would like, the office
furniture doctor will bring a new chair to you after listening to your needs
and wants, and let you try it in your office, at your desk; your comfort
zone, for two weeks. Then you decide. Call the office furniture doctor
today, 253-858-3083. This doctor makes house calls.

Mac: Hmm. Interesting. Where does the - I'm a little concerned with office
furniture doctor ending up being somebody who sells you a replacement
product than a remediation product. Because, it's just like a bait and
switch.

Man 13: Exactly.

Mac: And its like, 'Oh, that's not really what they're selling,' and all of a
sudden, the air goes out of your blue, because your expectation was here,
and then to go, 'Oh, they're just selling furniture.' Where if you - and I
understand the concept you're reaching for; you're 90% there, but office
furniture doctor sets you up slightly...wrong. You could say - I mean, if you
say, 'We can adjust...' I mean the pitch could be, 'We could adjust - we'll
do our best to make your current installation work for you.' And maybe
you can. 'And if all else fails, maybe we can find the right prescription for
a comfortable solution.' But you don't start with, immediately we're going
to throw out the chair you spent $1500 on. You know, that's a hard sell.
Man 13: Yeah. Appreciate it.

Man 14: Hello, my name is Alec Thomas, I’m with...

Mac: You see, a lot of what I'm saying has nothing to do with the copy, it
has to do with the sales proposition and the interaction. I mean, it isn't the
words, the words are fine. It's the concepts that sell. It's the salesmanship,
it's the psychodynamics of the relationship.

Audience Member: Bring in what we do first, and then that's the

ultimate ruse.

Mac: But you may not realize how strong a direction that 'doctor' sets you
up in a particular direction. Very strong. And so you have to be aware that
that's - you have a whole set of expectations, based on that premise; that
you have to deal with from then on in.

Man 14: Hello, I’m Alec Thomas with PMGroup.com PMGroup like, PM,
night-time. And we market website design and tools for real estate agents.

Mac: And the PM Group is related to when you work, or...?

Man 14: Actually, the name of the company is Performance Marketing

Group, but we found that there’s a couple where there’s companies
around the country; they have that; so we're - I'm actually toying with
changing it to Prime Meridian - night time, because we do work mostly at
night.

Mac: If you - that whole trade name aspect, if you - you've got to find
some kind of unique spelling or concept within that to make it work.

Man 14: Right, that's why we're going with perhaps the PM - Prime
Meridian, or whatever that's called for night time. But any case...

Mac: It's actually post meridian.

Man 14: Post meridian, thank you.

Mac: But Prime Meridian is better. Prime always being better than post.

Man 14: Okay, there we go. Here we go. 'At PM Group, we help real
estate agents get more leads, listings and sales. We're so good at what we
do, we guarantee results. We've helped some agents reach personal
goals, and have helped others reach the highest levels of distinction in
their respective agencies. Not just office level, but regional and national.
PM Group has helped agents double, triple and quadruple their web
business. One of our clients did so well, he bought his own nationally-
known franchise. Another clients, simple put, outgrew the desk fees and
opened their own independent office, located in the heart of the fastest
growing - in one of the fastest growing luxury communities in the region.

I better stop here because I know that fear of success is the number two
cause of procrastination. Maybe you don't want to sell twelve, $650,000
plus homes in just two years, like another one of our clients. Several went
over $1.2 million. Maybe you don't want to work that hard. Maybe you just
want to make...'

Mac: Don't say that. That's a spike, isn't it? You don't want to work that
hard. That's like a - you're out of here, bud. You got that hook.

Man 14: A lot of agents say that's too hard for me, so that's why I'm
trying to answer that question before they say it.

Mac: Yeah, but you know what, it's like - if your prospect - treat them with
respect, you see. Because they'd say, 'You're not talking to me anymore.' I
mean, it's a real subtle thing, you have to listen to that.

Man 14: Okay.

Mac: That's why you have to go - if people are going, 'Uh-huh, uh-huh,'
they're nodding their heads; classic sales - if people are nodding their
heads and then all of a sudden they go (silence on audience), bad sign.

Man 14: Okay. So the next one was 'Maybe you just want to make sure
you're not getting left behind. In any case, we can...'

Mac: That's another negative. You want to build up a positive image. I

mean, you can go slightly down the negative path. You can't go too down,
I mean; the sales proposition - you can't go too far down this negative
caricature path. Once you start to belabour that, you lose rapport. It's a
rapport break, and people want to re-establish rapport immediately. If you
go on long with it, you just lose them, totally.

Man 14: That's going...okay. [inaudible comment from audience member

1:05]

Mac: You say - you can do a lot of things with it. You could say, 'If you're a
performance master's client,' - I just re-framed you. 'If you're a
performance master's client, you are willing to work the extra hours. You
are willing to do this. You are willing to do that. We work hard and you do
too.' Phrase it - re-frame it, positively, so that I can identify with it.

Man 14: Okay, okay. Let's finish here. 'In any case, we can help you
achieve your Internet goals, because we specialize in web-based real
estate marketing. You've seen our flyers for years, and we're still here and
stronger than ever. Real estate agents that decided to add our Internet
marketing experience to their business plan, have achieved the results
mentioned above.'

Mac: Internet business marketing technology. Don't mean to interrupt

you, but business marketing technology goals, or business marketing
goals, or new technology goals, but not Internet goals. Don't have any
Internet goals, per say.

Man 14: Okay. 'Now it's time for you to benefit from the experience
gained while producing those results. You can skip all the time consuming
and costly trial and errors, bypass all the dot com hype, and let us show
you how to succeed on the Internet. To get started on a guaranteed path
to success, call 1800-346-7046. P.S. Visit www.realtestimonials.com, to
view real testimonials written by your peers about what PM Group has
done for them. You'll see why we can guarantee your success. P.P.S. Start
2003 off on the right foot by investing in your Internet presence this year,
and write off your taxes - write it off on your 2002 taxes. Don't wait until
2004 to get your money back. Let Uncle Sam help you pay for your 2003
marketing expenses, by taking advantage of a tax benefit real estate
agents are entitled to. Talk to your tax advisor to see how you qualify.'

Mac: Yeah, except for the 'talk to your tax advisor;' you could put that in
little, tiny print, something like that. I mean, 'Start making the Internet
work for you today.' That's where you want to - you want to end on a
strong proposition; on a re-summation of your central theme, not on, 'Oh,
talk to your lawyer.' That's the last thing you want to do. (Laughter) You
may have to talk to a lawyer, but you don't want to send them over there.

Audience Member: Sounds like your [unclear 3:31] was to ask them to
read testimonials on your website?

Mac: Yeah, there's a case for that, if it's a lot of businesses out there
trying to pitch, who can't get the testimonials, or failures and stuff.

Man 14: We have over - around 50, 60, 70 testimonials on the website.

Mac: Offering a white paper is a great - and white papers still pull like
crazy. If you ever offer a white paper on 'How to get the most out of your
Internet site...'

Man 14: Will that work with real estate agents?

Mac: Yes. Oh yeah, sure.

Man 14: Okay, because [unclear 4:05] in some cases.

Mac: Sure, internet-oriented one.

Audience Member: Can I make a comment?

Mac: Sure.

Audience Member: When the sales pieces involves them to sell benefits,
but in the gimmick, you talk a lot about 'we.' 'We can do this, and we can
do that.' Frankly, I don't want to hear about you, I want to hear about what
you can do for me, so you have to address me as a reader of the ad, not
talk so much about yourself. Talk about me. How can I benefit.

Mac: Point's well taken. He said that the beginning part he talks about
'we' a lot, rather than talking about the benefit orientation of what you do,
and I'd have to go back and analyze it exactly where that falls off the
wagon. But, your basic proposition is correct. You need to have benefit
orientation, rather than what I call things with an 'I ' problem. 'I do this, I
do that.'

Man 14: Well, what we're trying to do is position it, like you're talking
about credibility, to...

Mac: Yeah, but that may be a second stage thing. If - the first thing you
want to do in any kind of these things is tap into the felt and precede me.

Man 14: So the headline, 'At PMGroup.com, we have helped real estate
agents get more leads, listings and sales. We're so good at what we do,
we guarantee results.'

Mac: Well, I wish I had time to - let's work on that later. Maybe sit down
with him and try and help him with the ad. Because I really want to get
these people on, and it's headed towards 12:15. So, just to give you an
advice in case you want to bail. I'm [unclear 5:47] master; I'll keep
pushing you to to plain.

Man 15: Hi, Bill Shaw. This is going to facilities managers, in a letter.
'Dear whoever. Stop doing my job instead of your own. How many times
have you had to stop your own work to listen to an employee complain
about the janitor? 'They forgot my garbage, there’s no toilet paper, my
computer was unplugged.' Hundreds of companies across America are
saving time and headaches by switching to Omex, the office maintenance
experts. Systems proven by decades of experience cleaning A-class office
space just like yours, guarantee results that are competitive price. Call the
professionals at Omex today for a free evaluation of your needs, and a no
obligation quote. It may just free up enough time of your day to get you
home on time. P.S. You must be happy with our service after 14 days, or
you won't owe us a dime.'

Mac: Okay, any comments? I have some, but...

Audience Member: Slow breaking. It took a while into the ad before we

really knew what you were doing.

Mac: Your shock opening turned me off rather than turned me on. In other
words, there's not enough context there for you to say, 'Stop doing my
job.' It sounds very self-interested on your point. There may be a
conceptual way to re-frame that. Use that. What's the alternate?

Man 15: 'Stop the interruptions.'

Mac: There's probably something there conceptually. You have to find the
right phrasing, because right now, you have to make the benefit like, 'Get
home...' You could say, 'Management's secret - office facilities
management secret weapon. How you can get home and get your feel up
before 6:00,' or something. I mean, do something where it's a payoff for
them. Rather than you're worried about whose job it is, because it sounds
like you've got a shop steward in your pocket. I mean, you don't
anybody...'This is my job, and you can't touch it.' You don't want to start
down that path. But the payoff is big for them personally. Are they the
specifier decision making as to whether to hire the service?

Man 15: The bigger the job, the less likely so.

Mac: Well, that's an issue that would have to be dealt with. How to make
the case for - making the case to get the headaches off your chest, save
your company money at the same time. I mean, you have to have a
payoff for everybody; for the management and for yourself personally. If
you make just the personal appeal, they can't sell it. If you make the
personal and - because they have to now take this proposition and sell it
to the authorizer. To the real specifier, decision maker. Okay?

I'm sorry we can't go through everything on the basis that I'd like, but
we're just trying to get you...

Man 16: David Reader, Reader Law Corporation in Los Angeles. We

represent individuals and companies in bankruptcy cases, in business re-
organizations and bankruptcy litigation. This is aimed at the individual
bankruptcy segment of our practice. It's a classified ad or display
classified. It will appear in magazine that targets senior citizens, meaning
anybody over 55. To goal. the direct response from people over 55 or
referrals of family members who are having financial difficulty. Reads as
follows: 'Are you being pushed to the while by your creditors? have you
had enough? Are you ready to take back your financial future?' Then the
text. 'Are creditors calls and letters becoming a daily part of your life?
Have financial downturns affected your peace of mind? Do you wonder if
there is any way of living a normal life again, free of creditor harassment?
Reader Law Corporation has helped hundreds of people like you regain
their financial footing. We have strategies that will fit your needs. For a
confidential review of your options, order to receive a free copy of our
special report, '10 Questions and Answers on Bankruptcy,' contact Reader
Law Corporation 310-557-8911. Visit our information packed website at
www.readerlaw.com.'

Mac: Or call a personal counsellor? I mean, this is like people in trouble,

they're not - visiting the website may or may not be a...

Man 16: Sometimes they're not ready to pick up the phone and have
person-to-person contact. They want to...

Mac: Sure. And that's a great thing to say. 'If you're not ready to pick up
the phone, get more information...' Your opening? What is it?

Man 16: Okay. 'Are you being pushed to wall by your creditors? Have you
had enough? Are you ready to take back your financial future?;

Mac: That's something you could work on, because it's - 'pushed to the
wall.' You say, 'Are you paying your credit cards with credit cards? And
about to go up in smoke?' I mean, the other thing - the basic flow is fine. I
might be able to pick it apart. The question I have which you started with,
is the presumption of market, so people over 55. I don't think that
corresponds with my understanding of that market. You'd have to test
various market places, but my guess is that people; 40, with a lot of credit
card debt, are the most likely candidates. You'd have to get some - maybe
you can get some demographics on bankruptcy, and find a medium that
matched.

I mean, for instance, there might be - what are they doing to get by? Are
they reading something in the paper, are they reading the want ads in the
paper? Are they selling off merchandise? Can you put an ad in the
pawnbroker's section in the classified? You need to find a place where
there's a high probability where your targets are - because your
proposition's fairly straight up. So you need to find your market. That's
going to be the trickiest thing. I know from talking to other people with
bankruptcy practice.

Because it's very difficult to bankruptcy to look like everybody and

nobody. So, maybe you have a letter or something that - what's the first
sign of trouble? Their mortgage servicer? Can you buy a list form
mortgage services about stuff about to go to foreclosure? Can you get in -
can you get a list from those pre-foreclosure...?

Man 16: there are things like that published, that could be gotten.

Mac: Yeah. And you send a letter or you make a phone call or whatever to
those people. But finding that psychological, almost ready to go under
person, is the critical point.

Man 16: Thank you. [inaudible comment from audience member 12:26]

Mac: If it's not too extensive, and you're going to make a lot of
comments, I’m going to ask you to come to a mike, because...starting to
feedback? From that? Okay, I’m not supposed to hunch over. Okay, no
hunching. Okay, thanks. I wish we could spend more time, but perhaps
we'll get a chance to get you some feedback from...

[Inaudible audience comment 12:50] Already it's not been - I’m kidding
here. Okay, be short, come on.

Audience Member: Okay, the headline was made up of three questions.

Then you start the text with also three questions...

Mac: Yeah, it's a little difficult...

Audience Member: Didn't answer any of the questions...

Mac: Yeah, it's a problem, problem solution approach. It has to be more

succinct, it has to get to the nub quicker. However, if he demonstrates
empathy with the position of the potential customer, it's not all bad.
Okay, so that - as long as the empathy is there, the structure may be a
little clumsy, but the empathy will override. But he has to find something
that grabs them, at that particular moment. And certainly can be cleaned
up, and if we were re-writing the whole thing on the spot, he'd be well
served by re-writing it.

Man 17: Okay. I'm Howard Hoffman, I do sedation dentistry, and I've
written a radio ad targeting the business person. We go on to radio
stations, mostly talk radio, and...

Mac: You already do this?

Man 17: I already do this with a different commercial. Like it's - re-wrote
something a little differently. Okay. 'Do you have time to visit the dentist
every week for months and months? If not, sedation dentistry may be the
answer for you to achieve the smile of your dreams. I'm Howard Hoffman,
a dentist in La Ventura, Florida, who treats many busy people, like
yourself, from all over the country. I understand your concerns and fears
about time and comfort. Using small...'

Mac: I'm going to interject. Why do they come to me? Why do they come
all the way across the country to me? Because that's the question you got
right away. Why are they coming all the way across the country? So
answer it. So why do they come all the way - because I have a unique,
patented, proprietary, not to be duplicated, methodology system,
practice, whatever. You want to come in with that.

Man 17: 'Using safe, small pills, I'm able to sedate you, and accomplish in
one or two visits, what might take months of visits in the traditional
manner. You know the reasons you haven’t taken care through the years.
Now's the time to achieve the great smile you desire. Call now for free
information about sedation dentistry at 305-933-3070. That’s 305-933-
3070.'

Mac: What’s a spike there? Safe, small pills, right? Small pills is deadly.
You've got to say, 'Safe, local or low -' you come up with a - could be 'non-
invasive.' Some kind of description that doesn't say pills. Low threshold
anesthetic. Come up with something that - painless is important but also,
why the small pills?

Man 17: Because that's what we're using, we're using pills instead of...

Mac: Well, what’s in the pills? What's in the pills? Placebos?

Man 17: No.

Mac: I mean, I don't know, it's a pill, so why pill?

Man 17: I'll work on your mouth with the pill.

Mac: Okay, what's the pill.

Man 17: It's triazolam.

Mac: Okay, and what kind of anaesthetic is it?

Man 17: It's in the Valium family.

Mac: And so 'We use a mild tranquiliser to take away your fear and your
memory?' That's another spike?

Man 17: A mild sedative.

Mac: 'A mild sedative so that you feel no pain and...

Audience Member: How about like, 'No shots, no gas, mild oral
sedative.'

Mac: That's good. I like that, that's very good.

Man 17: It's a mild oral sedative, however we do use shots and gas as
well.

Mac: So the extent that you can't say that. You can say, you could weasel
it a little bit; that's a professional term...

Audience Member: Say pain relief techniques.

Mac: Yeah. 'We use as little medication as possible.'

Man 17: I've been running a different ad for about three years,
advertising these as a small, safe, blue pill, and I have people all over the
city approach me and say, 'I want your magic pill.' I mean, they love it.

Mac: Safe, blue pill. You didn't say blue before; I would have a totally
different feeling. No, I don't know. I mean, I personally would test it
without, see what I get. Because there are certain people who will like
that, and then other people who will be scared of it. So I don't know. That's
my reaction. I asked them, and that's what I got, because I’ve got the
same problem with it. That could be just me. That could be the kind of
stuff you need to test.

Audience Member: [unclear 00:14] magic pill to make...painless.

Mac: Yeah, if you could say magic with quotes around it, then that might
be for your market; appropriate. That's good. Point of interest. What's
different between this one and the one you're running?

Man 17: The other one is more to the phobic patients. Fear.

Mac: Just phobic of dentistry, period?

Man 17: Period. If going to the dentist is one of your greatest fears, you
need to know you're not alone.

Mac: And we have a solution for you.

Man 17: And then we go into a whole thing; 'You wouldn't think of having
your tonsils or your appendix taken out with sedation...'

Mac: And what was the lead here? And what was the prosp...?

Man 17: Do you have time to visit the dentist every week for months and
months?
Mac: My guess is your phobia ad will out pull this, three or four to one.
But you don't know. I don't think the time factor, for most people, is the
dominant factor. But that would be my - that's just a guess, and that's
testable.

Man 17: Right now I'm getting business people in, who - I'll accomplish a
dozen visits' worth of treatment in one day.

Mac: Well, you put that in a business publication. I mean, as a broad-

based consumer thing. We're talking about testing; this is the kind of thing
you can test. This is the kind of thing you can show big results and big
differences in pay off. And if not, if they both work, then you've got two
ads to run, not one. Okay? [inaudible comment from audience 1:38]
Maybe, maybe not. Maybe it's not necessary, maybe they know they do
and they've just been putting it off.

Man 18: My name is Pat Solis, gynaecologist from Houston. And this is a
letter that we're going to do direct mail with. The headline: 'How can you
help yourself prevent cancer of the cervix and many of the other problems
other women are experiencing today by having your gynaecologic exam
and Pap smear? Dear Miss, do you know that it is estimated that this year
in the United States, about 22,000 women will die from cancer of the
reproductive organs? 37,000 from cancer of the breast? 36,000 from lung
cancer? And 30,000 from colon-rectal cancer? Many of these deaths can
be avoided. Early detection, giving a better chance for cure is the key. Our
office is available to you to provide your quality gynaecological testing,
evaluation and treatment. During your gynaecological exam, a PAP smear
will be done to screen for cancer of the cervix, and a mammogram can be
scheduled if indicated to screen for cancer of the breast.

The following additional services can be provided for you, including

gynaecology and fertility, reproductive medicine, female laser surgery,
micro-surgery, pregnancy testing, family planning, Pap smears, laboratory
tests and feminine hygiene products and vitamins, for you that are
available in the office. Our office philosophy is to provide you with the
following: attentive, personalized, efficient gynaecologic care, positive,
reassuring and professional treatment on an individual basis. To listen and
communicate with our patients with care and respect. Provide multiple
[unclear 3:32] services and products in the same office, for added
convenience. Courteous, friendly, pleasant staff. Bi-lingual physician and
staff. Clean, quiet and comfortable office atmosphere. Most insurance
plans are accepted. Call the office for a complete list.'

Mac: Now, what was the headline?

Man 18: The headline is 'How you can help yourself prevent cancer of the
cervix and many of the other problems other women are experiencing
today by having your gynaecologic exam and PAP smear?'

Mac: You might want to simplify that, and come up - and this isn’t a final
answer, but something like 'Don't become a cancer statistic.' Try to
encapsulate that, in a shorter, more dramatic fashion. And you can repeat
that line down in copy. After you go through the statistics; so 'Don't
become a statistic.' That could be your theme. So they don't have to
understand all the statistics, other than they're scary and you want to
avoid them.

Man 18: I just have a bit more: 'For additional office information and
gynaecologic information, please visit our website at
www.houstongynacology.com. You can also listen to me live on Spanish
radio stations: La Tremenda, [unclear 4:49] radio, K Live and Que Buena,
93.3 FM. One of patients, [unclear], has this to say about our gynaecologic
care: "I have been a patient of Dr. Solis since 1992, and I'm very satisfied
with the way he's managed my problems. He listens to my problems,
answers my questions, and makes communication easy. I would
recommend him to anyone that might need his services." That's Martha
Pineda, a radio celebrity. If you don't have a gynaecologist or if you're not
satisfied with the gynaecologic care you're currently receiving, please call
today at 713,' and the number. For your appointment, and to receive your
complementary brochure, [unclear 5:30], your health and ob-gyn exams
[unclear.] P.S. Bring this letter with you by 23/01/03, and I will also give
you a free 90 day supply of our health plus multi-mineral, multi vitamin.

Mac: It's basically well structured. I have a feeling; and I have to go

through it; that you could probably tighten it up by about a third. There's
some redundancies, but no, the proposition is clear. I'd worry a little bit
about who you're sending it too and whether or not you're professional
vocabulary might not be intimidating to a more lay-market. That would be
my first level of concern.

Man 18: Mac:, what was that statement you made initially, about the
headline?

Mac: Oh, I said, 'Don't become a cancer statistic.' Are there any other
thoughts on that? But that's - I think it's a very deliberate and respectful
approach. Maybe, you list a little over the heads of - I've worked with
some lay people to read it to, and have them ask you every time they
don't understand something, and put a simpler formulation. I mean, I
understand it fine, but I wonder if your target market would. But I think it's
a very nicely set-up letter, but as I said, I worry about the vocabulary
level.

Man 19: Good morning folks.

Mac: We can talk about this stuff tomorrow.

Man 19: It's morning already, yes. Marc Anthony, Training Force Success
in New York City. This is a direct marketing letter that will be going to YEO
members; essentially business owners that make over a million dollars a
year, minimum, in revenues. It starts out with a quote in nice bold letters
that quick and easy to read. "Learning to solve the challenges of hiring a
winning team, leveraging sales efforts, and managing staff allowed me to
go from a start-up business to 8 million in sales in only five years, with
virtually no start-up capital."

Mac: That's a dissertation, not a headline. (Laughter)

Man 19: ...long copy letters...

Mac: Yeah, only Jay can write those things, you have to get Jay to write
that, because I can't write those things.

Man 19: Okay, well. "All while maintaining 45% profit margins in an
industry that averages only 15% margins. And five years later, sold my
interest in the company for $15 million." Then it says, 'Dan Farish, Ernst
and Young Entrepreneur of the Year. Dear Executive, as a fellow YEO
member, I have many coups in the marketing and coaching career, and
proudly can say that having convinced and coached Dan Farish, one of my
clients and close friends, out of retirement, to give a private advisory
meeting to a select group of my friends and business associates, is one of
the biggest. He will share each of his business breakthrough strategies
that allowed him to sell his business for $15 million at the age of 34.' then
I mention a specific success in hiring superstars, then I mention another
specific success in getting excellence from the staff, and then mention
sales and marketing breakthrough that he's created.

'Dan is not a seminar presenter, or rah-rah motivator. He’s a direct and

decisive, pull no punches, make it happen entrepreneur and CEO. Because
of this, he's agreed to share his insights and solutions...'

Mac: This is your lead, right here. This is your lead. The other stuff - bring
that all the way up to the top.

Man 19: Thank you. 'Because of this he's agreed to share his insights and
solutions, but insisted on limiting the meeting to only eight people. He
wants the discussion to be candid, with a vibrant flow of ideas that is
personalized to the issues of each of my select guests. As a fellow YEO
member, I am personally inviting you to be one of the select few that can
tap into Dan's entrepreneurial genius and practical solutions. Call 2...'

Mac: This is a negative sell. You need to set this up like, 'YEO special
event, or spaces limited to eight.' So you really want to be pushing
exclusive - this is so exclusive you can't get in. Maybe a little bit, you know
- so you want to say - you want to have the reclusive expert - 'Reclusive
expert enticed out of retirement for one special session.' Something like
that. Because you want to have this push-pull between the opportunity
and the limited availability.

Man 19: What' we're saying there then is, we said there's only eight
people...

Mac: That is Jay's sell. I call this Brigadoon marketing. You say, 'You better
come now because it may not happen again for a hundred years.' It's true
too. Of course it's almost more - my favourite thing in marketing is to say -
people go; when you work on some copy, and you go, 'Well, that's a great
pitch, and it's true too.' It has the additional benefit of being true, so that's
- the things that have truth to them and their limited availability are very
powerful.

Man 19: Okay. And then as you go to the close, let’s see. 'As a fellow
member, I’m personally inviting you to be one of those select few.' then
it's, 'At such-and-such a time, call 212-683-1834 today to participate.

Mac: For a pre-appointment. You want to keep the posture high. For a -
you have to have some little threshold for qualifying; exactly right.

Man 19: The alternative I had was just not actually saying it in the close
there, but saying, 'Yours truly, Marc Anthony.' Then 'P.S. I will call you
on...blank...at such-and-such specific time to give you more details.'

Mac: You know, that used to be a classic sales approach, but the truth is,
if you don't meet that appointment, they think you're a jerk. And you’re
not restricted from doing it anyway, so to announce it and then not do it
would be worse than not announcing and doing it. So it's a question of if
you're going to make that commitment, assume that they’re going to wait
for you to call.

Man 19: Right, that's what we do and then we schedule into the books
with that; the alarm goes right off.

Mac: Yeah, but you know how - I don't know. You can try it out...

Man 19: That's something that would be testable...

Mac: Yeah, that's something you could try out and see if it works.

Man 19: So with what your advice was about moving that one part...

Mac: Well, you need to make it sell. Only Jay can write those convoluted,
stacked headlines. He's a master at it. And he is because each of his
segments have an embedded proposition in each line. And they're sort of
threaded together like a 19th century novel; but you could bring any one
of them and can bring any one line out as a headline.

Man 19: So you're saying, like take the...

Mac: But I’m not saying you should do that. This is professional level
presentation. You want to see if a more professional approach handles it. A
lot of people will just stop at that long, convoluted thought. And you want
to make some part of it distilled; not congealed. Thanks. Distilled, so that
they get the benefit.

Man 19: So what are your thoughts about keeping the Ernst and Young
Entrepreneur of...

Mac: Ernst and Young is fine.

Man 19: But just shorten that to some degree?

Mac: Yeah, it's that concatenation of ideas that one has to be extremely
skilful - if there’s one bad thing Jay teaches people by example, is that he
pulls of copy tricks or the equivalent of a...

Man 19: Half-court shot?

Mac: Yeah, of a half court, or three-quarter court shot at the buzzer. And
nobody else can do it, and that's - it's a very tricky thing to emulate.

Man 19: Thank you Mac:.

Mac: Sure.

Audience Member: You have to get rid of the part where he says 'He is
my client and friend.' Once you say friend, that takes away the credibility.

Mac: You could say associate, but - 'close associate.' You can say - client,
yeah it means you're - that's right, client is good, isn't it? [inaudible
comment from audience member] Yeah.

Man 19: Could just leave it as client, and take out...

Mac: You could say close associate, if you want to say you have a deeper
relationship, but friend is probably - right, because you say all of sudden
it's not a business proposition.

Man 19: Thanks, Alan.

Mac: What were you going to say?

Audience Member: I wouldn't even use client, I would use close

associate, because if you're trying to build him up as this really big guy,
then they will feel, 'Why don't I just [unclear 14:20] if he's your client?'

Mac: Yeah, there's a danger of that. But you understand - once again, this
isn't copywriting, this isn't fine language, this is sales nuance sensitivity,
and you know, all these things are important, because every one of those
nuances effects - I mean, when we read these things, we're all going,
'Thumb up, thumb down. Where am I? Is it thumbs up?' We're just going
through it, and we're going, 'Do I go further? Do I go on to the next
paragraph, do I go on to the next sentence? Is this a reason to throw it
away?' That's the process we're going through all the time, is thumbs up,
thumbs down thing; and so you've got to be really attentive to something
that's - people are looking for a reason to throw it in the trash.

Man 19: Thank you.

Mac: Sure, pleasure.

Man 20: Hello, my name is Robert Pierce from Sheffield, in England. I'm
opening a fish and chip restaurant in January next year.

Mac: Where? There, in Sheffield?

Man 20: In Sheffield, yeah. It's a big industrial area. And this is a direct
mail letter I wanted to send to the directors of the local firms; mainly
engineering firms.

Mac: Is there something unique about the fish and chips?

Man 20: Yeah, they taste very, very good. The service is excellent. On the
takeaway side, we’re perhaps one of the quickest fish and chip shops
you'll ever go in; you don't spend most of your lunchtime...

Mac: So if there is a payoff, that's it, right. You're quicker in and out, so
that's the sell to the potential industry?

Man 20: That's the sell to the takeaway side; obviously if you're sitting
down in the restaurant it's...
Mac: You're planning a truck delivery service, or pre-packed - like, can you
have a truck?

Man 20: Not a truck, not really, not with fish and chips. Once you've
wrapped them up, you've got a very limited...

Mac: Oh I understand, you have fries - fryers - some place; like in Canada
they have - they probably don't have them anymore, but they did have -
they used to take a lot of school buses and turn them into fish and
chippers..

Man 20: Yeah. We've delivered in the past...

Mac: My father lives in Canada...

Man 20: You know, single orders at the time...

Mac: It was just a thought because - bringing the service to someone is a

powerful proposition.

Man 20: Actually, I was thinking the other day, we have a way of doing
that, if we do decide to go down that route. Basically if we send a
sunflower seed in a plant pot to a firm, and say we're having a
competition on who can grow the highest sunflower, and we're going to
phone you up every week to see how tall it's got...

Mac: Hmm, interesting. Well, let’s hear your letter; I'm sorry I got you off
on a...

Man 20: Right, as I say, this is to the directors of local firms. 'An invitation
to get the best fish and chips you've ever tasted bought for you. Don't pay
a penny. Why would I make such an offer? How many times have you
taken a client to lunch, maybe to impress them? Would you risk taking
them into a restaurant that you've not personally checked out first? I
didn't think so? That's why I'd like to invite you to lunch in my fish and
chip restaurant. I want you to experience the taste, the colour, the aroma,
the crunch of the crispy batter, and the expert service, so you can decide
for yourself if it's somewhere you'd like to bring your clients. I’ll pay for it;
it won't cost you a thing. Everyone has their favorite fish and chips and
your clients are no different. I want them to appreciate you for bringing
them here, because then hopefully, you'll come back again.

Of course, you may decide not to return, but I'm willing to take the risk
and leave the choice to you. To take advantage of this offer, all you have
to do is bring in this letter, and mention it to the waiter, that lunch is on
me. I'll come over and personally introduce you to my business, show you
why we do what we do, and the kind of service you can expect. We're only
300 yards from your company, and there's plenty of parking across the
room. Lunch is from 11:30am to 2:30pm. If you wish to bring someone
with you, the offer is good for you both. I look forward to meeting you
soon. Robert Pierce. P.S. By the way, this is what the managing director of
XYZ company had to say when he came in.' then a testimony...

Mac: Now, you're expecting these people to become your core customers;
the managers?

Man 20: Yeah, the directors of the local companies, or their sales
managers.

Mac: So will it be tablecloth service and that sort of stuff, or is it more

informal service?

Man 20: No, it will be good service. I'm not necessarily sure about
tablecloths, but it will be good service.

Mac: Yeah. So it would be more of a lunch - more of a sit down lunch spot
for middle management and above?

Man 20: Yeah.

Mac: So even though - you could take a salesman to lunch there, or

whatever?

Man 20: That's right yeah. I wanted to target that higher end, and I think
there's more of a chance for referrals from that kind of market.

Mac: What have you got to have on tap?

Man 20: How do you mean on tap?

Mac: Beer. (Laughter)

Man 20: bottled beer mainly; wine.

Mac: Well, you might mention you have a license and...

Man 20: Yeah, that's a good point, we're fully licensed.

Audience Member: Is that going to be included with the meal?

Mac: Well, no, but...

Man 20: No, that's extra.

Mac: Not as a free - well, you know what, a bottle...

Man 20: We could package that together, but...

Audience Member: ....give them a free lunch, and you mention that;
then they get there and they don't get the beer, there's a bait and switch
thing going on.

Mac: Yeah there's always a danger on that. You can say, 'But you can buy
them a short one,' and - I mean, if they really think they're influential, and
they're worth sending a letter to...

Man 20: Well, this letter is mainly to get them in, and obviously...

Mac: You might to test an offer that isn't just a free lunch, but it's buy one
get one free. Get one with my complements, so you bring a friend; so you
double the impact, and you make it a social occasion, and they split - you
know. So it costs you a little less, and you get twice as much bang for the
buck.

Man 20: Well, that's something I could test really, between two...

Mac: Sure, absolutely. That's why I threw it out there. You might want to
make up a coupon or something that is this invitation, that they can
present, rather than the letter; that they actually - you want to have a
little card, right, that goes with the letter - oh, you want them to call for
the card? Or do you want to just enclose it?

Man 20: It did cross my mind to say that 'You may want to call, so we can
reserve you a table.'

Mac: It's a little - it would be more effective if you just sent the card.

Man 20: Like a small invitation, like wedding invitation type card?

Mac: Yeah, that's right.

Audience Member: Is the word 'hopefully' in there or - is that bringing

him down some, like...?

Mac: You know, I think it's a very natural letter, and it doesn't lose me. I
might pick at it, but I don’t' think it's a flawed concept. It's such an
unusual proposition, he's obviously sincere, which is the most important
thing; and quality oriented, that that comes through and we can't address
every - but that didn't strike me as a serious - it sounded like a natural
rhythm in the speech. [Inaudible comment from audience 21:07] Yeah, the
fast - you need to say, 'If you need to get in and out, we'll get you -' you
know, the fast service might be something to think about. Of course, if
you're taking somebody for lunch, you don't want to be hustled out,
either, so there's a downside to that. You want fast…
Jay Abraham Mastermind Marketing 12
…service on takeout, or - and you want, within your lunch, you want to be
able to do it within your lunchtime. 'We'll get you in and out, back to work,
happy...' whatever. So play with that concept, but it's a good point.

Man 20: Thanks.

Mac: Thanks, and well maybe you can give him a hand with that, without
changing his essential character. Hi.

Woman 4: Hi, I'm Leah Francia, and I'm a life health insurance agent, and
I specialize in long-term care insurance.

Mac: Oh yeah.

Woman 4: Okay. This is the first ad I ever wrote. So we'll see how it goes.

Mac: Have you been selling?

Woman 4: I've been in the field for over two years, but I've never done
print ad. So marketing is new for me.

Mac: Sure.

Woman 4: And I've been changing it a little bit, while I was in line
listening to you. Okay. 'What if you were a burden to your family?
Accident, illness, old age, or Alzheimer’s can result in your needing to
receive custodial care for many years. Family takes on the burden to care
for you, hire care givers or pay for you to be in a nursing home. Long term
care insurance protects you, your family, and your hard-earned assets.
Now is the time to long into your options. For a free booklet explaining the
coverage and the cost of long-term care insurance, call 1800-' whatever.
Leah Francia, Long term care. Etcetera.

Mac: Well, you happen to tap into something I happen to know something
about. And you can't sell the fear of those diseases; they're too hard for
anybody to incorporate. You can - there are two aspects to the long-term
care sell. One is, is it precipitated by another family member, a younger
spouse, children, who are worried about it? The concern is - or if it's self-
directed, it's 'You don't want to be a burden to your family.' Okay? There's
also - I know,. but if you document it, it becomes (makes noise). Shoot me.
(Laughter) And so, there's also myths of long-term care approach, which is
- may surprise you to know that most people, to get long-term care, for
not more than 9 months; and they return home with an enormous bill.
That's happens to be true.
So there's a lot of statistics you can gather about long-term care that
really, are different than the conception. Most long-term care is not
terminal, and that's - most people go, 'By that time I won't even know it,
who cares? And I'll be bankrupt and...' You could say there are a lot of
financial considerations, some long-term planning that needs to take
place. You want to protect your - this is 'Protect your assets while you still
can.' That's part of the underwriting, because otherwise you get people
who are uninsurable, so you have to get people who are in their prime of -
who are still in prime health before you can insure them.

So there are a lot of steps to this one; it's not - but one of the things I can
tell you for sure is, you can't sell directly the individual those fears - those
debilitating conditions. You can talk about the impact of those conditions
on their family, and the fact that most people are not - the biggest worry
isn't that when they go in for good, under Medicaid, or whatever it is - I
can never keep those two straight - is when, if the fact that they can have
ruinous expenses for a time. There’s also some financial planning stuff on
family law that you might bring up a little. 'You may well know that there
are some provisions you should make as soon as possible, to protect your
family's assets, so that your whole family isn't devastated.'

So there are a lot of - this is very tricky sell. But I can tell you, the fear
part; the fear's there; it's too high. And once you get too high a fear in a
proposition, people just screen out the whole thing.

Woman 4: So more like protection without the fear. Protection without...

Mac: And protect your family. I'm sorry? Oh, you're - sorry, I was listening
to you, but she couldn't hear you through...

Woman 4: I was saying that then going more for the protection, and not
at all the consequences, I guess, or the - you know, fear, it's so tricky in
this field because reality is fearful. But I think that that's why I took the
bravery to come up here, because...

Mac: Well, take a look at what other people are doing, because it is a
mind - trying to talk about that is a minefield. But to talk about all the
debilitating - the terminal, debilitating diseases, might be enough to scare
a family member into forcing their parents to get it, if they're still healthy,
but it'll just turn the parents off.

Woman 4: Actually, my target market is between the 30 and 60 year old;

that's really my target market.

Mac: But that's not - there are several sub-markets in there you can't
address at the same time.
Woman 4: Yeah, true. I mean, my average age right now is 57.

Mac: And that's appropriate, but those are - you want to protect your
spouse's - you have to really dig into what the real motives are. You
probably need to ask some questions before you sit down and write this
again. Okay? It's not a copywriting task, exactly. I mean , it is, but it's a
complex one. Okay?

Woman 4: Okay, thank you.

Mac: Sure. I might be able to find you a sample of some stuff.

Man 21: Hi Mac.

Mac: Hi.

Man 21: My name's Jim Bertakis, and we're in the - well, Bertakis
Development is my company; we’re in the manufactured home
community development business, and we're very focused...

Mac: Community development?

Man 21: Community development. We're very focused on the back-end,

because we get people that purchase homes and lease lots from us, and
we just...

Mac: Where are you located?

Man 21: Gross Point, Michigan.

Mac: Oh.

Man 21: So we do it in South-East Michigan and Texas. So, I'm not going
to give any more than that; I'm just going to see if my ad sells itself here.

Mac: Sure, go ahead.

Man 21: 'Brand new homes valued at $70,000 from only $39,000. Are we
stupid, or are we that good? Due to the slow economy, Deutsche Bank has
repossessed 22 brand new homes from a dealer's stack at Hidden River
South. Deutsche Bank had a problem, because banks don't sell homes;
they loan money. We solved their problem at a great windfall savings, and
we're willing to pass the savings on to you, just for becoming of Hidden
River South. Sound too good to be true? We guarantee a great purchase. If
Data-Comp Appraisal, the nation's leading appraiser of manufactured
homes, doesn't appraise your home for at least $20,000 more than your
purchase price within 90 days of closing, we'll buy your home back, no
questions asked. Only 22 homes; when they're gone, they're gone. Call
now; 517-264-6800, or visit us at hiddenriversouth.com. Hidden River
South.'

Mac: What's your headline?

Man 21: Brand new homes valued at $70,000 from only $39,000. Are we
stupid, or are we that good?

Mac: I don't know, that might work. I mean, I like the basic concept, but
you might want to say 'Limited time windfall opportunity,' or you might
say, 'Recession...' you might want to word it more...

Man 21: What part, the stupid part?

Mac: Yeah, because that might - I mean, I know from auto advertising;
one of the things you don't want prospects in that kind of sale to think, is
that you're smarter than they are. That's why all the auto dealers get on
personally and look like idiots. Because their customers walk into the
dealerships with the concern that the dealers are too smart and they're
going to take advantage of them; which of course they do; but they don't
want to seem that way, because they want to look like the guy's an
affable dolt. And to suggest that you're smart might put their guard up.
That would be my concern with that line. So you might want to...

Man 21: I'm just curious, 'Are we stupid or are we that good?' Is that -
assumes that we're...

Mac: Well, ask somebody else. What does that say to you? Don't like it?

Man 21: How do you take that?

Audience member: Yeah, didn't like it. I thought if you just skip right to the
end. The first paragraph was strong. The question I had too was when you
said, 'So we've decided we want to pass the savings on to you, just for
moving here.' I was like, why? I guess I didn't get why you wanted...

Mac: Because maybe you could say - you could come up with some
reasonable but vague-sounding business inventory overload.

Man 21: I'm just curious; you said why would we want to be a resident?

Audience member: No, why would you - like what's the interest for you at
passing on the savings? I just [unclear] why would you want to save me
forty...I'm not sure...

Mac: The issue is why - because you're not on a mike - why...

Man 21: Why be a resident? That's what your question - why would
they...

Mac: Why would you be that nice a guy?

Man 21: For the back-end; we want them to be a resident. But they don't
know that.

Mac: Yeah, and you can say, 'We have this special opportunity with an
inventory overstock, because of - and you can help us out and become a
member of the community besides.'

Man 21: Okay.

Mac: You don't want them to think too hard about it.

Man 21: Okay, that makes sense.

Mac: So, it's a question of how sophisticated a market place is, and yours
is - a $30,000 windfall might be enough to get their attention, and just be
satisfied with it, especially with the proposition that it's going to appraise
for $20,000 more than they bought it for. IT's a pretty good proposition.

Man 21: What were they two comments at the beginning? You said...

Mac: Well, that particular phrase; the 'Are we stupid?'

Man 21: Right, take that out; but you were saying something else in
there. Or just take it out entirely?

Mac: Take it out. I don't think it helps or hurts. I mean, I don't think it
helps, and I think if you've got directly from your proposition to your
opening paragraph, which I think is pretty strong, if I remember.

Audience member: Also, question; when you name a specific appraisal

firm, whether you've got some sort of inside deal.

Mac: Yeah.

Man 21: Well, the reason I name them is they're the nation's largest
appraisal firm, so...

Mac: But why don't you say - can you say that nation's - the question is,
does a specific appraisal firm somehow indicate funny business? And the
answer is, can you say that firm; the nation's leading appraiser, or...

Man 21: I said that, it said that. 'Data-Comp Appraisal, the nation's
leading appraiser of manufactured homes.' And that's why we use them,
because - you want to take...
Mac: Say major independent appraiser. And use the word independent,
so it doesn’t look like you're getting a shell game.

Man 21: Major independent; okay. Alright, good. Thank you.

Mac: But other than that, sounds like a very powerful proposition in and of
itself. But the question of where you deliver this medium; I’d be tempted,
given the dynamics of the manufactured home market, to do radio. Not...

Man 21: Radio and print. Yeah.

Mac: And maybe mail - radio; 'Look for our ad and further information in
the paper,' or whatever, so you get a (makes clicking noise).

Man 21: Okay, good. Thank you.

Woman 5: I'm Juliette Easton. this is an ad that's a middle part of the

sales process. Okay, this is an ad that's a middle part of a sales process.
They're going to be searching on search engines for the term 'Coral
calcium.' They're already going to know what that is.

Mac: Coral calcium.

Woman 5: Coral calcium. And they're going to be clicking on a fresh ad

that we're paying for by Impressions, so we want to have a high click-
through. That says, 'Is coral calcium safe? Click here now.' Real simple,
direct. There's a lot of confusion in the coral calcium industry, so they
probably will - a lot of people are looking around a lot.

Mac: Have you run than term through the overture search engine?

Woman 5: Oh yeah, we're already doing that term...

Mac: No, but I mean, have you looked at that? Have you looked at the
searches and done yourself?

Woman 5: Yeah, oh yeah.

Mac: Okay. Overture is a company that sells essentially search engine

optimization that you pay per - several different ways of paying, per click
through - and you get an optimum position. But they have a very
interesting search engine which is open, just if you know how to go into
the site, and you can plug in a term and see how many times that term
and associated terms were searched for in the last month, worldwide. And
it'll give the whole... [inaudible comment from audience member] Yes. And
it's terrific. If you want to look and see - I found out some fascinating
things that - is fascinating thing.
Audience member: Where is that?

Mac: There are several of them, but overture is the biggest seller of
those; of search engine optimizations; you know, Google, Yahoo; they get
the prime placements, and they have a whole bid system so that you can
move yourself up and down the search engine optimization. But they also
have this tool ,so you can look at what search terms you want to grab.

Woman 5: If you type in 'coral calcium,' it'll show everything that

includes coral calcium in there...

Mac: Coral - from coral to calcium, probably...

Woman 5: It'll show me people searching for that plus a whole bunch of
stuff.

Mac: So it's very useful.

Woman 5: We're not even bidding on coral calcium or Overture too much,
because it's too expensive.

Mac: Too expensive. Yeah, you really need to do something else.

Woman 5: We're doing Impressions on Google, and it's about 35 cents a

click through instead of $2.00 or more on Overture.

Mac: Yeah. Try to speak into the mike, just for the record, since nobody's
here.

Woman 5: Okay this is the...

Mac: No offense intended. The real hard core’s here only. Nobody's here;
that's a stupid thing to say.

Woman 5: Okay, this is the copy that'll be on the page they land on after
they click the...

Mac: Okay.

Woman 5: Is coral calcium safe? Safe for you, safe for the environment?
Well, that depends on who you ask. Companies that sell marine coral will
tell you it is safe for you and the environment. But companies that sell
[unclear 2:56] sea coral will explain that mining coral calcium can be
damaging to the environment, and possibly your health. So who's telling
the truth? Lots of confused people call and ask us that question every day,
and they are very grateful when we educate them about the coral calcium
industry, cutting through all the self-serving hype. They always thank us
for our honesty. We created an educational report - Is coral calcium really
safe? - because we understand your frustration and confusion, and
because we know that you want to discover the truth. You just want
someone to be honest with you so you can make an informed decision. To
receive 'IS coral calcium really safe?' fill out the short form below and you
will receive the report in your email box right away. All we ask is that you
give us feedback on the report in a few days, because we want to make
sure we answer all your questions.

Then it's got a form below that says, 'Yes, I'm tired of being confused and I
want to know the truth about coral calcium. In exchange for this valuable
information, I agree to fill out a brief survey in a few days, with the
understanding that you will not contact me again unless I ask.' And then
name and email.

Mac: What's your goal? What's your business goal here?

Woman 5: The goal is for us to reach more people. Right now...

Mac: Are you trying to sell something?

Woman 5: Oh yeah, we're selling coral calcium. Right now what we're
doing is having them go directly to our site that sells the product, but
since we're paying per impression, we want to increase out click-throughs
and grab people who are not clicking through. So I figure with something
that's intriguing - is it safe, with a free report, it's going to grab more -
right now we got about 15% click-through, which is pretty good, but I want
to do this ad in rotating, just to see if we can get a higher - and we're
tracking everything with ad tracker, so [unclear 4:44]

Mac: Well, it's worth a try. I wonder if your approach is so oblique that it
would be very difficult to concert the leads. I can't tell which side you're
on, from that copy particularly. That might be good and might be bad. It's
certainly worth trying, because of your strategy. But sometimes it's safer -
not safer, but sometimes it's more effective to go more directly at them.

Woman 5: Yeah, just go ahead and have the report on the webpage, do
you think?

Mac: Well, say you had 'Download it here,' or you have a summary of the
report, and you say, 'And here's our recommendations.' And so you just
don't - you don't try and three or four-step it, which you have now.
Because the thread can get pretty week. That’d be my concern. They're
already several layers down, just to find you where you are. It may well be
that it's just too deep, too nested, to get...
Woman 5: We could just put the report on the web page; I thought about
doing that.

Mac: You could do that. The question is, how do you build the affinity
between that - you're not taking any opportunity to put a brand up, or
even a company brand or - to get that pre-position for coming later,
because right now I don't know if I'm going to get something from a
research institute, or - I' don't know what's going to come. That might be
good - I mean you can try it, see what happens. I mean, they might be
open to an oblique approach.

Woman 5: [unclear 6:32] something different to test, to see...okay.

Mac: Yeah. I don't know if your market is sufficiently sceptical to wonder

what's in it for them. And whether or not you need to answer that
question, you'd have to - I'd have to try it and see. See if it made a
difference.

Woman 5: They're pretty confused. We have a lot of people calling that

are really, really confused.

Mac: Okay, now you can say - you could either disclose a little bit about
who you are, I suppose, and see if that helps or hurts. That's the sales
proposition. It's an oblique sales proposition, so it's hard to...

Woman 5: Thank you.

[Inaudible comment from audience member 7:10]

Mac: Yeah, I know. That… (Audio missing)

Audience Member: raise, most likely want products...

Mac: Kind of go - kind of open the proposition at the end. That was my
reaction too. He said, they've already had to for coral calcium to get there,
and chances are, they want to make a decision, so maybe you could have
even a couple of nested pages, like, 'Here's our report, here's our
recommendation, here's a special offer,' without making them go back
and forth, and back and forth. I agree with you on that. Give them an
opportunity at the end of the cycle to buy your recommendation, with risk
reversal. [Inaudible comment from audience member 00:39] Okay.

Audience Member: Just saying, if you don’t try to make the sale, they're
going to back to Overture and click on someone else...[unclear 00:49]

Mac: Right, that's right, because it might be too long a thread for them to
say - because there's no suggestion you're going to solve the problem; get
them product. And I think you - my tendency would be to say -
Woman 5: The free reports goes into a lot of...

Mac: And maybe it does, but it's - recommendations and some special
offers. I mean, people who are already that committed, want to buy, even
if they're confused. They just want somebody to sign off on it. IT's a tricky
proposition, but thank you; I do agree with that.

Woman 5: I think we'll just put it directly on the site then.

Mac: Okay. Maybe we can talk about that later.

Audience Member: I was going to suggest something. She might just

want to put the opening, 'How would you like to know the facts and stop
[unclear 1:33].

Mac: Know the facts and stop the confusion? Great line. That might -
that's a great line, that's a real clarifier; that's the kind of - when you're
looking for a headline, that's kind of what you want - you want to cut
through it, get to the benefit. Very nicely phrased. Try that. I would
definitely try that. Definitely writing that one down right now. (Laughter)
Go ahead, please.

Woman 6: My name is Doris Payne and I am going to be targeting this to

pre-qualified investors and investors' clubs - local investor's clubs. And it
would say, 'Back by popular demand. Investor’s real estate seminar. You
will get three full days packed with hands-on, action-based information.
And then in bullets it says, 'How to acquire real estate for less, from A to
Z. How to protect your assets. How to invest wisely with the latest, most
lucrative, financial in the most - in the latest most lucrative financial
arena. We will walk you through your first three real estate transactions.
It's only $999; nine hundred and ninety-nine dollars. Bring a partner for
just $199. The first 50 people to sign up online get the free report of 'What
Real Estate Brokers Don't Want You to Know.'
Www.creativefinancialsolutions.com. 54324...'

Mac: I'd have to go through it in detail. I think you're closing copy actually
belongs at the beginning, and the seminar is the fulfilment of the problem
- it's the solution to the problem, not - you do a nice job of setting up the
benefits, but the seminar and the three days is more compelling after you
say what they're going to learn, than it is beforehand. That's my gut
reaction; I don't know if anybody else has that. In other words, start with
what you're - what's the opening proposition? Go to a free seminar?

Woman 6: It's not a free seminar; you get a free report. If you sign up on
- the first 50 people to sign up for the seminar online, get a free report.
Mac: Okay. That - okay - and the seminar has the payoff that you
mentioned, at the bottom? Is that right? Read it again, because I lost track
of the proposition.

Woman 6: Sorry. 'Back by popular demand...'

Mac: And maybe just because I'm tired. But...

Woman 6: Yeah, me too. 'Investors real estate seminar. You will get three
full days packed with hands-on...'

Mac: Who's 'you?' I think you need to flag...

Woman 6: You, the investor. Because it's...

Mac: But I think you need to flag that 'you.' You say 'Investors will...' I
mean, maybe the way you say it, because I want to know that you know
who I am in this particular case.

Woman 6: 'Investors will get three full days packed with hands-on,
action-based information.' And then in bullets, it says, 'How to acquire real
estate for less, from A to Z. How to protect your assets. How to invest
wisely in the latest, most lucrative financial arena.'

Mac: I don't know what area the real estate investor marketplace you're
going for, but if it's more the individual investor, they're more worried
about profits and maybe risk avoidance, than they are about investing
wisely. Because they're doing fast turnover deals, they're not talking about
long-term mutual fund type investing. They're talking about doing flips
and everything else. So the words 'wisely,' that doesn't translate to
somebody that’s looking for quick profits. Safely, or with limited - with
minimum risk, personal risk, or whatever; but in other words, there's - in
your benefits...'

Woman 6: I said 'lucrative financial arena.'

Mac: That's fine, but there was other more prudent words in there, that
didn't strike at the core of the value-set of the real estate investor of that
type. What's the other one? There was...

Woman 6: I said 'how to protect your assets, and how to invest wisely...'

Mac: Yeah, I'm not sure that's - I'm not sure protecting assets is - I would
investigate whether that's a goal, because they really want to leverage
their assets.

Woman 6: What we do is seminars where we teach real estate, and then

we have another facilitator come in and teaches asset protection; and
then we have another person who is a financial guru and we figured with
that arena, we have the target...

Mac: Are they buying income properties? Are they buying asset place?

Woman 6: We're teaching them how to purchase real estate, but it's the
same audience we're also going to be selling to them; it's going to be a
different person speaking.

Mac: I think you need to get - well, I'm not going to [unclear 4:15] - you
need to get closer to - you need to go to some real estate seminars that
are some of the real estate biz opportunity seminars, and then some that
are the investor seminars; because they don't mix. Those two crowds are
not - don't have anywhere near the same psyches. The people who are
real real estate investors who are cash flow investors, and that sort of
stuff; and who are really asset protection oriented; are absolutely not at
all in the same camp with people who are appreciation, flip, business
opportunity investors. They just don't have anything in common; you can
talk to my find Barney [unclear 4:55], if you can find him here tomorrow.

Woman 6: Can I introduce you to some people with our...

Mac: Both? In the same room? I can tell you - you can talk to a lot of the
real estate guys here; they just don't sit in the same room.

Woman 6: Really?

Mac: Yeah. I mean, it'd be very hard to appeal to both at the same time.
The ones who are interested in rapid appreciation and stuff, or buying
cheap and stuff, are generally - they may have some assets, but they're
generally not wealthy. They're looking for a high leverage business
opportunity; where the other ones are totally different psychologically.

Woman 6: So should I maybe not be targeting it to investors...?

Mac: I wouldn’t try to force them into the same room. I mean, I 'd go after
one or the other, but I think there’s a market - but I think you have to
have - my gut feeling; it may wrong; you could try and see how you do
with this, because you'll appeal, but if you're talking about prudent
investors, that's a whole different mind-set than lucrative investments and
high profitability investments. High leverage investments; they're just not
- as I said, it's a complex - talk to Barney [unclear 6:11] tomorrow.

Woman 6: Barney [unclear]?

Mac: Yeah, he's around.

Audience Member: One last thing, when you say buy for less, I would
say something like 'buy for less in the market now.' [unclear 6:19]

Mac: Yeah.

Woman 6: I wasn't sure exactly what to say, because I didn’t want to step
on any real estate agents' feet.

Mac: That doesn't touch the agents at all. That doesn't cut their - it's a
question of what part of the market you're trying to sell to. And whether
you're talking to real asset investors or whether you're talking to biz op
investors. It's an enormous gulf in the real estate business. But you need
to explore that a little more with people who've done it.

Woman 6: Okay, great.

Audience Member: If people want more information - you're coming to

somewhere for more information, does anyone want more information?

Mac: Well they want to know whether your system works or not, I guess.

Audience Member: But information, you know...

Woman 6: We have a targeted market of people, we belong to investor's

club and we have people clamouring to us, wanting to know more
information, so we provide these seminars, and at the same time, we have
people from the seminars that also the asset protection goes hand in hand
with obtaining...

Mac: And what are you selling in the end? Are you selling...?

Woman 6: We're selling information.

Mac: No. Are you selling information products? Are you selling service?

Woman 6: We're selling the knowledge of how to obtain...

Mac: But are you in the end, selling an information package, or are you
trying to get transactions as brokers, lawyers - are you essentially using
the information as a leader gen?

Woman 6: Both.

Mac: Because it's a very different business. Yes?

Audience Member: I was going ask her. What you might want to do is
call some of the people that attended the seminars and ask them what
they found of greatest value to them, and then these people are the same
people you're marketing to - if you're marketing to the same people - type
of clients, they'll tell you what they found to be the most interesting part
of the...

Mac: the suggestion is, is she should call some people who have gone to
some of the previous seminars and find what they found most valuable,
and you could sense the kind of response you got to your program. It's an
excellent suggestion. [unclear comment from audience member]

Woman 6: We did. And I'll just go back to those and...

Mac: And what did they say? Don't know?

Woman 6: I wasn't at that one and I'm actually standing in behalf of my

husband who must have gone to bed because he's not out here.

Mac: Okay. Well, I'm going to try and wrap it up, the last couple of people,
so...

Woman 6: Okay, thanks.

Woman 7: Well, marketing has been a bit of a struggle for me, so here
goes. This is for our business development seminar, which we - our target
market is small business people. 'Are you a slave to your business?
Connect the dots and make your work, work for you. You can learn how to:
nail your niche, master your markets, transcend time, maximize
management, and leverage leadership. Show stratospheric sales and
crush the competition. If you attend the success system that never fails,
you will gain strategic and tactical means you need to succeed. Priceless
income generating ideas, for only $125, including lunch and materials. If
you don't receive dramatic, innovative, profitable result-getting solutions
by the end of the day, we'll refund your money. Seating is limited, so call
now. 312-9834. Swisher Seminars; connecting the dots.'

Mac: Risk reversal?

Woman 7: Yeah, if you don't receive dramatic, profitable, innovate result-

getting solutions...

Mac: Oh, okay.

Woman 7: ...By the end of the day, we'll refund your money.

Mac: By the end of the day, okay.

Woman 7: I had by the end of the day, you won't pay, but...

Mac: What's your goal with this?

Woman 7: It's to get people to come to the seminar.

Mac: And then what's your goal beyond that?

Woman 7: To back-end sell them probably a consultation package, and

maybe some tapes from the event and possibly other products.

Mac: Okay. And it's $125? The package?

Woman 7: Mmh-hmm.

Mac: What size business you target?

Woman 7: Self-employed, struggling small business people, who are

probably over-worked and understaffed, and don't have a lot of systems
in place.

Mac: In a way, you should flag that at the beginning. 'Are you self-
employed, struggling with your small business?' I mean, just like you said
it, because you really need to market niche it, because businesses cover
so many sins...

Woman 7: So 'Are you a slave to your business?' is too generic, or...?

Mac: It's fine, but...

Woman 7: Be more specific.

Mac: That's fine, but even before that, you want to set the - you want to
do the identifier; you want to flag down exactly who you're talking to.

Woman 7: Okay.

Mac: so they know you're talking to them, because they know they're not
the same as a $3 million drycleaner.

Woman 7: Right.

Mac: right, so they know they're different, so you've got to - exactly the
phrase you used at the beginning, that's the first thing. A lot of big
promises there. I mean, you could experiment whether you're better off -
first of all, the price point; you may find that $49 is a whole lot better than
$125; maybe just doesn't allow anybody to come in. You may find that
there’s an absolute price point about what people will do, especially if
your goal is essentially back-end.

Woman 7: Well, we've been pretty successful with this price point so far.

Mac: How - selling how?

Woman 7: Selling...
Mac: Newspaper?

Woman 7: Actually, largely by calling, cold calling and calling contacts...

Mac: Oh, well that's good, if you can make that work...

Woman 7: With flyers...

Mac: Genuinely speaking, something has to be at least that price point to

cold-call. But that's - and your numbers are relatively small?

Woman 7: We like to have between 25 to 40 people.

Mac: And you're able to fill a room by calling?

Woman 7: So far.

Mac: that's good, that's good. [inaudible comment from audience

member 12:42] Yeah, that might be - well, he's right about that. Make it
$249 and make it half off, because that's a much more appealing...yeah.
The 50%...

Woman 7: Yeah, we talked about that earlier, we talked about...

Mac: The 50% discount...

Woman 7: Like, bring two friends and you come for free, or something
like that.

Mac: That's good too. Absolutely. That's because you want volume, I
guess, on that.

Woman 7: Yeah.

Mac: Well, those are both excellent things you should integrate.

Woman 7: Okay.

Mac: You might want to do a little more - might want to be - talk a little bit
about experts or whatever, and not just about the benefits about the
experts that they'll meet...

Woman 7: Okay.

Mac: But it sounds pretty solid, and it's a question of getting it in front of
the right people, and whether or not the personal sell would take the price
point up. If you had to do it in a newspaper, I'd be worried if it were over a
hundred. But like, test that.

Woman 7: Yeah, it's a consultative selling...

Mac: Yeah, yeah.

Woman 7: ...Item.

Mac: Well, that's great. It was worth it to wait this long. But I'm sure
there's much to talk about later on, but...

Man 22: Hi. I'm Robert Jones, I’m a pharmaceutical sales representative,
and this...

Mac: Independent? Are you working for a...?

Man 22: No, I work for Johnson & Johnson.

Mac: Uh-huh.

Man 22: This is for a book that I want to sell, about helping people get
jobs in pharmaceutical sales.

Mac: Oh.

Man 22: The headline's probably a small classified ad. 'How to launch
your career in pharmaceutical sales and earn $40,000 to $70,000 a year,
with no resume, no contacts and no science background. High
performance pharmaceutical sales professional shows you how to land
any pharmaceutical sales job on the planet, with a guaranteed success
system. For a free report, call 18888-478-3200, or visit our website at
www.exclusivejobs.com.'

Mac: Hmm. And what's your business goal with this?

Man 22: Initially is to make $1000 a month and then eventually replace
my income...

Mac: Well, okay, is it to - just to sell the information? Or do you have a

seminar proposition underneath it, or do you have a back - do you have an
upsell or a back-end?

Man 22: IT's to get the person to buy - to get the free report, and then
get them to buy my book.

Mac: Okay, but you can't - it's pretty unlikely you're going to sell enough
books with that approach by itself. If you call the book 'A Special Report,'
and you put $150 price - or $100 price on it, or $200 - and add some other
- free consulting or something, then you've got a better proposition.

Man 22: Okay.

Mac: If the - I wouldn’t give away too much on the front end of that,
because there's only a certain amount of secrets, so if you give away too
much on that, they'll say, 'Now I know enough.' I personally think you've
got a seminar sell.

Man 22: Okay.

Mac: Rather than a book sell.

Man 22: How would you work that?

Mac: Pretty much the way you've done it, but I wouldn't - I'd say you can -
you get a free special report, and personal sessions with...you see, rather
than trying to sell books - books are a funny thing. You can make a lot
more money selling special reports, than books. You can put a much
higher price on them. and a special report - books say - taped seminar;
doesn't have that much more cost fulfilment than a book does, but has
ten times the value - a hundred times the value.

Man 22: Okay.

Audience Member: [Unclear 2:33] a report is easier to produce on your

own, whereas a book; you don't put hard covers on them, [unclear 2:38]

Mac: Yeah, people have expectations of book production; he said. And a

special report, you can take down to Staples and get them comb-bound
and it looks just fine and everybody thinks it's exclusive, which it is.
Because a book is a more commoditized thing; it's a very crazy business,
books.

Man 22: Okay, so just to kind of rephrase what you're saying. You're
saying I should - instead of doing a book, do a special report and then
back-end with the seminar, or are you saying...

Mac: Yeah, or maybe offer the whole thing up front, as a seminar - or a

seminar and a consultation.

Man 22: But would I include the price in that?

Mac: Maybe, maybe not. Test it, because I think it's - essentially, you're
selling a business opportunity, which, if it's properly priced and everything
like that, could be 1500 bucks. And you might want to play with - that
wouldn't be - if you really delivered, it would be worth 1500 bucks, so I’m
not saying - you should test all those things up...

Man 22: Right, I understand.

Mac: But it's going to be pretty hard to get the volume you need with just
a book. And a book priced - people just won't pay certain - no matter how
good the book is, if you put it between the comb-binding and call it a
special report, you can get two or three times the money for it. Yeah. It's
specially prepared for. I mean, you can do all kinds of stuff; you've got lots
of flexibility.

Man 22: Okay. Thank you.

Mac: Okay? I'll think about that, but...last, but certainly not least. Hello,
Michelle. Getting up for the next shift? [Inaudible 4:13] Yeah, well. Yeah,
it's the Alamo.

Woman 8: My name is Heidi Bear, and I am the founder of Treasure Island

Press. '"If you want more harmony, money and unlimited good in your life,
employ these prosperity principles now." A quote by Mark Victor Hansen.
Got motivation? Studies show that the first hour of your day is the most
important in determining your attitude, performance and success. Inspire
and motivate yourself, your employees, or your sales team to new
heights, by picking an inspirational harmony card each morning, and
carrying it with you throughout your day. The front of each card contains a
prosperity law in the form of an affirmation, which is explained fully on the
back. The harmony cards look like $100 bills and will keep your mind
focused on success. Each set of 64 is elegantly packaged in a clear vinyl
pouch, with a gold-embossed header card.

The Harmony program is simple, effective and easily integrated into your
routine. These success principles will transform your life when used on a
daily basis. Custom print your company logo on each card, and keep your
products or services in the forefront of your client's minds. The harmony
cards make a great gift, premium or promotion. To order, call 1800-795-
0770, or go online to www.prosperitycards.com. Only $19.95 each,
shipping is free. Call for special pricing, for custom orders or quantity
orders. Order now and get a beautiful wooden prosperity card stand free,
to display you daily success message. If not fully satisfied, return within
30 days for a full refund.'

Mac: Gut reaction? Too much information on the product, because you
give away - it should be something of a surprise, the kit; it strikes me.
There's too much clarity at the front-end. You need to sell the promise and
the tease of the promise of delivery, rather than the physicals of the
product. If you sell the physicals of the product, you go, 'Oh, it's just some
cards,' whereas if you sell the magic, they wait - the magic is a surprise,
they don't know what it is. In that particular case, specificity hurts.
Because - do you understand where I’m getting - coming from? And
because the magic is important - how am I going to get these things? And
you say, 'Special technique for harmonizing your house.' 'How to keep
yourself self-motivated every day.' But don't give away the secret until
they get it, because the price point is - it's not a high price point. In fact, it
probably should be higher. But that would be - my general frame on that.
Which is, build up the magic and you can use the quote; but don't sell the
commodity level of the product. Does that make sense?

Woman 8: Yeah.

Mac: Okay. Comment?

Audience Member: I've just got to say, I think that - I like the bit about
the first hour of the day; studies show that that's the most important. So I
think you can keep that, and say 'We've evolved a special routine,' or...

Mac: I might be more vague actually. I might say, 'There are certain times
of the day way productive than others.' Because once you get - in this
particular thing, once you get too close to it, you go, 'Oh that's what that
is.' And it may not be right, but it's testable, certainly, because first hour
of the day is appealing, but you don't want to give away too much of the
magic. You want to keep - I don’t' know how you balance that off. I mean,
it's a tricky copywriting situation, because you want to suggest the magic.
He may be right; that might be something you can give away...yes?

Audience Member: I was going to add that, because we're in marketing,

we know what 'affirmation' is, but maybe to the lay public, I'm not sure
everybody would know what affirmation is. As opposed to really telling
them, 'We're going to give you the gift of being inspired.'

Mac: Do you have any testimonials?

Woman 8: Yeah.

Mac: My suggest - my sense is that this is a whole testimonial package

and you get a surprise package when you get it. Rather than
commoditized harmony cards. Because one is a life-changer and the other
is a package of stuff. You want to avoid the package of stuff, my personal
sense is. Because it's an emotional product, not a physical product. In
essence the feelings, how you get those and the magical parts, and how
that fits together, it's much more important than the physicality of cards.
Okay? I don't know if anybody else seconds that, but...yes?

Audience Member: [Unclear 4:20] you start with something inexpensive

and then go up.

Mac: Oh yeah.
Audience Member: With this, I would consider not doing that and doing
a tape series based on each of these. Go through each of them explaining,
going more fully into them, examples and testimonials from people...

Mac: And try to sell the whole system. Yeah, I can see that. You could do it
-you could test it several different ways, but that's an excellent
suggestion; to do a tape set, make it a more expensive - because it's a
feelings package. If you had a one-tape intro, that could set up a big tape
set. You could play with the permutations on that. But keep in mind that
you're selling the feelings, not the physicals.

Woman 8: Okay. Thanks.

Mac: Oh sure. Thank you. [Inaudible comment from audience member

5:05] Those are -that's - only you would have to work out the discount
offer, and certainly time sensitivity's almost always good on an offer, if
you can make it believable. [Inaudible comment 5:22] Yeah, that's right;
there might be seasonal sensitivity, or you identify other trigger points
where people want that in their house, or they want it as gift. There are
certainly - I’m sure there are trigger events, trigger moments that would -
would be worthwhile exploring.

Woman 8: Okay, thanks.

Mac: Sure. Take care. Thank you everybody. You're real bitter-enders, I
really appreciate it. (Applause)

Audience Member: Are we going to go through the copy stuff tomorrow?

Mac: Yeah, I'll do it independently or whatever, I'll sit down with you guys
and...[inaudible 6:13]

(Chatter in background then silence to end of audio)

Jay Abraham Mastermind Marketing 13

Rick: We still have a couple of other people but they look like meanders’
out there. So we're going to get started. So you got one more binder
coming tomorrow. And I think it's twice as thick. So it's pretty cool, hey?
Again, thank you for your patience. The next gentleman is worth the wait.
He is President of Sandler Institute of Virginia. Sandler Training Institute of
Virginia; and he is an expert on the art and science of consultative selling.
I don't know much more than that, but based upon working with him for
the last day, he's a really great guy; I think you'll enjoy it. So welcome
Andy Miller.

(Applause)
Andy: Thanks, Rick. Okay, thank you. Good morning. (Audience replies,
'Good morning') How many -I just want to give a round of applause to the
troopers who were here last night at two or two thirty. Where are you
guys? Stand up. (Applause and cheering) There's commitment. Round of
applause for these guys.

Rick: Oh my goodness.

Andy: Okay. Just so I can kind of get a feel for who's here and what's
going on, how many - where's the Europeans? Folks from Europe? Okay,
so I got some of you there. Okay, Central and South America? How many
of you folks? Okay. Any hands up, because I'm not seeing them. Okay, any
from Asia? Pacific Rim area? Okay. Australia? (Some audience members
shout 'Yeah.') Okay, there we go. (Laughter) Alright. Canada? North
America, right? I wasn't thinking US and Canada, I was just North America.

Okay, here's the reasons why I ask. Because there's three things I want to
go through this morning. And we've got 45 minutes, I believe. I've got to
quarter after. I want to show you the mind-set of a buyer. What is it that
people have to go through and how do they buy? That's the first thing.
Second thing I like to do is show you kind of different sales models or
methodologies, and I like you to figure out which one are you using. And
then the third thing I like to do is I like to show the model that I use, and
the mind-set that goes with it.

Because if you do the model but you don't have the right mind-set, it
won't work. And that really applies to everything, and when I first saw
Jay's strategy of pre-eminence, and I saw the model that I was using, I
thought, 'There's a perfect fit here.' So what I'd like to do is I'd like to get
two volunteers; because I'd like to play a game show called 'Password.'
Anybody remember that? (Audience says, 'Oh yeah.') Okay. Or the modern
day version I guess is the '$100,000 Pyramid.' So I need two volunteers;
can I get them?

Okay, so come on up. I don’t know if there are stairs over there?

Rick: Yeah.

Andy: Okay. By the way, I like to reward people who volunteer so here's
20 bucks for each of you. (Volunteers say 'All right.') All right. See, it pays
to volunteer. (Applause and laughter) Okay, what’s your name?

Man 1: Peter.

Andy: Peter. Okay, Peter, kiss me? Whoa.

Man 2: David.
Andy: David. Okay, David. I want you to stand right here, and I want you
to face Peter. Peter, I want you to be here. Now, you can't see the monitor,
right? Well, you can see that, but you can't see the Power Point?

Peter: That's right, yeah.

Andy: Okay, we’re going to do a 30 second password. Now, you know

how this is played right? You're supposed to give Peter hints.

David: Right.

Andy: And you can't tell him anything about the actual word itself, but
you've got to give him words to make him guess it.

David: Okay.

Andy: And...Peter you're going to stay straight forward, because...see the

password?

David: Yeah.

Andy: So I’m going to give you 30 seconds and see if we can get Peter to
guess, okay?

David: Okay. We can use single words?

Andy: You got the handheld?

Rick: You're going to have to pass that back and forth.

Andy: You can only use single words.

David: Damn. (Laughter) Market; products; buyer...

Peter: Economy? (Laughter)

Andy: Help him out, help him out. (Audience shouts out suggestions)

Peter: Shop? Marketing? Shop? Selling?

David: Used car. My employees.

Peter: Business?

David: Consultants.

Peter: Company?

David: People that are here. (Laughter)

Andy: How about - let me help you out. Used car. Polyester. (Laughter)
Snake oil.

Peter: Salesman.

Andy: Ahh, there we go. Okay, round of appolause .Thank you very much.
Okay, thank you guys. Appreciated. Okay, is that off? Now, here's the
reason we played the game. What was the trigger word, Peter?

Peter: Snake oil.

Andy: Snake oil, right? Okay, so we started using the nice words. You
know, consultants and all those things; but then we started coming up
with snake oil, used car - I heard used car over here. It's like, that's got to
be it, right? But that's what you have to deal with when you're out there
selling, when there is no relationship built. Let me say that again. When
there is no relationship built, that's what you have to battle against when
you're out there trying to sell. Why? Because there was some bad apple
before us who did exactly that. Everybody had one bad sales experience?
Okay. So doesn't it make you a little mistrustful, a little gun-shy?

So that is what happens. So, what buyers have done is - what they've
done is they've put in ways to protect themselves. Whether you're selling
to individuals, whether you're selling to corporations, couples; whatever.
They've done something - they've put something in place to protect
themselves until they figure out whether they can trust you or not. And in
the sales world, trust is everything. So, let's go look at the next thing.

What is your approach? What I'd like you to do is; I'd like you to write
down on a piece of paper, at your table; and I'll have you just spend a few
minutes sharing; what is your approach when you're out there selling?
What kind of method do you use? And I'm not looking for a particular
name, but if you have like, 'Here's our five step selling process, or we use
eight steps, or ten or two,' or whatever it is; I'd like you to take just a
minute, write down what your model is and we'll see a little later; is your
model working for you, or is your model working against you?

(Silence from 7:05 - 7:28)

Don't worry about writing it out in sentences; if you can just kind of give it
- each step like a one or two word...Okay, give you 30 more seconds.

(Silence from beginning to 00:09)

Okay, everybody got it? Okay. Let me show you three approaches to
selling. Some of them are consultative, some of them aren't. If you look up
here on the screen at the top left corner. Here's the traditional way of
selling. And in marketing it's called 'canvassing,' where you go out and
you're going to present to everybody that you can, right? This typically
means you've got one product or service; you're going out and just talking
to everybody that you can, because you just got started; you don't have
any money, and you're trying to get ramped up.

It's not a bad way to work; it works, but you're going to go out and present
to everybody; 'Hey this is what I've got. Talk to me. Are you interested?'
And then after you present, you've got these stalls and objections; you try
to close them. Okay, and sometimes they buy and sometimes we get
thrown out, but the whole thing is, if we're doing it right we're going to
beat them into submission and eventually close them and get a deal,
right? Isn't that the way that it works? And if you've never been trained in
selling, that's probably the way you did it. My first sales job; they gave me
some brochures, told me to pick up the phone, make some calls, go see
some people, and that's the way it happened. Because I didn't know a
better way.

Then on the right hand side, you've got the traditional consultative way of
selling. And that is, you're going to qualify. And when you qualify, you're
going to make sure everybody's got their ducks lined up in a row; then
you're going to present once you understand what the need is, right? And
then the last thing is once you've presented, and you've shown them that
you're the best choice, then you're going to close and get an order. Is
everybody with me so far? Pretty straight forward.

The third way is what of I think of as right in sync with Jay's strategy of
pre-eminence, and that is, we're going to qualify, but before we present,
we're going to make sure that they're ready to buy. So we're going to
qualify first; the close is, you're going to build a plan together; and that's a
plan to get to the decision, after they've seen everything that they
wanted. So what I've done is I’ve really flip-flopped the two.

Now, take a second at your table, and I want you to identify which of these
approaches are you using. Because I'm going to set you up for the next
slide. So why don't you just take three minutes and go around the table
and say, 'Of these three models, this is the one that I'm using.' (Audience
chatters 2:29 - end of audio)

go over these three models quickly, and then I'll show you the next slide.
How many of you discovered you're using the traditional approach? Show
of hands. Okay, and again, there's nothing wrong with it; just be aware of
where you're at. The traditional consultative approach; how many of you
found that one? Okay, good. And the third one, the pre-eminent
consultative? Okay.
so just pay attention to where you're at, because here's what I find. When
we get to the next slide, some of these - nah, I'll just show you; forget it. I
won't even go there; I'll just show it to you. Okay, when I look at a
consultative approach, to me it's something we should partner together -
and I'm even reluctant to use that word because I feel like it's over-used
nowadays - but on the left hand side, let me show you the mind-set of a
buyer, and what’s the process that they go through when they don't trust
you. There's no relationship built. By the way, we're here for a marketing
seminar, right? Or a marketing workshop. So when you look at the left
hand side, what kind of things do we do to overcome that lack of trust?
Yeah, you're educating, right? So you've got your 100 companies that
you're going to focus on, you've got your ads that you're writing, and your
success stories and all kinds of things, and you're touching them on a
regular basis; and the purpose of that is to build trust and relationship
before you ever even talk.

And that, to me, from a sales perspective, that's part of what marketing
does. Now, if you have a really great marketing program, and you can do
like, catalogue sales or have people just call you and take the order; great.
You don't even need salespeople. But if it's not quite that simple; and you
have to put a little bit more into it, and your clients still need to talk to
somebody before they're ready to place an order, and they still need to be
advised, consulted, sold; however you want to phrase it; then you may
want to take a closer look at, is what you're doing not working for you.

Before I talk on that, I want to do one more survey. How many of you have
a what I call a 'one call close?' You talk with each other, whether it's on the
phone or face-to-face, and at the end of the meeting they give you the
order? How many of you are one call? Okay, so we have some. How many
of you are two; it takes two meetings or two phone calls? How many of
you are three? Four? Five? More than five? Okay. So part of understanding
what your process should be is, you need to understand, what is the
average? How long does it normally take to close somebody?

So let's look at the left hand side. When there's no trust built - do most
people in most corporations have a policy that they need three bids or
proposals or three price quotes? Does that sound foreign to anybody? So
here's what happens. There's no relationship or trust built between you
and whoever you're talking with. So step number one is; the withhold
information. So you may want to write that down. I know this hand-out - is
it in your workbook? Oh great. So on the left hand side, you may want to
write down, they withhold information. Now, why would they withhold
information? Yeah, there’s no trust, right?
How many of them actually say to you, 'Listen, I’ve already decided to buy
from your competitor.' 'But our company has this policy that says we need
to get three or four quotes. And we'd like you to help us out and just throw
us a quote.' Anybody ever get one of those? Okay. How often sir? Too
often. (Laughter) At least they're honest. But rarely do you get anybody
who calls in and is that straight and honest with you. Fair? So step one is,
they withhold information.

Step two. Step two is they want free consulting. There's no relationship
built, but they want to make sure that the person they are going to give
the order to is being honest with them also. So they're going to want to do
some things. They're going to want to double-check the information that
they've discovered. They may have gotten on the Internet and they've
done research.

Audience Member: Did you say 'fee' or 'free?'

Andy: Free. Free as in no pay. (Laughter) Free. It's kind of like getting in a
taxi and driving to the airport, and at the end - it's like the free demo.
Telling the taxi driver you didn't like it, and just jumping out of the car and
doing a runner. (Laughter) Doesn't work that way - or your doctor or your
lawyer or your CPA. So step two is free consulting. F-R-E-E. Free
consulting. What do they want from you here? Information. Yeah.
Definitely want a price quote. They want brochures, white papers. If you
have technical people or a certain kind of expertise and specialists; they
want to talk to your specialist. Do they want referrals, testimonials? They
might want to talk to some of those folks. They might even want to go see
their operations and see how things are working for them.

So they want all kinds of information. Now, how are they going to use
that? Either against you or against the people that they're going to give
the order to. Why? Because they want to tell the people they do want to
give the order to that they've got a better quote from you. Or that you've
got a better product. It's called - in negotiations, it's called 'cherry-
picking.' Cherry-picking; you know, like picking those little hanging fruit, or
the cherries off the tree? So they take the best of all the things that they
can, and then they go back to the person that they want to give the order
to, and they work them over.

Anybody here have to negotiate? Anybody here have to - I hate this word,
but I’ve got to use it - discount, to get the business? Okay. And that's what
happens when you don't find the value. When you don't have a USP. When
you don't find out what makes you unique, and do they appreciate your
uniqueness or not? And when all things are equal, and there's nothing to
differentiate yourselves, price becomes the only issue; because that is the
only differentiator. So step two is, free consulting.

Anybody had that happen? Show of hands. Is it fun? (Audience says, No.')
No. Step three. Step three is, they delay some more. They delay. They
delay making a decision. Because they're not sure what they want to do
yet. So they may need to come back for some more free consulting, okay?
So they delay, and they tell you things like, 'I haven't talked to my wife
yet,' or 'My husband's on a business trip; we haven't discussed this.' Or
they may say things like, 'The committee hasn't met; this has been put on
the back burner.' What other excuses do you hear? Oh, 'Our budget just
got cut.'

So you hear all kinds of things, and oh by the way, in step two, this was
pretty urgent. Anybody have to stay late at work - I want to say on a
Thursday or Friday night; and overnight a package to somebody. Follow-up
on Monday. And they didn't even come into the office, or they got it and
they're there, but you got them on the phone and they say, 'I didn't have
a chance to read it.' Anybody had that experience? Right, and you're
going, 'Wait a second. Why did I stay late? Why did I miss my kid's soccer
game? To send the people information just to send it to them and find out
that they didn't read it.' Right?

Am I real world here, or am I being too hard on these guys? (Audience

says 'No.') Is this real world? Okay. So that's what happens - step three is;
they delay some more. And they give us all kinds of excuses; and these
excuses may be totally legit. We don't know. Because there's really no
relationship built.

Step four; voicemail jail. Prison. Voicemail jail. What happens here? They
decide to do something, but we don't know what it is. Now, let’s say they
decide to do nothing. Do they call you back and tell you? No. Let's say
they decide to go with a competitor. Do they call you back and tell you?
No. Let's say they decide to do it themselves. Now, some of you are
products they might be able to do themselves, and some of you don't.
Let's pretend they do it themselves. Do they call you back and tell you?
Let's say they decide they want to give the business to you. Do they call
you and tell you? Yeah, sometimes. Or at least they'll take our call and
return it, right?

So voicemail jail. Now, here's the challenge with that side. This is when - if
you look at the top - no trust is built. So the trick is, how do you build
enough trust and credibility, so that we can go through a consultative
process, because if there's not trust and credibility built and we want to
try to do a consultative process, they won't let us do it, will they? So - a
little closer look at this. See the bank down at the bottom right hand
corner? In spite of the prospect system - I guess some of you can see it
and some of you can't but if you look at it in your hand-outs, there's a
bank down at the bottom right hand corner.

And if you look at the left hand side, if you go down to 'Prospects system,'
you'll still end up getting an order and going to the bank. Fair? Everybody
had that happen? It didn't feel good; it didn't feel like it was quite the right
way to do it, but you're going, 'You know what, if I push back at all, I'm
afraid they won't like me, and people buy from people they like, right. So if
I push back they won't like me, and if they don't like me, I won't get the
order.' So we go down their path. So I think of this as a dance.

Anybody here do couples' dancing? Ballroom, salsa and all that? Okay, so
it's still one of the sexist things left in the world, right. (Laughter)
Somebody has to lead, and somebody has to follow. And in the
consultative sales world, the way that it works is, the salesperson has to
lead, but they have to be skilful and graceful enough that the prospect
wants to follow. And if they're not, they're going to get pushed over to the
left hand side. So here's the way the left hand side works.

Anybody here in college or university had a psychology class called 'Rat

Lab?' Anybody had Rat Lab? You had a little rat in a little cage, and - you
had that? And you taught them reinforcement? Both intermittent and...?
Okay. so in Rat Lab, you had this little rat in this cage. And you had this
little lever, and the rat learned you push the little lever and you get a little
pellet. So the rat hits the lever; he gets a pellet, hits the lever, gets a
pellet. So the rat learns, 'Hey, if I’m hungry, hit the lever, get some food.'

And now what happens is now that the rat knows the association, now you
start to change it, Intermittently. So now what happens is we're learning
about intermittent reinforcement, and what that says is, it's a numbers
game. If I hit it five times, the pellet might pop out. Seven, twelve, twenty,
one, three; you don't know because it's totally random, but if I just sit
there and keep pounding on this bar, a pellet's going to pop out.

Now, in the sales world, we say, 'That's a numbers game.' You keep
pounding on the bar, and eventually an order comes out. Now, here's the
challenge on the left hand side. In Vegas, they call that gambling.
(Laughter) Right? Drop in a dollar, pull on the slot machine. Drop in a
dollar, pull on the slot machine. You get the bells and the whistles and the
frequency of the music and all that stuff; and sometimes you get a payoff,
and most of the time you don't. And what happens is, if we're used to
going down the left hand side, we're conditioned - we're a gambling
junkie. That's what happens. We're conditioned on the left hand side, and
when we want to break out of that, the battle we have is not with the
prospect, it's with our own head trash. Because it's the mind-set to break
out (Audio missing) ..that. That system does work, don't get me wrong. I
go down the prospect system, I'll get an order, but here's what happens. If
you find yourself incredibly busy, and not having enough time to cover
everything, then it's not working for you. If you're brand new in your
business, and you just don't have a client-base build up, and you want to
go down that - okay you're going out there, you're getting some practice
and you'll still make some orders.

But be careful on the left hand side. Let me show the right hand side.
Right hand side is a trusted advisor. The first thing you have to do is you
have to build a relationship. Now, that's what these whole three days are
about; how do you - through your marketing efforts, focus and build
relationships? So that the relationship is built before you even sit down
and talk with somebody, whether it's on the phone or face-to-face. So
you've got to build a relationship. At least, from what I've seen,
relationship is everything. Without relationship, the rest of the stuff that
we try to do doesn’t' work.

Step two; we've got to set an agenda for our meeting, whether it's a short
five minute phone conversation, or whether it's an hour long or hour and a
half long face-to-face meeting. You've got to set an agenda. And there's
two agendas that have to happen here. There's their agenda, and there's
your agenda. Right? Have you ever showed up at a meeting, or gone on
the phone, and your time was cut short? Anybody had that happen? Okay.
Who's agenda gets thrown out the window? Ours, right? And so what
happens is we walk away from the meeting frustrated because they
wanted information from us, but we weren't able to find out how we could
help them. So, step two is; we've got to set an agenda.

Oh, by the way, let me back up a second. How do you know which side
you're on when you're out there talking to somebody? If you're on the
prospects, no-trusted side, or if you're on the trusted advisor side; how do
you know? What's that? Based upon the rapport, right? Because what
happens is, if they have to talk to three or four other folks, somebody
they're going to give the order to, and somebody they're not going to give
the order to. Now, my grandfather was a farmer out in the mid-West. And
he had this little saying that says, 'You don't name your pigs.' Anybody
know why? (Laughter)

Yeah, you're going to take them to slaughter, right? They're just like,
'Good-bye Wilbur. Good-bye Curly. Good-bye Oinky. Good-bye -' and it's
like, no, no; you can't watch your pets go to slaughter. So what happens
is, when you try to build a relationship - you ever had anybody insist on
information, but they kept you at arms' length? Guess what? You're the
one not getting the order. You're the one with the gunshots in the
background heading down to shooting, and you don'[t know it yet.
(Laughter) Sorry about that.

For the visuals in the room, they're like, 'No.' Okay. So that's what
happens, so pay close attention to, how do you treat each other when you
start off? I don't necessarily need them to buy from me. All I want is an
open and honest conversation that allows me to find out: what are they
trying to accomplish, and am I a good fit for them? That's all I want to do;
I want to have that kind of conversation, because if I have that kind of
conversation, I can find out whether I can serve them properly or not. And
if I can't serve them properly, they shouldn't buy from me, and I shouldn't
sell to them either, quite frankly.

Have you ever walked into a doctor's office and you said to the doctor, or
the doctor said, 'Thanks for coming in. Where does it hurt?' And you go,
'I'm not going to tell you.' 'How long has this been going on?' 'Well, a little
bit, but you tell me; you're the expert.' Right? What's the doctor going to
do for you? Let's pretend you've got spinal meningitis and because you're
not telling him anything he says, 'Oh, you've got a little fever, and all that.
I'm going to write you a prescription for the flu.' What would happen? You
are going to die; you're absolutely going to die. And whose fault is it?
Yours. Or the doctor's, because they let you do it. So step one is bonding,
step two is; I've got to set an agenda.

And it's got to be an agenda for both of us, and by the way, right at this
point, if they're not willing to play with me, my motto is kind of 'Let's play
fair, let's not play at all.' I want to either work together or let's not work
together. But if we can't have an open, honest conversation, I don't even
want to get started.

Step three. I've got to find out if they have a compelling reason to make a
change from the way they're doing it now. Don't get confused between
and reason and a compelling reason. I'll give you a story on this. I had a
neighbour, years ago, who was engaged and ready to get married. And he
and his wife were living together, and her car was kind of getting old and
breaking down on a regular basis, and she'd always complain about it, but
my neighbour wouldn't do anything. He's like, 'Ah, we'll just fix it.' I love
him, but I've got to tell you, he's a little on the cheap side. So Alicia's
always complaining, 'Hey, the car's breaking down,' and my neighbour’s
going, 'No, no, no, it's okay, we'll just repair it and it'll be fine.'
So did they have a compelling reason to buy a new car? Not yet. I mean, if
it was compelling, he would have bought a new car. She had a compelling
reason; he didn't. Right? So we got this little tug of war that goes on, and
so what happens is, a lot of times when we're out on sales calls, we can't
differentiate between a compelling reason and a reason. Everybody with
me on that? So you have to pay close attention. Is it compelling? I want to
make sure it's compelling.

So anyhow, so it's wedding day. She's been complaining, 'I want a new
car.' With good reason; it's breaking down on a regular basis. He's cheap,
going , 'No, no no, let's defer the costs; we'll get a car later.' Wedding day.
She's driving up to her mother's house. Car breaks down. She jumps out of
the car - the way she tells the story, she goes, 'I didn’t have much time.'
She jumps out of the car, has the wedding dress in her hands, and some
lady sees her, pulls to the side of the road, picks her up and drives her 45
minutes out of her way to her mother's house. Nice lady, right? Here's a
Chicken Soup story. (Laughter)

Alicia gets prepared, comes to the wedding, gets married - you could
never tell because she was smiling; she wasn't steamy. But guess what
was in the driveway the next day before they left for their honeymoon?
(Laughter) A brand new car. Yes, he bought her a car. Did he have a
compelling reason? (Laughter and 'Yes.') Yes he did, okay? So don't be
confused between a reason and a compelling reason. So step three is, I'm
looking for a compelling reason.

Step four. I want to talk a little bit to find out from them, what do they
think a solution looks like? How do they think they want to fix this?
Because I'm trying to find out how they're thinking. And I want to make
sure that we're all on the same page. Now, don't get confused. This is not
a full blown proposal, depending on the complexity of your sale. You may
only have one solution for them, and if they're happy with that, then we
can explore it further, but if, philosophically, they aren't in sync with what
you have to offer, and how you can fix it for them, then it doesn't make
sense to move forward. Because you can't make people buy something
that they don't really need or want. So step four is, I've got to make sure
from a solutions point of view, however we’re going to cure this; that
we're going to match.

Step five. Investment. I want to know what they're willing to invest to take
care of this problem. This is kind of like when you go to the doctor's office;
say you need some - you've got some back pain. Now, we're going to talk
about what are our options; that's the solution part. And when you go to
the doctor and you have back pain, what kind of options do they give you?
And there are some, right, depending - I mean, chiropractic adjustment.
You could do acupuncture; that's another. You could get surgery done. You
could do physical therapy. You could take medication. I mean, there's five
right there. And now the question is, as the patient, what are you willing
to invest in one of the ways you think is going to serve you the best? Now,
if you're going to get surgery, how long are you going to take to recover?
Right, it's going to take a while. If you want physical therapy, you've got to
show up, you've got to book your appointments; you've got to show up,
and you've got to do your part at home, because there's exercises and
stretches you have to do in between the appointments with the physical
therapist.

Or for some of us, we just don't want to go through that. It doesn't hurt
that bad, so we'd rather just take muscle relaxers and pain killers. So in
the investment stage, what we're really looking at is how bad does this
hurt, and what are you willing to invest to make your results successful?
Everybody with me on that? What are you willing to invest? This isn't how
much I'm willing to invest. What is your client willing to invest to make this
successful? Oh, let me back up a second.

Back up to number three, on the compelling part. Anybody here ever gone
to the emergency room before? Show of hands? Okay. How many of you,
before you went to the emergency room, did a spread sheet? (Laughter)
Anybody do that? You get out the Yellow Pages, Golden Pages or whatever,
whatever country you're from; and you get them out and you call up all
the hospitals and you try to find out...what? What are your hours of
operations, how many doctors do you have, are they board certified, what
are your rates, again depending on your insurance plan? Do we ask those
kind of questions? No. What do you do when it's time to go to the
emergency room? You go. And you don't even worry - you worry about
that stuff later. And that's what happens when people have a compelling
reason; they don't start asking all these questions.

Now, there's some people don't have a compelling reason. And they're
somewhere in between. So with those folks, you want to make sure
they're receptive enough that they're willing to explore with you. Are they
willing to explore with me? Are they receptive? And if they're not
receptive, guess what? You're behind the 8-ball; you're going down that
shoot again. Okay, does that make sense?

Where do we stop off at? We stopped off at investment, right? So the next
one is decision. I'm looking for, how are they going to make a decision? If
I'm selling to an individual, how is he or she going to make this decision.
Those of you who are on a one time call, close kind of thing; you're still
going to have this conversation, but this whole thing is going to go much
faster. And those of you who are talking to five, ten, 15, 20 people; you
have a very complex sell; this thing's going to get drawn out. So it's going
to take a lot of meetings to make this happen, but I still want to know.
How are they going to make a decision. What would make them
comfortable.

One of the beauties of Jay's risk reversal is that takes the risk off of them
and helps them get more comfortable to try this. But I still want to know
how they're going to figure this out. Especially if they're out there talking
to all kinds of people. So that's decision.

Last couple of steps. Step seven. We're going to build a plan together. If
it's more than a one call close, and we're going to have meet, two, three,
five, whatever; we're going to build a plan. And that plan is, how are we
going to go through this thing together to get you comfortable to say,
'This is the way I want to go,' or to get you educated that says, 'This is the
way I want to go.' Or, for you to have all the data that you need, and
realize that I'm not the guy. We're not the company .This isn't the product.
Why would I want to do that? Trust. Absolutely. Because what I want to do
- in traditional selling, when we played the password game up here. When
we talked about used cars, snake oil, sleazy; all that kind of stuff. People
don't want the pressure. So my job is to set this up so they feel no
pressure. Because I don't want hem feeling pressure. I want an open and
honest conversation. Not a pressure-manipulative call. So I want - the
purpose of building a plan is, so that we can have an open and honest
conversation, and when we get to the end, they can give me a yes, or
they can give me a no. And I'm perfectly fine with that; and they feel no
pressure to be dishonest with me. Does everybody see what I'm doing
there?

Years ago, I had an insurance agent come to my house. And he came with
one of these table-top flip charts. Had all the leading questions on it. Good
questions in terms of getting information out of me, but they were all
totally leading, manipulative type questions. And I’m sitting there and I'm
watching him. He sets his flip chart down; 'Hey Mr. Miller, how are you
today? Thanks for inviting me over to your house.' And he's got this flip
chart, and he's going through these leading questions, and I'm just sitting
there watching him, going, 'This guy's setting me up for the close.'

And so what started happening for the next half hour is, I didn't hear him
any of the questions he asked me, because I knew that he was just setting
me up to hammer me. It's like Whack-a-Mole, right? Has anyone seen the
game; the mole pops up and down comes the hammer? (Laughter) I'm
sitting there going, 'This is Whack-a-Mole; the guy's going to hammer me
down in here about 30 minutes.' So that didn't feel right to me. And so I
found myself - my defence wall starts going up. I start distancing myself
from the guy. I start withholding, not reacting with him at all. Now, was
that serving either of us? Not at all; it was a total waste of time. It was a
disservice to me and a disservice to him.

Now, let's pretend this was his company’s policy. He had to do this cheesy,
leading question flip-chart. Let's say that's the way it was. All he had to do
was tell me up front.

All he had to do was say, 'Andy, I'm going to come meet with you, but I
want to warn you about something first. Company has this policy that I've
got to use this flip-chart. And it has an advantage and a disadvantage.
The advantage is there's good questions on there, so I've got to get
information that helps me figure out what's the right thing that I can do
for you. The disadvantage is, they're leading questions. And sometimes
they're - the thing is to set you up, so at the end you tell me yes. And I
want to let you know, if you're not comfortable at the end, you don't have
to tell me yes. A no is fine. What I'm more interested in is getting the
information and helping you. And at the end of the meeting I'm going to
ask you to fill out an application and give me cheque; if you want to move
forward. And if you don't want to move forward, it's perfectly fine to tell
me you don't want to move forward. What I don't want you to do is feel
pressure, and you have to withhold information and that; not have an
honest conversation.'

That's all he would have had to have done. And guess what would have
happened? He would have come in, gone through the same exact thing,
using the same exact information and questions, and it would have been a
totally different meeting. But he didn't set my expectations. He didn’t let
me know that at the end, I could make my own decision versus him taking
the hammer and whacking me over the head. So that's why we co-build
the plan, right? Everybody's had that happen?

That's why we build a plan together. They don't dictate to me how we're
going to do it, and I don't dictate to them how we're going to do it. We
build the plan together. And then the last step is proof. I'm going to give
them whatever they want to see. No more, no less. Has anybody ever
been out on a meeting and you fell in love with your product, and there
are certain things they were asking for but you told them a whole lot
more? Anybody seen that happen? And you talked them out of the sale?
(Laughter) Or I don't know if any of you are doing like Power Point
presentations, and somebody only needs to see three slides and you go
and you show them 20 slides?

But in the proof step, you're just showing them everything that they said
they wanted to see, so if you look at this; steps one through six is really
just qualification. Steps one through six is just qualification, and what
you're doing is extrapolating from them what they say is important to
them. And you're just trying to make sure there's a match. And if there's a
match, you move forward. And if you can’t give them what they want, or
what they're asking for is not in their best interests; and this is why I like
the strategy of pre-eminence so well - is everybody familiar with the
strategy of pre-eminence?

Because it says in there- is it in their workbooks, do you know? Tactical

force tomorrow? Okay, so it's in tactical force tomorrow, and Jay will be
covering it. Great. Because in there, there’s thing - if we had time I'd pop
it up on the screen, but I think the print's too small - there's in there that
says, 'You don't sell something to somebody if it doesn't serve them well.
Even if they want it and they want to give you the money, you still don't
do it. Why? Yeah. And so what I find is, when I look at this process, what I
find is if there’s a mind-set that goes with it - well, actually I'll show you
this.

To be able to be a true consultant, or take a consultative approach, you've

got to have three things. You've got to have the beliefs and mind-set
that's - to support that. So for example, let's say you're desperate to make
a sale. And somebody is willing to give you the money and you're cash
flow's a little tight. And you know this isn't in their best interests, but you
take it anyhow, right? Anybody had that happen? I'm sure you've not done
it but you've probably seen some other sales people who have in the past.
(Laughter)

And so now what happens is you've got a client, you've took their money,
you didn't do what was in their best interests, and guess what? They find
out anyhow, don't they? And then it becomes what I call - please excuse
my language - the client from hell. And it's our fault, because we did them
a disservice. So you've got to have the right beliefs and the right mind-
set, and that to me is critical. Second thing is you've got to have plans
and activities. This is what we're talking about - we've been talking about
strategy, we've been talking about ideal client profiles, we've been talking
about one hundred clients to focus on; and you're talking about - this
really is your strategic objectives and the marketing efforts on the
company. And the sales people part is to follow up; prospect and follow
up, right?
And then the last part is the skills and the knowledge. And this is a - do
you have a sales process to take them through, whichever the three
model that you're using. And do you have the tactical skills to be able to
pull it off? Because even if you have the right process down, if you don’t'
have the questioning techniques developed properly, you can totally
butcher the process. I can think of a guy that I taught in my methodology
who tactically was phenomenonal. Probably the best I've ever seen, but
there's one problem. His intention. And I want you to write this down
because it’s; not in the workbook. Your intention is more important than
your technique. It's what's in your heart.

Your intention is more important than your technique. Because if you have
the right intention, people pick up on it, and there's room for forgiveness.
But if you just focus on the technique and your intention is wrong, and
your technique is perfect; they still know that you're trying to manipulate
them. So to me, the skills and the knowledge is really - do you have a
sales process, and do you have the proper technique to take them
through; but what's in your heart and your mind-set for you to be able to
pull it off gracefully, or not to pull it off.

Any questions on that? Okay. So, why don't I just open it up for a couple
minutes of questions, because I think I’ve got like two minutes, and if
anybody has any questions, I'll take them. Any questions?

Rick: Go to the mike, please?

Andy: You want to go to the mike?

Rick: We'll take as many as we can; Jay's on his way down.

Man 1: Joe Myer, and my question is; the whole 'how' side of that right
hand column, and I mean, I agree with a lot of the -intention; things of
that nature, but sometimes when you get out there in the heat of battle,
so to speak, you get wrapped up in the tactical side of it, so if you could
touch on that, and some of the things to do.

Andy: That would take a two day seminar. I'm not trying to avoid the
question, it’s just the 'how' part - part of it is a function of bravery and
mind set. And bravery, at least bravery I find is - your amount of bravery
is equivalent to how full your pipeline is. True? Okay. Real world. So if your
pipeline is full, then it's easier to get into the technique side; and like I
said, we'd need two days to go over technique, so I wish I could answer
that. I don't have the time to do it. If you want to grab me offline - if you
give me one or two situations, I'd be happy to talk to you about that.
Man 2: Hi, Bill Shaw. A lot of the time when we are trying to find out what
they want and we find it out, but sometimes it's different decision-makers,
and they may want something else, or - we can become great friends with
the person we're selling to, but they still have to get a confirmation from
someone else, where it's strictly price, when they look at the ...

Andy: Right. Right, and that step - when we're going over the different
steps to go through in that decision step, I have to talk to everybody who
is going to touch and even approve this even as a formality. Because if
somebody has the right to - or you're going to run it up the chain of
command, and somebody has to just bless it as a formality, they really
have the right to veto. And if they've got the right to veto, at least - I don't
know what your experience is, but my experience is, I have somebody
here and here and here; they're usually not all on the same page. And so
if I'm over here, I could spend a lot of time and energy trying to help them
figure it out, and then they go over here, and those guys go, 'No, that not
quite exactly it,' and then tweak it; and then I’ve got to take it up to this
person, and this person goes, 'No, that's not what I had in mind,' and then
they have to tweak it. So you and I and whoever we work with over here;
we all look bad and incompetent.

And what I don't want to do is spend time and energy here, unless I know
we've got everybody on the same page. So even if it's just a quick 'let's do
a 15 minute group conference call, reality check, get on the same page,'
I'm happy to work with this person and get it done then, but I've got to
make sure we all agree.

Man 2: And do that at the first stage, and not at the end when we're
giving the price and close?

Andy: Yep. Yep. Does that help?

Man 2: Okay. Yes.

Woman 1: Hi, Barbara Hanson, General Electric Financial. We do

something like this too, and I just wondered, the second step; to me, it
seemed - set the agenda for the meeting - it just seemed a little bit soon,
although I know we do something like that now. If this is the right plan for
you, we'll be moving ahead with an application, etc., etc. Is that
appropriate that’s exactly what you're talking about, or you're saying,
'Gee, you'd buy this if...'

Andy: My agenda - when I talk with somebody on the phone, I ask them,
'What would you like to get out of the phone call, or when we get
together, what would you like to get out of the meeting?' And then they
tell me. And then I say, 'Okay, can I share with you what I'd like to get out
of the meeting. Here's the things I'd like to cover.' And then I'd discuss;
'Okay, now that I know what you want to cover and what I want to cover,
so that we're both prepared, let’s talk about how much time we're going
to need to cover that. Are you going to need an hour, half hour?' But
whatever you get, honestly, realistically need; if you need an hour and a
half, tell them we're going to need an hour and a half to cover that. Then
at the end of the meeting, if it makes sense, when we want to go forward,
we can do that, or if it doesn't make sense for either one of us, we both
have the right to say, 'Thank you very much for your time, but we don't
think we have a fit.'

Woman 1: Okay.

Andy: does that help you?

Woman 1: A little bit. I just wonder that they're not going to say, 'Well, I
need to think this over.' Like, way at the beginning.

Andy: Then if they tell you they need to think it over, what it means is
you didn't do a very good job giving them what they needed to know, and
they just weren’t comfortable telling you the truth.

Woman 1: Yeah. It just seems so early.

Andy: Most of the time, they're trying to make some kind of decision. Do
we go to the next step or not? I’m not asking them to give me an order,
I’m just saying do we go to the next step? And if they want to think it over,
they're being kind. They don't want to hurt your feelings.

Woman 1: Well, what I have is very complicated material decision, and

they sort of - a lot of people just say, 'Well, I’m shopping,' and then all of a
sudden, they become committed to shopping before you've had a chance
to build much rapport.

Andy: Do you hear the squealing in the background? (Laughter)

Woman 1: I'm one of the top agents; it's not a problem.

Andy: Okay.

Woman 1: But it just - I don't know; I just seemed a little quick, and I
know I do something like that. We use the Ron Willingham inequity selling
model.

Andy: Okay, I'm not familiar with it.

Woman 1: Oh okay. It's a good model.

Andy: Okay, but what's seems a little quick for you?

Woman 1: I don't know, just the way you said it. It said, set the agenda to
see if they'll buy or not. It just seems like really quick.

Andy: That's not what I said.

Woman 1: Oh, okay, I'm sorry, I misunderstood then.

Andy: I wondered what you were hearing. I'm not asking them to set an
agenda to make a buying decision at the end of the meeting. I'm just
asking them to 'Let's have a productive meeting.'

Woman 1: Excellent.

Andy: Who doesn’t want to have a productive meeting? Don't you hate it
when sales people show up and they just waste your time? I want to have
a productive meeting, and I want to be prepared for them, and I want
them to be prepared for me.

Woman 1: Excellent.

Andy: But at the end of that meeting, if we decide to go forward,

whatever that looks like - you're in real estate?

Woman 1: No, long term care insurance.

Andy: Long term care insurance. So there's probably a process that they
want to go through for them to get comfortable. So at the end of that
meeting, if they're comfortable with you, let's talk about what are the
steps of the processes they want to go through. And what I'm looking for
is, will they be honest with me, and spell it all out? And if part of it is, we
want to go talk to four other people, I want them to tell me, 'We want to
go talk to four other people.' And then I can work with them on, 'Well,
here's the questions you should be asking.' Are you with me?

Woman 1: Excellent. Oh, yeah. Okay.

Andy: Okay, alright. And I can - nobody else come in line, because
otherwise I'm going to go way over my time, so I'll take the three here and
the three here and then I'm going to be done.

Man 3: Good morning, Mark Anthony, Training Force Success. The

question I have is when you spoke about pre-framing what the person was
going to see, with the flip chart example; it sounded like you were
suggesting to do that on the telephone when you're actually setting the
appointment, not doing that when you're sitting down in front of the
person; and that just...
Andy: That’s right.

Man 3: You don't find that weakens the sales situation too much? What's
your thoughts about doing it when you sit down with them rather than
way in advance?

Andy: You can do it that way. The point of it is to take the pressure off the
client. So if you think it's going to serve them and you better to do it over
the phone, do it over the phone. If you think it's going to be better face-to-
face, do it face-to-face. What you don't want to do is not address it, so
that the client's feeling pressure at the end. You want the pressure off the
client.

Man 3: Okay, great.

Andy: But if you feel like doing it face-to-face would be better because
you could build better relationship, that's fine.

Man 3: Exactly.

Andy: So you've got to use your best judgement on that. Okay. Over here.

Woman 2: Hi, yes. I'm...

Andy: I'm only taking three of these microphones, so I'm just going to
stop...

Rick: Last question.

Woman 2: I am in a one-call close type business, and when I'm on a roll,

doing exactly what you say to do; and I can be there. I close eight out of
nine appointments. My problem is staying in that mind-set week after
week. I can stay in it for maybe two weeks in a row, and somehow I lose it.
I guess maybe it's personal stress, and my other part's my life or
something. But if you could just address staying - how do we stay in that
mind-set?

Andy: Get a coach. Get a coach who will help keep you accountable and
keep pressure on you. That's the best thing I found for me, it’s the only
way it works. I need somebody who is basically holding my feet to the fire.

Woman 2: But I mean a consultative mind set; that's what I mean.

Staying in that pure mind set versus slipping into some of the other - I find
that's the most effective way to sell.

Andy: Okay, I agree with you. I don't have any silver bullet or magic dust
kind of thing. I wish I did, but I can tell you what I do. I’ve got tools that I
use, like checklists, debrief forms that I go back over, even now for myself,
keeps me honest. I've got a coach that I use, and then for me I like to do
meditation because I like to come from a neutral mind set. I feel like -
personally I feel like everybody needs some kind of spiritual practice; I
don't care what it is, but I think you need something that says, there's
other things in life more important than me. Yeah?

Rick: Tithe 10% to the Church of Jay.

Andy: Oh, they could, 10% to the Church of Jay. (Laughter) They could do
that.

Woman 2: No, but I mean the regular meditation is great; because I do

do meditation but I don't do it regular, and I think you have to keep
coming back to the centre; come to your centre.

Andy: You've got to grounded. If you want to be consultative, you've got

to be grounded and clear, not needy and desperate. Not saying you that
you are, but just from my own perspective, for me.

Woman 2: Thank you.

Andy: Okay, alright, can I have...

Man 4: Chris Wray, ICC Business Products. Virtually everybody uses my

products; awful lot of voicemail. You got any thoughts on how in the world
do you build a relationship with somebody that never - you never get past
the voicemail.

Andy: Yeah, I'll give you a quick in on voicemail. I think voicemail is like
radio spots. You're going to do a 20 second radio spot. See most people
when they call and they get voicemail, they just kind of blabber on and
usually it's all in the wrong order with the wrong information. 'Hey this is
Andy Miller with STI Virginia. I do sales training, here's my phone number.'
And do you remember the game show, Name that Tune? And all of us play
this with voicemail. You listen to your voicemail and you're going through
and you're trying to identify who it is and why they're calling, and if you
need to delete it, save it, listen to it, get to it later. Fair?

So when you call somebody and you're going to leave them a voicemail, I
would encourage you to think of a series of radio spots that you would
leave; and you're the DJ. And when you're going to leave a message,
forget about who you are and your company and your phone number.
Within three or four seconds, you've got to say something that's going to
grab their attention. So the message needs to be focused on them, not on
you. And if you focus on them, and you pay attention to what’s important
to them, what would get their attention. So if you called and said, 'Hey,
this is Andy Miller, you don't know me. The reason I'm calling is...boom.
And I'm trying to figure out if you and I should talk about that. Here's my
number.' And either say your number twice, or say it slowly; because most
people, they go, '7039227160.'

And somebody actually left me a message; this is about two months ago,
and they got my attention, and I wanted to talk to them, and they said it
so fast; and it was on a cell phone, and I switched cells and bleeped out
one of the numbers; and I played it back six times, trying to figure it out
and I couldn't. My caller ID didn't show it either. And I'm just going, 'I hope
they call me back.' And guess what? They never did. Somebody lost an
opportunity.

Man 4: Okay, thank you.

Jay: You guys can see that we can go for hours and days. It tried to
coordinate the finest people who I thought bought the finest compliments
to what I was all about so that you could take [unclear 8:31] at my word.
Show you how to build it, integrate it, really make it complete. I wish we
had hours and hours, but I suspect you really made an impact. (Applause)
[Unclear 8:44 -8:54]...talk about what I call the phenomena of the group
that we had a joint relationship with, because I think if you did, great. But I
think people have got to realize that there's two parts to the puzzle, and
having the greatest consultative sales ability is great, but if you have no
leads to present to, it's a problem. And you probably just addressed
something.

I believe that voicemail isn’t the worst thing in the world; it's the greatest
thing in the world because you're having a progressive dialogue with
somebody, and nobody else gets that, and you probably just said that; but
I'd like you to mention the phenomenon. I was so fascinated and
disappointed with that joint client, because they didn't get that one
connection, and you might make that real quickly, and then I want to ask
you if you left right now, if they never looked or listened to the tape, if
they never, ever again had any contact with you; what is the one most
important point you've made in the session you just did that you just -
passionately and critically, just vitally need them to get, and what's the
one thing they’ve got to do with that realization?

Andy: The voicemail piece first, okay? You asked me two questions. Some
of you may remember the Burma Shave signs along the road...I'm starting
to show myself a little bit here. And it was a series of signs, and each sign
had a message on it, so as you're driving down the road, you're getting
one message and another message. And I think of it as repetitive
commercials that build upon each other. So for me, the voicemail, if you
really pay attention to it, you can come up with a series of messages that
you want to leave, leave in a proper order, and you do - I don't know if you
do one a day, once a week, once every three days; but if you come up
with a series of messages to leave them that's important to them, you're
going to get their attention. [inaudible comment form audience member
10:45] Yeah...

Jay: I would disagree. Can I make a...? I have philosophy and it permeates
everything that do; that it's only a matter of time before everybody I want
to do business with will. It's like there are five or ten or 20 of you in this
room, that are large enough, and it's only a matter of time before we'll
have a discussion before you leave about possible joint venture. I haven’t
given it enough value yet to be deserving of that; it's only a matter of
time before anybody I want to target with a letter, a phone call, a vision; is
going to become a partner, a client.

And I don’t wait for money to change hands before I start really conveying
and contributing value, and if you start thinking about not, 'Oh God, I’m
going to get voicemail jail, that's horrible;' if you start thinking, 'Wow,
what -' it's almost like the analogy Brian said about the pony and the pony
crap. Basically if you say, 'Wow, all these other people are intimidated,
they're frustrated, they're leaving some stupid - [unclear 11:43], I'm going
to have a sequential - I'm going to take everything I've learned; I'm going
to leave messages with headlines, and powerful payoffs and benefits and
provocative reasons why, and I'm going to have this progressive,
assumptive, conversation, because I know they listen to it. And I'm going
to make sure the first 15 or 30 seconds that I leave are so compelling and
promise them something so interesting and so valuable and so
provocative or so self- serving -' don't you agree?

Andy: Agree.

Jay: Let's do it. And ask yourself - you don't - I have go more people call
me back after the fourth or fifth - Where's David - Is David Spizack in the
room? Is David Spizack in the room? Are you here? He was supposed to
be. Did he come? Hands up. No? He's somewhere here. He's the guy that I
pursued probably incessantly - oh, twenty times by phone calls, emails - it
works. It works, it works. But it only works if you believe it attitudinally,
you believe it philosophically, you believe it transactionally. And it's not
about a static moment - I'm not trying to steal your thunder...

Andy: No, you're not.

Jay: But - you disagree?

Andy: No, not at all.

Jay: It’s not about a static moment, it's like it's nothing. It's about process.
Where's the psychiatrist that I thought was a pathologist? (Laughter)
Where are you? Did I offend you last - no? You're from a long time ago.
Well. I spend $500,000 on therapy. I'm going to save you a half a million
dollars, okay. Lay down. Save you half a million bucks. And I'm going to
translate it to business. What I learned is that everybody's fixated with the
end result. They want to have the biggest house, most cars, or the fastest
growing company, or the most beautiful wife, or the most whatever, as a
status - achievement. When they think they get it, they think the heavens
are going to open up and the birds are going to sing and nirvana will
prevail - not the rock group, but a real nirvana. (Laughter) And when they
hit that, it's like a [unclear] victory; they don't get anything.

The real essence of life and the real essence of business is the process.
This conversation that you and I are not quite having verbally is as good
as it gets, and if you realize it's a matter of time, but everybody's going to
be - everyone that you want to do business with, you actually will if that's
your mind-set. And it's a process. You want to make a comment?

Andy: I think you're exactly right, and it's funny on voicemail; if I called
you up one day and I said, 'Hey, I'm Andy Miller, I sell cars, would you give
me a call back?' you're probably not real inspired to do that, unless you
need a car.

Jay: However...

Andy: However, if I called you up and I said, 'I'm Andy Miller with the
Virginia State Lottery, you won a million dollars; please call me to collect
it,' you'd probably be pretty inspired to call me back. Now, that's just on a
one time voicemail. Now, with process...go ahead.

Jay: But or even if he called and said, 'I'm Andy Miller with ABC Mercedes
Dealership, and we have a lease return here that's got 2,000 miles on it,
but it’s $15,000 off, and there's a lease arrangement where you could get
it for a little more than a Lexus; and I was told that if an opportunity like
this come around, we should at least present it to you,' that might be sort
of interesting.

Andy: Absolutely. Because now you're not schlepping a car; you're saying,
'Hey, got this thing here, I don't know if you're interested in it or not. If
you are, here's some details on it, and call me back. I'd love to help you, if
you're interested.' But that's a no pressure message.

Jay: We're going to get in tomorrow, and I'd like you to be here, if - with
Carl. We’re going to get into a bit of sequential marketing stuff, and
unfortunately - apologies for chewing gum; I wasn't planning on talking so
I took it out, but what the heck. If I die, somebody give me the Heimlich -
if I start choking give me the Heimlich. But one of the things we're going
to do today and tomorrow is do a lot of interaction where you give us a
scenario, and we don't just talk theoretically, and you'll help us. We'll just
take it and we'll bash the issue until we break it down into actual scenario.
And I'll try tomorrow - you could help with Donald Moin too - I mean, it's a
little bit - I've got a lot of - not counter perspectives, but interesting things
where you'll have to see real world application in somebody's actual
business scenario, and it'll become evident. But the point for today, in my
opinion - I wish you could talk for hours; you'll be around if somebody
wants to seek you out. I adore him, I trust him implicitly, and by the way,
I've got an opportunity for you to make about $10 million, so talk to me
before you leave - serious. (Laughter)

Andy: Okay. I'm game.

Jay: Okay, but - no seriously, I do. But the ley you should all get from this,
in your businesses, whether you're one man or woman or whether you are
a company of 10,000 - please stop talking, whoever’s in the back. Please
stop talking. If it's my staff, please stop talking. Or shut the door, please.
Thank you. If you are an individual, or you are a company of 1,000,
everybody in your company that has impact to the buyer should - must be
trained in consultative advisory selling. This is not a pitch for Andy; I don't
get a dime. I explicitly forbade any speaker from doing anything, but if
you can afford somebody like him, I would in a heartbeat - I sent him to
one of my clients, and other than the fact the client didn't get that having
the greatest consultative saleability is wonderful, but you need leads to
sell to first; it's great. You can't afford him, buy a book. Buy Brian Tracy's
stuff, get a - not a second-rate, but a localized consultative sales trainer,
because you get yourself, you get your staff, you get your receptionist,
you get your accounts receivable, you get your tech support, you get your
customer-client services. All should be trained because it is the ultimate
instant, enduring leverage, and when you're trained, pay extra to record
it, to transcribe it, make it mandatory.

How many people here are angel investors, or are venture-capitalists, or

unintentionally put money in marginal businesses that you end up either
losing or having to nurse - okay, hands up. I would never, ever again, put
a dime in a business unless $20,000 or $30,000 of the money you put in
was used to train - no [unclear 2:55] Andy, but Andy's great - to get
consultative sales training from the get-go, because it's going to enhance
by two or three times their upside. It's going to reduce your downsides,
it's going to make their success - don't you agree?
Andy: Agreed.

Jay: I would never - if you're trying to bail one out before they waste - if
they have a sales force, before they waste $500,000 - $50,000 on ads -
make them get consultatively trained in selling. It will immediately, it will
enduringly - I have nothing to gain, I don't sell it. It will profoundly and
dramatically and wondrously transform your ability. Those of you who are
consultants, who are decorators, who are any kind of a service business,
get yourself trained. The reason I can get $40,000 a day; the reason that I
can get you to let me sit here and chew gum and tell you about [unclear
3:52] about my therapy, is because I have your respect. You trust me to
look out for your best interests, which I am doing. You trust me to consult
and advise you in what you should be doing, which I am very, very
responsibly and respectfully trying to do and husband that responsibly for
you.

And hopefully i have enough of your trust that if I told you to march, you
would march, because it would be in your best interest. Is that not what
you want for the rest of the world? Not just for your own economic
betterment, but as I'll tell you in a little while; and we talk about the
strategy pre-eminence, because it's the best thing for them. Andy, I'm
taking you're thunder; I don't mean to.

Andy: No, it's fine

Jay: I adore you - I think he's got - I'm sorry we didn't have a day with him,
but I hope you took great notes and anyway answer that other question
about what you want to leave them with.

Andy: Yeah, I was thinking about that.

Jay: That's the only reason I was talking; to give you thinking time.
(Laughter)

Andy: To me, you've got to learn some kind of consultative process.

That's a must. And the other part of it is your mind-set. It's got to be a
mind-set to serve and help people out, but respect yourself at the same
time, because I find sometimes from the service side, you forget yourself,
but the flip-side of that is, you can't be desperate. Because if you're
desperate, even though you have a great consultative approach, if you're
desperate, you're going to do the wrong thing by the client. And that's
why - kind of scratching your back; not intentionally but it fits - that
strategy of pre-eminence, I actually - I went through it; I probably go
through that thing probably three, four times a year, and every time I read
it I go, 'This is so dead-on.'
Jay: I think we've given you the transcription of it from its original sense,
which is really good, because the babbling - one of my most famous
babbling hour and a half; but it's quite profound in its content, not that I'm
that bright, but because I learned some insights from a company that
used it to go from almost nothing to $500 million, and it's pretty cool, isn't
it?

Andy: Yep.

Jay: Pretty cool. It'll transform your strategic thinking, and it'll liberate
your spirit, and I'm going to do it sometime in the next two hours. But we
have to move on because I'm behind, but thank you from the bottom of
my heart and apologies from the bottom of my heart that I can't let you
go all day.

Andy: No problem.

Jay: And Andy is a trooper. (Applause) He was supposed to go on

yesterday. Thanks man.

Andy: Thank you.

Jay: I'm sorry we messed you up so much.

Andy: We're cool. We're good.

Jay: Louder. Little louder. Piece of music to get our blood flowing, and then
we're going to do something cool. (Music plays) Little louder. I don't know.
[unclear 6:52] (Music plays until end of audio 8:30]

Jay Abraham Mastermind Marketing 14

Jay: I'm late on something important. Sit down or stay out of the room.
Everyone, come on. It wasn’t really a break. It was an energy boost.
Anybody ever go to the - what's the place you go for fruit drinks? Not Juice
Stop, what's the other place? Jamba Juice; and they give you the free
boost? You know what the free boosts are? Am I on? Anybody can hear
me? You know what the free boosts are at Jamba Juice? No, not what - I
don't mean what is in them, I mean you know that they give you the free
boosts whether you want ginseng or [unclear 00:39] or whatever? This
was your free boost. But now we got to get on, because I’m late.

We're going to do something really cool. Sit down, or stay outside. Shut
the doors and tell them to either come in or come out. Now, please. It
wasn't really a break. I know you had to - I was trying to invigorate you.
Couple of real quick points and then we're going to get into it. You guys
are cool, and you guys, I admire you, because this is not easy to stay up
and have your paradigm shifted. I tried to create an environment in three
short days for very - by our standards -very modest cause that could
transform you not just in a marketing sense but in operationally and
implementation sense. I looked at all the reasons why the previous
programs that transformed people's mind but they hadn't done as much
with it; and I put together a complement of experts with skill sets and
methodology and consistent congruency with what I was all about; and
ideological and ethical harmony; and the only problem is it's a lot more
than an eight to five with easy breaks and easy-going lecture-based
dynamic.

I had a choice of making it five days and charging you $15,000 or

$25,000; and I'm not joking. Or making you struggle through it a little bit,
saving you two or three days and cutting about 80% of the cost, and
making you a little bit - not uncomfortable, but have to stretch. I'm
appreciative for you but you will be appreciative, not for me but for all
these wonderful people. The Mac Rosses who go till four - isn't he a bright
man; those of you who made it through? (Applause)

Those of you that didn’t; aren't you glad that I preserve everything on
tape? (Audience says, 'Yes.') Because when you get home and listen to
the ad - I don't know what he did but he's like the brightest man - I'm just
like, amazed by the scope of intelligence, and he's like no-nonsense tough
love Mac; he's a pretty cool guy. All the people I’ve chosen are of that ilk,
and they're very wonderful - like Andy was supposed to be on - you ever
see the movie Airplane, the original one where they were going to land at
the end at Gate 1, 2, 3, 4, - finally 187? Poor Andy was supposed to speak
yesterday at one time or another, another; finally he got moved to this,
because we wanted it to be fresh and you had to get up. But you can
stretch for three days in your life.

You'll have the joyous delight of reaping and harvesting the compound
benefits for the rest of your business days. So stretch, but I appreciate it.
Okay, I'm involved with a really cool group that's got this extraordinary
new technology for video conferencing. I've wanted to be involved in
video conferencing forever - anybody who's ever been involved in video
conferencing knows two things about it. It's always been expensive, and
it's always sucked. Somebody goes like this and then on this side it goes
slow motion; it's just very daunting and frustrating, and you can do 10
minutes of it and you get a headache. And I was involved with a wonderful
group five years ago that were on the cutting edge, and they put ISDN
lines in my office, and in my house; and they put video conferencing and
every time we would do a meeting I would get a headache; and I'd be
doing this and somewhere else the guy would be looking, and I'd see a
slow motion of something that happened four minutes ago. I finally
stopped working with them because I got a headache.

Well, fast forward. There's one company that is owned by some very
brilliant technologists who are really good at technology but aren't as
masterful at marketing, and I and a couple of partners are getting really
deeply involved, and as an experiment for me and as a way to access a
speaker who couldn’t' be here, and as a demo - sort of to you, but more to
me, because it was - this technology costs almost nothing, and anybody
can do it. It's real-time and it's really cool. It may not be perfect, because
we threw it together at the last minute - we’re going to interview for 15
minutes, a speaker who was supposed to be here, in Houston, on the
technology. And it may not be perfect because I’m just learning it - we're
going to have the - I'm involved in it but I’m so non-technical that we're
going to show you how easy it is, and if it screws up it's not my fault, right
Bill? (Laughter)

So who's our technologist? I knew it. Nick is right here. Nick, tell me what
I’m supposed to do. Not a thing. I love that! I'll take ten. (Laughter) So
where do I have to be? We're going to have Jacquie Hall somewhere in
Houston. Jacquie. Isn't this fun? You see me? You got the sound on? Hold
on, this is not perfect, we're fixing it; but Jacquie, can you see me?

Jacquie: Yes.

Jay: Okay, one second. Do we have the sound? This is a technologist's

dream of doing a great demo to 600 people, and having it screw up in the
first three seconds. (Laughter) But since we are a seamless and a well-
rehearsed - this is just part - we do this on purpose. Right, Jacquie? We set
this up, didn't we, for you to lip-sync? She's actually going to do the next
song. (Laughter) I'm going to turn the next day into karaoke, is that okay?
Are we ready? Because if we're not we'll move on and do it again. Nick,
what am I doing wrong?

By the way, I've watched this many times; it's cool; but we threw it
together here in the hotel, God bless them, he's trying to work for it. But
normally, you set it up and it's for companies that want to do all kinds of
neat things, or people who want to connect their clients or do
programming, and we're going to use it in all kinds of neat ways, and if
any of you are interested - this is more for my benefit so I can experience
it. And Bill Osmond, who's a partner with me down here; raise your hand.
He's standing up; if you guys want to know anything about it - but it's
really cool.
Can we hear anything yet? Yes? What do I have to do? Jacquie, say
something.

Jacquie: Good morning. (Cheering)

Jay: Okay, great. Now, I want to do something - can you see me?

Jacquie: Yes.

Jay: Okay, because I don't know if I’m in the right - does it matter, Nick,
where do I face? What's the deal? Where's the mike, where's the video
camera? Where’s the camera; anybody know? Okay, is that better? Is that
better? Can you see - that? I'm just trying to learn this.

Okay, Jacquie, you're where, you're in Houston?

Jacquie: Yes, I’m in Houston.

Jay: Okay, I want to show them instant - it's real time. Normally, when you
do this...it comes out like that....and it looks sort of like an old time movie.
Do this for me. (Laughter) Do that for me. Okay, do that for me.
(Laughter) Oh, come on, do that for me.

Jacquie: (Laughs)

Jay: That's not that. Okay, you’re in Houston somewhere.

Jacquie: Yes.

Jay: You've been listening to this. My apologies but it's been interesting
hasn't it?

Jacquie: Oh, it's been incredible.

Jay: And regrettable you had a change in plans and you were unable to
come, but you very graciously allowed yourself to not only be a guinea pig
but to let me pick your mind for 15 minutes, and compress and translate
what you do for large corporations, into an ideology and a methodology
that maybe some of these people here might consider on their own or in
some other form, to use. Is that right?

Jacquie: That's exactly right.

Jay: Okay. Isn't this cool, because it's like real-time. Anybody ever seen
video conferencing that screwed up; this is pretty cool, and it's like 60
cents - 90 cents a minute to do; it's really interesting. So you have spent
your professional life learning an element of business that I don't think
most people understand, and it really is that there is a way to broadly -
you call it expand the [unclear 8:25]. I'm not using the right words, but
basically - and I'm going to put words in your mouth because I don't want
to use 15 minutes; I don't want to make you a star and I want them to get
provoked favourably forever.

Jacquie has a methodology that goes out and says, 'You guys are dumb
trying to basically read the minds of markets. There's too great
opportunities. You can go to your own clients and figure out how much
more they want in products, services or involvement. You can go to your
competitor's clients and figure what they're not getting. You can go to
markets that you want to reach and figure what it would take for them to
be exhilarated with your company or your product; or you can figure out
what it takes to make your team work so much more productively. Am I
doing it right, or is that good?

Jacquie: That's it.

Jay: You want to embellish it?

Jacquie: Well, what we do is we help you collect the money that's already
on the table. And get the clients you want. And it happens in 60 days.

Jay: That's pretty powerful. Now, on the upside, she's done it for
companies and bought in as much as a half a billion dollars. The thing we
have to talk about, and can I talk about it? It is different for entrepreneurs,
so I want to learn the methodology because you do some really cool
things that may or may not be appropriate for a smaller company, but I
think if you can explain the essence so that everybody can consider it and
what they might want to do on their own if they never were large enough
to use a service like yours; that would be very, very wonderful. So I'm
going to ask you a couple of questions? What's the biggest mistake that
you see companies making that your various clients of approaches would
really help? And why do you think they make it? Let's start with that kind
of a question.

Jacquie: The first thing is they do what I did when I started business. I've
been in business for 10 years, and I’ve been exactly where you've all
been. I’ve had the business from nothing, to growing it. And the big
mistake I made was not listening to my clients first.

Jay: Not hearing what they're saying.

Jacquie: I didn't think about the clients I wanted.

Jay: Alright, so - and you also probably didn't think about what the clients
you had wanted more of. Is that correct?
Jacquie: That's exactly right, because when you look at the clients that
you have, they know at least a hundred other people. And they want to
help you, they want to see you succeed; but most of them are never
[unclear 1:25]. So they cannot help unless you ask them.

Jay: So that's question one. Number two; in the building of your business
and the realizing of this gaping hole, what did you realize that the best
mechanism was to get that information; to make that discovery, to make
that bridge or connection?

Jacquie: The first thing that everyone in the audience can do today is talk
to someone they do not know about their business. And when I mean talk
to them, ask them questions that are open-ended, that let them know
about the nuances, the jargon, the undercurrent, what's happening...
[unclear 2:09]

Jay: Explain open-ended so they get it, and then give us a demo or
scenario so they can get it; translate it to some real-world sort of a case
study mode.

Jacquie: Sure, after [unclear 2:21] today, Jay, the first thing is the
question is, 'What are the challenges that you're facing today?' And when
you ask people that question, stop and listen. Most entrepreneurs - we
just did a project with 70 entrepreneurs for South Western [unclear], and
the biggest challenge is that they ask people they already knew. So ask
people you don't know. We're asking them questions like 'What are the
challenges?' The second question you ask is, 'Ask them to imagine exactly
what they want to happen in their business.'

Jay: Jacquie, see if you can move the mike - is the mike on you or not?
We're getting a little bit of feedback - see if the gentleman there can - is
there anybody there that is helping you?

Jacquie: Yeah, there’s somebody here.

Jay: Tell him it's a little bit of feedback. (Laughter) Isn't this fun? Don't we
have fun? Go like this. Real-time.

Jacquie: Is that better?

Jay: How does it sound? No, I just want to hear every word you're saying,
and it's a little bit of microphone feedback. Keep going. Apologies from
me.

Jacquie: Is that better? So, essentially, the first thing is to look at focusing
on customers you don't know, meaning people who don't have a
relationship with you/ And the second thing is when you ask them open-
ended questions. The questions are designed to provoke credibility. You
know, there's all kinds of questions. An example of one of - provoke
credibility is that you could ask them to imagine the future. And imagine
how they want their business to be in a year. And ask them what it would
look like to them, and what it would mean to them, and then be quiet.

Jay: And listen.

Jacquie: That's right. The mistake that we see - the reason entrepreneurs
will engage us to do this is because they cannot be objective on their
business. And the second thing is most of them talk too much. (Laughter)
They love what they do. And it's sort of like what my grandfather said:
'You just can't stop talking or arguing with a fencepost.' And if someone’s
wanting to grow their business, the biggest challenge is they've got to
listen. There’s a reason that it's not growing. There's a reason that it's not
working. And the big reason is they don't have the information they need
to make a difference.

Jay: Good, I like that. So we're sitting here and we're going to go to our
existing client or to a hundred people, or just to somebody we don't know,
and we're going to tell them about it; we're going to ask them that
question. What's another thing - see, Jacquie’s got this incre- I'm going to
summarize it for a bit and then we're going to expand. We'll go from
macro t micro. She's figured out a really cool way to go to CEO's and get
them to help really be interviewed, take the interviews, translate it to a
distilled fabric that says to a client, 'Man here's the opportunity.' She's
figured out how to take it internally to companies, teams. Figured out
'here's where you're weak or where you're not cooperating.' She's figured
out how to go to people who aren’t' dealing with the - or dealing with
somebody else and figure what you have to do to get them away from.

She's figured out how to find, build more clients. Give us some help,
because I want to ask you the right questions. But you know I'm trying to
make these people, in 15 minutes, sort of get the mind-set, so if they're
too small to ever use a Jacquie Hall, they can run with it, and they can use
it internally, externally; to wonderfully transfer their competitor’s clients to
them, to get four times more revenue from the people they had. So help
me help them.

Jacquie: The first thing is for them to get someone else to ask a question,
Jay, and it doesn’t have to be the [unclear 1:18], it can be anyone.

Jay: Tell them how you do it so they can see, and then translate it; and
that's a brilliant idea.
Jacquie: Because what happened is in our business was, I was asking the
clients questions, and the problem is they saw me in a certain way. And
every time - like my husband says that I open my mouth; it's a marketing
opportunity.

Jay: Yes.

Jacquie: I mean entrepreneurs like what we do, so when you ask

questions, what you want to do is ask for advice, not try to sell them
anything.

Jay: And you believe that a third party doing it on your behalf gets a much
more credible - even if it's like somebody you bring on and they say, 'I'm
the research service that they hired,' or 'I'm an independent and they
want to get some feedback.' or anything. and you do it in a much more
sophisticated way, but you're just saying, put an intermediary there that
has respect, professionalism and independence, because that creates a
hell of lot greater relationship, right.

Jacquie: Well, what it does is it raises your whole end company in the
mind of the client.

Jay: Great point.

Jacquie: Meaning that you care enough about them, about your business,
and you're professional enough to get someone else to ask advice. You're
not asking advice just to sell something.

Jay: Good. Okay.

Jacquie: And the truth is, to fundamentally change, you have to find out
what the client wants.

Jay: Do they know?

Jacquie: You can't do what you want to sell them, no matter if you're
selling bottom-ends or insurance or whatever. It has to be what they want.
People will do anything for what they want. That’s the essence of our
work. Not what they need.

Jay: But Jacquie, how do they - how do you - not necessarily you, but how
does a company, how does somebody here in this audience, through an
intermediary that they create or hire; how do they find out what
somebody wants if somebody doesn't know it themselves? Are those the
questions you indicated, or is there another means?

Jacquie: Yes, and what you do; one of the keys to our work; we learned
this from a gentleman called Hank Moore, that started the Civil Rights
Movement. And he worked for Johnson, and what they did, they did a
grass-roots uprising. It's just like that book, Malcolm Gladwell's book, the
Tipping Point. And if you get to the people who are key community leaders
in a community, for example, I heard one of the people ask a question
about long-term health insurance. [Unclear 3:42] that's your product or
service.

If you're selling that, find out who are the key leaders in aging, in
populations where people would buy that insurance. Who are the people
that make decisions? Meaning that it probably is somebody who serves on
the board and Centre for Aging, someone who serves on a local hospital
board, someone who's involved in a non-profit organization, and those
lists are all on the Internet; they're public knowledge, you can build them
yourself. And I encourage my friends and clients to do that; to start to
think about their business through the connections that it has.

The next thing that you do; once you build a list is send them a letter and
a gift, and the letter [unclear 4:29] has power.

Jay: Who's it emanating from? Is it emanating from you, this company

here, or is it emanating from the intermediary?

Jacquie: It's emanating from the company.

Jay: Okay.

Jacquie: And the letter should be written by another person, because if

you write the letter, Jay, you can't help the sales things in it. Marketing
things in it. You've got to put things - well you're saying, 'Dear Community
Leader, I'm asking for your advice. I know we can change, I know we can
do more for the world and I want you to talk to these people when they
call you.' And always include some small gift under $5.

Jay: Okay, but that does three things. It acknowledges them, it engages
the psychology of reciprocity, and it creates a respectful feeling on their
part that, 'Wow, somebody really wants me to give them a perspective,'
right?

Jacquie: That's right, and you've got to stick to asking for advice. We
have taught entrepreneurs how to do this process, and the biggest
challenge they have is if they call this prospective client, they're trying to
close them on the phone, or sell them. And this process is really a way to
reposition your entire company.

Jay: But it's slow and methodical, very strategic; takes time.
Jacquie: Yes, it does. And the bottom line is, this can make two to three
hundred percent more effective. If you find out you're selling what people
want, and it's a real key to connecting people who want you.

Jay: Now, so what are some of the - because I - you've got something
really cool, and we talked about it. Most entrepreneurs have to do it
themselves because they're too small or they're too instant gratification-
oriented to use a big service like yours, but if they go out and they go to
the community leaders - if they go and they go to their own clients, if they
go out and they go the clients of other competitors; if they go internal and
try to figure out applications from their own team; give me three or four
guideposts for doing that.

Jacquie: The first thing is to say, 'I'm asking for advice,' and mean it.
Meaning that the questions are designed to evoke credibility on your part.
So you're asking the person to imagine a future where you're in that
future. If you place yourself in the future of the team, of your client, it's
on. So the first thing is to position yourself as a person who’s asking for
advice, and you look at if you're in the future of that person. So you ask
questions about imagining the future; what's happening in your industry?
What are the trends you're seeing?

And you ask them - the second thing is to ask them a very clear question
of, 'What do you think I should do?' And listen. And what you can't do is
tell them why that won't work. You have to...

Jay: Don't discriminate. Don't be judgemental. Just be very open and very
eager and very genuinely interested, right?

Jacquie: That's right, and the third thing is the reason you want a third
party, even if - I recommend you talk to people who don't know you. You
call them up and you go to community leaders, in the community where
you have your business, and you tell them, 'I know you're a community
leader; I'd like you to serve on a board we're looking at this industry and
the community, and I want to look at different ways that we can change to
make economic development happen here.' Because that's what
entrepreneurs do; we make jobs, we create money, and we give back
things to our communities where we work. And so when you go and you
rom - when you ask them to come in and give you advice in your office.
And these are people you've never met.

Jay: What happens when you do that?

Jacquie: It's amazing. You will be astounded at the willingness of people

to help you and give you advice. If you truly are open. Some of my clients
- I can't allow them to meet the people that they're getting advice from,
because we worked with one entrepreneur and she said, 'If I meet them,
I’m going to tell them how it's done, why it won't work; I've been doing
this for 25 years, I know my business; they don't know it.' And she said,
'But it's not working anymore.' I said, 'This is the only way to do it,
because you need a viewpoint from someone who is connected to the
people that will give you business.

Meaning that - her business is - her [unclear 9:00] business is in the

moving business, and she moves very complicated organizations so, she's
a very small company, she's around 800,000 in sales; she wants to grow
to $2 million; she has her family in the business, and what we did for her
is bring together a team of advisors, and we told here the only way she
could be there is to never say the word 'but.' To only say the word 'and.'
And she did, and it was marvellous, and her business has tripled this year.

Jay: So, it's great. Give me a real scenario, even if it's at a much loftier
level, so the people here can grasp the impact of this process; doing it
themselves, going to a company like yours. Whatever it is - and again, the
truth of the matter is, Jacquie knows most of you are not even prospects
for the two reasons - too small and also too short-term oriented in results;
but help give me an incredible example of the best application of this -
because I’m on a timeline; it's not your fault. You're being gracious as
heck. Give me two quick ones and then give me a couple of pieces of
recommended action steps they could do for getting their team more
productive, getting their existing clients more profitable for them by
expanding product services; and opening up markets from the people they
aren't serving right now - competitors, clients and otherwise. Okay?

Jacquie: Okay.

Jay: Go for it.

Jacquie: Here we go. We have a client that, they were making a decision:
do they shut down the business, pump money into it with investors, or sell
it. And they didn't know what to do, so they brought us in, they said, 'Help
us answer these three questions one way or the other.' And so what we
did for them is look at the community leaders that were attached to their
business; their organization. And we were very able - able to sign people
who wanted to help them, who believed in them, because the one thing
that we knew is their clients - and it was also in health care, so their
patients loved them. They valued the service, they just didn’t pay them.
That was a bit of a problem. (Laughter)
So what we found out is that the community valued what they did; they
just didn't know how it could benefit their organization and help them, and
there was certain things they wanted. So what we did is we talked to
community leaders, we were able to find out that people wanted to help
them, they believed in them, and we found out particularly what they had
to do. And what they had to do is to develop a real simple unique selling
proposition to explain what they did...

Jay: So they were appreciated more and valued more by the market
place?

Jacquie: And by themselves, Jay. I think that was the big a-ha for them;
they found out...

Jay: They didn't revere themselves.

Jacquie: They just weren't a group of losers in a business that was losing
money. If - they were people that the community depended on them to do
well, and they were people that their employees believed in. And all they
had to do was make a five degree shift, and the shift was partnered with
people they saw as their competitors.. And that was the big home-run for
them. They started to partner with people they had competed against,
and were able to work with them so they could provide more services to
their client. And what happened is we recommended that they put $11
million into the business. They did; it made money, it tripled revenue in six
months, and the reason they were able to get the contract is because we
helped them find a simple way to explain the value, and a big value for
them was in a service that was called disease management. It's just a new
service that everyone wanted, that they didn't even know anyone cared
about.

Jay: No, question. But what you're saying is by picking the minds, by
getting clarity, by getting the actual verbiage from the people you
interviewed, you were able to build a way to re-articulate to the market,
but also to demonstrate to the client, 'Hey, you guys have so much more
value, that you don't even revere yourself.' Is that correct?

Jacquie: And that's what I’ve learned from you, Jay. And that's what I
believe that our clients...

Jay: But we've talked about your own practice, and that you don't revere -
I mean, you do now, but we've - the nice thing about my relationship with
everybody is we’re very candid, and that helps everybody learn. Jacquie;
we've talked about your practice and I’ve shown here that she doesn't
necessarily revere the implication, and until and unless she does, she
won't get the clients through, right? And now you've started doing it, it's
made a profound difference, hasn't it?

Jacquie: Yeah, that's why I couldn't be there this week.

Jay: Because these are really, really, really cooking, aren't they?

Jacquie: They are.

Jay: So give me another scenario.

Jacquie: Another scenario is a small business, so one person business,

and he helped give award and appreciation gifts, and he has them
designed by artists, and they're beautiful. He's done some work for a new
stadium here, and very beautiful service awards for a wide variety of
construction companies. I think Zachary Engineering was one of them.
And his name is Tom Ferguson, and Tom and I talked about it, and he said,
'Jacquie, I can’t keep doing this, you know. My family is losing faith in me,
I’m losing confidence. Would you just help me?' And so what we did is I
said,' I'd be willing to do a test with you, if you would help yourself.' And
he said he would.

So what we did is we developed a list of 50 people, and we had a

methodology of research where we're looking for a connection. Who
knows who, and who serves on boards? So when we talk to them, we want
them to talk to each other about Tom Ferguson. And they did. And what
happened is he was able to change his client base completely. And that
was a huge shift for him. He kept trying to make high-level executives talk
to him, and it was the directors that had multi-million dollar budgets that
would give it to him. And he was trying to make these people that would
never see him, talk to him.

Jay: So what did you find out, and what did you do?

Jacquie: What I found out is he was calling too high in organizations. We

found out that directors wanted to do business with him, and we found out
that a lot of these people valued art. That many people he had called on,
they valued his emotional connection to the employees and to the
community, because they saw the art as more of a connection, and that it
wasn't like giving someone an award, or giving someone a gift. He
developed a group of beautiful service pens for a funeral home
organization....

Jay: But it was a permanent expression of that funeral home in the

community, right?

Jacquie: That's right.

Jay: Very smart.

Jacquie: When he did that, he struck at the heart. And what he saw are
the nuances. It was the little things that he was leaving out. For example,
he had artist's [unclear 15:49] all these beautiful pen and ink drawings of
the work and all these sketches. And what he did is with the sketches, he
just threw them away or just kept them in his file cabinet, and I asked him,
to frame them and give them to his clients, and he did. And they were just
so thrilled to be part of the process. And what happened...

Jay: Yesterday...

Jacquie: His revenue doubled. Because he started talking to directors, not

wasting his time, he's much happier and his whole viewpoint of himself
has changed.

Jay: That's wonderful. Give me - yesterday, Brian Tracy opened, and he

had all these cryptic overhead Mylar notes, and he threw them down and
someone - who's the one who came and wanted them? No it was smart,
she said, 'I want to frame them, put them up.' And very insightful because
you’re showing people connections that were so - it's like the forest and
the trees. give me one more, then I'll ask you three questions and let you
go on to your husband or whatever you're doing. Go ahead.

Jacquie: Thanks. But the last - a client that had so many books on the
shelf, they had hired a lot of people to help them in the business, and all
the people they'd hired had never really helped them; they just written
books, written reports. The difference in a consultant and an advisor; the
consultant writes reports, the advisor gives you data and information. And
so he said, 'I don't want an advisor, I don't want a consultant, i just want
some help.' and he said, 'What we're doing - we can't get everyone to
work together, and what can we do to make that happen?'

And so what we did is we found 50 customers all over, that they could
work with. They were all over the globe. And for entrepreneurs, what we
don't realize is that business is happening in China, in Russia, that we
could have multi-nationals that would sponsor us to work with people all
over the globe. We just did a project in Russia, and we never flew to
Russia; we got a local partner to help us, and it's not complicated. And it's
what people want to do. And what we did for them is show them what
these clients value. So when we talked to the clients, it was the nuance, it
was just the ripple effect of what was happening in the market. What was
happening in the market is that the customers wanted people who spoke
their language, who are local, who could help them. And the other thing
the customers wanted is for them to work together. They didn't want to
have different people calling them from different divisions.

You're even - as entrepreneurs, even if you have different people in your

shop, you might have two or three people calling them the same client.
What the clients wanted is a one to one connection and they wanted that
person to represent that company. They wanted a human touch. And right
now, from our research, what we've found is this is so significant, people
want the human touch, they want the element of connection, and of
caring. And so what we did for them is show them how they could do it
quickly, and they did. And all they did is just told the client - they called
the client up and they said, 'We'll listen to you,' and they called the client -
the key to it is quick action. And that's the first recommendation I'll make,
Jay, is quick action.

What this client did, is we did our work; we talked to 50 people and we
had in depth discussions with them, and what happened is that day, we
presented the result to the client. At the meeting, he picked up the phone
and - Jay [unclear 1:06] was the guy's name. He called immediately and
made and appointment.

Jay: What happened?

Jacquie: So what happened is - he got a huge order; an order four times

bigger than he normally would get. Because he said, 'I listened to you, the
[unclear 1:21] said we needed to do this, and I want to do whatever you
want that'll work for you. And I'm listening.' And the client said, 'Well, it's
finally time.'

Jay: Good. Two, three- because you're being gracious because I was only
going to do 15 minutes, and I’m so far behind that everyone's going to
probably throw rotten eggs at me. Give me four, five, three; action co-
efficients that these people - if you never talk to them again, if they never
would ever - they're too small, or too short-term oriented; they're not right
for you, but your job right now is to forever transform how they look at
theor relationship with their; a: existing clients; b: competitor's clients; c:
markets they're not tapping; d: own staff. What would you tell them to
absolutely do? Not think about, but do?

Jacquie: The first thing is right now, in front of you, you have a piece of
paper. Make a list of all the qualities of the perfect client. Second thing is
look at what makes that client tick. And what makes you tick? Why do you
get out of bed in the morning? And you can find more about this from a
book called 'Attracting Perfect Customers' by Stacey Hall and Jan
Brogniez. They're two women that I helped start their business. And it's
beautiful model; it's got a strategic attraction plan. then what you look it
is what can the customers expect of you, or clients expect from you.

And then the last thing is to look at where is there room for improvement?
So when you do that strategic attraction plan, you get real clear on the
client you want. And the next thing is to build a list of them, and you can
do it yourself or have someone do it for you...

Jay: Of prospects - of quality prospects. And that's very much like Chet's
dream 100.

Jacquie: Right. People that don't know you, and you're not doing business
with; because you can get information from them that's totally unbiased.
And so you have your - you're clear on who the perfect customer is; you're
clear on your list; and the third thing is, on that list, check for connections.
You want people who serve on community boards, and I'd recommend
that every entrepreneur get on some non-profit board. Just that.

Jay: Why? Tell them why, because all these people are independent
islands that don't have time for anything in the community. Why is it
important?

Jacquie: The biggest client we ever got - we got a $3.6 million contract by
doing $5,000 of free work.

Jay: For a community?

Jacquie: For a community that served - it was something that was perfect
for me, because my heart is with a lot of the immigrants that are here.
There are a lot of immigrants from Mexico here, and their kids don’t' go to
school, and they don't get any help because they can't ask questions. So
we did - I served on a non-profit group. I didn’t' join the board, I just said 'I
want to come in and do free work for you. What can I do? And let me help
your board.'

Jay: And tell them the level of people you start immediately associating
with.

Jacquie: Well, it changes your world, because all of a sudden, it's the
person you've always dreamed of getting an appointment with - research
the board. I went to the ones I knew were people I wanted to do business
with, served on the board. And I asked the executive director if I could
help them, and I didn't sell; I just helped them, and I said, 'The only thing I
want in return is a presentation to the board.' And I made sure the
presentation was on, so the third thing is join a community board. Not
because it's good for your soul; it is good for your soul, the right thing to
do. It's just really good business. And if you look at the people who you're
building on this list, you want generous clients. Because generous clients
give you referrals, and they care about you and they treat you right.

And the fourth thing is to follow your gut, your instinct, your intuition;
whatever it's called. This week, we have just been through all kinds of
stuff, because for one time I didn't follow my instincts. I mean, I can tell
you that the times in my business that have thrived the most is when I
followed my gut and followed my instinct. And I took the clients I want.
And I did business with the people I cared about. Because then I could
give my heart and soul.

Jay: And that you knew you could help the most. The ones you knew you
could help the best. Good.

Jacquie: Yeah, because it's not only you can help the best, it's the people
that you know that you can literally take energy from other things that
you're doing, and make a difference for them.

Jay: Good point. And you can't do all things to all people and you'll learn.
Here we have a couple of people who are frustrated with this process, and
we respect them, but I said if I play to them, I'd steal from everybody else,
and that's to your disadvantage. And you've got to know what you want
and what you don't and what you can give and what you can't; and you've
got to draw the line. One last summary. If they only get one overriding
insight, thought; big haunting revelation form your last 20 or 30 minutes,
what is it?

Jacquie: First, it is sell to the people that you want to sell to. Work with
the clients you want to work with, and give them what they want, not
what you think they need.

Jay: Good.

Jacquie: That's it. Because many people need a lot of things. You may
think they need it. But find out what they want. And when you satisfy what
they want, it's on.

Jay: You're great. You're gracious; thank you, appreciate it. Have a great
day, and you're wonderful. (Applause) Thanks a lot.

Jacquie: That's okay. [Unclear 6:45]

Jay: Wait, wait. Okay. Thank you. So isn't that interesting? That technology
- I mean, again, Bill; with all due respect, I’ve never - I’m about as
technological feeble; we've never done it before, she's never done it
before. But it's cool because the technology has three different ports you
can do. You can do internet Power Points, you can do infrared and you can
control - if I knew what I was doing I could control the video, I can control
CD-ROM; I can control all kinds of things. It's really cool isn't it? And also,
you didn't see it well, because we got lights up, but isn't that cool? If you
have any questions, Bill and I are involved in it, but it was more for my
benefit.

We're going to do Bob Allen tomorrow and try it. Anyhow, that was pretty
interesting wasn’t it? Good. Okay. A question; because I was thinking
about - I have - I feel like Martin Luther Abraham.

A have a vision, and the vision is to get you this incredible, integrated
breakthrough, and I need to do it by layering lots of different people, and I
need to also get you into my stuff. But the truth of the matter is, my stuff
is so repetitively layered; and all the stuff I sent you, and all the stuff I
gave you here; that I’m going to do as much as I need to. But do you
understand I'm trying; I've got three days of my life, and I've got twelve
90 minute phone calls with you to transform you, so I'm trying to – (Audio
missing) what I think is going to help you, and just sort of bust wide open
your paradigm, and I hope you're with me on the process. Yes? (Audience
says, 'Yes.') And we might go late, and we might change people, and just
work with me. So how many of you - and I know you went - those of you
that were up for the challenge went until one or two. How many did Mac
stay last night? Is he an animal? He's pretty amazing, isn't he?

Have you ever seen a mind with that knowledge? And that intensity? And
that - he's like - he calls a spade a spade. He's like 'Okay guys, that's crap.
Arrgh!' He reminds me of Winston Churchill’s angry brother who they
locked up and let loose just to come to seminars. (Laughter) He's the
brightest guy I know; he's got a knowledge base that isn't from this world.
I don't know where he got it, but he understands everything, from
business to philosophy, to - you name it; he's really a masterful man.

Who got and read one of the book analysis? Most of you? And are you at
the right tables? Here's the concept. One of the things I try to do, and I'm
trying to now, and why I want you to move around; is I want you to see
the world from everyone else's perspective. That's what the key to growth
and breakthroughs is all about. I urge those of you who have a pre-
disposition to sit in the front of the room, to force yourself to sit in the
back. People who like to be in this corner for whatever knowing or
unknowing reason, to sit in that corner diagonally, because it'll give you a
different context and a different perspective on the world.

I sound like my voice is going up and down. Can you turn me up just a
little bit? I don't want to raise my voice and go whatever by the end of the
week. So we used to give out - at longer programs, when I was doing more
of it, I would give out - I would figure out whatever you love, and whatever
you love - I could say you loved macho things and you loathed feminine
things, and I'd go out and buy magazines and books - over 500 books, and
we'd give - if this gentleman liked exercise and rifles and - I would go out
and get macro-made book for him, and maybe Cooking Today, and make
him go one evening and read two chapters, and make him come back the
next day and report to his table, the one most interesting insight he got
that he never would have thought about.

Because I want you to understand how many different ways people see
life. We have, as a service, and again, I think it's important to you and I
pummelled my partners, Marshall Thurber and Edward Neil to let me do it.
Marshall is brilliant - also, Marshall where are you? He has great - anybody
see Marshall last night in the corner? Marshall, God bless him - I got these
wonderful friends, allies, partners from around the world, [unclear 2:48]
here, they will come. I don't even pay them; they pay their own way.
Marshall was in Singapore two days ago, but he needed to be here so he
didn't sleep for 40 hours to get here.

He got here; he was sitting in the back talking, and I think he got a little
tired. But the truth of the matter is, he’s been working on this skit for
about a week. He used to be a mime and he thought, 'What would happen
if I lay down in the foetal position for three hours; will anybody notice?'
Right, Marshall? It was hard to hold that position wasn't it? (Laughter)
Marshall happens to have a 400 IQ and be one of the brightest men I've
ever met in my life; and he and Mac together would be a formidable team;
but Marshall reads 40 books a month. 40 books a month; for his clients.
He's got Fortune 500 clients around the world and global 1000 clients, and
he summarizes the most important universal book for that client, and he
does these really - analysis that I'm now on the team with him and Edwin.

Then they get the author, and they probe and penetrate and interview the
heck of him. We've taken the 30 or so books that Marshall has done this
with, which has the equivalent of about 40 - about 15 or 1600 books you
would have read; and Marshall analyzed them and put the analysis in a
CD-ROM for you. But we've taken four of them that we wanted you to read
last night, because we wanted to see if you get out of them as much as
we think you will, because Marshall and I are going to start doing an
interview service with people and doing an interaction. We'll talk about it
tomorrow or the next day if it resonates to you, but we want to see what
you got out of it what you didn’t, what you got out of it that you didn’t.
So for 10 minutes - for 15 minutes, I want to go around the tables, and I
want each of you that read the book to summarize the big insight; not
everything you got; the big single insight you got from it, and what you
see the action or implementation, or change it means to your business;
and then I want you to pick one person, and then we're going to go to the
mikes. But when you go to the mikes, for expediency, you are the
emissary, you are the ambassador, you are the representative of your
table. So your business is only tangential; you want to make now the big
explanation of an insight that will be relevant to everyone. So we'll take 15
minutes max. Each of you that read the book, go around the room, and
tell about it. If you get done earlier because all of you didn't read it, raise
your hand so I can accelerate it, because I’m on a timeline that behind on,
and I’ve got to catch up. So 15 minutes and let me know.

Okay, alright. (Whistles) Vote. Excuse me. Shelby, get someone to get me
a some more sparkling - I want a hot coffee, black. Okay, everyone vote.
When you got it, raise your hand. When you got a - okay, you go to a
mike. This table go to mike. Who's got a vote from the table? Come on,
that table back there go to a mike. You guys go to a mike. Go to a mike.
I’m not going to be able to do all of you. Go to the mike; we'll do as many
as we can.

Can you bring me my green stuff too. Michael Saber, where are you?
Michael, are you here? Michael, I need some green stuff. Thanks Albert. If
you can find Michael, I lost my green stuff. Thanks.

(General chatter)

Okay, stop. Everyone. (Whistles) Stop. My voice is leaving. Stop. Nobody

else go to the mike, if this - I won't be able to do all you. But you guys
have a winner, and that's good. Stop, please. If I have to yell then I won't
be able to talk anymore for the next few days. Excuse me. Quick, we don't
need to know your business, or anything else, because I want to get as
many people. Just what's the biggest insight from your table, and the
action that is evident in it; and what's the book. Go ahead, sir.

Man 1: Yes. The title of our book is 'Identity is Destiny.' And the group has
shared common themes that come very eminently from the book; that
personal integrity and accountability is a way of life for you, regardless of
what you do. And if you're a salesperson representing your company,
these values must come across to the client or the customer, that you are
sincere, that you are not pushy, that these values - your personal integrity
and accountability is the pre-dominant factor, and therefore if you respect
your customer and you believe in yourself, believe that you can buy your
own services, and you can pay for them; I think the customer will see that
you are sincere, will be willing to dialogue with you and engage your
services.

Jay: Great, thank you. Now first of all, before I even go any further, was it
interesting to see how many different perspectives people got from
reading the same thing? Pretty interesting. You see what I’m trying to
clearly demonstrate? You've got to travel outside your own limited mind
and min-set if you really want to grow an inch in your breakthroughs.
Thank you. Quick as can, but it's clear.

Man 2: Peter Cooperman. The book we read was 'Weird Ideas that Work.'
And the insight that we got, yesterday Chet Holmes talked about an
emerging company establishing the three P's; policy, planning and
procedure. What we got from this book is maybe that works in going from
$1 million to $10 million, or $10 million to $50 million, but to get from -
when you have an established company, to a billion dollars, you actually
have to do the opposite. You have to spend the percentage of your time or
resources - 15-20% challenging the three P's, so that you take yourself out
of your comfort zone and try weird ideas that work. That's the idea that
we got.

Jay: Thank you. Sir?

Man 3: The book that we have, it was 'The Experience Economy,' by

Joseph Pine II and James H. Gilmore. And I basically, I think we can
summarize it in three words. And that is 'Everything is theatre.' If you
think of everything as theatre you come at it in the beginning from an
experiential point of view. What is the end result in terms of an
experience? And then you take it from that context. What do you have to
support it? You have your props; you set up your props, and ultimately,
everything you do is an experience.

Jay: That's great, thank you. If I were people listening - I am not; and I had
a pen in my access, and piece of paper on my table, and I was getting the
best result of ten or fifteen people spending an hour thinking about
something from ten or fifteen different perspectives. I probably would be
writing down something. But I'm not you, so I don't know. (Laughter) Sir
-Ma'am?

Woman 1: Good morning, my name is Linda Bruce, and the folks at our
table talked about the book 'Weird Ideas that Work.' One of the things that
we decided is that first of all, you don't throw out what's already working,
but you definitely want to add to it. You want to have a playful mind-set,
you want to have fun, you want to not take your business so seriously. You
need to do something that's different and unusual, to get your clients to
come in and say, 'Hey, when I come into this place, I enjoy myself.'

I know that there are some businesses that go out there and really put on
events, not just once a year, or twice a year, but every week or every day;
to pull their clients in. When you pull clients into your store, and let them
have fun there, then they hang around a while, and they buy more. And
the big plus, they start talking. They talk to all their friends, and you've
got referrals out the ying-yang. So that was one of the things that we
learned there.

Jay: Great.

Man 4: Kevin Dunlin. My table also read 'The Experience Economy.'

Jay: Before you answer, did you get something different out of it?

Man4: Yes, we did.

Jay: Is that interesting? Amazing. (Laughter) Go ahead.

Man 4: We found that the more - customers come to do business with you
because they want to be changed. For some reason, they want their lives
to change, obviously for the better. The more you can involve them in the
transformative experience, the more they're willing to pay. It's the
difference between coffee that sells at 5 cents a pound in a burlap bag,
versus a $5 coffee cup at Starbucks. The more you can involve them,
make them different, make them into better people., the more they -price
goes away. At Disney World, no-one askes for a refund because they
emerge different people. A final question. If you asked yourself, what
would we do differently if we charged admission? It would turn...

Jay: What a great question. Was that from the book?

Man 4: Yes.

Jay: What a great question. Thanks.

Man 4: Yep.

Man 5: (Makes funny noise) 'Weird Ideas that Work.' (Laughter and
applause) Whatever gets you outside your comfort zone. It could be an
irritant, something up your butt, something in your shoe; anything. If
you're creative, get someone who's boring. If you are boring, get someone
who's creative. So whatever it is; weird ideas that work. Tom Hanks in Big.

Jay: Is that it?

Man 5: If you’re used to a lot of talk; silence. (laughter)

Jay: Let me tell you something wonderful. Great, great. (Applause) Try to
incorporate silence the next time you're in any kind of selling or
compelling dialogue, and it is one of the most profound things to do; just
look at someone and zip your lip. It's quite a profound experience. Thank
you. Sir?

Man 6: Our table read 'The Experience Economy.'

Jay: Did you get something different out of it?

Man 6: Absolutely.

Jay: Amazing. I am shocked. (Laughter)

Man 6: And coincidentally, this book is about basically believing that

business is like theatre, basically from all levels, that you can pursue a
theme in your particular business, or that you may view your role in a
business as basically taking a different type of acting approach; where in
certain situations you may take an improv approach. You know, there’s
situations where you may act more scripted and that you may want to
carefully consider implementing certain aspects of theatre in your
business. Ironically, I ;;m experiencing a little performance anxiety right
now, so...(Laughter)

Jay: That's funny. Thank you very much. (Applause)

Woman 2: We also read 'Weird Ideas that Work,' and what came through
for us was the importance of both of the two models that were discussed;
the optimization model and the innovation model; and finding people that
can fulfil both roles and placing them in the appropriate areas within the
business. The optimization model might be really good for systemizing
and strengthening things like the three P's; or accountability or reporting,
areas like that. Innovation would be much more important in areas of
product development, and marketing and new ways of attracting your
customers. And also that having those different kinds of people and
plugging them into the right areas of your business, being key, but also
bringing those different aspects together; and that the tension that is
created through the different elements and the different models really
stretches both sides and expands your paradigm and gives everybody
new ideas

Jay: Great. Thank you. As quick as you can, because I’m trying to get all
of you, and I want to get as much in here, and I want to make a point.
These are - not everybody who read four books. They're 39 books that we
chose. There are so many books, so many perspectives, so many
methodologies out there. The more you can network and mastermind, and
get and grasp and understand, and funnel in so you can select and refine
and combine all kinds of different people's enlightened perspectives
based upon the way their minds are wired and they interpret it, the way
they have experienced it; and understand it, evaluate, not judge and put
together hybrids. You could own the world. Marshall and Edwin and I , for
example, if you guys are interested, will let you know tomorrow. We're
going to organize a version of this service where we literally get people on
the phone after they've read it and do this kind of stuff, because I
obviously want it for myself. Charge almost nothing; I want it for myself,
and Marshall wants it for himself. We want to grow by the perspective. You
should force yourself to do this. Which way do I go, this way or this way?
Who did it last? There? Go ahead.

Man 7: Hi, my name's Marcus [unclear 1:30] and our table found the most
profound thing in identity is destiny; is the paradigm shift from machine to
identity. So there's three qualities that converge. Efficiency, integrity and
endurance, and the identity paradigm is grounded in power and grace,
which will unleash potential. Now, I basically went ahead and I found an
action from each of the speakers that we've heard so far. So for Brian
Tracey, it's grow, pulse, thrive. Fran Tarketon says knowing what I don't
know. Chet Holmes, the proactive reactive. Mac talked about the winner
take all from the global economy, and if you were here till 2 in the
morning you knew about that. Andy Miller talked about overcoming bad
experiences, and last but not least Jay; you kind of talked about the goals
of the seminar: never sit at the same table, try to tell the truth, and how
you're not up there for visual display. So kind of rounds it all out from the
paradigm shift from machine to identity.

Jay: Good. Thank you.

Man 8: Brett Nelson; I’m with the leading Weird Idea table over here. We
felt that our whole business careers and at this seminar and every other
seminar you go to, you're taught systems; how to improve and develop
systems so that all your marketing efforts, all your products, launch
efforts, everything else, is turned into a system, and when you're trying to
create new ideas that you can put into the market place, the key is that
you have to develop a system for that creative activity. If you don't every
new idea you come up with, the minute it hits; a new idea; the first thing
you start doing is developing a system and everybody is off trying to
follow that path, and you lose that creativity right away. So you have to
come up with a system within your company to have a creative process
on-going all the time; whether that be bring somebody in from the other
side of your company occasionally, to critique and come up with ideas;
and it's hopefully somebody that does things completely different; doesn't
like the way you do things, and you don't like them. Too bad; they're just
going to give you ideas that really challenge your paradigms., and you've
got to develop a system to do that.

Jay: Good. Thanks. Only - I’m not going to get all the rest of you; I’m
probably going to do three or four, and the rest of you sit down and know
that I have your - my undying appreciation. At lunch, share the rest; I’ve
got to move on, but one, two, three, four more on both sides, and then the
rest, thank you. Okay.

Man 9: Good morning. Martin Whales, 'The Customer Catcher.' We were

sitting at our table discussing identity as destiny, and it really came down
to whether you call it brand or USP. It was about the value, and
commitment you bring to your clients, your employees, and your
investors; so it was about branding your company, not your products,
because what you're selling today you might not be selling tomorrow, but
your relationships will endure if you deliver value to your customers and
maintain those relationships.

Jay: Good, just - I’m sorry, I’m trying to figure our schedule. Just go back
and forth until...

Man 10: My name is Ray Burrows and we read 'The Experienced

Economy.' What we talked about at our table was the fact that you must
be in command of the staging when you're selling and marketing. And
being in control of that is essential. Also you must be grounded in your
marketing material and your marketing and sales know-how, so that you
can improv when you are not in command of the staging.

Jay: Good.

Man 11: Hi, I’m Bill Shaw. We also read 'The Experience Economy.' At first
glance, it seemed like it was a recipe book for building a theme park or
theme restaurant, and we all at first thought, 'Gee, that doesn't apply to
us.' Then as we spoke a little more, we realized that the basic premise we
saw from it was that all of these places leave an indelible impression upon
the client that comes in. They talk about it for several days after, weeks
after, months after; hopefully even a lifetime after. And that we should
strive; when we are dealing with our clients, to also leave an indelible
good impression that they'll be talking about for months to come, years to
come, lifetime. If we’re replaced in a place, and the next place isn't doing
something, they'll be referring back to us as being, 'Remember when we
had those guys and how great they were?'
Jay: Great, thanks.

Man 12: Tad Hargrave from Canada. We talked about 'Weird Ideas that
Work.' One of the thoughts that came is this idea is really scalable; you
can do it on a very small level from just rewarding employees for a new
idea, to hiring someone that you just totally can’t stand that gets under
your skin. Also, the realization that there's a real need to commit to
building reserves that - it's really hard to innovate and put all these new
ideas in if you don't have the reserves of capital or the emotional stability
to handle diversity, so that there really needs to be a commitment to that;
that this really also requires clear vision and trust in the team; that if you
get all this diversity without a clear vision, that that can really tear things
apart. So it needs to be rooted in a sense of clarity. And I agree with the
person that spoke before that you need a system to make sure that this
happens.

Jay: Good. Okay, good. Muriel?

Woman 3: 'The Experience Economy,' and I love that book. I thought -

we've always felt that we're on stage with every client that we have; that
was the consensus of the table. Also, our marketing materials will be
changed from cooking classes; and there are a couple of people at the
table who also do cooking classes; to the cooking experience.

Jay: That's great.

Man 13: Don Kemp; we had 'Weird Ideas that Work.' We have very simple
choices; grow or die. If you do not choose to become increasingly more
comfortable with becoming increasingly more uncomfortable, then you
choose to die.

Jay: I like that.

Man 14: [Unclear 1:28]. Identity is destiny; felt clarity is power. You have
to be aware and effectively communicate that corporate identity in a
constant, continuous manner, whether it's business, government, religion,
military, profit or non-profit organizations; and you really have to clear
about your own individual identity, and whether it's in alignment with the
corporate identity. Integrity is essential, and it's often - this identity is
often created by a charismatic individual or team, and can be very difficult
to transmit and perpetuity and effectively cope with change at the same
time.

Jay: Jean, one question. You've been to one or two past events?

Man 14: Two.

Jay: This is the third one?

Man 14: This is the third.

Jay: What do you think is different about this, if anything, and what do you
think is a distinction that I'm not seeing, that's good - you can criticize me
constructively if it's bad, but good, so it'll -no, no,; so it'll serve the
audience. What are we focusing on that maybe I wasn't before, that they
should really pick up on, that you see as a professional, as a scientist; that
maybe we could help them with?

Man 14: Well, what really turned me onto coming to this particular
mastermind; I was at the last that I was presented; and what I find is really
unique with this and part of Jay's emphasis on funnel-thinking, his
inclusion of all these different, powerful, unique minds together, really
geometrically expands my mind, and that's what really turned me on.

Jay: Good. Turns me on too. Thank you. Okay, last but not least.

Man 15: Al Hiesly, 'The Experience Economy,' and well, what we have
come up with is that regardless of whether you have a theme business or
corporation, that you could create the experience in the sales pitch, or in a
voicemail,; much like the Burma Shave signs; that you really don't have to
create anything physical.

Jay: Good. Okay, thank you. Alright, couple of comments? You got -
[unclear comment from audience member 3:31] Well are you offering?
Then why don't you do so? (Laughter and applause) How did only one
table get 'Science of Shopping?' Was that a statistical aberration? Is it a
different book? Okay, come on up. It's called 'Why we Buy?'

Woman 4: It's called 'Why we Buy...'

Jay: Before you say anything, you realize now - you better be damn good
in what you say. (Laughter) You look good but let’s see if you sound good.
(Laughter) Go ahead.

Woman 4: Well, it's 'Why we Buy - Like, Totally, the Science of Shopping.'
(Laughter) [Unclear] of Southern California, thank you very much.
Basically what was very, very impressive about this book was that - and it
basically applied to retail primarily, but it does apply to all of our
businesses - was the subtle accommodation of the subconscious natural
behaviour of human beings?

Jay: What’s the biggest single insight?

Woman 4: The biggest single insight is that the longer that you can keep
your client or your customer in your place of business or with you...

Jay: Or in the transaction [unclear 4:48] experience.

Woman 4: In the transaction in the retail store, because they're

comfortable being there, the more likely they are to buy.

Jay: And come back.

Woman 4: And come back.

Jay: Very good, that's good. Did anybody else read that book? (Audience
member says, 'Yes.') Any other table that I sent someone down that had a
report on it? Then you come to the mike too, because it sounds
interesting. Thank you. Two more. Was it just a statistical aberration you
were all at the back? That's weird isn't it?

Man 16: No it was in the planning of the tables and the location of the
microphones. It's a geographic problem.

Jay: You guys were a little timid about running to the phones?

Man 16: No, we just didn't want to cut in front of the people in front of us.

Jay: You knew that you had pre-empted the end if I sat everybody down
and they'd have a lot more reverence for your message, right? (Laughter)

Man 16: Isn't that nice.

Jay: You guys all huddled and said, 'Let's plan this out so we dominate,'
right?

Man 16: Perhaps. Are we ready? (Cheering and applause) Are we ready to
dominate? Alright!

Jay: I am visibly impressed. So are the rest. Go ahead.

Man 16: Okay, Larry Bordle is my name, and from the male standpoint -
actually we had two dis - staff at our table as well. This article really
divided the population very sharply between the men and the women.
And our male guys were definitely male guys and the gals were gals. Who
here of men really like to shop with their women?

Jay: I love it. But I love it for...

Man 16: Really?

Jay: I love it, oh I love it.

Man 16: You're very strange. (Laughter) It has nothing - you have nothing
to do with how they're serving.

Jay: Women like me because I like to go shopping.

Man 16: Well, actually what we gained from this is that in every women's
shop, there should be a men's room. (Laughter)

Jay: Ha ha, okay. That's good.

Man 16: Where you can sit down and play on the internet, read
magazines, watch some video or something like that.

Jay: Watch some video or something!

Man 16: And that presents within the store, a real retail opportunity that
women's stores haven't really capitalized on.

Jay: That’s good. That’s good. Alright.

Man 16: And we've also got a gentleman who deals with autos, auto
sales. And he should have a women's room.

Jay: Okay, that's good.

Man 16: And the women will have a good marketing opportunity. Thank
you.

Jay: That’s great. Great. Yeah, sure.

Man 17: My name is Timothy Walker out of New York, and my table
looked at the dressing room aspect. It says that the dressing rooms are
messy, and [unclear 7:10] and all the rest - smells. (Laughter) The book
says a dressing room should have decent hung mirrors like these art
frames around here. A chair, candlelight - but it didn't specify candles, but
candlelight, bright lights, neon lights; and a chair so the lady can sit and
test the flexibility of the dress when you wears it.

Jay: Great point. That's great.

Man 17: She can see the texture and the reaction when she changes the
light. So I told my table, 'You know, I’m going back to New York and I may
switch my way of thinking, and give Macy's a prototype of what they can
do to their dressing rooms.

Jay: That's great, thank you. (Applause) By the way, if you guys want to
have a mind-blow, go next door to one of the other rooms and look at
what this room could have been like if we didn't put the art and try to
really make a cool experience. I did it just to make it good for you; you
guys like the art, Spar will certainly sell it to you; but I did it to make it a
cool experience for you. It's pretty neat isn't it? (Applause and cheering)
I'm trying to get - no, I don't need that. I 'm saying I'm nothing but a
demonstrable, object lesson for you. Do you understand that? I don't need
you - I really don’t; I’m very flattered but it's not what it's about. It's about
me stepping out and letting you in on the secret and saying, 'Look what
you're feeling. Why do you think it would be any different, relatively
speaking, to take whatever dynamic is in place, and apply it to your
business?'

Do you understand that? And if it means get some cool art, get some cool
art. Talk to Spar, he'll make you a deal. Get some cool experiences. But
the point is, get it, and translate it to whatever business you're in. Dan?

Man 18: So it's 'Why we Buy: The Science of Shopping.' We got a table
full of guys and we just said, 'What's the big deal?' You need something,
you go buy it, you go home. (Laughter and applause) As it happened,
some of us at the table had also read the book itself, and we got in a
conversation about one thing that jumped out at us, and then one deeper
understanding. And they talked about transitioning. And I'm not sure if
this is in the summary or just in the book, but transitioning is - let's say it's
a supermarket. Someone has to make a transition from the experience
they were having in the parking lot to the experience they have in the
retail environment.

And most supermarkets, soon as you walk in the door, bam; there is their
big display of the single one thing they want you to buy the most of, but
meanwhile, you literally don't see it, because your eyes are adjusting to
the light, and to the sounds, and seeing where the people are, and you're
trying to remember where your shopping list is, and did I lock the car? And
you literally walk by their prime piece of real estate, and Underhill, the
author, said, 'Six feet back, minimum.' And so we talked about
transitioning, and that led us to our little a-ha experience, which is that
some of us believe that any business should create the environment that
your product promises to deliver.

Jay: What’s that mean? Give me an example.

Man 18: If it's in a supermarket and you’re selling baby lotions and
powders, it should feel like this; it should feel like a hug. It should feel
safe, with soft lighting. And if it’s the part of the store that sells motor oil,
it should be for us guys. And it's okay if the lighting is harsh and we got to
reach for it. That's the big one.
Jay: That's good. I mean, if you talk to Spar; where are you Spar? If he
shows you - Spar, does lighting have anything to do with anything?
[Inaudible reply [10:53] (Laughter) I don't know, does she? Where's the
control? Turn the lights off the art for a minute. Show them - at my home,
God bless him, he came in and said, 'Jay, I love you but your lighting
sucks.' And I thought, 'I’m not going to put lighting, that's changes my
room; costs money.' He put lighting in it; it transformed the look, the feel,
the comment. And this is stuff that may seem subtle, but we're talking
about leverage, you understand?

300% here, 25% there. I look at business, no matter what you sell as a
balance. And all things being equal, you weigh every impact point, every
lever, massively in your behalf. guess what? You win, and the other i.e.
competitors, lose. Thanks.

Man 19: Pardon me for interrupting, but there’s no movie that’s ever shot
with no lighting, there's no great store that doesn't light their products
exquisitely and beautifully; no photographer that knows what they're
doing will never do a shoot without shooting in perfect light.

Jay: Spar took me on a trip to restaurants and he said, 'Look at the

difference…

Jay Abraham Mastermind Marketing 15

…with this -' and he demonstrated to me, because I appreciate leverage in
all forms, but I don't sophistication or the discrimination until it's - like
here I felt bad for Brain Tracey; we had terrible lighting on him. It wasn’t
our intent. I wasn't discriminating enough until it was too late to get a
spot, and it was a horrible disservice to him, but makes a difference for
everybody else. Think about that; not just linear and literal; what lighting
has to do with you - although if it does - in your business, but thinking
about leverage and all kinds of other avenues. Thanks Spar. Quickly, last
two.

Man 20: Sure. Mike [unclear 2:25], Fancy Fortune Cookies. I got out of the
book that basically women do 70 to 80% of all buying decisions, and so to
focus on the women. So this week I really don't want to talk to any guys
here...(Laughter)...I just want to talk to the women that have buying
power. And the men - the other thing; the men in stores just, like, power
through the whole experience of shopping and get straight to the product,
buy it; and women are much more into the whole process of looking,
thinking; and they also are much better, historically, much, much better
bargain shoppers than men. Men are upsold very easily, and women are
not upsold that easily.
Jay: Good. Thank you. Last.

Man 21: One of your key philosophies is the maximize and get
exponential returns from things that don't cost you very much, and when
they followed these 65,000 people through stores, they were focused on
subtle things, and analysing it, and what they found is just by changing
the position of a mirror, or making a little rearrangement of your furniture,
you get exponential results, and so that's where we're going, 'How do we
apply that?' It's to look at the little things we do in our business, and find
where we can make small changes; if it's how you answer the phone, it's a
headline, it's your copy. It's the subtle things that cost you nothing but can
double, triple, and like Jay says, 21 times your results. And that's what we
got out of it that was universal.

Jay: Thank you. Appreciate your - okay, some comments, and then we're
going to give you the plan for the next hour and a half. I want to address a
couple of issues. I want to do psychic housekeeping. I asked for some
feedback from people. And understand this; in all due honesty, and with
all respect, I don't purport to be a professional platform speaker. I'm
nothing more than a real-world, frontlines entrepreneurial, strategic
advisor and marketing expert who wants to transfer and transform you,
not just by what I know, but all kinds of wonderful people who normally
wouldn't be at a program like this, and if they were, it would be either in a
very static and a very superficial way, or they would charge you an arm
and a leg.

So I'm going to address issues just to respect and acknowledge you, and
I’m going to tell you about something wonderful and a moral obligation
you've got. I’m going to talk a bit about ethics, and then we're going to
get into stuff. I said, what's the feedback? First one is, days are long, and
most people appreciate it. I have a problem. Some of you guys have a -
not many - have a paradigm of a regular seminar, a more structured
seminar, and I could easily do that if I wanted to have you guys very
impressed, but very actionless when you get home. When I first started
doing training programs, I got standing ovations. Always. I had them
pretty reasonable on timelines. People would go home and do nothing.
Then I stretched and I did this, and they screamed and hated it and
thought I was trying to demonstrate a power play, sensory deprivation.
They'd go home and they had incredible successes and they appreciated
it. Their mind-sets were forever remoulded.

If you can't handle the pressure, or the heat, figuratively speaking, my

apologies, and feel free to go. But you are denying yourself a really great
life outcome. The meal plan; we tried to do the best we could, I mean, if
you judge it - it's like today I got four pieces of bad news, and I was behind
upstairs on things I was doing, and instead of saying - going into a tirade
of profanity, I said, 'Okay, well we'll make the most of that.' If you’re
judging it statically in the moment by your higher standards, knowing that
we at the last minute - we decided we wanted a meal plan so you would
have the opportunity for you to commune with everybody, and you
wouldn't be forced to sit wherever and you wouldn't be forced at the
mercy of the hotel, to eat whenever you could and miss the - if the food's
bad, I'm sorry.

Our intent is so great. And I also screwed up because I have a choice, in

the scope of forever in your life, of stretching 15 minutes and maybe your
pasta's a little cold, but I try to give you maybe a million-dollar
breakthrough. I don't really have to do that, and I'm not trying to be
difficult. I know it. I can go to my room; I’ve got people to call, I’ve got
people who want to meet with me and do deals that I don't have time for,
and I've got people speakers who would love to get off, but I want to get
one more, or two more insights and connections so I can drive you to
greatness. But I don't have to, and it’s not trying to feel -say Jay, 'I
appreciate.' I ;m just trying to give you a context. I apologize. My food was
cold last night, my omelette was rubber. I didn't care. I mean, maybe you
do, and I’m sorry, because I’m trying to give you something that will last
you your life, and I’m just trying to give you perspective.

“No schedule issue.” Would you like a schedule; that I told you what I
wanted you to do, that I couldn't comply with; would that make you
happy? (laughter) Because if you do, I can tell you right now what we're
not going to do for the next two days. (laughter) Would you like to know?
Or do you trust me to monitor, to adjust, to do the right thing? Anyone
who doesn't - again, i love you all. I’m really in a mellow mood. Man,
swear to God, strike me dead. But I’m here for the people who get it. I
used to do, when I had complaints, I would change my whole emphasis to
win over the dissidents. Excuse me. And I found that I stole from the 95%
that got it. That I saved a hundred grand in money. (Applause) No, I can't
do that anymore. If you don't get it - like, Rick, somebody said five people
left because it's too cold. And I thought, 'How tragic for them.'

First of all, I’m moving so I don't sense it. If you're really cold and you
don’t; think I’m sensitive, all you have to do is gauge the audience and
come up here and ask me, and if I took a vote, 95% said, 'Man it's great.' I
would say, 'Here’s 20 bucks; I'll buy you a sweatshirt.' But if you're such a
closed-minded, rigid, myopic, linear and anal person that you got to get
mad and to think. 'Taking five grand out of my pocket one time is going to
really punish me,' hey go home. It doesn’t matter.
What matters is are you getting it? And if you don't get it you're in the
wrong place, and I mean that with all due respect. But I’m sensitive - help
me, because I don't sense it. It's not me trying - I don't get it. I’m here
moving around, and the lights are hot. If it's cold there, take a consensus
and I'll adjust it. If it gets too hot for me, I’ll ask permission to get it down,
but this is about working together. If you don't get that, you don't get
what I'm all about, and I don't want your money. Frankly, i don't need it.
It's about you guys, honestly.

“Music too loud for breaks.” (Laughter) Let me give you a context. I don't
usually use music. I wanted this to be a defining experience, so I got
serious and had all this music brought in, and the other night i was up
until two in the morning listening to music, and I called my wife and woke
her up and said., 'This is amazing.' I don't know how to dance. I’ve got a
natural desire but I go on the floor and step on everybody's feet. And I
said, 'I’ve got to tell you this; I'm listening to this music and I'm moving
around and I’m having the greatest time, and I don't think I'll sleep. This is
cool.' I’m getting really elevated, and I though, some of you don't get it.
Go outside. It moves you; it gets your psyche going. If you don't like it,
don't enjoy it.

But I think it gets you in the right mind-set to change your paradigm.
(Applause and cheering) “Who is Rick Duress?” Rick Duress is a colleague
of mine; he's been to ten programs, he's involved in a bunch of activities
with me, he is trying to become an extension of me. He has masterminded
a lot of the integration, been with me for all this, and he's a very bright
guy and he cares like hell about you. Lighting - hey, we’re learning. I really
am; I’m sorry. Pointed out, instead of criticizing, constructively help me
make it better. Somebody came up and said, 'Do you mind if I send you a
big list of stuff that I think you could do better?' I said, I'd appreciate it,'
because I'm in the ozone man. I don't do these things anymore, honest to
God; and the ones I do are 25 grand, and if you came - who's been to a
$25,000 one? Or a $15,000 one? Or a $20,000 one? This is a hell of a lot
better, isn't it? Am I trying hard to improve?

How long we got to go? I’m a work in process, aren't you? So help me, but
don't - criticizing constructively, helping me make it better, is the answer.
And that’s the answer for you. "Artwork is beautiful" It is isn't it?
(Audience replies 'Yes.' Applause) You should see my home, it's
transformed. And again, I had him bring it and God bless him, he legged it
all out of his home. It is for sale, you can buy it, and he would love that.
And I encourage you; if you got - the only problem with it is makes
everything else in your home look tepid. (Laughter)
I got one, then all of a sudden I’ve got five, and - can you guess which
ones are mine? i could tell you. We'll tell you on Monday. And God bless
him; he was up until 3:30 in the morning putting them where they were
the best to - because Spar understands the power of transforming the
feeling, the mood, the dynamic, and then lighting them. "Feedback due to
computers." Okay. We're trying to accommodate you; every time you
change tables, and the whole balance electrical thing gets changed, it
screws up everything. Do you understand that? I can eliminate that
complaint by saying turn your computers off and don't plug them in, and
it's not a problem for us. It's easy. then the balance will be great. You can
hear everywhere. But I can also say, 'Don't change table.' I'll turn into a
lecture-based.

Now, you guys are wonderful about it but you don't appreciate what
you're getting if I don't explain what it's costing us to do. And that's a
lesson; it's an object lesson that you should take in your own world. People
can't appreciate what you're doing for them if you don't educate them.
You can't be hearty about it, but give them a context. The ones that get it,
get it; the ones that don't, don't.

By the way, is it too cold in here? Raise your hand if it's too cold. Raise
your hand if it's okay. If it's too cold for you, and you want I'll get a fun - by
the people who are comfortable and we'll buy you sweatshirts. (Laughter)
I don’t mean that to be rude. I'm trying to balance. If I get real cold, I'll
turn it down, and it may sound like a power - only because I want to make
sure my mind is in best interest for you. [Inaudible comment from
audience 2:40] Okay, move around. Yeah, I mean, look around, because it
is - use good judgement; move to a warmer spot; and I'm serious, if you
need to we'll get you a sweatshirt or I'll bring a cover down from my room.
Serious. I don't care. (Laughter) We want you comfortable but we're trying
- Okay the last thing; "Too much information." (Laughter)

Okay. Trust me on this. Stop trying to figure it out. Don't try to

intellectualize it. Just experience it and let me layer it, because everyone
of you will get the breakthrough you need at the proper point; it will come
with different people doing different things. Try to extend yourself. If you
say, 'I don’t like that,' then you don't get the whole gist. I'm trying to
engineer a paradigm switch. I am trying to create funnel vision. I'm trying
to get you to travel outside your rigidity. If you complain about it and don't
try to examine and observe and consider alternatives, including
uncomfortable alternatives, which are the precipice of breakthroughs,
then you're losing and you’re limiting yourself. I can't change that but I
can try to explain it, so you'll be in the moment.
I can promise you - [unclear 4:02] will say, 'You got to do this, you got to
do that.' And I say, 'Yes, if you help me,' And you say, 'What do you
mean?' I'm saying I'll cover everything and it'll sequentially cover almost
anything you need, and if it doesn't and you ask the question, you'll get
the answer; and if I can't answer it I'll go to the marketplace and say,
'Who's already done that and can fill in, because I can't.' And if that
doesn't work, I'll get the experts. But if you don't open your mouth, you
won't get what you want, because it's not my problem. Does that make
sense? Anything else? Did I cover it? (Applause)

Thanks. Here's what we're going to do. For the next hour and a half, I got -
I did, quickly the three ways to grow a business model. I did it as service
to you because it's so profound. Di you all get it? That basically, there are
three key ways to grow any enterprise. Most people focused on the first.
The other two are where most of the leverage lies. When you do that,
you've also got to know your marginal net worth; you've got to know the
lifetime value. Because if you don't, you don't know how much time,
effort, and investment you can expend. An example; I had a client years
(audio missing).

Uh, they were in fluid transmission; PBC pipe that carried chemicals,
water, syrup; chemicals for manufacturing, water for irrigation and
agriculture, syrup for bottling. They wanted a breakthrough. I asked them
some questions they didn't know about - oh, by the way, we're going to
limit breaks so if you have to go, go, because I got to catch up. so if you
got to go; you want to go to coffee, you need to make a phone call you got
to - go. I mean, do it in the middle and [unclear 00:28] but we're going to
try to power through, so I can get caught up. If I go, I'll let Rick talk.

This guys came in, wanted a breakthrough. I asked him the most
important questions; 'What are the lifetime values, the marginal net
worth, elements of your business?' They didn't know. I explained it to
them. I don't have time to explain to you right now, but they came back
and they found that they had six sales people doing all of California. Sales
people were on commission; the commission was roughly ten percent of
profits. They found that the average - worst case, not best; and if you look
at it worst case, you'll always be happier, and if you look at it best case -
because worst case, you'll be conservative, best case you'll be
disappointed. Worst case, the average new account bought first time - I'm
talking in just profit, you don't care about [unclear] sales. $200 worth of
profit. Worst case the average new client bought five times a year at $200
profit. Worst case the average client bought for three years. So the
marginal net worth were - every time they got a new client in, they were
worth $200 initially. $200 times five times in the first year; $1000. times
three years, $3,000, right?

Salesperson got ten percent of the commission. So first sale is worth 20

bucks, right? I said, 'Well now you know that...' They came back with that;
I said,' Oh God, this is going to be a piece of cake.' They said, 'What do
you mean?' I said, 'I want to tell you in a nutshell how to transform your
business.' Because I found out the salespeople weren't really doing a lot of
new account development. I said, 'Go to your sales people and say, "As
long as you keep your current production at or above par," meaning if
you've been doing $50,000 a month in your territory, as long as you keep
doing that; adjust it for seasonality, every time you bring a new client in
we'll give you 100% of the profit on the first sale.'

And they said, 'He's crazy. You think we want to give away $180?' I said,
'No, but I think you'd be very willing as an investor to invest $180 you
never had for 90% of the $2800 more that you absolutely will have if they
succeed.' And I said, 'You've just made the salesperson 10 times more
motivated to achieve for you.' Makes sense?

I said, 'Take it home, look it at; it's not smoking -' Now I actually do feel a
little chilly, so turn it up - it probably wasn't but now I got psychologically
intimidated. (Laughter) Turn it up a couple of gradients. somebody,
please.

And I said, 'Go back and try.'# We'll make a long story short, they did it, it
worked. they increased sales 600% in 6months, just by getting that piece
of the puzzle. When you understand the marginal net worth, the lifetime
dynamics of what somebody's worth to you over forever - it cannot just be
a buyer, it can be a prospect - you realize how much more you can put
into the investment of acquiring them, or transacting that first sale,
because it's only a strat3egic element in the whole process. Very powerful
concept. Very powerful concept.

Okay, you get the three ways to grow a business? Okay, we're going to
power through 25 or 30 tactical elements that represent all three
categories. Rick, are we ready? Do I have the tape? Did anyone find me - I
heard we lost the Patty Lund tape. Did we find it? Yes, no? Is it here? Do
we have it? Yes, no? I asked for it by 10:30; is it here? Okay. sounds like a
heart being rushed. We had this tape to play, but nevertheless, go ahead.
The first way we're going to go - start with very predictable, universal
ways to grow more clients.

Okay, first, Rick - (sings a tune) Okay, he's booting up. Want to shake your
booty? Put on shake your booty, for me - go ahead, while he’s booting up.
Shake your booty? (Laughter) No, I’m serious. (Laughter) Why not?
(Audience says 'Yeah.') Yeah, we'll dealing the breaks - if you've got to go,
go, but we're just going to power through. Play Shake you Booty, but we're
going to start the moment he gets booted up. Or the moment the record
stops. Or neither if we don't do.

We're a seamless organization. Precise in every way. Having fun? Good.

It’s fun isn't it? Good. I’m glad. Hot. Yes? Would you like me to explain it? I
can explain it, I can explain it. And I will. Did you find it yet? Okay,
[unclear 5:00] it’s on the CD that nobody needed, up in my room. Forget
it. No-noes got it.

Okay, we are a pristine music machine. Got anything like that? In my new
desire to be a musical impresario, it's not executing exactly perfectly.
(Laughter) That is not what I want. I want the 25 strategies under the
three wings. What are my options? Yell, and scream and throw a tantrum?
(Music plays) what am I going to do?

We were saying before our technological and musicological

interruption...onward, team. So we got three ways to go to business. We're
going to go through quickly but imperially, because we're going to have
people come to the mike, stat. When you go to the mikes, quickly. You got
to tell your name, the generic type of business; don't give us a big
advertisement; how you actually do or have applied what we're talking
about in your current or a past life. Got it? Okay sit. Okay, Rick. These are
the three ways. Start with how to get more clients.

Number one; to increase your lead or enquiry generation you can. Number
one; develop referral systems. We talked about it yesterday. I told you
there's 93 ways to do it. I told -give me a concept, give me a context. You
have a moral obligation, if you operate at a high level; and I will do the
strategy pre-eminence before the day is over. I should have done it earlier
but I got to get through some of this first. You have a moral obligation to
encourage and systematically generate referrals, whether you sell them or
not. Why? Because I have a deluded belief that you care more, you give
more, you have more expertise to contribute, and if anybody who is a
client of yours - let me ask you a question. Anybody here have a best
friend? Raise your hand. Men, women; if you have a best friend, and you
best friend has a father, mother, husband, wife, child, employer,
employee, neighbour, pastor, colleague; that is important to them, and
they were getting ready to make a buying decision, or a life decision or a
critical business decision about anything that you possess really
meaningful expertise on, would you think a moment about extending
yourself to them? Even not in the business life.
Let's say you understand all about re-doing, re-modelling a house and I'm
your friend and I’ve got a - my mother wants to do it and she didn't have a
clue. Wouldn't you make yourself available to really give my mother every
piece of balanced, well-reasoned, expert, experienced advice you could,
just to help me make the best decision of whether to do, how to do it, who
to choose? Yes? (Audience agrees) And if you didn't, wouldn't you feel
terrible, if you could have saved her from making a mistake, or from under
- from getting a lesser of an outcome, or getting a nightmare result, right?
Yes? (Audience agrees)

We have the same moral obligation to make all of your clients aware of
the fact that because they are a valued client of yours. That you are
always there willing and open to extending yourself you anyone in their
association. Client - you got to define who it is. Relative, co-worker,
employee, neighbour; who needs to get an expert perspective before they
make a tragic mistake. And you’re always there - and it should be great if
they buy from you, but you don't care. Come and talk.

Now, that's a very sell- now, I used to - I give you stuff very [powerful that
I've simplified down to very elegant simplicity, but what I just said quickly
and what , thank goodness is preserved on tape for all of you, is a
transformatic insight, if you run with it. How many people in this room
have a - raise your hand - that have at least one formalized, powerful
referral generating system that is just killer, that has been working in their
business, and is just so neat that it’s transformed your business - raise
your hand; go to a mike right now. Your job is, in one or two minutes, to
explain what the system is, the l=key elements, what make it work, and
the three or four things anybody in this room need to know to apply a
variance of that - a variation of that to their business; and this is killer. I
would take so many notes if I was you. Don't give us a big ad for yourself;
I want to get the most people down. Be thankful we're going to tape it;
thank you for doing it; opening up. You're giving these people three or
four great ideas they can run with, but you got to give them a context of
how it works for you. Go.

Man 1: Kevin Donelin; my business is Guaranteed Resumes. About six

years ago, following Jay's advice, I figured out how much I was paying to
get clients anyway -I worked it out. My Yellow Pages ad cost me about $30
per client, so I started offering $10 referral reward bounties to new clients.
Anyone who bought in a client got a $10 check from me. And there's no
limit to how much money you can get.

Jay: Okay, so I need you guys to do one thing - going to change the rules.
Quickly, because I got to make it fast. Tell what it's meant to you in
dollars, what the impact is to you, in either dollars or lesson of something
else, and what the two or three lessons and action steps everyone should
get from that. And if your life depended on it - what I said to Frank. If your
life depends on it - are you married?

Man 1: Yes.

Jay: Do you have children?

Man 1: Yes:

Jay: Are you madly in love with your wife?

Man 1: Most of the time. (Laughter)

Jay: Well, we’re all that way. Is your wife here?

Man 1: She's not going to be listening to this tape either, there’s going to
nix in that happening.

Jay: Okay. Let's say that ewe have her hostage. She and the kids are
bound. They're gagging, they're choking, their hands are tied. We're not
doing anything really we shouldn't be doing, but it's pretty treacherous
there, and it looks like they may be goners, unless....in the next minute
you can explain to everyone in this room, to their absolute clarity and
certainty, the three or four things they need to do immediately so they're
going to be certain of getting some of the greatest referrals on a constant,
continuous basis. Go. And your wife and kids are in the offing.

Man 1: It's made over $100,00 for me in five years. You're already paying
for clients anyway, when you work it out; do the numbers. Why not give
that money to the clients as reward incentive?

Jay: What should they do? Is that it?

Man 1: Yeah, tell...

Jay: Okay, good, thank you. Next.

Man 2: There's a couple of different ways that I focus on getting...

Jay: Give me just one.

Man 2: Just one. Okay. Letting my prospect be smart and helpful.

Jay: How?

Man 2: I tell them. while I’m filling out the order form; I don't wait till
they’ve worked with me yet, I just right from the start keep asking, and I'll
tell the, - most of the people that I work with can think of at least three
people - so I put out a little bit of a challenge there, and then while I’m
writing out the order form, I say, 'If you could just write out the people
that fit the following criteria,' and I give them what the criteria (audio
missing) referral, that I believe they’ll know that person. And then while
I’m writing, they start writing down names and looking through their
Rolodex, through their Palm Pilot. If they’re coming up with lots of names, I
start to write the order form very slowly, because when I stop, they stop
writing. So as long as they're writing, I keep going.

Jay: What's the lesson to everybody?

Man 2: All your clients definitely know people. They're just not always
sure that they know the right person, so just put out a challenge that they
do know them, the other people know them, and then if, you've positioned
it properly, they will give you three, if not six -because most of them are
going to want to do better than what the average person does.

Jay: Thanks. Will.

Man 3: I have a trade association and two years ago i came here and was
at one of Jay's seminars. And what I realized was that a lead had a certain
cost, so I figured out what a break zero point was. So every time a
member joins, what's the cost? And then, I started a program where you
recruit through your memberships free. So it gave me a break even year
one, but year two it made me about $360,000.

Jay: So, lesson?

Man 3: Lesson is to give a benefit that's big enough to get people to refer
to you.

Jay: Thank you. Next.

Man 4: On the Internet it's very easy to track where a customer comes
from, and we decided to put a financial reward on a referral. And we talk
here a lot about clients have - referring people, but we go to other
businesses that complement our business...

Jay: Like? Like what?

Man 4: Like we are in the web hosting business, and they, for instance,
provide information on how to improve your website, so they're high
traffic sites, and our target audience, and we have them put a personal
recommendation for our business.

Jay: Good. What's the lesson?

Man 4: The lesson is don't be afraid - look further than your own clients.
Go to complementing businesses.

Jay: Good. Thanks. I’m going to really hurry, because I want to get all of
you. Go.

Woman 1: Hi, Pamela [unclear 2:05], Sand Diego. I’m a real estate agent,
and I got together with another agent who refers me - I get all the buyers
lead off of his for sale signs. They call an 800 number; I get the leads, i
call the people, and I give him a referral fee for it. so that’s generated all
the leads for me, and then probably, off of that, once I get the leads, give
him the referral fee. Off of that, I get all the other clients from those
people too, so it's like the whole tiered effect.

Jay: What's it mean to your income?

Woman 1: Income is probably anywhere from 50 to $100,000 additional,

on top of it.

Jay: Lesson for everybody here?

Woman 1: Don't just think that - I guess, one referral and go with that
person; go further, because it leads to another to another to another. And
the other thing is , the lender that I give them to, then refers clients back
to me, because I'm giving him the business, so it's both - so it's all free to
me, basically.

Jay: So it just perpetuates - good. Thanks.

Man 5: Brian Frank with Endurance Marketing Group. For a long time, we
had almost no referrals at all, even though we had tons of satisfied
customers. Their desire to keep their competitive edge secret presented
them from doing that; from telling their friends and competitors about the
products. So we started bribing them. And basically just offered them such
an incentive that it override their desire to keep their edge a secret. And
so we pay them 25% of every new customer who they bring in the door,
as well as giving the new customer a 15% discount.

Jay: Lesson?

Man 5: The lesson is that if you have a situation where you have satisfied
customers who are not referring, and..

Jay: Stop. Does it make an economic difference to your business?

Man 5: Huge.

Jay: How much?

Man 5: Around 40 to 50% of our new customers...

Jay: What' that in dollars?

Man 5: Well, it's about 1000 customers a year, half a million dollars a
year in extra sales.

Jay: Again, the lesson?

Man 5: The lesson is, is if you ask for referrals and you don't get them,
bribe people. Make it work...

Jay: Ethically. Ethically bribe people. (Laughter)

Man 5: Absolutely. And tell them what they're doing; tell them their
friends' going to get a deal, they're going to get a deal, and make it fun.
We take care of all the accounting; we keep track of how much credit
they've accumulated through tier referrals, so every time they call up, it's
kind of like they get to discover how much credit they got into their
account, and think, 'Well, how much do I have? Can I spend on product?'
And so we've made it fun and it's working really well now.

Jay: Good.

Woman 2: I'm Juliette Eastern with Travel White Incorporated. We offer

natural health and parenting solutions online. We basically - it was an
obvious thing. We asked people to share our information and products and
websites with their family and friends. We asked them their aura
combination...

Jay: How do you ask them? Gimme - just real quick, in 30 seconds.

Woman 2: Order confirmation page, email receipt, the information packet

they get with their order...

Jay: So you do it in many different - touch points. And what happened?

Does it work?

Woman 2: Yeah. We've got about 10% of our business is from that. About
75-100 a month in...

Jay: What's the lesson?

Woman 2: Lesson is, ask - do the obvious and ask people to share you
with their family and friends.

Jay: But ask them because it makes better sense for them. Is Shad here?
Is Shad...her? I can't remember Shad’s last name; she's got - is he? Is he
here? He’s got this - I got to share this because it's killer. It's like 80% of
his business. He sends out a letter - he does herbal cleanse for your body,
and after the 60 or 70 days when theoretically you got the impact, he
writes and says, 'Now it's your turn to do something meaningful for
somebody important to you.' And he gets 70% of his business just by
doing that. It's not hard; but it is hard if you don't do it.

Man 6: Joel Christopher, with [unclear 5:36[ Builder.com. My business is I

help people build up in lists, so this referral system is a two tier affiliate
program on the Internet, and I take it to the next level by going for the
super-affiliates, because the five over 96 rule works on the Internet, where
only 5% of my affiliates are really doing something great. So what I did
was I rewarded the top five affiliates with higher commissions gave them
higher product samples, so they can endorse it to their list, so..

Jay: Lesson?

Man 6: Lesson is instead of going for the big numbers, go for the small
numbers with the big lists, and that will catapult your business massively.

Jay: Okay, good.

Man 7: [Unclear 00:18] LTA Media. We put a lot of emphasis into

developing a high quality sales program together - a 30 minute show that
we run on radio whenever we put a new product up. And once we've
tested it and the show finally hits, and we roll out with it, the thing is that
we've found that as soon as we started, we decided what we would do is
throw a copy of the program in with the shipped order. And then
encourage that, you know, if you're as excited about this as you've heard
in this show, this might be difficult for you to explain to someone else;
here, just put the show on. We put a unique telephone number in it, so
we're able to track where that show comes from, and who buys from that
particular disperse tape in there, and it makes a big difference.

Jay: Lesson?

Man 7: I don't know, you could see - well, I guess - I don't know, I think
that if you're already putting your emphasis into a marketing strategy, it
may be to give your customer a good tool. Sometimes they want to refer
to somebody, they want to help, but sometimes just give them a good tool
that'll help them explain.

Jay: Thanks.

Woman 3: Tamara Campbell; I’m a chocolatier; I make healthy, intelligent

chocolate. We also are provider of...(Cheering and applause)...thank you.
We’re also a provider of a food that is very life changing, really works on
the person's mind and their brain. We implemented a program that was
very good in - I trained this to our tele-operators from the very beginning,
that even when we did follow-up calls, we asked 'Could you refer?' But I
took it one step further, and when we did the initial sale, I asked them for
the referral right then. And the way that we do it is I say, 'When you
experience this food and it changes your life, perhaps you can share it
with someone else that you care about, and if you do that, I’ll be happy to
give you a free bottle of this E3 Live the next time you order.'

So they're motivated from the very beginning; they're endeared to us,

because people like things for free, they like to help other people. So in
essence, for us last year, it made a difference of $600,000; a little over
that; to our bottom line.

Jay: what's the impact, Tamara?

Woman 3: The impact is that we have exponentially grown our business.

And I can tell you one thing for instance. Last week, I had one client call. I
ask who their referral was. The number one thing we do is say, 'How did
you hear about us?' and we keep track of it. I had one client call last week,
asked who their referral was. I tracked it all the way back to the original
referral; it was 14 levels deep. That meant a total of $1800 to your
company.

Jay: That's important. Great, thanks. Also, it's - I love your stuff, and I take
gobs of it. I helped them; intermittently I get paid in stuff. Michael and
Tamara are really cool people. If you want to try it, they'll send it to you for
the cost of shipping it, and some people get great outcomes; some people
get headaches. I’m not passing judgement on it, but it's really cool stuff
for me, and you might want to consider it. And I don't benefit a dime for it,
but they're pretty cool people. Thank you. [Inaudible comment 3:35] It's -
they're here, Michael’s here somewhere. Where are you Michael? Well,
you saw Tamara; Tamara's the good-looking woman with the glasses. Go
ahead.

Man 8: My name is Muhammad Hussein; I own a small printing, copying

and typesetting business. I have used a mixture of several processes such
as bartering and risk reversal. And this has netted me an enormous
referral that netted us $380,000 contract. We started as a small company,
which was about 230 - 250,000 sales last year, and now we are looking at
half a million this year and possibly taking it where the next level - or the
level of referral we're getting, we're getting into a level that will take my
business to about $2 million.
Jay: Good. You guys understand - excuse me for interrupting. I'm doing a
lot of time on referrals because it costs nothing, makes everything, higher
quality, more profitable, nobody does it, this is worth 10, or 100 or 200 or
2000 times the whole investment if you do anything with even one of
them, so it's probably worth a little bit of time, don't you think? It's
probably worth a few notes. Few notes. Thank you. Action to them? I was
talking over you; did you give them what they should do? Did you tell
them what they should do?

Man 8: Well, if one system doesn’t work, try another system. or a

mixture.

Jay: Good. Thank you.

Man 9: Hello, my name is Brad Chestnut, with Insurance Automation and

Marketing Consultants, and the insurance industry is a pretty close knit
group of people, and I knew that to really hit it effectively within that
industry, you had to have referrals. You had to have people working for
you. One of the objections I got tired of was 'Let me check the system out
first, let me see how it's working, then I'll give you names.' So what we did
is we took a different approach. We built the referral program into the
sales process. So right from the get-go, we're telling them, 'We're going to
prove to you without a shadow of a doubt that our product's going to
create the result you're looking for, it's going to meet the needs,' and so
on and so forth. 'And for each referral you give to us, at the time of the
sale, we're going to take a discount off the purchase of the system. Then
for each one of those that actually buys the system, we built on top of
that with - we want people to give us a lot of referrals, so the more
referrals they gave us, the more money they got.

Jay: What's the impact been to your business?

Man 9: That's really how I built the business initially.

Jay: And how big is the business?

Man 9: Well, I’m just a segment of that piece of it which is representing

software program for another company. I manage a 12 state region, and
this region, I took it from nothing; a virgin territory to number one region
in the nation.

Jay: How much volume?

Man 9: Around 250-300 a year.

Jay: Okay, but very significant.

Man 9: Oh yeah, for this - just 12 state region.

Jay: But what's the impact to this audience? What do they do?

Man 9: The impact to them, is a lot of people again, are asking referrals
after the sale's made. By building into the process, first of all, brings out
objections, that I think are very key to helping the sales cycle. It trains
their mind that you're going to be asked referrals, and that you believe in
your product enough to get the referrals.

Jay: Good, thanks. As quick as you can, but as complete as you can. Also
the financial impact; because I want you to realize, just pulling a few of
you, it's like millions of dollars that you’re learning about in one fell swoop,
that you can translate apply, extrapolate, import over your business. It's
pretty exciting if you get it.

Woman 4: Leah Francia. I’m a life and health insurance agent. And I
specialize in long-term care insurance. So what I decided to target was
what can I get the biggest impact on without spending money? Any more
money? So I found that it is referrals at the point of sale, or even on the
phone. So what I decided to do was, I did an experiment. One part of the
experiment was asking for referrals because it was the right thing to do
for me and for them; to give referrals. And also, on the phone. and then I
did another experiment, when I offered them $100 to their favorite charity.
I would donate $100 to their favorite charity, for every one of their
referrals that did take out long term care insurance. And what I found is
that the $100 didn't make any difference at all. When I didn't offer it, I got
more referrals than when I did offer it.

Jay: Lesson?

Woman 4: The lesson was because it was from my heart, that I felt that
what I had to offer was valuable. They felt what I had to offer was
valuable. The impact on the business would be on even the first live, is
like 300,000 a year, and that's without even spending a dime, and not
even asking for referrals every single time.

Jay: Great. Thanks.

Man 10: My name is Alan [unclear 2:54] and I’m the developer of the
system that Mark Victor Hansen was talking about yesterday; Creator
Advancer Finance Executor for team. My system is quite different referral
wise, because it's about unintended consequences. What I did was I
created an idea outrageous enough to get people talking about it, and I
thought they would do one thing but they did quite another that’s worth a
lot more money. I created a one-book bookstore for my book, with
different departments; art. anthropology, fiction and literature; but my
book in every department. (Laughter) I thought people would buy more
books, but actually what they did was they bought enough books for the
store to break even, but I was getting $10-15,000 a month referrals for
speaking engagements. They would say, 'You're crazy, will you come and
speak to our company?' (Laughter) Lesson was, do something different,
get it out there, and people you don't know about will start talking about
things and they will have heard of you, and that's an enormous...

Jay: Great. Thank you.

Man 11: Tom St. Louis, marketing strategist from Toronto. I've worked with
a lot of people n referrals and I found a fatal flaw in all the referral
systems. And so I created a way for people to get a hundred referrals at a
time. And the simple distinction is that when people ask for referrals, the
person that they're - I mean, whether we do it before, during, after, later;
whenever; the person they're asking can only think of what comes to
mind. Okay> 'Oh let me think of whoever I can think of.' So what I’ve done
is I’ve said, 'Well why don't you choose your very best customers and
stage it. So you say, - 'The way that I’ve helped you, would you be willing
to share that with some other people?' 'Well, sure I will.' 'Why don’t we get
together and we'll discuss that and maybe we can help some of those
people out.' So you get together with them and then you reconnect them
with the value - you talk about the before - you get them to get back in
the state of glowing appreciation for what you've done, and then say,
'Well, you know, let's know find the names of the people who you'd want
to refer me to. Where do you keep them? do you keep them in your Palm,
in your address book, in your Rolodex, in your - okay, let's start with the
A's, and find all the people we can really help.'

And when they start with the A's - at first they're in a state of mind of 'Joe
Adams, no I don’t think so.' 'Oh why not, is he a business owner?' 'Well, he
is but...' 'Well, let’s put him down,' and then they get into a state of
momentum, and all of sudden they get super excited by the time they get
to the D's,. the E's, the F's; and you can literally get 100 referrals or more
in one meeting, if you stage it right.

Jay: Good. Great. Thanks.

Man 12: Patrick Corbit, Executive Leadership Group. Everything we tried to

do is maximum best use. One of the things (audio missing)

are trying to - people always go, 'I don't have their names and numbers
right now, get back with me,' or then I used to come back to them 30 days
later and say, 'Could you give me a name or a number.' And it - what I
found out was two things. One, I always told them, the day I signed them
up, got them enrolled in whatever we were doing, I said, 'Hey, bring out
you address book, I want to be able to give you the name of our corporate
officer customer service, right now.' So they went to get their [unclear
00:22] or whatever, and when they brought it out, they already had all
their names and numbers right there. And that's when I asked for them
there. Eliminated that objection real quick.

And then also learned that you always had ask for it at that time, because
they're best pre-disposed...situation in their mind to be able to give
referrals. I could never get them if I came back later, so I always asked
then, and I always got them in a place where I could ask them at the right
time. System worked all the time; allowed me for two years to work
strictly, 100% referrals. Lesson? When you find something that works,
teach it down.

Jay: Good. Good.

Man 12: You got a lot of people that want to know; you've got to pass it
down.

Jay: Everybody take your pen and write on a piece of paper the letter T -
big T; the letter N and the letter C. And who would like to guess what that
stands for? What did you say? [unclear 1:15] Constantly. Take notes
constantly. This is not really - I mean, people don't get me really, very
deeply. Everything I do is very strategically integrated for a purpose.
Being able to consolidate in two minutes an essence that's generating
$500,000, a million dollars, $5 million, $50,000 extra year, and listening
really quickly to 40 people share with your ideas that probably won't do
exactly that for you, but if you got it - you'd be able to use three or four of
them, and one's worth half a million to them; it's only worth 100,000
grand to you; but that’s on the first stage and you have clients that buy
often and more, and they keep coming back and compounding. T-N-C.
You're never in your life going to have an environment where 650 people
are bought together and are so willing to open up and share intimately
and go out of the way to consolidate and demonstrate; and then direct
you to how to do more and better than even they are. T-N-C.

Woman 5: My name is Shera Street; I’m Spar's mother. The thing that -
(Laughter and applause)

Jay: And you're a very talented artist in your own right.

Woman 5: Thank you.

Jay: Are you proud of your son?

Woman 5: Yes.

Jay: Good.

Woman 5: What we do at our retreat, Serenity by the Sea and Serenity

Transformational Tours, is we have a high impact heart connected card
that we hand out as our guests are leaving, and say, 'Would you like one
or more to - or as many as you'd like to take to pass on to people who
might enjoy what we're doing?' And they go home with a whole bunch of
cards, and we know that they're put on refrigerators, and on computers,
and...

Jay: And does it work?

Woman 5: It's working, and we're here to learn how to help it work a
whole lot better.

Jay: Good, thank you. Spar? You know that woman, is she an imposter?

Spar: She's the coolest mom in the whole world. (Audience says 'Aww.'
Applause) Maybe my wife would be the second-coolest woman...
(Laughter) If you've seen the little 9 week old baby that's walking around,
that's mine...[unclear 3:38]

Jay: I want to know who modelled for that picture over there, Spar.
(Laughter)

Spar: Shh.

Jay: Sorry. Go ahead. I took Jay's PEQ Cubed a few months ago, and Scott
Hallman, who's going to present later, was questioning me on how I got
my business, and I said, 'Well, one of the things that happened -' I’ve a lot
of high-end, beautiful homes that my art is in.' And one of the clients;
11,000 square foot house, Rancho, Santa Fe., 9 acres; exquisite home; he
said, 'You've done 13 paintings for my home. Would you do an art show?'
And I went, 'Yeah.' (Laughter) And so we put on this show; 250 of his
friends, which are, let’s say 30-40% of those were also high net worth
individuals, came to this show, and I ended generating a significant
amount of business as a result of that. Several hundred thousand dollars.
Jay wants me to be specific. I was sitting in the back going, 'I don't want to
tell anybody this,' because it was easy.

Jay: I doubt if your - but your job is to train - we're here to openly share;
that's the way people will share back.

Spar: So Scott's asking me, 'Well, did you ever do it again?' (Laughter) And
I went, 'No.' And I was like 'Duh.' (laughter) I love that. And so I just - it's
worth so much to have your clients fall in love with what you do, put on an
event. If you - I’m not saying me, but if you know an artist, you can put on
a show, you draw your clients in, they get to have some kind of interaction
that's intimate with you; you end up doing - you get an intimacy and
personal relationship with your clients in that way...

Jay: Great point.

Spar: ...that you wouldn’t get any other way. And it doesn't really matter
what business you're in...

Jay: [Unclear 5:53] much more sensory levels than you normally would in
your day-to-day endeavours.

Spar: Exactly. Yeah.

Jay: Great. Great point. Thanks.

Spar: It doesn’t matter what you're selling, there's a way you can connect
with them.

Jay: Great point.

Man 13: Chad Deferrari, with the CDF Media. And we're a web
development company in San Diego. And what we did for our referral
system was develop personal relationships. Rather than offer them like
20% of for whoever brings me the next client, we started off in the
contract phase of going out and saying - one of the ways we started
closing deals back when I was working out of my bedroom in an
apartment in La Mesa, was saying, 'If you can't refer me, then I didn't do
my job.' And it really sets a tone for the overall process, and immediately
they start thinking, 'Well, who could I refer you to?' And by the time
they're done, I get the clients that I want to get. I have a string of clients,
and a 98% retention rate of those clients. Because over the years I’ve
grown to love them; we send them the Christmas card, the candies, when
you need to, and you make sure you know something about them; and it's
a very personal thing.

In the beginning when we first started, I had sales guys that weren't
closing a lot of deals or getting a lot of re-orders, and what we determined
was I had a lot of sales guys that were simply selling, and going out and
trying to make the deal, but not necessarily the best deal for the client. So
we adopted a motto that I think has worked very well for us, which is 'You
can shear a sheep a hundred times, but you can only skin it once.' So now
we have a nice flock of people; a flock of clients that have worked very
well and continued our retention, and we’re still getting our clients.
Jay: Very good. Lesson?

Man 13: I offer them my continued integrity, and thank you very much.
And that's it; it works great.

Jay: Great. Thanks.

Man 14: Hi, Jeff Wilson, Wilson Advisory Group, Denver, [unclear 7:37]

Jay: Wait, but he's also a Saturday Village Person.

Man 14: Thanks to you. (Laughter) Huh. Okay, really having been through
the PEQ home study courses, what I learned; two quick things, which is
one; give it away, and two; that you have to be willing to take - to
establish the relationship and basically build that rapport if you want to
build an enduring relationship. So what I have done with my (Audio
missing)

...specific, and targeting who I’m looking for; make it very clear in their
mind, the kind of client I'm looking for, and as a free gift from my client to
the referral, what I have offered is a certificate which a value of $1295; a
free financial physical for their friend, relative, customer, whomever. In
the last six months, that has brought - and this is with sporadic
implementation, not ruthless process implementation. It's brought
$30,000 to the bottom line.

Jay: So, lesson?

Man 14: Lesson one is have a compelling offer for the referral to want to
meet with you. Two; to make it attractive for the referring source -
desirable for them to be involved in the process. And three; execute.

Jay: Good, thank you.

Man 15: Hi, my name is John Henry and I want to apply the referral and
host beneficiary concept to one of my two companies, called
Mailcastle.com. It's an email perimeter and a security company, that stops
spam - sorry, a lot of you - stops spam...(laughter)...viruses, objectionable
content before it enters your network.

Jay: I get it, okay.

Man 15: But what I did is, like last week I called up 6 network
administrators and I.T. consultants that have large client bases, and I
basically developed a program to pay them to pay attention. If they just
want to give me a referral, I have a small, little, trickling referral fee that is
sizeable enough over time, and the second thing is if they want to actively
help me enrol, I’m going to give their clients a free trial subscription to the
program.

Jay: Good, and have you done it yet?

Man 15: Oh yeah.

Jay: Is it working?

Man 15: I’ve got like 10 referrals in three days, last week, and it's easily
going to result in...

Jay: Good. What's the lesson?

Man 15: Lesson is, paying people to pay attention. It's going to mean
probably a couple of hundred thousand dollars in revenue.

Jay: That's great, thanks.

Man 15. Alright.

Jay: And point. Where did you come from?

Man 16: I'm busy taking notes. (Laughter and applause)

Jay: A point that I forget in teaching you what I’m all about, was that I
believing an optimal business/marketing strategy, and each one is
different. Your job is to examine - in optimization, you can’t perform at the
highest and best and maximum result and performance until you evaluate
all the options and opportunities and possibilities and alternatives out
there, and then identify and combine the best ones after tests have
validated that they work; that are appropriate for you based on your
ethos, your business model, your ideological mix; so you listen to people
saying, 'Pay them, pay them.' And people say, 'Don't pay them, don't pay
them.'

We used to do seminars - Mac was with me, and we would do seminars

where we'd have two totally different mail-order experts. One would say,
'You got to make it personalized; a live stamp, personally addressed.' He's
say, 'Have all kinds of copy streaming on the outside.' And both of them
were very successful. The answer is what combination gets you through
the night. You understand that? It's not the same for each of us, and it
may that one works better, but you don't feel comfortable with it; maybe
that your market - it's appalling to compensate them. Maybe to some
segments of your market, it's appropriate. Whatever you do, do it with
absolute integrity, and it will never, ever, fail you.
Woman 6: Hi, I built one of my businesses solely on referrals. I’m a
business consultant for international projects, and when I first got my
business started, I actually went to somebody that was established in the
field and let them know what I was doing with my business, and that
person- because they'd been in the industry for 30 years, and they
charged a higher fee; we actually set up a system where people that can't
pay the $1,000 for them, they actually are able to use my services. And
what's great about it is that one; this person that I’ve built the partnership
with, they actually do all the marketing. When the person calls me,
they've already been sold, and also it provides them a structure so that
they’re advertising is maximizing, and I give them a percentage of the
referrals.

Jay: Okay, lesson?

Woman 6: Lesson. Create a relationship with other people in your industry

that do the same things that you do, and find out what service they're not
able to provide to their customers, and see where you can fill it.

Jay: Great, thanks. Yes, mystery man?

Man 16: Yeah, it's Peter [unclear 4:49] from Kiss Me Cosmetics, and I first
really want to give you guys the result, because I - prick your ears up a
little bit, because I think with referral systems, everyone really is
somewhat intimidated by them, or not so comfortable, and then asking
them - and don't really understand the power of them. But this company I
was working with for many years, and it's a photographic studio, and year
after year after year after year, our whole business came from referrals.
They had a very good system. Basically, the customer acquisition cost
absolutely nothing. We didn't really pay for anything, and it kept - it was a
national photographic chain in the United Kingdom, and it kept thousands
and thousands of staff all in business; just from this one idea. But the
thing is, we was extremely aggressive in getting referrals. And you can be
really aggressive, and nothing terrible happens if you're not aggressive.
You can be really aggressive, and we really pounded people to get
referrals, and they didn't know; they didn't know what the game was, they
didn't know that - they weren’t allowed to give 30 or their friends and
family members out. They just kept on going.

I was extremely adept at getting referrals - I'll just give you the basic
process that I went through. Basically, I would sell these ladies a
photographic portrait plan. And then when they've decided to make the
purchase, I say, 'Right, and then what I'll do for you, Mses, is that we'll
give you a free enlargement. You'd like that wouldn't you?' They go, 'Yeah.'
So i say, 'All you have to do is give us ten names and numbers of your
friends, relatives and family who we can phone up.' So they'd say, 'Oh,
uhh...' I said, 'Don't worry about that, I’ll just hold on the telephone while
you get your name and address book.' So off they go; they come back.
And they're getting it; this one, this one, this one, and this one. And it's
like - and they’d be like, 'How many's that?' I'd say, 'Don't worry, just keep
on going. Don't worry, just keep on going.' (Laughter) 'Don't worry, just
keep on going.' I mean, I have to say, my colleagues - I used to get - the
average - we was told that we were supposed to get 10 referrals a time.
the average person probably got about five and then have to phone back.
I was so aggressive at this; I had more people than I could ever call - my
colleagues were asking to give them my referrals.

Jay: Tell them what would - how would you transact the scripting and the
dialogue of the call?

Man 16: Specifically?

Jay: Yeah.

Man 16: Okay, once they've made the purchasing decision, tell them that
you're going to give them something, and then make sure...

Jay: No, the call - the contact - how would you contact the referrer?

Man 16: Oh, the...

Jay: The referee. Whatever the word is.

Man 16: Oh, the referee, okay, great. I think Jay knows this one, don't you
Jay? Basically, we'd say, 'Look, your friend has just purchased this plan
and they didn't want you to miss out.' Which, you know, is kind of hyping
it up a little bit, but the thing is - because the photographic portrait plan is
an experience, so it's one of the reasons we're getting these guys to get
them in the first place. Say, 'Look, you can do the experience together
with your friends and family.' And so we'd have like all these women, and
they'd all be coming together for these makeovers and everything. So you
can be really, really aggressive. you can just keep on saying, 'Just keep on
going, keep on going, keep on going,' and they'll reel name after name,
after name after name after name after name. And hey, if it's the
customer that - if they've got a load of friends and they haven’t got any
money, or they're not quite right, you don't have to phone them, but
you've got the opportunity.

Jay: And when you phone again, the key to phoning somebody is, it's a
mind-set too. What's the mind-set?

Man 16: The mind-set of phoning...

Jay: When you're phoning the referral - the list.

Man 16: The mind-set is that basically they want to do it, and they want to
do it with their friend. And they're having this...

Jay: It's peer confirmation, peer confirmation.

Man 16: Yeah, absolutely.

Jay: That's great. What's the recommendation?

Man 16: What's my recommendation? You can be so aggressive. I don't

know all you guys but I’m sure the majority of people out here, they can
be aggressive times 1,000 in getting these referrals. It's not kind of like
some little meek thing where you just...

Jay: But the mind-set is not pushy, is it? It's consultative in saying, 'Hey,
they'll love it too. Are you loving this?'

Man 16: Yeah.

Jay: 'They'll love it too. Do you want them not to enjoy this? Is it right if
they get old and they don't have pictures of their family to reflect on?'

Man 16: Yeah, absolutely, it's just like - if these guys weren't going to buy
the plan in the first place, then they're buying it because they see value in
it for them. And if they see value in what you're selling them, why
wouldn't they recommend everybody that they know?

Jay: Okay, thank you. But before you leave I’ve got to make a comment. If
you can learn anything else, not just what he said, but listen to the
tonality, listen to the passion, listen to the enjoyment, listen to the
absolute delight in his voice. That's pretty cool. (Laughter) If you could
think about being evolving to that level, it'd be pretty neat. (Applause)
Thanks.

Man 17: My name is Taka [unclear 10:01] from [unclear] Inc. We're doing
business in Japan. We are a [unclear] service provider. Our referral system
is if the new clients sign up our service, we ask them their five referrals. If
they give us five referrals, we waive set-up fee. The lesson is POS - point
of sales. At the time buy your product or service, they are most excited, so
you should take advantage of that.

Jay: Great point. That's great, thank you very much. (Applause) Let me
tell you the good, the bad and the ugly. But first I’ve got to acknowledge
our resonant hero - just came in after going four or five hours of
intellectual battle with all of you - Mac Ross, I want to acknowledge you for
doing Herculean set last night. (Applause) My crap musicians need a little
bit of practice. We were going to make you feel special, but after the fact.
Dave, get with it. (Music plays) We appreciate you man, thanks. Speaking
with Mac, come on up here; I need you to help. Thank you. (Applause)

Do i have the - (whistles) - do I have the Patty Lund tape now? You can
turn it off now. Do I have the Patty Lund tape? Yes, no? Last time; do I
have the Patty Lund tape? Yes or no?

Rick: No.

Jay: Okay, the next time I ask for it to be delivered before 10:00, take me
seriously.

Rick: Yes, sir.

Jay: You guys will see only a few times I 'll be disappointed with people,
but if I ask it by 10, 10:30 might be okay, but 11:30 is not. Okay, here's
what we're going to do. The good, the bad, the ugly. I’m going to make a
couple of comments about some questions people asked. This is one of 25
things. Do you think I’m going to get through all 25? Do you think I have a
plan? (audience says 'Yes.') Do you think the plan’s going to be neat?
(Audience says, 'Yes.') Think you'll love it? (Yes) Do you think it'll transform
you? (Yes). It will. I'm going to quickly, with Mac's help, go through what
the 25 are quickly, before we bring Chet on. and God bless Chet, he's
been adjusted now from an hour and 45 minutes to an hour, and he's
going to have to move mountains, because he wants to give you his two
most powerful techniques. And he's a partner of mine in a bunch of
consulting endeavours, but it's really important.

But here's what we're going to do. We're going to go through quickly, the
remaining 24. We're not going to have time to go to the mikes, but we're
going to do the better equivalent. When we go through every one of the
24, I ;m going to ask who in this room has successfully - is or were or
have, successfully implemented a systematic version of this with
enormous results. You are going to raise your hand You are going to be on
the honor system at lunch, to make sure you are at a separate table with
a group. If I have 25, I’m going to try to get at least five or ten of you at
each table, and when you're done, move around.

And you're going to share your idea with each table, and each table's
going to vote on the most impactful, single idea, because that’s what's
we're going to do sometime when you come back in the afternoon, okay?
You get me? Yes? (Audience says, 'Yes.') And that's going to be very
tranformatic if you do it. A couple of other points. I got some letters. One
was from a real estate. 'I can't give money for referrals.' Who said that?
Can you give help? Where do you operate at? [Inaudible comment from
audience member 13:50] And you can't reduce your service fees on other
transactions? If you said to me, 'I can't pay you, but given the statistical
certainty that over the next three to five years you're going to either buy,
sell, or have a relative - and I can basically - I can…

Jay Abraham Mastermind Marketing 16

…reduce that fee for you in the future;' you can't do that? So you want a
couple more? [Inaudible 00:53] Okay. Number one. Number two, and this
is -we're going to get to risk reversal so I won't put - anybody who's got -
where's the attorney who said he sells an expensive product or service?
Somebody - first of all, one of the biggest ways I've grown businesses is to
find the influence - Chet's going to talk about the dream 100. I find the
most influential people and we buy them services. And we buy them
services with the understanding that if we do great for them, we know
that they're going to be in a position to want to refer lots of people to us.
And it has always grown massive business.

I’ve done them for cosmetic surgeons, cosmetic dentists; I’ve done it for
attorney's, I've done it for chiropractors, I’ve done it for massage
therapists. I've done it for all kinds of people, and unless you're filled - it's
like, my billing rate is 5 grand an hour, but I can trade. I can trade or I can
invest an hour or two. 10 grand of value, but if I do it right, it'll generate
100 grand or 200 grand or 500 grand of residual value. If you don't get
that, then you don't get what we're talking about. Yes.

Audience member: can I ask one on that idea? I’ve had that issue,
because I tried a referral, and I’ve got...

Jay: Wait, what's your - go - do we have a mike? Does mike work? Come
up here, I don't know if it works Okay, run to the back mike, real quickly.

Audience member: When I did a start-up of a referral thing and I haven't

worked like I should, I have some clients that are state, city, government
offices, and they actually made the point to come back to me to say 'We
cannot accept any kind of gratuities or discounts...

Jay: That's good. Stop. You can say this. 'Look guys, I wish I could write
you a cheque for a million dollars. I can't; we both go to jail. That stated,
let me say this. You either think of - we're doing business together and you
either respect me as not just the lowest, but the best provider. You know
that I care more, I work harder; I try to do for you what I would do if the
tables were turned. I won't let you spend more than you should, I won’t - I
look out after your interests.' And you frame all the things you do. And you
say, 'I have two choices in my business career. I could spend all my time,
money, effort and attention recruiting new clients and spending
advertising; I could spend it all on making myself even better educated,
better focused, on my clients like you. In order to do that, I still have a
business - just like, if you're city and government, you guys are funded by
tax; if they don't collect taxes, you guys don't have a job.

Well, if I don't sustain new clients, new engagements, new projects, new -
then I’m screwed. I’ve chosen that the highest and best contribution in
where I think i make the most difference is putting all my time and effort
into relationships, like yours. In order to do that, I ask, with respect, and I
hope that my performance is deserving of it; that you would honor and
reciprocate to me, when I’ve earned it, by giving people - by referring
quality people to me. Because certainly you know a lot.' And then I'd
indicate and illustrate who they are, where they are and where they know
them, and leave it at that. Does that help?

Audience Member: Sure.

Jay: Aren't you glad we tape things?

Audience Member: Yes.

Jay: I am too.

Audience Member: Thank you.

Jay: You're welcome. Yes?

Audience member 2: On referrals, something I want to share with...

Jay: Go to a mike.

Audience Member 2: Can I take this mike here?

Jay: They say it doesn't work; go to the back. I'm sorry. Isn't this fun?

Mac: Oh, absolutely.

Jay: You look very dapper. (laughter)

Mac: Oh thanks. Try not to upstage you.

Jay: Can I borrow this and trade?

Mac: Well, yes, of course.

Jay: I’ve got ties for the whole power panel tonight.
Audience member 2: Does this work? Yes it does. There's something
that I want to share with you, which is a very powerful referral-getting
system, which can be used for virtually any business.

Jay: And wait, Sri, I didn’t introduce you. Sri Rou; he's a colleague of mine,
we're collaborating on a book together, he teaches marketing at
Columbia, he's written for ten years for Forbes, and about 30 other
magazines. Very knowledgeable guy, and he's looked at my body of work,
and translated it and tried to figure out how it can be much more utilized
by bigger corporations. Very brilliant man.

Sri: Thank you Jay. Pay close attention to what I’m going to say, because i
think this has the potential to double, triple, quadruple or even more you
business. It's a - some of you have talked about, 'Well, I’m going to give
you a cash bonus,' or something like that, and it has been working for
you ; and I never knock anything which is working; but many feel very
uncomfortable about making that kind of an approach at all. Let me
suggest something. Come up with something which is non-cash,
preferably something which is information based, and something which is
only given to a person who gives you a referral. It could be a white paper,
could be some kind of an inspection you perform, some kind of a service
you can give.

And here's the neat thing. Come up with different levels. In other words,
say 'Well, we've got people who are at a silver level, a gold level, a
platinum level, and how you get in to each level depends upon how many
referrals you give me,' and even more important, what do you do to the
referrals? Giving a name and a number gets you simply at the bottom.
Giving a name and the number and calling up that person and saying,
'Hey, you're great,' and you want to meet with him, gets you to a higher
level. So come up with your own system, but set up a membership level
for referrals. Let you r clients know that this exists, and give them a
mechanism for getting into higher levels,. and make sure you have done
good things that you can give them at each level. Works like [unclear
7:05]. (Applause)

Jay: Thanks man. So Mac, you understand the game we're going to play
now? We’re going to power through the other 24 areas. We're just going to
quickly identify and explain - we're going to stop momentarily. Everybody
who does that in a minute is going to raise their...

Rick: Jay - in the back - do you want the tape now or later?

Jay: Oh, you got it in? Okay, we're going to play something...

Mac: Patty Lund?

Jay: We're going to play Patty Lund. Now, this is - Mike [unclear 7:34] is
going to talk about Patty Lund. Patty Lund is this cool dentist that really
redefined for me and got me really thinking about referrals. I wish I could
tell you that I taught this to him, but I didn't. He taught this to me. We did
a seminar in Australia - oh god, ten years ago; I recorded this, thank God,
and we made it a part of a lot of things. This is the tapeset of the 93
referrals, and this is the actual opening. It's a little awkward, but listen
very, very, very carefully, because it will have profound impact in your
business life from this day forward. Go ahead.

Jay on tape: ....and referral systems. Okay, I’m going to play a quick
tape, and before I play it, I’m going to set the stage. In Australia, the
average dentist makes - works 60 hours and makes about $60,000
Australian. There’s this man that we met, who works 23 hours and by last
year was making $400,000 Australian, and having the time of his life. How
did he do it? Well, he didn't do it by doing what every other dentist did. He
did it by first of all, almost going so crazy with depression that he did
himself in, and he realized he had to change the ways. And he analyzed
what he liked and didn't like about his practice. He liked the people he
could befriend. He liked giving in to people, and not just into their mouths,
but really learning about them; their family.

Becoming a dear and valued friend. He liked a certain quality of people

who treasured and revered what quality dental hygiene meant; people in
the cosmetic who really valued the way they look; people who made
appointments and kept them, people who did regular frequency of check-
ups.

He didn't like people who came at the last minute, who were
unpredictable, didn’t appreciate, didn't maintain it, didn't pay him; so he
started to do something wild. First thing he did is he encouraged
everybody he didn’t like - nicely - and gave them to some other dentists.
Then he took his whole waiting room out and he changed it. He just gutted
it out and he put in there a - salons, which would be like booths, and made
it like a restaurant. When they came into see him, he would basically first
sit down with the patient, a new perspective patient, and have a cup of
tea with them, and he talked to them as a friend. He'd learn what's going
on with them and their family and they'd exchange - and be not in a hurry.

He would connect with them on a much deeper, holistic manner, and he

would -sit down with them the first time, and he would tell them what they
should expect from dealing with him; he would set the criteria. He would
tell them what satisfaction looked like, and draw a picture. Then he flips it.
He's gone through 8 or 10 things they should expect and dimensionalized
and very specifically and tangibly put words in their mouth and visions in
their mind of what satisfaction and expectation should be. He then tells
them what he expects from them.

What he expects from them? First thing, if they make an appointment they
keep it. Second, that that's not just a professional relationship; it becomes
a fraternal one too, because he can't just deal clinically. He wants to deal
personally. He loves people and he wants to really get into their - he wants
a long association with them, their families, etc. Third; if they have any
dissatisfaction, they respect him enough to tell him. Fourth; that if they
are dissatisfied, they honor his request and they don't say…(audio
missing)

…If they are satisfied with his performance on their behalf; his service, his
professional services. number one; they pay their bill in full every month.
He doesn't want to carry [unclear 00:14]. As I recall, he has no
receivables. Number two; the moment they get what he promised them,
they have to immediately render to him at least two referrals. And
rendering doesn’t mean giving him names; making people call him. When
I last heard, he had a waiting list, but he changed the whole rules of the
game. Now, what I'm about to play for you is a taped interview I did with
him, and I wish I could tell you that he learned this from me. I learned this
from him. I think there's a lot of implications to it; I think it's a perfect
conclusion to the first part of this day They're going to play it - think about
your own lives and business as you're listening.

(On tape) Patty: I'm [unclear 00:59] referral, and the way that I started
doing that was initially by asking people for referral, and that was fairly
scary, to say to somebody, 'Would you ask one of these...

Jay: It was awkward too, wasn't it?

Patty: It's awkward, and it's scary and intimidating, and makes you feel a
little small somehow. And then somewhere, and I’m sure somebody gave
me the idea, but I can't remember who; but thank you, whoever gave it to
me. Somebody said, or some little part of my brain said, 'What about if
you tell people whether they’ve got to refer people to you?

Jay: What if you make that a condition of doing business with them, is
what you're saying?

Patty: Yeah, when someone becomes ancient of mine, I sit them down
and I say, 'Hey, before you become a client of mine, we have this little
bargain that I would like to run past you, and one part of the bargain is
that owe an awful lot of things to you, because you've started to become
a client of mine. And the other part of it is because you've become a client
of mine, you owe me something’s and one of the things that you owe me
is to refer to me two people of comparable quality to yourself. And...

Jay: Because he's raising them to a height of acknowledgment, their

special to you , and they're not the norm. His clients are a special, elite
breed, right?

Patty: They are special, because they’ve been referred by other clients of
mine.

Jay: Similar to them.

Patty: Yeah, similar to them; of comparable quality to them. So I say, 'I

require you that you do this before you join the practice.' And when I first
said that, I thought, 'Oh, it's a bit scary; I’ll probably get 50% and that's
pretty good.' And in actual fact, the common response is, 'Can I only refer
you two people?' Which I thought was an interesting response. It's not...

Jay: What do you think they - you think they respond that way because
they don't know the rules, and if you tell them, 'These are the rules,' and
you leave them, they'd say...

Patty:...before they come - I try and destroy their concepts of what it

means to be in my particular business.

Jay: Tell everybody how you do that.

Patty: Well, when we run the business, we tend to copy the other people
that run the same sort of business.

Jay: Why?

Patty: Because this is just the way it is. We do it a lot...

Jay: There's no reason for it though, is there?

Patty: I don't think so. But we act as if there is a law like that in Australia.
We act as if we have to run our business exactly the same as everybody
else's run their business, but we don't, and nothing happens awfully if we
don't run our business in the same way. So I decided to destroy people's
paradigms by changing my way of business. And one of the things that I
did was, I locked my front door so that people couldn't get in. (Laughter on
tape) And that makes it a little different. (Laughter) [Unclear 3:55] You've
got to ring the bell.

And there’s a little sign on the door; it says, 'Thank you for calling, but -
we're inside, but we can’t do much unless you've been referred by
someone who's already a client of ours. So if you've been referred or if
you're a client of ours, please ring the bell. Otherwise, if you have a major
problem, we'll try and find somebody who will help you, but we won’t help
you.' (Laughter)

Yes, it does. If you hired yourself out to be exclusive, people tend to want
to get it. It's really weird isn't it?

Jay: that's powerful. I think you've made the point I want...

Patty: Thank you.

Jay:...but - no you have; it's brilliant, but now add on it. You can be a vivid
illustration. I submit to you that if you don’t revere yourself, nobody will.
Don’t you think, Patty?

Patty: Absolutely.

Jay: But when you do, and you don't do it - you've got to do it with finesse
and you've got to do it with education, you've got to do it nurtiously. They
can't respect you if you don't give them a basis it for that, can they?

Patty: No. If we don’t love ourselves, it's hard for other people to love us.
Is that okay?

Jay: That's great.

Patty: Thank you Jay.

Jay: Thanks, Patty. Okay, with that as basis, or a crucible to build on, how
many in this room either currently or in the past incarnation, had a....(Tape
trails off)

Mac: Whatever it is, is lost in time. (Laughter) Isn't that pretty powerful?

Jay: Thank you Mac. [Inaudible 5:40] ...and then we've got to move on.
Two different people said, 'How do I work when I have - I’m a proprietor to
another point in the distribution chain, or the supply chain? I'm a
manufacturer, and I've got distributors, or I go with retailers. And no other
retailers are going to give me somebody in their market? ' Duh. You think
maybe they'll give you somebody outside their market if they get some
benefit from it? It's not a perfect world, don't… (Audio missing)

…linear thinker, one and half days into this, or I feel like I’ve accomplished
nothing. (Laughter) It's not a pure, pure world. It's not black and white.
Maybe you can't go to them in their market, but you think anybody who's
a retailer never ever knows any other retailer outside of their ten or five
mile or three block radius? anybody? Maybe? Possibly? Huh? Duh.
Mac: The key to a Putty Lund strategy, if you think about it, isn’t the
mechanics of asking for three referrals, even the setup. The key to the
Patty Lund strategy is something that Jay has talked about for a long time.
Its revering and valuing what you do at its highest level. It's all about this
time...

Jay: And how do you do that?

Mac: You, first of all, establish enough rapport with your client's
customers that you know what your value is. That you have every
evidence - that you’ve given everything that you can toward your
customers, clients and relationships, and that you know that you've
contributed. And you keep that channel open. You have to look inside
yourself in many of the ways that Brian Tracey and Mark Victor talked
about, and keep those antennae open. Start appreciating yourself and
accepting your commoditized definition of yourself. And realize you can be
that diamond.

Jay: [unclear 1:34] ...strategy of pre-eminence, which I have to do

sometime today....

Mac: But that's - it really is, in essence, that core belief in what you do
and the value added and refusing to accept a commoditized value.

Jay: Last point, and then I’m going to let Mac...I was testing to see if you
noticed, and you did. Good for you. (Laughter) You're on, you're [unclear
1:55] The way to figure out your value is to think transactionally in the
difference you've made in somebody’s life. Not to think of yourself as a
commodity. In order to do that, you ask questions, or calculate - think
about how much more benefited a company us because you’ve been in
their life. Talk to them, ask them how - interview them, or have a third
party like Jacquie talk to them. Help see what they got from it, what it's
meant to them, what they value most. I mean, people think I'm arrogant.

I just think that I'm giving you guys - those are the right - people are
getting such a benefit, because I know what it's worth if you act on it. I
know if you don’t act, it's not my problem, but I know the value, because
I’ve seen it - important its impact. If you don't quantify a little bit, both
tangibly and psychically, your value to other clients and what you've
meant, the difference, the protections, the impact financially; saving them
from problems, getting them out of it, impacted their business, to their
wealth, to their success, to their continuation; you won’t appreciate
yourself, as Mac said, at a high enough level.

Here's what we're going to do. We've got 20 or - 25 minutes. We got 25

concepts. We're not going to get through it. Mac's going to - they're all in
your book; two different ways - you guys have so many things on it. Mac's
going to go through Pareto Principle; the most critical ten. Just going to
explain it quickly. You're going to find a volunteer, you're going to raise
your hand. All the people in each category are going to lunch together;
you're going to make sure you're at different tables, and you dump your
data, then you move you plate to another one, you do it, and you should
be able to get through three tables, because we're going to vote on the
biggest impact at each table, and we're going to do that when we come
back. So go Mac. Go.

Mac: Well, next. This - as we talked last night a little bit; this - when you
acquire your clients' breakeven and make a profit on their back end or
their downstream business; can give you a pre-emptive advantage in the
marketplace. Is anybody doing this now? Can you stand up please? Only a
couple. These should be very popular people at lunch. Identify one of
them, and try to sit with them This concept is probably the most powerful
in - one of the three or four most powerful in Jay's enormously powerful
tool kit. Excuse me? (Audience member says, 'Amen.') (Laughter)

Oh good. We got another volunteer for lunch. (Laughter) And I really want
you to try and work on this. If this is something you don't understand, try
to get someone at lunchtime to put this to work for you.

This revolves around understanding the lifetime value of your customer.

Marginal net worth; Jay also has referred to it as. It's saying your
relationship is more than slam, bam, thank you ma’am - excuse the
ancient reference. It has to do with establishing the relationship that - you
may have none, but you should think about it. Why? Because most people
like to persist in what they’re doing. If you have a value added proposition,
more than likely the same transaction will go to you, all things being
equal. You can count on something down the line, even if it's just the
relationship, even if the fact is the product you're selling; like coffins;
maybe a one time delivery. (Laughter) You still have the option of working
with the relationship, if you have a trusted relationship.

There's subsequent business to be done in the relationship, and we all

have a human tendency to do business - to prefer to do business with
people we trust. That's the situation you are exploiting. Does everybody
understand lifetime value? This is very important. (Audience says, 'Yes.')
Go read marginal new worth - this is all extensively detailed in your notes
and your workbooks. So let's go on.

We've talked about risk reversal thoroughly. You’ve seen the leverage of it.
Host beneficiary relationships. sometimes a very powerful relationship -
host beneficiary. Some businesses are not easy to promote, as a first step
in a relationship. Who uses host beneficiary? Or as we used to call, host
parasite? Stand up please. If you're interested - if you have a very
valuable service that is difficult to communicate to people until you're in a
trusted relationship, watch those people. If you're interested in host
beneficiary, you think you might be a candidate, grab these people for
lunch. This is seriously your lunch assignment.

Host beneficiary works when you have a situation, for instance, where
let’s say something like professional services, where there's a mass of
people trying to sell the service, but you can't find a way to get through to
the client. Somebody who else has the trusted relationship, is the one who
can refer you. And there's a symbiotic relationship. Direct response
advertising, essentially - this is one of the keys to Jay's messaging. Don't
do things without planning a result; looking for result. It's not about you,
it's about projecting your message and acting - looking for results. Asking
for results. It doesn't mean you have to sell with every communication. It
does mean you have to ask for involvement and interaction. You can't
afford to buy the world a Coke, frankly. Only Coke can - and I didn't see
them actually buying it in the [unclear 7:48]. (Laughter)

If you follow the brand advertising leader on this, you can go broke pretty
fast. Direct response advertising or direct response marketing is thinking
about not just attention, not just interest, not just desire, but action you
want as interaction. If you say, 'This isn't working very hard -' if your
communication isn’t' working very hard, you should probably find another
mechanism. Direct mail and email are tactical uses of direct response
marketing. Direct mail and email are still the work-horses of marketing.
They are provably more effective, tractable. Email has added a whole new
dimension. If you don't know email - who's - could I see who's using email
and direct - email? Stand up please. This is a wonderful thing; make this a
prime topic at lunch. Grab one of these - how about direct mail. Who's
using direct mail? Interestingly enough, email has impacted direct mail
tremendously.

The direct mail business expense; the relative expense of direct mail as a
stand-alone is - makes it difficult, but sometimes direct mail is the only
way you can establish the initial relationship. The convergence and my
friend Barney [unclear 9:15] has just handed me a wonderful...

Jay: Fax, mail...

Mac: Fax, mail. Well, the fax mail's still effective with lagging technology
offices. For instance, certain offices like doctor's offices, don't want, for
instance; don't want email, for the most part. They’re still - old industrial
places - they just don't want to go near it. they think people are going to
send them pornography. But - whatever their fear is, they just don't want
to have any high-tech in the office. So they can use fax. Fax is a form of
direct marketing. Direct mail is the granddaddy of the arts of direct
marketing, but all the technologies that talk one-on-one with the
consumer and the client, are direct response marketing.

Next, telemarketing. Well, telemarketing is very offensive. Except that it

works. (Laughter) It's a numbers game, and it's very tough thing to
manage, but people do respond on the phone, if your proposition is
correct. You have to work out your tactics immaculately. Who uses
telemarketing? Stand up please. Does it work for you? Yeah. Do you have
to manage it properly; is it - do you have to manage the nuances; do you
use disclosed caller ID? Or do you use blind caller ID? Those are little
nuances depending on what you’re doing. Are you using real sales people
that are incentivized or low skill people that are just going through the
motions? All those things matter, but if you're following up behind the
direct mail campaign, or sometimes telemarketing will boost results in
convergence, three, four, five hundred percent; because people are
primed to hear, and waiting for something to get them off the dime. And a
phone call that's friendly, and supportive, will make things happen. So
don't ignore telemarketing, even though we all hate it at dinner time.
(Laughter)

Because one of the things you learn in direct marketing is the old - don't
look at what people say they do, look at what people do. Most perceptions
of people's behaviours is skewed. Everybody says. 'I never buy anything
from direct mail.' Except you look around their house, and it's furnished
with things from catalogues. They go, 'Well, yeah, but that's a catalogue,'
or 'I like that.' (Laughter) Well, most of the economics of direct marketing
are, you only need maybe half a percent of response, on a high price item.
You don’t have to respond to everything all the time, for things to work.
Take a look at the business equation and become comfortable with
statistical results.

If you're in particularly high touch businesses - number eight; the running

of special events. And this is in your workbooks. The running of special
events and information nights can be a way to establish a low threshold.
Who uses special events? Stand up please, if you wouldn't mind. Anybody
thinks like -particularly high demonstrable activities, for instance, medical
services, professional services, even selling cars are extremely benefitted
by special events and information nights, where there’s a big product
commitment and there takes an education pattern; you have to be
comfortable with the people you're going to do business with. It's a low
risk way for people to get to know you, and you can get to know them.
A qualified list; number nine. [Unclear 13:13] clarified list. Who works their
direct marketing material? Who captures names, here? Could you all stand
up - you know what capturing names is? Capturing names is that you get
the name or email, or fax number, or phone number, of everybody you
have contact with, or do business with. Why is that? (Audience members
shout suggestions) Those are your most powerful - you paid for all that
activity. That's the primary expense and the primary cost within your
marketing. If you don't capture that, all your marketing, all your dollars
are wasted. They go back, but you’ve got them to raise their hand.
Develop the relationship with them; it's so important. Qualified lists can be
also - one half second - on qualified lists; qualified lists are people who fit
your profile. A competitor that goes out of business might be useful.

I actually once set up an exchange once with some coin dealers in a

period of terrible depression in the coin market, who had big investors -
both had big investors in coins, and needed probably to do something
about them, but they hated the vendors - each of them hated their
relationships so much that they swapped lists, because the new person
could call the old person’s list and hear them vent about how bad the
other one was, and say, 'Well, we'll help you out of your problem.'
(Laughter) Yeah, they're really skunks...'We’re here to help.' (laughter)
Because they just didn't - the breach of trust in the relationship had gone
so far, but there was still interest in the area.

So qualified lists are the essence of the direct marketing proposition. This -
back to - this is number ten; but it's really number one and number
infinity. Unique selling proposition, as we discussed last night; you have to
get to the top of the list for that moment the person or the company is
going to purchase from you, and the only way that you can do that is that
in the mind of your customer you are number one choice at that particular
moment. You get to be number one by having an implicit, a clear stated,
unique selling proposition; or unique strategic positioning. Or it’s one
that’s vague, but still there in the mind of the consumer. I keep saying
that.

The mind of the client - it has to be their perception of your value. And I -
how many people have good USP's in this room? Please stand up. A rare
thing, to have a good (audio missing) …formulated, very good. About a
third of the room, maybe a little bit less. And it's a progressive question of
developing a USP. USP's are something that's always in process. Most
people start with a USP where it's all about them. Not about what the
value added to the client is. For instance, just to give you a case in point,
a diner - everybody says, 'Oh, stop at that diner, because the truckers
stop there.' Well, you go, 'Well, they must have good food, because
truckers like good food. That must be their USP, so they put up good food.'
But a little research shows that the reasons the truckers stop at that
particular truck stop was cheap gas, and they had the most easy parking,
and in and out. Had nothing to do with the food. The perception - there's a
terrific study that's called Predatory Marketing, by Brit Beamer, which is
wonderful.

Talks about all the things you may not be paying attention to, that may be
affecting your consumer's choice. But square one - square end. Pardon
me? Okay, five minutes. That’s easy. Increasing perceived value of
service. what's the fundamental key of increasing - increased value of
product or service? The fundamental key is talking to people, tell them
what you know about it. Explain, don't say, 'It goes without saying.' It
doesn't go without saying. Say it. (Laughter)

Public relations. Or as some of the smarter practitioners are talking,

earned media. Public relations is the most powerful tool you can put to
work, because on some level, it's mass communications for free. But you
don’t get it for free, you get it by understanding the needs of those
publications and media, and giving them what they need to create an
interesting content for their subscribers or readers. And you get it by
understanding the dynamics of the market place.

Jay:...[unclear 2:24], but I think this is one of the most - hold on. Am I on?
Am I on? I think it's one of the most overlooked - make sure people stand
up and go out of their way - who uses PR and media management very
effectively? Stand up. Okay, very few of you, but you have a moral
obligation - raise your hand, take a note, prick your thumb with blood;
you've got to do it, you've got to help everybody else see the implications
of being much more oriented towards using the media advantageously.
Promise? (Audience says, 'Promise.'

We're going to hurry through because I 've got to get Chet on for you or
you'll lose another - Mac is doing a Herculean job, because I'd still be on
the first one.

Mac: But productively, though.

Jay: Yeah, of course.

Mac: Delivering higher than expected levels of service. Who here makes it
their business commitment to provide the highest level of service they
can? How do you know that? How do you that - do you ever ask your
customers do they perceive you to be offering a higher level of service?
It's the constant communication that brings that about, and that service,
in a commoditized environment, is the key to relationships. And service is
what people think it is, not what you think it is. This is an adjunct;
communicating - 14. Communicating freely with your clients to better
nurture them.

This is an adjunctive education. Just the fear fact of communication gives

you an opportunity to open up a relationship. There's tremendous amount
of latent business out there, that if just by saying, 'Hi, I was thinking about
you. I haven't heard from you for a while,' you can stimulate a flood of
business, just because people say, 'Oh yeah, I was kind of doing
something else, but now that you called...thanks for sending me that
letter. I’ve been meaning to reorder.' It's very powerful. Increasing your -
this is - I’m not going to stop here because we have Chet, and he's going
to go through this again, so powerfully, increasing the sales level skills of
your staff.

Very important. If there's one key to this it's that the first sale you need to
make in an organization is to your people. Don't assume they're sold just
because they work for you. Next, please.

Jay: He just went and did an errand for me.

Mac: Well, that's too bad, because he's my clicker.

Jay: My fault. I'll do it, I'll do it. I just had him do an errand, sorry about
that. What was the last one we did?

Mac: It’s 15 here.

Jay: Hold on.

Mac: Well, why don't you do it and I'll do the...

Jay: Okay, good.

Mac: [unclear 5:01] Chet...

Jay: Isn't this fun? (Audience says, 'Yeah.') Beats a regular, linear seminar,
doesn't it, when people are...?

Mac: Qualifying leads up front.

Jay:...be so cool to dole out wisdom to you guys. It's much more fun
getting the context. This is going to be so cool. Okay. Qualifying leads up
front. You heard about the starving crowd; nobody realizes that you'll
double, triple, quadruple your effectiveness if you start with a calm,
pragmatic question. Who in the hell, where in the hell are my prospects,
who's already got them, what's the best avenue; looking at your database
that your buyer makes - see where they're coming from, what
commonalities they have. It's powerful. Two more. Wait, stop. Who does -
who's really good at figuring out how to identify and zero in on the quality
of prospects? Who thinks they really do it well? Stand up. Stand up. Stand
up. Not very many of you. You've got to - you probably won't have a very
good lunch because you're going to go from table to table to table.
Anybody else...? What is it?

Mac: What's the fundamental question when you're qualifying? The

fundamental question is - and proposition is, 'I don't want to waste my
time or yours. Let's - I’m offering a valuable service; I want to find out if
you ever have need for this service, or might be interested in an
enhanced version of what you're getting already.' That question, straight
up, gets you a qualified answer.

Jay: Good. This is self-evident, we've already done it. Next. This is so - at
point of purchase psychologically - the buyer is so favourably pre-disposed
to be guided to a higher level purchase. All you got to do is either guide
them or have something. 7-11's got stuff all around. that's because people
buy it all. It's very simple.

Mac: You sell what you sell.

Jay: Next. This is going to get into later - we'll get into this later. Next.

Mac: That's bundling.

Jay: Bundling.

Mac: It works.

Jay: That’s silly. Everyone thinks you've got to compete on a commodity

basis. Just by raising your price you will find - I raised my hourly fee from
$2,000 to three; from three to five, and it only made me more powerful
and impactful. It only made everything else I did more value based.

Mac: One thing is so effective that in Germany, bundling products and

enhancements and bonuses are so strong, that it's illegal.

Jay: Next. Next. We'll just move it later.

Mac: Okay.

Jay: We've already talked about that.

Mac: Greater or larger [unclear 7:22] of purchase. Just put on your

thinking cap...

Jay: Let's stop and we'll do this later, okay?

Mac: Okay.

Jay: We're going to do one thing for two minutes, just to get your energy.
Stand up. Dave, are you there> Get ready, we're going to play you YMCA
again, but only half way through because we need to get ourselves ready
for Chet, and then I'll set the stage. Mac, you're the best YMCA partner
I’ve ever had, come on. Are you ready? We're only going to do half,
because we've got to get going, so about halfway through, stop it. Okay,
get yourself limber. Alright, you ready? I don't have magical feet, so you
guys got to help. Go. (YMCA starts playing) Loud, loud, louder, louder,
louder. (Audience clapping) Come on Mac, we need you. Mac….

Okay. So you had Chet Holmes a little bit. Chet’s a partner of mine in a
consulting business. Anybody here who's got a business that's 5 million
and up, or making seven figures? Make yourselves known, because we
should at least talk to you and see if there's any application to you that
will help you long term or for me to get involved on a contingency basis to
try to triple or quadruple your profits; and he's available if you're serious,
but he's here for one reason only, really. That is to help me help you
understand two of his most powerful distinctions. I call it the Pareto
Principle. The two things amongst everything else; if you get these two
things, it'll move your business powerfully, profitably and immensely
strategically forward.

So he's going to spend about an hour. He should have spent an hour and
45, but I crammed it and poor guy, it's compressed, so bear with him.
Listen carefully; it applies to all of you.

Rick:...you're going to go like this...

Jay: I’m just going to - the lights will go off and the speaker will. Anyhow,
Chet's really cool, and if any of you guys; I don’t have time, but a lot of
you should be talking to me, because I’m here only to reach you. I don't
know who you are, you know who you are. Let him know, and if there's
any car dealers in here, I need to trade for a car, so you got a very
receptive person. Go ahead, Chet.

Chet: Ah, it' working.

Jay: Go, man.

Chet: Okay, thank you. I’m going to pick you a little bit of where I left off
yesterday, just because I wanted to finish a couple of points, and then I'll
move into the second segment. This talks about obtaining master level of
skills and for those of you who don't know my background, I studied
martial arts for 23 years. I have 13 different degrees of karate, you know,
from [unclear 1:34] black belt on down to [unclear], depending on which
style you're talking about. My father was a marine combat instructor, so I
started learning at like, 3 years old. I had a karate school in Times Square
when I was 25.

So it says, karate, golf, tennis, sales, time management, telephone skills,

interviewing skills, closing skills; management skills with you as the
manager. All that stuff I talked about yesterday. All it takes is repetition. I
mean, how many ways are there to swing a golf club? The right way and
the wrong way. How many ways are there to serve a tennis ball? It's about
what makes you great at that though, is constant repetition. And it says,
in the beginning, acquiring a new skill can often be boring. Like you going
back to your office now and trying to do those workshops to move your
staff forward in all these areas that you've learned about, and you'll find it
somewhat frustrating, you're not quite sure what to do; and you'll get
good at it, is my point. You just got to stay with it, because there's no
karate lesson, or golf lesson or tennis lesson you can go take in a weekend
and come away a master, right?

Right, so let's talk about what makes a master. This graph; this is one of
those - and yesterday, if I would have had the time, I'd make this dramatic
point about the power of visual aids, and how much they can help you
communicate. For example - this is a great example of powerful visual aid.
At the bottom here - I don’t know if you can see it. Can you guys see that?
The little laser thing? No, it's not. But at the bottom, it's called lowest level
of skills - that red line across the bottom is lowest level of skills, and this
line across the top is what they call master level skills. And here is most
people with most skills. That's average.

Because if you're a master at something, it's not something you were

born to; anything. You've got to work at it, from Tiger Woods, to anybody
who's a master of sales and marketing; something that you worked at.
Well, let's take time management as an example - trying to make you
guys all masters of time management. Those of you who took the PEQ
know that I have a very strict regimen for time management, and how
companies should run. So I - and this is one of those epiphanies - I came
back from a big seminar like this, and I realized that I was in a reactive
mode all the time in the business. And so I came back and I set up these
rules in the organization, and I basically broke time management down
into six things. Here's what it takes.

Five minutes at the beginning of the day, I want every salesperson to do

this. I want every department manager to do this. We're going to run the
company this way. I taught that program on a Monday, the skills started
here; we were average time management. On Tuesday, people literally
came to me and said, 'You know what, I probably had the most productive
day of my career.' By Friday, almost nobody was doing any of it.
(Laughter) Right? Has that happened to any of you ? You come in, you say,
'This is what we're going to do from now on in. It's a Monday...' Everybody
goes, 'Yeah, great idea.' Tuesday, everybody does it, they see it work, and
by Friday nobody's doing it.

And if that's where I stopped - if I didn’t have a fifty [unclear 4:34] in

karate; if I wasn’t obsessed with making sure that people became
masters, and if I wasn’t - what did we say yesterday - pig-headed
determined to make sure that this time management was going to be
implemented in the company, we would have stopped there. We started
here, and that would go all the way across now. So that would be just all
the way across, and so some people would be thinking about some time
management some of the time. But me, pig-headed determination, I
taught the program again the next week. And the skill level went up a
little higher this time, because it was the same concept. Right?

How many times do you have to retrain on the same thing to get good at
it? How many times - how many months did I work on that gold service to
get it working in that company? Anybody remember? 6 months; the same
six things. But it works like a champion race horse, now, and it's an
integral part of the company, and I’ll show you all the ways it's helped
them; it's just amazing. So again, fall off will come again. That's the fall off
of…(audio missing)

…off, boom. Now the skill is two weeks, the fall off. A little bit more
permanent skill remains; remember we started down here, now we're
here. And then teach it again, skill improves again, fall off is not as
dramatic, more permanent skill remains. So the secret to great business is
continually focus on small, incremental gains. That's the main point I
wanted to make yesterday.

And then the other point is how much stronger visual aids really help you,
and so you should try to look for ways to utilize them, because they're
really powerful. That's one of those - you wake up at 3:00 in the morning
and go, 'I know just how to illustrate that now.' And it really does a good
job, don't you think. Now, I could have stood here - just to give you an
example - and explained all this with that screen dark, but you see what
just happens to communication experience. Just went down. Studies show
- and this factual information that - adding visual aids triples the
communication experience for the audience. So every chance you get,
you should be looking for some way to illustrate stuff. So let's just look at
some of the challenges - what we call the clutter factor. This is from a
study I did for Packard Bell in 1994, and we had - no, it was Thompson
Newspapers - and in 1991 or 1992, we did one for Pac Bell, and the clutter
factor, which is the amount of commercial messages that the average
consumer receives, had gone from 2000 in '92, to 3000 in '94. Can
anybody guess what it's at today?

From the time you wake up until the time you go to bed, how many
commercial messages do you think you see? 30,000. It's grown 10 times.
now this is counting - you know, your razor blade has a little logo on it -
every single thing from the end of the day. So that has created a very
different world. Important decision-makers receive more, so if you sell B-
to-B, you're dealing with an every bigger clutter factor. And this is the cost
to get salespeople - has actually tripled over the last decade. It costs
three times more to get your salesperson in front of a prospect, and you
have to try twice as hard.

Right, 8.4 times to get the average meeting. Now, if you don't have
policies and procedures - you had seven; the other guy that was sitting
here - if you don’t have policies and procedures that your salespeople are
going to try at least eight times, you're dead meat today. So that's what
I’m saying. You need - like here's the eight steps we're going to - I have
12. Personally. for our salespeople, we have 12 steps that they're going to
do, and it's all, here’s the letter you send, here's the phone call you make,
here's the script you're going to do; and again, you're not going to turn
around and do that in one week, and if it takes you a year, and a year
from now, you've got those things in place, and they’re working, you're
going to kill your competitors.

Okay, so the bottom line is, it now costs us three times as much to get
half the result. So what are we going to do about that, as I said yesterday?
Well, you can work harder - and I've literally - I've had Times Mirror as a
client. Pac Bell as client, Wells Fargo Bank was a client, Men's Warehouse
was a client. And I’ve had situations where I’ve presented this and I said,
'Those are the problems, what are you going to do?' And you had the sales
manager of this really huge company, says to me, 'We’ll just make them
try twice as hard. We'll make them - they will go eight times.' And that's
okay. But my question to you is, can you work smarter? If you stopped and
said, 'Wait a second, what could we do, that literally on the very first try,
the prospect would say, "What’s that? Huh?'" So again, that's it. A
workshop that I do with people - and if you do this; if you sit down with
your crew and you say, 'What could we do -' put it on the whiteboard;
'What could we do that would make someone want to talk to us first try?'
I’m going to give you some really good ideas on that. So this is all about
working smarter. and let's define strategy as it relates to marketing.
Strategy is the long range goal; the overall impact. Tactics are the things
you do to get there. So a tactic would be an ad that you place. A sales
person making a sales call; that's a tactic. A direct mail piece; that's a
tactic. A public relations effort; that's a tactic. Strategy says, 'What do I
want all those things to accomplish, and even more importantly -' and you
can tell I'm rushing - 'What do I want all those tactics to add up to? So
what is the strategic objective of each tactical effort? What's the ultimate
accomplishment or ultimate position you want in the marketplace? And
how do your tactical efforts - so if I said to you, 'What's the ultimate
position you want in the marketplace?' And maybe you guys could think of
what that is. Whatever it is.

Now I ask you , 'What are your tactics doing to help you get there?'
Because a lot of people never make that connection. First of all, they
never think of the ultimate reputation they want in the marketplace. And
the minute you start thinking about that, it changes what you do at the
tactical level. Again, I’m going to point this out; it's going to be so clear. I
mean, in my opinion, when you come to one of these events, there should
be certain things you go away, that are now different. You go away and
there's things now you're going to do differently. This is one of them; is
that you're going to operate strategically,.

So here's a true story. I was personally involved. Two furniture stores open
up at the same time, and over as four year period, this one grows about
10% per year, mostly based upon increase prices of furniture. So you
come into this store and they say, 'May I help you?' And you say, 'Yeah,
I’m looking for a couch.' And he says, 'Right this way to the couches,' and
they try to sell you a couch. Well the other store that I was involved in, the
sales people were so - of course they would try to sell you a couch, but
they were constantly trained to sell the store. That's just an example of
strategic selling. Now, it rarely every happens, but every now and then,
you go into a restaurant, and the waitress will actually ask you, 'First time
in the restaurant?' Or you go into a store and they say, 'Have you been in
our store before?'

That's somebody about to sell you strategically, versus sell you tactically,
meaning 'I’m going to sell you a couch.' So in this place they actually - the
sale people were constantly trained to sell the store. It was the best store;
most respected store. Had the best policies, blah, blah, blah. And by the
way, a lot of things that this store did, was identical to what this store did.
The difference is they taught you it. They took the time to strategically sell
you. Like the carpet cleaning company. Here this guy wants to get 30,000
customers and Jay's going, 'Well, you got 30,000 already and you're only
selling them once every three years. Heck, let's just - when they call in,
let's turn them into people who buy more often.' So that's taking
advantage.

So I say here, how many people have learned this from me before? Like,
the idea of selling strategically? Okay. Handful of you, maybe ten. Then
the next question is, yeah, but are you doing it? Because again, it’s one of
those things you just have to work at, but the results can be profound. So
let's try and make you think like a really great business person. Let’s
pretend that you're a military leader, and you have a dozen soldiers.
You're outnumbered 10 to 1. And this table right here, you guys are my
team; I’m your general, and we're outnumber 10 to 1. So those other 10
tables are against us. Now, let me show you a bad military leader. If I can
get this thing to work without being right in front of it.

Okay, strategy versus the - bad military leader turns to his troops and
says, 'Okay, guys. Good luck.' (Laughter) 'Go fight the enemy.' And yet
that's what most businesses do. Really; they deploy their troops, they let
their salespeople make all the decisions. They're not using best practices,
even though you've all heard at these events again and again and again;
and no plans, no evaluation of resources, no strategy; just tactics. So
strategy would be, 'Okay, lets’ see. Betty, you're good at this, and Billy,
you're good at that, and we're going to go round, and we're going to flank
the -' and we start to plan what we're going to do. Same thing with you as
a business owner. I’m going to drive this home.

Plan, plan, pln. Think, think, think. What are our resources? Who's good at
what? Can we outthink the enemy, because operating smarter is way
better than operating harder. So let me give you a real good exercise that
drives this all home. It's what I call the stadium pitch. Let's imagine that
you had this outrageous opportunity; that I could put all of your prospects
into a stadium all at once, and you have one opportunity to walk out there
and sell them all at once, Who here is ready for that pitch, right now? To
walk out the door right now into this stadium, and these are all your
customers; you can get up here on stage right now and do a masterful
job, and completely sell the entire room?

We got a couple of you. There's always a couple of you. But all of you
should be ready for that. But let me make it even harder. What would you
want to accomplish - what would be your strategic objectives? So most
cases, people would say, 'Well, what would be your strategic objective?'
You walk out there; 'Well I want to sell them all.' And I’d say, 'Well, is that
all?' 'Well, yeah, what else is there?' 'There's a lot else.' So I’m going to
show you like, 15 other things you might want to do in that stadium pitch.

But first, let's define the audience. So the top line…(audio missing)

…Right now; they're people buying right now. Let's say you sell cars. Right
now, there's a two-three percent of any particular product or service
-there’s two or three percent who are buying right this minute. They're
already - whether you get to them or not, they're buying, okay? then
there's about twice as many or three times as many, or four times as
many, depending upon the market, who are open to it. Who I know they're
going to be buying. The lease on a car is coming up - they're open to it.
They - it would be okay, it would be an easy decision for them. And for any
product or service in the room, this is the case.

Then there's those who are not thinking about it. That doesn't mean
they're against it, because that's a separate crowd; they're next. They're
not interested. But above them, and usually the biggest part of the
pyramid, is those who are not thinking about it. Just hasn't occurred to
them. Does everybody understand this; define your audience, pretty
much? And then you have those that are definitely not buying ever. So
they think. They know they don't want to buy. And I’m going to show you
how we - but a great stadium pitch will appeal to the entire pyramid, and
it will drive buyers up. It will take the people who are in the not thinking
about it category and move them into the open to it category. It'll take all
the open category guys, and move them into buying now, and it'll take the
buying now and you'll sell them.

So here's the real challenge. And this is where you really - now let's make
it real challenging. Right before you walk out, I tell your audience, 'Okay,
you had to come, but you don't have to stay. So if this person doesn’t rivet
your attention from the first 30 seconds, you can get up and leave.' Now
that means that if your audience - if we go back - if your audience is
composed of people who are definitely not interested, and you start
talking about your product right away, like carpet cleaning, you definitely
don't think you need carpet cleaning; and you come out there and you
start talking about carpet cleaning right off the bat, or your product or
services right off the bat, you're going to have a huge portion of that
audience walk out. Just get up and walk out.

So again, I'd love to ask the people who thought they could come up and
do the stadium pitch, if this were the rule, that basically these people
have been told if you don’t rivet their attention immediately, they can get
up and walk out; now are you still ready to do the stadium pitch? Who's
ready? Okay, give me your opening line. Didn’t think you'd be put on the
spot like that did you? Love to have someone run over with a microphone,
but that's not going to happen. No, here he comes. (Laughter) Dun-dun
dun-dun-dun - oh I thought that was a mike in your hand. Okay, so what
do you sell?

Man 1: I'm...

Chet: It's on.

Man 1: I’m a financial advisor.

Chet: Okay, so you walk out - good. So all of you guys are his potential
stadium, right? Come on, give us your opening line?

Man 1: Whether you know it or not, whether you like it or not, you're
engaged in a game of financial chess against the financial institutions and
the government. But you don't have a chess board, so how do you know
how you're doing? (Applause)

Chet: Right? Hey. Excellent, thank you. That's a great stadium pitch. Why
is that a great stadium pitch? Because it starts off with something of
interest to you, not of something to interest to him. So he doesn't walk out
and say, 'I’m a financial planner, and I’m here to teach you about financial
planning;' because that's his pyramid - is there. He's go people who think
they don't need that. He didn't just open up with something that makes us
all go, 'Huh?' So I'm going to give you a lot of other examples.

Alright, so you better come out hitting home runs. You better come out
with something that’s of interest to them, and guess what makes it of
interest to them? It's market information. Oh, but before we go there, let's
talk about what else we want to accomplish. First strategic objective and
again, you guess that know Jay's stuff - and I just need to use this here -
we steal from each other all the time, but did he do that client versus
customers thing? Customer is someone, if you look at the dictionary, it's
someone who buys something from somebody else. A client, if you look
at the dictionary definition, is under the care, guidance and protection of
an expert in a field. Like a financial planner does not have customers, they
have clients. That means they're under his care, guidance and protection,
right?

A doctor has patients, a lawyer has clients. so you should never call - and
you hear Jay never referring to customers as customers. They're always
clients. And if they're under your care, guidance and protection, you have
a moral obligation to be an expert and bring them as much information as
you can. So you must be an expert in your field; not just your products or
service, but your entire field, and he started with strategic example of
something that's of interest to everybody. So, in the carpet cleaning
example, every competitor is pitching carpet cleaning; these guys are
talking about the EPA studies of indoor air quality, and how that impacts
your health.

So his stadium pitch would walk out and say, 'Did you know that 92% of
our time is spent indoors, and that now, in most homes, you're
environment is poisoned?' That gets everybody's attention. So you
thought you weren’t interested in carpet cleaning, but by the time I get
done with you ,e very single one of you is going to be running home and
calling your local carpet cleaner. So that's market data. And it's way more
motivational than product data. That's what l'm trying to tell you guys;
that market data is way more powerful, and there’s no example - you all
right, Rick? there's no situation - so here's some great - these are clients
of Jay's and mine.

This is a shoe store in Canada; largest off - what they call off-price instead
of discount; they don't like that word - off-price shoe store becomes an
expert on not just shoes, which most are not anyway; meaning most shoe
stores don’t know anything about shoes. (Laughter) You really have no
knowledge. But about feet, fashion, footwear, shoe construction; I mean,
you could walk into this store now; these guys could tell you - do you
know how many pairs of shoes the average woman has in her closet?
They can tell you that? Do you know how much perspiration your feet
have in the course of a day? Do you know what impact your shoes have
on the health of your feet?

There's 214,000 nerve endings in your feet that connect all the different
parts of the body. I'm like - feel like Cliff Claven; 'Did you know one other
thing?' (Laughter) Could go on here, with - it's a little known fact that your
feet sweat a couple of - perspiration a day.

Okay, so software provider learns issues facing their industry. I have a

telephone, telecom company client right now. They studied their market -
as per our advice, and they found out that 19 out of 20 of the largest
provider of telephone systems are now out of business. You know, AT&T
used to have the Merlin system? Not in it anymore. So again, when you
walk up to somebody and you say, 'You know what I'm talking about
right?' Have you seen that thing they built? It's a masterpiece; it's
unbelievable. They have a stadium pitch that will just knock your socks
off. But let me go on to show you how it translates to actual revenue.

So used to be called unique selling proposition, and that meant what is

your unique selling proposition based upon your greatest strength? I’m
telling you, that's not half as powerful as the ultimate strategic position
based upon the market trends and factors; meaning that the carpet
cleaning guy cleans carpet better than anybody else. Well, that's a hard
thing to prove…(audio missing)

…only carpet cleaning company that is trained in the environmental

protection agency's standards for internal cleaning of carpets. And if
you're going to have your carpets cleaned, and if you know that the
environmental protection agency has studied that, who do you want to
clean your carpets? The EPA study guys or the guys who just say, 'Yeah,
yeah, we clean them.' You know. So it strategically positions you so far
above your competitors, but you got to know the market facts. It’s funny; I
had a company that were in the trucking industry. They sell those wide
load signs; you see those on the back of trucks, and all the different
signage for trucks.

And I go in there - guy's been in the business 37 years, and we had done
our research on the industry, and he says, 'Let me get this straight.' And
then the son is the one that hired me, and the father was real
cantankerous; and he said, 'Let me get this straight,' he says, 'You mean
to tell me you're going to tell me more about my business, and I've been
in it 37 years, and you've been in this 37 days?'

And I said, 'Not your business; your industry.' He said, 'Oh really,' and I
said, 'Yeah.' I said, 'How many trucks are there in the country?' He didn't
know. (Laughter) 'How many are built every year?' He didn't know. 'How
many of them have been cited for violations this past year, because they
didn't have those wide load signs?' He didn't know. And I would challenge
most of you, if I brought you here and asked you about your business and
started to ask you questions about your industry, same thing. How many
players are in it? What's the failure rate of them? What it - you've got to
know your market place, because it strategically gives you such an
advantage.

So what market information supports your strategic position? Find the

transit motivate buyers what market positions, blah, blah, blah. So like, I
got better examples, I'll skim through some of this. But you've got to
understand, motivations comes from two factors. One are the problems
that your prospects face, and the other are the solutions, and - which one
do you think is more potent as a motivator? It absolutely is; the problems
are the biggest motivators, but you know you got to have solution. And
there are some solution-based selling, but you can take a prospect - who
is it, the woman - not to contradict her either. I keep coming up here and
contradicting the other speakers.
But she was saying find a buyer, find what they want and sell them what
they want. Well, sometimes they don't know what they want. The average
person, about their carpet cleaning did not know that the bacteria was
building up in their rug, and that they're living in a poison house after six
months if they don't have it professionally cleaned. So sometimes it is
your job,

Again, if they're your client and they're under your care, guidance and
protection, it’s your moral obligation to teach them - I just making sure I
don't run out of time here. So paying points that motivate your clients. Set
up the buying criteria way betters. So the concept here is setting up a
buying criteria in which you become the logical source. This is what top
producers do. You top producers in the audience; you know what I'm
talking about. Financial planner guy; he starting to set up buying criteria.
In other words, I could just sell you the car, or I could set up the criteria
under which you should buy a car. And if you agree with the criteria, guess
what. You're buying the car.

So, true story. I go out and I'm about to buy the $100,000 Mercedes, and
after three phone calls to the dealership - I hadn't seen it and was ready to
buy. Sales guy did not return my phone call. Well, just being who I am, I
can't buy from somebody who has that kind of follow-up. A neighbour of
mine says, 'Why don't you go check out the Cadillac.' I'm like not really
Cadillac - you know. So I go down there and the sales guy's like a rocket
ship; fantastic sales guy. He opens the hood of a car, and he says, 'You see
those platinum spark plugs? Well, they cost us plenty, but they won't cost
you a dime, because this car don't need to be tuned up for 100,000 miles.'
(Laughter) I go, 'Really?' He goes, 'You know how much it costs to tune up
a Mercedes?' 'Yeah, I do actually?' He reset my buying criteria. He took my
current - so if you agree with the criteria - I call it the funnel effect.

You should set up a criteria that says - he says, 'You don't have the chess
board.' I bet if we let him go, he'd probably set it up pretty good, where
you'll be going, 'Yeah, well that's true, that's true, that's true.' So if you
agree with the criteria at the bottom of the funnel, you're going to draw a
logical conclusion. So what market data? How can you set it up, where
basically, you're setting up the buying criteria for your buyer. You
understand?

So every one of you should have a stadium pitch that goes. 'The five most
dangerous trends in your industry,' or 'The five things that every person
should know about shoes,' or vitamins, or - and all of that is a righteous
set up for what your product or service does. That's not my idea, by the
way, I just named it. It's what every top producer does. They set up the
buying criteria before they try and make the sale, and it's so powerful that
you cannot compete with them. You better hope one of my clients never
has to compete with you, because they will slaughter you if you're not
setting up the buying criteria. If you're not an expert on your market
place. You can be an expert on your product, and someone comes in,
expert on your marketplace; who's going to have the credibility?

You can talk about your products, but do you know that there's five trends
right now that are occurring in the industry? They're going to totally make
your product useless. So your competitor would should them, if they listen
to what I’m saying here. So, examples. The health of Americans. I've got a
client that has vitamins, and man, it's a great pitch/. And I can stand here
and tell you the pitch. But if I first told you that did you know - all factual
information by the way - that the fertility of American's has declined by
95% since 1929? In 1929, the average sperm count had a hundred
millilitres of sperm per millilitre. I'm probably a little off. Today it’s five
million. From a hundred million to five million. We’ve actually - we're on
three generations; if it continues at the same rate, man will be extinct. We
will not be able to reproduce as a species.

Do you know why? Because of the malnutrition of our food. Our products
are pumped with bovine growth hormones, and bacteria, anti-bacteria.
Our spinach, just as an example, has declined from 250 milligrams per
serving, of iron; down to 2.2. You can eat all the spinach you want; you're
not going to get the nutrition that you need. Now that's factual
information, it's starting to set up where now, all of a sudden, nutrition
becomes way more important, because guess what? You're not getting it
from the food that you eat.

And I can continue to go along that line, and by the time I’m done, every
single one of you will be standing on line if this guy was here selling stuff,
and you'd buying it. Right, so market information is always more powerful.
Home school curriculum provider; and let's think about that pyramid
again. How many people here are interested in home-schooling their
children? Wow. I got to tell my client. (Laughter) Most people - but how
many people aren’t? Show that. It's quite a bit more. Or people don't have
children. (Laughter) Not enough hands went up on that equation.

So these guys have this - I call it a core story, because every company
should have like a core story or stadium pitch that they tell, that talks
about the decline of education in the society. You know what the illiteracy
rate in America is today? 25%. Here I go, Cliff Claven again. 25%. It's a
little known fact. (Laughter) People don't know who Cliff Claven is are
going to be like, 'What is he talking about?' But you know what it was is
1828? You'd think it was way worse, right? The average person would
think, 'Wow, back then they were really poorly educated. .004%. Only four
out of 1000 people couldn’t read. Today, 25 out of a 100 can't read. What
happened? (Audience member says, 'Governments run the schools.)

That's exactly what happened, and if I took you through stadium pitch,
every single one of you would be on their website buying their curriculum,
buying the curriculum from those guys and not from the public school
system. Setting up the buying criteria. Now they could stand here and tell
you what their curriculum is, and it’s good, but they don't create a need.
They're not setting up a criteria where you're going, 'Oooh, I had no idea.'
Your child is at an extreme disadvantage without that. I'm just - give me
like a little - I have another client who sells crime prevention programs,
and they're great programs, and I can stand here and pitch them to you,
but if I told you - how many people in the audience have already been a
victim of some kind of crime or another? You’ve been robbed, or mugged?
Half the audience.

By the way, in America today, one out of every two people will be a victim
of crime. One out of every two. There's a violent crime every 22 seconds.
There's 62 million criminal records; and here I go again, my Cliff Claven
thing. The point is that when you start showing people that one out of
every three women will be sexually - you know; that our children - you
know - sexual predators. Oh my god. 386,000 registered sexual predators
in this country. It's tripled just in the last three years. In California alone
it's like 63,000 or something. Like every county has 1000 sexual predators
in it. Now, when you hear that kind of stuff - 3.4 million homes will be
invaded this year, where people will break into your home, rob, rape, kill,
murder - whatever. 3.4 million cases of that. You are not safe. See, that's
setting up a buying criteria. If I stood up here and told you about self-
defence, or ways to protect…

Jay Abraham Mastermind Marketing 17

…yourself in your home, it has very little impact, but I'm setting up a
buying criteria. All this make sense? Who here has done this kind of thing
already in their company? I know you have. Like, five of you. I'm telling
you, if your competitors listen to me you will get slaughtered, becuase it
works so well; that's why no client I have has any competition. Because
they all set up the buying criteria. They're all experts on their market
place. So what about your buyers? What would scare them that's
legitimate? Meaning that the guy who sells self-defence, he's on a mission
from the Lord, in his opinion; let me tell you. If you knew this guy. He is on
a mission from God. He feels it's his moral obligation to absolutely make
sure you all are safer in your homes and in your lives.

So what would make them feel uncomfortable with their current position?
What market factors would set a buying criteria in your favour? So like I
said, you should all something that says 'Five most dangerous trends
occurring in the - whatever industry that you're in.' Very powerful. And
again, your goals to drive them up the pyramid. So if I walked out here in
a stadium pitch, and we used the home-schooling curriculum, and I walked
out and said, 'Do you know that our government has deliberately dumbed
down the society?

And they've actually created what they call a factory -' and this is John
Rockefeller started it and Woodrow Wilson made it law, - 'They created a
factory society, so that they would have factory workers, because they
were afraid they wouldn't have enough people. So they actually made a
purposeful effort to dumb down the society, and that's going to hurt every
one of your children. And I’m going to show you exactly how they've done,
and I'm going to show you exactly how you can combat it.' Now, no-one is
leaving the stadium. You understand?

I appeal to the very bottom people who would think there's no way I'm
home-schooling my kid. Right? They started there, but by the time I’m
done, I might have actually moved them all the way up into 'Oh, I'm kind
of open to that.' (Laughter) Or, 'I'd like to think about that,' or maybe right
into the buying now category. So if you look at your market like that, and
you come at a marketing stand point, from 'How can I take the guy who
thinks he's against it, and set up some information that makes him go,
"Woo, I’ve got to have that?"' Now you're way ahead of the game. These
are strategic positions that actually shifted the buying criteria. They
change the way we think about how we buy. Okay?

Let me give them to you. These are great. It's 1970, and you and I are
sitting around, and we're going, 'You know, McDonald's has been so
successful. There’s a pizza place on every corner. Must be something we
can do with pizza places to franchise them. There's got to be a way we
can franchise pizza places. Maybe we can make the pizza really different.'
So we do some experiments and - pizza with lettuce on it, and it doesn't
really work out. We try some things; it doesn't really work out. Because
people want pizza when they want pizza. And then we open the Yellow
Pages and there's 300 pizza places in New York City, and only one
delivers. And we think, 'Hmm, delivery, that's an interesting idea.'

And we call it and we go, 'Yeah, we'd like to order a pizza;' want to see
what it's going to be like. Guy says, 'Yeah we got about an hour and 45
minute wait right now.' The light bulb goes off. Pizza delivered fast. Right?
So that was the original slogan - you will recall - in fact, it was 'Delivered
in 30 minutes or it was free.' Remember that? The original slogan? Pizzas
delivered in 30 minutes or it's free. They didn't actually even change the
product, they just changed the buying criteria. The shifted the way we
think about how we buy. And pizza; the taste of it, became secondary to
delivery, didn't it.

Meaning, Dominoes was the one, that's it. $9 billion pizza from a slogan.
That shifted the way we think about how we can buy. So how can you take
my current buying criteria of what it is that you sell, and say it in a way
that I go, 'Well, that seems more important.' Here’s another example.
When it absolutely, positively has to be there overnight. Who can
remember - you probably can't remember, but I remember. In the 80's. It
never absolutely had to be there overnight, didn't have - Federal Express
was - (Laughter). We got Mike Basche here soon, right? He'll be able to tell
us, but it never had to be there overnight. And faxes just became popular
in the 80's, and they’ve been around since 1959. You know why they got
popular? Because one guy got in front of a whole room of fax
manufacturers; let's say you’re all fax manufacturers, and in the 50's, 60's
and 70's; and most of the 80's or in the beginning part of the 80's, you
had to have a Sony fax to fax. Anybody remember that? You got to be like
my age or older to remember that. You had to have a Panasonic fax to fax
back and forth, and somebody said, 'You guys are missing the boat.' Who
here wants to sell a million faxes next year? Everybody raise your hand.
He said, 'We got to make them compatible, where everybody can fax to
the same person, then we'll compete on different things.'

They did it; fax machines became the way. We all had to have it. So it
shifted the buying criteria, and that's what I challenge you to do, because
you can slaughter your competition, and just for the fun of it, here's the
rules for a slogan. A slogan should describe the product or service, unless
the name does. Domino's Pizza lets you know it's pizza, so you don’t need
to say 'Pizza delivered in 30 minutes or less.' A slogan should contain a
benefit. So what’s the benefit in 'Pizza delivered in 30 minutes or less?' It's
going to be fast. Pizza delivered in 30 minutes or less.

It should position your company above your competition. That did it for
both those guys; 'When it absolutely has to be there over night;' meaning
you can take chances with other overnight deliverers, but when it
absolutely has to be there, use Federal Express. Ideally, a slogan sets up a
buying criteria in which your product or service is the most logical choice.
And then I just give them again, but let's keep going. What other
important strategic objectives do you have for your stadium pitch? So
remember, you're walking out there, and now you know you already want
to drive people up the pyramid, you know you want to set up a buying
criteria in your favour. We know we want to make a sale so what else can
we do?

You want every prospect to think of having your product as a lot more
important. So some part of your stadium pitch should be to increase the
importance of your product or service. How do you do that with a shoe
store? How do you make people think shoes are more important. I'll tell
you exactly how; we show them, on the - we call it the shoe holoc-scale -
where you would fall, depending upon how many pairs of shoes you have,
and they show it to every single client. 'Hey, which one is you? Where are
you in the shoe holoc-scale?' And then we show them what the average
woman has in her closet, and what a woman who makes 50 grand a year
has in her closet, and what a woman who makes $100,000 a year has in
her closet; and some would say if you want to make $100,000 a year, you
better have this many shoes in your closet. (Laughter)

Hey, it’s a stretch, but we pitch it every time. Another strategic

objective; you want to heighten the interest and importance of your
product. Heighten the interest and importance of it, so again, the home-
schooling is a great example of that. Man, by the time they're done,
there’s just no way you want your child raised in the curriculum in regular
schools. Even if you don't want to home-school, you want to subsidize
your child's education with the products that they have, which for them,
was a mind-blower, and it's one of the things Jay brought to them.

It's like, 'Yeah we sell to home-schoolers.' 'No, no, no,no. you guys do a lot
more than that. Let's broaden your horizons. Let's appeal to the whole
pyramid.' And they understand it really well no; they're a real smart
group. Can you motivate your buyers to purchase more? Can you motivate
them to purchase more often? Those are your strategic objectives, like,
'What can I do?' We trained the carpet-cleaning customers to buy more
often. It was a strategic objective; we implemented it masterfully at the
tactical level, and now it's stabilized the company like never before. He
know, in January, he's going to have 2,000 people cleaning their carpets.
the other guys; they don’t know if anybody's going to clean their carpets
in January. You understand?

Okay, gold service totally pre-empted the competition. Here’s another

one; find out what the competitors - too complicated. How can you create
- (laughter). Nah, it's like - they cut me by a half hour so I'm going to make
sure I get through all this. How can you create brand loyalty at every turn?
That's a great strategic objective. So the carpet cleaning company, again,
they're desire was to create brand loyalty, and they do a wonderful job at
it, by showing you they’re the only EPA you know - not approved, but the
only one that has studied the EPA. And in fact, by the way, you call there
and they don’t say, 'This is us and we're great.' They say, 'Well, whether
you buy from us or not, let me just tell you the three or four things you
should really look for in a carpet cleaning company.' And then they set up
the buying criteria. You understand?

So every one of you here could say this. 'Look, whether you use me or not,
here's five things you should make sure you have in someone that's
providing this kind of service.' And then you set up the criteria. How can
your competitors compete? Imagine having this conversation with one of
these carpet cleaning guys, and you go, 'Okay, alright.' Then you get the
price and you get back on the phone with somebody else and you go,
'Well, do you guys comply with the EPA standards on internal - carpet
cleaning?' 'EPA standards? I didn’t know they had standards.' (Laughter)
'Thank you.' You know what I’m saying?

You set up the buying criteria, you cream your competitors. What are
strategic objectives? To make sure they never want to buy from anyone
else - I already said that. And then what are you going to do at the tactical
level to assure you're implementing it? I already said that yesterday; be
pig-headed and determined as heck. Make sure you're implementing at
the tactical level, it's really powerful. Have mandatory weekly meetings
without fail. Constantly install the three P's; that's how you have a great
company; that's how, like I said, you better hope none of your competitors
listens to all this stuff, because they will just - I think I even have a panel
on that.

Here's some more objectives. Do you want to be the most respected

company in your market place? If that's a strategic objective, that means
somewhere at the tactical level you've got to be doing something that
deserves their respect. You understand? Do you want to be the most
popular? I’ve run magazines and I can guarantee you I always ran the
most popular magazine in my industry. How do you be the most popular?
Throw the best parties. Hell, we bust people out to bars, we'd have a ball.
And we were the most popular. We'd walk onto the trade show floor, and
all the attendee of a trade show would be clamouring to my people,
because they knew we threw the best parties. It was a strategic objective
implemented at the tactical level, with as masterful degree of precision.
Most sought after for information. That's a great strategic position.

We used to, for my magazine, publish the only trade show calendar.
Otherwise if you came into the industry, you had to call all the different
trade shows and try and find out when this one - we published it. We'd call
the trade shows for them. And half of them were our competitors, because
most trade shows….are put on by magazines. And we published the thing,
so every media planner in the industry was calling us to get the trade
show magazine. Every company that came into our industry was calling us
to get that tradeshow calendar, and we got all the leads before anybody
else. So what are your pre-emptive ways of trying to be - this is a
wonderful strategic objective; most sought after for information. Be the
best supplier of information for your whole industry, including if it means
giving them information about your competition. Most educational; same
thing, really.

Other objectives. Build customer loyalty, generate referrals. If that's a

strategic objective, that means you need to be doing something a the
tactical level, and you heard like, what? 40 of them? How many different
referral ideas did you guys hear? It has to be executed at the tactical
level, if it's going to be - pre-emptive positioning. Okay, so this is another
one of those visuals that tells a huge story in one panel. It's one of those,
you wake up 3:00 - 'Ah! I’ve got it.'

Okay, so this is kind of like a summary of everything I’ve shown you so far.
So, what's your story? What's your stadium pitch - or I call it the core
story. What is the core story that you would tell every single customer if
you could get the chance, if you could accomplish all the things I’ve
already shown you? If you do that, you will kill, you will kill your
competitors. What's your strategic position as a result, because then
that's based upon market conditions? I'll be done in time. He's showing
me the sign.

Develop - crystalize the identity, which means that when it absolutely,

positively have to be there overnight, what's that actual slogan? Build a
great core story from the core story will become an awesome strategic
position, and then how can you succinctly summarize that strategic
position. Having clients instead of customers dictates a different approach
or business philosophy, because all your strategies will dictate a more
advanced business philosophy if you have clients, because they're under
your care, guidance and protection; means you need to be an expert, you
need to be the most educational.

As we've already said, set up a criteria in which your product or service is

the only logical choice, an then it's time to get customers. So these are
what I call the super strategies. Like, before you even think about getting
customers, these are your super strategies, all across the top. That’s like
'Let's get our plan before we deploy a single soldier. Before we deploy a
single bomb on the marketplace; before we do anything, let’s me ready;
like anybody comes up against us, they're going to get slaughtered.'

And then these are sub-strategies. Targeting buyers, stacked marketing,

testing concepts; teach you a concept called Seven [unclear 2:29]
marketing, setting up standards and procedures, causing constant
improvement, database marketing - that's all another seminar. Now
you're ready to deploy more specific marketing weapons, but let me give
you like a sub-strategy. So that one over there on the left; it says targeting
buyers, that's the last concept I’m going to give you. Targeting buyers,
stacked marketing - (mumbles). Just try to do this and not run out of time
for you guys.

Okay, so this is what I call targeting best buyers. Jay's referred to it

several times. A couple of other people have. It's called the Dream 100
sell. Who are the most ideal buyers, because this is so profound that I
have literally doubled the sales of every company who's listen to me -
smaller ones; you can't double Wells Fargo, and they don't listen to you
anyway. (Laughter) It's true. But the point is, a smaller company - now
small, I mean - I’ve helped $30 million companies double sales in a year,
just using this one concept. So you guys are three and four and five and
seven and ten, easy. And by the time I’m done, you'll know it's true.

So who are your moist ideal buyers? Let's see. Examples. Successful, they
have the money to spend if they want or need to. Let's do a profile right
now. What would be your ideal buyers; the dream clients that you'd want
to have? They want or need to buy. The geography; is that important? Do
they need to be in a specific place? Size of sale. When they buy, they can
buy big time. Repetition of purchase, meaning there's people who are
going to buy frequently. So who are your most ideal buyers? Let me get
that microphone again. Hello? No, just kidding. What kind of company do
you have?

Man 1: Marketing consultant.

Chet: Marketing consulting. Pass the mike back. I want to get a specific
example. I'll come back to you - several of you. What kind of company do
you have? [Inaudible 2:28

7]. (Audience member says, 'The mike is not working.) Okay, business
immigration, immigration attorney. Okay, I can do a nice job for you. Pass
it back. What kind of business are you in?

Man 2: Direct sales.

Chet: What?
Man 2: Direct sales.

Chet: Sorry?

Man 2: Direct sales.

Chet: Direct sales. Okay, thanks. Pass it back.

Man 3: Software and marketing.

Chet: Okay, so are you an entrepreneur, independent owner, or you work

for a bigger company?

Man 3: It's a combination of the two. I represent a software program for

another company, and then I do the marketing consultant...

Chet: Okay, so in that software that you sell, how many total potential
buyers are there?

Man 3: I manage a twelve state region. In my twelve states I’ve got a

database of about 25,000.

Chet: Potential? Who are the dream ones? How many dream ones are
there? Like the most ideal of that 25,000?

Man 3: Within the 25,000, when you break it down; within the industry,
the majority of the agencies are around five, six users. 20% would not be
our group that we would go after for the software program. Those would
be your 1500 users. We would be looking for the smaller agencies.

Chet: Okay, so you're after small ones.

Man 3: 75 and under.

Chet: Okay, pass it back.

Man 4: I’m a chiropractor.

Chet: Okay, I'll work on you too. Pass it back. I'll adjust you later. No, I’m
just kidding. (Laughter)

Man 5: Small business coach.

Chet: Okay, pass it back.

Woman 2: One stop engineering and manufacturing of your product.

Chet: Okay, pass the mike back up. Alright so, I’ll just try to make
examples of that, but I was trying to find somebody who has a specific
situation, which I'll show you one right now, okay. I took over a magazine.
There were 2000 potential advertisers in the database, and the previous
publisher of the magazine hadn't gone after all 2000 all the time, and I did
an analysis and its Fran Tarketon's 95/5 percent rule; it was absolutely
right. 167 of these guys bought 95% of the advertising in the industry.
Forget the rest. We didn't even want - twice a year we'd mail to them. But
that 167 who had virtually never heard from me were now hearing from us
twice a month at least, some of them three, four times a month. So the
whole concept of the Dream 100 is usually there's a smaller number of
potential buyers that can buy a lot more. Every market has a smaller
number.

Now, if I were a chiropractor, or a - if I were an immigration attorney or if I

were a financial planner, your Dream 100 are people who can really
afford whatever it is you want to sell. Chiropractor; if I wanted to become
famous a chiropractor, or a dentist or - there's a lot of professionals in the
field, I would target the best neighbourhoods in my marketplace. I'd target
the people who can absolutely afford to buy what it is. I just gave this
speech at a big dental convention; there’s a bunch of dentists in the
audience. But you guys heard me say this; my neighbourhood, every
single house in the neighbourhood - I got complaints about this same -
saying I was bragging. I’m not bragging, I’m just trying to make a point -
is, they’re expensive homes and so the real estate broker that we're
using; because now we're looking to move to a different neighbourhood;
she decided once upon a time she'd going to target these 2400 homes in
this one particular area, and every month we'd get something from her.
And so she has what I call 'top of mind awareness.'

So when we were ready to buy, I went right to this woman. I wouldn’t even
think about anybody else, because for 10 years, I’ve been getting these
flyers. And then she comes in and she shows me her book in the
neighbourhood, and she's paging through it and there's every single
house, practically, in the neighbourhood has been sold by her. Once;
many of them two and three times. Who would you list your house with?
So she took the Dream 100 now - again, if you want to make yourself
famous, as q chiropractor, you'd go to the mayor, you’d go to the CEO's of
the biggest companies, you'd go to - so sometimes the Dream 100 is
particular influential people, more than it is a particular company,
depending upon what it is.

So, like a fellow came up to me yesterday, and he's trying to establish

himself as a physical fitness guru. He wants to have a whole chain, blah,
blah, blah. Target celebrities, offer it for free for three months, or target
the CEO's of the biggest companies, target political figures. So Dream 100
means the people who can make you famous. Because when other best
buyers buy, other best - best buyers help you gain faster social
acceptance. So when we started getting some of the bigger advertisers in
this particular niche where we had none when I got there, all the others
started looking: 'Oh, my competitors are there.' And before you know it,
we had - that's one of the magazines I double the sales in 15 months, and
then I doubled it three more years in a row.

You had to see Charlie Munger, billionaire, looking at me like, 'Nobody -' he
literally said to me, 'Are you sure we’re not lying, cheating or stealing,
because nobody doubles business three years in a row.' (Laughter) So -
this is exactly what he sounds like, too. And he just couldn't fathom it. He
couldn’t fathom it. But it was Dream 100 sell, and these guys were just in
their face. So this is just an example, I shall skip over. But this is - these
are law firms and I had a client that sold law books, which you have no
idea how huge that business is, because lawyers got to have law books.
And unfortunately, there’s way too many lawyers, and they continually
create more law, so there's more law books all the time.

And every other law book salesperson is down here in the [unclear 3:35];
you see it says 'Librarian' down there, and 'Acquisition Directors?' And
they lost their ability to sell at the managing partner level, so I put
together a stadium pitch. We called it 'Free orientation on the five most
dangerous trends facing law firms,' and then we called the top five law
firms in the community. We said, 'Yeah, we're over at Scatton Arps
presenting this, and we're over at Munger Talls presenting this, and we're
over at - we just thought you guys might want to see it.' And when you
start talking about how your competitors are seeing this free seminars on
the five most dangerous trends, that everybody wants to see it. You
understand

It's creating greater social acceptance. So mark your marketing calendar.

What are you going to do to market to your Dream 100 every single
month without fail? And think about this, guys. 167 people. How much
would it cost you to write them a letter twice a week? Twice a month,
rather. $100 a pop. So the beauty of it is, that while you're doing
everything else you're doing, pick your dream clients and decide that
you're just going to hit them every single month. And a year from now,
every one of them will know who you are. And how much did you spend?
$100 a month. It's the least expensive, most impactful think that you can
do. That's how I've taken companies and doubled their sales.

I’ve got a client who - he also shares as a client - Andy Sears is a client.
Telecoms systems company, and they've been going after every single
person who buys telephones in their area, and they've had thousands of
clients; little, 22 phones here, 14 phones here. Like, 90% of their clients
are little tiny companies. I said, 'Forget them.' So we built a database of
companies with a hundred or more phone systems, and in six weeks I got
them more business in paly than they did all last year in their whole
annual sales. Because every single prospect is a dream 100 client. So
every deal that they got - and remember, there's always people buying
now. So just by hitting that list hard, we hit them six times in six weeks- I
think I actually say it here. So how do you go from 'I never heard of this
company,' to 'Who's this company I’ve been hearing about?' to 'I think I’ve
heard of that company,' to 'Yes, I’ve heard of that company,' to 'Yes, I do
business with that company.? It's just consistency, and you need to make
a concerted effort. But this is what's amazing to me. This is so obvious, it’s
so clear, it's so easy; and yet you’ll come out of here and not do it, and it
could just double your sales. I know, I've got three minutes left, right? He's
giving me the evil stare.

So there's virtually no-one you can't reach. Recent practical

applications....more dream 100 thinking. Since the Dream 100 is a much
smaller number, usually, you can do much more. So the other thing we do
is send them a gift. By the way, if you guys have not discovered
orientaltrading.com, you can go to this website, right? And you can buy
cheap crap by the tons, it's so cheap. You get flashlights, 12 of them for
$4. With the battery. (Laughter) I’m serious. So you take the flashlight and
you buy a hundred of them, and you send them to your clients and you
say, 'Use this flashlight to light your way toward better financial planning.'
And they go, 'Oh cool, a flashlight.' And he throws the letter away but he
keeps the flashlight. Then next week he gets a whistle with a little
bracelet thing - I know, because we just bought 700 of them for $172.
(Laughter) 700. 'Use this whistle to blow off your current provider of such-
and-such, because...' 'Blow the whistle on your current provider.'

So every single month, send a gift, send a charge key, send an

educational tape, send a report; and there's none in the world that within
three months, they don’t know who you are. I’m telling you. We’ve got it
now; we're starting to get a point, and its left and right with companies,
left and right. And even cases where the guy goes, 'I’ve got every one of
your promo pieces, I’ve got every one of your gifts, and when I’m ready to
buy, I’m telling you right now, I’m coning to you.' (Laughter) They'll tell
you that, because they’re impressed with it. You know why? Because
nobody else does it, and it's so simple. I almost don’t want to give it away
so you don’t end up competing with all your - all your competitors start
giving away whistles and - go to orientaltrading,com. I wish I owned
apiece of that company; I've just never seen anything so cheap.
Stand out in the crowd. Send them a gift every single month, invite them
on mass teleconferences; great concept, which I don't have any time to
teach. What’s it say? Interview them for your magazine - oh you don't
have a magazine? Real easy today; you can have an e-zine. Should have
an e-zine for your industry, and every client I have has one, including our
shared client there that you know, Andy. They now have a magazine.
Superior access fee, [unclear 2:34], making the sale easier. What's easy to
sell than what you sell? What's real easy to sell? Like, it's hard for you to
call me up and say, 'Hey I do financial planning.' That's hard sale to make.
So ask yourself the question, 'Well, what's an easy sale to make? 'Hi, I do
a free seminar on financial planning.' That's easy. So the next question is,
'What's free, and easy to sell?' Because you've got to sell it no matter
what it is, so let's make it something real simple. Don’t try to sell your
whole - I stop clients all the time trying to make the big sale. Let’s make a
tiny little sale and get in there. Something small.

Some ideas for superior access, free education, those are examples which
I’m not going to have time for. Free audio tape that teaches them how to
succeed. Jay and I have done some wonderful deals there, where we'll
actually interview the owner of the company, and they’ll teach them - out
of time, right? What could you sell? Blah, Blah, blah. Okay, summarizing
my two sessions. Last three panels.

Be the strategist long before you move out your tactics. Make you tactics
work much harder, plan before you execute, think before you leap. You
can just see it guys; if you just stop and think a little bit, you could just
slaughter your competition. Hold regularly scheduled meetings at least
weekly, with each area where you want improvement. Put it on the
whiteboard and say, 'I want three ideas to make this better,' from you
staff, and if you don’t have a staff, put on the whiteboard and say to
yourself, 'I want three ideas to make this better,' then put a policy around
it, a procedure around it, and start implementing it as if you have ten
people. Keep memos. Every single time you have one of those meetings,
you keep a memo and so you can actually have 52 weeks; you're going to
have 52 pages. Anybody comes into your company, they can read 52
pages and know everything you've done in the last year to improve the
company.

It's just so beautiful. Let’s see. Set the buying criteria. It's way more
strategic and powerful if market factors are presented before you ever
present your product or service. Find superior access vehicles that give
you easier access. Dream 100 are the best buyers, man. Fastest, easiest
way to grow your company. Again, the real secret; be pig-headed about
implementation. The thing you better hope never happens - I’ve said it
five times - you better hope your competitor never does this, because
they will absolutely slaughter you. It's the guy who's more strategic will
kill the tactical executive any day of the week. So you will absolutely
slaughter them if you're strat3egic enough to do these things. This is the
kind of muscle you need to get to a hundred million.

Jay, without his suit. (Laughter) How did that get on there? Thank you, I’m
done. (Applause) Ah, thank you. (Music plays) Thank you very much.
Thanks. Honoured to meet you, honoured to meet you.

Rick:...couple of minutes. As you can see, you were [unclear 5:36] mind
opening, mind blowing segment of the event. Now we’re into something
even more powerful, which is the concept of strategy.

We're trying really hard, I know. So imagine that for one hour, you got to
listen to, take notes from one of the engineers of the FedEx Express group.
And imagine that that person was on the front line, in the trenches, as the
[unclear 00:42]. ...also to the innovations as a part of that endeavour. But
- and I don’t know whether he's going to talk about that today or not, but
it's an interesting concept to be able to spend an hour with the man with
that level of insight, and experience. So with that said, I’d like to introduce
one of my favorite Jay Abraham associates, Mike Basch. (Applause and
cheering)

Mike: Thanks Rick. Thank you. Hello. (Audience replies ,'Hello') Are you
having fun yet? (Yeah!) I didn't hear you. (Yeah). Oh this crowd's go to get
lively. Are you having fun yet? (Yeah!) Alright. I got to tell you , I’m
embarrassed to get up here and say this, but I’ve sold out. I’m a
prostitute. (Laughter) Guy came up to me - Dan O'day, where are you?
Everybody see Dan O'day back there? He's an expert in radio advertising,
and he came up to me at some point, and he said, 'Look Mike, I'll give you
a dollar if you refer me during the conference and during your talk.'
(Laughter) And worse yet, he didn't even give me the dollar yet, I had to
get up and do it before he gives me the dollar. (Laughter)

Now, did I do that because I wanted the dollar, or needed it? No, I did it
because he's creatively - he's thinking about what's going on in this
conference. (Laughter) Thank you Dan. (Applause) He's thinking about
what's going on in this conference, and figuring out how to creatively
apply it. And he applied it. Isn't that terrific? Congratulations for being
here. I’ve been to a lot of Jay's conferences. This, to me, is the best that
I’ve been to so far. I got to tell you, it goes back - I don’t know how many
years; 10 years. I paid $25,000 to come to Jay's conference, and one
thing. That’s all I took out of it when I first started. That paid for it. I think I
closed like $150,000 business two weeks later.
I had been given speeches or tech talks the executive committee, which is
groups of CEO's around the world; there's like 3000 groups, and I’ve been
giving two, three a week - there's a tech member, thank you very much,
I’ve been giving two or three a week, or actually two or three a month,
four a month. And I’d give like 10 tech talks before I’d get any consulting
business. At the time I was in consulting. Came to Jay's conference; it was
after I'd left Federal Express. Came to Jay’s conference, and I just heard
one thing. Risk reversal. You heard it.

And Jay has a special twist to it, because he includes the benefit in the risk
reversal. So I'd give a three hour tech talk, and I gave many, many of
them, and as I say, one out of very many then when I get some business.
Went to Milwaukee, gave a tech talk - I only changed - in three hours -
two things. I came up with a USP and it was a little unique, but more
importantly, about halfway through, I said, 'Look, give me eight of your
employees, and if they won’t show you how to incredibly improve your
customer service, don’t pay me a thing.' so it was about getting
employees together to solve the customer problems. I'll explain why I took
that approach.

I closed Harley Davidson, a major hospital in Milwaukee and a major

insurance company in that one session. That paid eventually; it was like
$300,000 worth of business, but that paid for Jay Abraham. Then there’s
another story. Guy named David Leopard. He came here - he came to
Work out - no, came to one of the Mastermind programs, and he came
about six years ago. He's a drywall salesman. And he then - he heard me
speak, he heard a lot of people speak, and so what - but any rate, we
ended up with a day together, and I helped him - he had a concept, an
idea. And the idea was, 'Let’s form a cooperative of drywall distributers.'
He was a drywall salesman selling to distributors. He knew that when he
sold to Home Depot, that they got a much better discount than the
smaller distributors.

So he said, 'Let's start a co-operative, where we joint these distributors

together, and we give them a discount so they can compete against the
Home Depots of the world.' At that time, when he came up to see me in
Vermont where I live, he drove up in his Volkswagen bus, he was kind of
trying to sign members on the way. He was camping out in the bus,
because he didn’t have enough money for airfare, hotel, and he made his
way. Today he’s driving a - actually his wife's driving a Lincoln Navigator;
he's driving a BMW. And he this year will return $14 million to his 120 co-
op members. At the same time, he got me involved throughout, and we
started - he started a company called Co-operative Solutions. It's a
company that basically forms cooperatives, and if you don’t know what a
cooperative is, to me it’s the best model of today's age.

I believe that the small business person has a franchise in this country
that I hope never goes away. I've worked for big companies, I’ve worked
for small companies, and I love the passion of the small business, and you
all fit that mould. And what the cooperative does is it allows you to
compete against the big business. It's interesting that today; David’s
company called Hammer Rock is cooperative. Actually accounts for 12% of
the drywall sales in America, compared to Home Depot's 5%. Who do you
think gets a better price? It's good stuff.

Now, one of the cooperatives he formed was Ya-Ya Bike. It's a cooperative
of bike stores. I’m the CEO of a Ya-Ya Bike. David got me so excited about
the model, he said - timing was right - 'Come on board and run one of our
cooperatives.' So I'll talk a little bit about that in a minute. Before I get
started on customer culture, which I’m going to talk about in just a
moment, I’d like to tell you a story. It's a story about two woodchoppers in
a Northern Minnesota community. And these guys had been chopping
wood all their lives, and they were in a bar. And the way guy was Paul
Bunion. Huge man, incredible wood chopping skills, and the other guy was
a small wiry guy. And the small wiry guy had lived in that town all his life,
and Paul Bunion had all the press. He was by far and away, respected as
the best wood -chopper in town. So the little guy goes up to Paul Bunion,
and he says, 'Paul, I can whip you. I can chop more wood any day than
you can. I challenge you to a contest.' So they decided on the contest the
next day. From 8-5 they both chopped wood; they'd have people carry it
away, and then at the end of the day, whoever had the biggest pile own.
So they start the next morning. Paul Bunion's going, 'Whoom!' And the
chips are flying, and they're huge chips and he’s incredibly powerful. And
the little guy's small; he's wiry, and he's very quick - little chips are flying
everywhere. And about - an hour goes by; it's about 9:00. And the little
guy takes a break. He goes away for 10 minutes; goes into the wood
shop., or whatever building was there. And Paul says, 'I got it now.; And he
just keeps - 'I'll just go all day, he doesn’t have the stamina to keep up
with me, so I’ll go all day. I won't take lunch, I won't -' and he keeps
chopping.

The little guy comes out about 9, 10, chops for another 50 minutes; takes
another break. Does that all day long. Lunchtime, take a break. goes into
the wood shop. End of the day, 5:00 comes. They both go around the side
of the building to see who's got the biggest pile, and the little guy has got
the biggest pile. Paul Bunion goes to him, he said, 'What did you do? How
did you win?' And he said, 'You know when I was taking those breaks?'
'Yeah.' 'I was in the wood shed sharpening my axe.' (Audience says,
'Oooh.') And isn't that what these types of things, and this is about? Is
sharpening your axe. Or better yet, getting a chainsaw. (Laughter)

And that's what it's about. So we're going to - you know, there's so much
you can get out of this, but I again, you've heard it before. My belief is,
you take one idea, like I did, just risk reversal. Take one idea, try it, that
gets you success - enough success to pay for it, and then you take other
ideas that you've got to move with. Now....whoops. The wrong button.
Should be okay. For some reason my slide show is not turning into a
slideshow. I could do the - I could just put this thing on the thing and go
through it. Ahh, new show. Excuse me a minute, while I...work this out.
Yeah, no the monitor’s fine. That's fine too, as long as I could have the
ability to show the show. Could you come up here and give me a shot?
First time I’ve had this problem.

At any rate, what I’m going to talk about today is customer culture. My
opinion: culture drives everything. What do I mean by culture? I mean, it's
how we think, it's how your employees think. One of the things we did at
Federal Express in the beginning, is we created a customer culture, and I’ll
talk a little bit about how we were able to do that. It was done mostly by
accident, rather than design. I'm going to talk about Patty Lund in more
depth. You heard tha interview with Jay, and Patty has developed what I
consider the best customer culture in the world. Now, I haven't been to all
businesses, so some of you may have a better one; but he's got great one.
He's got what the calls' the happiness-centred business.' He said the goal
of life was happiness; let's create a business where we can be happy and
our clients can be happy.

You want to - what if you quit out of - okay. Isn’t technology fun? No, that
won't do it. Quit out of the - it's the application that's giving us the trouble.
There we go. Everybody stand up a minute. (Laughter) Twist and turn or
do whatever we need - could we have some music while we get this fixed,
please? (Chatting between Mike and Rick)

Okay, we're ready. How many of you have read the book 'Even Elephants
can Dance?' Anybody? Even Elephants can Dance, by Louis Gertsner?
Great book. Now, I'm in a small business now, I’m not in a big giant
business, but I’ll tell you Lou Gerstner has basically turned around the
biggest giant in the world, and totally got them back on track
strategically, and then tactically, so they're back in the leadership position
they were in years ago. And the book tells how. This is one of his
comments in the book. 'I came to see, in my time at IBM, that culture isn't
just one aspect of the game, it is the game.'
In the end, an organization is nothing more than collective capacity of its
people, to create value. So that's what we're going to talk about. How do
you do that? Here's my definition of customer culture; and I’d use client,
and I thought a lot about using client, but client in Jay's lexicon and
anybody who works with Jay, understands the difference between client
and customer. Most people don't. so my book is entitled, 'Customer
Culture.'

It's an environment where the natural focus is on meeting the needs of

your external customers. Now, what do I mean by that? I mean, the janitor
cleans the floors so that when your customers come into your building or
your shop or whatever else it is, you've created an image of
professionalism. The people who answer the phone create an image and a
smile in their voice or whatever is required in your business, to focus on
that customer. Everything's focused on the external customer. Now with
that definition, how many of you now believe you have a customer culture
in your business? Good. More than usual. Thank you.

So we're going to talk about it - that’s what it is. How many of you would
like to have a customer culture in your business? Okay. And by customer
culture, I mean if you're a one man person, or a one person show, it's the
same thing. Now, I am going to cover several things. How FedEx achieved
a customer culture. I identifying and meeting customer needs. Little bit
different than you've seen so far in terms of how you see, how you view
what those needs or wants are. As Jacquie said, benchmarking well-known
companies; customer culture system. Steps to building it and then finally,
a wrap-up.

Now, I want you to go back with me 30 years. Man y of you have probably
heard this story, or heard tapes of it. March 12th 1973 is when new
started Federal Express officially. I had been with the company 6 months
before that. Joined September 20th 1972. And we had worked - I was
senior vice president of Sales and Customer Service. My job was to sell
and also do the pickup and delivery. So I spent three months hiring, and
we started doing, in January 2ns; we started selling, the 28 salespeople in
10 cities. Basically from St. Lois, Missouri, down to Jacksonville, Florida,
and Memphis, and Little Rock, Arkansas, and Atlanta, Georgia, and those
kind of cities.

And basically, we'd been selling for two and a half months and expected
for a while about the middle - and I have a conference called every day.
We'd expect that I’d have a flip chart, and I’d record all the packages we
were going to get, and the volume was - we're going to do 3,000 packages
that first night. That was really good. Except for one thing. We had little
airplanes, because we had to fly under an exclusion - I don't know whether
you know it or not, but Fred Smith single-handedly- the founder of FedEx -
deregulated all transportation in the United States by going to Congress
and de-regulating air first and then trucking came late.

So at any rate, we had to fly these little airplanes; they held 300 packages
each. They were an executive jet, that we converted into a cargo plane.
And we had basically ten - we had bought 23; God knows how, because
we didn’t have any money; but Fred - you know, we talked - Brian talked
yesterday about everybody's a sales person. Fred Smith is the ultimate,
consummate salesperson. So he convinced General Electric to not only
buy these jets but 500.000 a copy to make them into carbon. It would
have cost him another 500,000 to make them back into executive jets, but
he convinced them.

So anyway, we had 23; we had 10 in service. Those 10 in service; six of

them were for working with a post office, and we had basically three
dedicated to this thing that would start March 12th; this package service.
So 3,000 packages; each one will only hold 300, so that wasn’t going to
work very well, so we had to - you know, if I believed the 3000, that
means I’d have to take all 10 jets and put them into service, assuming we
could fill them all up and do the first day and serve the customer. So I
started asking more in-depth questions, and I found out that sometimes
sales people lied to you. (Laughter)

They tell you what you want to hear. Like, I asked a guy in Memphis, and
he said, 'This guy's going to give us 20 packages a day.' I said, 'That's
terrific. What business is it?' He said, 'Bricks. He makes bricks.' I said,
'You're going to ship the bricks to architects?' And he said, 'No, he's going
to ship them to the construction sites.' I said, 'Somebody's going to pay
$100 to bring five bricks to a construction site? I don't think so.' (Laughter)

So, we got it down, through those questions, down to three- we're going to
have 300 the first night. Perfect. Fred Smith, myself, others; had been
thrown out - and we'd talked to venture capitalists already, but all of them
said the same thing. 'Look, this is a great concept, maybe, I don't know.'
They'd kind of snicker. And they said, 'But when you get into business,
come on back. When you can prove customer's really going to do
something - ' because as Chet said, back then, who cared about overnight
service? Nobody. Because the habit was - it's called known problem,
unknown solution. Do you know what I mean? I got a problem; sometimes
I want to move things in a hurry but there's no way to do it, so that
problem's in the back of my head. So, latent need, so to speak. And that
was the need back in 1973 of overnight package service. So, - 'When you
get into business, come tell us, and you can prove the customer need.' So,
okay.

So a bunch of us, lawyers, Fred, myself, Roger Frock, the general

manager; we all went to New York City that day, March 12th. We had
appointments all over New York City the next day with venture capitalists.
We're in business now, we've got 300 packages the first night, we're all
excited - 'Now invest with us.' We had about 30 days cash left, and we're
out of business; we're out of cash. So we get up to New York, got into the
Yellow Club, where Fred was a member, and signed in and I went up to the
room and called down to Memphis. And I said, 'John, what’s the package
count?' He said, 'Are you sitting down?' I said, 'Should I be?' He said, 'Well,
there’s good news and bad news.' I said, 'Give me the good news first.' He
said, 'Six.' 'Six what, John?' 'Six packages.' I said, 'John, what could be the
bad news?' He said, 'Four of them were from salesman and only two from
customers.' (Laughter and groaning)

Now, can you imagine - talk about mind-set, right? Going to see investors
the next day, and convincing them they ought to invest in this bust. Talk
about dot bomb; this was FedEx bomb. In fact, a while later, about 6
months later, I think, Business Week ran an article: 'Federal Express takes
a nose dive.' They should have been there that first night. (Laughter)
Because if you can picture this; we used a lot of Jay's techniques then. We
had the Wall Street Journal down in Memphis, we had local TV, America
had a new airing; first new airline in 20 years, and then all kinds of press,
and then we come up and say - you know what, if you can imagine these
two airplanes, and the hub ant he equipment and the lights at night, and
everybody's out there, and the pilot lands and said, 'Here's the package.'
(Laughter)

Incredible. Counting the car - we got in the cab to go - oh, and then I went
down to Fred’s room, and I said, 'Fred, here's the good news and bad
news.' And he said, 'How's your resume look?' (Laughter) He said, 'We're
both going to get our resumes out and see what we're going to do next.'
You know, we talked - I think it was Brian that said you've got to fail so
many times before you succeed. I remember they asked - somebody
asked David Glass, the CEO of Wal-Mart, how would you describe [unclear
7:35]? And I said, 'What made him so rich, and so powerful, and so -?' And
he said, 'He could lay off at failure.'

He said, 'The first store we opened,' he said, 'It was like a 110 degrees
out, we had watermelons all over the place; nobody showed up to the
store. The watermelon's exploded because of the heat. It was a total
disaster.' (Laughter) And Sam comes in the next day; he said, 'Okay, that
didn't work, what do we do next?' And that was Fred, by the next morning.
He said, 'Okay, fix [unclear 8:02]. We're in the trenches now, let’s make it
happen.' So we went out and we got kicked out of more venture capitalists
that day than ever, I mean, they kind of snickered when we said - they
said 'Well, how many packages have you had? You told us you could -'
'Six.' We fudged that a little bit. We said six.

So the problem was we saw right away, we didn’t have enough synergy,
you know what I mean? People had to sort their packages out, and we
only had 10 cities. So we got to open up 15 more cities in basically 15
days. So we took four people, put them on a [unclear 8:31], and their job
was to go to a city that day, open it up, go to the next city, open up; go to
the next city, and so forth. Oh by the way, Friday of that first work, one of
the lawyers said to me that next morning; Tuesday morning, March 13th -
he said, 'Take heart. Nobody wants to do something the first night. By
Friday, you’ll be up to 30 packages.' Well, Friday that week, we had one
package. (Laughter) I figure that package cost us $500,000 to move, so
somebody got a lot of value out of that. If you consider value what it
costs.

So at any rate, we opened up all these cities, and we had four people at a
[unclear 9:06]. And they would land at Rochester, New York - in fact
Chicago, Boston, New York City, Rochester [unclear 9:12], Xerox and all
these cities, and they'd fly in. One person would go take care of the plane;
'Where are we going to fuel it, where are we going to park it? We're going
to unload the freight.' One person find a place for the trucks, another
person, the pilot, would actually find a hotel for the people. And then the
fourth guy went to a bar - a pub. And he'd go during happy hour, and
when things got really wild, about 7:00 at night, he'd go, 'Ding, ding, ding,
ding.' He'd stand up on the chair. Said, 'Everybody could I have your
attention please? Anybody here need a job? We're hiring tonight?' And
people would literally come to his table, sign an application; we'd hire
them.

Hire fast, fire fast. (Laughter) Anybody know who Christos Kotsakis is? He's
the CEO of E-Train. Christos Kotsakis was hired that way at Federal Express
as a cargo handler, in one of those early day things. So one of the cities,
we wanted to open up. And by the way, we had - that first week, a vision
was formulated. I’m not sure where it came from. Very profound, well-
articulated vision. It went like this. 'Get the packages!' (Laughter) Because
if we had the packages, we could succeed. We’d get investors; we'd get
anything we need. We had to get the packages. And what I learned in
those days about customer culture is that when you're clear about the
vision. And when there aren’t too many rules getting in people's way; and
I’m going to talk about that in a minute; that people will do go about and
beyond to produce what you want to do.

Now, that said, each person will look at the vision in their own particular
way, and deliver it in their own particular way. But that's what builds
incredible customer loyalty and employee loyalty. That was the big lesson.
And the way I learned it, was this - we opened up now; we've got 25 cities.
Now by the time we got the 25 cities opened up - now this April 18th,
about a month later; we did have about 40 packages a night. One of the
cities we opened up was a city in Indiana; Wilmington, Indiana. And that
city or town, it basically was, only had one potential customer for us. That
was RCA. We'd called on RCA corporate, and it said that plant had 20
packages a day into the other 24 cities. So the idea was to get the
packages - but they warned us - they said, 'If you fly a plane in there, it's a
local decision. We're not going to influence it, we're just telling you what
they have and if you can get it, it's yours.' So we scheduled a plane to get
in there. Only customer there.

So I sent a guy in - salesman in, and I said, 'Look, all you got to do is get
the packages from RCA. Do whatever you have to do; get the packages
from RCA.' so he goes to RCA and first day, 'I said, call me every day until
you get them.' Calls me up about 4:00 in the afternoon, and he said,
'Mike, the guy’s not going to see me.' I said, 'What do you mean he's not
going to see you?' 'Well, the traffic manager's not going to see me. I said I
was from Federal Express, and he doesn't know who we are; he's not
going to see me.' And so I said, 'John, do you have a good book?' He said,
'Yeah.' I said, 'Go in tomorrow, tell them you're going to be there for the
next month if you have to be, but you're going to sit in the lobby; you're
going to read your book until this guy sees you.' 'Okay, I'll try that.'

Calls me up the next day: 'He saw me; he's not going to use us.' I said,
'What do you mean he's not going to use us? You offer him free packages?
Did you offer - ' He said, 'He doesn’t trust us. Everybody says they have
overnight service, they don’t deliver.' I said, 'Did you tell him about the
hub?' 'Yeah, I told him. He doesn't believe us; he just doesn’t trust us. He's
not going to use us.' I said, 'And you offered him free boxes, where they
could test it?' 'Mike, he's not going to use us.' 'Okay. John, go to Boston.'

So John goes to Boston. About two weeks later, we had a clerk named
Diane. And Diane's job was tracing. Diane's job was telemarketing,
because if you can imagine 40 packages, 300 employees; you shouldn't
need a lot of tracing, right? (Laughter) You'll - employ you by packages,
right? If you screw it up, you’ve really had a lot of people in the chain
screw it up. So Diane's making outbound calls, she gets a tracing call two
weeks after we open up this Wilmington, Indiana. She gets a call from
Wilmington about 3:30 on a Friday afternoon. And she answers the phone;
first tracing call. And we had an exception system if they package wasn't
where it belonged, it was written up on a sheet and given to us, and we'd -
I invented the barcode tracing system later, to solve that problem.

But at any rate, she got this call, and the woman’s crying on the other
end. She said, 'I don’t know who you are; I’ve never heard of Federal
Express. All I know is my wedding dress was in Jacksonville, Florida
yesterday; supposed to be here by noon today. It's not here, I’m getting
married tomorrow. This is a small town. It's the social event of the reason
for us in the small town. More importantly it's a social event of my life.
Can you help me?' And Diane was a mother and related, and so forth, and
said, 'I'll do what I can.' So she looked at here exception sheets; they
weren't there. So she used the back-up tracing system to call everybody
and find out if they got a package that doesn't belong to - (Laughter). So
25 cities, you could do that. So about the 12th city she called was Detroit.
'Yeah, we got this package for this Indiana - it's probably - the only
package I’ve ever seen for Wilmington, Indiana. But we got it.

Diane didn't have anybody to ask. So she took it upon herself to charter
an airplane. A Cessna, a pilot; put the wedding dress on it, and get it down
to Wilmington, Indiana. It's cool now; it wasn't cool then. (Laughter) So,
she gets the package in. The woman, that Monday morning, calls her up
from Mexico. The woman's on her - and back in those days, it was not
easy to make a call from Mexico. Calls up Diane, thanks her profusely for
this service, told her about the wedding. And then she says, 'Is there any
manager I can talk to there, because I’d like to relate this experience?' So
I get this call. 'Mr Basch, let me tell you what happened.' And she explains
it to me, and I’m writing a note to myself, "Talk to Diane." (Laughter) You
know, we can't be chartering planes for every package. So she goes on
and she says, 'Mr Basch, I got to tell you. There's good news and bad
news.' I said, 'What's that?' 'Well, the good news is, I got the wedding
dress.' I said, 'What was the bad news? Was it wrinkled? 'No, it was
wrinkled but ironed it; that's not a problem.' She said, 'The bad news was,
I wasn't the subject of attention at my own wedding. Everybody’s talking
about his outrageous airline that has a plane for my wedding dress. I told
one person, everybody else was telling everybody else. Pretty soon,
there's a buzz going around everywhere.'

So okay, that's cool, but still, I came from UPS. I mean, UPS doesn’t do
those things. (Laughter) Especially in those days; they do now, because
Federal Express is in the business. So I go down to Diane. I said, 'Diane,
tell me why you did this. I mean, we can't afford $300 for every package
that gets mis-rounded.' And she said, 'Look, you said get the packages.
And now what we been saying? Get the packages. Well, to me, the way
you get the packages, you give outrageously good service to a customer
that's got a problem, and they'll tell others and you get more packages.'
Makes sense doesn't it? Not to me it didn’t. (Laughter)

So I'm pressing here, right. I'm saying 'Diane, come on. I hear that and
that's fluff, and I don’t think we can afford that.' And Diane, out of total
frustration, said, 'Well, we're going bankrupt anyway, what's the
difference?' (Laughter) Oh, we did it again. I guess when it goes on, I
should have set the computer to - but anyway - okay, so then we had to
move. This time I guess I’d better keep at it. So we had to move. We had -
and that summer was so interesting to me, because Diane was just one
example of literally hundreds of people that did that kind of things for
customers. Now what happened as a result of that; didn't make sense to
me; but two weeks later, we got the 20 packages from RCA. Two weeks
later we got two or three packages. And then more, and then more. In
about three weeks we had the 20 packages from RCA.

So what happened? Obviously word of mouth caught hold; somebody

went back to that traffic manager, say, 'Have you tried Federal Express?'
'No, I haven’t.' 'Well, would you try them?' 'Yes I will.' The service worked
and they used it. And what I found, during that summer - we didn’t get
cash. Remember, I said we had 30 days cash left? We didn’t get cash in
that company until November of that year. Unbelievable. I saw Fred Smith
give up twice in his career. And he was the guy – we’d all give up; all the
senior managers; we'd all give up once a week. (Laughter) Fred would say,
'Get back - fix [unclear 18:15],' and he'd keep up us pumped up. But he
gave up twice. First time was July of 1973. Out of money; we are bankrupt.
Basically that was just - that was it. And the accountants and lawyers had
gotten together; the creditors are coming down around their head and
shoulders; Fred gave up. On a Friday afternoon. And Saturday morning,
one of our lawyers went to him and said, 'Fred, I got one shot for you.
Henry Crown. Majority shareholder of General Dynamics. He can do it.'

Do it means open up a bank on Saturday, get a cashier’s cheque and have

it at our bank at opening of business Monday morning in Memphis,
Tennessee. 'So Fred, you got an hour? The guys' never heard of you, he’s
never heard of Federal Express. Now, talk about salesmanship. How'd you
like to pull that one off?' He went up and literally sold - an option by 80%
of the company for $1 million; he sold the option for a million, not the
company;. And they came down and spent 6 months with us, but he got
the $1 million; got it in the bank, and we survived.
And then all kinds of things - and I think the key learning here for me,
beyond anything else is commitment. We were so committed. Strange
things happened. Some I won't even tell you , because they're too bizarre.
But one thing is - probably story you’ve all heard Tom Peters made
famous; Fred Smith - and I was with him that day; we'd been kicked out of
several investment bankers that day; we were at O'Hare airport, and out
plane's going to leave about 2 hours from the time we were there. We're
marching down the concourse, and Fred said, 'See you later.' And he takes
off. And I looked up in Las Vegas - you know, there's a Las Vegas flight
boarding.

Now, Fred - you've got to understand, it's before credit cards were widely
known at that time; and Fred never carried a penny in his pocket. God
knows how he pulled this off; but he literally went to Las Vegas; standby;
got there; won $29,000 on the blackjack tables, and came back, and we
met payroll for another week. That’s how we survived. (Laughter) Now, at
the end of that - as we're going through that period, we had literally 500
employees - got a pay check with an envelope with a note in it; 'Please
don't cash the cheque; there’s no money in the bank.' Only a handful of
people left. What's the lesson there?

Commitment and honesty. When Diane said, 'I think we're going bankrupt
anyway,' we were honest with her. We don't have any money, we're
running out money, do whatever you can to conserve; you had to do that.
So at any rate, you know - a pilot used his credit card to buy fuel for his
airplane; get the shares truck out, and then - then other strange things.

REA Express, which was the single - they kind of had a franchise using
passenger airlines; they went out of business. United airlines went on
strike. All kinds of things began to happen that allowed us to survive
during that critical period. Three years later we were profitable, today,
instead of six packages, it's six million packages. So how would you like
that growth a million times? That's pretty cool.

Now, as we began to grow, we got through that first period. We had -

those of us - I was the first UPSer to get there. And then we had a bunch
more UPSers come in. And our one fear; anybody that came from UPS - I
don't know how many of you know about that company, but anybody that
came from UPS had this huge fear. They had six billion dollars in liquid
assets. Federal Express was the biggest start-up at that time in venture
capital history, and it cost us $120 million. They could come into our turf
and step on us like an ant, at any time. In fact, the reality was, Fred Smith
and I went to Jim McLaughlin, who was, at that time, CEO of UPS, and we
said, 'Jim, do you guys still want to do the pickup and delivery.' That's how
strong the fear was.

'We'll just run the airline, you do the pickup and deliver.' And he said,
'Unequivocally, no; we don't want to be in that business.' 'Okay, that's
fine.' Eight years later they came in, but by the time they came in, we had
launched into customer value that was so strong, that they couldn't assail
our position. That's strategy that everybody is talking about. And what we
recognised is that we had to go up this curve of value where we had to
continue to add services. Today, if you want to equate services on the
base level, which is on time delivery, you would say, 'we meet the
physical needs of the customer; we get the package there on time.'

Now, if you're in a business where you meet the physical needs of a

customer, anybody else can do that. We knew that UPS, even eight years
later, whenever they came in, couldn't - delivers as accurately and as
reliably as we could on time, every time. And if you look at it today, UPS,
Federal Express, Airborne and the Post Office all are like 99.7 plus or
minus 3 percent - plus or minus 3 percent of each other, in terms of on
time delivery.

So if you're in a business where you're meeting just one level of needs,

you're going to die there, because you'll be commoditized and when you
are, price becomes the rule. We know that. Okay. Physical needs are here,
in this room. Are you comfortable in this room? Is the temperature right?
Is this hotel set-up properly? That's Jay's brilliance and his organization's
brilliance at meeting your physical needs. You notice there's not candy on
the table. Now we were talking - Jacquie was talking a little bit about
wants versus needs. Now you may want candy, but the reality is it’ll put
you to sleep, and you won't get what Jay wants you to get out of the
seminar. So those are things that meet the physical need. If you stop
there, you're dead.

The next level of need, which I think is met very well in this seminar, is
informational needs. Intellectual needs. And we need those needs met as
well. Now, what did that mean at Federal Express? We can get the
packages there on time, but it was interesting - my job after sales and
service was Senior Vice President or Corporate Development, and the first
part of that job was to find the six things that we - define the things that
we need to do to keep our customers excited about using us, and keep
them loyal to us. And we identified the first thing; obviously get the
packages there on time. Anybody want to hazard a guess and just yell it
out, what the second thing was? (Audience member shouts, 'Where's my
package?' You got it. Where's my package? Even if it's on time, even if it's
on route, even if it's gone out for delivery; whatever. I want to know why,
because overnight service is different from three or four days' service.

After I left FedEx, I went up to two buddies of mine that were now
executive vice presidents of UPS, and I said, 'Hey Frank, what are you
doing with tracing?' He said, 'That's -' and that’s how I invented the
barcode tracing, and I knew how important that particular issue was. And
this was after they'd been in the overnight business for two years. He
said, 'Our customers don't need tracing. they count on us to deliver on
time.' Well, they finally learned what their customers do need, and now
they got, obviously, barcode tracing the same way FedEx does. And then
Airborne got into it and so forth.

So it's information. Now in your case, it's information about your product.
Why? As you probably - Jay gives you all that kind of stuff- is why is your
product better or different from whatever. Now in the beginning, Diane
taught us another lesson about information and education. It was very
interesting. We were different - and this is a tough one, because it flies in
the face of some of the things you learn here. We were better because we
had a hub. And the reason we were better is when we had 10,000 - the
reason we had a hub - when 10,000 packages, we had 10,00 packages in
our system - if you took it - the biggest market to the biggest market.
10,000 packages overall in the United States moving back and forth. New
York metropolitan area to Southern California. Or the north east to the - 57
packages. So you couldn’t afford to have an airline, obviously you couldn't
fill up an airplane; it wouldn't work. So as a result - but when you picked
up a New York to the rest of the country, it'll fill airplane. That's what
made the hub work, and that was our difference.

Now, when we were selling, we were touting that difference; the reason
we're better is because we have this hub. But nobody understood it. How
many of you understand it now? (Laughter) See what I mean, it's not an
easy concept to understand. And so they didn't understand it. Well, here’s
Diane; get the packages. She's in telemarketing, she's calling up people.
She's calling up a guy in Detroit, and he says, 'Look, you mean if I Want to
send a package from Detroit to Chicago, it's going to go to Memphis and
then go back to Chicago?' And instinctively said, 'Look, sir, you don’t tell
your customer, we won't. Just have it there by noon tomorrow, does that
work?' 'Yeah, yeah.' 'Okay, stand by your driver.' And then she - that's
where it absolutely positively came from - not her but the ad agency; that
finally we got it; you sell benefit, not means, but you still have to educate.
So that's information. Now, we knew UPS could duplicate that, and they
have today. Got a good tracing system. Not quite as good as FedEx; they
don’t scan it as many times, don’t have the controls that FedEx does, but
it's reasonable. There's a level above that. And its' the level that we all
have to go to if we don't want to be commodities. Anybody want to hazard
a guess what it is? Emotional needs. You guys, see , you're far ahead of
my usual groups, because you're Jay folks. (Audio missing)

emotional needs. What does that mean? At FedEx, it was interesting. We

had a senior vice president; since passed away, that I would equate with
Jay in the major company marketing, where Jay is more entrepreneurial;
but both were that same capability of seeing beyond the obvious and
developing systems that work. He said, 'Mike, we have to meet the
emotional needs of our customer.' I said, 'What do you mean by that?' He
said, 'Well, our customer isn't the executive, or even the person who
benefits from getting the package their overnight. So absolutely,
positively overnight doesn’t meet their need.' I said, 'Well, who's the
customer, if you look at it that way?' He said, 'It's the secretary, the
shipping clerk.' And I said, 'What's their emotional need?' He said, 'Keep
the boss off my back.' (Laughter) Isn’t that interesting?

IBM became as big as they were because they created such a level of
trust in their brand, that if I’m the CEO of a company, and I bought
anything but IBM and it went bad, you'd blame me, the CEO. If I bought
IBM and it went right. You'd say it's IBM's fault, right? That's the brand.
Same thing at FedEx. If you used UPS and it went bad, they're going to
blame you for using UPS. If you use FedEx, it's FedEx's fault. And that's
what we crated.

I don't know if you remember the advertisement that ran on TV. We're so
appropriate for this. It was this boss goes into this pool of people, and he
storms through the door, and he said, 'The package you sent yesterday
didn't get delivered,' and this woman's in the back; 'Yes, sir. It was
delivered at 9:46, signed by John Jones.' And the guy kind of walkout and
closes the door gently. Everybody goes, 'Yes.' And they're clapping. Who
were they trying to appeal to? The boss or the secretary who used the
service?

So it's meet those emotional needs. How do you do that in your business?
I'll leave it to you. But you’ve got to do that. That's what'll differentiate
you. It's what is the emotional need. The emotional need for Ya-Ya Bike
members, cooperative members, is power. As a small retailer, I don’t have
the power that the big guy does. Give me power. And if you look at it,
most people tell you the three motivating emotions are sex, money and
power. So somehow you relate to one of those.

A good example - probably the best example. As I said earlier, I sold

Harley-Davidson, and consulted with them for about a year. Now, it's
interesting that the emotional need of a bicycle rider and their category, is
power. Now, what's power to me as a motorcycle rider? It's noise and
vibration, right? Gives me a sense of power; leather jackets and all that.
And I love Harley because who else has their brand tattooed to their
customer's bodies? (Laughter) I mean, it's incredible. But noise and power.

Think about that, and then think about the Japanese, who owned the
market before Harley-Davidson got pretty smart about how they
marketed. Noise and power aren't in their vocabularies. It's got to be
smooth, and it's got to be functioning, right. Harley Davidson was so
funny; I was visiting one of their dealers, and this customer comes in and
he said, 'I bought this motorcycle in here and it's leaking.' And I’m talking
to the owner, who said, 'Hey, everybody, he's got a Harley-Davidson that's
leaking.' And everybody’s laughing. He said,' There's no way a Harley-
Davidson can't leak; that's part of what they do, they leak.' He said, 'The
only Harley Davidson - if it doesn't leak, it's because it's already empty.'
(Laughter) But they sold noise and vibration; they sold power, and it
worked. So that’s the emotional need.

One level above. Patty Lund gets close to this next level. He's not there,
but he's getting close. Anybody want to hazard - no, let me ask you this.
Who are the most highly paid people who do the work? Not people who
manage the work, or CEO's. Entertainers and athletes, right? State
change?

Jay Abraham Mastermind Marketing 18

…right? State change? What do you mean by that?

Audience Member: Entertainers are paid that well because they take
your mind off of [unclear 00:11],make you feel good.

Mike: Right on. Exactly. Now, I’m going to call it spiritual needs. And I
don't want to insult anybody, spiritual in my opinion does not necessarily
equate to religion. But spiritual, I see as taking all three of those lower
level needs; our ego needs. It's a 'me' need; it's an ego need. Spiritual
needs are those that take me out of myself. They take me out of that.

When I watch a good movie, I’m not - I might be relating at some level,
but I’m relating to the characters. When I watch a sporting event, I’m
relating to my team. My team is bigger than I am. It's greater cause, it's
greater purpose. And I suggest that where we are going as a culture,
civilization culture, is up that curve. So, question is then; if we look at the
value added curve - I just want to give you some examples. I’m done a
rating system of one to 1000, and I've rated some well-known companies
where they stand on this curve. And the highest in my opinion, as I
mentioned before, is Patty Lund, and I'll describe that in a moment. And
then you had a [unclear 1:21], and I've put Jay Abraham's organization in
this category; UPS, FedEx.

It was interesting, when I did my rating, UPS came up stronger today than
FedEx. Surprised me, but true. Harley-Davidson, Wal-Mart, Dell. Next level
down; Microsoft, Apple, IBM, Cisco Gateway. And then finally, some that
don't meet emotional needs quite as well; Quest, Honeywell. In fact, Quest
was lowest of all the companies I looked at. So, where are you on the
curve, is the question you need to ask yourself. Now lets' take a look at
how do you do it in your business. How do you build this culture? Where
everybody's passionate about - everybody's a Diane. 'Whatever it takes,
I’m going to serve that customer.'

You come up with a compelling vision. What is the customer experience?

You have a strong sense of values. There's a professor at Princeton now,
writing about UPS, because of all the issues around values, and Enron, and
everything else is going on. He's writing an article - a book about UPS and
about how strong their values are; incredibly powerful. Anybody ever see
a UPS driver doesn't work hard? That's one of their values. If you're
thinking about going to work and making money, that's good, but you
better be prepared to work hard if you go to UPS. Then an evolutionary
process. We talked - Chet talked yesterday about the three P's; incredibly
powerful stuff, and I really applaud that kind of thinking. But that has to
continually evolve. The problem with the three P's that you run into - how
many of you, at some point in time, have run into an employee from a
company who couldn't solve your problem, because they were locked in
the policy and procedures? Quite a few.

Yesterday, went up to my room. The key didn't work. And one of the guys
here at the seminar was with me, and he was up on the floor as well, and
his didn't work either. So we both went down to the desk. And I leave my
wallet in a seminar like this, in my room. I don't carry it around; just takes
up a lot of space. And so we went to the desk, and I said, 'I need another
key.' And so did he. And she said, 'Well, where's your ID?' And he showed -
but my wallet was up in my room. I said, 'I can't - have any ID.' 'Well our
policy says you got to have the ID; I’m going to have to call security guy,
going to have to go up to your room, you're going to have to get your ID,
you're going to have to come back down here; going to have the key.' I
was late coming into the seminar yesterday because I was doing all that.
(Laughter) And then Jay called on me - you all heard that. So I wasn't
around.
So, that's policy and procedure getting in the way. Airlines; I tell, you, they
can't - what you need to create is a culture where every employee is a
problem solver.

…(Audio missing) scheme with Vince Fagan, that marketing guru at FedEx
told me about the emotional needs, and I had just come from a seminar
called Synectics, where it's creative problem solving, and he and I were in
this incredibly creative problem-solving process, flying out to Denver. And
he had elves jumping from logs and everything else, so I said, 'Describe
that to me in terms of what that means to Federal Express.' And he said.
'Well, I can get them in the door. I can get people to try FedEx.' That's not
what’s important. What's important was, number one; that they stay loyal;
and number two; they tell others.

And he said, 'That only means one thing.' This is a breakthrough for him -
at that time it was a breakthrough. He said, 'That means only one thing.
Every person is going to be one of those little elves that sees themselves
first and foremost as a problem solver for that customer.' Fred later
institutionalized it, saying, 'The sun will not set on customer or employee
problem.' And by 'sun set,' he means the problem is recognized. May not
have been solved, but it's been recognized, acknowledged, and we're
working on it. So your employees have to be problem solvers, and you
have to develop an evolutionary process.

Let me describe quickly what that looks like. Vision. Ya-Ya Bike; what's our
vision? I just got finished writing it. Usually what I do is I write a ten page
scenario; I put myself in the customer's head. What's the bike rider want?
We have three customers in our business. the bike rider, the member
who's the bike store that sells to the bike rider, and the suppliers; the
manufacturers who basically have to provide the supplies and things we
need. And our job is to put all that together. With our members and with
our suppliers. So I wrote that.

And out of that came a vision statement. And the vision statement
basically is, 'Biking; America's passion.' That’s what I want to achieve. The
reason I’m at Ya-Ya Bike, is because I love the concept. But more
importantly, it’s probably the most challenging leadership assignment I've
ever had. How do you take 1,000 bicycle dealers working with 50
suppliers, and basically change the way the industry and America thinks
about biking. We want to make biking America's passion. We can do that if
we work together. And that's what we're going to do. So that's our vision.

At FedEx, when I was there, I wrote a vision. I was running the Southern
Division for a while; I wrote what was called the ideal station. And I
created this vision of what that station would look like. And we went
around every employee and read - and it was published in the newspaper.
And we created a vision statement around it. Then, values. What are
values? Values, basically, are those uncompromisables. Those things that
won't let you be an Enron; no matter what happens. Those values that are
going to keep you honest and keep you sincerely focused on your
customer, and those are the out of bounds. Those are when I’m running
down the football field,. I step out, play stops; I take action; I do whatever
I’m going to do next.

The great example that I have of values was Colonel Sanders. Kentucky
Fried Chicken. Colonel Sanders - I thought he was an icon; I didn’t even
know he was real. But I worked with a guy name Frank McGuire. He's
written a book called, 'You're the Greatest.' And Frank worked with Colonel
Sanders, and he tells this story about Colonel Sanders. Colonel Sanders
sold out his company. He built this franchise in the 70's and Kentucky Fried
Chicken; the first franchise operation. Quite fast foods and so forth. And
Colonel Sanders had built this [unclear 3:34] company to Hug [unclear].
And Hugh Blind came in; the president of Hugh Blind, and took over. But
there was a clash. A vision clash, a values clash. Between Colonel Sanders
and the big company.

And one day the Colonel’s walking down the hallway, and he sees this
meeting going on; about 50 people in the room, and he goes and he sits
down next to Frank, and I guess he was pretty abrupt. He said, 'Frank,
what are they talking about?' And Frank said, 'Well, Colonel, they're going
to make the gravy out of water instead of milk.' And Frank was about to
explain the next part of that; he said, 'Don’t mess with my gravy.'
(Laughter) Well, there's no question whether this was - hear more. Frank
said, 'Wait a minute Colonel, they've done taste tests, they've tested 300
people, nobody could tell the difference. It's like three cents a serving, and
that means $100,000 at the bottom line.' And all this. He says, 'I don’t
care. Don't mess with my gravy.'

So the president of Hugh Blind says, 'Okay, I’ve had this problem all along
with Colonel Sanders; now’s the time to confront him head on.' He said,
'Colonel, whether you like it or not, I’m going to make this - make the
gravy out of water. We've taste tested it; nobody can tell the difference. It
doesn’t compromise our equality that I can see, and we’re just going to do
that, and you and I have problems in the past. I want you to know we're in
this for profit; means $100,000 on the bottom line, we're going to do it.'

And I guess the Colonel had this habit when something like that
happened, he'd do this. He had one of those desk tables that goes like
that; gets - turns around, starts bolting for the door. And the president of
Hugh Blinds said, 'Colonel, where are you going?' He says. 'Going on the
Johnny Carson show, tell them this shit ain't fit to eat.' (Laughter and
applause)

So you can just imagine, they did not change the gravy while the Colonel
was alive. (Laughter) But see, the point is, he wasn't wrestling in his mind
about pros and cons and intellectual understanding and all that - taste
testing and all this great marketing. In his mind, that was the value. I
guess when they first sold it, they were - this is kind of a funny story - they
were at a big party; a celebration party - sold his company to Hugh Blind.
Everybody's there and the president of Hugh Blind comes over, he says,
'Colonel Sanders,' he said, 'I want the formula. We need to get the formula
into our safe as quickly as possible.' He said, 'What formula?' He said,
'Well the 12 or 11 ingredients that make Kentucky Fried Chicken. We want
the formula.' He said, 'You're looking at it.' (Laughter) He was the formula.
There was nothing written at that point.

Okay, so you got a vision, you got values. Now, we’re into the evolutionary
system - goals. We’ve talked about that; you know the importance of
goals. The only difference for me is the goals should be inclusive of what I
call the CEO of the company. Customer, employees, owners. So a
customer goal. And there’s an employee goal. At Federal Express,
customer goal was what they now refer to as the Service Quality Index. It
measures eight things and it creates an index, and it's shown daily, so
they know not only what their service is, but the perception of their
service. So you have goals, and you have employee goals.

At FedEx, it's a Leadership Index. As a manager at FedEx, I can evaluate

you, my supervisor, as a manager. In terms of your leadership skills, I
can't evaluate you. Only your employees can. so there's a Leadership
Index; it's rated by employees once a year. For the investor, everybody's
got that goal, which is stock price, value of the company or whatever
situation you're in. Those goals have to be relevant to the people who
carry them out. So it has to be relevant. If it's a customer goal, your
product or service has got to be relevant to the customer. If it's not, forget
it. All the marketing in the world isn’t going to overcome that obstacle. It's
got to be relevant.

Meaning the goals have got to be relevant to the front-line employees.

What does that mean? It might mean incentives; it might mean a number
of things that are required to make it relevant. Once the goals are clear,
vision's clear - vision is like a compass; top of the mountain-top, that's
clear. Goals are clear. It's relevant to me. I, as an employee; Diane, will
take the actions that are in the best interest of the company and the
customer. As long as the goals are balanced and relevant to me, I will take
those actions. Now, what also makes them incredibly relevant is feedback.

So this is what I call a cultural system. When this is in place, you will
continue to evolve any way you need to evolve to meet your customer's
need. Because the people who take the action are the front-line people,
and when they meet the goals, like Diane met the goal, those actions will
be applauded, and when they’re applauded, she'll do whatever she needs
to do the next time to make it even better.

So it's just like - and this thing is in my book; I describe it in much more
detail, but basically, any system works this way. If I'm a racoon in search
of food, that's how the system works. I have a goal, I’m hungry, I want to
get fed. It's relevant to me because I’m hungry; my stomach's empty. I
take action to look for food and find it. I get feedback; I fill up my stomach.
I get up, turn my faucet on in the morning, get my shower fixed. My goal
is to have temperature of water that I want. I keep fiddling the knobs; get
feedback, until I get the temperature. Everything you do; everything an
organization does, fits into that model.

Where it's usually weak is people don't have the feedback to the
employees; the employees don't know where we are. They don’t
understand the goals. I know I’m in a customer cultured company when I
can walk into a front-line employee and say 'What are the goals of this
company?' And they can tell me. Boom, boom, boom. How do you know
those are the goals? What's the relevance of those goals? And they can
answer those questions.

Let me give you some quick examples. Patty Lund, as Jay said, on the
verge of suicide. Literally, taking his life. He even studied it. He found out
that - how many of you heard this? Dentists commit suicide 100 times
more than the average person. How many of you know a dentist that's
committed suicide? Several people. Interesting. And so - even - he studied
it in the sense of how you do it. He said, 'I can slit my wrists in the
bathtub, but that takes like 6 hours to bleed it out, and - or I could jump
off a bridge in Brisbane, and the problem is, people have done that and
they get stuck in the mud, and they just can pull out of the mud. And
they're embarrassed as hell; they still haven't done what they wanted to
do.' (Laughter)

So then he asked the critical question, 'Why am I depressed?' Why are

dentists depressed? Anybody want to hazard a guess? Why are dentists
depressed? (Audience members shout ideas) Their customers don’t want
to be around them, right?
Audience Member: It's a down in the mouth job.

Mike: (Laughs) Down in the mouth job! Right, perfect. (Laughter) But the
reality is, people didn’t want to be around them. And even though you like
the person, you don’t want to be around somebody who's causing pain, or
whatever that is. So as a result, people don’t like to be around dentists.
Now, as much as we don’t believe we need human relationship, the
essence - the purpose of human life is, in my opinion - and as Mother
Teresa said, is to love and be loved. When I’m not loved, I feel that.

So at any rate, he felt it. Emotionally, deep down. So he said, okay, if the
goal of life is happiness, why on earth would I do something that
depresses me? Right? It's a good question isn't it? Something we need to
ask ourselves every day, if we're not passionate about what we're doing.
So he created a compelling vision. 'I want to sell dental happiness.' Now
that, to me - I spent a lot of time in a dental chair, and that's an oxymoron
if I’ve ever heard one. (Laughter) But that was his vision. Now, he went
through 10 years of actually - it's still evolves today, because he applied
…(Audio missing)

…in talking - now here is the key ingredient to his change, because he did
a total wholesale change. I mean, from one set to 180 degrees in the
other direction. Dental happiness - met with his employees. 'What's it like
to work here?' 'It's terrible.' Turnover in the dental industry is 60%. People
move constantly. So 'It's terrible.' 'Why is it terrible?' 'Because you're rude
to us.' He was ready to listen; most employees wouldn’t tell you that. But
he was so depressed; he was totally ready to listen. So they created
together, as a team, what he calls the courtesy system. Now, the courtesy
system - that was his values. Very simple stuff. He wrote a book called,
'Building the Happiness in a Business.' In my book there's also a chapter
that shows the courtesy - courtesy system is eight things.

Its behaviours. When you want something say please. When you get
something, say thank you. When somebody says thank you, you say
you're welcome, or however you want to respond in your language. Never
talk about someone behind their back, or never talk about someone who's
not present unless you use their name in every sense. Simple stuff;
kindergarden stuff. But as they began to do this, they began to deliver
this kind of thing, and they got into this evolutionary process; their goal
was to - their vision dental happiness..

They set goals. Remember I said CEO - customer, employee, owner. Every
day, for a while, they would meet for 10 minutes, and they’d say, 'How
many of our customers would refer like people to us, based on their
experience today?' And people would rate that. 'On a scale of one to ten,
how happy are you?' As Marilyn, one of their employees called it, the
stress-ometer, because they equated happiness with stress. When you're
stressed out, you're not happy, period. That's how it works and I think
science shows that. So they did that. Then third, they ran a weekly - not
monthly, not quarterly - weekly profit sharing program, and then cover
revenue. ;How much revenue did we do today?' And they kept that up.

It was amazing what happened. They began to evolve, and now if you go
there - I’ve been there like five times. The first time, I’ll never forget it. His
advice to you, and you heard pieces of it, is basically this. As
entrepreneurs, here's what I want you to do. Lock your doors, take your
name out of the phone book, stop all advertising, and fire 75% of your
customers. How many are ready to jump at that? (Laughter) Alright!
That’s great. So that was his advice.

Well, what he did is, it started out - you heard in the interview, by referral
only. And what he did is he made it - there's a contractor, a signed
contract, that shows 'When you sign up for Patty Lund's practice, first
thing you get is a book in the mail, and it's got a hand-drawn colour map
on the first page; shows you how to get there. That’s what I got. And when
I went to it, you have to ring the doorbell, just as Patty described it, and
then you're shown to your individual room. And they leave the door open
that much; it's a small room. And then Marilyn can - now, my names' on
the door. 'Welcome Mike Basch. Patty Lund Dental Practice.' I was just
there to interview; I wasn't even a customer. She put me in, and Marilyn
sat down, and pretty soon there was a knock on the door. Why a knock?
Because it's my door.

And Joanne comes in and she said, 'Hi, Mr Basch. Paul said you like
decaffeinated cappuccino and blueberry muffins. Is that correct?' 'Yes, it
is.' And then Marilyn said, 'We celebrate tea here with silence, so if we
could just honour Joanne as she serves us.' And Joanne served us in Royal
Dalton china; in a silver tea set. And so she served us. And then I began to
ask questions. I asked Marilyn, I said, 'Is this duplicable?' Because I’d
already talked to some customers, and they said - one guy flew from
Sydney to Brisbane to just go to the dentist. $800, round trip. And said,
'This is the greatest experience I’ve ever had, and I’ve been to a lot of five
start resorts.'

And I said, 'Marilyn, if your husband moved to Sydney, and you had to
move with him, would you do - could you do the same thing in another
dental office?' And she said, 'You mean he gets transferred and I go with
him?' I said, 'Yeah.' She said, 'I'd divorce him first.' (Laughter) Tongue in
cheek, but true. This place is a happy place, they've got it. They've got
the best business in the world. The only way I can describe it - I talked
about spiritual, unconditional love. I was there two hours, I was doing
seminars in Australia, two weeks away from home. Stressed out, living for
- in friend's homes, but that's always a little stressful. I walked out of there
at total peace with myself. That's what he's created in a customer
environment.

That's a customer culture. I'm going to go through these very quickly. UPS.
Great vision. Determined people, working together, can accomplish
anything, Determined people create their conditions; they are never the
victims of. And there was only one excuse for non-performance at UPS,
and that is you weren't determined enough. Wouldn’t you like to be in a
culture where all of your employees -and they have 300,000 of them -
have that determination? Policy book is strong, and they have the same
evolutionary process.

Compelling vision; we did move from 'Get the packages,' to 'Absolutely,

positively overnight.' Strong sense of values, evolutionary process. Ya-Ya
Bike; compelling vision. We want to America's - we want to make biking
America’s passion; that's out vision. It's not our USP. It's our vision. In our
business, we’re dealing with 1,000 - or we will be dealing with 1,000
retailers and 50 suppliers, and eventually consumers or bike riders; we
need to build trust. That's - whatever it requires to build trust, that's the
beginning of our values. Now, I’d like to very quickly give you a process
you can follow, and this will just take a second.

I’m going to suggest this. Both Federal Express and Patty Lund did one
thing that was common to both of them. Patty Lund in an eight person
dental office, Federal Express with 150,000 employees. And that is they
created a hierarchy of [unclear 5:55]. They examined why people would
not want to do business with them. In the dental office, simply getting
employees a flip chart and having your employees or you, yourself list
why people don’t want to do business with you or your industry. And then
they took an hour a week - they identified those things customers don’t
like, they had their employees vote on their top three; they created a
hierarchy, and then they solved them. FedEx did the same thing. Eight
things, reasons why you would hate doing business with FedEx.

Number one; I lost or damaged your package. The last one - the least
worst thing I can do is day late. 11:00 instead of 10:30. Identify those
things. And then they took employees and they had employees work on
solving them. Why not the owner, if you have employees? Why not the
owner? Because when your employees do it, they'll deliver a great
service, because they’ll have identified it, they'll have solved it. An
extraordinary service delivered by its creators. If you create it, you better
be ready to personally deliver it.

Now, Jay - and this is the last slide. Jay tells you one thing - I mean
thousands of things, but one of the things you get clearly with the way he
operates these seminars is, what life's about is giving and receiving. We
breathe in, we receive. We breathe out, we give. And that's what it's all
about, isn't it? It's giving and receiving, and that's -Jay has you get up to
give, because you've received some ideas, you've received something
that works for you. Get up and share it; give it to somebody else. That's
what makes life work. That’s what moves us up that curve. Now, I've given
you what I could give you in an hour, and I hope you appreciate it. I 'd like
your help.

One of the people that came here yesterday said, 'Look, I’ve heard some
great ideas, but what I love about this place is the energy in the room.
How many of you would agree with that? (Applause) It's incredible stuff.
Where I need you help is this. We're trying to - we're taking - from me, the
biggest challenge of my life, is to get consumers everywhere across
America passionate about biking. So I’d like you to repeat after me, and I
want to do it with gusto and with energy. Biking is America’s passion.
Biking is...(Audience shouts 'America's passion') Biking is...(America's
passion.) One more time. Biking is...(America's passion)

Thank you very much. You’re a great group. (Applause) (Music plays)

Jay: One sec. Now, everybody here that I’ve chosen, are expert and
original and really definitive thinkers on their subject, to where they could
go hours and hours and hours and do you service. And I put them through
an insanely unfair process of trying to compress it and then paring it
down, and then making it so sinewy that’s it’s awkward, and it's because
I’ve got to get enough of our stuff in, and I’ve got to progress with - Mike, I
bless him, is here until when?

Mike: Until the rest of today.

Jay: Rest of today; he's at the tables most of the time, right? Wrong?

Mike: Yes, right.

Jay: Taking notes. He’s going to continue...

Mike: All the time.

Jay: ...everything, he's here, he's got a world - he and I go back a long
way and I frustrate him in many different ways, many different places
around the world, haven't I.
Mike: Yes.

Jay: And I - we've been to three different continents together, me

frustrating him. But he's a wonderful man, he’s got a heart of gold, and
he's got a knowledge base to die for, and he understands…(audio missing)

...animate the spirit of your forces, and I hope you really got something
out of it, but I can’t let anyone who's as bright and got the enormity of
perspective that he has, just go - all the things you just said, and that
wonderful conclusion notwithstanding, what are the three most important
other things they should have gotten out of what you're here for, and if
they never see you again, and you had any influence on their business or
personal lives, what do you think they got to take home and do?

Mike: Well, number one -I said it but I didn’t do it justice. This hierarchy of
horrors. When I got back over clients after years of people who have
followed some of the things in my book and some of the things you've
seen. People who have done the hierarchy of horrors say that's the most
single strongest thing they can do. And they make it an evolutionary
process, so that’s number one.

Number two goes back to Jay's stuff. I think this whole idea of setting up a
system - make sure you've got the feedback system. When I look at where
- big companies and little companies; it doesn’t matter what size; where
they fail is they don't have the goals, they haven’t made the goals
relevant to people, and they haven't provided the feedback. When you do
those three things well, people will act in the way that you want them to
act to produce the business, or produce the relationship, or produce
whatever you want. Even if it's a new set of procedures, or new policies.
Whatever it is. So that's number two.

Number three is to really - and this goes back to kind of number one, to a
certain extent. Out of that [unclear 1:29] that you define about why don’t
customers want to do business? That's where the break through come
from. Why don't they want to do business with me or my industry. What
Patty Lund said, you know, they don't want the pain, they don’t want smell
and - when they walk in. Because smell is the most basic human instinct
there is. When you smell something that reminds you of a bad experience,
you will turn negative. You have no control over it; unconsciously, you
will turn negative. And not even know why.

Jay: Or dirty bathroom in a restaurant.

Mike: Pardon?

Jay: Or a dirty bathroom...

Mike: Or a dirty bathroom in a restaurant. UPS washes every truck every
day, to create that perception of quality that people can’t get - because
you can't see what the dentist is doing in your mouth. So they tackled
each of these things. So the third thing; once you have the horrors, then
create that vision. Write, sit down and just kind of – stream of thought. I’m
a customer. Put yourself in that customer's mind. And I always pick out a
person I know. Like, the last one I did, I wanted to market to mothers of
teenagers. And I put myself in a woman named Susan, and I was in her
head, and I wrote about her three kids. How her family is losing touch with
each other, and how one kid's spending all day watching television. And
how when she got bicycles in her life, and now her kids are exercising and
she’s got - her husband and her whole family is together again. So I
created this whole vision around what it would be like if America's people
were passionate about biking.

And so that vision will then drive our strategy, it'll drive everything else
we do as we move. I’ve only been with the company now three weeks,
(Laughter) ...so it'll drive everything we do from here on in terms of
building a system, a process that will truly reach out to America's people
and get them more passionate about biking.

Jay: Thanks. Last question. Well, two questions. Are you going to be
available for our strategy panel later?

Mike: Sure.

Jay: Next question is, of all the entrepreneurs, you've had the good
fortune to be impacting - and particularly the ones you've impacted in the
five or six or seven, or number of programs of mine you’ve been at.
What's the biggest, let's say, leverage that you haven't touch on? There’s
got to be one more thing that - it's like where you go, 'Oh shit, I should
have said this, but I didn't have that in -' What is it?

Mike: It was a hospital - remember I said I got the Harley-Davidson a

hospital? And the hospital had an emergency room - this is so funny. And
the CEO of the hospital was in the emergency room; he cut his wrist or did
something. Went in as a patient. And eight hours later, somebody looked
in on him. (Laughter) All during while he was waiting, he could say, 'I
could obviously stand up and call attention - but my customers aren’t
doing that. They're not paying attention to me, they're not paying
attention to our customers. So we put together a group of people; ten
people, employees. Spent a day and a half. They devised their
performance strategy for - his deal is get it - the average time in the
emergency room is three hours and seven minutes. The employees
working together; day and a half. Now, took them three months to
implement. Day and a half; came up with the process that basically got
them down to less than an hour. Got - as one of the nurse that was in
charge of the project, what we call our champion, said, 'When you started,
we had 10 people. Two doctors, and admins and nurses working together;
now we got 80 people rooting around down there to figure out to make it
better for the customer.' End result: they called a census - how many
people come into the emergency room, which is the gateway to the
hospital for getting business and growing.

Jay: So they took metrics?

Mike: Huh?

Jay: The had metrics.

Mike: Yeah, that's their metric. 90 a day, within three months after them
implement, six months after our project started; 130 a day. That kind of
increase.

Jay: That's amazing.

Mike: Because the people got involved, they...

Jay: The last lesson is?

Mike: The lesson is, get your people involved to solve the problems. Don’t
solve them yourself. I heard somebody make the comment; and I
understand - after Chet's - you’ve got to pig-headed about getting them to
follow up [procedure. Yes, you do, but my belief is involve them, get them
involved, get them passionate and let them tell you how they’re going to
do it. When you walk away from this seminar, you’re going to come up
with ideas. Bunches of them. Pick one or two ideas. Bounce it off them,
get their feedback, get their involvement. Make them part of the strategy
and the tactics to pull it off. And if you do that, you'll see these ideas that
normally dive down, just as Chet said; you'll see them begin to take an
energy of their own, and at some point you can step back and just watch
it happen.

Jay: Great. Mike, thank you so much. Appreciate it, man.

Mike: Jay, thank you very much.

Jay: Thank you. I have the honour and the pleasure of introducing to you
four gentlemen that I very greatly admire. they are my four sons. They
happen to be here. (Applause) Come up here. This is Jordan, age 14. Say
hello. (Applause) This is Zayn, age 12. This is Ridge, age 10, and this is -
who are you? Sage; we think he's Charlie Chaplin, because he looks like
him, and they came down - we were going to teach you the Macarena.
Unfortunately, we don’t have the Macarena after we practiced up in the
room for about - I didn’t, but they did. So because I think you need an
energy boost, because I'm going to do something very important, we're
going to have Spar help us for two minutes, teach you - what, Spar? What
are we going to teach them, Michelle? I’m sure you all want to learn the
Time Warp, when you go home and show them what you got for $5,000;
don't you? (Laughter) So we're going to all get up…(audio missing)

I like that. Okay, now my boys are leaving, but one of them is going to
stay and work, so he likes tips. The little one's going to work in the
registration booth; I don’t know what he's going to register. We told him
there's another seminar coming up. (Laughter) I need a tall stool. Is that
the tallest one we got? Okay. Serious business now. Do you like Chet?
(Audience says, 'Yeah.') And unfortunately, he's got great methodologies.
He and I have been doing some really killer stuff together and he was here
for all of you, but also, later on, certain ones of you want to talk to him if
it's appropriate, but that stuff will transform you, particularly once you get
my methodology. The reason most people don’t do as much as they could
or should or will, now, with my methodology is they don't have a system.
They don’t have a process or procedure.

Did you get pretty - did he get really good into the Dream 100? Do you
understand the leverage in that? When the big one falls, everyone falls.
The great example and it's a composite of that coupled with endorsement.
You've all heard the story - and it's told about four ways. It can be about
Rockefeller, it can be about Bernard Berue, it could be about Rothschild -
that somebody went up to them and wanted to borrow money form them,
and they said, 'No, but I;ll do something ten times better. I;ll walk arm in
arm with you twice, up and down the stock bourse - and a bourse is the
stock floor - and after that everybody will loan you all the money you
want.' And you have to realize, once you have the big influence,
everybody else falls.

Alright, pretty hot day, don’t you think? I was talking to someone outside
and I said, 'This is probably the best program I’ve ever - not the best
program I’ve ever done meaning just it's a great program; although it is,
because you guys are great and I’m in a really good mood - but it's the
greatest - it's the most forgiving program. I love hot cars, but I can’t drive
worth a darn. I had a Ferrari Boxer one time for six months, and I blew six
clutches just going out of my driveway, swear to God. And it was $2,000 a
clutch, and I thought, 'I can’t handle this.' And when I was talking - I was
dating my now wife and trying to impress her, so I talked to her like that
and the car would go veering off. But we have a Porsche - we had a lot -
she's got a really gorgeous - and I can't drive worth a darn, but you can
mis-gear and it's forgiving.

This program is so forgiving, it doesn’t really matter where you start and
where you end up, it layers so well, and it's got so many back-ups and so
much redundancy, both in preparatory material and the workbooks; and
tomorrow when you get the tactical stuff, it's just to die for that you can't
go wrong. It doesn’t matter where we end up. I have one issue I’ve got to
talk to you about candidly, because it's a great - you guys are $500,000
minimally ahead on this deal and don't know it, and it's something I have
to talk to you about, and this is very sincere. And you're the beneficiaries
of something that really I wasn’t going to do, but you've done it now and I
need to engage your absolute moral commitment to treasure an asset
that you are now the custodian of, with absolute respect.

Years ago, when I did seminars, I spent millions of dollars. 20, actually. I
used to make it a point to give everybody in the room the list of
everybody in the room, because I wanted everybody in the room to
collaborate, to network, to benefit each other, and after spending $20
million to go across the road and find the 10 or 15,000 people, about 5%
of the people who got it turned out to be bad apples, and they turned out
to be very self-serving. And they used the list to hustle and to do all kinds
of marginal self-serving things, and they decided maybe they weren’t
going to follow through, and Jay Abraham didn’t give me value, so they
gave it to other people, and it got whored, and it got brandished around,
and I was just heartbroken.

And I swore I would never, ever, again, on my own give a list to anybody. If
you want it, you have to work hard. But Carl, well-intended, because he
didn't know my belief system, gave you all a copy. A copy that cost me a
half a million dollars to build. A copy that, very precariously, holds in it all
of your names, all of the data on you. I have a couple of speakers I
wouldn't give it to. I won't retract it because you are in possession of it. I
would ask you, I would hold you to a higher level of responsibility, to use it
for what it was intended for. To network, to mastermind, to benefit from.

I’m a very nice person, I am like so giving most of the time, but if it comes
to back to me - because I’m in a point in my life where I don’t want to see
the surly side and the self-serving side of humanity. I don’t like it. If I see
anyone use it wrong, I will be - you will be smitten. Please respect it and,
understand that it's a gift of the highest magnitude; that I won't take back
but I would hold you to a higher standard, to treasure and please don't use
it imprudently. Please don’t be self-serving about it. I spent $500,000 on it,
and please don’t get it out of your possession. I would be more than
upset. Can I have your commitment about that? (Audience says, 'Yes sir,
and applauds)

I’m going to do something - I have three choices. I chose door number

two. I have something I need to do, which is the strategy of pre-eminence.
I’m going to do it probably a modified long form, and you're going to have
to work with me. I 've done it many different ways. The best way I ever did
it was the most free-form. I have a transcript of that. I was up in the room
for an hour and a half trying to modify it and I’m going to use it as
reference notes. I'm just going to speak to you from the heart. And then
we'll go in and out of currency and history, and then at the end I’m going
to do a great favour to you. I’m going to take the chapter from my book,
which is a distillation on the strategy of pre-eminence, and I’m going have
them send it out tonight, and make copies for you for tomorrow. So you
can basically - if you like it - so you’ll have a reference mode, and you can
put it in your workbook. Okay? (Applause)

I don’t need that, I’m just telling you what I'm going to do. But you’re
going to have to be tolerant, because this is going to be a little bit more
free form babble than normal. I need some sparkling water and a coffee,
please. And if I don't do this, I will do you an irreparable disservice.
Doesn't roll which is good. Alright.

I want to talk openly about something that should forever transform your
life. (Audio missing) …...strategy that I thing very few people, other than
ones I have influenced, and people have benevolently or selfishly
appropriated it and tried to disseminate it, understand. It was influenced
by a client of mine that grew from $1000 to - Max Friend - to 250 - I think
they were up higher than that - $250 million. It was the entire premise
that about ten other businesses that the president of this company built
on. I was able to trade them a quarter of a million dollars’ worth of
consulting for the privilege to spend a week picking the minds of a bunch
of their senior executives, and the president, on what his real strategic
mind-set and focus and belief system was.

I worked it down to a methodology, and a strategy. I call it the strategy of

pre-eminence. I'm going to read from my notes and then I’m probably
going to summarize it from a different vantage point, and if you're on to
me yet, I like to say the same thing from many different points. Not to be
redundant, not for you to say, 'Oh I already heard that before,' but
because it is so important, in my mind, to use - so pivotal, that I don’t care
how I reach you, I just want to reach you. Do you understand that.
Now it's hot in here, or maybe it's just form the dance. Do you think so? So
we'll wait a minute; if it's still hot, we'll tamper it down, but it could be just
because we've expended so much energy.

Okay, so I’m going to go over the notes and then I’ll free form a little bit.
So I had this client that's incredible, I traded him a quarter of a million
dollars a time. What I got in exchange was the ability to pick their minds. I
had 2000 pages of notes; reduced it down to a bunch of bullets that I
don’t have here with me. Those bullets were really reference oriented.

So let's start with the fact that these people had a totally different
philosophical bent that they used from the get-go. The first gentleman -
that they shared with me was the foundational pillar, and their success
was that they strived, literally, to have enormous respect and empathy
with their client. they saw their purpose, this company, that I patterned
the strategy of pre-eminence after; as selling leadership, as opposed to
just sort of being a wet noodle, and letting people buy whatever they
wanted whenever they wanted. They saw their purpose and their role in
the relationship with their client, as being a leader. Authoritative, a
consultative force to reckon with, in the marketplace. The definitive force,
actually. They saw it essential that they telegraphed and communicated
and conveyed to their clients and prospects the essence of the fact that
they felt the way they felt. They shared their hopes, their dreams, their
fears, their desires. In other words, 'I feel what you feel. I understand what
your problem, or your opportunity, or your goal, or your concern, is.'

They saw it as a very distinct difference, being between just giving

information, and giving expert, authoritative, consultative advice. They
saw their role as telling people, 'Look, here’s what you should do about a
problem or situation, or an opportunity,' and then, 'Here's how, and
specifically, why you should do.' And then supporting it with a compelling,
irrefutable set of definitive facts. They saw their role as helping people
focus on issues they've never fully verbalized before. If I had time - and I
was going to do it here, but I’m running late - I would ask you again to
write down your biggest challenge, your biggest frustration; as specifically
as possible - your biggest issue, your biggest question, and the biggest
opportunity you're trying to get close to, and then I’d have you lift your
head up and have everybody look at everybody in the room/.

It would be liberating, because most people never articulated it. They've

never put it into tangible, solid words. And when you do, it's like, 'Wow,
now you can get your hands on it.' It's in words; it's solid, it's no longer
this elusive, haunting, enigmatic, frustration that I just have a gnawing,
sort of a disquieting feeling in my gut. Hold on. Okay.
One of the most critical points I need to make to you here is that so many
of us are struggling ourselves, to get clarity about things. You came here
hoping to get clarity, and hopefully as we've explained things, if you look
at your faces, if you look at your body language; you're feeling more
confident, aren't you? You're feeling more certain. You’re feeling more in
control. You're feeling less stressful, like the answers are now within you;
because you've gotten a lot of the pieces of the puzzle. You are certainly a
business owner, entrepreneur, [unclear 4:56] oriented manager, or
professional. But guess what? You're also a man or a woman; you're a
human being. And as such, guess what?

You have the same feelings as everybody else. Your client, your
employees, staff, partners, vendors, advisors; they’re no different. They
are no different. You have to bear with me because I’m attention deficit
and I got a bunch of transcribed notes, and I lost my highlighter
somewhere. Maybe you found it. Got one? Doesn’t matter. I needed to do
it two hours ago, won’t help now. Here. Thank you though. If I had this two
hours ago - where were you two hours ago when I needed it? Aren't you a
psychic marketer? You should have knocked and said, 'I don’t know why,
but here.' (Laughter) You ever see Close Encounters of the Third Kind? I’m
going to start making mounds of clay that look like highlighters.
(Laughter)

What they're saying is, most people don’t even have a good picture of
what it looks like. They don’t even know what 'it' is. They just - like they're
trying to grope. Those people could be your clients, those people could be
your team members, those people could be your loved ones. We don’t
even know - again, they need a picture painted for them. We don’t even
know; we don’t even have some of the phrases or clarity on what we feel
and what we're bothered by, or what we're excited by, and your job, as
the ultimate, most trusted advisor, is to help them get clarity. Articulate;
put words, pictures, so that they see that you get it. That's what I’m doing
for you, and if it feels good, it'll feel just as good for you to do it for them.

And it's not just - and I’ve got to say this -there's three categories of
clients. I won’t do that - I’m switching a lot of things in and out, so it's
going to be a little frustrating. You have three categories of clients. One
pays you, two, you pay. One of the people work for you, the other
advisors, vendors that you use. You need them all engaged, you need
them all seeing that you see life better and that you expect a lot from
them, and you're contributing a lot to them, and you want them to be
successful and prosperous, and that's how you get greatness across the
board. And that's the only way you'll achieve the levels of growth you
want.
With these people that I based the strategy of pre-eminence on - thought
that we don’t even know definitively what we want because we're
struggling. And your job is to put words to it, to assume - you should
understand one thing. And hopefully I don’t come across really as arrogant
and cocky. I come across as really knowing where I ;m taking you. We're
on a journey. I know what you need. I know you think you're unique and
different, and you are in many ways, but you’re not in most ways. And I
know where to take you , and I know that if I take you on- there's a lot of
routes I can take you there, and we may do a little scenic one, and you do
not - you ever go on a rafting trip, anybody?

We go rafting a lot. The most impressive and amazing rafting company,

Oars, is good friend of ours, a client, and we've gone on five or six tours
and we go rafting. It's cool because they pull wherever they want, they go
on hike or whatever, about 12 different paths they can. But they always
get to the end and it’s always a great experience. And that's sort of what I
try to with you, and if you attitudinally realize that's what you're doing for
your clients, that’s what you’re doing for your loved ones; it's a pretty
neat liberating attitude.

Also, people - some people used to - I hope you don't - they think I’m
wasteful of time because I do things like bring my kids up or do the time
warp. I’m not. You want to liberate and harvest, not harness. Harness, but
not constrain your creativity. Let yourself be playful, let yourself be
childlike. Man, I rode a bike and did crazy things, you can do that. Are you
any less important? No. But have fun. Anyhow, people that help us
understand and acknowledge, articulate, and then take action and
formulate a definitive and compelling strategy to get a result, normally
gain our trust, don’t we? You trust your attorney when he helps you out,
you trust your accountant when they help you figure out a plan for you
financial planner. And if you don’t then it's their fault, because they
haven’t really given enough true value. And educated you enough.

Ask yourself this question. I’m going back and forth because I’m making a
lot of parenthetical comments, but this is so important that I’ll summarize
it in a different way at the end. In your business, in your life, in your
critical necessity buying and your indulgent sort of accessory buying, and
your vanity buying; man or woman; did you really gravitate towards
someone, and people who lead you, who guide you, who appreciate you,
who appreciate what you're trying to do, who are empathic but
authoritative; not condescending, but really zero in on your needs? You do
don’t you?
Why should it be any different with the people you're selling to? I really do
get you, even if you don’t know that. I get you at a deep level. So do most
of the people here, and the ones that don’t, it's only because they need
some connections, and once they make it, then they help you. It's a big
difference. These people that I based this on; they felt like their critical
purpose was the present views that their clients could trust. Absolute
trust. Again, leadership, leadership, leadership, leadership. they saw their
role, their function, their purpose, their advantage, their positioning, their
pre-emptive position as being a leadership authority; although a
benevolent one. An empathic, a [unclear], loving, but a very focused,
very, very unflinching, very, very committed.

I don’t mean loving in the wrong sense, I mean, the just really love their
clients and they wanted the clients to get the best possible outcome. The
greatest possible result. The biggest imaginable success. The greatest
level of protection. The least amount of pain, suffering, of harm. Does that
make sense? They really felt it, and they made all their employees feel it,
and if they couldn’t feel it, they fired them. Really. I mean, just because it
just didn’t work in their culture. Hold on.

One of the things that comes in - it comes back from some of the referral
things; these people had great respect for their clients and for their
clients' intelligence. But they also had great respect for the value they
brought to them. They believe that people inherently don’t trust the
system. and the system can be many things. It can be the system of - it
could be big, big, competitors. Big business. It can mean the way the
government mandates. It can be the tax system, it can be our current way
of life. It can be the rat-race. It can be the fact that everyone is relegating
everybody to being a commodity, and it doesn’t limit itself just to
business.

Human beings feel like commodities too. Our wives, our husbands, our
employees, out delivery people, our vendors. It goes both ways. And
empathy and respect is really a powerful factor. Everyone feels like they
are a commodity, so they don’t' feel like they have any connectivity to the
rest of the world. the feel static and out of connection. They feel like they
have no real purpose other than make your money, or do this. Your job is
to make people see they have so much more purpose in a more totalistic
and global expanse. It's a real big issue in this.

By the way, those of you who are not entrepreneurs or professionals, or

managers but you were lucky enough - probably screaming and kicking -
to be invited to be here; you got the chance to do this in your career. For
all the people under you , above you; you have the chance to do this and
touch people inside and outside your business at levels you've never
imagined. You can incorporate this into all elements of your life. The
company that I based this on, they see themselves - they saw and see
themselves - as representing a refreshing alternative to the mundanity,
the norm, and the patronage that most people in business represent. They
see and saw themselves as there's everybody else and there’s we -
there's us. And we're so definitively differentiated; we’re so pre-emptively
different. They really believe that., and they are.

I believe that about myself, and you should believe that about yourself,
because you are. They saw- they don't take the premise of wanting to be
mainstream, because they think that mainstream is a commodity, and
mainstream is non-distinctive, and mainstream has little value. They - this
client that I based this on believe that most people are inherently upset,
mad, irritated, because they don't trust the system. They need someone
to confirm that that viewpoint really is right. Or at the very least, there is a
superior approach, a better alternative.

Remember I said to you the first day,' You unintentionally are limiting,
restricting, impeding the number of clients, the size of the sale, the
profits, the repeat, the value of the business. Well, that probably, if you're
the right person, here for the right reason; that confirms a gnawing, non-
defined, non-verbalized belief that you had all along, didn't it? 'Ah, he was
right.' But now I’ve got to prove it, then I’ve got to show you. And when I
do, it's very liberating. I have your trust. I could have you - if I did it
benevolently - march through that wall, and you’d try if I told you it was in
your best interests and I did it because I believed it was. And I wouldn’t
breach that. I wouldn’t have you do it if I didn’t. Hold on.

They take a very positive, a very hopeful opportunity in this dilemma that
everyone is suffering, and they see their role as representing hopefulness.
Clarity. Liberating alternative that gets you where you want to be, and
they see themselves as probably the only company today that can fully
articulate where and what it is you do want to be or get. They take the
role of basically conveying to people they're not just being told - that
they’re not being told the entire truth, or they're not seeing any option
available to them. And they take the role that, 'Here's the truth as we see
it.' Here's the truth as we see it; we see it a little differently. We see it a lot
differently. WE think, 'That's nice, and there's a good case for that, but we
think there's a different, there’s a better, a more effective, more
impactful.' And it's a very powerful role.

They believe that most people don’t know what focus is until they've had
it made for them. I made - at one of the programs, and I didn’t do it - and
there’s a reference here. I took this from another program, obviously, and
at the other program, I took a moment and explained the meaning of
business life and that was very helpful, so I'm going to, in my attention-
deficit way, explain the meaning of business life for about two minutes,
alright?

It's really very simple. Two things. I think I said the other day, I had to save
you half a million dollars on therapy, or maybe I did it today. It's a process.
This conversation is as good as it gets, and that's wonderful. And there’s
none of you that are more or less important, and there's no one in your
world, whether it's the janitor or whether it's the president of the bank;
that is more or less important, and you can learn from everyone; and
everyone has perspectives and mind-sets that you can gain from. That's
the first thing. The second is, whenever two people come together for any
transaction, whether it's business, whether it's love, whether it's
fraternity, whether it's charity…(audio missing)

,,, party better off, because you were in their life for whatever moment, or
whatever years or whatever action you're in. That deals with your
employees - I know you're frustrated because you're trying to get them
the most productivity, but you should rejoice and you should try to set an
environment, and teach them, and collaborate with them; so they can
have the best life, they can make the most money, they can have the
happiest family, their kids can go to the greatest schools; they'll be the
greatest success, and that should be one of your purposes, and you
should bring them into the method to your madness. But it's a very
liberating attitude if you can gain it. If you don't, life is really boring, and
pretty pitiful. But if you get it, and you fall in love with your clients more
than you fall in love with your business, it is just liberating.

I’m lost, so I got to find my place. And I got - about making people better
off; I wish I could say it’s an original thought. It probably verbalizes
something that I inherently did but never put words to, but that I got from
the interview of Fran Tarketon, and I think we had that interview
transcribed, hopefully in tactical force. If not, I’ll be disappointed. Is it,
Rick? I can't remember, but we'll see - you’ll see tomorrow, because we'll
give it to you. Hold on. So most people don’t know the meaning of
business life. You have be able to demonstrate and show it to people in
actions, not words. And just keep in mind, the same feelings that I’m
hopefully able to stimulate and stir and open- just pick it up - and you are
the same feelings, relatively speaking, that you can open up in the minds
and the hearts and the actions of your clients and prospects; and your
team, and your vendors, and it's pretty powerful. It really is.
They'll do everything for you because you'll do everything for them,
because you really - you have a passion for them, and you see how much
of an impact you can make in their lives. They felt - these people felt like a
key element of their function was connectivity and to help people take the
next steps. That it did no good to say - just give them a data dump of
information, if their clients and prospects didn't know what to do with it
and why. But there aim was to always connect all the dots. Give them a
plan. Help them take the next step. Protect them. Make the next step
logical, easy, appropriate, obvious. They saw, importantly, that their role
was really their ability to put into words what people wanted but could not
articulate on their own. And then to help people get clarity, and then build
on them an action plan.

I submit to all of you that you’re missing an enormous opportunity if you

don’t take that role of verbalizing and articulating - and I go out of my way
to do it. You might think I’m crazy when a speaker gets ready to go off,
and I nail them for more clarity and more articulation, but doesn’t that
make a big difference. Doesn't that open it all up. The same phenomena,
the same dynamic, the same methodology, the same tactic I’m using is
what you can use. And it works. Not because it’s manipulative, but
because it's the most benevolent and honourable and wondrously
contributing thing you can do for people.

You're helping people get off their chest something that they maybe
carried with them for a long time and never - it's terribly relief giving. They
watched how - this company, watched how people felt when they found
someone who got it. Who understood it? Who cared? I’m going to try to
tell you by stepping outside of this experience that I'm orchestrating is
that you are a human being. And human beings are immutable, from the
time, whether you’re religious or whether you’re an atheist, and you
believe God put us on the Earth or fish crawled out and turned into man; it
doesn’t matter. From that point to the time there's Armageddon, or we’re
annihilated by nuclear holocaust; human nature is human nature, is
human nature.

And you have the wonderful opportunity to contribute to it at the highest

levels, and have the greatest joy in - I’m having a great time. Can you not
tell that? I’m having fun. But I’m having fun trying to change your lives
forever, not having - trying to be a brilliant platform speaker who's going
to get 10's on the ranking. I don’t care if I get zeros. That's not what it's
about. It's about changing your life so you can go back in your businesses
will be valuable, and you'll be able to contribute to a lot more people and
help them and protect them and enrich them, and you'll make a lot of
money, and you'll do good work with it, and you’ll retire and have
happiness, and your family will have more of your time and get the best
out of you because you won't be stressed out, and that's the same kind of
a mind-set as far as futuristically looking transaction ally at the impact
you have on people. It's just wonderful. Hold on.

Makes sense, doesn’t it? Yes. Okay, they saw themselves selling a point of
view. Never saying, ‘Do you want -' never saying 'Oh, do whatever you
want, everything’s okay.' that would be to steal. And I’m going to
interchange. I believe you have a moral obligation. If you’re going to be
the most trusted advisor somebody has; a fiduciary; you have a moral
obligation to never, ever, ever allow anyone to buy less than they should,
a less combination than they should, and less quality levels than they
should, and less frequency than they should. Not for your best reasons,
but for theirs, because they will get a lesser outcome. Do you understand
that? At the very least, you owe it to them. You owe it to them to educate
them.

Point of reference. Am I screwing up dinner? When’s lunch supposed to

go? You want to go to lunch or you want cold noodles? You make your
choice; it doesn’t matter. Okay, presume - i need a glass. This is dirty; I
need a white glass, clear glass. Anybody got a clear glass at your table?
I'm not going to drink from it; doesn't matter. Could be - it could be - it's
okay. This is fine, thanks. A reference. Pretend I am Jay Abraham and I own
Jay Abraham’s bottled water shop and water bar, and - what's your name?
What is it? Narima comes in and throws a dollar on the bar and says, 'I
want a half a glass of water.' If I go, 'Okay, sure. No problem.' And I go -
and i pour it and give it to her knowing as I do that she needs to get seven
and a half more of these each and every day, so that her body's cellular
structure will be nourished, so that her brain chemistry will work, so her
elimination will eliminate, so her mind will operate and peak, and she'll
have the greatest, stress less life, that she'll be greatest contributor to her
either - her business, her clients. The greatest mother, the greatest wife,
the greatest spiller of water. (Laughter) The greatest - if I don’t at least do
everything in my power to educate her so that she at least understands
the implications, then knowingly she can make the decision to only have
this half. But I exercise my responsibility as her fiduciary; do you
understand that?

Same thing if she came every two days and bought eight glasses but
didn’t in between, and I took her money without first making certain either
she was getting the other eight somewhere else or at least she knew that
she would be benefited much greater; I’m stealing from her. Doesn’t mean
she has to do it, but that’s the mind-set you have to use. Because a lot of
people say, 'Oh, I couldn't possibly push her to buy more than they want.'
People don't know what's in their best interest. Do you think they all do?
Do you really? How many think that most of your clients really optimize
what they could be getting from you whether you sell products or
services? Raise your hand if you think most of your clients optimize it.
Raise your hand if you think there's a lot of work you could do to help
them.

So this should be a reference. When you go home, on your desk, put a half
a glass of water at all times and use it as a reference model. Seriously.
Many people are very clumsy, very self-serving in their efforts to sell. That
shouldn’t even be - it just shouldn't be necessary if you don this. It should
be just a fluid, natural thing, because you know it'll work, because your
intentions are right. And it's like this concept, I said to everyone, - we have
a plan we start this program on, and we don't much care where it goes to,
because it always works out, because our intent's right. We know you're
going to get involved. If it goes in the wrong direction, we - it’s like it’s a
raft; if they get a little bit off, they put the oar in and change around. It
always goes downstream, it always ends up at the takeout and everyone
has a great experience, and if you flip a little bit, that makes it more
exciting, doesn’t it? Really. As long as you keep your feet up and don’t get
trapped under a rock. (Laughter) I think this could be a little dicey. Hold
on.

If you live by a belief system that’s genuinely outwardly focused; that's

genuinely sees your higher causal purpose as being to enrich and
contribute to other people's lives; not just to make money; to bring
greater benefit, greater protection, greater advantage, greater financial
benefit, greater savings, greater safety, great productivity, greater
whatever; it really is a job. It really makes the process so much more
enjoyable; you can’t wait for Monday, can't wait for everybody. It’s like,
this poor guy came up to me, and I felt so bad, that he said, 'I’ve got a
terrible reversal in my business. Maybe here; maybe left,' he said, 'I want
to know if you’ll take half the fee to take the home study and let me stay.'
It was at 2:00; I said no. I said, 'But I’ll let you make turns, you can make
payments for them for 50 years, if that's what you need. But if you don’t
revere it, go home.' But I’m very much empathic to people. I know people
take advantage of me, but you can be very flexible, but you can also be
very business-like.

It's really difficult to do if you do not believe and live by what I'm talking
about. Seriously. If you don’t believe and live with a focus outwardly - it’s
like - and I say it again here, but I'm going to pre-empt this. Most people
fall in love with their business, their profession, their product, their
service; being the fastest growing company in the market. That's not the
key. The key is to fall in love with your client. Live for their betterment. I
mean, like the realtor - don’t think about the commission. Think about,
'Man, I saved this person $50,000. They got a better mortgage; they're
going to have $50,000 more of asset value. They were going to buy this
house; I was able to get them a house that's 20% better now. It’ll probably
be worth $1 million more; their life will be enriched. It'll be a better
neighbourhood, every time they drive home; they're going to be so much
more joyously relieved. Their stress will be - they're going to wake up and
they're going to have such a glorious life; their values are going to
appreciate; their kids are going to be able to get such a greater influence.
Their success is going to be -' think about that. If you start living in that
kind of a mind-set, and stop - never again see yourself as a lowly
commodity; it’s pretty powerful, don’t you think? Hold on.

To live by this belief system, and outwardly focus, is just so cool. But if you
don’t, it's just horrible. Secret to making business really exciting is to be in
a passionate awareness and a commitment to a higher purpose; and
higher purpose that’s not your own enrichment. Although, duh; the
greatest benefit that is bequeathed you for being self - the most selfish
thing you can do, is be self-less. And Chet was out there; I said, 'Chet,
you'll have 40 great companies coming up here wanting to either do long
term deals or joint ventures with me, because they see that we can help
them better than anyone else. Not because we're manipulators, but
because - it's just so - it’s like in the - and we know those, what is it,
beginning of the constitution or Declaration of Independence? We know
these truths to be self-evident? It's really power - I’m trying to give you
like a key here; this is like really seminal stuff. A little bit awkwardly
presented.

So the secret to making business really exciting is to be a passionate

awareness, commitment to higher purpose. The higher purpose is not
your own. It's a different kind of financial psychic or transactional
enrichment of other people. That's what you’re focused on. Helping their
lives be better; helping them be more fulfilled. Helping them to get more
out of the process, or life itself. Whatever you're doing, whatever relevant
result your product or service or company deploying its efforts, and they'll
be half producers. This company that I based this on saw their purpose as
making their client the centre of attention. They saw their purpose to
bring people in sequentially. You'll see that when Carl and I are
interviewed tomorrow, or when I interview him, or Rick interviews us, or
Mac interviews us.

And they found - they believe people are on a continuum; they're not all
ready at the same point. And they keep bringing them all, and advancing
them. Not just sort of coming in and out. Static, but starting somewhere
and progressing them and not starting everyone at the same point,
because different people are at different points in their life. That's why I'm
hitting you with so many different points; not trying to overwhelm you. I’m
hitting you with the same message from so many deferent avenues
because - did you ever have a revelation in your life? Did you ever have
an epiphany? After you have it, do you ever think, 'Damn, that's always
been there. Why didn't I see it before?' Because the convergence of
factors, the alignment of the stars and moon; something happened.
Something transformed you. And guess what? You saw it. That's what I’m
doing for you. That's what you have to do for your clients.

All three categories. The one category that pays you; the two categories
you pay. Hold on. Keep in mind - as I said, you are a human being. Human
nature is immutable. It's been immutable from the beginning; it will
continue. When you understand that you are human, the way you react to
me or you react to each other is the same way all your clients and all the
other human beings will react; it gives you great power. Ethical power; to
harness and direct, in a very benevolent, in a very, very heightened and
very, very purposeful manner.

This company that I built this on, they felt hopefully - they felt very
hopeful about their clients. They saw them - they were in the investment
field, they were in the health field. They saw older people living vibrant,
longer, richer lives. They saw people over 60 having just wonderful sex
lives. They saw investors not getting wiped out, but building great wealth
and security, and not being stressed and retiring early; and having the
time to do everything they wanted. That was their real vision that drove
them; it was indelibly imbedded in their minds and in the minds of
everyone they hired and dealt with. And that's how they all - when I
interviewed 20 people, they all mirrored the same thing. Am I wrong, Mac
Ross? Where are you?

I’m absolutely right, aren’t I. This is really right on the money, isn’t it? It's
powerful stuff. They always embrace their client's situation with hope and
promise; just like my hope and wish for you is that you will get so much
more out of everything you do every day from now on. That you'll allow
yourselves to get so much - got to read my notes, because I won't do
justice to them. More productivity, much profitability, so much more
connectivity. So much more residual value, from every dollar, every effort,
every opportunity, every interaction. Every client. Same philosophical
basis what these people live by, and what they communicated to their
clients. They had hope. Hold on.
It's like - somebody said something to me one time, and it was really
insulting, but for the wrong reason. It was a cynical journalist in the UK
that was interviewing me at a very, really wonderful program about this
size, and he said, 'Are you like most of these people; you actually secretly
sit there and think, "I wonder what those girls would look like naked?"' And
I said, 'Honest to God, there are probably a couple.' (Laughter) But I said,
'Truthfully, no. I see everyone in the room as innocent little six year old,
four year old, five year olds that I get the chance to bring back to
innocence and hopefulness and possibility. And I see them like sheep that
have gone astray; baa, baa, baa. And I get a chance to re-excite them,
and re-direct them, and re-ignite their passion and their sense of
possibility and purpose, and then give them specific -' and that is really
what I believe, but I'm not saying it so I'll sound like such an almighty
wonderful person.

Although if my wife's in the room, hopefully I'll get laid tonight. (Laughter)
But what I really am trying to do is show you that what I really believe is
that you have the opportunity of doing this for your clients, because
you're all a bunch of little children. We're all scared kids; me too. I just
either don’t show it quite as badly, or I have passed through a couple
more learning curves, but everyone is scared. Everyone wants to find the
wonderment of their childhood. Help them, lead them, guide them,
nourish them. Give them the confidence, the security, and you won’t
believe what will happen.

So, these people have incredible hope. Okay, hold on. And also, you'll
have so much more appreciation for everybody, and you will have so
much…(audio missing)

Jay Abraham Mastermind Marketing 19

…standing ovation; go home and do nothing. I made a lot of money, but I
felt like I was cheating you. Now, I don't get a standing ovation; I don't
need it. But you guys can't help it. Unless you're brain-dead. I'm going to
come at it over, under through; from the front door, the back door, CAT
scan; hit you from every pursuit. You think it's possible that what I'm
doing; what everyone else is helping me do and everyone at this table and
everyone in this room is doing for one another, isn't going to haunt you
favourably for the rest of your life? Do you think it's humanly possible that
it won't? You could do the same for others. Hold on.

Mac, the story of the two Greek [unclear 00:47]. Who were they?
Perecules and Damocles? Which one was the professional? [Unclear
comment from Mac 00:54] Which is the one that they followed? The
general? Okay, the story about - you want to tell it? So I tell it wrong, but it
doesn't matter.

Two stories. There's - Greek - Greek battling Rome. That's right, Sparta.
Who cares? (Laughter) Somebody's battling somebody. There's these two
people that try to mobilize everyone to go to battle, right? Is that okay?
One's professional order named something, the other's a lowly general
farmer. You head the story every way; it doesn’t matter. He's not as
profound a communicator, right? The order comes up and from every
filament of his professional being; [unclear 1:38], and articulates and
compels them, and when he's done, everybody goes, 'Whoa. God, that
was the best speech I ever heard. Bravo, bravo. Kudos, Kudos. Encore,
Encore.' Then the - it could be the general; or my interpretation was a
lowly farmer who had a passionate connection to the land. I like my story
better even if it's not true.

And felt his family had been there for decades. He couldn't possibly
imagine his children not continuing there, not enjoying the same joy he
had. He couldn’t imagine the beautiful purity and the virginal - the
greenery being desecrated. He couldn’t - and he talked from his heart,
and he wasn't eloquent. He was passionate, and his felt - he loved Greece.
Greece? He loved Greece, he loved the people. When he was done, you
know what they said? 'Let's march.' So do you want people want to say
how cool your advertising is and how clever your marketing is, or do you
want them to march with and for you, because you're looking after their
best interests?

That's the difference here, that's the difference here. People have to
recognize your advice as a solution - excuse me, let me finish this. You
don't want them to say, 'What a great ad.' I must - they have to recognize
your advice as solution to a problem they feel emotionally, as well as
rationally connected to. Those of you who can't understand how
somebody can't see - you ever do something and say, 'I don't get it why
they can't see the logic in this?' or 'That's obvious?' ITs because you didn't
reach them on the right levels. You didn't understand their reality. Like I
quoted yesterday. the Eastern philosopher, Krishna [unclear 3:16], and
somebody gave me the book and I can't remember - what's the name of
the book, whoever yelled it out to me? If she's still here - hopefully she
didn't leave.

That book was - he said, 'You've got to take the time to observe,
understand, examine, evaluate, reflect on, empathize with, how other
people see life.' Don't have to agree with it, but if you don't appreciate
and understand it, how are you going to take - how are you going to lead
them, how are you going to help them, how are you going to resonate,
how are you going to be able to guide them? How are you going to help
them get what they want, if you don’t care about what they feel?

They have to recognize your advice as a solution to a problem you feel

emotionally - I said that. Okay. I've shown you already how one little shift
can make the biggest difference in the world. Well, you got to do that for
your clients, all three categories of it. Okay. What you can be providing
people can either be a great result or a good or better feeling, or both.
And it's very important you understand that. Maybe you don't have a
distinctive advantage on price or performance, but maybe you have
massive [unclear 4:22], the way you can get into their awareness, into
their - you can empathize. You can acknowledge them. You can respect
them. You can empathize, you can advise them. Everybody - individuals,
people, your clients, your employees; they want to, so very badly, to feel
good about themselves and the way they conducted their decisions and
their life. More people take less action because they're afraid it won't be
right, they're going to look dumb, or they will have screwed up.

Your job is to acknowledge that reality, and to say, it'll be alright. The
world won't collapse. Something happened earlier, and I was really livid
about something, and I said, 'It's okay. It didn't please me - it'll be okay.
We'll get through it. No big deal.' People do more things to curtail making
gains, because they don’t want to look foolish. This is where risk reversal,
both financial and psyche, comes into being. They'll work harder not to
look foolish than they will to work to an advantage. It's human nature.
Don't argue with it; accept it.

Now, because I want to get you fed, I’m going to stop this, and if time
goes on, I'll continue it later, but I'll give you - no, no; I'll give you a
shorter version, because they're some other points I didn’t make. So my
belief is that each and every one of you have to decide you're going to be
the most trusted advisor. You're going to be their fiduciary;. As one, you're
going to fall in love with your clients, not yourself. As one, you're going to
deal with people who buy from you as clients, whether you verbalize it
that way or not; you're never going to call them customers, you're never
going to call them patients, you’re never going to call them - whilst
everyone is leaving, I'm going to give away something free here. When it's
here - and you’re not going to know about it.

You know why I call everybody clients? Some of you who have been
around me, and a lot do, because - look it up in a Webster's. A customer - I
mean, we're in a world where the whole world is - there's like two different
elements of the world trying to smack us down to commodity status and
marginalize us. Consumers who are getting better educated and want to
just let us have no money to stay in business, to nurture and relish, and
nourish quality people and quality service and performance, and you've
got competitors who don’t want anyone to see us as different. We can't
accept that. We've got to draw a line in the sand, and decide that once
and for all, we are proprietarily unique. We are different.

The way to do it first of all is not call anybody a customer because you
look it up in a Webster's, it says 'somebody who buys a commodity or
service;' you're saying 'Hey, I’m worth nothing, I’m a generic marginalized
commodity. Have at me. Want me to cut price? Sure. Here, take a little bit
more margin; is that not enough?' Same thing, unfortunately, even
patients - patients are not - they're somebody getting treatment. Clients;
look it up in Webster's. 'Somebody under the care, the protection, the
well-being of another.' It's a much more loftier role.

Much more spine-tingling, heart palpitating, powerful thing. When you're

falling in love with them, you will never, ever, ever again allow them to
buy less than they should, less quantity, quality, combinations, frequency.
Because they're stealing from themselves and you’re facilitating and
contributing to it, and it's illegal. It's certainly immoral. You will always tell
them what you really believe and why, and what's in their best interest.
You will polarize. Some people will not like you, and that's okay. Five or six
people left at 2:00. Think I'm traumatized that I lost $25,000?

No, I’m very gratified that I gained resonance and connection with 645 of
you. And I learned a long time - actually I learned this from Howard Ruff.
Polarization is very good, not for it's pure effect, but because you've got to
be committed to serve a category of people, and you can’t be all things to
all people. Better to be loved or hated than tolerated, because unless you
really do something terrible; unless you kill somebody or rape their wife,
or do something horrible, they don’t have time to hold a grudge. They just
won’t buy with you. But if they love you, man; they'll do anything you ask.
They'll move through mountains, won't they Mac?

And the key to - we're giving you all these great marketing things, but
everybody thinks, 'Oh what manipulative things do I have to say or do?'
And we're going to give you great scripts and Chet's going to teach you
this. But the truth of the matter is, once you understand the strategy of
pre-eminence, it's all about how much more value do you have to render
that is appreciated, desired? And the key is, you've got to be seen,
because you are the only viable solution to a problem or an opportunity
that they've never had verbalized before, and because I want you to get
off to lunch, I'll say only that the strategy of pre-eminence should
underpin everything you do. the ads you run, the sales approaches you
use, the culture that you develop, the relationships you have with your
people. Hopefully, the relationships you have with your loved ones.

I just think it's the coolest thing in the world, and I haven’t done it justice,
but - and after lunch we'll come back and - Rick, what are we doing after
lunch? Rick? Oh, there's some messages and announcements I got to
make. What is it? Name tags. What's the message about name tags?
[Unclear comment from audience member 9:41]

It's also your entrance in and out, isn't it? We don't want people who
aren't here. We found somebody who didn't belong here; we very
graciously offered - they didn’t know that they didn't, and they couldn’t
afford it. We gave them very great terms; didn’t want it. And we asked
them very nicely to leave, because they didn't belong here. Some people -
we don’t - keep it, because it's a souvenir too; you can frame it when you
get home. Honestly. And you want people to know who you are, because,
again; if you get what I’m all about, and if you don't, you shouldn’t be
here; you want somebody to feel comfortable to say, 'Hi, Greg, let's talk.'
You don’t want someone - you don’t want to feel awkward. Are you more
elite than anybody else? Make it easy to do business with you, don’t make
it difficult. Make it easy to contribute. Make it easy to feel - willingly share.

One last thing. I've got to tell my story about Australia again, because I
think it's important, don’t you? Interesting? I’m going to tell it real quick.
I'll just tell the bottom…(audio missing)

The only way you'll ever become the most interesting person in the world,
is to become the most interested. And to listen. The only way you’ll ever
become the most important person in the world is to make everyone
around you feel and know that they are important. The only way you’ll
ever become the happiest person is to make everyone else happy. the
only way you'll ever be the most respected person is to respect, and it's a
mirror image of whatever you want, and it's the most liberating - like the
secret is there's no secret. It's real easy.

Okay, Rick, what do you want me to say before I let them go? Have a
great lunch, and when they come back, who are they going to be with? An
hour and a quarter lunch. Remember - stop; before you leave, all of you
who were on - in the line and didn’t get done, and all of you who stood up
as users of each of those techniques that we showed, who promised you
we'd sit at the tables, share what you did, how it did, what the impact
were; take your plate and go to someone else. Please uphold your
commitment. I trust that you will. Anything else? Thanks guys. An hour
and 15 minutes. [Audience chatting to each other, music playing until end
of audio]

Rick: Our next presenter is a close associate of Jay, obviously. I know him
because I’ve been working with him for the past week, trying to formulate
his presentation, and help him get some of his material to you. One of the
things you need to know is that his material is on the bonus CD. So Jay
thought his stuff so vital, so important, that he and Jay - or Jay and him,
worked out an idea to get the material on the CD and maybe he'll talk
about it in a little bit. But he is a strategic consultant, executive coach for
Silicon Valley companies, and financial institutions. And I’d like you to
give a warm welcome to Paul Lemberg. (Applause)

Paul: Thanks, Rick. Thank you. Am I on here? Good. I’m counting on Rick
to do the slides. I don’t have ADD, but I do have a bad memory. (Laughter)
So the slides are - I’ve got to look at slides to be cued. I have a confession
to make. I’m a little embarrassed about saying it in light of all that we've
heard for the past day and a half, but I don't feel as if I have room to take
on any more work. And I don’t know, I ;m wondering; I wonder about that.
As I say it, I’m a little embarrassed, and I wonder if anybody else feels that
way; that they have room, given everything that they're doing, all their
projects, all their companies, all their tasks, everything; that they have
room to do more than they’re currently doing. So, a show of hands. People
who don't feel like they have a lot of room to take on more.

Yeah, that's kind of what I thought. It's about half the room. And the rest
of you; about how much room do you have? Do you have room for about
10% more things? Show of hands. 10%? 20%? Hands down - hands stay
up for twenty - 30%? These guys aren't working very hard. (Laughter)

Audience Member: no, we're going to work smarter.

Paul: Right, you've got to work smarter. I'm going to talk about strategic
focus, but on the CD is a program called double your new business
opportunities, which is how I met Jay. I decided to create a strategic
alliance. And I called up Jay to talk to him about this, and I ended up as
part of your bonuses. And I ended up here. So, flip to the next slide. Can
anyone count the black dots? (Laughter) It’s hard, right? Can anybody do
it? Is there anyone who can count the black dots? You can't. No, you can't
count them. You can assume how many there are, but as soon as you look
at them, they're gone.

I feel like that's the issue of focus here; you see the black dots in your
periphery. I thought they were in my periphery. And then when I went to
look at them in my periphery, they're not there either. So we'll talk about
more of those later. Why don't we go to the next slide? I got this exact
statistic from my friend Tom Mason, who is sitting there. '62% of all
business of all kinds, fail within the first six years.' And for franchises, it's
even higher. It's supposed to be lower, but it's actually higher. So why is
it? Why is it that those businesses fail, why are businesses in trouble, and
what can you do to be successful with the material here? So who was it;
was it Brain Tracy who said it? He said - there he goes; he gave it away.
'What matters most about this program is what you do....?' (Audience says
'Afterwards.') 'Afterwards.' Right?

And we come here, and there's - we already have ton to do. Most of you
admitted that you don’t have room to do more. What I loved about the
strategy of pre-eminence, is that it doesn't require me to do any more. It
requires a change in being; I might have to be differently if I’m not already
being that way, but I don’t actually have to do any more. But I’ve already
got a list of about 65 things that I now want to do, and we haven't even
gotten to the tactical part. Right?

Who's list - let's count lists. Who's got a list of 30 things? 30. 40? You guys
have small lists. 50? Alright, upwards of 50? Okay. Anyone upwards of
100? We have a lot of things to do, there’s a lot to do here. I’m going to
move this, before I fall over it. Slide?

So, the beginning of the program, Jay asked everybody who had taken the
grounding material, to come up to the mike and talk about what they had
done with the grounding material and how they'd profited. I did a little
quick calculation. It looked like 3% of the audience had actually taken
action, with - I don't know; what does Jay say? $80 million dollars' worth of
material, that was being handed to us on a platter. (Laughter) $80 million
dollars, and 20 years of stuff? And there it was, and only 3% of us took
action on it. How come? Somebody said to me this morning that yesterday
was like a fire hose. And he said it in a good way. 'It was like a fire hose;
the material.' All this material, coming at you, all of these ideas.

The problem with the fire hose; at least for watering purposes is not much
of the water lands there. It goes everywhere else; it bounces all around,
but it never gets the chance to soak in. Each new bit of water that comes
out of the fire hose, drives away the previous bit of water before it has a
chance to soak in. So what happens? It just - it ends up watering the lawn.
And if you try to water your lawn with the fire hose, you turn your lawn
into mud. So fire hoses are great for this kind of subliminal grounding, and
I think that's what Jay's talking to us about. This kind of subliminal,
background of information, but what we really need to be able to
implement the ideas, is to turn the thing down to a trickle.
I don’t know. That's how I feel. That there's so much to do, I don’t know
what to do first. And the whole issue of strategy is to figure that out. Okay,
I want to talk about something else for a minute, and then we're going to
get back to it. I'd like to see if you would stand up; because I really want
to clarify this. How many people here are oper - no, no; you don't all have
to stand up. (Laughter) How many people here - see, you were quick, and
I like that. How many people here are operating more than - I’m going to
say two major projects; that might be two businesses, that might be two
completely disparate projects within the same company structure; but
basically operating two businesses? People, stand up. Stand up.

Wow. Look at that. Just look around. So everybody here is doing more than
one completely - one item having nothing to do with the other type thing,
aren't you? Boy, that is distracting. Okay. Why does that happen? Why
does it happen? Go back a slide, if you would. It looks like it’s an
opportunity. I was with some clients this week, and what we ended up
doing was cutting out a whole big segment of their business. And the
biggest concern about doing that was that it'll help us cover our fixed
expenses. So, as entrepreneurs, we say, 'Wow, we've got fixed expenses,
and some of us have significant fixed expenses. We've got all this
overhead, we've built up businesses, and there’s a lot of fear. There’s a lot
of fear that there's not going to be enough customers. There's fear that
there’s not going - clients. There's not going to be new clients. There's not
going to be new cash flow. And an opportunity comes along, and we grab
onto it like it’s really an opportunity.

It might be a distraction. It's always cash flow. Right? Fear leads us to

grasp on to every [unclear] business opportunity which comes by,
because we think that it's going to provide - and it will. It will provide cash
flow for us. So we say, 'Wow. I’ve got fixed expenses, and I’ve got to cover
them, and here's an opportunity of something I might be able to sell to my
customers - my clients. So I’m going to do it.' Or here, 'Here’s another
opportunity; that looks really good because I can grab on to all these
clients over here, and that'll provide some cash.' And I come over here
and I do the same thing, and one thing that I’ve noticed about
entrepreneurs is we're very sensitive to cash flow. So we say, 'Huh; this'll
give me more cash flow. I’m doing it.'

Okay. Al Ries. You know Al Ries of positioning fame; Ries and Trout? Ries
wrote a book called 'Focus,' and it's a pretty short book; it’s about 150
pages. It's great. It's on one thing. It's on focus. And it's just example after
example after example of focus. And he says in case after case, every
single company, and the one that stands out is Coke and Pepsi. And you
have Coke, which is a soft drink company. And then you have Pepsi, which
is basically a soft drink company, but it’s also a restaurant company, it's
also snack food company. I don't even know all the other things that
they're in. But if you compare their market value on a per-share basis,
their market value for Coke is higher. And if you compare, according to
Ries's research, every single company where you have focus company
and a diffuse company; the focus company is worth more. In every single
case.

So, does that really relate to you as entrepreneurs? I don't know. Maybe,
maybe not. I throw it in as something to think about. I'd like you to do this,
just for a minute.

Everybody take out a sheet of paper. You've all got sheets of paper that
they're taking notes. Just write down, quickly -we'll spend 30 seconds.
Write down all of your major projects. Go. It's not a Rolex, but it will keep
time. Look up if you're done. I'll know if we need more time. Y'all need
more time; keep going. All your major projects, all the things that are
bringing you money, that you want to use to bring you money, that you
think one day if you do it well, it will bring you money. Things that you
want to do that won't bring you money but somehow fall into your
business; all those things. Just keep writing them down. If you go past 30,
go to the next side.

And count them up; write a number next to them. How many they are, so
that we know. We want to get data out here. Alright, I’m going to stop
here. We have to do a countdown to see how many it is, right? You start at
the high number and go back? I always mess this up. Does anybody have
more than 50? Nobody could write that fast. Okay, so nobody. More than
40? 30 or more? See, I didn’t need the second slide. 20 or more? That's
not that many; this isn't bad. 10 or more? That would be between 10 and
20. And then five to 10? Okay, so that’s two-thirds of the room. And then
five or fewer? I'm double counting, but that's okay, we're not statisticians.

Okay, good. So that's actually a manageable number. Five projects, ten

projects; somewhere up to 20 projects; but for at least two different
disparate businesses. Next slide.

So what is strategy? We've talking about strategy, and one thing we know
is that if you get a bunch of strategists in the room, everyone says it’s
something different. So, what strategy is, and this is sort of a military
definition; is strategy is the deployment or arrangement of your resources
to produce - and the selection of tactics and tools to achieve your
objectives. I'm going to say that again. It's the deployment of resources
and the selection of tactics and tools to achieve your objectives. So that
assumes a few things.
One, that you have objectives, which most of us have; and some don’t.
And then it assumes that there are scarce resources. Go to the next slide.
By definition, resources are scarce. You see, if you have infinite resources,
you don’t need strategy. Militarily, the force with the biggest resources
just does a frontal assault. And if your large Fortune 500 company, who is
your competition wants to crush you, they just march forward. And they
just roll right over you. So that's not a big time strategy. If you have
infinite or very, very, large, hard to exhaust resources, you don’t need
strategy. You just do whatever comes to you and usually works. Next.

So by definition, resources are scarce. So, what's leverage? We've been

hearing a lot about leverage. And what leverage is, is when you're inputs
are low and you're outputs are high. So leverage was Archimedes;
remember Archimedes said, 'Give me a lever long enough and I can move
the world.' And what he meant by that was if you had a big enough stick,
and a place to hang it, he could move something very large. Low input,
high output.

So increasing your leverage is very specifically keeping your inputs the

same and raising your outputs. Or lowering your inputs and keeping your
outputs the same. So far so good, right? This is going somewhere. So
strategy is positioning your resources for the greatest leverage. Right? You
can do things with your client list. And depending upon what you do with
your client list, you'll get more or less leverage. If you were in Mac's clinics
last night, you find that you can get more or less leverage out of an ad by
how you write it. And then if you fit it into your business strategy, you can
get more or less leverage out of it. So everything that you do, you can
make a strategic decision about, and get more or less leverage by how
you position it.

So now we know what strategy is. And then we'll figure out what we're
supposed to say next. Strategy is using your resources in the maximum
way and positioning them in the maximal way, and selecting your tool;
because remember, I'm assuming that you all don't have infinite amounts
of the most scarce resource, which is time. Which is where we started.
Time is the scarcest resource here, and then my guess is the next scarce
resource is money. And then after that, I don't know; it's different for each
of us. So we know what strategy is. So then we come to the hard part,
which is that we live in a world of vast choice. And I have this word - a lot
of people don't like this word; I love this word. It’s one of my favorite
words. And its sacrifice. Sacrifice is an ugly word for people. But what
sacrifice is, is giving up something of value, forfeiting something of value
for something of even greater value.
And this is a key strategic issue, because as a strategist, you have to say,
'How am I going to deploy my resources? Which opportunities am I going
to choose? Which of these - how many tactics are we going to learn?' 93
different referral systems. Wow. I am awed by 93 different referral
systems. Which one are you going to use? You have to make sacrifices.
You're going to make sacrifices on behalf of your clients. You're going to
choose which ones to serve more highly than others. You're going to
choose which projects to underwrite. Sacrifice. Next slide.

Priority. This is another word people struggle with. You ever hear people
say they have multiple priorities?

(Audio missing) ...number two priority. There are no number two priorities.
Priority means first. (Laughter) Priority means first. When you make your
priority list, there's the first priority. Everything else doesn't matter. Why?
Well, if you have a well-ordered priority list, you do the first item, and you
go back to the list to see what the priority is now, because the world
changed. You did the first thing, and everything else is different again. You
know what the bad news about being the second priority is? You may
never get done.

That's really important. So now we've got sacrifice, and we've got
priorities. What else do we have? So it’s all about opportunity costs. Is
everybody familiar with the concept of opportunity costs? (Audience says
'Yes.') This is a really critical concept. Opportunity costs simply says that it
costs you to do something in part valued by the thing you don't do. Does
everybody follow that? That each thing that you choose to do bears the
cost of the potential profits of what you don’t do. And that is the
fundamental distinction of strategy, so we're stacking them up now. We've
got sacrifice, we've got priorities, and we've got opportunity costs.

I’m going to switch gears a little bit here. (Audience member: Repeat one
more time, what...[unclear 1:25]) I’m sorry, say that again. [Inaudible
1:29] Opportunity costs means that everything that you choose to do, the
things you actually choose to do, bear the cost of the things you - bear the
potential cost, or the potential profits, of the things you choose not to do.
So for example, you have two opportunities; we'll make it simple. You
have two customers that you can call on. One of them's local, and one of
them is somewhere not local. For lack of a better example.

And you choose to fly to the one that's not local. Well,, you have an
opportunity cost there, which is the sale that you don’t make to the one
that's local. That's a really simple example. In your businesses, if you have
more than one business, and 90% of the people here have more than one
business; then the time that you spend on Business B takes time away
from Business A. Now I’m making an assumption. I make an assumption
that Business A could still use more of your time. And if that's not true, go
on to Business B,C; etcetera. But if it's not true; and I don’t believe it's
true for almost anybody here, just from people I’ve spoken to; that every
time you work on Business B, Business A suffers. And if you got
Businesses B and C; when you work on C, B and A suffer, and so on.

And the more you've got, the more mightily they suffer. So, I was talking
about freedom. See this - I don't know if this is uniquely American, but I’ve
only really studied it with Americans. Americans believe freedom means
more choices. Right? Freedom means options. Who equates freedom with
options? Am I the only one? Yeah, it's about half, and there's always the
fact of the ones who don’t raise their hands. Because they're
embarrassed. Freedom means more choices. Freedom means more
options. the freedom to go where we want, to send our kids to school
where we want, to buy where we want, to shop where we want, to travel
where we want. There's a lot of freedoms that we enjoy, but us as
Americans, we believe that freedom means more choices. And I say that
we carry that into our businesses, which is that we want more choices.
And then, here comes that old business opportunity that we had over
there. And why can't I do that too?

I looked at this, saw there was a way to get to my house, to here; and
there were about 100 different ways that I could go. I had a lot of choices -
see that's very American. If you drive around Lvov, which is a city - it’s
now in the Ukraine; my father was born there. It was named Lemberg,
which is my name; when he was born there, and it's gone through a few
names, it's been in a few different countries; but when you go to Lvov,
there's almost no roads. There's a few roads; it's an old city; it's
seven/eight hundred years old. there's a few roads; they're all pretty old,
like seven or eight hundred years. But you'll be driving down a street and
it's a street in a city, sort of like this one - not many are like this one. But
you drive down the street and all of a sudden the road is gone. They just
stop.

If you want to go from Point A to Point B, there's only one way to go. You
can’t go the other way; you don’t have the plethora of choices that we
have. Next. We also think that rapid growth necessitates doing more
things. This is a lot of build-up, but we're getting there. That this
necessitates doing more and more things. We say, 'I've got to grow faster;
that means I have to do more things.' And we come to seminars like this,
and it would be great if we walked away with the one or two or three
things, but we walk away with these big long lists of things. And then, we
got to cocktail parties, and we brag about how much we're doing.
And we're going all this stuff - 'Oh, I’m working 16 hours.' I used to work
18 hours a day, and I thought it was a badge of honour. I worked 18 hours
a day, I took a half day on Sundays; that was like 5 or 6 hours, and I
thought I was in nirvana. And people thought I was successful. It was
really a success thing, right? Work harder, it's a success. I got more on my
plate, it's a success. You can’t beat anybody, it's a success.

I did some work with a consultant; a man I hired to work with me on my

business, and the first thing he said to me is, he said, 'Geez, this business
sounds really great.' He says, 'Yeah, you're in the top three percent of all
consultants in the country.' I said, 'Wow.' He says, 'And you're working too
hard.' I said, 'What do you mean by that? I only work about 50 hours a
week.' He says, 'Yeah?' And then he says, 'And look how hard it was to get
this meeting. And it wasn’t my schedule.'

And there it was; I think that, 'Hey, I've got it all handled.' And yet it took
us 10 days to get a phone meeting together. Right, what does that say
about our schedule? And then we wear it like it's a badge of success. I'm
going to say that the only true freedom comes from commitment. That the
true freedom that you have; the true freedom of action; the true freedom
to blow your businesses through the roof, comes from a hundred percent
total commitment to your business. I will illustrate.

Does everybody know this story? This is one of those old speaker stories.
So Hernando Cortez, who is one of these people that came and conquered
Mexico, to be specific; he came and conquered Mexico, (audio missing)

…was working for the Governor of Cuba, and Cortez lands there, and there
are a lot of Mexican natives. They were Aztecs of some variety, and it's a
very special name, and I’m not going to do it the injustice of trying to
pronounce it. They were Aztec variety people; there were lots of them.
There were probably 50 times the force that Cortez came with. Cortez
says, 'Uh-oh, we're in trouble. This isn’t going to go well.' And then, so
what's he going to do?

He wants to go back to Cuba. Well, if he goes back to Cuba, Governor

Velasquez is probably going to fire him, So it’s not going to go well either,
because he'll get fired, you get disgraced, you go back to the country, you
end up penniless; it's not good. So now, he's trying to figure out what to
do. There's going to be a mutiny. His men are about to mutiny. They're
sailing back to Cuba whether Cortez likes it or not. Cortez says no way;
sets the boats on fire. What are they going to do? Now they have to fight.
And they fight for their lives; the rest is history; the Mexicans aren’t happy
about it.
But that’s Cortez. Next. (Laughter) This is my favorite. We were talking
about the Greeks before, so we'll keep talking about the Greeks for a
minute. The Greeks; the Spartans, specifically, were fighting the Persians.
There were 4,000 Persians, and there were 200 Spartans. Leonidas, the
king at the time, knows this is not going to go well. No matter how good a
strategist he is. But he does the smart strategic thing. When you're a little
entrepreneur fighting a Fortune 500 company, and he concentrates his
forces. And he finds a little defile where two cliffs come together, and he
positions all his men there, and they begin to fight.

Now, this is a sort of a Renaissance painting and that's why they're naked.
I don’t think they were really naked, but they wear red cloaks. Does
anybody know why? That's right, because they couldn't see the blood.
They knew it wasn't going to go well, and blood's depressing. (Laughter)
Your buddy gets stabbed, and it's very - it doesn’t hep your morale. And
then you get stabbed, and it really doesn't help your morale. But they
were there, committed to saving Sparta - not Greece; we're going to mess
it up again. to saving Sparta from the Persians. Well, the truth is, they lost.
But they had huge freedom of action, and to me, this represents the
ultimate in commitment. Where they said, 'You know, we're going to take
some lumps here. But we're going to do it in style.' (Laughter) Very big
commitment.

Audience Member: They won the war, though.

Paul: Ultimately, the Spartans won the war, but it wasn't - this, by the
way, was the battle of Thermopylae, which is a pretty famous battle.
You've heard of it; not known what it meant. This man obviously knows his
history; and the Spartans ultimately did repulse the Persians; but not in
this battle. Next. So, let's get to the meat of this. You will walk away from
the seminar, like, it's a guarantee. You are guaranteed to walk away from
the seminar with: 500 things to do, and at least a hundred new - you have
two, maybe three already. A hundred new business ideas, and at least 50
possible joint ventures. I guarantee it.

Jay's not here; I am guaranteeing it on his behalf. (Laughter) So that's

what's going to happen. Check it out. 500 new ideas, 100 new business
opportunities, and 50 - count them; 50 joint venture possibilities. And you
all are going to be like deer in the headlights. (Laughter) 'What am I going
to do?' You go home - what is it? It's not going to be Monday, but it's going
to be Tuesday, and then maybe if you're flying, maybe it'll be Wednesday;
but sometime between Tuesday and Wednesday, you're going to do the
smart thing, which will be to rewrite your lists. and you rewrite your lists
and you go, 'Oh my God.' (Laughter)
And then - the good ones. I’m using a judgement. The good ones are
actually going to be able to winnow through it, and then the rest of us, are
going to get back to work, or whatever it is that we do; we're going to get
back there on Tuesday, or maybe it's going to be Wednesday, and we're
going to do what? Business as usual. Right? I don't know; you've been
away for five days, do you think there's issues waiting for you back at the
office? (Laughter) Think you're going to have stuff to handle? How are you
going to handle those 500 red-hot ideas? What are you going to do about
those 50 potential joint venture partners? Each one is worth at least an
extra seven figures to your bottom line. (Laughter) Right?

Talk about distractions. Well, we talked about the 80/20 rule, right? 80/20,
80/20; I don’t know; it’s been updated. It's 90/10, now I heard its - what
did Fran say? It's 95/5. Maybe it’s 99/1. You get the idea right? There's
some things that work and some things that don't. There’s a small number
of things that produce the results that you're looking for, and then there's
a large number of things that don't. There's a small number of things that
give you the bulk of what it is you're trying to do.

There's an interesting statistic for computer programmers. Any computer

programmers here? Okay. What's the ratio of a really red hot programmer,
to your average one? In terms of productivity? Ten X. Ed Gordon, who is
sort of the emperor of programming methodology… (audio missing)

…to one. That's a productivity ratio between the really, really, really good
ones; and they're not as rare as they sound. But the really good ones -
there's one in every company, by the way. And then they normal ones -
not even the bad ones. We're not talking about the bad ones; we're talking
about the normal ones. A hundred to one. Who's the top sales person in a
company with multiple sales people? Anybody here? Anyone who sort of
fits that description? Okay, you.

How much more do you produce than the average rep?

Man 1: Crikey.

Paul: Roughly. Ball park.

Man 1: About 6 times.

Paul: About 6 times. So I can't do the math in my head standing on the

stage, but that's a lot. (Laughter) Thanks a lot. So the trick is, knowing
which are the 80 and which are the 20, right? Which are the 80 and which
are the 20. Which are the 80% of the things that aren't worth doing, which
are going to produce 20% or less of your results, versus the 20% of things
which are really worth doing, which are going to produce 80% of your
results? And then, because we had 500 things, 20 isn’t enough; because
that's still 100 things. So now we need to do the 20% of that, so now we're
down to about the 4%, and we probably might even want to do the 20% of
that, which is about a point and a third; which times five - that's about
eight things. That sounds good.

You might want to cut it down from there. So, now we're thinking
strategically, and while we're doing that, if you’ve bothered to look at your
business, and this is a good place to start. Make a list - you might want to
note this down, because you won’t do it now, but it's worth doing. Make a
list of all the things that you do in your business. You might go further and
make a list of all the things everyone does in your business, but you make
a list of all the things that you personally do in your business, and start to
rate them. Which ones produce result, and which ones don't? Which ones
make a difference, and which ones don't?

So, the movie City Slickers - Curly says, 'Do you know what the secret of
life is?' He says, 'There's just one thing. You stick to that, and all the rest
of it don't mean anything.' And Mitch says - Mitch is the Billy Crystal
character. He says, 'Yeah, but what's the one thing?' And Curly says, 'Kid,
that's what you got to find out.' Next.

So how do you figure out what to do? This is a quote; I don’t fully
understand it, but I like it. (Laughter) "One should not always think so
much about what one should od, but rather what one should be." Just
remember that. Let's go. (Laughter) Go forward. Start with what you want,
right? So strategy; what's strategy?

Strategy is the deployment of your scarce resources; money, time and

whatever other scarce resources you have; and your selection of tactics
and tools to produce your objective with maximum effect. Alight? That's
the complete definition of strategy, so where do you start? Start with what
you want. So what’s the context for that? What’s your highest purpose? So
your business has purposes. Jay was talking about higher purpose before,
and I'd say that’s a personal decision, whether your highest purpose is
making money, or whether your highest purpose is transforming your
customer - your client; or whether your highest purpose is something else
entirely. But you have a higher purpose. And your higher purpose is
served or not served by the actions that you take. So, you see strategy -
strategy is a military concept. People don’t like that. A lot of people don’t
like the strategies…(audio missing)

…military concept, then where are you? Well, you're into killing people, or
maybe - at the very least you're into competition. Right, so as soon as
you're into competition, it’s a whole other ball game. But - during World
War 2, the French, at the beginning of the war, had as many men and
weapons as the Germans did. The French didn’t know this, by the way.
(Laughter) And that was really the problem. So first of all, they had a
failure of intelligence. But everybody thought that the Germans totally
outweighed them, and the French sort of hunkered down behind this very
long fort called the [unclear 00:31]. And that was their strategy.

They picked a strategy - it was a defensive strategy; it was a bad one, as

we know. And they just sat there behind the wall, and then the Germans
ran around the wall and then France sat out the war. (Laughter) That is a
perfect example of what you do with your resources that makes all the
difference.. You have scarce resources, and in this case, they had bunch
of men and weapons. And you've got a bunch of salespeople, and client
lists and products that you're developing, and so on. How you deploy
them and what you choose to do with them, makes all the difference in
the world, Remember, the Germans and the French were equal. They were
equal in every respect. Except outcome. They were equal in every respect
past outcome, save strategy.

And then, very quickly, they weren’t equal anymore. Because one strategy
went up against the other, and the French strategy caved, and what was
left was nothing. So, what's your highest purpose? So what is it you're
trying to accomplish, and then, what's your greatest contribution to your
highest purpose? Now these are vague. We could get into worksheets and
all sorts of stuff about how to make them less vague. You know what your
highest purpose is. Be clear about it. It might take you a sentence, it
might take you a paragraph; it shouldn’t take you anymore. What are you
trying to accomplish? And then measure every single action that you take
against that. There is no simpler way to define strategy than that.
Measure every single action you choose to take against that. And if you do
just that, that’s how you manage the 500 things, the 100 opportunities,
and the 50 joint ventures.

Because what will happen; most of them won’t really matter. Most of
those 100 business opportunities will be distractions. What's your biggest
payoff? You have these hundred - I know it’s not a hundred; but you have
these 50 - and maybe it’s not 50 - joint venture opportunities. Or these
business opportunities, or you've got the three that you're doing now.
Wow, three's a lot. Could be five, could be more, but not for most people.
So how do you get it? You do the math.

This is the ugliest slide I’ve ever seen. (Laughter) The next one might be
uglier. These are in your book, along with a few other things, but the gist
of this is really simple. No, go back, go back. You want to figure out what's
the results. See, people, I have been at these things. Not Jay's, but Jay's
and other people's; where you meet a lot of people. 'Gee, there’s 750
people in the room.' If you can’t come up with 50 joint ventures, you're
asleep. So you’ve got your 50 joint ventures, but you haven't bothered to
figure out what they’re going to earn you. They seem like good ideas; they
seem like good people, you think there's some synergy, but nobody does
the math. So you got to do the math. What's the payoff? How much is it
going to earn you? Enough. Good scenario, a middling scenario, and a
crummy scenario.

And then you rate probabilities, and you don’t know. You don’t know, but
you have to start somewhere. So you make it up. You say, 'Well, it's 25 %
good and 50% middling, and 25% bad. That'd be a decent place to start.'
And then you throw in some of Jay's strategy, and some of Chet's
strategies, and all of a sudden - well, maybe you shift the odds up. But
you do the math and you multiply it out, and you put a number on it. And
then what do you do? Well, you do it for everyone. Now this is a very short
table; I think it's got five holes in it. You need about a hundred of them.
But you start doing it with every single one. Takes a little while, but it's
less time to invest than the work you’re going to do building this business.
Or the opportunity cost that you are going to suffer in your core business
while you're running around with those 50 joint ventures.

One of them might really pay, yes.

Audience Member: What does the 'W' mean with the brackets?

Paul: Ah, the 'W.' Yes. the 'W' is very important. So we have - I'm just
going to go through this quickly. We've got an opportunity to name; we've
got the value of that opportunity. All that great calculation you did; you
must do this. People who aren’t good with arithmetic, get your kids to do
it. (laughter) Do it on a spread sheet. This should be done on a spread
sheet, right? This is not hard on as a spread sheet. You have to just plug
in the numbers. But you’ve got the value. But then there are ancillary
things, like the availability of resources. So what’s this going to take away
from the rest of your operations? You’ve got the likelihood overall, which is
your best guess.

Now you've done some probabilities, but this guy says - 'You know, in a
reality, this probably isn’t going to happen.' Do you have any businesses
like that? I’ve got one. I’ve got one and since coming here, I’ve decided I
cut it off. But it's like, 'Hey, what's the real probability of that happening?
Am I really going to peel off my precious time for that? I thought it was
cool when I said yes, but now I have to go back and say no.' And then
there’s the last thing, which is there's ancillary benefits, and each one of
these gets a rating, and then each one has a waiting. So for some people,
the value, right; the money out of it, may be the most important thing,
and you'll rate it a nine out of ten. And those ratings - it’s actually a one
out of four; you get one out of four. So that money might be a four, and
then the ancillary benefits might be a three, and resource development;
you don’t care because you believe in infinite resources. So… (audio
missing)

…multiply, and you come up with some numbers, and that allows you to
take kind of an objective look at some subjective criteria, and say, 'Well, I
can do one. Maybe one more.' And those of you who are good for 18 or so
hours a day; maybe you can do two more. But you start to rate it and you
make choices. So about this 500 things. So, Yogi Bear says, 'When you
come to a fork in the road, take it.' (Laughter)

What are the three opportunities? Pick no more than three. Those of you
who have two, you get to pick one. You can't work - how many businesses
can you really work on. Who works really well on four different
businesses? I mean really well; top performing? Who's working top
performing on all three different businesses? Good. That's an amazing
person. Two. We got a few here. So we got two top performers out of a
room of 750 people, and I'd say that's probably about right. Now, just for a
show of hands, who are working really well on two businesses? Really top
performing on both businesses? That's my concern.

So, I’m really generous, and I say top three. You might want to pick top
two; you just might want to pick the top one. Okay, this is going to - I'm
going to finish this quickly. This will hurt a lot of people; you'll be offended.
I'm going to say it anyway. Work on your strengths. Hire people to handle
your weaknesses. Do not work on them yourselves. Either hire people, or
outsource them, or job them out, or flat out don’t do them. But work on
your strengths; that's where your leverage is. Pitchers practice pitching;
they don’t work on their batting.

Quarterback - we have some hands - quarterbacks do not practice their

kicking. Why not? There's no point in it. Torpedo your weaknesses; get rid
of them, get them out of your businesses. Next. And then there's the thing
called the trim-tab, and this is very important; and then we can wrap up.
Buckminster Fuller had this concept. And Bucky said you have this long - I
know there's a Buckminster Fuller devotee in here who will say this more
eloquently, but I'll go ahead. You've got this long ship; you've got the
Queen Mary; it's a big long thing. And way down at the other end, you've
got the rudder. Now, the rudder's the size - I don't know - it's the size of a
small house, on the Queen Mary. So it's not that small. It's not like the
rudder on your little sailboat. But you've got this rudder, and the rudder
needs to turn the boat, right?

The rudder turns this way, and the boat goes the other way. Well, you've
got his big house sitting in the water, and it's moving along at 35 knots.
How easy is that to turn? It's not very easy to turn. So that's the part of
your business that's hard to turn, right? You've got this sales engine, and
it's working sub-optimally, and you've got this marketing engine, and it
really needs help, but hey; these things are going full steam ahead, and
it's hard to really interrupt these things when they're contributing to your
fixed expenses. You don’t want to mess things up.

Right, so the way it works is they put a trim-tab in the rudder, and what
the trim-tab is, is it's a little thing; it's only about the size of a door. That’s
small on the Queen Mary. And that thing can open without a lot of
pressure on it. And the water rushes around the other side, pushes the
rudder the other way, and voila; the boat turns. So Buckminster Fuller said
that he was a trim-tab. That he was one little guy who set out to change
the world, and the way he did that was by looking for the places where he
could act as a trim-tab; being a little guy turning this way or that; turning
the rudder this way and that, turning the boat this way and that. And
that's what you look for in your businesses. So you take that list of five…
(audio missing)

…the winner went down to the top three of the top three. And then for
each one, you just make sure, 'Is this for a top three project? Well, yes it
is. Now, why am I doing this thing anyway?' So define it again; go back to
the strategy within the strategy, which is what are the optimal results for
this action item? And then, how much better are those than the current
results? So you need a weighting factor again, but you want to say 'Hey,
that's really better, and I'm going to do this one,' Or, 'It's not really better
and I'm going to look for the next item. And then, is there another way to
get leverage?

Remember, we're looking for low input and high output. So you always
want to compare whatever it is that you've got to whatever other way you
can do it, and just keep sorting. Hey, you're going to have 500 different
ways to do it. you've got 93 different referral systems. You can sort
through and find the one that's going to be really killer for your business.

So, what will happen if you don’t do it? That's the last question. What will
happen if you don’t do it is good. It’s another way to sort it out. If you
don't take this action, and it's really not going to harm you, you probably
don't need to take it. And then, if all these things, all these questions
you've just asked about that item don't compel you, go to the next item,
and keep going. Peter Block, who's a pretty interesting writer, wrote a
book. It's a good book. I like the title the most. And the title is 'The Answer
to How is Yes.' And I think that's a really powerful question. Which is once
you've decided what your strategy is and you've figured out what your
major actions are, now how do you execute them? The answer is that
there's a way. Once you're down to the short strokes, you know that
there's a way.

And there's no right answer. The only right answer is what works. So, I
don't know; who was it that said this? Someone - there was someone
talking yesterday who said that their business was shooting along just
fine, and they weren’t doing anything. So he said - I don't remember who
it was - who said that, raise your hand? It was you. He's not doing
anything. He's sitting here - he is in hog heaven. Because no matter what
he does, it could probably have a positive impact. So some of you who
don't know, once you sort out your objectives, once you plot the major
backbone behind your strategy; if you don't know what to do from that
500 list and everything's passing the tests, just pick it and do it. And then
just run with it.

So, can you count the black dots? Focus. The answer is strategic focus.
Thank you. (Applause) Jay.

Jay: That was good. Give me the biggest, besides strategic focus, and I've
got a piece of gum in my mouth - apologies.

Paul: Okay.

Jay: What's the biggest thing - Paul wanted to do more but he didn't -
what's the biggest thing you had to take out that you wish you put back,
that only takes a minute to explain.

Paul: Darn. Take Fridays off. (Laughter)

Jay: Serious?

Paul: Yeah.

Jay: Tell me why.

Paul: This is counter-intuitive right, because where did we start? We

started where people don't have enough time. So I don't know; I’m with
Gerber on this one. Which is that you need time to figure out what the
heck you're doing. And if you spend all your time executing, you don’t
take a lot of time to do big picture. That's one of the reasons for a
conference like this. And people come here, in part, so that they can
actually get a high level view of their business.
Jay: Great point. But you know what I recommend, and I didn't really say
it. I recommend they try to stay over a day or two, and de-brief
themselves and their team on what they got; because on Monday
morning, they go right back to status quo, don't they?

Paul: Well, that would work beautifully.

Jay: It would.

Paul: We talked about that a little bit.

Jay: We should almost - I mean, this is funny. I used to have a lot of clients
that had scheduled like, weekly or bi-weekly calls with me, and if I gave
them a directive and instruction; and this week's call, they haven't done it,
I'd say, 'Fine, you've allocated the hour - you've paid me, but guess what
you're going to use it for?' And I said, 'Next week, hopefully, i won't be
redundant, but until it's done, I’m not going to give you the next step;
why?' But that’s good. Go ahead.

Paul: Every CEO I coach - I’m easy; I say the same thing. 'Take Friday off.'
And they'll go, 'I can't do that, I have too much to do. I'm working 12 hours
a day as it is.' So I - they're paying me a lot of money to tell them what to
do, so eventually they say, 'Okay, well I 'll try it.' And it's not like, take
Friday off; go to the golf course and the movies. You can do that, but it's
take Friday off, sit at home in the kitchen, drink a lot of coffee and think
about your business.

Jay: Yeah.

Paul: They do that, and all of a sudden - so what happens is the next
week, they have ideas.

Jay: Yes.

Paul: And they have fixed problems, they have had conversations with
people they've been meaning to have. What they have is clarity. You don’t
get clarity with your head down.

Jay: No, you’re right. There's - Mark Victor Hansen knows the person who
has the original reference notes from Think and Grow Rich; and I asked
him one time, 'What’s the biggest insight that wasn't in the book?' And he
said it's that almost every really significant icon that was interviewed,
would work like hell and they'd take time off. They'd work three months on
and take a month off, or work three weeks on and a month off; and he
said - and they did nothing. Joe Carbol wrote a really seminal book; a little
book on advertising called, 'Tha Lazy Way to Rich,' and he said all his
great ideas came when he was swimming, or bicycling, or shopping; and
he said, 'What does that have in common? Nothing?' But he said your
brain was able to do what it did well.

My big - it's not a regret but when I met my wife, before we had all our
wonderful little boys, I would sleep in, I would sit on the floor and watch
every Perry Mason for two hours before I started my day, and she thought
I was watching Perry Mason. I really wasn't. And I would just walk around,
or I'd go out for four hours, shopping, and let people try to sell me;
observing and thinking. You really mean - you got to grunt - we try to
squeeze all those incredible, creative ideas, and your mind is so much
more powerful; just let it work the way it was designed, and that's - let it
be free for a while, and then just make sure of one other thing.

When it flows, have something handy everywhere; pen, pad, backup

tapes...

Paul: Digital recorder.

Jay: And have back ups, because - and know how to do it, because once it
flows; you think you’ll remember it. You won’t. And if you don’t - this is a
very, very key phrase. If you don't make it a prisoner forever, on some
form; preferably written as well as audio, you will regret it because your
brain will give you a million and a hundred million ideas, but if you decide
to dis-acknowledge them, or to discount them or be abstract and generic
and think the outcome - 'I'll put it in the morning, I don't want to get up, or
it's too simple; I'll remember it; it's so easy.' It won't, so...

Paul: [Unclear 4:08] of course, if you don’t use the ideas, your brain will
stop giving them to you.

Jay: Exactly right. Touché. Alright, thank you so much.

Paul: Thank you Jay.

Jay: Appreciate it. (Applause) Are you going to be here for the power
panel? Okay. Rick, work out with Michelle - dinner. We're choosing dinner
for you. At lunch, did you guys all do what you said you would do, and
people shared their ideas? Was it powerful? Was it extraordinary? And
imagine doing that over and over again, and we're going to try to give you
at the end of tomorrow; a process to do that yourself. A couple of points.
Mac wanted me to do something, and I want to make a point. He was
concerned that maybe you mis-interpreted what either Fran or Mark Victor
Hansen, or Brian said, and I want to amend it, and I want to correct it. And
I want to really address it and attack it.
What they said - not negatively, but they believe in general that it was no
longer the old 80/20 rule. That it was now the 95/5 rule. The 5% of the
people were doing 95% of the real achievements, and they were
lamenting about that and saying most people don't do anything. And I
would agree. But, you don't think of yourself as the 5% of people in this
room are going to do well, and 95 aren't. You guys are already - you've
discriminated by being one of - 650 in the room, but we offered it to a
million people.

So first of all, what is 650 compared to a million? It's far lower than 5%
isn’t it. Number one. Number two; ten people left. I lost $50,000, and one
of them was the young man who wanted me to sell him - staying here for
the same price you would when I offered him terms for life, and he
wouldn't take that; because I thought he basically had no conviction and
morality. But you're already past another one. So I can’t make you
implement what you've learned, but I could tell you; unless you wrestle
yourself to the ground and don’t let yourself, your subconscious, your
mind, your mind-set - if I do what I hope I'll do by this time Monday night,
you can't possibly be the same person you were. You can't possibly.

It is impossible for you not to achieve far more greatness. How high and at
what level? Sort of depends on a lot of things. I used to operate at a
higher level. I'm more laid back now. If I find 10, 20 of you that want to
work with me or me and Chet, I'm all for that. But if not, I have a lifestyle;
I service it; I have all kinds of wonderful friends, and I drink of their
intellect, and I have a good time. You've got to figure optimally what you
want, and that ad that Joe Carbol wrote; he said, 'Man, I make about $3
million a year, and I’m pretty darn happy.' This was in '78, and I knew him;
he was a friend. He had two great houses, he worked about 3 hours, two
days a week. He swam the rest of the time, he bicycled, he was a big
man. He smoked great cigars and sat on his veranda, which the back was
- both - two different houses, was the Pacific Ocean; and he was happy,
but he said, 'I've [unclear 7:16]; they were more aggressive, they were
younger, they were more focused, they had a bigger - something that
they wanted to do,' but that’s not a problem. The only problem is realizing
that after you have your first break through and you make 100 grand or
500,000 or 20% increase, don’t stop there.

Listen to what Chet said, listen to what Paul said, listen to the power panel
we're going to do. Develop a system that keeps sustaining, adding,
building, layering, layering, layering. Next question, or next point. How
many people in this room are re-attendees? How many in this room are re-
attendees who got at least one breakthrough that was meaningful? Go to
the mikes real quick. Real quick. Because Mac feels like you have a moral
obligation; because you got to come back at a better deal; to contribute at
a higher level, so I want to deputize every one of you. That you have a
purpose and you a higher causal purpose for the rest of the endeavour; to
help everyone in the room get more out of it. To help everyone in the
room see what's so unique and special about this. Help everyone in the
room open up and contribute better. Quickly, tell your name, tell the
business you're in, tell the big break - tell what the difference meant to
your business, and tell them the biggest thing you got form it, and the one
thing you'd tell them they should focus on right now to get from what's
already happened and what you know will happen in the next day and a
half. Go for it.

Man 1: Tom St. Lois, marketing strategist from Toronto. I’ve been reading
your stuff and coming to these things for a long time, but the first break
through that meant a lot to me was that as a consultant, I thought that if
somebody called me and said they wanted to meet, I had to go there and
meet with them; spend a lot of time, empathize like hell, then write a
proposal and follow-up. So I did that, and it took a lot of time, and it was
crazy. And at a certain point I was burning out on following-up, writing
proposals and all that sort of thing, and then one day I thought, 'Well, this
risk reversal thing is kind of cool.'

So I wrote a script. And the next time somebody called me, I said to them,
'We’ve got this process; it's called a marketing audit, whatever.' And I read
the script pretty well. I said, 'If you pay us in advance, we guarantee you a
whole bunch of stuff.' So they said, 'Come on out,' and I went to the
meeting, and when I walked in the door, the receptionist said, 'Tom?' I
said, 'Yeah.' She said, 'Here,' and she handed me the cheque. And I went
and sat down; and before the meeting I already had a cheque. In that case
it happened to be $500, and that’s a small amount now, relatively
speaking, but it was a...

Jay: How long have you been doing my stuff? How many years?

Man 1: It's about 15 years.

Jay: That's a long time.

Man 1: So the fact that I could walk into an appointment; they'd hand me
$500, and they were already a client before I met them, and now, instead
of a proposal I could give them a report, and it would hook them into
wanting more services; that was amazing to me, and the biggest
implication was you can make it up. You can make up the rules, and if you
articulate them clearly, with confidence, congruently, people will go, 'Oh,
okay.' Because they don't have an agenda to refuse your rules. If you have
a clear agenda, they'll be swept into your agenda.

Jay: Good, that’s good. And is that what you want them to make sure they
get out of this?

Man 1: That's a great thing to get out of this.

Jay: Okay, thanks. Okay.

Man 2: Alec Thomas, with Performance Marketing Group. We do internet

marketing for real estate agents and others. What I got out of this this
time around, or what really hit home again, was the referral. Use referrals
to create new clients.

Jay: Did you get anything out of the previous one that impacted your
business?

Man 2: Yes, absolutely.

Jay: What's the one thing that you did most, and what's the impact it had?

Man2: Previously it was strategic alliances...

Jay: How many did you set up?

Man 2: The impact was - set up a couple of them, and back then it made
me switch businesses, and now I’m doing a lot better.

Jay: In the business you're in? Are you still in - strategic...?

Man 2: Yes.

Jay: Strategic alliances?

Man 2: No, I need to set up new ones now. That's...

Jay: See, that's why people come back, and that's why I bring more
experts than just my basic marketing, because the marketing works if you
work it, but the guy's going to teach you strategy and the difference
between strategy and tactics. We're going to get you to work at a higher
level, aren’t they?

Man 2: Yes, they are. One other thing I'd like to add, about referrals. It's a
two-step thing. One of them was where you give - compensate people for
referrals. You can do it in two steps. I give one type of compensation for
just a referral in general, but if the referral signs up in seven days, I give a
bigger one. And so they go out and resell for me. Might want to try that.
Jay: Good, thanks. Mike.

Man 2: Mike Fry Francis, Fortune Cookie...

Jay: How many you been to?

Man 3: [Unclear 11:34], this is my 10th.

Jay: Is it really?

Man 3: It is, I’ve been to - six major and then the [unclear 11:39], so this
is the 10th one.

Jay: That's amazing; 10. Okay.

Man 3: I'm into pain. (Laughter)

Jay: They call him a marketing masochist.

Man 3: But my background; I always preface it, because my background

was totally entertainment my whole life, and then I got into marketing
with the business, and I had to literally learn marketing from zero, from an
entertainer’s point of view, with no college, no business knowledge, so I've
always big on goal-setting and set a lot of goals. So this is my - everything
I’ve ever done in my business is 99% Jay. But my biggest insight was
really the amount of incredible contacts I've made so far. I'd had two really
incredible, kind of unbelievable things that happened; people I met here,
that was really neat, and - so anyhow, bottom line is, the contacts here -
my number one thing I would say is, no matter what problem you have,
there is somebody in this room that can absolutely, positively solve it. So
look for them, because they're here. There's probably four or five people.

Jay: Thank you. Only because I got to go fast, but make it real rich.

Man 4: Gary Smith, Bel-Air Express; 24 hour air express company,

competing with Federal Express, on a very small level. My biggest break
through right now is that the little things in the business yield huge
opportunities.

Jay: Good, goo.

Man 4: I do not need another new customer. And I can just work my 600
client database. That's the biggest breakthrough.

Jay: Thanks.

Woman 1: Eileen Silver, I’m a metabolic weight control specialist. I came

in August, and I remember saying this to you Jay, that my breakthrough
then was that I was stepping over dollars to get to pennies. My
breakthrough now is I’m stepping over dollars to get to pennies. After I left
in August, I went back and I feverishly started writing scripts and doing all
kinds of big projects, and I never implemented a referral system, which
could have instantly made me hundreds of thousands.

Jay: That's right. You've got to be pragmatic. I'm an opportunist; an ethical

one, and a pragmatist. Do the easiest, fastest, highest or easiest yielding
things first. Then you'll have the cash flow to fund the more difficult and
the more complex, so you can get other people to do it for you. Good
work.

Woman 1: You could hire some help.

Jay: Great insight. Thanks. Bob.

Man 5: Hi, Bob Rossman. Horse-racing. My breakthrough was learning

how many times you can go to your customer database. I used to market
to clients and if they didn’t join up, I would market at half-price, and if
they didn't take that, I would offer them a free service, and if they didn't
take that I thought they were dead. And Jay told me that they still had
value, so I went back after the seminar, to the people who hadn't taken
the free offer over the last couple of years, and I made them the first offer
again. Full price. And they took it. (Laughter) I was amazed. And so now,
the basic rule is that you get half each time you market to them, and so
we just keep marketing and marketing and marketing to them.

Jay: Until it stops paying off?

Man 5: No, actually until we lose only half the money.

Jay: That's a great insight because you've got such residual. So what did
you get now that you maybe saw differently? What - did you get
something new so far that you didn't think about?

Man 5: Yes, I’ve actually limited the amount of sales that they can have,
and I've never taken referrals because I was concerned that it would allow
a leak of information, and I'm going to set up a referral system and trial;
letting people have information every day.

Jay: Good, thanks. Thanks a lot.

Man 6: Dan Bantly. I have the Pennsylvania Institute of Taxidermy.

Jay: The Pennsylvania Institute of Taxidermy.

Man 6: That's right. Like Mike, I think this is my 10th - 9th or 10th...
Jay: Did Michelle tell you what she bought me; my daughter? For
Thanksgiving, she bought me a stuffed turkey. We were going to deliver it
here but it's - I swear, a stuffed turkey. (Laughter) We should go out to my
beach house; it's at my beach house. We should bring it out. It's a full
turkey, stuffed. Have you done a lot of stuffed turkeys?

Man 6: Probably not the same way you have, but... (laughter)

Jay: That was a tight dig. Go ahead. Go ahead.

Man 6: When I first - like I said, this is my 9th or 10th one of these I’ve
been through. I think the biggest change is when I first started coming,
my business was really in trouble; I thought my market was gone, I
thought it was pretty - it was kind of the last chance, I guess. And through
all these years of coming and…

Jay Abraham Mastermind Marketing 20

…learning these things, it gave me a change in mind-set. I know that -
right now, I see so much opportunity in everything, and for the past two
years, my classes have all sold out. 2003 is almost all sold out, even
before 2003 starts, so...

Jay: Lesson? What's the lesson?

Man 6: The lesson is if you stick with whatever you're doing and don't
give up on it, there’s a way to make it succeed, but you just have to find a
way. And be patient; sometimes it takes a little while.

Jay: Good, great, thanks. Got to hurry you a little bit, please. I appreciate
you, but go ahead.

Man 7: David Shelling, I’m from Boston. I’m a technology marketing

consultant, specializing in software marketing, and I came to a
programme about 10 years ago, and the thing that impressed me - a lot of
things impressed me, but one was that we can make the rules. And that
allowed me to expand from what I was doing, and I’ve been sort of trying
to preach Jay to anybody who'll listen, for the last ten years. More
recently, one insight was trying to keep the value of what we deliver. Not
let people degrade us and turn us into commodities, and using education
to do that. A lot of the salespeople I work with, they're willing to discount
very quickly. They're not willing to stand up for our value, our own worth,
in order to service the customer. So we're giving in a lot, and being beaten
down, and I think that's a problem that a lot of companies are having, and
by educating the customers and showing them value; showing them the
hidden assets, we can really help them.
Jay: That's great, thanks.

Man 8: Hi, Dave Rego, Indianapolis. How you doing, Jay?

Jay: Good. Say hi to my Mom when you get back.

Man 8: I will. I’m in energy management, and I came to X-Factor in '95,

and...

Jay: That was a good program.

Man 8: Yeah, it was great. And then what really flipped me out was when I
got PEQ about a year ago. And I'm like - it was funny, because Paul just
said, you know, you've got two/three hundred ideas, and that's kind of
what I’ve been swimming with for literally almost a year, and this's just
been great for focus.

Jay: So what's the most important thing you're going to do now; first?

Man 8: Referrals.

Jay: Okay, good.

Man 8: Sales 101.

Jay: That's good. I mean, anybody that doesn’t get that - the reason I had
everybody do it for an hour and a half was that's like - you've just got - if
you take one or two or three or as many of them as possible, you got a
guaranteed increase in your business that's geometric; if you just apply
and systematically sustain it.

Man 9: Hi, I'm Alan Rubenstein, Generation Investors. We put together

short term bridge loans for our investors that are in 12% safely. I was here
1996 with you, Jay. My previous business; dental supplies. And we were
doing $12 million at the time; Jay was kind enough to directly suggest I do
specialized seminars, educational seminars for the doctors and dentists in
our market place. They were very successful. we got hundreds of new
customers. I sold the business three years ago; we were doing $25 million,
and we got paid on that. So... (Applause)

Jay: That’s pretty impressive.

Man 9: Yeah, we appreciate that.

Jay: But Alan, come back, come back, come back. What's the big idea,
though? Give us an idea. Don't walk away. You took something, you made
yourself tens of millions of dollars; you left us like - we're panting.
(Laughter) We're sitting here, it's like Saturday's serial. Who's the persona
that was always on the railroad tracks until the next week?

Man 9: No, I’m just going to say that I’m in a new business now; I’m
starting from zero, and Tom St Lois gave me another great idea, so thank
you Tom; which was...

Jay: But what would you give these people?

Man 9: Well, every idea's a good ideas, which he said, 'Get interviewed by
a radio guy. Now you're an expert.' Both of them are the same line. You
want to be the expert in your marketplace, you want to give back to your
customers. You get new customers and your get credibility with your old
customers.

Jay: Good. And don't forget, write a book. Or have somebody write one for
you , even if it's ghost-written.

Man 10: Dale Maxwell, Dalemaxwell.com and a bunch of other websites

from there. The most important thing that I’ve written down is to
repackage and repackage and repackage the information.

Jay: Could you be a little clearer?

Man 10: Well, I was attempting to be clear with the repackaging of the
repackaging...

Jay: No, I mean, a joke. I get it, I get it. I get it.

Man 10: So, I have books and the books need to be tapes and the tapes
need to be videos and the videos need to be CD's, and...

Jay: If you think about this, and this is not to take any of the thunder away
from most speaker/consultants, but all they really do is they've got a
message. They can give it as a key note for two hours. They can stretch it
as a day-long on sight, for $5,000. They can bring it down for a half an
hour, or they can do it on tape for $2.95, and they sell a thousand of those
and they get four or five people that will engage them to speak, and they
inherently do it, but basically figure every spectrum on the arc, and
address it. More, less, etcetera.

And don’t be afraid to give certain things away. We do. Or charge a fair
price, and you can do a lot of things that- we have lead products like my
money-making secrets that some of you bought for $400; is a lead for a
five to $25,000 seminar. Pretty good lead. But everything is - that's good,
thanks a lot.
Man 10: You're welcome - and I have been giving away. I’ve given cards
to people to download one of my books for free. Come see me. (Laughs)

Jay: It works. Okay. Good.

Man 11: Yes, my name is Pat Solis from Houston. Jay, I wanted to - I’ve
been coming - this is my fourth seminar, and I have to say it's been the
best one of the four, although the third one that I came to was the work
college, which was quite brutal, but what I wanted to share with the group
is, that I’ve used many of the principles that Jay's talked; since '94 I’ve
doubled my business through the principles. But when I came - originally I
came here with the idea that I was going to refresh my skills and teaching
that Jay teaches, but the idea that I shared with the group on the first day;
the one where I joint ventured with the law firm. I've had six people come
up and tell me that really rung their bell. One of whom said that it was
worth the trip for her to figure out how to solve her problem with a very
similar situation.

Jay: That's good.

Man 11: But I just wanted to tell you Jay; it's been great and the program
that I did at the work college; I put it on back burner for seven years. The
weight loss business; and there have been four people at the meeting who
want me to bring it back, so...

Jay: That's good. Okay. Please hurry through; only because I've got to get
John on. Go ahead.

Man 12: Sure. Dan Holbrook. It’s mortgage, real estate and broadcasting,
I guess. I've been going to your events for 10 years, actually, and this
event was good because it helped remind me what I knew but didn’t
implement for eight years, and I was feeling kind of bad about that. But
one of the things that I was reminded about was the strategy of pre-
eminence, and I’ve done that actually; very, very well. I wanted to change
the way real estate services were delivered, so I started broadcasting
radio one day a week, and now it's 3 hours a day, five days a week,
27,000 people in an hour delivering in the San Diego market. It's made a
significant, dramatic impact on people’s lives, and it - trying to figure out,
'Okay, now how do I bring it back in dollars and cents?' And I think the
connectivity of bringing all these pieces together; it's not just one
strategy. It's a whole series of them, and there’s a financial, spiritual and
emotional benefit that’s driven from that.

Jay: Thanks.
Man 13: Hi Jay. Martin Wales, Customercatcher.com. We grow your
business by bringing you clients until you beg us to stop. (Laughter) When
I first met Jay, I was working at a company, and since that time, I
quadrupled my income, but what I’m up here to say is, we talk about
public relations. One of the first things you taught me was help people get
what they want to get what you want. And I use that in public relations,
and now I get about $1 million a year in free public relations, which is
really my advertising revenue. And sort of the corollary of that is, I make
as much money marketing my business as I do actually selling my
consulting services, so profit based marketing; where you actually make
as much money doing the marketing as a speaker selling information
products, as you do selling your consulting.

Jay: That's great. I like that. Great. Thanks. Spar?

Spar: Jay’s the first person who thinks it's normal to sell a video for $500,
which he did to me seven years ago, and I thought, $19.95 was a lot to
spend prior to that. (laughter) And this is my third event, it took me seven
years to think that spending more than probably $1000 on a seminar was
high, and this has paid off infinite amounts; hundreds of thousands of
dollars. The biggest thing is, all of us are smarter than any one of us, and
the synergy that happens in a room like this, meeting all the people, and
the ideas that they have brought me, not only in this seminar but other
seminars; have been really good. The biggest one is also the simplest one.
I tend to get a little distracted, and so for Mark Victor Hansen; every time
I reach for my credit card, which seems to happen a lot; I put this card,
which he was suggesting; just write your three top goals on a card. It was
so simple, and for somebody that's as distractible as me; every time I paid
for something now I’m going to look at this card with my goals on it.

Jay: That's good. Thanks Spar. How many for you? Four, five, six, seven?
Tell me; I don’t remember.

Woman 2: This is seven.

Jay: Wow.

Woman 2: And I should be a billionaire by now, right Jay? When I came to

the first one in 1995, Jay changed my life, because he said, 'Revere your
business.' And that was kind of a shocker to me, because I came out of
hospital administration, dealing with blood and guts, and I thought selling
stuff was trivial. And Jay said revere your business. And it just changed my
entire attitude about what I was doing. And it's never really been so much
about money; I am happier than I’ve ever been before. I have just a ball
with the business; but I decided at this seminar that I’d really like to get to
about $5 million - I’m a little over a million now; and Chet Holmes taught
us how, so thank you.

Jay: That’s great. Alright. David.

Man 15: Hi Jay.

Jay: How are you?

Man 15: Wonderful, thank you. My name is David Carrington, I'm

president of RacingUSA.com, America’s online headquarters for Nascar
merchandise. This is my - about 8th time, I guess.

Jay: When he travelled to the UK - David's a trooper; he's a cool man.

Man 15: Well, it was interesting to go to the UK, because we were

investigating opening a European office, and what better way to decide if
there's a market for you than to go meet with 650 people in Europe, and
after that event we decided that wasn’t the right decision for us. I'm going
to say one thing, and I'll try to be real brief. In the last session I went to
four years ago, I just recovered from cancer, and was trying to decide
what I wanted to do with the business; and Muriel got up, made one
statement out of three days and said, 'It took me six years to do my first
thousand dollar day in my retail store, and I did my first thousand dollar
day on the internet, in six weeks.'

I turned to my son, said, 'We're going to open an internet site.' (Laughter)

We had four stores at the time. The seminar I think was in June; it was in
that summer. By August we opened our site. We had our first sale on
September the 11th, 1998. By Christmas, our internet was our largest
store. By June it was larger than stores one and two. By Christmas it was
larger than all four stores. By the next January, we started leasing out our
stores. (Laughter) We were in the computer business; we sold the
computer business, and now we're primarily and internet retailer.

The one thing I'd like to give to this group is the most powerful concept we
got out of all this is educate your customers why it's in their best interests
to do business with you, and not your competition. Several years ago - or
in the computer business, we found ourselves competing on the nebulous
things of quality, service and price. We believed we were quality and
service; we were being competed on with price. And so we felt like we had
to change the rules. We either had to compete on price, or change the
level of competition so that our competitors had to compete with us.

And so what we developed was a 16 step detailed selling system that

worked with the prospect in order to set the agenda; the decision criteria,
the goals and objectives; so then when the competitors came in, they
would have to compete on our terms instead of us competing on their
terms. And that made a tremendous difference in our business, and as I
said last October, we sold it; so now we're primarily an internet-based
business.

Jay: Thanks David. Okay. (Applause)

Audience Member: What's the website?

Man 15: RacingUSA.com

Jay: Okay. I didn't mean to divert, but Mac felt that you should know; you
shouldn't feel that people came back because they weren't successful. A
lot of people go back and they'll make 100 grand or they'll make a half a
million, or they'll get a 30% and they'll think that's all there is, because
they don't understand process training. The ones that get it, they come
back over and over again. I'm not trying to sell you, because I don't really
want to do that many. This is the first one of these I've done in seven
years. Just get a lot out of it- that stated, you're in for a treat.

John [unclear 7:06]. Fabulous man; brilliant man. Remarkable man,

interesting man. Did a billion dollars in real estate transactions and got
bored with it. Spent three or four million dollars of his own money studying
all kinds of elements that distinguish superior performers; sort of a
modern day 'Think and grow rich.' Was raised in Chicago, foster homes - I
got his stuff, I don't need to look at this. Basically, he decided he wanted
to study and understand every key element that distinguished super
achievers form everyone else, at a very, very granular level; and he shook
it all up and he became one of the pre-eminent effectiveness coaches in
the field. He handles a lot of Silicon Valley CEO's, he handles CEO's around
the country. Cool man; he's got some really powerful distinctions. He could
go for probably six, seven days; and we're actually going to do a six day
or five day program with him, but he's tried to distil down the core
essence of what he has learned about number one; strategy. Number two;
effectiveness. Number three; ultra-productivity, and really, having control
of your business so it doesn't control you; and he was named the speaker
of the year as far as guest lecturers at Stanford. He's a really cool guy;
he’s a good friend of ours, and he's got very, very original work that you
should take a lot of notes from. John, come on up. Sorry we got a little late
start. (Applause, and music plays)

John: Albert; nice job. Love the tunes. Alright everybody stand up. Come
on, get on up. Stand up, stretch it out, this is like - I know - you guys are
amazing. Amazing. I mean, I went through MBA school at Duke. I got three
hours a sleep a night for a year; blood pressure shot up to like - the doctor
came to my house; he was so worried about the test results. He said,
'Buddy, you can't keep doing this.' So this pace is even worse. (Laughter)
It's unbelievable. But this is a preoccupation with providing value. Up top,
come on. Reach for the sky. Like that.

Give the person next to you a high five; double; boom. (Audience does)
Give the person across from you a boom. Alright. Now sit your bones
down. Getting rowdy, out of control. Out of control. Story of my life. Hey,
it’s the holiday season; has anybody noticed? (Laughter) Well into
December now. And Christmas lights out and about, kind of cool. And -
gosh, I don't know but it's a special time of year, and here we are sort of
cooped up in here, and we're like focused like a laser on [unclear 2:32].
Things like that. That's okay. Especially if we believe what Arm and
Hammer said, which is what I think is some of the most profound
discussion I’ve ever heard, and when he said that the highest calling a
man can have is to become a philanthropist. How cool would that be; to
be like Santa Claus for your family, and - you know. But a lot of what
you're learning here genuinely can - and it has; made that possible for a
whole lot of people at various levels.

So because it's the holiday season, I’m going to start with a prayer. It's a
no-denominational prayer. So for those of you who think about the sky,
think about the sky. For those of - I completely respect and recognize that
there are; in a group this large; various people with various views. But in
light of the season - I just thought, 'Come on guys, it's Sunday; yesterday
was Saturday, the Jewish Sabbath, and so we're going to kick it off with a
little prayer, okay?

Here we go. This is called the Unity Prayer; and a very cool guy gave this
to me. "The light of God surrounds us, the love of God enfolds us. The
power of God protects us. The presence of God watches over us. Wherever
we are, God is, and all is well." Okay, so thanks for letting me get that out
of my - it's not like I’m like a freak or anything, in this area. (Laughter) Not
that that's bad, but it sort of settles me down a little bit.

So, I want to ask a few things before we get cooking here. I'd like you to
stand up; I'm going to do a quick survey. I always like doing market
surveys; I need to understand who I’m talking with so I can try to make
comments relevant. How many of you work for organizations that have
less than 10 people in them? Please stand. Don't be bashful; I really need
to know. These lights are like - okay, good. Please sit down. That's like -
what do you think? 65, 70%? Very good. How many work for organizations
with less than 50? Okay, good chunk. Good chunk. How many above 50?
Alright, very good. About, maybe 12%; who knows? And the last group
looked like it was about 30%, 25%. Very good.

First thing i want you to do. Think about this. I want you to make a list of
actions that you're going to take as a result of what you hear tonight, with
me, and over the course of this event. I'm moving into execution. I'm a
transition point, along with Paul. You know Jay - the amount of time that
Rick Duress and Jay and Carl Turner, talk about superstars, whoa - Terry
and Michelle, and Debbie and Tanya - I’m going to leave them all out. Let
me just say one quick one on this. When you see these people who are
like - walking dead around here, go up to them and give them a high five,
okay? Give them a high five or something, because you cannot imagine - I
know some of you can't - how much work it takes to put something like
this on. It’s remarkable, and they have done a phenomenal job. (Applause)
Don't you think? Yeah. Yeah. Yeah. Yeah.

That's for you; all you guys. Rick, tell those ladies out there, will you? Tell
those ladies they got to standing O. Guys in the back, sound. Visual
maniacs, etc.; please tell them all. (Laughter)

Take - keep a separate list; separate notepad, whatever it is, of the actions
you will take based on the stuff that you hear here. The stuff that's most
relevant to you. The second thing I want you to do is set up an
appointment with yourself. Treat it as if - this is an appointment with the
most important person in your life. And you should set up at least one, but
all I’m asking for is one, because most often it's like taking the first step. I
was down in the gym earlier today during lunch, and there was a guy
down there, and he didn't look real happy. He was sitting there on the
bench, and he was like - I could just tell he had that look on his face. 'Why
am I here?' I said, 'How you doing, bud? Congratulations for being here
today.' And he said, 'Yeah. Okay.' (Laughter) I said, 'I have the same
trouble sometimes.' It's like one arm is pulling on the car, and the wheel
going - get - 'You got to take this exit, this exit; this is the exit ramp to the
gym. You got to go.' And the other one's going, 'No, I want to go home,
and sit on the couch.' Or whatever.

So I get into this conflict and - anyway, this guy was having the same kind
of deal going on and - I just said, 'Think about this. I play a little game with
myself and I say, "If I just show up for five minutes, if I just show up for
five minutes, and I leave." And I leave. I'm going to pat myself on the
back. If I just put the feet on the ground, in the gym, or on the bike, or
whatever it is. Five minutes, if I’m on the bike five minutes, I'm like high-
fiving in the mirror, okay?' (laughter) And I just - and then I say, 'And the
other thing I try to do is I focus on not the process, -' (Groans) or whatever
it is (audio missing)

…how you feel when you get out of the gym. It’s sort of - the glow;
whatever; just focus on that feeling. 'I’m going to feel this - it's coming
any second. It's going to be there any second.' (Laughter) So those two
things - and the guy just said - he got up off the bench and he shook my
hand, and he said, 'Are you a doctor?' (laughter) And I said, 'No. Just
consider me an angel in your life.' (Laughter) So I just walked away, and
he was like - (Laughter) He wasn’t sure, because I didn't shake his hand or
anything, because then he'd know I was human, but anyway.

So you might want to think about the same kind of thing, guys. You know,
in terms of getting started. A lot of the tricks - the trick is to execute. And
whether we know it or not, whether we like it or not, we're caught up in a
game of execution. The winners are going to be the ones who execute.
John Chambers from Cisco Systems, to this day, says execution is
everything. Cisco - do you know; what a story, right? First company in the
history of the world to reach a market cap of a hundred billion dollars,
and they did it in 12 years, only to be worth than G.E and Microsoft two
years later; with a market cap of over 500 billion. At the ripe old age of 14.

Well, needless to say, they’ve gone through a few transitions, as has

everyone else. But I remind us - I just want to remind you of one thing.
One thing we can learn from September 11th, is how fragile this whole
deal is. And I’m not going to be a downer here, but I just wanted to remind
you that we're going to be like unbelievably lucky; phenomenally lucky, if
we don’t have another one of those or potentially worse, interruptions.
Whatever your political beliefs are, but they - based on what I'm reading,
and what I know; boy, the next few years look like it's going to be
something else. So what I’m saying is, if there was ever a time to sort of
button up, lace them up, leave them up, lace them up, tight - poof; and
get ready; I think this is the time. I think this is the time to turn the corner;
to do things a different way. To focus on relationships in a different way;
whether it's the Dream 100 concept of Chet's, which is a home run waiting
to happen, or what Jay said today about transforming clients into friends.

Whatever it is, earning trust in a different way; separating yourself from

the competition, cultivating a great core story, a USP, mission statement;
whatever it is. I think this is the time you got to do it. But the other thing
we have got to do, and the single most important thing we have to do is
figure out a way - a plan to execute on all of this. So the second thing - as
I mentioned; set up an appointment with yourself. It should be at least a
three hour block of time, for when you go home; to basically go back
through your notes, and if you choose to, the hand out materials; which
are to say the least, voluminous. (Laughter).

Okay? I mean, come on? I mean, the planes. I'm concerned about the LAX
plane. (Laughter) You got to be kidding me. Jay? But it's phenomenal stuff.
So - by the way, anything I'm going to talk about today is contained in the
manual that you got today, and it's all explained in a lot better way than I
could possibly ever do it up here. With my stomach churning, and my
voice going crazy and - this is a nerve-wracking experience; let me tell
you something; being up here in front of so many people. This is - alright,
so I ;m not going to focus on that again. So I got to get off that.
(Laughter)Shouldn't have done that. Shouldn't have done that.

So, everything I 'm going to talk about today is contained in a white paper,
in that three ring binder. Get it. It makes sense. It's like a 40 page deal,
and it's entitled, 'How to Create the Ultimate Business Leverage,' and
contains a lot of very specific information as to what we're going to talk
about.

Alright, the third thing I want you to do, and this is the last thing I'm going
to request you to do today, is team up with someone on an on-going
basis, to follow this up. There were some studies at MIT and the University
of Michigan, School of Psychology, that - Educational Psychology - that
had to do with retention. Co-opted retention, meaning retention that was
made better because it was shared. Because there was accountability
created, because there was a sense of team work created - here’s how
you do it. What I would do is I would find at least one other person here - it
doesn’t matter where they live or where you live, because you can do this
by phone. And you set up a regular schedule, on the same day every
week, and you just spend 45 minutes, 30 minutes; an hour. No more than
that every week. And what you guys do, the first meeting is all about,
'Let's set up an agenda for what we're - how we're going to attack this
material. What are we going to go through first? Let's talk about your
business, let's talk about my business; let's figure out what's most
important. Marry the two and come up with an agenda.'

The agenda might have 30 sessions. Fifty sessions. Doesn't matter,

whatever the number; but make that the first session. It might even take
you two to get that down. Email it to one another, fax it; whatever you
want to do, and get to work. Alright, and get to work, and take yourselves
through it. And ask one another, 'How have you done? What have you
done? How have you done it? With whom have you done it with? What's
working? What's not working? What are your goals? You said you were
going to do this last call, why aren't you there?'
And do not ever hang up the call without asking one questions. 'What's
our next step?' I don't think you should ever leave a meeting - now I’m
talking execution here, okay? I'm going to provide you guys with seven
tools out of 71, in a program that Jay and I - he mentioned the program
that we're going to do. It's called Strategic Execution; it's not a
commercial for it, it's just a matter of fact. Seven out of 71 tools. But
these tools have a lot to do with execution. And so Jay said - 'I really want
- at this time in the program, I think they really would need something
that has to do with how to overcome the deluge.' We're [unclear 7:20]
with information, but starving for knowledge. And so I said, 'Fine, Jay, let
me see what I can do.' And here I am. So - but go ahead and team up with
someone and ask that question.

And you should also remember to ask that questions whenever you’re
making a presentation. Some people use the word pitch. It's still sort of
gags me a little bit, but whatever. A meeting, a phone call, a staff
meeting, a prospecting meeting, a brainstorming session, whatever it is.
Ask yourself what's my next step? What's your next step? Get to clarity,
move things along, create accountability and a reason to get back in
touch with someone. So that's a discipline I learned in real estate from a
master, who thank goodness, I got hooked up with him, and the rest is
history.

So, now what we're going to do today is talk about these seven quick
things. One thing is the web of entanglement. This is the number - what I
feel is - the number one problem that everybody in this room, pretty
much, is faced with today. This is a major obstacle to progress, to success;
and I'll try and talk about it, and I’m going to go briefly here, okay? And
then we're going to get into what I call the executive survival kit. This is
what you've got to have in order to survive, much less prosper. And these
are the things, these are the tools that have, I believe, the most to do with
execution, out of anything I have ever read, seen, what have you that I
have seen in my lifetime and Jay mentioned that we have a research end
of us - what we've been [unclear 00:10]; we've funded it and - but we've
had over 25 researchers, many of whom were PhD candidates from
Stanford and Cal; going through topical areas that have to do with two
things: high achieving individuals and teams; anthropology, psychology,
ed psych, sports medicine, comparative theology, philosophy, Asian
studies, historical achievement patterns; whatever, and provide to me the
best stuff that has the most practical impact for people today. We've been
doing that for 10 years. It's over 10 years.

So we have almost a gig, if you can believe this, of Word files, that are
synthesized, organized - just by study; by topic; on what individuals and
people can do to improve their lives, hence the stuff I do in the coaching
area; and what teams or organizations can do, whether they're two person
organizations, or 20,000 person organizations. So what I’m going to give
to you is based on that, essentially. Based on this research. And the
bottom line is it works. So here's what we're going to do. Let's go to the
next one.

We know we live in crazy times. It's the age of uncertainty, according to

the business media. A deficit sworn by 400 billion; yes, it does change
quickly, and many businesses are struggling to stay alive, and if you think
it's bad now, guys - I know, God bless - I hope we can do real well here,
but I believe we're heading into the most volatile period; economic period
in the history of our country, over the next 15 years. The seven
economists that I follow don't necessarily share that, but the majority of
them do, and that's why I think it's just - I’m imploring you to get more
buttoned up about how you do things.

The number of multi-millionaires in the Silicon Valley went up by ten-fold

in the 1990's, and now it's come all the way back to 5% of them are
intact. 95% lost it all. There are houses on the market, there were people
who exercised their options, and then doubled down. Bought more stock,
wrote it all the way down only to have Uncle Sam knock on their door and
say, 'Where's my cash? And we only accept cash.' And they're selling their
homes and moving into apartments, and these are very bright, educated
people, and it's really something else.

So, September 11th; corporate greed and institutional distrust; are forcing
people to do some serious should searching about what really matters and
where to go from here. And as I mentioned, how delicate and fragile is our
economy. So there's a growing conflict between our personal and
professional lives. And small businesses? Boy, we are so dependent on
this pendulum effect that I - I call it the drift effect, and here's what
generally happens. This is probably the biggest single organisational,
strategic problem that small companies never seem to be able to get out
of. And as a result, they never grow to the next level. And they go from
sales to fulfilment.

It's sort of like a boat, moving in the water. And the captain gets on the
top of the boat and says, 'You see that island over there? That's where
we're heading. Boy, it’s palm trees and coconuts, guys. And lots of suntan
lotion. And brewskis for those interested.' (Laughter) Yahoo. Guy from
Texas down here. Nah, I’m kidding. So he yells, 'Everybody over to the
starboard side of the boat.' Everybody floats over. Everybody could be
three people, okay? Whatever it is. And they're starting - 'We've got to get
deals, we got to get the pipeline filled; we've got to get going, come on
you guys, we've got to generate some cash flow or we're in trouble here.
What are we doing?' Bam. And all the focus is there.

And then pretty so the pipeline gets full and somebody wakes up and
goes, 'How are we going to make all this stuff happen? We may be in
jeopardy of over promising and under delivering. This could be a problem,'
Captain runs back up the stairs and goes, 'Everybody over to port side.'
Fulfilment. (Makes noise) Everybody scampers over to the port side of the
boat, and they start thinking about fulfilment. This continues to repeat
itself; the syndrome; constantly. For years. And what happens is the boat
moves like this is the water. (Makes noise) And it’s got a power source but
it’s not exactly flowing super straight towards that beautiful island that
everybody was envisioning in the beginning. So this is a problem. And it’s
a major problem with organizations.

So what do you do? One things is you - one recommendation is start

thinking about three things. People, processes and technology. There's an
enormous amount of leverage, as we have seen, with the email success
stories and so forth, here. Wow. Carl and Jay will talk about that tomorrow;
what they did for this event. I can't wait to hear that. That was such an
amazing example of marketing by email, but - so now I talk about
something called the web of entanglements, and it's like - I’m not talking
about the internet here, guys.

I'm talking about a spider web, and my wife hates spiders. If she - I have
to - if there's a spider in the house - are there any other guys like this?
'Honey.' Does anybody - well, that's what I get all the - if we have a spider
in the house, I have to get it. You too? Yeah. So I'm the hero, and she goes,
'Thank you.' Gives me that look; every time - and it's like, I'm getting sick
of killing a living thing. I'm sorry, but it's starting to bug me a little bit.
(Laughter) I don't know if I’m getting soft, being in Northern California too
long, or what the deal is - I don't know what's going on, but it is starting to
bug me a little bit, and I told her about that. Silly me. We're dealing with
that issue. So - well we're talking. Exterminator - I don't know. So I don’t
have to know about it. Do it when I'm not around - this is weird. I'm
getting neurotic.

So the web of entanglement is a very real thing. I think this is public

enemy number one, and I think this is what we're all going through, and
it's complete major issue, problem, conflict; between our home, our
personal and our professional lives, and it is crazy. And it is based on five
things. And the five things, in a nutshell, are - we got - I talk about harder,
faster, longer. Where does that come from? In this country, most of us
have grown up in what we call a Judeo-Christian work ethic. I got the laser
and everything - thanks Chet.

So what we learned is, you got a problem? You got to work harder. You got
an issue? Got to work faster. You got a competitor? You got to work longer.
Harder, faster, longer. That's the answer to getting ahead in America.
Well, that works for robots, but it doesn’t quite work as well for human
beings, especially human beings where 78% of the active businesses are
service businesses, with a tremendous reliance on knowledge. On
synthesis. On information. Might have worked a little better in the
machine world, but not now. So what we've sort of grown up with, is
schools and so forth is a harder, faster, longer mentality, and I am saying
that it's a death trap.

The second problem is experience; accumulated experience. It creates a

past based sort of feeling. Every transaction we've made after we get out
of school or whatever; ever transaction - there's hundreds and thousands
by the time you get to my age - carries with it responsibilities. You had to
do a contract, you had to do emails, you had to do letters, you had to do
presentations, meetings, meetings and meetings, and God knows what.
But a lot of these - this is the curse of experience. The problem with
experience is that it winds up being loaded up on our backs, and we start
carrying it forward in life, and it really becomes a burden. Because we
become past based in our focus, in our conscious minds.

We become past based; that’s a problem. It's a scourge. So, the third
problem is expectations. Everybody in America's got super high
expectations. All you got to do is listen to the 1.3 million messages we
absorb a year from the media, and if you're not driving a Mercedes or a
BMW, or living in the right neighbourhood, and if you don't have 14
vacations a year, there's something wrong with you. God. And, to boot, if
you're not in the 18-34 year bracket; which is where 90% of the media and
advertising is focused on, boy, you’re really a loser. (Laughter) You know,
because you're like, dead, already. Just might as well kick it now. That'll
change, let me tell you something. The demographics of this country are
changing so that'll change. Cha-ching, cha-ching; we’ll change that.

So the next one is habits. We got big problems with our habits. Habit
patterns. And habits are accumulated behavioural patterns that cannot be
changed except one at a time. And the law of substitution has to rule
here, and if it doesn’t you’re dead meat. In other words, the only way to
break a habit is take one at a time. Substitute a favourable behaviour for
that negative behaviour, and focus on short term benefits, for breaking
the habit. Or for minimizing the habit, or whatever it is. So I say changing
the habit - we got a lot of bad habits when it comes to time management.
When it comes to business practice; focusing. Relationships, phone
mannerisms. Whatever. And it's hurting us; hurting our business.

The fifth problem is how we conceive of time. Time stacking. We're all
stacking time. We want to do 14 things at once. Want to talk on the
phone, sip our Starbuck's coffee, put some input into the computer, read
emails, yell an order, throw a paper airplane - I don't - but driving down
the freeway, you see these crazy - 75 miles per hour, got the computer
terminal by the side, tapping away, and the headset on. Man, they look
like John Glen, 30 years ago. (Laughter) And they're all like caffeined up to
the max, and - saw a guy the other day. Couple of kids in the backseat,
and they were going like this, so you know there's tunes playing in the car
on top of it. Guys' on the phone - hey, time stacking. It's just - well, that’s
not a good thing. For achievement, for execution; that's not a good thing.
We actually need to do something called time chunking. We got to get
back to that. And I'll explain that in a little bit.

So next is a beautiful quote by Einstein, which is, 'The current problems

we face cannot be solved at the same level of thinking with which they
were created.' The current problems we face cannot be solved at the
same level of thinking with which they were created. Now, I could talk
about so many examples here, and I feel a little bit 'Ugh,' you know,
because I - but I can't - but I know you guys can think of a lot of wonderful
examples on your own, and I'll try and point out - so - go ahead. Yeah.

So now we got to fight the fear of change. If it wasn't bad enough, now we
got change. And change - every time our equilibrium gets challenged, we
try to what? Natural - it's natural human instinct. We try to get back an
equilibrium. Whether we're physically, mentally, spiritually, emotionally
out of balance, we try what we can to get back to short term equilibrium,
and it doesn’t really work that much because of fear of perfection, and
some low self-image stubbornness and learned victimization; and the
whole world, as we know, hates change.

So in our society the focus is also on improving weaknesses. So tool

number one is Strengths theory. Alright guys, focus in now, alright,
because we're going to move here. But it's going to be some pretty
awesome - I hope it'll be some pretty awesome stuff. How many of you
know anything about Strengths theory? Nice and high. Okay. not too
many, just a few. Alright, let me just net it out.

We spend an entire lifetime working on our weaknesses. Most of us. And

all we get are a lot of really strong weaknesses. (Laughter) You can raise
yourself all the way to mediocrity, by focusing on your weaknesses. 'I'm
going to make sure - I hate math, but I ;m going to be good at it.' 'I hate
computes but I’m going to master them.' 'I hate speaking in public, but
I’m going to be great at it.' Hmm, no you’re not. (Laughter) There’s a few
little things, like personality and temperament, learning modalities, neural
biology recordation; which means that your brain is actually formed in a
certain way; genes and so forth, and you have natural predilections to
have strengths in some areas and some weaknesses in others. So, what
you got to do is stay away from the weaknesses.

Well, you can’t stay away from the weaknesses, because that’s part of my
job. Well, you can delegate the weaknesses. You can begin to figure out
what kind of strategic alliances you need to make with people. We can
trade off those weaknesses. How about I'll take something that you're
horrible at that I happen to be great at, and you do the same for me? We
do that all the time in organizations, and it's very powerful. So, for those
of us who are all focused on the academic problem. Entrepreneurs have a
lot of impetuousness - not all of them, but a lot of them do. So they have a
lot of impatience with school, and I know that we have - there’s such a
hang-up with education.

'I can only go so far; I didn’t get an MBA from Duke, or Harvard, or a
PhD...' Well, these numbers are real okay? Over 50% - from US News and
World Report - over 50% of all CEO's and Fortune 500 companies had C or
C minus averages in college. 65% of all US Senators come from the
bottom half of their school classes. 75% of United States Presidents were
in the lower half club in school. Over 50% of millionaire entrepreneurs
never finish college. And the average millionaire entrepreneur has gone
banko 3.75 times. How's that?

No, it’s about practical application. That's what I think. I think theory is
great, but practical application is really where it's at. Otherwise, every
professor we've ever seen would be a very wealthy person. (Laughter) But
that’s not the case. I say that with great respect, because I’m a guest
lecturer at Stanford and US Berkeley, and I love those guys dearly, but
that’s the way it goes.

Now, let's talk about failure. You know, the entrepreneur's ability to handle
failure. It's a real deal. Bob [unclear 8:43], great maniac that is he. Great
athletes frequently hold double records for both accomplishments and
failures. Babe Ruth, right? Major League record for strike outs and home
runs. Sammy Sosa might break that. Barry Gonzo might break that based
on his - in baseball, anyway, I won't go through all the - but entrepreneurs
have an ability to bounce back. They have a tolerance; a higher tolerance
for failure, than what we call bureaucrats, which I’ll get into in a second.
Go. The entrepreneur versus employee. I talk about the entrepreneur
versus the employee mind-set.

Employees make lousy entrepreneurs, and entrepreneurs make lousy

employees. Generally speaking. For lots of reasons, and this has to do
with Strengths Theory and so forth and ties right into it, and you just need
to remember that and stop trying to force it.

It's sort of like the firm that typically wants to take the highest achieving
sales person and make them the manager, because he knows everything,
or she knows everything about the business and is totally respected; and
so forth and so on. Disaster. And it happens over and over and over again.
So remember, employees tend to make lousy entrepreneurs, and
entrepreneurs tend to make lousy employees. Now - so that's the first
tool. Strengths Theory. Now why - God, John, I got it. What do I do with this
now? What?

We're going to start to apply it. The focus chart. We're going to talk about
a tool that increases clarity on the [unclear 10:24] with the [unclear] of
responsibility. You know what (audio missing)

…think the starting point, there are some things that you need to do,
individually, and there are some things that you need to do from a
business perspective. And if you try to just focus on the business, and you
miss the stuff that you should do as an individual, to strengthen yourself
and increase your self-awareness and do some other things; make
yourself better, it won’t; work. And the same is true if you're thinking too
much about yourself individually. Your strengths, your weaknesses, your
limitations, you problems, what hasn't worked in the past, or whatever.

So you got to focus a little bit on both things. So I think the way to put
those two things together is in a tool that I call the focus chart. Here's a
sample. Now. again, this is all explained in the white paper. I hope that the
first assign - now, you know what? Is Jay here? Oh, too bad. Because if he
was I'd ask him for permission to give you guys some homework. Okay,
because I’m going to tell you something. I think - let me try and explain
this, and I don't want to assume anything, but I hope that you might find
that some of this could be unbelievably vitally important to you getting off
the runway when you get back with these concepts.

Jay, I just had a quick question. Would it be okay if I gave them a little bit
of homework?

Jay: Is it for tonight, or for [unclear 1:33], or for...

John: no, for tonight.

Jay: Let's see. Do we have any other homework assignment. Yes, go
ahead.

John: Oh good. (Laughter)

Jay: But not more than four hours, John.

John: Oh, no, no, no. (Laughter) I'm telling you , if you guys do this, I’m
going to get a lot of hugs tomorrow. Alright. So - and high fives, sorry; for
those who are a little - (laughter). I understand, there's - gosh, we're all
different, but it’s cool. Okay. This takes the normal professional person 20
minutes to do a first draft of. 20 minutes. This is called a focus chart. I
would like you to take out a piece of paper, draw a circle in the middle of
the piece of paper. I would like you to show some blocks on the sides. I
want to show you some blocks on the sides. Now, here's what it contains.

Remember I said you got to do - there's a few things you've got to do, and
if somebody said, 'Nah, you don't have to do that,' they're full of it. We
have to work on us. And then we have to work on the business. And I think
to marry those two things, the very first step in executing strategically is
to get really clear on your what's and your how's. The circle answers your
three most important priorities at work. Now, don't worry about is it 40%,
20%, 80%, in one area or another. My three areas are consulting, product
and service development, and speaking; because I got some books
coming out next year and whether I like it or not, I guess I’m going to have
to do all this stuff more. (Laughter).

Anyway, so - but anyway, those are my three. Everybody's got three. From
United States Senators; who have a very complicated life, to Chancellors
of universities, to lone attorneys or accountants; widget manufacturers;
whatever it is. I just want you to think for a moment; reflect.

What are the three bottom line responsibilities that are the most
important things - if you were describing what you do to someone - for
someone, these are the three things that I do mostly. I may not be 100%,
but it'll be over 80% in those three areas. Here’s an example on the board;
there’s one I think in the white paper. Marketing, strategy and execution.
How about sales and marketing? Sales; don't forget sales. For the amount
of small companies that were here; because we're chief, cook and bottle
washers, right? We got to sell. So sales and marketing is probably going to
be one, and I would combine them. Then there could be strategic
relationships. The Dream 100 of Chet's, which I think is phenomenal.

Originating and growing key relationships. And then whatever your third
one is. Presentations - whatever it is. Producing; production. Widget
manufacturing.
So the circle, right here, for anybody who can actually see that red dot;
these are the what's. And the boxes are the how's. So this is what you do,
this is how you do it. The boxes should correspond to each one of the
three areas within the circle. So when you say sales and marketing, I want
to know, does that mean emails? Yes. Presentations? Yes. Conferences to
sharpen your skills? Yes. Does it mean meetings, preparation? You bet.
Everything that - everything that goes into - anything that takes up your
time should be on that list. Okay.

So now, when you have a customer or a prospect, and you're trying to

separate yourself from the competition, one of your vital tools will be a
reproduction of this focus chart. When you show this to a prospect or a
client, what you’re saying is, 'This is what I do for you. This is what I do
and how I do it.' And if you take just five minutes and take them through
it, they're going to be blown away. Because it's clarity. Clarity is power.
Mushy thinking is dangerous. Mushy thinking puts you on the endangered
species list. Clarity is everything.

Now, if you got to a holiday party, and you run into someone, and you're
talking about success. So, 'How you doing, Bob?' Bob's got a margarita or
whatever. 'Bob, how you doing?' 'Good.' 'What's going on Bob?' 'Well, you
know, another year, going by. Things happening. Family. Tape on the floor.'
'Oh Bob, that's all fascinating, but how's your life? Bob , what's your
definition of success?' 'Success? Well, I don't know. Freedom? Money?
Laughter?' 'Bob, it's been so good talking to you, but I got to go to the
restroom.' (Laughter)

What I'm saying is, I'm not trying to be rude, but mushy thinking is a
repellent. And so if we can't sharpen up, what we say and how we say it to
people, we're dead meat. You know, somebody asked me, 'Okay, Mr Smart
Guy,' at one of these conferences; 'What's your definition of success?' And
I said, 'Success is a progressive process to achieve and maintain peace of
mind through balance; continual improvement and the realization of
worthwhile goals.' (Laughter and applause)

No, thank you , thank you. Not trying to be a smart guy here. (Laughter)
But you know, this is a real important thing to think through, what is
success? And that's 28 words, if I remember. And you got to do it under 30
words, for all kinds of reasons I won’t get into today, but - so that's the
focus chart. Do one tonight, guys. And you will see - it's a hiring tool; it
replaces job descriptions, it changes as your job changes, it will keep you
straight, it will add phenomenal productivity to what you're all about. Next
one.
We're going to skip a few here. Keep going. Oops, go back one. Thank you.
Close your eyes. This is tool number three. Quick one. Close your eyes,
close your eyes. You're on a desert island. Now I'm going to make it more
dramatic. You're on that plane with Tom Hanks, that went down in the
drink. (Makes noise) Bam! You find yourself, luckily, on a raft. It's cold, you
wind up on the beach at sunrise. The only thing that works is your cell
phone. But the problem is, due to a whole lot of reasons, your cell phone
doesn’t work for more than five minutes every week. Now, you call in, and
they know you're down, but they tell you,' It's going to take a little while.'
'How long before I’m rescued?' 'Few weeks.' 'Few weeks!' 'Yeah.' 'Okay.'
So, in the meantime - you're can open your eyes; now you're there.

Now, here's what you got to figure out. How do you run your business
when you got five minutes a week to call in? Well - I’m really cutting it
down here - trying to get down to the beef, but here's what I’m trying to
drive at. One of the most powerful things you can do to execute properly,
is figure out what kind of results you really need. What kind of results you
really need. Five of them. Pick five. What are the top five indicators of
success that you have for your business? It could be number of contacts
made. Number of presentations made, number of widgets sold. A CEO
would have like, revenues, accounts receivable, revenues per employee, if
it was more sophisticated; the CFO might have cash flow or fixed or
variable expenses. Stock price, number of employees. Whatever it is. A VP
of sales marketing might have the number of new clients. Number of
products. How many in inventory, if inventory's an issue for you.

Number of hits on the website. Whatever it is. So you need to use these as
performance measurements. And so the point is, if you use the desert
island top five, along with the focus chart, you're getting somewhere.
You're starting to really get somewhere. Because why do you want the top
five? It will tell you what you need to be focused on every day. Every
week. And it will tell anyone who deals with you, or who supports you, the
same thing. That should be posted. It should be up, you should have
meetings about it, even if they’re with yourself, and you should review
this - your progress on these top five indicators.

It’s sort of like a pilot who's driving and he doesn’t look at the fuel gauge.
He doesn’t look at his altitude. He doesn't look at his pitch. I don't know if
I want to be on that plane. So it only makes sense. And so there's like 158
things you can choose from. Financial indicators, operational indicators,
strategic indicators. Hey, gimme the bottom line. What are the five most
important things that tell you that your business is doing well? Or not.
That's all I want to know. What are the five?
So I want you to come up with those five - part of the focus chart. That
should take you five minutes. Maybe 10. Next. Next thing I want to try and
do, is I ;m going to try and blast a little bit on your concept of time, and
this is where I talk about time chunking versus time stacking. But one of
the secrets to making the most of time available is understanding the
difference between fixed and variable activities.

Right now, here's my story. We’ve got a week; five days. Let's say five
days. I know a lot of people in this room work a lot more than five days a
week, but think of it this way. Five business days. Five mornings, five
afternoons. When you start looking at that focus chart, and you're looking
at the what’s in the middle' your top three priorities and responsibilities;
and the how's on the side; and then you look at your desert island top
five. Why can't you schedule in advance stuff that needs to go in? The
stuff that Paul talked about that is really priority? There’s that classic
example from Stephen Covey, of the big glass pitcher. I use this in - I got a
non-[profit organization for kids, that my wife and I are very involved with,
called 'How to Get an A in Life.' And we teach teenagers life skills from the
research.

So anyway, we have like a big glass pitcher, and it's like this tall - it's
about that tall, and it's about that big around. Put it on the table, and I
take six river rocks, that are like as big as my hand, and I put them in
there one at a time, and I ask the kids- and they come up to the top; you
know, strategically. And I ask the kids is it full? And they're thinking - their
context is the big rocks. And so they say, 'Yes.' And so I reach under the
table and I’ve got a pitcher of gravel filled with rocks and stuff, and I pour
that i, and I juggle the thing around, and I go, 'Is it full?'

Now, half the kids can’t stand me because they know I’m going - they
think I’m going to manipulate them, and the other half - because I ask
them, 'Is it full?' And so the other half - but half of them go, 'Yeah.' And
then I reach under the table they can't see what’s under the table - I
reach under the table and I pull out a bunch of fine sand, and I dump the
fine sand - really fine, white sand. And so I jiggle the thing around, and it
takes like half a gallon of fine, white sand. Even though it looks full.

And then I ask them again, 'Is it full?' And most of them say 'No,' because
they just don't trust me any longer. (Laughter) I hate that part, but I earn
their trust back, but - I reach under the table again, and I get a pitcher of
water. And I dump the water in, and - I’ll be darn it, takes like a half a
gallon of water; this bloody thing. And now I go, 'Is it full?' 'Yes it is.'

Here's the message. It's such a great visual. I would have brought it here,
but I would have broken it in transit…(audio missing)
…said, the big thing, it's kind of a cool thing to see. It's very simple. You
got to start with the big rocks first. And every day, every week. Because if
you don't, the sand, the gravel, the mud, the muck; fills up your 24 hours.
Okay. And it's a poignant, important, visual representation; I think; the
best one I’ve ever seen, even though it's so classic; that speaks to time
chunking versus time stacking. Time chunking is proactive. Time stacking
is reactive.

Time stacking is - when we're treating everything as an equal priority. And

time chunking is 'Whoa, wait a minute. the one thing I’m going to do is I'm
going to spend a little more time planning.' Planning what? 'My agenda.
Who I’m going to talk to, what I'm going to do, how I’m going to do it.' So
in this new economy that we're heading into, the one thing you guys got
to do is think a little more. We all got to think a little more, and that
means make time for planning what you're doing. And a wonderful book
called, 'Good to Great,' by a colleague of mine that I really respect; that
was a co-author of 'Built to Last.' The gist of that book is all about
discipline. The need to get back to discipline.

It comes from a big company perspective, but its - a lot of that relates to
the small companies as well. We just need to get back to a little more
discipline. And push back on the insanity. And go somewhere and plan the
week. You're not looking for perfection, you're not going to hit 100%, and
just like this seminar, if you're expecting 100% return - you're going to get
more than that, but I want you guys - lighten up.

It's okay. If you hit 80%, it's out of the park. Your life - I’ll see you in
Hawaii. Whatever you want to do. If you just focus on fewer things and do
a better job with the fewer things, no one will compete with you. Alright?
So time chinking versus time stacking. I want you - my whole thing; my
gift to you here - time chunking. Plan ahead. Okay, now on the other issue
of 'I don't have enough time,' there's a great quote that says, 'Don't say
you don't have enough time. You have exactly the same number of hours
per day that were given to Helen Keller, Pat Stewart, Michelangelo, Mother
Teresa, Leonardo Da Vinci, Thomas Jefferson and Albert Einstein.

We really do. How many work hours do we have? If you work ten days or
ten hours a day - ha, ha, ha. Some of you guys say, 'I work 10 hours by
noon, dude.' (Laughter) And I believe it. It's so exciting to be - no, I’ll talk
about that in a minute, but this is a real issue. So basically 2200 hours a
year is what you got. At 10 hours a day. When you take away weekends
and two weeks off, you got 2200 hours a year; and my question is what
are you going to do with it? Are you going to let this reality - let people,
circumstances and events dictate to you, or are you going to dictate to it?
Come on guys. Let's step up.

Let's exert some more pressure on this. Let's make it happen. And there is
no simple way. Go ahead. Good. That's good enough. Yep, back one. Sorry
guys. Now Rick, I want that 20 seconds. So there is no simple way. And the
dis - Rick's like, (mumbles). So the discipline is essential. Dr. Seuss; he
said, 'I go to my office everyday -' you know, a lot of artist who do the
same thing; they're so cool. Writers - I hate writing. But I think - anyway - I
think I’m good at it, but the only way I can write is if I do it every - at a
certain time every day, for a certain amount of time. Sometimes I don't
come up with anything. Nothing. Nothing at all. But I do what Dr Seuss
says, which is 'Sit down. You ain't leaving until you're done. Until the clock
says "X, you're not leaving."'

So I think there’s some real knowledge - some real intelligence in getting

into patterns in life. Rhythms that you're in charge of. Setting
appointments with yourself. To do the stuff, like, prepare, like read. Bill
Gates takes two ten day vacations a year, just to read. With no family, no
distractions; up in the mountains; see you later. And he takes a junior - K-
mart - whatever - bags of books up there and he just reads it. Next.

Now, here's how to know whether you're time chunking or time stacking.
Real quick; this is not homework, but this is a great tool that you should
use for the future. If I were to follow you all around for six weeks and do
an official time and motion study on you, that really happens in life; I
could tell you to the minute what you're spending your time on and
exactly what your - based on your objectives and what you should do and
what you shouldn't do -want you to start bagging what you ought to do
more of.

The best way to do it is with these two circles, which are discussed in the
white paper. Answer the question: where do you currently spend your
time? If you had to allocate it, draw it out, in an average day or week, and
talk about hours; don't talk percentages; it's too vague. Talk hours. You
can use a day or a week. But that's the time frame you should look at.
Where - if I asked you, 'So where do you spend your time?' If time - if we
can all agree it’s the most important asset; where do you spend it? This is
a great way to show me. It would be a great way to show yourself, most
importantly.

And then, based on your top five indicators, and your focus charts, and
the strengths theory, I could ask you, 'In light of all that stuff, where
should you spend your time?' And you would draw another pie chart right
next to it; where should I spend - and limit the activities to no more than
six things. Because when you really get down to it, you'll figure it out that
you don't need to go deeper than that. Keep it simple, But now that you
go the pictures in your mind, and they're right in front of you to compare,
you can do your own biopsy; your own diagnosis; to figure out what needs
to go, and how I’m going to delegate it or reduce it or eliminate it, and
how I’m going to get back on track. To 80% alignment.

We'll never get to 100%, it's just not real; we'll get to 80. Alright? Next.
Revitalization. This is a quick one. Par - I have tool number five for you…

Jay Abraham Mastermind Marketing 21

…it’s - is another - it's a broader framework - it's about how to think about
time. A tired businessman is one whose business is usually not a
successful one. There’s something called the law of attraction. If you're
tired, beat up - I love the discussion between Jay and - help me. Thank
you. On revitalization, right? When Paul said - Paul - when Paul said, 'I
would take Friday’s off?' You know what? That's flat brilliant. I don't know
where he got it from, but I can substantiate it with a couple of phone
books of research, and all I’m saying is right now, if I - on a one to ten - if I
graft your level of effectiveness based on the quantity and quality of
output; the stuff that matters most; if I graft your effectiveness; which we
do with clients, the average professional in America today is somewhere
between three and four, on a daily basis.

Three and thirty and forty percent effectiveness, okay? In terms of what
should they be getting down, priority [unclear 1:27], and so forth and so
on. Well, I say, what would happen if you doubled that? 'Doubled it; how
do I double it?' 'You take more time off.' You see - it's a funny thing
happening - it's called the revitalization effect. And it’s now in the medical
books - Duke Medical Centre, and Stanford Med Centre and some other
studies have documented this; and it's an amazing thing, but human
beings are not robots, we are cellular beings, and we need to revitalize.
Four pools. We got body, mind, spirit and emotions. When one of those
four reservoirs runs dry, it just throws the rest of it off balance, and we
become unattractive to deal with.

When I say unattractive, I’m not talking about how pretty we are, or
anything like that. I’m talking about something happens to the way we
talk, how we say things, what we miss, our awareness, our memories, our
ability to connect with people at a deep level. Something happens. We're
putting obstacles in the path. So my suggestion is, you take that one real
seriously, is to absolutely start taking more vacations. And you need to
take vacations where you do not work. If you think revitalization comes by
taking a file to the mountain house, making a little call, having the pager
on; the minute that pager goes off, for that day you've ruined the
revitalization effect at a biological level. Okay? So it's either you're off or
you're on. It's like that movie - 'Hands on, hands off. Wax on, wax off.'
You're either on or off. Choose it, but the most important thing is - think
about this. If you took eight weeks a year off based on the - the fact is that
we get between eight and 14 days of peak performance when we're
revitalized.

When we come back from a vacation, don't you feel like things don't get
to you quite the same as they did when you left? You're better able to
synthesize complexity, relationship issues, politics, sales cycle issues,
closing - 'Hey, this is what we need to do over here.' 'Well doggone it, why
didn't you tell us that three weeks ago?' 'Well, I wasn't rested.' But don't
you feel more - you get eight to 14 days off, according to the revitalization
effect, of peak -you get eight to 14 peak performance days. So if you go
through the numbers, and multiply what that means to 220 work year; if
you took eight weeks off, you'd wind up doubling your productivity, going
from a three or four to a seven to eight, working 180 days a year, and
having a heck of a lot better time.

And by the way, being a lot more interesting to be around. You know, it's
like, 'Jack, what did you do?' 'Well, I just climbed Mount [unclear 4:24] the
other day. What'd you do?' 'Oh, I made coffee at the office.' (Laughter)
'That’s really...was it good?' 'I don't know.' Eeyore - I mean, come on; how
you going to separate yourself from the competition? You got to - guys,
God gave us these bodies, these minds, this spirit, our emotional make
up. The Japanese have a word for over-worked by death. Mitsunumo. I
don't want you guys to suffer from it, and I’m not going to either.
Guaranteed.

But this research is really huge, and I’m going to tell you what happens to
your results is going to be phenomenal. So, do you take enough vacations
to revitalize? Again. And then we got all these stats we can run through -
keep going. (Mumbles.) Ah, the work day has increased tremendously, and
the pressure increased tremendously; I want to get to tool number six.

So now we get to decisions. Next to last; these will be very quick. And this
is the average professional in the United States today makes 1327
decisions a day, according to time and motion studies. Okay. Now, most of
those are at the subconscious level; no doubt about it, but you know
what? Some of them rise up; they bubble up, and we got to think about
them. Wow. Habits. Did he say habits cause the web? That's one of the
factors. So we need something to help make decisions. As I’m looking at
all this stuff, I’m wrestling with it too, and I’m saying, 'How do I make use
of all this great stuff? I’ve been attending a lot of these sessions, and
taking notes like crazy; how do I get the most out of these incredible
minds, and all this great stuff?'

Well, one of the things we’ve got to do is we've got to have a way; a
mechanism for sorting through the stuff. I just can't look at it and go, 'You
just need to focus on true priorities.' 'Okay, I got that.' I don’t even know
what a true priority is. I mean, I do; but I used to not know. I used to kind
of think I knew, but I really didn't know. But after you're done with the
focus chart and the desert island top five, and so forth, you'll have a much
better feeling of what is important to you, what you can act on when you
use these tools. Next.

There are ten ways to make a decision. Go ahead Rick. Go again. Again.
Go ahead Rick. There. Alright, now this says nine. There's ten. Let me go
through them. Here's how you guys -I'm suggesting. This is a great filter
for you to use, to help you decide what you ought to do. What you ought
to focus on after this session. One is figure out probability. I used to use
this important modicum of time, money, probability. Probability is the
most important thing. If I’m going to work on the deal, it's got to have
high probabilities. How high? 70% or more in the first phase. And how do I
do that? Qualify the heck out of it and so forth and so on.

Money. It had to meet my minimum income requirement per transaction.

And then time. I couldn't - have to rewrite the Magna Carta. So what's
most likely to occur has to do with the activities you're thinking about;
say, 'Is this really likely? Does this have an 80% likelihood or better, of
turning into bucks for me?' 70% - but I wouldn't go any lower than that.
And that’s one of the biggest overall impact to my business. Quickest
impact. Which of these activities that I'm looking at in all these books, and
ideas, is most likely to generate the quickest impact, from a time stand
point?

It could be financial, operational, whatever. Most permanent impact?

What's least disruptive to our existing operations? That may not be a
factor to you guys. What’s most visible to key stakeholders? That might
not be a factor, unless you have an investor involved or some
stakeholders. Quickest pay back. What's going to produce the quickest
pay back to me? What involves the least up front cost? This is normally
very important to us. Should I create a website? Well, how much does that
cost? Well, should I work on two of the marketing ideas from the
Parthenon? How much will it cost? This is another - it's a critical issue
guys. It'll help you sort through? And what's easiest to implement? The
last one I’m going to add - easiest to implement. I don't want brain
damage. I don’t want - I want to keep it simple if I can. I don't know; call
me a fool. I like easy. I like easy more than hard.

If you have a complex, tough task; give it to the lazy person. They're
going to figure out the best way to do it. That's what I think. So, easiest to
implement. The next one is what is most consistent with your strengths?
Your core competencies. So what I would then do is use this list, pick the
top three or four, and sort everything according to that. So last one. I'm
going to close here with the seventh tool - triple A's. And here it is.

Triple A's. I'd never have a meeting, or I'd never got through this; I'd never
think about something like this - I mean, I have a separate list in my own
bag called Triple A's. Assignments, Actions and Accountability. That's triple
A's. These are just - 'What should I do, when should it be done by, and if
it's not me who will do it, who is it that is responsible; singularly
responsible?

Along these lines, some other stuff to sort through that'll help you, is look
for instant impact ideas. We call them Triple I's. Instant impact ideas.
Million dollar ideas, is the next one. Look for million dollar ideas. Big, big
ideas, that can take you a long way quickly. Triple A's; Triple I's, million
dollar ideas; the acronym is AIM. You can't focus if you don't AIM. Good
way to remember it.

And for all the other stuff, that we hate to let go of, we hate to let go of;
don’t let go of it. Put it in the parking lot. Alright? I have something called
a parking lot for great ideas that I really want to get to; I really want to do,
but I just can't do it now. Those used to drive me nuts because I'd try to do
them anyway. But now I set up an appointment with myself for two
months in advance, and that's when I get to the parking lot ideas. Okay.
That's seven quick hitting tools for executing. How do you take this gold,
mine it, kick butt with it, have a life, and truly out-execute your
competition?

Grow your business. Execution is everything. You've just learned about

focus, strengths theory, decision making, time in a different way; I hope,
and how to really sort of synthesize the noise. How to reduce it down to a
manageable bunch of stuff? I got to go; it's been a super honour, and I
really mean that. Thank you guys very much. (Applause) Thank you.

Jay: Wow.

John: Thank you guys. I'm done.

Jay: No, no, you're on the strategy panel so just give us like 10 minutes
and we'll be back. Thank you.
John: Thank you. Great. Thank you.

Jay: John - all of the speakers, besides coming here to give to you, are
going through performance hoops, because he normally would never do
an hour and 15 minutes; he would do two or four, and then you would
basically prefer doing two or four days, and we say you got to try and give
the big payoff to everybody. Many of these people have so much more
depth; it's like I could do 86 hours myself, and we're trying to give you the
best, integrated Jay Abraham marketing mind-set strategy and then get all
these wonderful people. John will be on the Power panel in about 15
minutes. We're going to work on trying to get a whole big, full, two and
half to four day event with John; or five day - we haven't figured out what
it’s going to be yet. But get what we're doing. We're trying to compress
the big message.

Do you understand that? The Pareto principle essence; because I don't

want you just to have a lot of great marketing ideas, I want you to put
them together strategically, but thank you John for letting us play havoc
with your [unclear 00:02] and very, very, very, great wonderful message.
Okay, here. That deal. I’m going to reconcile for you really quickly. Rick
says that maybe I frustrate you guys because I talk about Power
Parthenon, I talk about force multiplier, I talk about focus; anybody gets'
daunted and - I’m very simple. I get a big overriding strategy that I’m
trying to reach. Then I break down - I’m a pragmatist and I’m very logical,
one-on-one. What's the easiest - first thing I do is look for the low hanging
fruit. I use that to generate the cash flow - first of all to do two things.

To validate the viability; the productivity, the power of my methods so that

you're really feeling good about them, and everyone in your organization
sees demonstrable validation. Then you use the cash emanating, to fund
the longer, more strategic things but the key is when you find one activity,
one approach, one promotion that works; most people stop there, and
they do it, at best, intermittently. They don't do it systematically, sequent
- your job is to bring it all down to pragmatism. Easiest, fastest, safest;
least time, money, effort, human capital to start with; just so you get a
validation a little bit - or a lot of capital; then the goal is; can you turn that
into a sustaining; whether it['s monthly, quarterly - at certain intervals. If
the answer is yes, you do it. If it's no, you use the money to go to the next
activity that's going to have the most sustainability, and you keep using it
to parlay, and you keep building layers and pillars.

Layers and pillars. And you understand you’re working on the geometry,
but it's taking you 20 years to get to where you are, or ten; if it takes you
six months or a year to get into this, you take the first easiest thing, and
what I would think it would be is - the Jay Abraham 101 says you got all
kinds of stuff in motion right now. You identify and inventory it, as i said
yesterday; what it is. And it's like, 'Can I make it better right now? Better
headline, or a better approach or add something to it; or take the money
or the time and use it somewhere else. That's the first thing you do.

The next thing you do is referrals, and all the things that take almost no
time and effort; but gives your residual. the next thing you do is you work
on the two other ways to grow a business; in selling more things more
often. Then you try to reactivate it - just do the things that are logical.
Does that make sense? And you keep building; but when you have a
breakthrough, you don’t go, 'Okay, great. Stop doing that, let's do another
one.' If it is sustainable, the first thing you do is put that in place so it'll
keep coming in, being predictable, being systematic, being projectable,
being budgetable; so you know that you're going to get $20,000 a month
from this; every time you get a new thousand lead, you're going to get
this; so you can forecast it, and you can use that money and don’t use the
money.

I live - I have a beautiful home in a very conservative neighbourhood. I

have the biggest home in the neighbourhood; it's by and large well
overbuilt for the neighbourhood, and it's probably - lose $500,000, but I
sold it; but I had so many people that I helped when I got started, who if
they made $10 million, they’d buy a $25 million house, and their debt
service would be 100 or $150,000 a month. And the first time something
didn’t work in their business, they were screwed and they lost everything.
You want to not take all your money and put it in your lifestyle, until such
time as you have an asset that’s so valuable that you know it's going to
sustain.

You want to put it back in the business, because that's where the leverage
is. A thousand dollar test - if every month you test 10 things with $10,000,
you'll probably find three winners; and it doesn’t matter there's 7,000 you
lose; and one of those three winners might be worth $200,000 a year, if
you systematize it; but it's very logical. So you're working on the
geometry of the business, but you're doing it one bite at a time. Does that
make sense? And be pragmatic; don't go for the home run. I mean, what I
say is easy. I’m not a sports enthusiast but it's like casing the bet. If you
go for the home run and try to hit a home run, you probably won’t'. If you
say, 'I want to -give me the bat, and I’m going to single.' If every team
playing baseball; everyone at bat got a single, and the first time at bat,
they'd be like 50-0; I mean, they would kill you with just singles.
You'll find home runs if you just try everything, but go pragmatically. The
least - the fastest, easiest, safest, least costly, least time consuming, least
capital; or human capital - do that first; because all you want really, is a
validation that Jay Abraham isn't full of beans, isn’t it? And you want some
money; if you spend $500 and you get back $3,000; you parlay it. And you
parlay it. And you parlay it, but don't stick into your pockets and say, 'Oh,
man, let's go out to dinner and have a big party.' Do the opposite. Please.

We're going to take a very quick; 10 minutes. We're going to reconfigure,

we're going to - still come back to the same tables because it’s too much
trouble to change - we're just going to feel the water. And we're going to
do the Power Panel for an hour, and get you off to dinner, then we're going
to come back and do some fun things. So 10 minutes and we're going to
start.

Put on some very fast, motivating music for me. Yes sir?

He was invited. He didn’t come. Yeah. She was invited, absolutely. She's
got - she's a very interesting woman.

Alright. Wow, what an auspicious group. You're going to see now. Okay,
wow. So we're going to do a power panel. One, two, three, four, five, six,
seven, eight, nine, ten. We're going to ask maybe six questions. Each
one's going to have about a minute to answer. It's going to be a raw shock
at the highest magnitude. First one answering has all the pressure. Last
one's got - well, actually, the last one; with this long of a group has a lot of
pressure to; to be brilliant. It's going to be a demonstrable evidence of
how agile and proficient the minds are. So I'm going to ask some stream
of consciousness questions. This is a strategy panel, so we're not going to
talk about tactics. So the biggest first question I want now - I’ve already
introduced everyone to you when you were here in the beginning, and
rather than waste the time - well, I didn’t introduce Don. Don [Unclear] is
a colleague who's specialist in very quick, instant changes, and he's -
that's right...

Don: Somebody likes me, yeah. (Cheering and applause)

Jay: ...And he came down to be here. Okay, stop, stop.

Don: Yeah, thank you.

Jay: And we're going to vote for your best strategic thinker at the end. But
- so we're going to start. Okay, we got all these entrepreneurs in the room.
We're talking about strategy. What would be the one most critical piece of
actionable advice that you can do in one minute or less, that'll have - that
will go further to transform these people when they get home; than
anything else you could tell them? Andy? And you can pass if you want to
pass it. But you guys, this is a game we can play very freely.

Scott: This is will be...

Jay: One minute or less.

Scott: ...purely from a sales perspective...

Jay: Strategic, remember? Strategic; it's got to be strategic though. We're

talking strategy; you've got to put your mind through this strategic screen
- filter.

Scott: ...think the sales process and women stick to it.

Andy: I think once you've decided what you want to do, which is your
strategy or should drive your strategy, I think the next question to ask is,
'Who can I find that already knows the how?'

Scott: I think that the thing you got to focus on is really zeroing in on one
thing and really looking at how you can strategically and tactfully
implement that within your operations.

Jay: Stop one second. For those of you who don’t know, Andy, you know -
Edmund Neil owns a very, very large company; very successful man. He's
engaged and probably picked the minds of some of the best people. He's
a partner with me in the Ed Edge business that we're going to do. We'll tell
you about it later. He's a partner with Marshall. Marshall is a client of his.
He’s one of the brightest men I’ve met. Marshall has utmost respect for
him as a business person, because he follows what he learns and he's a
brilliant, brilliant person at translating theory to applications.

Scott, I’ve already introduced but I'll introduce him again. Scott Holmen;
he built two companies from scratch, to a $100 million each, sold them;
and he has taken a methodology which is very unique and combined a lot
of the stuff I do; other people; and he's figured out how to bring it down to
action co-efficients, one step at a time, and he also figures out how to find
the hierarchy of opportunities in your business. And then basically, make
everything happen.

Alan Coleman is a colleague of mine, and he's involved with me in a really

interesting business, and he’s formed a methodology that he's going to
talk about after dinner, called, 'Rethinking Inside the Box,' and it's a
really, really cool matrix for finding massive windfall opportunities.
Sri Rau is collaborating with me on a book. He writes - he's written articles
for ten years for Forbes, and a bunch of other financial publications. He is
a professor of marketing at Columbia.

Marshall has got a 400 plus IQ, and he's the most bright guy and he's
going to learn to smile more. (Laughter) But he understands - he
understands the intricacies of bridging innovation with optimization. Mike
Basch you know; Don you know. Don I just introduced and John knows all
about instantaneous conversion and peak performance. You know Chet,
you know Paul. My name is Jay Abraham. (Laughter and cheering) Is that -
Scott, go for it. You already did it?

Scott: So no, I wanted to kind of add - so when you go to look at

implementation, there's really three categories I think strategically you
should look at. Number one is, a lot of you are learning a new strategy,
new thing to implement here. And that's going to be new within your
organization. But don't discount it. If you're already doing it now - because
a second opportunity with its huge amounts of money, is being
systematic. And what that means is taking a look at what you're doing
right now. Are you doing it only seven out of 10 times? Because if you are,
you're leaving 30% of the opportunity on the table. And then the third
area you hear, is each one of these ideas - so it can be new, it can be -
make it more systematic. And again, I always ask how many times out of
ten are you doing it?

And the third one is where you take a look at your success formula; what
you're doing well now. And look for an element that you can one up, as Jay
would say, or you can improve. So, as you listen to these, don't discount
them because you say, 'I’m already doing that.' Take a look - can you one
up it? Can you systematize it, or something new or an element you can
add within your organization?

Alan: Let me ask you all, how many different acronyms have you heard in
the last two days? Anybody? No, not too many. How many have you
heard? 10. 15. 20? 35; thank you for counting. My sense is, pick one of
them, and make it apply to positioning.

Jay: Don’t mean to interrupt. One thing - Alan basically also, by day, helps
major corporations and law firms formulate very sophisticated strategic
litigation counsels, so he understands strategy at a very high level.

Alan: Thank you - I think. (Laughter) Basically, to me, you need to

evaluate your position in the marketplace at least once a week, and
maybe you do that in the beginning of the week, not at the end of the
week. And you look at where you are, where your competitors are, what
you clients say they want. What you're delivering, what you're not
delivering, what's been rejected. But always look at positioning.

Sri: I think the most important thing you can get out of this meeting and
the days you're spending here is to come alive with possibilities. It's the
mental barriers that you have that you have to break down, because
there's some really incredible insights that you can get. Let me give you
an example. This is something Jay's been advocating for a long time, and I
was doing in independently. You look at every business and see what's
their business model. And about - roughly a couple of months ago, Jay and
I were talking, and it turned out that both of us had independent
relationships with a very well-known firm; unfortunately I can’t name it;
and both of us were very impressed by exactly the same thing. Here is a
firm; a very successful consulting firm, that figured out a method to get
clients to pay the firm for pitching it. Now, think about that.

Jay: Pitching purposeful - so basically soliciting them.

Sri: In other words, the firm figured out how to get potential clients to pay
to be solicited. How's that for a business model? (Laughter).

Man 4: Most people think in terms of customers, suppliers and

competition, but there's another key component that can dramatically
shift the way you do your strategy. What's the last - which one's missing?
Well, employees too. I'll put that in there. What else is missing? There's a
thing called a complementor. If you're in the vitamin business, maybe you
can look for somebody who's a physical fitness coach, because they're
going to complement you vitamin business. You look at Intel and
Microsoft; they work hand in hand, because...what? The better the chips
are, the more sophisticated the software can be. So if you start to look at
your business from who are the people that are logically your
complementors, it's spelled with an 'e,' not an 'i.'' And if you think that
way, you're going to find there's a whole bunch of people who you can
complement with and it'll totally expand your ability to market and sales
just go way up. And then you can often make your competition a
complementor. I mean, in New York City, they just got together all the
museums and created this one day museum pass. And what they've done
is they've doubled their sales because you get the one pass, and of course
they divide it up, but it brings people into New York; they advertise jointly
and now all the museums had - doubling in their visitor base, by
complementing - and even though on one level they're competing.

So if you can make your competition a complementor, or if you’re willing

to see where these complementors are that deal with your business, you'll
be amazed at how easy it is, because you are a solution to something
they have, and if they can get an equity deal with you in some way, it's
just amazing if you start thinking in terms of complementors.

Jay: Good.

Man 5: To me, it's four steps. We’ve talked about all four. Define your
client. Who are you trying to reach? (Audio missing) …got to be the
beginning of the strategy. And then the experience you're trying to create
for them. And by experience, I don't mean just when they purchase from
you, but what they see of you. If you’re in the trucking business, what
your trucks look like. When you open the door, when you answer the
phone; what experience should they have when they do business or at
least deal with you in some way? And then from that, develop the plan,
and then execute.

Man 6: Well, I got so much stuff floating around in my head; I used to

think I was indecisive, but now I’m not so sure. (Laughter)

Man 7: We'll decide that for you.

Man 6: I got a couple of quick ones, I think, that might help here. One is
an off shoot. You know what, it’s kind of cool, when you hear somebody -
you think of something else and it might related; might not be related; but
I really like the idea of a complementor, with a slightly different twist,
which might be a little more purposeful. And that is that to find a partner
in execution is probably the single most valuable thing you can do from
now. A partner in execution. And whether you call it a mastermind, or a
Board of Directors, those are great; but they take a lot of time, you have
to give a lot to them in order to keep participation up. That is, when you
have a lot of people looking in on your own business, and sometimes it's
a little melodramatic and unnecessary, so - but I think if you can just find
a mentor who's really wise; who's been through some war, ups and
downs, maybe even two; and you just make it your responsibility to be in
touch with those guys, or ladies, every now and then, I think you're going
to be super.

And your probabilities - and I won't get into this - all the research and stuff
that we're aware of on this stuff. But Michael Jordan has a coach. Jack
Nicholson has a coach. They have for - Tiger Woods has got - not just
coaches for their sport. Coaches for life. 82% of the CEO's in the Fortune
500 have coaches. They don't want to talk about it, but they have them.
These are advisors; formal and informal. And then the last thing I'm going
to say quickly is pass the torch. A candle loses nothing of its own light by
lighting another candle. So hey, don't be paranoid that somebody's going
to get my secrets. You know, so many of us are so careful today. And I tell
you, there is wisdom in that, but I believe there's far more to be gained by
being open, out there. If you think you can add value to somebody's
situation, or somebody else, for any reason; you grab them by the throat -
not really - and sit them down and say, 'You know what, we really need to
talk about this.'

And I just think if you're open and giving, your whole mind-set becomes
serving others and the right people are going to show up on your lap, and
great things are going to happen. You're going to get burned; what's new?
Big deal. Move on and grow.

Jay: Good.

Man 8: I would say my answer to the question I thought I heard, is - yeah,

so - whatever question I heard, here's my answer to it. How do you take all
these ideas; because there are so many multi - gazillion dollar ideas out
here that are being thrown at you; and how do you take those ideas; or
which ones do you take and how do you make them actionable? Because I
think that's really the key - you can hear a lot of ideas and each one of us
has probably at this moment in time, a thousand different thoughts going
around our head. So which are the ones that sink into your brain, that
cause you to take action? For me, the distinction is the difference between
recognition, and installation. You recognize a lot of great ideas. Which are
the ones that become installed in you at a level deeper; at an emotional
level? On a level that causes you to act upon those ideas? That's the
difference that makes a difference, as far as I’m concerned.

And then it becomes, how do you learn how to take the ideas that you
like, that make sense to you, that work for you, and get them down to a
level where you don’t have to think about them, you don’t have to try so
hard to make them happen; they just become as natural as breathing,
brushing your teeth, getting angry, falling in love; whatever it is you do
well automatically. Those are the things you want to be able to do with the
ideas that make sense to you, and have them become installed at a level
that causes you to move on those ideas. Those of you who are interested
in learning more about installation of ideas - how many of you would like
to learn more about that? Raise your hands. Okay, good. I may do a little
piece later tonight, probably about three or four this morning, when it's
finished up.

Jay: That's right; that’s about the only time we have, but we'll try it. We
had a full house until two thirty last night.

Man 9: What was the question? I'll just make up an answer. My answer is
- thank you. My answer is; I’m going to go with Jack Polantz on this. I’m
going to go with Jack Polantz, and I'm going to give you the tactical
solution, so the - pick the one thing that you're going to focus on. And I
went into that already, so I won’t do that again. Pick the one thing - and
then break it down, so there's only four things in your business that you
could work on, which are sales, marketing, finance, or delivery of your
product. So pick the thing - that area that you believe has the greatest
leverage for you, and then optimize one part of it. Take a page from Chet,
which is whiteboard the thing. So you decide - choose which is the thing
you're going to optimize, and use that whiteboard process with your team.
Create a process and then test it cheaply. So that's my general all-
purpose advice.

Jay: That was good.

Man 10: What he said.

Man 9: No, really, I totally agree. Just take something - the thing that has
transformed companies that I’ve worked with is that one hour a week.
That is just working on the business, and that's designed to improve the
business and it's incremental, that it's continuous, and just don't expect
big leaps because that will stop you from doing those meetings, and you'll
throw out the baby with the bath water. A lot of clients that I work with -
they say, 'Well, we used to have meetings but they just turned into bitch
sessions and we stopped doing them because they really weren’t' that
productive.' That's bad leadership in a meeting, because it's no way you
can have a meeting that's not productive, if you have good leadership.
And that means putting those problems on the whiteboard and solving
them, and looking to do it a little piece at a time.

Jay: That’s a great point. Because you have the mike, I'm going to give
you the chance - but you can pass. Think of a company that demonstrably
is a great model for all these entrepreneurs to look towards, and give us
again - in one minute. This company, and here's what it is about them you
should learn from and try to model. Don't have to be a big company, it can
be a company that - the bigger the company, the easier for you to
describe in one minute; but can be John down the street who's got a dry-
cleaning; he does it perfectly. But one company that they can think of
modelling as a reference, and what it is that company does that's so
powerful and so illustratively appropriate for them to think about.

Man 9: Okay. When I was going over the strategic objectives, and I was
showing like, 12 or whatever number of strategic objectives; think of a -
one of the most powerful strategic objectives you can have is to be the
educator in your market; to be the one place where everyone goes for
information. I’ll give you a great example of a great company that started
off ten, 12 years ago; they were non-existent, and today, I don't know
what they do, but it's probably something like $25 billion, and that's Home
Depot. And they said, 'When you come to our plumbing supply place, we
got a plumber in there. Joe' been a plumber for 27 years. Well, if you want
plumbing supplies, you want to go to another place where they go -' and
literally, I had this experience where I went into a lumber store.

I tell a whole comedy skit around this, but the customer service guy said,
'I'm sorry, sir, we're not allowed to give advice.' (Laughter) And you know,
I’m serious. they couldn't give advice in case i built something wrong,
whereas at Home Depo, they sit you down, they'll draw you blueprints.
They’ll teach you how to be a master of home improvement. they created
customers, right - move up the pyramid, like I showed you. They took
people who didn't think they could do it, who weren't really thinking about
it, and they moved them up the pyramid. So a great example of a
company that became the leader by being the most educational in their
market. Great advice for everybody here.

Jay: Okay, good. (Applause) Encore, encore.

Man 10: Does anybody know what Quicken does? Yeah, you all know
what Quicken does, right? My company of choice would be Intuit. I'm a
software guy, so I think about software. Intuit is a - I don’t know; the third,
fourth - they're one of the largest software companies, and they are
known for one simple, totally easy to grasp product. And then their line
extensions are simple, totally easy to grasp products that are in the same
space. Now they're pursuing a vertical strategy, which are simple, easy to
grasp products in the vertical. So they follow my notion of focus. Good
company. Thank you.

Jay: Double bravo.

Man 11: I’ve worked with a number of companies, and one that stands
out to the question that you said, is - as a kid, about 25 years ago, I had
the good fortune of being around my father, who was a senior Vice
President for General Electric. Worked directly under Jack Welch, when
Jack Welch came into the company, and at that time, as a teenager, I got
to see how Jack developed his whole theory and system, and the
resistance that was in place as he started to change the whole nature of
this whole company called General Electric. And one of the biggest
resistances that was there, as a result of my father; being an engineer at
that time - being a nuclear physicist; was that Jack said, 'Tell all your
employees to come and talk to you and tell them what it is that they do
well and what it is that they don['t like doing.' Now this was a really
foreign concept back around 25 years ago., because the whole business
model was based out on seniority, and nobody ever asked, 'Hey, do you
like what you do? Are you good at it? Do you want to be doing this?'

And so that was one of the first steps that he took for getting people to be
in their jobs, in positions that they did well, that they were good at. There
was a lot of resistance to that initially. Over the course of two years, I
watched my father go through this process of saying, 'This guy Jack
Welch; he's a joke, man. He's trying to change this whole company
around. It's a complete disaster,' to 'Well, this guy's really got some great
ideas.' Now, in the course of that process, a gentleman by the name of
Bill Anders, who was an Apollo astronaut, was also there at the dinner
table, through all these discussions that I would watch go on. And Bill
Anders took this model from Jack Welch. Number one; get people to do
what they loved to do; and then number two; take the company that you
have and only find things that you do in your company that you're number
one or number two at. Get rid of all the rest of the stuff. Number one or
number two. To answer your question; how do you model that? Bill Anders
took that very same concept, went to General Dynamics and within a
course of almost two years’ time, did the same formula; the very same,
simple formula; and left in less than two years with a $120 million of
options and other things, as a result of just that simple formula. So...

Jay: That's great.

Man 11:...to answer your question, there's a model for how you might
do...

Jay: That's great, that's great. Thanks.

Man 12: Jay, this is one company that's doing it right, as an example of
these...

Jay: And what they can learn from it, but it doesn't have to be a big one,
just something that's going to be appropriate for them; not just one that's
a great huge behemoth, but somebody who they can actually bridge and
connect to.

Man 12: So I’m sort of scanning Wall Street Journal, Fortune - my own
experience, large companies, mid-sized companies, small companies,
and...

Jay: Local providers?

Man 12: Yeah, and you know what I’m thinking. What I’m really thinking
is, 'What would be of most value to the people who stood up in my earlier
survey, and to the people in this room right now?' It's not asking a large or
mid-sized company, 'What do you do that makes you so great?' Not that
some of that stuff is not critically important, like what was just said here.
Be number one or number two; what is that about? Strengths theories and
natural extensions to core competencies. That's huge. But you know, I’m
going to make a quick suggestion that you talk to somebody in this room
who I just happen to have personal experience with, who is in this room;
therefore he's accessible. You could get to him, and his name is Gil
Shower.

And I just think, if you want to know somebody who's doing some things
right; he’s tripled his business in the last year and a half or so, while most
of his competitors are down or hurting, and he's a very brilliant marketing
implementer, and he's a terrific guy. He's here, and so I hope that a lot of
people will now attack you, Gil, over the next day, and - stand up will you
Gil? Come on, Gil. There he is. Gil Shower. Okay? So he works in a small
business, but its very relevant to - I think, a lot of what you guys are
doing, and check him out. See what he's got to say. What he did. I'll let
him answer the question.

Mike: I’m going to pick the behemoth; UPs. I talked a little bit about them;
worked for them for 8 years. In my opinion, they're the best managed
company of the last century, without exception. And I base that on -
they've made over $70,000 millionaires. That's more millionaires than any
company in the history of human kind has made, and the reality is if you
get to middle management, you cannot help but graduate a millionaire by
the time you retire. They just manage well, and they do things that we can
all apply to our business. Tremendous sense of values. They wash every
truck every day. Why? Because I don't know whether you're handling my
package well or not, except when I see a clean truck and a clean driver,
and a driver that's serious about what they're doing, and courteous about
their business. My assumption is, you do that well, you do everything else
well. And they just do a number of things just incredibly professionally.

They measure - when I was with them, which is in the 60's, they would
have a five driver centre, and they'd have a clerk at night, working four
hours, measuring the results of each driver each day. And that clerk would
then give the information to the manager. The managers would talk to the
drivers the next morning about their performance the previous day. It’s
that type of attention to detail at every level. Another thing they did which
we could all do - because cleanliness was so important to their image to
the public, they would, for example, when I would go out and visit a
supervisor, I would obviously check the station, and I called one of the
district managers - a personal friend of mine - one day, and I said, 'What
are you doing, Verne?' And I hadn't seen him for years, but he was in
Cincinnati, and he said - I said, 'What are you doing in Cincinnati?' 'Well,
I'm sitting in our station watching our station manager mop the floor by
himself, because his floor was dirty when I walked in here.' And it's that
level of attention to detail that I think makes them excel, and every
company - for example, Patty Lund and the other ones that I was thinking
about - makes them excel as well.

Unknown man: Then he fired the cleaning lady.

Mike: Then he - no cleaning service; get it done.

Jay: (Laughter) That's right, stereo [unclear 4:08] In living stereo.

Marshall: Without a doubt, the single most impressive company I ever

met is a little company down in Hammond, Louisiana, and he's sitting
right down here; Edwin Neil. I’ve been with him for about 18 years; he
hired me as a consultant and I was sitting with Dr. Deming and he walked
over to me and he said, 'You seem to know all the answers;' he'd seen me
sitting in Dr. Deming’s class. This was at NYU. And he said, 'I can't afford
Deming, but I can afford you.' And at that point, I was basically - he said,
'Maybe I can afford you,' which was kind of a nice thing to say. And he
paid me - made an offer to pay me, at that point, more money than I'd
ever expected, and he said, 'I just want you to come down and work for
my little company.' And I've been there now for 18 years and watched it
grow from just a few people to over 1000, and watch it - he's not netting
more than he was grossing when I first got there.

And what he has, I see, is enormous ability to see the potential in

whatever your value proposition or the lack thereof, and if he sees it, he’s
totally patient and committed to supporting it in a way that - I mean, I
watched him deal with his people and the space he gives them to make
mistakes, and the enormous love that is generated with everyone he
touches, so if you get a chance - this is probably going to hurt Edwin over
here, but that's probably one of the finest human beings and probably has
one of the best success records in business I’ve ever seen. It's a little
company, an hour north of Louisiana, and he's right there. So you -

Edwin: Marshall's the president of my fan club. (Laughter)

Marshall: That’s not true. I’m one member of a huge fan club. So that's -
he’s got about eight companies, so you just have to decide which one -
basically let him listen to what you’ve got, and if he resonates with it,
you're probably on the right track. Thank you.

Sri: Have any of you ever bought any stuff from a company called
Patagonia? Raise your hands. How do you like it? Patagonia is a
remarkable company, and there's a lesson here which I think is very
applicable to all of you here; in fact I think that that's one of those - if you
do this, you'll be successful in your life, type of deals. What happened was
he was a mountain climber and he found that he simply couldn't get
clothing and equipment which he was happy with. So he went out and
designed extremely durable clothing, very good clamps and all the kind of
stuff you need for mountain climbing, and that's how the company
started. And there are a number of personal policies that he put in place,
but basically what happened is all of the equipment he sold was designed
by him, for people like him, and he doubled up the following, which was
incredibly, incredibly loyal. And the lesson that you can take away from
this is, for your company, you are the customer. And if you design your
product and your policies so that you would be ecstatic, there's no way
you can fail.

Man 13: Enron? (Laughter) World Com. Arthur Anderson? I don’t learn
strategy and theory very well until I see tactics first. And that's what we're
going to talk about in a little bit later.

Jay: God bless you.

Man 13: There is a company - bless you - that I want to talk about just for
a moment. It's not the biggest or the best, but it’s done something
intriguing. It's a company that started about 10 years ago. I'll give you the
name in a minute, you'll all recognize it. They developed a product initially
by mail order. They opened retail stores all over the country while they
continued their voicemail or phone mail. They have websites. The
competition in this particular field is extraordinary. The prices continue to
drop. The customers have absolutely no loyalty to the product or brands
that are out there anymore, and their business has been flat. The
company is Gateway. Gateway has just done something that I urge you all
to try to do. In looking at all of the problems; instead of trying to fight to
come out with a new gimmick or a different looking computer or a
different looking screen, they looked at what else their customers were
buying. They looked at what else their customers were buying that might,
in some fashion, relate to their basic business.

If you haven't seen the TV ads yet, or the magazine ads, you're about to
see an enormous campaign, because they're now selling digital cameras
and plasma screens. They want to get more people in the store. I’m sorry?
$3,000 ones. [Inaudible comment from audience 2:12]. They're greatly
discounted; correct. [Inaudible] Have you seen this?

Jay: Is Bob Proctor in the audience? Are you here? Is he here? No. Actually
- ironically, the general manager of the retail initiatives was supposed to
come as my guest, but - maybe he came early. He was going to come
today. Interesting.

Man 13: So the message is, whether your business is flat or not, whether
you have one product or multiple product lines, look at what your
customer's,; your clients, are purchasing or needing or buying, and see if
you can add them to your bag of tricks. One of the examples I’m going to
share with you later tonight, at about probably 3:30 in the morning, now,
is the company that went from 30 products to 300, and most of the
additional products were products they bought from their competitors.

Man 14: How many people have received a Victoria's Secret catalogue?
(Applause) Come on. How many have received more than one? Two? Ten?
The strategy....

Man 13: How many collect all the issues?

Man 14: How many men - you got to be honest with me - how many out
there have flipped through one? (Laughter) I tie in the strategy that Chet
teaches about top of mind awareness, and I want to talk about the tactic
which is, all too often I hear people tell me, 'I don’t feel comfortable
mailing more than once a month, or once every three months.' And I
would say the vast majority of my clients, when they come to me, don’t
even mail monthly. And the amount of opportunity that you have when
you mail on a regular basis is enormous, as Jay has demonstrated with
650 people here, getting 650 different campaigns.

Victoria's Secret mails up to a hundred times a year. A hundred times a

year. And I can tell you without being inside their office; if I were sitting in
the office of the CFO, he'd have a little thingy wrote down there, and all
they care about is marginal profit. They keep mailing until their marginal
profit no longer delivers, and so I think it's a great example of - among
other things they've done, a company that's used the direct marketing
medium, and consistency to create top of mind awareness in their
industry. So the message here is, if you're not mailing on a regular basis,
you need to amp it up until it no longer pays off.

Man 15: The company that I really love to watch the most is 3M. How
many of you guys know who Deepak Chopra is? Do you know? You've
heard him speak at least on some occasion. Well, we did some well-being
seminars in the early 90;s and Deepak was a speaker with us, and he said
something to me once; on the way to the airport. I’ll always remember it.
He said, 'The key to longevity is infinite flexibility.' And if you look at 3M,
that’s kind of the cornerstone of how they operate.
The other company I love is Johnson and Johnson, because they're a
company with great integrity. So the most sustainable part of any
organization is the culture of the company. And the culture is always
driven by the values, so when I'm looking for companies I love, I look in
two places. How flexible are they, and what is the culture of this business?

Man 16: Okay, I’ve got one company that comes to mind, then I’ve got an
individual that comes to mind, and most of my work is done in the high
tech world, so I’m a little biased there, but to me, my favorite one is Cisco.
And that’s because I think they've defined their fundamentals, and
they've done a great job of paying attention to it, and every Monday
morning, the high level executives and all the sales reps get on the phone,
and they have what they call a Monday morning commit meeting. To me,
it's really not about the sales part, it is about they defined what's
important to them, and then they don't just talk about it, they check it out
every Monday. So whatever that is, so that has to do with John's focus
wheel, really. I think that's a great example of that. And then I have a
sales VP who comes to mind, because when I think of him - I’ve worked
with about 900 sales VP's in the last two years, and only about 1 and a
half percent of them actually know what they're doing. And it sickens me
to even say that; but about 1 and a half of them really know what they're
doing, and that is a very similar thing.

They know what their strategy is, they focus on how they're going to
execute it, and then they pay attention and then they make sure that the
stuff gets done. So to me, it's define your basics, however that is for you,
and make sure people get it done.

Jay: Good. We only have time - and we have to be so fast, because if I

don't get you into the room before nine, they won't serve us. Wretches
that they are, so you got less than a minute to try to answer this, and if
you can, pass. Those of you who have had the fortune and the ability to
be in the room and watch all the other speakers and the interaction,
what's the one activity, event, occurrence, incident; positively, that
happened so far that you’ve observed that has the most strategic
importance to all the people here that you would recommend they really
refocus on, as far as just thinking about and listening to the tapes of, and
doing something about; and if time allows, in your one minute or less;
what's the one other thing you'd leave them with that'll make them more
successfully strategic? So as much of that in one minute or less, but you
got to be really quick, because I've got to stop and get them out at the
end. Thanks. Good. Andy, pass?
Marshall: I can think of something I can learn from Dr. Deming. Theory
plus activity equals knowledge. And you knowledge is really where
intellectual capital is really the most valuable asset of any organization.
So I think the thing we've constantly been reminded of here is to go home
and do something. and I think that's the single most important thing we
have to do.

Jay: Great, thanks.

Alan: And I would say - there's a bunch of people here in a lifestyle

business, and there's some of you here trying to build a - actually build a
business. So if you're doing a lifestyle or building a practice, or you're
building a business, decide which one you're in and then adjust your life to
fit it. If you're in a lifestyle business, take eight or ten weeks of vacation,
and if you're trying to build a real business, then make the effort and the
commitment and get it done.

Jay: Great. Good point.

Man 3: I think probably for those of you that have heard the other day -
there was the survey about how big you want to grow, and hurt - most of
the room I saw was at $10 million when you started your business. And I
think strategically, what you have to think about and understand is there
are strategic levels in every business. You get to a million or two million,
and you're doing everything yourself. And once you grow beyond that, you
now have to start adding layers, and as you add layers you have to stop
and change your business, so that you now become more of a delegator.
And for those of you that have already done that, and you approach that
$5 million, $6 million - maybe it's $10 million; you start having to look at
changing your business again. You have multiple branches; you've got a
more complex system, you've got to have more complex computer
systems, and as you grow beyond that, you have a whole new strategic
shift you need to make again, because now you're going to start attracting
much larger competitors.

So I think that for those of you that sit out there that say, 'I want to grow,'
you have to go back and think about how you're going to strategically
reposition your business. Maybe it means you need to start developing
somebody more. Maybe it means you need to hire somebody. Maybe it
means you have somebody in your organization that you really love, you
made Vice President of whatever department when you were small, and
no longer is that going to work, because when you go to hire that person,
you have to think - if you're at $5 million, you need to be hiring people
that are going to take you to 10 and 20 million. So I think for those of you
that want to grow, you have to really stop and think about where you're
at, and strategically how you need to shift your business so you can grow
to the next level.

Audience Member: Great advice. (Applause) From a guy that's done it

twice; to a hundred million dollars.

Alan: Probably the most practical advice I’ve heard in the last year came
from listening to the PEQ tapes that Chet and Jay did a while ago, and it
has to do with something that Chet said. How many of you get aske about
20 times a day by somebody; 'Got a minute?' Anybody asked, 'Got a
minute?' by somebody that works for you? Well, one of the things Chet
suggested was that you put a sign outside your office that said, 'Got a
minute's between 11 and 11:15 AM.' (Laughter) And I actually tried that.
And I’ve actually now trained staff to do the same thing. To be able to say,
when somebody comes up and wants to interrupt the flow of what you're
doing, to say. 'Would you come back in 15 minutes?' Or put your phone on
'Do not disturb,' except for clients.

Take the hour that you’ve heard people talk about, and make that your
hour, or your half an hour. And if you can do it 15 or20 minutes a day, to
do what you want to do that nobody else can influence - I have found a
minor practical suggestion out of 22 tapes that were part of that seminar -
33. Well, I’ve only gotten through 22. I didn’t get the second volume yet.
Remarkably able to get much more control over my work day.

Sri: In volume one of the file; I presume you got it yesterday, there was a
beautiful booklet with an orange cover called 'You Squared.' Did any of
you read that? What do you think of that? Absolutely. One of the big
advantages of being on Jay's mailing list is he puts you in stuff with some -
puts you in touch with some really, really incredible stuff. I wasn’t aware
of that before, and I’ll now go back and probably buy everything else that
the author has written. But anyway, coming back. As a professor, I have a
tendency to get dazzled by the intellectual brilliance of all of his ideas.
And I think one thing that I needed to learn; and this happened recently,
by the way. I was talking with Jay and we were bouncing ideas off each
other, and it was absolutely a wonderful session, and then we said, 'Let's
write a book. And I was thinking, 'Maybe someday we'll get around to it,'
and he came back with, 'Well, can you have a proposal ready by next
week?' (Laughter) And that's how it started. We didn’t quite get there, but
we do have a timeline, and it has started. So my sincere advice to you is,
you have many good ideas; there are methods of prioritization which
many of the speakers have given. I think some of what Chet Holmes said
was wonderful. Take action.
Man 4: For me, let's just visualize that you’ve got a fruit bowl in front of
you, and it's got some grapefruit in it. What happens to the fruit when you
take out the bowl? Goes all over the place, right?

And I think that - two things that - both of the brilliance of Jay and also
Chet over here, was that how important it is to set the context for
whatever you’re offer is. That he talks about market data, and Jay uses a
little thing about his Porsche for $65,000; and one guy said, 'No, I won't
buy for 65;' and then Jay changed the context, and of course now, it was
a yes where there was a no initially. You were talking about the importance
of being the master of the data - looking at the data of the particular
profession you're in, not looking at the particular specifics. Setting the
context, which makes it = the proposition - irresistible, and my experience
over and over and over again has been that the failure to think about the
context that’s going to make your offer irresistible, which both of them
were saying; is critically important. So what is the context that you need
to establish initially, so the fruit doesn't fall all over the place?

Mike: I'd go for referrals, but not as a way to grow your business,
although, obviously it’s a great way to grow your business, but as a way to
measure how well your customers love you, and how much they want to
do business, and tell others. And one thing that concerned me for many of
the referral programs; and I think somebody said it: it's not a matter of
paying your customer to do it, but giving them service so good that
they're doing a noble deed by telling someone else about it. That's what
Patty Lund's doing, and that's - most people would rather do that than
they would receive payment; although it depends obviously on the
product; but I think that way of generating a caring - there was a survey
done in Houston that I think was very interesting. They checked - they did
a satisfaction survey in customers. And they asked customers, 'On a scale
of 1 to 10, how satisfied are you?'

And they surveyed 10,000 customers. And what they found was there was
no correlation between customer satisfaction and repurchase rate.
Interesting, isn’t it? If I had a satisfaction level of nine, versus a
satisfaction level of six, there was no difference in whether I repurchased
or not for those products. Then they asked the question - different survey
but 10,000 additional recipients - when you asked the question, 'How
much do you love doing business with this company on a scale of 1 to 10?'
There was like .91 correlation. Which means almost directly proportionate,
which means when your customers love doing business with you, it's an
emotional reaction; emotional interaction, emotional relationship that
you're dealing with, as opposed to just simply an intellectual, 'How
satisfied am I?'
Paul: I would just be brief here, because it won't take long. Theoretical
construct, practical application. We need theory and practice in order to
achieve break through that’s great and critical. I just think, guys, where
you are right now - most of you - that the trick is with the execution. You
could take a mediocre plan and execute it really well, and it'll win. You can
take a great plan, great idea - how many have we seen [unclear 11:16] -
where they couldn’t'; get off the ground; couldn’t get traction? Couldn't go
through a stage or process. Couldn't recognize that there were six stages
of growing a business as a business evolves. Great comment made earlier
that - the stages of a business. You get to $3 million, you get to $5 million,
$10 million; by the time you get to $100 million, you had to reinvent
yourself about eight times. That's legitimate.

So I would just say the one thing I didn’t say about the executive survival
kit, which is, you should not only do it, but you should make sure that
everybody in your company does that. Does a focus chart. Does a time
usage chart on a regular basis. You teach them about time chunking. They
use the decision filters so you don't take forever to make decisions. You
keep track of the decisions you make, including those you postpone. And
you have a way of either dealing with them, or putting them in a parking
lot for some future - and then the Triple A's - Triple A's, Triple I's - you
know, all this sounds kind of 'Ugh, triple, triple, dipple.' But I’ll tell you, it
flat works. When you're dealing with people - as long as we have to
implement with human beings, you got to keep it simple and you got to
stay focused. So that’s it.

Man 5: I would like to - I guess the question for me was,' What's the thing
that I heard, or that we heard, that stood out, and how do you learn it?'

Jay: That's got the most relevance...

Don: That's got the most relevance. This whole piece of having people
stand up at the microphone and share what it is that they got; the big a-
ha that they got - is real powerful, because each one of you gets
something uniquely different, and when you talk about it and when you
share it with somebody, that hammers it down into your sub conscious
mind that much more deeply.

The second thing I would add to that is if you can hear those a-ha's or the
ones that you get for yourself or hear from other people, and then put it
into a headline, where you actually make a title for that a-ha, and now you
got the - 'I got this.' Now what's the headline, write it down as a headline.
This is what you’re learning here; marketing. Take the a-ha, put it into a
headline, as if you were going to sell that segment, that topic of what you
learned, to the market place. Then you will take this information, the
lessons that you learn and make them actionable and put them into the
area of marketing. In fact, I’d like to suggest that if you stand up and
share what you've learned, put it in a headline form thereafter, and then
let's the headlines, and if you send - email those headlines to me at
Donwolf.com....

Jay: No, send them to me; I’ll do it.

Don: Oh, send them to Jay. Thank you. Send them to Jay. Get them right
there and use those headlines to maximize the information that's here.
Why not? Why not make use of it in a marketable way? Thank you.

Man 6: I like that.

Don: Thank you.

Man 6: I like things that don't cost me anything. Particularly in terms of

time. You get a lot of leverage out of something where the input was very
cheap, and to paraphrase that, [unclear 14:29] slide. It’s not what you do,
it's who you be. And I think the whole strategy of pre-eminence is about
being. It's about who you decide to be and who you're customers are
going to be - your clients are going to be for you. So I like - as far as
choosing one thing here, I'd say it's the strat3egy of pre-eminence, and
it's very low cost. It’s very high leverage. And it's all about who you be.

Jay: Thanks. Speaking of which, as a gift, sometime between now and

when you leave, I’m having the first chapter - the chapter on the strategy
of pre-eminence from my book, which is a talked down, clarified, [unclear
15:10], reprint it so you can take it home. (Applause) No, no, I already
told you, but I am doing it. Go ahead.

Man 7: I’m just going to add to what Alan Coleman said about the 'Got a
minutes.' That is a really profound strategy, because almost every
company in this room manages by 'got a minute' meetings, but I want to
add that that doesn’t work to say, 'Oh you can't meet with me,' unless
you're having those weekly meetings, where you’re moving the company
forward, so it’s sort of just - stretch it out a little better is that, have those
weekly meetings like - most of my time management stuff came from
working for CEO's of billion dollar company's, and you don’t just call up a
guy who runs an $18 billion company and say, 'Hey, you got a minute?'
You could call his secretary, you get on his calendar, you're well organized,
you know what you want to talk about. You make every second count, and
if you treat yourself like that, you'll make every second count, and you'll
get twice as much done in the same day that you work now. I've already
told you; you're not going to have to work 10 times harder. It's just about
working ten times smarter.
Jay: Good. Unfortunately - so here's the deal. I got a couple of comments
real quick. Number one; Troy [unclear 16:23] is going to be talking
tomorrow. He's going to have real - are you here Troy? What’s the title?
Yeah, the title you’re going to give me? How to know your clients better
than they know themselves. And if you want to come to it; it's at 7:15;
he's got a personality assessment you should take of yourself, which he'll
hand out, and it'll be very useful, so get it on the way out.

Number two; if you have a temporary name tag, talk to Tanya or Debbie.
Number three; a lot of people said I don't want to you, and they haven't
talked to Chet. Chet's here representing my interest and his interest; if
you want to talk to him, he'll be around, because I have a dinner I’ve got
to go to. And talk to him if you're large enough; if you got interesting
enough stuff. And then what are we doing when we come back, Rick,
because I don’t have the schedule? [Inaudible 17:12]

Alan is going to do a really killer session on rethinking inside the box. I'm
going to do some imposters. Then we're going to do Dave Wagonford, and
Mac said if you're up for it - I got to find him if he's still up for it - he'd
come back at 11 or 10:30 and do another section, and we'll see what
we're going to do with some other people. Anyhow, anything else I
missed? Okay, one thing. Dinner - I want each one of you - you're
obligated - you had some incredible insight today didn’t you? At least one?
Figure out what that one insight is , the action - you better share it with
everyone around your table, and if you're - an hour and a quarter for
dinner. Be back please. Thanks everybody. You guys were great on the
panel. (Applause) Get over there quick. Thanks guys. Be back at 10:15.

Jay Abraham Mastermind Marketing 22

Jay: Ahem. Okay. (Whistles) How was the dinner? I’m - meals away. How
was dinner? Did everyone share insights? Good deal. We got a couple
more rounds for tight, and I hope you have energy because I want you to -
but before we start, I got a couple of things I want to go over. The first one
is I have very - everyone who’s gone to my programs knows that basically
I give away the store; I got nothing to sell. I don’t want to sell. I look for
clients, a little bit - joint ventures, as I said. I’m going to do barter later,
maybe you guys are a car dealer; I’ll trade you for a car. You got a hot
sports car, I'll trade you for that, because I like stuff like that. But I got
very little to sell.

But I got a chance for you to be a guinea pig on something, and I’m going
to tell you about it, I'm going to tell you why I’m doing it, I’m going to tell
you why you might want to do, I’m going to tell you why we’re doing it
and then I want you to think about it. You met Marshall Thurber, who's like
the brain incarnate. You met Edwin, who’s got this massively successful
company. Well, they started this business called Ed Edge, and Ed Edge is
what Marshal and Edwin do, and they find - they read 40 books a month,
and they find the most important book and then Marshall analyzes it, and
then Edwin and Marshall - and Edwin's wife get on the phone with the
actual author, and they interview the begollies out of him or her for 90
minutes, and then they turn it into a CD and they send it to all the people.

I started reading them and I just got blown away at how much better it
was than a typical stupid summary, which you paid a - somebody $30,000
to do and it was rally superficial; because Marshall's got this incredible
discriminating ability to analyze and that's why I persuaded them to give
you, basically, 39 issues of them - the written analysis; which is what the
CD-ROM is, but I said, 'You're missing the boat.' And the reason that they
did it - they didn't do it for money, they did it because it gives them a
chance to pick the minds of some of the greatest people in deep - not off-
colour but off site type, where they can talk to them about very probing
things and ask them penetrating questions for two hours and get
incredibly - like, I was on the phone with the guy who do the Deviance
Advantage, and what was the other one we did, Marshall? Where are you?

[Unclear 2:32]. and I just - I find that it's stimulating me. So I love
interviewing people, so I’ve become part of the interviewing process. They
do it just because it's a pulse for them; they have direct access to the
source, for hours, and I persuaded them that it would be so much more
dimensional, if after you got the book - basically, their motto is, 'You got
the book.'

Then you got the analysis, then you got the interview on CD with the
author, and you also got the analysis on CD, so you had it multi-modality;
and I said, 'But there's one more dimension that's all important, from my
vantage point, and that's what’s the action co-efficient?' And I said, 'If you
give me these analysis to give to people, I'll do just 12,' and we only
ended up with 5 because of - you got all 39 in your thing; but we did only
five of them, because the printing constraints at the last minute. But I
said, 'You'll see that if 650 read the analysis, you'll get 600 different
insights,' not that any one of them is bad, but combining it - it's going to
be fabulous. And I said, 'Why don't you take it to another dimension? Let's
- I'll get involved, I’ll help market it, but let's have an additional concept
where once a month, after they've gotten the book, after they've gotten
the analysis, after they've listened to a probing, penetrating interview for
90 minutes or so with the actual author; then let’s have a 90 minute
conference call where we'll pick out actual members, and we'll take the
most universal situations and the most unique - and we'll talk about
applications, and we'll have reading room, and dialogue, and we'll also
have everybody that has a business they want worked on; put it online
and let all the people contribute perspectives.'

And I got very excited about that because frankly, we want to grow from
it. Not very profitable, but we're going to do it. Basically it's going to be,
you get the book every month, you get the analysis of the book, you get
the interview with the author on CD, you get the analysis on CD, and then
I’m going to do with Marshall and Edwin and his wife, a really killer 90
minute group conference call with all the subscriber members; where we
do hot seats and the like. It's going to be $75 a month, and we're going to
do - if you want to be a guinea pig and you want to try it for three months,
we'll let you try it and if it doesn't have value, you can cancel and send it
back, and you can have your money back. You don't have to do it; we're
going to take it in the outside market. We're doing it - not to make money.
We'll probably get two, three thousand subscribers from it, but it's going
to be an intimate group. We're doing it because we want: number one, to
pick the minds of the authors. Number two: to get - I want - I do this kind
of interactions; because I want to see the dynamics, I want…(audio
missing)

You can do it or not. We don't want you to sign up tonight; we want you to
think about it. But if you want to do it, let us know about it tomorrow,
because I got to set up some times for the call. Marshall, you got anything
you want to say? Marshall? (Whistles) Marshall. When he's brilliant - the
one thing is he's not as attention-deficit as I am, but it's a different kind.
(Laughter). Smiles - now he's smiling. Is there anything you want to say?
And we're not trying to sell you - we’re just trying to invite you to be a
guinea pig for 90 days and help us perfect it, because once we have some
testimonials and stuff, we're going to take it to the outside market at a
higher price.

But no-one's ever done this. They only have a superficial single analysis
that somebody who doesn't have a clue about business, and isn’t on the
front lines of capitalism, does; and it's tepid. Just show them what you do.
Tell them what you do.

Marshall: I need a mike.

Jay: They didn't know you were going to do this. Where’s a mike? And I'm
just excited about interacting with people, so I just get hot about the
dynamic of all the different perspectives. Let me do it. Yeah, but that
doesn’t mean - I can't turn my computer on. Go ahead.
Marshall: [Inaudible 1:11] ...to an author? Okay, so that's what this is
about, originally.

Jay: It's incredible.

Marshall: And so the idea behind it, what Jay was saying, 'Listen, why
don't we just...'

Jay: Stop a minute. Why did you and Edwin decide to do this? To make a
lot of money?

Marshall: No, there's...

Jay: there's no money in it.

Marshall: No. I’ve been doing this for 20 years with my clients, and I just
send out the books. I sent out the book with a summary, and I sent out eh
summary without the book, because I didn't ethically - didn't feel it was
appropriate. I had over 60 people I had every month getting these books,
Edwin says 'Why don't we make this a business?' And I said, 'Well...' and
he said, 'Because...' So we did. Even though the money isn't really there,
we just did it because how would you like to be in front of a thousand
executives every month?

Jay: Marshall has a thousand Fortune - one thousand executives, and he

sends it to them, and it's really neat. But - go ahead.

Marshall: And so basically what happened is then we call up the author

and say, 'We've got a thousand top executives across the country who this
book is going to, along with the analysis. We were wondering if you would
be willing to answer a few questions about your book?'

Jay: How many said no?

Marshall: No one said no. (Laughter)

Jay: And I listened to them - it's killer. I mean, we were on it for two hours
and the guy apologized for having to go back to Harvard to a meeting,
because he wanted to be on it with us longer. [Unclear 2:20]

Marshall: Right, and so the whole idea - if you look in there, there’s a
little flow chart. Since I've been with Dr. Deming, it's hard to do things
without a flow chart. So if you've got your little sheet there, real quickly
look inside and you'll see how this goes together. Our idea was, we'll send
it to you, the interview and all the stuff, and if it looks like it resonates
with you as a person and you'd like to have your company featured, you'll
submit a little - something to us that you'd like to be part of it.
Jay: To be a case study.

Marshall: You’ll be a live case study, and Jay said we'll take the one that
has the most universal appeal, and a couple of you that are way out on
uniqueness, and then we'll make three cases and we will then interview
you while everyone is listening. They'll get the case material up front.
Now, if you don't get selected as a case study, and you want to be, you'll
go online and you'll be available for peer review, and also we'll look at it
too.

Jay: Let me interpret. What he's saying is simple. What he's saying is
we're going to basically do big time what we tried to do at the mike, and
what we're going to do also is, for those people we don’t choose, you're
going to have all the other subscribers and member have a chance to give
you all their advice continuously, online. We frankly - we're less than after
the insights, do you get this? We want the insights. We want enlightened
people to give us the insights, because they're worth a fortune to us if we
act on them. Go ahead.

Marshall: So ultimately the idea was you get a chance to get as close as
you can to their book and have it practically applied, with some follow-up,
hopefully, and then we’ll be able to see how effective it is. Because what's
the value of one idea implemented?

Jay: Implemented; key.

Marshall: Implemented.

Jay: But that's the whole key. The key is not how great the book is. The
key is me and they, but probably me more, in the beginning, on the
phone, saying 'Okay, you read it. What's the action co-efficient? What are
you going to do? What do you think it means to you? What’s the big
insight?' And taking it to a dimension that no-body does. And then us
being able to ask the author questions to die for. I mean, we ask some
good questions, didn’t we.

Marshall: Absolutely, so if you want to look and see what you'd get in
something like this here: As the future captures you, you get the
summary, and you'll see the CDs are here.

Jay: And Marshall just asks away at the authors, and they all say, 'Sure,
sure, sure, sure, sure.' Yes?

[Inaudible comment from audience member 4:26] We're going to start the
calls after we start the service. (Laughter)

Marshall: A month....
Jay: No, it’ll be monthly; every month. But a month after you get the stuff.
[Inaudible comment from audience member] Oh, that's what I said. I’ve
got to find out how many of you guys - if there's enough here I'll do
special calls with you guys. It'll be - it doesn't matter, because if you're not
on it, you'll get the tape and the CD-ROM.

Marshall: You'll get the tape each month afterwards, if you're on...

Jay: But it's going to be the most - you’ll tell us, because if enough people
want to do it, I’ll take a vote on - like I have everything else I do, and say,
'Okay, what is the most of you - the most available,' and we'll try to be the
most accommodating to the maximum number of you. It might be an
evening, it might be an afternoon, it might be a weekday; I don't know.
But we're pretty flexible to the consensus of th3e masses. I don't know
yet. We're just basically - they got this service they do just for the heck of
it; they don't make a lot of money on it; they just do it, and Marshall does
it for his own intellectual well-being, and also to really blow the minds of
his clients; that he goes through 40 books to find one and then he's not
been turned down by an author and he asks more penetrating questions,
and it's really amazing. And I said, 'That's cool, but the ultimate is taking it
to action. Is having a bunch of people show you what different things they
got out of it and then forcing them to say how and what they’ll do to apply
it and having them help each other

Jay Abraham Mastermind Marketing 23

Jay: I would suggest you consider thinking about it a little. I know it's late
now, but I don't sense a lot of passion because Alan is basically very
analytical and scientific in saying “Hey guys, here's how you make a lot of
money easily and safely right in your own backyard,” I think, isn't it?

Speaker: And we'll be back.

Jay: And we'll be back again. Thanks a lot. Thanks Alan. Yes sir.

(Audience applause)

Speaker: Given the chance, one thing I would like to actually validate.

Jay: What?

Speaker: I'd like to validate what Alan does. I've listened to for the last
12 years...

Jay: And it has changed your life?

Speaker: Absolutely, but what Alan does what we've been doing for the
last three years.

Jay: Does it work?

Speaker: Yeah, phenomenally, it has allowed us to create a structure to

now do this layering that you discussed in terms of force multipliers.
We've been able to quantify hundreds of thousands of dollars for
individuals and millions of dollars for our company based on an
implementation program that's very similar to this, but it's kind of like
hammer and hammer. How did we get all these ideas of Jay in your
business and it's very very similar to what you've been doing and we've
been...

Jay: It does not make sense?

Speaker: Absolutely. It's a reflection of what we've (unclear 01:08)

Jay: (Unclear 01:07) final version but that's pretty, pretty close, good
thanks. Yeah, it's interesting. I was at dinner with a group of colleagues
and we were talking about the wonderment of entrepreneurs large and
small also, the challenges and that most entrepreneurs in the world and
I'm not ascribing this to you, but in might hit home, tend to be so tactical,
and they can't really appreciate things that aren't exciting or aren't instant
gratification and that's not a weakness, but that's an area of your being
that you would benefit from fortifying, stated a little bit politely, from
fortifying because I think that that's a weakness. I think it's an area that
you guys, I think that we entrepreneurs like instant gratification and
excitement. We don't always have the discrimination to seeing the long-
term. It's like Ted and I have worked a lot of his programs with large,
medium, smaller companies. Twenty million, twenty five, we tried to do
with one million and (unclear 02:07 ) see what happens we found that
they didn't have the disciple to go the distance, to stick with it period
long. We just wanted to see what would happen. We did like twenty of
them at a time in group and we were tragically sad because over the long
(unclear 02:19 ) engineer the kind of growth to the higher level you need
and you've got to decide if just trying to live past pay day or your trying to
engineer the kind of growth levels that will become sustaining and
systematic and I'm not trying to be, I don't want to castigate you or
reprimand you but really respect for loving and contributing even late at
night, but I would challenge you if you're not turned on and to think about
some of the power and elegance, simplistic and seemingly understate
areas because that's where the real wealth comes from most often. Okay,
David where are you?
David: Right here.

Jay: Okay, I need...I'm sorry, where did you come from? You just appeared
out of nowhere. You're smiling. You're happy about something!

Lady: I'm so excited! Is that an (unclear 03:07) list? Is that enough for us
to get excited?

Jay: Yeah.

Lady: Da! That's the list. It's the new name.

Jay: That's good. Thank you. Okay. I need one to two minutes. Stand up
for two minutes because I've got something so intellectually stimulating,
but we need some music for two minutes. Just give us a little energy
here, something fast for two minutes and then turn it off. Give us a little
energy. Two minutes and then turn it off and David, come up here. We're
going to learn about barter. We're going to learn about innovative
thinking, we're going to break our paradigms. We're going to blow our
minds. We're going to rock our conceptional world. Oh good!

(Unclear 00:00) have fun; it's going to be cool. Fun, fun, fun. Okay, so it's
1970 something. What would it be?

David: 73.

Jay: 73. I'm this very, very ambitious, very fanatic entrepreneur kid who
has had a succession of relationships with entrepreneurs who wouldn't
give me a salary but would give me a chair in the corner of their office and
a chance to do stuff strictly on performance and I could either eat or
starve based on my performance and interestingly I ended up in a place
called Holiday Magazine which rolled by the Saturday evening pros Curtis
publishing, remember that?

David: Yes I do.

Jay: So I go in there looking for an opportunity, I'll do anything because

I'm hungry and they had traded for the most eclectic array of items, didn't
they? They were like five or six hundred thousand dollar worth of travel to
weird places nobody wanted to go or airline tickets to one location that
you can only get to on a Sunday night and some other good stuff. Captain
Mike's (unclear 01:19).

David: Terrible.

Jay: Anyhow, so wanted the cash converted and they didn't know what to
do so I got into (unclear 01:25) figuring out and somehow we connected
and you bought it...
David: Right.

Jay: And the first thing he taught me was how to buy really astutely. Dave
is a master of barter. David (unclear 01:38) has probably traded, how
many hundreds and millions of dollars have you (unclear 01:42)

David: Five or six hundred million.

Jay: Five or six hundred million with the barter. He's had his clients big
companies like...

David: Carnival Cruise line for seven years.

Jay: Carnival Cruise, who else?

David: Right. DHL.

Jay: DHL, who else?

David: Western Hotel.

Jay: Western Hotel, who else?

David: Sheraton.

Jay: Sheraton, anybody else? Chrysler, Mazda, anybody else?

David: Right, right.

Jay: Yamaha.

David: Yamaha motorcycles.

Jay: Anybody else?

David: Kawasaki.

Jay: Kawasaki, anybody else?

David: About 3000 radio and television stations.

Jay: Okay, so he's been around the block. So back at the (unclear 02:14) I
got $500,000 worth of really cool stuff and I'm going to get out 10% so I
think well god at least worth 490 or 480,000. So I call around and can't
get an offer and Dave says, yeah I'll buy it and what did you offer like 25
grand?

David: Well I overnight Jay a check for 10 cents on the dollar.

Jay: Yeah, and he said, it's always good for three days, (unclear 02:37)
good for three days and he said, show (unclear0:02:40 track2), tear it up,
send it back or whatever. And I said, they would never do this and he said,
well its okay.

David: I gave an envelope with a stamp on it. I said if they don't

want it that's my offer. Just mail it back, no hard feelings. It's really hard
to send back money.

Jay: Yeah, and that was my first education. So then I was fascinated
because he was so, he was educating me while he was negotiating with
me which was very gracious. So we fast forward. I moved to Santa
Barbara couple of years later. David trades for Peter Lawford, (unclear
03:18) it was Edward....was that it?

David: Louis (unclear 03:26)

Jay: (Unclear 03:26) and Metro Goldwyn Mayer's house on the beach and
I'm there and he's got like an acre on the sand. He's got three stories and
an elevator he traded for, he traded for furniture and he's paying the guy
in (unclear 03:35) and I'm thinking, he knows something I want to learn,
because he's having fun and he's got; he takes me to his house and he's
got in one room you know like 500 guitars and the other room he's got like
150 watches and in another room he's got certificates for all these things
and what ensued as mentor-ship of sorts, I had no money, I was a pauper.
I drive Sunday to meet him. His wife thought he was crazy to give me an
hour or two of really wonderful, wonderful mentoring and then I was
broke, he gave me a certificate for dinner for my wife and family on the
way home which is was very gracious which we appreciated and we've
stayed friends and we've stayed, I hope mutual admirers. I just think he is
the brightest most inventive mind I've ever seen and I think barter is a
metaphor for thinking non-layer whether you trade or not. I've traded-
when you bill $5000 an hour and it's $40,000 a day and it's $5000 for a
home study or $25,000 for a seat in a live main program, you can trade
pretty; I think I've done-I've been a pretty good student, don't you think?

David: I sold Jay one of his Ferrari's by the way.

Jay: Yeah he did, he did. But David traded for it. I bought it, but David
traded for it. It was a nice Ferrari. He tried to sell me a (unclear 01:12)
and I just didn't want it. What are some of the interesting things you've
traded for me?

David: Oh well, I tend to over trade sometimes.

Jay: It's a sickness, it's a sickness. We love to trade, like I said, a guy may
want to trade me a car here and I'll do more for them if they paid me cash
because I just love to trade, don't we?
David: Yeah, I'm not supposed to sell anything here but I will tell you I
have 4000 watches in my house. I can't get to the washer or the dryer.

Jay: It's because his house is full of watches.

David: They're to the ceiling. Anyone here is a watch buyer, contact

Jay.

Jay: You have any guitars. How many guitars did you have then?

David: 16,000 guitars.

Jay: When you traded for Mazda, how many Mazda did you get?

David: 1,100 Mazda.

Jay: When you did Chryslers. How many Chryslers did you get?

David: We didn't have to take possession of all the Mazda.

Jay: How many Chryslers did you trade for?

David: 1,000 Chryslers.

Jay: I mean, it's like, I mean you did DHL. How much did you trade for?

David: $6 million worth of DHL.

Jay: But David, tell me, I traded with $3 million of the radio advertising on
(unclear 0:02:10track3).

David: Right.

Jay: It was pretty good. So over the years, I've realized that barter is not
just a fun, fun and exciting sort of aside, it's a profit center. It's a way for
companies to dramatically increase their margins, to dramatically expand
their profitability to give themselves almost unlimited buying power, to be
able to tremendously grow and expand your quality of life, your business.
I thought David, it would be fun for a just a little while to sort of go
through some of the various ways. You remember, because I don't have
any of my notes. You got any?

David: Oh yeah, I have some notes.

Jay: So, what I'd like you to do is give them a little soliloquy because I'm
tired tonight and you probably, I mean poor David, I want to get your mind
exposed to so much (unclear 03:02)as far as barter fun, barter trade and
barter, my brain is tired tonight, (unclear 03:08 ) trades, who else trades,
who has ever traded for anything?
Audience: I've traded for (unclear 03:14) the doctor.

Jay: Okay, that's pretty impressive. You all should consider trade. Let me
ask you this question before, if you have any; does anybody sell a product
or service that has any margin in it? Only a few of you? Okay. So it's like
I am a car dealer (unclear 03:30) biggest Mercedes dealer they do $400
million a year, friends of mine. I was talking the other day and said, you
make a lot of money? And they said, well we make good, let's say they
make 3 to 4%. I said, well, of the remaining 97% that's payables, how
much are the kind of you know, are service type expenses. They're like
$50 million dollars. Well, I said, well, what's the margin on a Mercedes?
15%. Well if you just traded that, if you just traded Mercedes instead of
paying cash, you would be making like four times as much money, oh but
we don't trade. And I said, yeah, but maybe you should and then I said
because a Mercedes is so priced, it's better than cash, you can probably
trade two to one. We don't trade. I said you could probably even trade a
four year old lease, at the end, take it back and so you're getting all the
stuff up now you're paying for it about 10 cents on the dollar and you're
getting it almost interest free. We don't trade. We don't trade. Give him
a little quick (unclear 04:30).

David: Exactly what he said. A lot of people; trading of course

predates money. The transaction is exactly the same as money except
that you don't pay with money, it's the only difference. A trade is a sail.
It's additional business. If you make a trade deal and get something you
can use, something you need, so something instead of money.

Jay: Or something you want.

David: Or something you want.

Jay: Where you wouldn't have the money or wouldn't allow yourself to buy
it on your own.

David: The phrase due bill, how many have heard the phrase ‘due
bill’ before?

Jay: Due bill.

David: You're probably from New York.

Audience: Yes.

David: New York is where the phrase started in the 1920's during the
crash, nobody could pay the bill. The bill was due. The favor would come
around the restaurant who is now broke and say, look, the bill's due, give
me a ledger, you owe us $400. I'll eat here. That's how the due bill
started. If you go to a person who was alive during that time and use the
word due bill, he starts to shake and shiver. So we don't use that word
anymore. So New York, still to this day, totally understands trading,
barter, due bills. As you go west, they understand less, not too much here
and we have a company in Hawaii, they don't know what we're talking
about in Hawaii. The farther west you go, the less they understand. Yes
sir?

Audience: Can I give a real live example that happened to me on

Thursday?

David: Yeah, you want to go with the mike there? Trading is a way to
take your product that isn't selling, gets rid of it at full retail and advertise
the product that is selling.

Jay: Convert it some other form of product or service you need. Now
David, I'm going to modify and embellish and challenge his comments
because he lives predominately in a world of getting bigger companies
advertising. They'll trade their goods or services for advertising. That's
the easiest and the best and he'll explain it to you why, but I've helped,
just clients, not as a service provider, I've just helped clients do millions
and millions and millions of dollars by figuring out things we needed and
trading either our products or services for that or triangulating it to
somebody else who wanted what we wanted using what we got for them
to pay what they wanted and with all the debt settled, we'd save 30, 40,
50, 70% or we'd get cash we never would have had or both. Marvin you
want to talk real quick?

Marvin: Yeah, I was looking for some radio advertising in the States. I
spoke to a guy in Chicago who wasn't, didn't have any time to sell, but he
said there was a fellow who had clear channel to sell in Florida. So I
phoned him and he said he had $20,000 worth of clear channel
advertising open, open advertising, anytime I wanted on any clear
channel station in US and there are just hundreds of them and he (unclear
07:22)20,000 barter blocks. So he said, what do you have to trade. I
said, well, I'll give you 20%; I'll trade 20% of the value of the prescriptions
that I needed customers that are on barter that would buy from me. So I
got $20,000 worth of advertising and I haven't paid anything yet and if
people order the prescriptions from me, I'll still make about 20% and
I'll...using the barter.

Jay: You didn't do a trade. You really did a PI.

David: Yeah, that's called a PI, percentage inquiry.

Jay: But that's-what you did was good, because it's a contingent type of a
way to control a lot of advertising, if it doesn't work, it'll not cost you, but
it's not really a trade.

David: Right, but that's...

Jay: Really, it's one step before.

David: That's not too good for the radio station, but real good for the
buyer because, the radio station doesn't ever believe you're getting the
right count...

Jay: They won't get any money for it but they've got unsold time so it's
doesn't cost him anything. Continue on about the insights. I'm sorry.

David: Okay. One of the things about trading that over the years I've
learned is people either get it right away or they don't ever get it. The
first account I called on, I started New Orleans was a restaurant, I went to
the television station, I said, who owes you money? They said, this
restaurant owes us $4000. I said would you take $2000 for the bill? They
said, yes. So I went out to the restaurant and I said, Mr. P, you owe the
station $4000 you can't pay, he said, that's right. I said, I'll take $4000
worth of food if you'll sign these little gift certificates and I'll go pay your
bill. He looked at the gift certificate and he said, when they eat, who pays
for the meal? I said, let me start over.

(Laughter)

You owe the television station...and we went through it three times, didn't
have a clue. Didn't know what I was talking about. Six months later, the
restaurant's gone. They sued him and the roof fell in. So I almost have
tried to stop, trying to educate people, but I think almost everybody in this
room probably understands it's simpler than money and nobody looks for
the catch. What's the catch? There isn't any catch. Instead of...Mike is
here from the fortune cookie company. I traded him 1,200 fortune cookies
for a wrist watch that's he's probably wearing tonight. Are you here Mike?

Jay: Mike, where's Mike? You're wearing your wrist watch? It works still,
doesn't it?

(Laughter)

David: So, I got fortune cookies which I can use for Christmas gifts,
Mike got a wrist watch. It can benefit both parties. Also if you are a
dentist or a lawyer, you have extra hours. So you can take those extra
hours under your full rate, trade that for something you need and can use
or want. That's terrific, you've increased your business rather than
reading Time magazine, you've worked a few extra hours, you've got
something.

Jay: My mother-in-law has a $25,000 new face that a plastic surgeon did
for her because I helped him improve his business. I have a credit for
another dentist in Chicago anytime I want for $25,000 worth of cosmetic
dental service for anybody that I want. It's pretty cool thing. It's a pretty
cool thing.

David: We bought a radio station in Carmel Valley that was in trouble

and it needed a lot on engineering work. I hired an engineer in Middle of
Texas to come over and do the work which was extensive. I traded him for
two breast enlargements for his wife with a plastic surgeon in San
Francisco. She got the breasts, I got the work, he got happy!

(Laughter)

Jay: What did the plastic surgeon get, advertising?

David: The plastic surgeon was an advertiser, right. So once you get
trade like I have the watches, I've got to do something with them and...

Jay: You end up with one or two things, you either trade for products or
services you would end up using in the course of business or you trade
and you got it. You got to ultimately what’s call cash convert or you’re not
the smartest dude in the valley.

David: Right, if you take radio or television, an unsold spot evaporates

tonight. It just evaporated at midnight.

Jay: You don't use it today.

David: Every hotel room that was empty here, evaporated tonight.

Jay: Why don't you tell us a trade. I'm just going to interpret, it's like this
hotel has, let's call it 700 rooms. It's filled probably because of you guys.
Tuesday, it'll be empty, probably, don't you think?

David: Oh there is 300 empty.

Jay: There is 300 empty. Those 300 have a rack value, rack rate of, lets
call it $150 a piece. $45,000 worth of value evaporates everyday if they
don't fill it, but if they trade it, whether it's used or not, they put a time
limit on it, it's very interesting, because it really is used (unclear 12:12)
even if it's not exercise, does that make sense?

David: Right, right. One of Jay's customers who has been here a
couple of times, his best friend was a advertising manager of Microsoft
and he called me a few years ago. I don't think I've ever told you this
story.

Jay: No.

David: We spent a year trying to get Microsoft to trade and the fear of
the advertising agency was, just to give you an idea, I said, all we'll trade
is the office package, because it was expensive. I think it was $800 at
that time.

Jay: Cost him like what?

David: $2.50 cents.

Jay: So then, they're buying advertising and writing a check for cash. So
every time...

David: I was going to get all radio and television stations take the
Microsoft packages, give them to clients, use themselves...

Jay: It would have been like a 98% discount on their advertising.

David: Yeah. The fear was and the marketing director said this. He
said, ‘if Bill Gates ever finds out he can buy $800 worth of advertising for
$2.50 cents, we're finished. He won't spend any more money.’ That isn't
totally true but he never did find out. We sent emails to Boomer who is
now the president, this went on for a year.

Jay: So back to the ranch, because David is neither attention deficit, but
he's letting me guide tonight and it's been a long day. You guys, there's
like 14 or 15 really cool ways you can use barter. Do you have a list of
them?

David: Okay. One way is to get cash because if you barter for something
that; everything is salable. If you barter for something and then turn it
out to cash, there's a magazine in Arizona that trades in about every six
months. He calls us like Jay did and we buy his excess trade and it can be
hotels all over the country. It makes a couple of payrolls.

Jay: That's about a third of advertising you'll see in travel type

publications, is not been paid for, it's been traded. You know, it's like, I
just got, I have in my office, I have 10 round trip vouchers on South West.
This is funny, here is how it happened, a concessionaire from South West
gets partially paid in, South West pays in vouchers. Okay, I didn't know
that, did you?

David: No, I didn't know that.

Jay: That's pretty nice and they (unclear 0:00:40 track 4) preemptive,
they're really preemptive, so they really treat it like cash. He wanted a
$2000 home study. He called and said, I've got $2000 worth of vouchers,
you want to trade? I said, sure, a home study cost me, not this home
study, no no....

(Laughter)

He only wanted the tape. This home study cost me probably $1,000, but
the old ones only cost me 30, 40, the one in 95 because I really didn't
have a lot of bonus. I just had the tapes. I said, sure send you the tapes.
We spent $30 sending the tapes. He got a $2,000 set, because that's
what I charged him for, he sent me the vouchers, I'm sitting in my office,
Terry are you here? I got $2,000 worth of South West vouchers, can use
anytime, they're pre-emptible. I don't really want them because I don't
like to fly South West, I don't like to stand in line, but...

David: I'll buy them from you.

Jay: David will buy them from me at some.....what's the discount?

David: Sold, I'm going to give you a watch!

(Laughter)

Jay: Speaking of which, where are my dive watches? That's good. But
anyhow, the point is, it's really fun, go ahead.

David: The trade clubs is another way you can trade. How many in
here are in a trade club or have been in a trade club? Yeah, we've got
quite a few here. There are several big ones and they're very healthy
right now. As business gets slow, our business gets good and as the
economy comes down, we look to trade with the company that's in trouble
but not going under.

Jay: And who have enough ethics and integrity, they'll treat the trade like
cash.

David: Right. There's a club called (unclear 02:16) which is in Chicago,

Long Island and San Francisco. They've got 30,000 members, when you're
in that club, you can use your credit at any of those places. There's a club
in Florida called ‘The Exchange.’ It's on its 30th year. There is 2500
members in Orlando and Tampa. There are 45 hotels in Orlando, 60
restaurants. There's a club in Chicago that's got at least 2 or 3 thousand
members. They have so many restaurants, that they'll say what hotel are
you in, well there's one right across the street, and they'll say, what will
you have?
Jay: Who has my book? Who has my copy of my book? Somebody has
signed one for it, who's got it right here with them? Has anybody got my
book with them here? There was a gentleman who let me sign his book,
he might have gone to bed, but, anybody got it here? No? Because I
have all the list of all the barter ways, do you have it here? You've got it?
Who's got it? We've got a list of all the different ways you can trade. You
have got it on you?

David: I've got it somewhere here. ITEX is another big club which Jay has
been prominent in. Business Exchange International is probably the
oldest club. It's headquartered in Burbank. It's all over the country, all
over the world in fact, but these clubs are good as long as you don't let
them get too far ahead of you. Another way to trade is called a closed
end trade, where you want a carpet in your house and he wants a new set
of dentures and it’s closed down. Nobody owes anybody at the end. It's
like I sell you a service and you write me a check. Closed down. You
shouldn't trade for anything that you don't really need. Don’t' trade just
to be trading. I have that problem.

(Laughter)

Jay: It's like a sickness (unclear 04:05) it’s like alcoholism.

David: I'm a selloholic. I don't think I ever told you this one either. A
selloholic, I have to have-that's why I traded for some fortune cookies. We
were told don't sell anything. I didn't sell anything; I traded a watch for
some fortune cookies. I feel good now, because I made the transaction
today. I got the fortune cookies.

Jay: 24 hours worth of relief.

David: Right. I'm relieved so I'm thinking about probably others here who
are selloholics. I'm thinking about starting a club, a 12 step club where
you'll be assigned a buddy and when you have this desire to sell
something, he'll call you up and pretend to buy no matter where you are.

(Laughter)

Jay: So, do you have the 12 ways or the 14 ways, do have the list on you,
because, you guys have to understand, barter can do so many neat things
for you besides just improving your margins, reducing your expenses,
giving you more clients. You've got the book?

Audience: Yeah, I just want to ask a question because there's a company

that wants to do business with me and the fee is $10,000. They say we
have $2,500; will you take $7,500 in our unique printing? I'm inclined to
look for ways to do it but I remember listening to the tapes, and Jay says
all I got was Christmas and I got these bill boards and you know, I've read
that over and over again, my mind goes tilt.

Jay: What's the question?

Audience: My question is give me a few suggestions of how I can really

creatively triangulate that credit.

Jay: Can I make a suggestion first? It's late and we've got a tough day
ahead...let's try to get...I want him to see at least 10 of these ways to use
barter first, because the one is basically to reduce your cost of payables,
your expenses, right?

David: Or you can use it to pay a bill. You can get your lawyer to take
some barter. We have some lawyer on barter. You can use it to pay the
bills that you would have normally. In Tampa, we have three radio
stations; we bartered our phone bill completely with a new phone
company out of Dallas. The bartered is a T1 line, internet and
everything...

Jay: And they get advertising?

David: With Verizon, the phone company, we bartered $165,000 worth of

yellow pages ad. I have a full page yellow page ad, 50 yellow pages all
throughout West Florida. This is promotion. Barter is a way to promote
your business. Barter can be a way to get anything you need if you’re in a
large trade club; it's like the yellow pages. You can look down the list and
here are the dentists, here are the plumbers, here are the electricians,
here are the carpet dealers, you call up and say I'm a member of The
Exchange and you trade. The members pay approximately 10% cash for
each month based on what they spend. You eat $100 dinner; you pay $10
at the end of the month. You can use it to pay employees. You can have
employees work partly on barter. Question I would have for you, is you
have a $10,000 service that you're going to provide?

Jay: What does it cost him to...

David: What does it cost you to do that?

Audience: Just thought and time.

David: Well you've got to take the $2,500 and the printing even if you
don't want the printing.

Audience: Just give me some suggestions. What to do with the $7500 of

printing.
David: You can put it into a trade club and draw on anything they got.
Trade clubs can always use more printing. Or go to your favorite
restaurant, give them the printing and get some $7500 in food.

Audience: Okay we have a guy here that's...and it’s Canadian Dollars

which go a long way.

David: Then I wouldn't deal with them at all.

(Laughter)

Audience: You have a Rolex watch?

David: Yes sir, the story? Yeah. I haven't paid for anything that I've
brought with me tonight. I got this watch 22 years ago in Honolulu. I
gave him $4,400 worth of KITV television time.

Jay: You traded time?

David: To a pawn shop. Pawn shop gave me the watch; I gave him
$4,400 worth of TV time that he used to advertise his pawn shop.

Jay: Go ahead; do you want to ask a question?

Audience: The other party, the TV people, what did they get?

David: I gave them bumper stickers and two cars. Two leased cars.

Jay: Lease cars.

David: I gave the station that carries out (unclear 08:20), I gave
$65,000 pairs of sunglasses and we put (unclear 08:25) letters on the face
of the sunglasses.

Jay: Nobody's got a copy of my book? Nobody's got in their possession of

it right now, here at the table a copy of my barter book? I mean my book
on how to get everything you can? Somebody brought it up and let me
sign, nobody? Okay. Next time I'll do it. We have a list. So one of them is
how do you grow more clients?

David: Well you can grow more clients because some clients can
barter with you but they can't give you cash. We obviously, when we
have a sale staff that goes out and tries to sell advertising and they don't
go out and try to barter but (unclear 09:03) I'm really short of money and
it's something we can use, we take it. I had an old lion person, we bought
a radio station at Monterey, California where we traded the down payment
of furniture for the owner's lavish condo in Mexico and the old line
manager didn't understand trade. I kept him on and I said, well we're not
looking for trade, but if you bump into somebody that asks you if you can
trade, and you know it's something we can use, something good, take it.
Otherwise, if you think it might not be any good, call me.

So I'm in New York and I got a call from him and he says, ‘I met a client
and he wants to trade and I don't know if what he's going to give us is any
good.’ And I say, ‘what is it?’ He said, ‘it's a supermarket.’

(Laughter)

And I said...’anything on the store.’ So when I came back, I said sign them
up. He signed them up for a couple thousand dollars. I came back and I
said now, sell it. He said, to who? I said, you've got to find somebody that
eats! So I said, go get your check book and come back in. He came back
with a check book. I said; write a check KNRY radio $1,000. I said, you
now own $2,000 worth of food. Take it home to your wife. You're a hero. I
thought, now he's got it. Two months later, he's out making calls again
and I get another call because he has a trade that might not be any good
and he says, ‘I have a guy that wants to trade a lot. He wants to buy our
sports programming, but he doesn't want to give us money. He wants to
give us trade.’ I said, what does he sell? He said Shell gasoline. I said,
okay, of course, you know gasoline. I said, ‘sell the gasoline for 25 cents a
gallon less than he sells it to people we know.’ We don't have advertised
it, but we call our clients and first he said, who would I sell gasoline to? I
said there's got to be somebody that's got a car.

(Laughter)

He never to this date doesn't understand.

Jay: Tell about the origins of home shopping.

David: Oh, Bud Paxson of home shopping who owns Paxson ad TV, he
started the home shopping network on a small radio station.

Jay: It was a friend of yours?

David: I know him for 35 years in fact, I traded him a motor home
when he had a little radio station in Sarasota and owed me $4,000 and he
could only $400 a month, but he would put me in a lavish beach front
resort the weekend the time it was to pay the $400. So I would drive to
Sarasota 12 times and get my $400 and bought a $1,000 stay in there in
the lavish resort. He went out of business in Sarasota, turned off the radio
station. He bought a little radio station in Dunedin, Florida which is near
Clear Water, was failing with that, couldn't make the payroll, people were
screaming at him and he went out and he traded 400 electric can openers
with a manufacturer and then at the trunk of his car, and he takes them
down to a hardware stores, sells them, gets the money, goes back and
makes the payroll, the station is saved now, temporarily.

So at that time, I had Carnival Cruise. So he said, let me advertise

Carnival Cruise like crazy and I'll sell these cruises on the air. So he'd go
on the air and say, I have a $500 cruise, who will give me $200. Some
guy would say I will give you 200; he'd give him 24 hours to come down to
the station with the money. In the meantime, a travel agent would hear it,
call Carnival and say, have you gone mad? They would call me and say,
who is this idiot Bud Paxson giving away our cruises? So I'd have to pull
away from him, but he started auctioning stuff on the radio. Small radio
station, survived, found a money man Roy Spare and said let's try it on
cable television. He tried it on one channel of cable and it worked, they
were making money but everybody said, well that still isn't any good
because there's a lot of old people in Florida, that's the only reason it's
working.

Spare bought enough link and the rest is history. There are people in
Clear Water that have put in $10,000 that turned that into a $2 million
ocean front house. His stock went up faster than Xerox. Something like
unsplit, something like 10 to 400 dollars in a period of year and a half. He
sold out, walked out with $250 million instead of buying radio stations, he
bought 46 radio stations in Florida for $150 million and then here came
Clear channel. You all know who Clear channel is. They have 20% of all
the stations in the country now. They have 1800 stations and they're
about to get more and they said, how much do you want for these
stations; you've got a 156 million at? He added $500 million to the
asking price, he'd only had them one year and they wrote him a check.
He lives in a house in Palm Beach that he said is so big, he has rooms that
he only visits on Christmas.

(Laughter)

Jay: Tell them about your experience with Chrysler, with Mazda, with DHL.

David: Chrysler Corporation, the last year that Chrysler built the
incredibly long, oh, this is the book.

Jay: It's got all your list of things you need.

David: Okay.

Jay: You can go through them.

David: Chrysler Corporation had 10,000 cars that they couldn't sell
and they built them anyway to keep the factory going. This was in the
early 70's and a friend of mine in New York, John Small called them during
their Christmas party and the marketing director came out and said, do
you want to trade? The man's looking at 10,000 cars on this field covered
with snow, starting to rust, he said, do I want to trade? How fast can you
get here? He flew out there and made the trade with Chrysler. So we
traded the imperials which was car about as long as a Grey hound bus.

Jay: That is terrible.

David: Yeah, when people, they just weren't buying them. They got
about 7 or 8 miles to a gallon. But the radio station or the television
station or the newspaper didn't care because it was going to be a prize.
They are going to give away a new Chrysler. They didn't care who was
orange and as long as it was, it didn't matter. We traded 1,100 cars in six
weeks, but even then, the ad agency tricked it up a little bit by saying we
don't want a TV station unless they'll take 35 cars. So I flew out to Hawaii.
The rest of the country was (unclear 01:00) Hawaii, I flew to Hawaii and I
went. There were two television stations that I could give 35 cars to. I
went to the first one which was the NBC station owned by a father and
son. I said, I'm here with 35 cars. I'm going to give you the pink slips
today, that's like $500,000 worth of cars, even at those prices, and he
said, I couldn't use 35 cars and I said why not, and he said, well it's just
me and my son, I could use 2 cars.

(Laughter)

Now these are cars that he's going to get free. If I was going to give you
35 cars...

Jay: Its unsold advertising.

David: Couldn't you figure out something to do with them? So I

walked out and I was also told in a little station (unclear 01:40) go out
there and give the Chinese owner two cars, because the dealer wanted
them. So I went out, I had all the brochures. I'm here to give you two cars
and the guy fell asleep in his chair. This was ten in the morning. So now
I've made two calls in Hawaii, the one guy wont' take-I can't give him
away, the other guy falls asleep. So I go to channel 9 which is Cecil Heftel
who now owns a huge two big stations here in LA, but at that time he
owned channel 9 and out there I'm talking to the girl out front and I hear
him hear cars, he says, cars, he comes running out. How many cars can I
have? I said 35. He said, can I have milk trucks?

(Laughter)
I said, why do you want milk trucks? He says I own the foremost dairy. I
said let me call Chrysler. I called the marketing director of Chrysler, can
he have milk trucks? Yeah I don't care, give him milk trucks.

(Laughter)

He calls a limo to take me back to the hotel. My commission was 20% of

the cars. So now I own 7 cars which I was selling, $10,000 for $6000. Not
hard, anybody I called bought one. So I'm sitting back at my trade out at
the Royal Wine Hotel, and I said, my god, I just made $42,000 in 15
minutes. Just had to sell these cars. We sold 1,100 cars in six weeks.

Jay: Tell them about Mazda.

David: Mazda, I'm driving along in Long Beach when I moved out here
and I see all these Mazdas, Mazda had a car called the Cosmo which had
the first wankel engine. It was awful. It leaked oil, I got 7 miles to a
gallon. No dealer would touch it, so the field is full of these wankel
engines, it didn't work. Mazda had a big office out here and I went to the
Asians at the office and I showed them the contracts with Chrysler, look
what we did, we can do the same thing for you. And so he said come
back Monday. So I came back Monday and they had a consensus meeting
and he said, we like it but we can't do it. He said if we trade the car, I
used the word trade, mistake, if we trade these cars, we'll be losing face
with Toyota and Nissan which was then called (unclear 04:04) and so I
said, oh, lost another one. I'm starting to drive back, and I thought, wait a
minute, I got it. I turned around and went back. They thought I'd lost my
sun glasses, I'm back so fast. I said forget the trade, I want to buy these
cars. Buy? They've been trying to sell them for two years. I said but I
want to pay you with radio or television time. Oh that's okay.

(Laughter)

We made the deal.

Jay: What about DHL?

David: DHL was trying to.

Audience: What did you do with the Mazda?

David: We gave them to stations and the ones we ended up with, we

sold. My lawyer drove a Mazda, my accountant drove a Mazda.

(Laughter)

Jay: (Unclear 04:46) Two things. What business are you in?
Audience: Medical (unclear 04:52)

Jay: If you had employees and they wanted a raise, I'll tell you what, I
won't give you a raise, but I'll give you a brand new Mazda. Or if you had,
if it was ethical, and you said okay if you buy $100,000 supplies, you get a
brand new Mazda, there is all kinds of inventive way to use it.

David: Stations use it that way too. In addition to giving it away,

they'll go to Budweiser and say, give us a 52 week contract on the
dodgers and we'll throw in a Mazda and give away.

Jay: Which you can give away on the air.

David: And they get the order instead of the other stations. So it's a tie
breaker.

Jay: So talk about DHL.

David: Oh DHL had 70% of the international market and only 1 or 2%

of the local market and they needed money to buy a television schedule
and they were short of money. So I negotiated with them that I would buy
them $2.5 million worth of television time and I get $5 million worth of
DHL and I couldn't sell it to any accounts that they had, but I said give me
the 100 accounts that federal has that piss you off and they gave me that
list and up at the top was 3M company and Dean Witter and we sold $650
worth to Dean Witter. We sold all together $5.8 million in trade. I don't
know if we made any money. This deal was so complicated, I'm not sure
and I didn't want to know. If you've ever made a deal, it was so complex.
You don't really want to know. It's like when you buy a car, you don't want
to know what the neighbor paid.

Jay: Or what you’re real (unclear 01:03) cost you.

David: Yeah, somethings you don't want to figure out.

Jay: But, when it was done, the point was after the trade was done, most
of the accounts that started on trade ended up...

David: Dean Witter is out to this day, because it's really complicated
for a big account. They had to give them a good deal but there's
tremendous price cutting in that business which I didn't know going into it.
So my trade wasn't worth as much as I thought because of the way they
cut prices. They were selling a $15, federal was selling a $15 letter to 3M
company for $5 and I couldn't get down to that.

Audience: What about taxes?

David: Trade transactions exactly the same. It's a transaction. As long as
you don't use the trade personally, it's not taxable, it's expense. If you
carpet your business, that's your capital expense.

Jay: (unclear 01:54) when I do things (unclear 01:57) I file a barter 1099.

David: Right.

Jay: I value it at what it would be if I were going to sell it.

David: You don't have to evaluate 100%.

Audience: Does it trigger (unclear 02:05).

Jay: (unclear 02:05) auction or something.

David: Yeah like a quarter.

Jay: So I do value, because I wouldn't pay that retail price.

Audience: Does it trigger ISS audits?

Jay: Pardon?

Audience: Does it trigger ISS auidts?

Jay: I'm the only client in my (unclear 02:08) that files. I don't want to
ever have anything that I want to do with document because I don't want
my...

David: We turn everything to cash. So and then we claim the cash.

Ideally so much trade, I'm on a cash basis.

Jay: But barter exchange, they issue 1099 and you've got to deal with it
whether you do it corporately or use it individually. It's not a way to avoid
taxes; it's a way to get leverage. Wouldn't you agree?

David: Yeah, about ten years ago, the IRS said hey these trade clubs
is a great place to find tax evasion and they went out and the trade clubs
got all nervous and for every dollar they collected from some poor doctor
that had 13 dinners, it cost him like 100. Cost him 100 to get a dollar. So
they don't do that anymore, because you're talking, in most cases, real
small transactions.

Audience: Is it in your literature that you can recommend that talks

about the intricacies of that?

David: Jay's books (unclear 03:15).

Jay: (Unclear 03:15) because my publisher says that I get a dollar a book
from-but there's a chapter which in the book explains it really neat and we
actually; would you do that one hour tape we did for you. That was pretty
good, didn't you think?

David: I've heard the long one. I haven't heard the one...

Jay: You never got the other one?

David: No, no I never got that.

Jay: I need to get my tank, my dive watches.

David: I don't have dive watches. I went through every watch.

Jay: Alright.

David: He wants dive watches. If you want a dive watch you have to
pay for the seminar.

Audience: I do business with ITEX. How would that be different than the
way you do business?

Jay: Well most of it, David does, one-to-one. I'm on the board of directors
of ITEX, I understand it very well and where are you at?

Audience: I mean, there's no ledger or anything that says...

David: I don't deal with the general public. I deal with people that
know me but I don't...

Jay: David deals direct. He doesn't (unclear 04:10)

David: I call up to buy stuff and I call up to sell stuff to people that I
basically people that I know.

Jay: David will go to a radio station or to a chain and he will either trade
for something they want and then get advertising and sell it at a discount
to an advertising station …

David: Right, we call it a time bank. We bank space or we bank time,

which means we own time on that station.

Jay: Why don’t you explained …

Audience: But you’ve got to be holding some credits and things sort of
out here, but you’re just not doing anything officially.

David: Yes, yes right.

Jay: David speculates. You don’t want to be in David’s … David likes
being in his position. You don’t want to..

David: Yeah, it’s very negative cash flow business.

Jay: David’s got all kinds of stuff, I’ve known him when he (unclear 00:25)
he couldn’t get inside because he was holding the inventory, right?

Audience: Carnival's an interesting story.

David: I’m down to two rooms now. One time when I had a little
house, I had 40 motorcycles in the house, 20 in the living room, 20 in the
garage. Yamaha.

Jay: He was sitting with a Ferrari that I took from him, and what did you
have, you traded it for a lot of cars.

David: Yeah, a lot of cars. And we traded with a lot of airlines that went
out of business; we got burned on each one. So, we traded with World
Airways; I said World will always be there; gone! I’m glad I didn’t have
United. The first thing that is knocked out in a bankruptcy is the trade
credits. So, you want to be careful that you want either get what you
want when you make the trade, or be sure you’re dealing with a company
that’s going to survive. If they go down, you’ve already delivered and
you’re out.

Jay: Or get yours upfront.

David: Yeah, try to get it simultaneously.

Jay: So, tell them about Carnival, because that’s an interesting story.

David: Carnival started with one little ship; it was called the Empress
of Canada, and it was a really beat up awful ship. When the ship first
came to Miami it was immediately attached by the Sheriff because they
hadn’t paid some of the bills. And it didn’t even sail the first week. The
second week it sailed out of Miami and hit a sand bar; it was on the sand
bar for three days, all bent up, didn’t have the money to fix the bottom for
a year. It wasn’t going to sink, but it was bent, but it was the best that
ever happened to him. Television came out; cameras; they opened the
bar, but he is drunk on the back of the ship stuck on the sand bar, while
they’re trying to rip it off there. Carnival is now one the largest cruise ship
in the world. Until it was in business, seven years, it never wrote a check
for advertising. We were in a hundred market 52 weeks a year using
empty cabins, but we created a monster. The ship sold out and we
couldn’t (unclear 02:18) out of the trade, we had people waiting two years
to get on the boat. People would say I’ll take any sailing in the next two
years, and I’d say we don’t have any.

Jay: Yeah you’ve got to treat it like cash or it doesn’t work.

David: Right. Carnival did not treat it like cash.

Jay: One of the most interesting guys who ever used to trade was Tanner I
think, because he used cash as trade.

David: Yeah, Bill Tanner, who’s kind of the father of our business,
who did a little time for tax evasion. But he got out of prison, and he now
owns the second largest bank in Memphis, which used to belong to Jake
Butcher, who is doing a lot of time in prison, who promoted the world’s
fair. Tanner would give stations American Express cards. While you can
imagine if you had a station, here’s an American Express card, give us 2-
to-1, 3-to-1, whatever, charge what you want. In those days they didn’t
have the computers that could immediately stop a card. So, one station
in North Carolina overdid the card in one month by a $100,000. So now,
he’s got to pay the bill. He had all these cards on one account. So he’d
go out, and end up practically owning the towers. I mean he’d go there
and the guy would sign off enough time forever. But he was the largest
American Express account for 10 years.

Jay: He’s got more stories that will just delight you, but I wanted to stretch
your mind to positives. Let me go through a few of these concepts, and
we’ll see if there is a couple of questions you might have, and we’ll tell a
couple of more stories, and we’ll close for the evening. I just lost...okay,
here we go. So okay, number one, you can be a middle person. You can
find somebody who has got something in excess, you can find somebody
who needs it, you can be in the middle and you can make more money
than both sides can.

David: Absolutely, you can get commission from both sides.

Jay: Easily, because you’ve got the vision to conceptualize the

transaction; most people don’t have the idea. Number two, you save cash
on capital expenditures. Whatever you are buying, if you’ve got
something you can trade directly, if you’ve got any kind of margin, you
were going to buy it anyhow, that margin just comes right to the bottom
line, and if your product or service is more desirable than the product or
service you are buying, you can trade to your advantage, 2-to-1, 3-to-1.

David: Whatever you can go (unclear 04:28), right.

Jay: Part of the increase is to your total sales.

David: It’s part of your sales.

Jay: So basically, if you know you would sell a million dollars, and if you
could sell an extra 500,000 against stuff you would have bought anyhow,
it can actually be very very advantageous because it can get your
efficiency, your productivity, your cost to sales per unit down dramatically.
Barter lets you pay operating expenditures, even payroll as soft dollars.

David: Right. Soft dollars and an Englishman; one of my first accounts

was a fantasy motor unit, Disneyland. I flew out of here, I was signing him
up, and we were going to advertise up the west coast to stay at his hotel
and use hotel rooms. And, he said, I got it. He said, you’re going to let
me advertise radio up and down the California coast with a soft dollar. I
said, what do you mean soft dollar? He said a hard dollar is when I pull
the check book out; soft dollar is when I use this room. And it does, it lets
you pay with a soft dollar.

Jay: So, talking about Sheraton Gold, because that’s interesting.

David: Sheraton Gold – Sheraton did about 10 million a year for maybe,
twenty or thirty years, and all the advertising Sheraton did was paid for
with the Sheraton Gold certificates. Even major newspapers took them
because you’ve got people traveling. Hilton at the same time that we're
standing in said we don’t trade. So Hilton wrote millions and millions and
millions of dollars worth of checks while Sheraton was using the rooms.

Jay: They were just using unsold rooms.

David: Yeah.

Jay: And, they would only honor it if the room was unsold, and so
incrementally cost them the cost of the maid, the sheets; the overhead.
Barter lets you pay…again; you can bring your own currency or scrip that
is useful only at your place of business.

David: That’s another thing. If you print up some…almost every

restaurant’s got gift certificates. But no matter what business you’re in, if
you print some gift certificates for your business or your services, it gives
you something to hand them if you make a deal. I always tells a
restaurateur, let’s say the stove breaks, you’re bringing in the guy to fix
the stove, and he says its $600 to fix the stove. You say, okay I will give
you $300 cash and $300 in dinner certificates; he’s going to take it. You
just saved $300, and you can do it in every phase of your overhead.

Jay: But this automatically get terms, credits, and discounts far better and
easier than you could ever get pay in cash.
David: Right, absolutely. For some reason, radio and television stations
will make a better deal on trade than they will on cash. I’m in the
business all my life, I don’t understand it, but I take advantage of it, and
you can too. I don’t know why.

Jay: And breakage. This is before the ethical question the gentleman
says, I’ve traded tons of things I’ve never used. And the guy that traded
with me is ready for me to exercise it, but he’s never used. I traded
$5,000 of tiles, decorator tiles, 20 years ago when I was doing my first
protégé, and we were going to do it in one of our houses, and we just
never got to, don’t even remember who owes it to me now. But, there is a
concept called breakage, just like there is (unclear 01:18) predictable, all
kinds of other factors and other elements of business you want to talk
about?

David: Breakage is the unused portion that expires. Let’s say you
issue a million dollars in trade and it expires December 31st, ’03. It won’t
ever all be used.

Jay: But you will if they bring it in, you will honor it, but truth of the matter
is they won’t, if they use it all, they will usually not use it exactly, so you
will make profit out of it, because you will have to pay the cash difference.

David: Right now I’ve got $30,000 worth of Wet n Wild, which is a big
water park in Orlando that has to be used by December 31st. Do you want
to get onto a water slide in Orlando in December? I don’t think so. So,
that’s going to be wallpaper. But I got it for airtime, and they’re going to
renew, so I’m not …

Audience: Canadians will buy it.

(Laughter)

Audience: Can I just give you my very best one? I’ve got a timeshare in
Ocean Shores, Washington for $5000 barter dollars, a red floating week,
and it’s in RCI, so you can use that to go anywhere in the world. Normally
the face value of that timeshare would’ve been $20,000, the original
buyer, and there’s many, many, of those available on barter, so if
anybody’s just traveling and they’ve got timeshares, it’s a great deal.

Jay: You get cash conversion, we talked about it. You can basically get
items, and when I was; the concept that I put in, I don’t know if they
followed it afterwards, but the new concept at the magazine that I was
working with when Dave and I met, he was a great guy – they were a
quarterly magazine. They would sell advertising months before the issue
came out. The new concept was you trade at face value for only for
products or services that you know you can sell on the open market for at
least 50 cents on the dollar. They would trade at full rate. If rate card was
$10,000, their actual incremental cost may have been $1,000. They
would trade and get the trade credits. Now, the publication wouldn’t
come out for 2-3 months. They wouldn’t pay the print bill for a month or
two after, that’s six months. They would take the item for $10,000, sell it
for $5,000, not pay for it for six months, have a $1,000 embedded cost,
and make five times the money, which is pretty cool, by cash converting.
That’s pretty cool, isn’t it? Something, something, but that takes an
enlightened mind.

David: Yeah, more time to pay with trade because if you wish you a
gift certificate until the certificate comes back you haven't paid anything,
might not come back for six, eight, nine months. For cash, you've got to
come up.

Jay: An analogy which is in trade but, American Express I don't know if

they still do but when they own the traveler’s check market, they made
$100,000 a year on the float and the float was the fact that, it's like every
time I go overseas I get $5,000 of American Express checks, I’ll use a
1,000, I’ll come back, throw them in the drawer and won’t think about it
until next year. Well that's $5000 they had to use up for year interest
free.

David: That's right. And then, some of the checks are lost and when
they're lost, that's it, they're gone.

Audience: What do you trade the radio stations and the TV?

David: Anything they want.

Jay: Give us all the interesting things they want.

David: I had a station in New York that carried the Mets and they
wanted to send the Budweiser distributor to Bermuda with his family and
they didn't want it on the books. So I sent him to Bermuda on the family
and I took some air time. so...

Jay: But you got carpet.

David: Oh carpet.
Jay: Cars...

David: I traded a radio station here, their transmitter. They needed a

new transmitter.

Jay: (Unclear 05:01) tower, and what did you get?

David: I got a commercial for the day for the transmitter. There was
a used 10,000 watch transmitter, I traded it with K-Rock, if you know K-
Rock radio a la and that’s a large station here now and I got a spot a day.
So the spot was worth about $200, so I got 6,000 a month in air time for
four years. That was 400,000 in air time, transmitter cost me $10,000
and I traded out the helicopter that dropped it into the building.

Jay: Anybody live in Salt Lake? Jeff you live in Salt Lake? Anybody live in
Michigan and Tri-Cities in the Michigan area? Anybody who live in let's
see, not Lake Tahoe, what's the gambling city by Lake Tahoe?

David: Reno.

Jay: Anybody live in Reno?

David: Carson city.

Jay: Okay, I was the most advertised person for about three months in
400 stations in the...

David: 6 were in Reno.

Jay: Yeah, and I was on 9 stations in Salt Lake, wasn't I Joe?. I traded
Citadel who was a public company. I traded $3 million worth of consulting
speeches, products. I did (unclear 06:18). They ran on TV. I did gift
baskets for all the advertisers. I created a newsletter that we did for them
for two years. All total hard cost was about 50 grand and I got $3 million.
Now, I ended up just using it to promote the heck out of myself because it
was a giggle and we didn't know-we wanted to use it for direct response
and it was a B market and it was not good, but I got $3 million (unclear
06:48) you can do all kinds of things. The point of this really is to stretch
your mind and your paradigm and your imagination with what’s possible.
So you should be doing trade. He'll consult with you and if you've got a
good deal he'll take a piece of it, but he's here just to blow your mind with
fun stories. You've got any other real points you want to make?

David: Well the, when you trade, make sure you're trading with
somebody that is legitimate. There's lot of people wandering around
saying I have this, I have that, that don't.

Jay: Or there are services out there that will rip you off. They said I'll take
all your unsold inventory and will give you discounts on advertising and
that’s a rip off.

David: Doesn't mean anything. There are companies that say, I'll take
these tables and I'll give you savings on things you buy. They just mark
the price up and you end up getting nothing for the tables, but your books
look good and a lot of this is for public companies for the books look good,
but you’re not really getting anything. The only way to trade is to trade
something where you get 100%. But if you're using your trade to-you can
use it to lower the cost of something you're going to buy anyway and even
if you save 25%, you were about to write him a check for 100%, now you
wrote him a check for 75%, the trade lowered your cost of acquiring that
product.

Jay: Who here has personal services in this room? Who sells services?
Anytime you could trade-if the incremental cost is high, but anytime you
can trade your services to any entity, organization, individual that has
either great influence in your market place community or be the
probability, once they start a relationship evolving to cash, or somebody
you would be inclined generically to buy or would love to buy something
you know, from, you can't lose. You can't lose if it's something that is
precious and it's limited and you have no-it's hard for me. I can always for
$40,000 a day find a day. I can always find an hour for 5 grand and it's
like, it's not a big deal. It's hilarious. My house is like, over the years, it's
been like a zoo. David knows the kind of things I've traded for but I'm
unique as I am (unclear 09:03). If your value is $200 an hour and you got
7 hours a week that are not being used, you could trade what you do for
anything else but at the end of that they get ethically hooked on you and
then they evolve to cash or you start going out every Friday night with
your wife which is just indulgent or you do your Christmas party on trade
or you get your printing on trade or… I mean it’s just like spark, have you
traded much spark, are you still there? Have you traded ever?

Audience: I’m right here.

Jay: you traded ever? [Chuckles] wait don’t tell me about rigidity man’s
genitals. I don’t want to hear it.

(Laughter)

Audience: Every year I trade about half a million dollars a year and…
obviously in… in the presence of a masters and I’m willing to learn how to
do another 4-5 million if that’s possible.

Jay: But it’s helped your lifestyle, it’s helped you context…

Audience: Oh god, I’ve traded everything from cars to stocks to..

Diamonds to.. you name it, furniture…

Jay: But the point is almost everybody incremental… even if you’ve full, if
incrementally you put another ship down and it cost you, you know the
incremental cost was 10 cents on the dollar and you can get the stuff you
would‘ve paid three times that you need for your home or life it’s still very
worthwhile if you can convert it. The point of this all, is stretch your mind
and if you don’t do barter, stretch your mind to see how many more
creative, innovative and non-linear ways your mind can work because
David I believe was a seminal force in getting my mind to start thinking
non-linear. I don’t do very much anymore because I want to make more
money and I got a bigger sickness from here, I’ll trade for bigger things
that I don’t want, and then I got to figure what to do and then I got to
fulfill on it. And... And but the point is barter is wonderful if you use it with
discipline but the mindset of barter is even better because it lets you look
at life from a possibility based paradigm, would you agree?

David: Okay let’s go back to our client, may be you can think of any other
way to sell it too or you were worried he wouldn’t pay you but he’s got
something you can use.

Jay: Or let’s see you keep your money, that’s right and turn them into
great allies or profit centers.

David: You can go to… we’ve gone to receivables and said we had a
restaurant recently that owed $500 and we said alright we’ll lead here,
and now we have a friend, we’re not suing the guy in small claims court
and our manager weighs 300 pounds.

(Laughter)

Audience: Just…just one example is that heart sculpture, the base of that
cost $1200, it’s a… it’s a four inch black granite, polished on five sides
piece of stone, they want $1,100 for it. There is a guy in head stone
business that he’s… he’s wanted one of my paintings so I traded him
granite, I don’t head stones but I need bases for a painting but the
painting…

Jay: And it’s nice granite right?

Audience: Yeah, it was… and it was limited edition graphic that cost me
$200and I’ve now got $6,500 worth of…

Jay: Granite you didn’t have to buy.

Audience: Yeah.

Jay: So that’s a great functionality but the point that I want you to get is if
you never trade in your life, think about trading because it stretches your
mind and you can translates that into non-linear cat scan way of looking
at possibilities that I think is inherit and is integral to really adapting the
strategic mindset that I stand for, I really do. Thanks.
Audience: And I want to say one another thing, I appreciate your input
because I’ve been thinking of the… what did you call? The line…

Jay: The linear.

Audience: The linear trade what? You know…

Jay: Close in?

Audience: Yeah, art for whatever the thing is.

Jay: Right.

Audience: It just occurred to me that I can actually take it to…

Jay: Triangular, like math problems.

Audience: Yeah, I could add…

Jay: I mean his arts is tens of thousands of dollars, could he triangulate?

David: Your arts beautiful by the way, I’d like get my hampers… this is
beautiful.

(Claps)

David: Let’s work out a trade.

Jay: How would you like to take and watch retailers in Santa Barbara?

Audience: I had a record store for a number of years in Manhattan and I

used the BXI trading Co. Op. and they actually have brokers who buy and
sell the barter for them and they went out marketed my store and I gave
them $25-$50 gift certificates and just about everyone I gave out which
was thousands of dollars were used by people who would never even hear
heard of my store.

David: Absolutely, BXI is very strong in New York.

Audience: As sparch, these gentlemen in masters are here and been

studying for a long time, probably about seven eight years in terms of
barter and I’ve done some pretty interesting things myself. I make you an
offer - if anyone is so busy with their normal marketing but would like to
explore some possible barter possibilities, profit centers within your
business, please see me up here for the next days also.

Audience: Well, I’m actually frustrated, because I sell advertising

editorial space for a women’s newspaper, we reached 300,000 women in
the Chicago land area and talking about art I got three women artists and
we said we’ll build them, we’ll ghost write for them, and at the last minute
they all backed out, we were going to give them two for one, twice as
much whatever their stuff was we were going to give them Ad space of
which 300 educated resourceful women. So I’ve come…

Jay: 300,000?

Audience: 300,000

(Chuckles)

Jay: Or you could triangulate those are two really good trade clubs in
Chicago both are legit and huge. Join one of them, let anybody in the club
use your magazine and let the women pick out what they want out of the
club. You’ll get the art, they’ll get what they want and you’re… use your…
you brought a third person in?

Audience: Well the thing is my publisher owns a charity auction company

so we want high end products in exchange for exposure and because we
want to…

Jay: Cash convert it. You want to cash convert it.

Audience: We want to basically get the exposure like get Oprah and stuff
to come to explore our business and people are turning us down they’re
like well my business partner…

Jay: You guys rather meet because you can probably help him… can we
spend some time with him?

David: Okay, yeah.

Audience: You know I’m in a service, a business and I thought, boy this
just leaves me on the cold because I don’t have anything to barter with.

Jay: What about insurance?

Audience: I provide insurance and long term care insurance policies, I

have nothing to do with what they cost or I can’t exchange them for
anything, so…

Jay: What’s your… what your commission rate is?

Audience: My… yeah commission 30%.

Jay: You can try that.

Audience: Well there is a law in California that says we cannot.. pay a

person to give commission to anyone but…
Jay: Did you buy a policy and pay the first year and trade that?

Audience: You know, this is what I came up with sitting there, I was
totally amazed with my brain, thanks to you and I’m like okay, wait a
minute I can pay for referrals. So if somebody promotes my business say a
financial planner, he wants a policy he doesn’t sell long term care
insurance. I can give him returns that cannot only pay for his policy but his
mother’s policy and his wife’s policy and all of a sudden there could be he
or an attorney or all the other people that I’ve work with, actually we
could have an exchange, I don’t know… It sounds… I know it’s illegal but I
never would’ve thought of that.

Jay: I can tell you and you have to check for legalities but I know a lot of
people in places throughout the country who would buy the first year for
somebody.

David: Particularly in life insurance…

Jay: Yes because they got 90% commission.

David: It’s almost all commission first year.

Jay: They got the front, they get it back and they get something they
want, somebody gets the first year of their insurance paid for…

Audience: You can’t… in California you cannot give the kick back, you
have to be strict… that would probably…

Jay: But can you buy… can you pay first year? I’m not saying a Kickback.

David: You can collect your commission and you can write a check for
what…

Jay: If tomorrow morning you came to me and said Jay I want to come to
your program, I’ll trade you…

Audience: (chuckles)

Jay: The first year of a $5,000 premium on a life policy and I said okay
and you write a check to the insurance company, I pass the physical; you
have… you know you get a commission on it. Let’s say your commission is
90 % you get $4,500 back, I don’t know but I suspect that doing it
correctly, it’s not illegal.

Audience: I think if you gave me leads.

Jay: Is it?

Audience: It is still illegal.

Audience: Wait I have the answer for you, I checked in to the legality…

Audience: Where are you? Okay.

Audience: I’m working with a long term care provider.

Jay: Is that illegal?

Audience: That’s illegal.

Audience: She’s not allowed to split commission with anybody in state of

California. However, you’re allowed to pay a fee...

Audience: Yes.

Audience: To somebody as a referral source, so you do not use the word

commission, you’re paying a fee…

Jay: That’s the attorney?

Audience: Yeah.

Audience: It’s the fee that you pay somebody and it cannot be
contingent on what the long term care policy is…

Jay: Alright.

Audience: So you can’t go in and sue me for what you’re going to sell.

Audience: Right, and that’s where my ‘aha’ was, my ‘aha’ was that I can
pay a fee for their… even for more referrals from them and then …
absolutely that money can be paid for their policy.

Jay: Doctor (unclear 09:43) we are going to do these 4, because I need

you fresh for the finale day, we’re going to stop and save it as an epilog,
gentleman.

Audience: Okay, yes a good example my wife was bugging me about

garage. We needed to put carpet and stuff on the garage floor, we
managed to find the guy who will do it as a great job and he was great at
doing garage cabinets but terrible at marketing. I gave him some
marketing consulting and he did the garage cabinets for free.

Jay: It worked out?

Audience: It worked out perfectly and when I got back I got someone else
to do the floor … the coating on the floor at the same time as…

Jay: That’ great. Wait, wait.

Audience: How does the dynamic of your business change when the
economy heats back up?

Jay: During the internet boom we died because everybody was all wash
and cash, I mean everybody had so much cash on these $5 stacks were
for free…

Jay: Its flourishing now as you can understand.

David: Right now it’s getting better every day, every month.

Audience: So it’s countered circle, Thanks.

Audience: When you cash convert, is… is the market same all the time?
Is it always 30%?

David: No you … that’s something you could call me about if you have
something to cash convert… to find out who buys what.

Audience: Does it functional?

David: We deal with 99 cents store, David Gold and I had a truck load of
half bottles of wine and it was awful wine, just terrible.

Jay: Did you traded for advertising?

David: I traded for advertising.

Jay: (unclear 11: 05)

David: The Company in Seattle went broke; I had my house literally full of
wine, so I sold it… I sold half a bottle of wine to Dave Gold for 25 cents
about 20,000 of them. He sold them at retail, 2 bottles of wine for 99
cents at the Welcher’s store and almost cause a riot. He ran in his full
page Ad Wednesday only there were 3,000 people most of them.. winno’s.

(Laughter)

Jay: So who read that paper?

Audience: Does the cash conversion rate fluctuate? Is that… is that a

negotiable thing or is that…

Jay: Oh yes every… everything’s got a value might be… people say what I
cash can convert… could be anywhere from 10 cents

Jay Abraham Mastermind Marketing 24

Jay: Alright, We ran it on a full page Ad Wednesday only there were 3000
people, most of them..wine out so..
(Laughter) so, wait…

David: Wait… who read that paper?

(Laughter)

Audience: So… does the cash conversion rate fluctuate, I mean is that…
is that a negotiable thing? Is…is that…

Jay: oh yes everything… everything’s got a value. It might be a… people

say what can I cash convert? It could be any convert 10 cents to 70 cents.

Audience: Okay, the other quick question is on the airline miles, here
there’s like a billion dollar in airline miles, is that something people can
barter with?

Jay: My son buys them; he has a travel agency in Honolulu. He buys and
sells miles but he doesn’t barter.

Audience: Is there a cash conversion rate on those things?

Jay: He has a figure that he’ll pay for them, but he buys them all the time.

Audience: I am here actually on Trade with Jay so I know it works.

[Chuckles] But my question, actually… I am also a member of Itex I found
that Itex is more on a lower denomi… value denomination, they really
don’t do what we do like our rate card is 10, 20, 30 thousand dollars.

Jay: They’re not optimal in local (unclear 01:12), but the barter clubs
are really more for smart.

David: Itex in Sacramental is terrific.

Jay: Yeah that’s what it is.

Audience: Yes. (Unclear 1:18) Great office in LA is practically not

existent. So where is? Who is and what of?

Jay: But you got the tapes years ago, anybody got a… anybody in
northern California, Sacramento or LA who has a business or service
they’d like to blow the mind of market and anything good to trade for,
we’ve got basically, potentially million dollars a month in the most wild
and incredible LED signs at the best of locations in all of California and we
are open.

Audience: Perfect.

Audience: You have any cars?

[Chuckles]

Audience: Let me say one thing just real quick.

Jay: Alright go ahead.

Audience: Dave, I was here at your 91 summit, and then by Alex

Thomas.

David: I remember you.

Audience: I am the one that set the deal with Microsoft; they were going
to do a 110 million with us. But then what end up happening was, I
emailed Bill Gates a couple of time, he put me in touch with Balmer.

David: Right. You were emailing Balmer, right?

Audience: Yeah I was emailing Balmer.

David: Right, okay.

Audience: And what end up happening, they had me go down to their

marketing agency down the Portland a couple of times.

David: Down the Portland?

Audience: Right. And there they kind of slammed the deal a little bit.

David: Right.

Audience: But they were still interested, but at that particular time that
was right when the anti-trust was coming out with Microsoft…

David: Okay may be that was one of the big factors.

Audience: That was one of the reasons because I presented to them,

they were just introducing Windows 95 and their slogan was “Where would
you like to go today?” and I was going to… We were going to trade them
some drive time.

David: Right. You sent them an email offering to buy how many millions
of dollars worth of software?

Audience: 110 millions.

David: 115 million. But Balmer was Marketing director, he’s now
president. He got an email from this gentleman saying I want to buy 115
million worth of software, and that was returned quickly.

Audience: Yes, it sure did.

Jay: Okay that’s funny that’s cute. Okay last question tonight.

Audience: Just in the last two weeks, I’ve been working with Itex and I’ve
had a credit for a quite some time but I’ve been looking at their websites
rather than talking to various brokers, in last two weeks I’ve been in touch
with about four five brokers around the country and suddenly I’m seeing
that there is a lot more stuff out there.

David: New York very strong, very good Manhattan. Yeah.

Audience: Well…

Jay: Its economy to more people who are trying to preserve their cash
and… and consciously, strategically, reactively Barter is appealing to them
more.

Audience: And one of the things they’re asking where do you travel, and
so I gathered together the various cities we travel to and they’re coming
up with places close to where we already staying. So there’s lot of
different things, you got to do something.

David: You have to work that way. You have to work it, it’s more work
than money. I mean money you just give him $100 you’re done. Trade is
more work, it’s harder and it’s more profitable. It’s extra money, its profit
centre for your business or service.

Jay: Okay because we’re all tired, we’re all done. What time tomorrow
Rick?

[Claps]

Jay: Those of you either one, you don’t have to but Troy Tate is going to do
a really interesting session that’s optional at 7:15 if you’re… if you’re…

Audience: Who wrote the book?

Jay: That’s my book, it’s just my book. I have a section on barter and it
was inspired by David, it’s just… you can get it on Amazon, you can’t get
it… I don’t sell myself, as soon as I publish, getting everything out of all
you’ve got.

David: Terrific book, very good book.

Jay: It’s just has a very good section on barter.

(Unclear 04:56)

[Blurred]
Jay: Thanks a lot, have fun guys.

Speaker: So it is… and it is special he was Jay’s counsel for the last
fifteen years. He also has a training company which focuses on optimizing
human performance. He’s also been general counsel for a NASDAQ
company and is currently working with Jay on several opportunities,
working with other clients on this particular technology. So luckily I got to
see this because of… I did the workbook and I think it’s pretty cool and I’m
interested in hearing about this, so I’d like you to welcome Troy Tate.

[Claps]

Troy: Yeah. Thank You. Hello everybody it is early, and lucky I’m an early
bird. They originally schedule me for like 10:15 to 11:00 and that would’ve
been the 1:15 to 02:00 and I’m sure I would’ve been in coherent to all of
you because I’m a morning person, so when they set out the early bird
that was just what I wanted to have. Now you guys have probably not had
any extra time to fill out your profile, anybody who actually did?

Audience: Yeah.

Troy: Alright. Good, how many of you who took the profile came out with
the most number of reds? Reds, you know I would expect most
entrepreneurs here are mostly Red are or… or not more than 50% but
more Red than anything else, so stand up all the Reds. Okay so we do
have a good number. How many of you scored with the blue? Okay we
have a few, oh two, three, and four… usually it’s the most blues in the
companies. How many Aqua? Aqua, Aqua see… okay they’re undecided,
well, we’ll talk about that [chuckles] they do blue, they do aqua, they do
whatever they want. And how many yellows? Okay, okay so and how
many don’t know and they’re waiting to find out? A lot, okay it’s great.
Okay we’re going to talk about something that I think is fascinating, if you
get this I’m telling you it’ll be so powerful on how you deal with people.
Because most people do not know what drives them. They’ll go through
whole life thinking this is the way to look at life and will have no clue
what’s behind it all. If you have the clue and they don’t and they’re your
clients or they’re your employees or they’re your business partners,
you’re one step ahead because you can get right through the gate to the
motivational trigger and make the difference. So we’re going to talk about
that today.

Now before we do I would like each one of you to think of a particular

group that you want to focus on listening to this today. If we have a
purpose in mind and you’re listening to a speaker and you have exactly
what you want to get out, you’re going to get a lot more insights than you
generally listen. So if you’re looking to understand your clients better,
focus on that. If you’re understanding your employees or understanding
your business partner, focus on that, and focus on particular person or
two. Now write that down, who is that you wanting to focus on? Okay, I
don’t want you… just write it down, I don’t need you to tell me, just write
it down - who it is that you’re focusing on and why…. What you want more
out of that relationship, maybe it’s a client that just bugs you badly… you
know just trying to get to the next level of particular client and there are
things about them that you just don’t connect with but you certainly want
their business. May be it’s a colleague or an employee or an executive
team but write that down and when you’re taking this information with
that 80-20 rule, we know that 80% of what I say is great as I think will be
for you, you’re going to be… So go for the 20% and get the insights. This
will be fun for you, okay and we will go.

We all know that max that no business can succeed without people and
you can’t have sustained long term growth without meeting the needs of
the people. Now those people who think that everyone has generic needs,
are missing out on the boat. Those people who think as long as I throw my
money out to my employees or as long as I do this with every customer,
are missing out on power to effectively make it to a next level by
addressing the specific needs of that individual, so let’s go to a different
level.

This is a powerful thing if you understand your client’s core triggers, if you
really understand and know how to communicate with them in their
language, then the likelihood of you being able to get through the gate
and have them come to yes is going to be far greater and even so you’re
going to find you’re not only going to get that initial deal but you’re also
going to get long term relationship because you’ll know how to speak with
them. Okay, the key is getting to know it’s not what you say, it’s how you
say it that’s going to make the difference, It’s how get through that gate
because otherwise you may have the communication clear in your own
mind and it’ll be muddled. If we’re talking about people who are thinking
of their employees or executive team and motivational - Coses and Palmer
said this “leadership is a reciprocal relationship between in those who
choose to lead and those who decide to follow”.

Now someone said in the prior session about the fact that if you have
enough passion you can make sure your business is successful. But to me
in long term it won’t be as long as you don’t understand and address the
needs of your people. So if you’re going to be leading you got to get both
their head and heart. They may give 50 or 60 or 70% of it voluntarily
because they need the pay check but if you want to get the 100% of it,
you got to get in their head and heart and have them what they want to
do. That’s what the best companies are they have the best cultures as
they know how to tie into the needs of the individual.

This is a very interesting thing, I’m general council, I was a trial attorney
for 15 years and I have been general counsel for company where we do a
lot of… it’s you know 3 or 4000 employee Company and the vast majority
of people who’ve been terminated from those companies involved
personality conflicts. 80% of them have some aspects there where
someone doesn’t get along and it affects their performance, it affects their
confidence, that’s where you could lose a ton of money.

Let me tell you about the cost, this is unbelievable but it came from
Harvard Business study, the average cost to replace a particular employee
individual is 50 to 100% of that annual salary. That’s how much it costs in
long terms of lost time, down time, training, going down sending the ads
trying to bring them in and all the other things that go with it you, lose a
whole bunch of money. But if we do it on the customer end or other cause
of course we have a lot of harassment lawsuits, we have a lot of
discrimination lawsuits, a lot of absenteeism but on the revenue end, poor
relationships with the customers will ultimately under mine every
business. So the key is if you don’t have the relationships and you don’t
know what drives them and you don’t address that, you won’t in the long
run sustain success.

Okay, we’ll talk about personality now, this is the key to understanding
the people around you’re trying to deal with and yourself, each one of us
is a blend of two or more of the four basic temperaments. There are four
temperaments, I use colours because colours tend to be fairly neutral but
you’ve heard it around there’s disc, there’s all sorts of companies who
have personality paradigm used for, but each one of us have two or more
in eight temperaments. And we start with that - Anent is a part of it, it’s a
drive, it’s a basic desire, it helps us understand what makes us move. How
many of you are parents? Okay how many of you have two or more
children? Okay, would you agree with me, particularly mothers here that
they are not the same even after the shoot…? I mean not even the same
in the womb, is that true? And no matter what you do, it doesn’t change
it. It is very… I am the father of four girls, I know, a lot sympathy I get
when I say that…

[laughter]

I have a marriage trust fund that all you can contribute to later, but 17 to
7 and every one of them came out of the shoot differently and it wasn’t
anything we did. It was right from the get go and that’s where people
have anent personality drives. The first one wanted it now [chuckles] and
when the puzzle piece didn’t go into the puzzle it was like [baby scream]
you know, no patience and wanted to get moved what they wanted and
move ahead. The third one didn’t wanted to come out at all, we actually
had to induce after two weeks later, they all have their different
personalities and all of you will know as well when you have your own
children . Now I’m going to go through this quickly but Krepark started this
whole thing when he decided to save four different temperaments based
on the fluid in your body, and all of those who don’t have anything but
blood go [baby scream] you know yellow bile, black bile, flam, but any
event let’s get down to some basics [chuckles] let’s go to colours because
if I use those kinds of fluids many of you will be ashamed of being
melancholies and phlegmatic you know that’s the stuff that comes up
when you cough, and black…

This is what we decided to do, let’s get it down to colours. Everyone one
of you has only one anent basic trigger and the trigger is what is the most
influential part of what you do, what you say and what you think. It’s a
behavioural trigger and with red that trigger is taking charge and I would
say also power not power in good or bad but it’s making things happen.
The basic trigger for those who are blue is a combination and it weighs
differently on each person basically its perfection wanting to have
everything perfect. Sometime people might see that as anal [chuckles]
and connection, wanting to connect with others at deep level, so it’s more
of people orientation where red is more of thing orientation. The basic
trigger for Aqua’s is peace, tranquillity an at any cost, in fact one of the
people here told me on the first day that their company is named Serenity
transformational company, who’s that, is there anyone who has? Yes that
sounds like someone who loves peace, Serenity transformational and what
was the last name of the company?

Audience: Tours.

Troy: Serenity transformational tours, Peace, giving you that freedom

from all the confrontation, from all the turmoil in life. And then there is our
last trigger which is fun. Now if you observed the speaker in first couple of
days, it is such a crack up on your nose to watch them because you see
them in action, they bleed their colours.

[chuckles]

We started off with Brian Tracy, what did he say was the key to
everything? What did he value more than anything else? Action… Move
ahead… move ahead, If a door slams go to the other door, Get it, Target,
Focus, Lock in, true Red. I mean, Jut Red, Red, Red knows where he wants
to go, knows how to get that and he shares with you, all the things he
share with you based on his values his particular temperament which is
“Action Gets you to the Goal”. Okay, then we heard on the telephone
Frank Tarcantin what was his emphasis? People, he talked about before I
make any decision, I’ve got to have these great people around me, I’ve
got to talk with those people, get their input, really listen to them,
understand them and get to decision made through the help of people
and I can only achieve great things, when I have great people around me.
He’s telling you Blue. Okay.

And then you have Jay and Mark Victorhanson, the A.D.D. twins [chuckles]
and what do they say? It’s fine… It’s fine you know I can’t even… I write
notes all the time and then I forget about it, I mean living with him as his
attorney for last 5-6 years, is an incredible venture because you know no
matter what you give him, it better not be an original, you’ll never get it
back again, he can’t find his notes, he can’t find anything, he’s always in
the moment and you’ll find he and Mark Victorhanson especially when
they talk about his 50th Birthday party, that’s fun okay and Jay’s wife is
fun, so both of them have a trigger of fun, it’s quite a hassle.

Look at every person has great assets they bring on the table, and
recognize that with your customers, I mean your clients, with your people;
they bring great gifts to the table. Some people see life only through their
own values and will only hire those with the same values but if they do,
they miss out on the best thing they can get which is the success of all of
these that they all bring to the table makes the company that much
better. Red its initiative in focus, they’re locked in, they are zoned, they
know what they want to do, and they know how to get there. They know
how to make decision, deciding anything is not a problem, taking a
leadership role is not a problem, because they are determined to get to
their point.

Blue, is quality in an organization they are the ones that make sure in the
background that things happen, they happen when they’re supposed to
happen, they’re scheduled, they’re disciplined, look what they bring to the
table, you tell us what to do Red and we’ll make it happen or let’s make
sure we do the highest quality, so they can be in leadership position as
well.

Aqua, this is the thing that many don’t understand is they bring great
balance and clarity; they are not ego oriented people. They understand
what’s going on and they can see everything in the mirror and everything
they say, in fact they in the legal business if you found an aqua attorney,
someone would say, some position they go, “oh that’s good” and the
other side would say “oh, that’s good too” [chuckles] and they hear and
hear you know and they move back and forth because they don’t have
this dogmatic view of life and they can bring out the best of the two and
bring people together. Warren Christopher is a great Aqua in terms of how
he did that and there were other aqua’s who were president, Jimmy Cater
bringing Egypt and Israel together.

Then there is animation , Yellow bring enthusiasm, animation out of the

box thinking that’s Jay Abraham, just totally out of the box and everything
he does, like when you dealing with him in a meeting for about an hour
it’s like having a channel changer and you’re not even having control of it.
[chuckles] every two minutes, “ wait…wait Come back Jay” goes to
another thing it doesn’t sustain for a long period of time the same thing
and he forgets everything he talks about but he is so brilliant when he is
in the moment, he’s phenomenal, I mean when you’ve see him working
with clients and I’ve seen him working in lot of situations, he is
phenomenal how he zones in, gets it all done, he won’t remember a thing
afterward so that’s why everyone records the notes but he just gets to the
heart of the matter, it’s just a great talent.

There are other factors affecting personality, I really won’t go into it,
except we all know that our background, our family, all sorts of things can
affect our personalities and it can even affect what our core drive is. We
may have a core drive of Blue and yet we have strong red parents telling
this is the only way I’m going to value and so they literally get little
screwed up because they’re not even sure what drives them, they have
this mix messages going on in their lives.

Okay let’s start out with Red, they take charge and their initiative focuses
are their natural talent. You want to get people in your company, you want
to get your customers or clients, you want to understand what drives
them and if it’s people in your company you want them to be place that
they can have their natural strengths magnified and their weaknesses
made irrelevant. So if their drive is initiative and focus and they want to
be decisive you find the right place and right position where that kind of
personality will work. Think of the strengths of a powerful red. They are
Bold, absolutely bold, no fear, risk takers all those who are reds again?
Anybody in red have a problem making a decisions? No. [Chuckles]
Scream if you do. They usually know what to do, when to do and they
base their life on getting most done in least amount of time possible,
they’re very, very direct people, they’re resource oriented.

I have a situation where- has anybody ended in Cabo-San Lucas, raise

your hands.Has anybody been to Cabo-San Lucas without getting
proposition for time share program? [laughter] now that’s a feet, that’s a
feet, and we went there the first time this year with my family and we
made it through that, it’s like… that… that you know you come out of the
airport and there’s 50 people and we reject it all and finally get to the
hotel and we can have this… and we finally said okay we’ll try one, we
haven’t tried it in 15 years. So they put us with a sales person that
morning, and we had breakfast and said all your family will have breakfast
and we’ll listen to this and so we went through it and the guy was just so
nice and this is no pressure and we liked this and he started to say the
things, well the problem is he didn’t know that I have trained the time
share people of Marriott and Hawaii few years ago, so I knew the positives
and negatives of all this stuff.

In the event, he was so easy going, this will be easy when he was all over I
will say no and we will walk away. So we’re getting to that point, we’re
going through and taken a look at it and just when we’re about to say no
and walk away he said “I need to turn you over” and then comes this guy
[chuckles] in comes this guy “what are the sticking points, you know
alright he is the red you know, “what is the wrong thing, what we need to
solve?” you know high pressure, you did this do that you know “why did
you get your family here? You only get you family here if you intended to
sign for this and then buy this time share that’s the only reason you could
do it” Oh I did okay, you now I have problems with re-sales. You don’t
worry about re-sales I’ll pencil out and all this high pressure, does anyone
has that kind of pressure thing? [Chuckles] It’s like you wanted to resist
[chuckles] and the more you resist the more they press. Well, that is a red
but negative red approach to sale and if you experience it… it’s not fun if
you do it, it’s not fun for your clients.

The fact is most clients may not like that approach unless they too want to
get the positive and negative and make the decision and in that case
when I finally said “No, No“ and then my wife said let’s just go and he
goes “oh, so your wife wears the pants in the family?”

[Laughter]

“Oh boy you’re really trying to endure me, I’m just loving the rattle, can
we stay here for another hour and talk to you?” And anyways we left and
a negative red salesman I’m surprised that he get so many sales or why
he is the one they chose to close the deal. But they have very positive red
salesman who know when to press and when not to press because reds
know the target and they’re not about to give up so if they do it in very
skillful way they are some of the best salesman around, and clients will
get to… But let’s talk about these weaknesses, now those of you are red
will remember all the strengths on this charts, and you’ll forget about all
the weaknesses.

[Laughter]

Reds tend to not think of their weaknesses it’s not in their agenda, they
know and they execute self-confidence, it’s part of them, they do not want
to focus on the bad, they want to focus on positives and they also want to
focus on what their strengths are. Now someone said that self-confidence
is learned, I’m telling you, how many of Reds think that you kind of were
born with lot of self-confidence? Usually it’s the case, my daughter is the
fourth daughter came out of the shoot you know I know exactly what I
want, I’m going to get it, and when I’m want to get it I’m going to get it.
We battled with you at age 3 in a way you just think you would dealing
with an adult. Self-confidence, you don’t have to learn any of this, it came
out of the red and that’s because their natural desire is to have power,
let’s talk about their needs, this is their needs.

They want to be right, not only they want to be right, they need to be
right [chuckles] Now those of you need to breath, that’s the same level
that red needs to be right, you know it’s kind of gut level, so if you want to
get red to say you’re sorry and they’re sorry, it’s not in their agenda
because if they’re not right then they really not a value ,they want to have
the opportunity to make sure they’re right and you’re wrong. They want to
be in charge, they want to get credit for achievement and to be confident
and to be efficient. So their drives are all base on getting to the point as
fast as they can and doing it in a way that shows they get their
achievement, they’re the people who build the bridges, build the
companies and then move on to the next project.

Okay so with those needs in mind, keep those needs in mind when you’re
dealing with someone who client is a red. They want to be right, they want
to be get to the point, the bottom line and they want to be efficient, okay
this is quick slide but recognize those are red once who are very cline to
take what is great strength in sometimes carrying it to extremes,
workaholics are generally Red and Blues. Reds because they want to get
to their goal and they’ll do everything it takes to get there, so they will
work you know the 16-18 hours a day, those speakers we’re talking about
generally you say they’re Reds or Blues, rarely do you have lot of yellows
or aqua’s do that but reds and blues they like to do, they have this born
leadership capabilities but it gets to the point where they decide for
everyone else, and that’s where it could happen but if they sustain their
strength they’re awesome. Okay.

Audience: [asks question]

Troy: Yes in book two, thank you for asking, there are slides under my
section in book two, in fact most… all of these slides, there are few slides
that I changed since I submitted the materials but most all slides about
each of the personalities are in your book. So, I would again focus on
particular relationship you are talking about rather than trying to take
notes, get the insights and write down the insights. Yes.

Audience: [question]

Troy: Oh the slide? No. I’m going to make you guess, go look.

Audience: [laughter]

Troy: The answer is all of the slides give you the strengths, the
weaknesses, the needs, how you deal with them, what you don’t do, what
you do, do and how you determine what people are based upon non-
verbal and verbal things it’s all there. It’s almost I’ve given you the
Essence of being able to understand these particular personality. So focus
then on who is doing, what are those persons doing you’re trying to deal
with or understand where they’re coming from based upon them and
don’t worry about getting this content down. As you’re listening to it, see
who do I think is red? Mean, who it is that I am dealing with, is red? And
how do I deal with him better, don’t focus on this content because it’s
there in the book.

Now if you want to determine what they bleed, they’re tend to turn the
table red, they ‘re the ones who want to get to the point, how often do
they say the point is, when you go in there and talking with them, they
want bullet points, they want not only problems but solution, what did
Brian Tracy said he valued? Solution oriented people. Don’t come to me
unless you have a solution, don’t waste my time, when you come in know
exactly what are you going to say, know how to say it, and get to the
point. If you’re selling me a product or a service, don’t waste my time.
This is such a funny story.

I was getting a water purification system and it was a blue salesman and
he had this 27 page, the kind of journal type thingy, he wanted to go
through, he learned it, he learned every slide, he studied it, and he knew
it. So he started the process and the first he did the taste test and it was
great and I automatically thought I wanted get the system, I just want to
know what the cost is, so I go “okay I got it” so he say no.no.no then he
goes through, [chuckles] another five- ten minutes, I said “I don’t
understand it, just tell me what is the price? How do I pay it? What’s the
price?” “NO I’m not finished yet” [chuckles] and I tried to interrupt and we
finally said “Look stop just tell me the price and let me go with it and I’ll
make the decision” but the blues often times want to, they love details so
they want to make sure they have done everything and present
everything and not miss a fact and red who’s the buyer, who may be your
client if your blue may not like that.

Get to the point and make it happen. They often say I need, I need this, I
need that, get it here, get it now, they’re not wasters of words; they want
to be very clear and concise. Now here’s how reds control they control by
intimidation and force of action, they will exude self-confidence looking
out for number one was probably written by a Red. okay, because they
know what’s there in their self-interest and when they listen to you as
you’re trying to sell them a product they want to know immediately what’s
in it for me, how I’m going to get it, when and how. Okay? They want to
make a decision now, they do not like to dive into details too often unless
it’s something that’s particularly too fascinating to them. So unless you do
they will intimidate you with their force of their will and the way they want
it and the way they want it now, they’re very direct people. Reds do not
like people who don’t look at them in the eye. Two reasons why, one they
think they are either lying or they’re in competent both of which they
don’t want to have [chuckles] around them.

So if you’re dealing with a red you better have the eye contact, you better
know what it is that they want and how to get it and know it and in very
clearly concise way because that’s all they want. Personalities, a variety
of reds in our lives you know if you’re riding on left in politics you’ve got
James Carvol , on the democratic side you’ve got Rushlin Bond on
republican side, it doesn’t matter what philosophies they have, and you’ll
find reds everywhere. And when they do it they are very, very good at
knowing this is what’s right, I’m right, you’re wrong and just believe me
you don’t have to you know, it doesn’t matter you’re going to be wrong
unless you believe me and follow me. But mother Teresa is the interesting
one, why would you think mother Teresa was a Red?

Audience: [answers the question]

Troy: Yeah but what was so powerful about mother Teresa? So, she has a
sense of purpose, which is a red, and she went about making sure it
happened but she was able to take on the character of the other colors,
she was able to take on the blue’s compassion, and…and the balance and
all those things so she’s one of those character people who start out as
red, if read any biographies of her, she had a vision, and she knew how to
get it and she knew what to do to get it, and she was willing to do
whatever it took to get it and adapted and learnt the greatest traits of the
other colors as a way of getting there and that’s a phenomenal example
of someone becoming a character human being even though when they
start out in one color, it’s a really good example. Then Jessie Jackson, I
mean every ones wrong, I’m right, I mean I’m right, every ones wrong no
matter what in their very critical they’re negative red. Hilary Clinton, how
did she deal with Bill’s adventures?

Audience: [Laughter]

Troy: Very practical, very pragmatic politics will do what it takes to

maintain power and move on. That’s a red approach to her, wasn’t an
emotional thing, it was how do we stay in power. There’s nothing against
that, that was what probably what saved him that she said let’s do what
we need to do and move on, and she’s very pragmatic and power
oriented. Does anybody know what Bill is? [Chuckles] We’ll find out.

Audience: Yellow.

Troy: A yellow. Okay. [Chuckles] They like to have fun, very charismatic
people, we’ll get to that. But here’s the nutshell and this is the slide I don’t
have in your book so you may want to take a few notes. What they want
from fiduciaries? Jay said its client not customer. Here’s what a red
customer or client wants from you. Okay? They want you to get to the
point, give them the bottom line, costs and benefits, how will it benefit
them and they are ready to make a decision, they don’t want to waste
their time on what they think are irrelevant material. No matter what you
may think about your product or service, if you sense this person is
pushing and pushing you’re probably dealing with a red and they want
you to get to the point.

The bottom line this will work for you and they are the ones that people
love at seminars or at places when they try to sale products because they
will instantly make a decision and they’ll go with it. So this is probably
very, very powerful stuff if you can learn this is what the type of person is
that I’m dealing with on the other side of the table. Get to the point; they
want you to show a lot of confidence and competence. They may ask you
a few questions and if you look them directly in the eye and you do the
red game, the red game is I know what I’m doing, I know I’m great, I know
my product is great, then you will have the red with you and they will go
with you and they will be your customer okay. The key to them is to show
them competence, confidence, get to the bottom line, make their time as
valuable as can be so you recognize don’t waste it and you’ll get there.
And stay with logic. You don’t need to go to red and say it’ll make you feel
better, may be unless you’re doing Tom’s or something but in terms of
decisions or products they don’t need to know how they feel, it’s not an
emotional decision with them, There’s some little emotions with all
decisions but with them it’s just logical as it can be, let me know the
bottom line.

People bleed their colours Margret (unclear 01:15) said I’m extraordinarily
patient provided I get my own way in the end.

[laughter]

To wear your heart on your sleeves isn’t a very good plan; you should
wear it inside where it functions best.

[laughter]

Now what is the iron lady telling you about her character?

Audience: She’s Iron.

Troy: That she’s iron, and she’s not going to sit there and take you
wasting your time with fifteen pages of details no matter how much you
like the details or she’s going to like it if you start mooding with her “ you
just stepped on me?” she is going to say “out, I don’t need you, move on.”
So they don’t want any of that kind of mooding, what does red sound like?

[Song plays]

I’ve got the Power! Okay? I’ve got the power. Any of you know the group
Queen? I mean, that was a red group. I mean look at their songs, another
one bites the dust, and you know someone dies another one bites the
dust does that show a lot of sympathy? We are the champions, I mean it’s
just a red group and also the red probably loved that group a lot because
it gets… resonates with them. They like the power. Powerful red
occupations what’s so powerful about it is policeman likes their job not
always because they’re in charge but because they have a gun.

[Laughter]

They can enforce it and the surgeons and emergency doctors love or are
mostly red because, with surgeons they are in charge they get all the
prays and accolades where all this people get this prays and accolades tell
everyone what to do and they do it, and they walk out right, they’re not
having to establish a bond with the patient they just do the surgery. Same
thing with the emergency room, it’s all adrenaline, get in do the plumbing
and get out that’s what draws reds to those particular professions in the
medical field. And so if you see those trial lords, boy carry a lot of reds in
trial lords, they love the Win-lose they love to win and they love to beat
people in that kind of competitive environment so you will find the reds
gravitate to a lot of things and especially business executives, the vast
majority, I’d say the majority of CEOs of fortune 500s are reds. They rise
to the top, they know how to get there, they play the game of politics
better than any of the four temperaments and that’s reds.

Okay let’s talk about blues, Blues! This is the part of the slides, blues want
to connect and they want to do things perfectly , sometimes it gets a little
excessive one way or the other but they want perfection and connection,
and with that they bring great talents to the company, they are the ones
who make sure all the details are taken care of. If you’re dealing with a
blue client and if you have beautiful cover on what you’re presenting to
them but inside there are mistakes, you’ve lost the blue. They will look at
the details and when they examine and find they are not there, they will
not trust you. Trust is critical when we talk about fiduciary or client
relationship, trust is essential for a blue and you have to earn their trust if
you’re seeking to get their business.

Look at their strengths, now blue come to this thinking, their weaknesses
more than their strengths, they are more concerned about imperfection
than about their strengths. So when I list the strengths they’ll probably
forget that, but when I go to the weaknesses they’ll realize oh, there are
few more weaknesses I had I even forgot about, you know, it’s one of
those things where they always want to be better people and so in the
situation where it say a blue, they are always trying to be better and they
always trying to make sure all the details are covered and that everyone
understands. Now where a red has a laser like beam to get where he
wants be, blue often like to go to a little bit on the side, they want to get
the whole picture, they’re not zoned in a line, they’re more into big picture
,kind of people from the sides. And, so they have great talents, like I said,
Frank Tarcantin is blue or at least that’s what he seems to show when he
was talking to us, who else is a blue? Well, we have, there are couple of
presidents who are blue and one of them is Abraham Lincoln, and you can
tell he is blue because he always wanted the best and he did go through
mood swings, and he was one of those people who had desired to always
do better, but in this situation they are meticulous, they’re planners,
they’re organize, they know what they want, they know how to get there
and they have fun doing it. Not fun in the way yellows have fun, their fun
is making sure everything is covered, they love order, they love structure
and they love to stay inside the box. Now some of the weaknesses are
they don’t delegate well, I had a blue who was a… who I knew who was…
they have hard time delegating, so they are kind they will tell you what to
do on a task and they’ll turn around and they’ll look over your shoulders
and they say “Now that was good, that was great. Good job, may be you
ought to try this and may be this and may… can just take it and bring it
back to you? ”
[Laughter]

Because blues thinks that no one can do quite as well as they can
because they’re very quality oriented, so they don’t know how to
delegate, and so they’re very hard on themselves and they’re also very
high in terms of their expectations on others and if you want to get to a
blue you take the time meet those expectations. They’re very, very given
people but they’re very demanding people as well.

Okay look at their needs, this is the things, if you’ve a blue clients what
are their needs? They’re telling you they like to embody quality, they
want to be understood and appreciated, and okay they also want to have
structure and feedback, remember what I said about Frank Tarcantin? He
said I want to hear from all the people that, who might be experts and the
things they have to say and share with me that I don’t know. They want
the feedback, they want the structure and they want to be secure, they’re
not risk takers they are risk reversal.

So what do you do when you’re selling to a blue? Risk reversal, make sure
their guarantees, make sure you give them all the details when they ask
for them but risk reversals are the very powerful tool with the blues,
because they don’t want to take risks and if you can make that easy for
them and help them see through the guarantees of risk reversal, you are
very close to getting that blue with you. They also want to be treated
fairly, okay, again I’m going to go quickly through this and it’s on one of
this slides they’ve natural strengths that are carried to extremes and then
it becomes compulsions. Blues are like I said earlier sometimes those who
become compulsive are annal, you know those people who wash their
hands 15 times or they have to have their everything in right order on
their desk and there’s nothing that’s ever stray, those tend to be blue
people. Everything has to be structured, organized; doing what it’s
supposed to be doing, there is no room for chaos with a blue. Now they’re
also thinkers and feelers, they’re very sincere they observe details,
anybody know any blues, have any blues in mind? Okay they’re all
around you and if you know in fact if you have the … the people I’ve
trained in most companies there are more blues than any other colour in
the businesses I train and it’s because they tend to draw blues and
probably there are more blues in the world than there are any other three
temperaments.

They’re out there to make sure it happens, they don’t have to be on front
page, they’re always behind the scenes making sure everything gets done
and when they’re leaders they have the sense of teamwork comradely,
they want to make sure their whole executive team is working as a unit,
whereas the red is more concerned in making sure it moves forward and
action takes place.

How do blues control? By moods, by guilt trips, by indirect suggestions as

I mentioned to you, you have a red parent and a blue parent they’re trying
to get their daughter to clean her room, blue parent says “ I work so hard
so hard for you and I’m tired of it, I’ve done this, I’ve cleaned your room, I
took you to the store, I bought you clothes I did all these things and you
don’t appreciate me and if you don’t clean your room right now, you can’t
expect anything more out of me.” You know that’s the blue, they called it
blue lecture, put the guilt on that they’ve done so much for you and here’s
how red treats it, he goes from a paragraph to a sentence he says to the
daughter “ If expect me breathing in five seconds, you better clean your
room.”

[laughter]

Very good you know, the cause, effect they know the choice is very clear
life or death, room clean. Different approach, same thing but the blues
really want to connect and connect at the deeper levels and that’s how
they do it. Personable blue personalities Tom Hanks , he is very strong
blue, and Tom Cruise as well and as I said earlier AB Lincoln, you know the
most powerful blue in this world right now is Oprah Winfrey. She has used
that quality to endure herself to the masses, because even in her first
episode of Oprah she talked about all the weaknesses she had all the
things she had to overcome, well that’s what a blue does, blue wants to
let you know they have imperfection, they want to real, they want to be
genuine, they want to be sincere and if they’re not, they feel bad about it
themselves and they spend a lot of time feeling bad about themselves,
look at the perspective of red is Future okay. How Do I get to where I want
to go? The perspective of a blue is a Past. What did I do wrong, how do I
deal with it?

So they will take the issues of mistakes they made or other family of origin
longing to the decades [chuckles] and their entire lives because they want
to work it out and they want to get resolved. They are very past oriented
people but they have this incredible talent for being … [chuckles]
incredible talent of being able to connect with people and be personable
and that’s why I call them personable blues because they’re more people
oriented, they’re more you oriented, they really care about making sure
that you’re satisfied so if you do it to them, if you sell a blue and you say
“By your trust and by the follow-up customer service this is what we’re
going to provide” then you’re going to endure them, now interesting thing
bot red is that they’re very much easier to get as customer or client but
with the blue if you get them, blue will last far longer. Even if you do
things that will dissatisfy them they’ll complain about it but they’ll stick
with you cause they’re loyal people, so a blue is worth more as a lifetime
client than the red because the red may find different advantages and
disadvantages down the road and if you got a blue they may even see
that but they’ll stick with you because they like you or they just like your
company even though they see the flawses what you presented to them.

So here are their expectations, and you better get it, especially those of
you who are red, if a blue is sharing something with you and you cut off
and go “ I understand… be…da.da.da” you’ve lost him, you really have to
show the ability to empathise, ability to understand where it’s coming
from, you may have to learn about their family or all those kind of things
that are meaningful to them and then when you do and you take the time
even though you may be thinking you’re wasting you’re wasting your
time, you’re getting a client for life. Okay so think about it, you’re focusing
on a big picture; you’re dealing with those who are clients, who are blue.

The big picture is earn their trust, listen to them, appreciate them, show
appreciation in not only what you say but doing the small acts of kindness
which they will love you for and they will not let go of you for life time.
Those are the people who go to the companies and stay there for their
entire career. They do not like change and so if they’re going to stay their
entire career in company they don’t like change in terms of the
relationships. And that’s what you should work for when you’re dealing
with blues. They want the risks reduced and they love sincerity and
quality. Here’s a blue, blue, sometimes I lie awake and night and ask
where have I went wrong, and then the voice says to me “This is going to
take more than one night”

[laughter]

Charlie Brown is a blue. And what’s Snoppy? Yellow, who cares? He’s up
with the red Barings, give me food I’m going to have fun, I don’t even
want to think about those things, so Charlie brown is the epitome of blue.
What is blue sound like?

(Song)

Troy: I'm not half the man I used to be. Is that blue? There is a shadow
hanging over me, a cloud, a dark cloud, that's the blue and you get it with
a song, you know the powerful thing about the Beatles is if you look at
them, they have 4 member of their group; every one of them is a different
temperament. Now do you understand why they got to millions and
hundreds of millions? George Harrison, Aqua, everybody gets along with
George, its okay he's peaceful, here comes us son little darling you know,
all of his songs are kind of like that.

Then you have John Lennon, Red okay and then you have Paul McCartney,
blue and Ringo Starr, yellow, I mean he's always having fun, he was just...
he was the really fun lover of the floor. So they were able to bring a whole
their group together and look what they did what they did when you bring
all 4 temperaments together. That's the power of having all 4 colours.
Okay, some blue professions well quickly you are talking about musicians,
authors, etc. Okay let's get in this fast, I've got a... I am trying to take
something that takes 3 hours and condense it into one hour, so I got to go
faster than normal, I apologies for that but we have a time constriction
here.

Yellow, aqua’s they love balance, they love clarity. They are the ones who
don't give you a lot of feedback but they have so much going on inside of
them, that if you take the time to gain their trust you will got a lot out of
them. They have a great ability to see things from an objective view point.
Blues and Reds tend to be fairly dogmatic and deeply grounded, aqua
tend to go with the flow, okay. That's why aqua they go with the flow, they
are like water; and they'll be easy going and they'll take things and even
when you abuse them they'll take it, or you criticize them they'll take it
and they'll be fine, except they’ll have a little trash can inside of them and
they'll do again and again and the trash can ultimately get a little fuller
and fuller and I am sorry for the person who actually put that last piece of
trash in the trash can. Whoever had an aqua postal worker? You know
guns down 30 people and what happen when they have the TV interview
later of the neighbours... Oh such a nice man, so... even there's nothing
wrong with him, I never saw him angry. It’s because an aqua had this
garbage can filled to the brim.

They have great strength, their ability to be kind; they'll get along with
everybody, mostly everybody because they value kindness. It’s like the
Thumper rule - If you can't say anything nice, then don't say anything at
all. So they want to say any unkind things to you, but if you say unkind
things to them, you are on their bad side immediately. If you are rude to
other people you get on their bad side but they won’t let you know, that's
the problem they don't give you as much input. They have great
strengths, they are adaptable, they can go where ever they need to go,
and they are very independent.

They... Henry David was an aqua. They can go of their own to make sure
things happen but they are not the kind of people, who want to let you
know where they are at. Because it’s all going on inside though, they are
very, very logical people. They have some weaknesses - if you listed those
weaknesses on your resume and you try to get a job, I mean different
fearful plus and minus, so suddenly stubborn, aimless, lazy and
enthusiastic stubborn, uninvolved... I just like change. I avoid conflict and I
am indecisive but other that I am the person you need for the job. They
are... but their strengths are the things that people don't recognize. Aqua
have this great power. One of the most character aqua is Gandhi. If you
listen to Gandhi and you realize what he did through non-violence
overturned an entire British empire, the power was in his peace, his peace
motivation but he had learned the strengths of the red and the strengths
of the blue and yellow and if you listen to him unlike listening to Margaret
Thatcher, you'll hear quotes from him that shows he values blue, quotes
from him that shows he values red and quotes from him that shows he
values yellow. So the facts of the matter is he's really can to take on the
great strengths of all the colours and deal with him own inner-core
strength of peace.

They are the people you should listen to and draw out, and so if there's a
customer you have is not listening or not responding to what you're
saying, give them time we'll talk about that. They need space, they
needed to be accepted, and they need to be independent and they like
harmony. The interesting thing about aqua is that they are like the other 3
temperaments in at least one of their needs. They can identify what the
other 3 temperaments. They are the one who're most inclined to be able
to take on any temperament and do it. For example, the world of business
is the world of red. If you have an aqua often times they can go into the
world of red and act red, if they have this balance to... in fact if any of you
have scores that were all close together most likely an aqua, most likely if
they are close together is most likely and aqua because they flow into the
different one's and there's no strong undercurrent and saying this is the
way I want to look at life.

And that's what makes them powerful because they can really, one's they
get over their fear, they can really get great things happening. Their
biggest stumbling block is fear, just what like read their biggest stumbling
block is humility, but the blue's is getting over themselves you know not
worried about the past, gets future oriented and present oriented...
everyone has a stumbling block. They have natural strength, we had... in
our company we had this turmoil going on - one of the leaders who has
just came to the company and was there for 3 months and he left, just
abruptly left and then... So they tried to have a team take over, this is a
division of a NASDAQ company and the team was causing all sorts of...

And then this guy comes from Atlanta and he says I’m going to get this
solve, he was this red with blue and he was giving different messages and
it still cause a lot of turmoil.

Well this aqua came at the front and say look, I will take the job and he
convinced this guy from Atlanta to the job and over the period of the next
six months where they resolve this up and down, he brought it to a flat
line. See aqua’s don't have politics in their nature, they are not thinking
about power and they are not thinking about fending people, so what
they're able to do, is they are able to get people down to a level where
they can start listening to each other again and that was the power of
what he did. And he did it just in his own nature, he didn't put pressure, he
didn’t put guilt trips, he just said this is what we want to do and I expect
you to do it and the people did. So the power of an aqua leader can be
pretty impressive at times.

They have relaxed body language, unlike the red that needs to have eye
contact, aqua’s don’t need eye contact, they don't need to look good to
impress you. They are very casual people, in fact they just like hanging
around without the suit and tie, even if they are required to do so. They
may be a situation where they wear their suit and tie and where they wear
their sneakers. They are just a casual nature to them; they are not in the
business to impress you, unlike the red and blue. So if you deal with that
kind of a customer or that kind of a client or that kind of person on your
team; recognize that they are probably is an informal nature to them and
they have an aqua nature. They have dry humour, tend to be a soft voice
and they get their point across.

Now there have been President of Iraq as I mention earlier, Jimmy Carter
was and George Bush. And if you saw what happened in desert storm, you
will understand it was the aqua that made the different. Because when
they crossed over and they got into to Iraq, it was the aqua that said ‘okay
we have done enough, we have repel them, they are no longer there
where they were before, let’s stop. Now if it was General Schwarzkopf that
was in charge, Iraq would been annihilated okay but it was the aqua’s said
no we did enough, we did what we say we would do, you cross the
boundaries, we put you back where you belong, so let’s back out. And it’s
amazing how that temperament really is the primary force in guiding
those - every one of us and that’s how it guided George Bush senior.

Now here is how - it’s so interesting because some people don't think
aqua’s control and the way they control is just the opposite of what you
think control is. The more you try to push an aqua, if you’re selling to an
aqua, the more pressure you put on them, the more they will resist. They
are stronger than you can ever imagine, they can outweigh you not
matter how long it takes and what they'll do, is they will be very indirect
about it, why don’t you call me and then they will never be there to
answer the call. They will do everything they can to avoid having to tell
you no, they may send you an email two months from now and say no, so
they don’t have to have the direct confrontation telling you they don’t
want the product. So what you have to deal with is the situation where
you have to gain their trust to draw out where they are coming from and
that only comes from gentle nudging, we will talk about that.

First of all the personalities, Michael Jackson now when he gets on the
stage, he is like a yellow but when you get him in interviews, he is aqua.
He is very soft-spoken, he is very kind, he talks about all sorts of things
that mean something to him but he doesn't have the same presence
offstage because he has that nature that peace loving nature.

Albert Einstein, most of the great thinkers of the world are aqua’s because
they are logical, they are in their head, they want to reflect on the deep
truths. They are like serenity, they like meditation, they are very good at
journaling. Aqua’s are probably the best at journaling because they loved,
they work well with the pen and they will work well with reflecting on their
thoughts and writing them down, so those are the kind of personality. Now
don't think they are not competitive, some of the people at the top of the
sports field are aqua’s. Tiger Woods, at personality he fend no one and yet
he is as competitive as you get. In the area tennis, Pete Sanford said,
‘don't think they are not competitive, they are very very competitive when
they want to be, but they just have a gentle nature to them and they tend
not to offend anybody.’ And Kobe, now he's got more more bold as time
went but when he first started with the Lakers, he would just go home and
be with his family, wouldn’t interact with any of the other players, he just
kind of be on his own and now he is really starting to come out a little
more, I think the shacks had an effect on him.

So that's what people think peaceful aqua personalities are like. Here's the
key and this is not in your book, so think about this person or persons
you’re talking about, if you're trying to influence an aqua low-pressure,
remember they want peace, the more pressure you put on them, the more
turmoil your brining to their life. You're not being an answer to what they
need, your being a problem okay, so you got to do the gentle nudging
though and so requires consistent efforts. Now a friend of mine, share his
aqua share with me this, a product, the person called him up and he
thought about the product and he said, ‘okay I'll think about it’ and they
call him up a couple weeks later and they talked a little more and he said
‘he still thinks about it’ and then one more time and finally the
salesperson is just tired of it. I mean he tried three or four times, looks like
he's getting nowhere, he is getting little feedback and then out of the blue
that salesperson because my friend told me, he would call in three weeks
later and said, ‘I want it.’ Because when he doesn't feel the gentle
pressure and nudging, I mean when he doesn’t feel the high pressure and
he has a chance to reflect on it, that's what they do, they reflect on it and
they make a decision. Now what works well? Blues also works well with
aqua’s risk reversal.

Now it’s an interesting thing, they will want the guarantee or they will
feel-good about the guarantee and feel good about the risk reversal but
will they ever return the product? No, why?

(Audience unclear)

They don’t want to offend you; they don’t want to hurt your feelings. So
they will want it and that will be a very good criteria for selling to them
but what's good about it, is you don't get the returns. So like the blue,
they can be a lifetime client, why? Because they won't get around, it takes
too much energy to change to another supplier and if there's something
that goes wrong, they don't want to offend you. So the aqua’s and the
blues are the toughest to get but when you get them, you get them for life
okay. There is different reason for different motivations but stick with the
aqua's gentle pressure, saying can I call you back in a week? Can I call
you back - those kinds of things move them forward a little bit every time
until they make the decision and once they decided on you, again they
don’t want to go through that pressure again to making a decision, so
they will stay with you, it will be much easier for them and when you know
this, it’s very very powerful.

Henry David Thoreau, I mean who else will go walden pond and stay there
for two years, not talk to anybody but the animals and be able to love it. It
is aquas because they do not mind being in solitude, they never get
lonely. And he said, ‘I went to the woods because I wanted to live
deliberately to front only the essential facts of life and to see if I cannot
learn what it had to teach and not when I came to die, discover that I had
not lived.’ Now those who rock was here resonates with him because they
love to reflect on deep truths, they love to think about things, they love to
get into themselves and really come out with the answers and everyone
knows and aqua and anyone think they know an aqua around here? Okay.
Has anyone experienced the aqua stare? The aqua stare is this, your
talking to them and the lights are on and no one's home.

(Laughter)

And it's not because they're not thinking, they are going through 15 other
things but they don't want to be unkind, thinking about 15 other things in
there mind and they are talking to you, you're talking to them and you're
seeing no response, it’s like these eyes open but you’re not sure the
person is conscious, you’re not sure what, that's the aqua stared. Now if
you’re chilling with the customer or client just realized, hey I got a clue,
this may be an aqua here because that is what they do. There is so much
going on in their mind and oftentimes they will just look at you and they
don't feel the need to really pay attention to what you’re saying. So
occasionally get them back to reality and ask them a question or two and
you will get to know.

Now what does aqua sounds like?

(Song)

Anyone knows Simon and Garfunkel? They are aqua, aren’t they? The
sounds of silence as you read your Emily Dickinson and I my Robert Frosts,
we have no time or place for book markers or memories that are lost,
that’s aqua, listen to that , an aqua has identify that. Enya has a lot of
both the blue and aqua tour, those just soothing sounds, ethereal sounds,
draws a lot of tune. So if you’re in with a client's office and they are
listening to that music, guess what? There's a clue there, occupations
Dennis, you know why Dennis is Aqua? Because they can talk to you and
you don't talk back. So how is it going?( ahhhh) They could be nice to you
and they tend to be aqua. If they are psychologists, are the one who sit
down and will nod and they will listen to you for an hour, you won’t get
any feedback but they will continued nodding because they're very good
listeners. And why FBI agent though? Why FBI? Is because they do it
behind the scenes, they don't have to go and confront the criminals all the
time, they put the pieces together logically and creating a case for an
arrest.

Often time you will find FBI agents – you saw what kind of doctors, I
already give you a clue what kind of doctor's, they are anaesthesiologist.
They love to put people to sleep.

(Laughter)

And they're not - they don't worry if you get bored, they are not bored and
so oftentimes you may think they may bore you but they're not bored
themselves or you may think you're boring them, they aren’t. They are
very interested, they just don't get bored.

Okay now we come to yellow, this is the Jay Abraham school of fire and
Mark Victor Hansen, they are true yellows. J and Mark do what they do
best as yellows.
(Drum roll)

Fun and play, I mean what other concert do you go, I mean a concert is
now a concert. What other program do you go to or you doing the YMCA
and whatever dance they were doing yesterday, I mean that’s J. J love to
have fun, they are in the moment type of people, they are very present
oriented. Okay so the reds are future oriented, what is it going to mean to
me, how do I get to where I want to go. The blues are past oriented, what
did I do wrong? How can I do better? The aqua’s are go out and the
yellows are in the moment and they love it, in the moment, they have
great talents, animation and innovation. They are out-of-the-box thinkers,
they do not think inside the box, that’s what made J so incredible because
he is always doing things outside the box to bring them to you because he
hates structure. He is not a structure person, don't believe he is an 8 to 5
person; this man will work spiritual hours, 24 hours to 2 to 3 days in a row
and then take off. He doesn't like the constriction of the box, okay. And
that’s what yellows often do, their very very present oriented people, they
are the life of the better offer, when they make a commitment to you to
meet you for a sales meeting but if someone comes along with a better
offer between now and then, ‘hey you want to go skiing?’ Sure. You may
not have someone show up at your particular event because they are the
life of the better half, why waste my time? Saying I’m committed to go to
some sales meeting, instead go skiing. Well that’s the way yellows are. So
don’t get mad at them, they just found a better offer.

They are the impulse buyers, they are the buyers who said, ‘well this
sounds good’ but they don't do it like reds and say what’s the advantage
and disadvantages; it’s like does this feel good? Is this fine, is this (unclear
01:13) I’m going to buy it. So they are very – if you want instant sale, it’s
very good to have a yellow, very good. They have great strengths, they
are animated, they are enthusiastic and when they come to a company,
where do they go? Where do you find most of the yellows in the company?

Audience: Sales

Sales, this is it right? Sales and marketing, anybody who took the test is
yellow? Stand up. Oh okay, so you guys you love sales and marketing
because you love people right? The yellows are those who really can
engage you, they have great stories to tell you. I was doing a negotiation
and we had to negotiate, it’s a $2 million it was a lawsuit. I was a (unclear
01:57) at the time; well actually I was General Counsel. And there was all
this battling between this red female attorney on the other side and our
blue male attorney and they were sending all these nasty letters, and I
was thinking ding, ding, ding, ding, you know $10,000 a letter of variety
and I decide let’s get to the General Counsel on the other side. And he
had shared with me a couple of times when we were in depositions, all
these stories and I thought this guy got to be yellow. You know he was
laughing and talking about all the things he did, so we invited him out
from Georgia out to California. And I talk to our CEO and I said this is how
we are going to negotiate this, let’s listen to what he says, let’ talk about
things, let’s talk about stories, hopefully you will have the interest as he
will. I don’t care how long, it might take an hour and a half to two and then
when it’s all said and done, he will probably give you a bottom line and
hopefully you will get the number you wanted and then you will agree and
then he wants to come out and play some holes of golf afterwards.

So sure enough, that’s what happened and luckily and CEO had a lot of
yellow in him, so the red would have been different would have been
crazy during this negotiation because for the first hour we just talked
about fly fishing and horseback riding and all sort of… it’s like this is a
negotiation, I mean give me a break and then the guy says, ‘okay we are
going to get the business taken care of’ and then he took out a check. He
says, ‘this is what we will pay you’ and so I went in the other room with
the CEO and we said, let’s pretend we are talking, it was pretty good
numbers what we wanted, we said we wanted a little more. So we came
up with okay, give us the money and do a few other things, and we knew
the yellow wanted to go golfing, okay. So if we could get enough of the
other things, that were just enough for him to swallow, we will be okay
and so we throw in a few more terms and they were terms that was
beneficial that’s all doing another forum, getting some more business and
sure enough he said okay and immediately he said let’s go. And he and
the CEO went off golfing for 27 holes, so..

That’s what yellows are all about, if you know that, then you know how to
deal with them. They are a little undisciplined, disorganized, impulsive,
forgetful, clutter, etc. They tend to talk too much; they talk and think,
okay. Blues think and talk, yellows like to go into the room talking, there
style is one where they like to get the attention of people, they loved to be
noticed, they loved to be praised, they love stimulation, so if you’re going
to get yellow to go to buy your products, stimulate them, make it fun,
make it interesting, make it something that they will be interested in
having and also make it easy. They are not the kind of people who reads
those manuals from cover to cover, you know how you do install
something, they want something that has like 3 steps, get it in, plug it in,
turn it on, that’s great.

They love flexible without structure and so when you get to that, you not
find it sometimes they go to extremes and extremes here are they often
times can become sociopaths in the sense that they will they not let the
truth get in the way the way of a good story. And they will do whatever
they can to con you, if they go to extremes. And they tell stories so well,
I’m sure all of us have lost some money in life from a yellow sale person,
who is a negative yellow in the sense that they will tell you whatever they
think you need to hear in order to get the sale. Because they love the
engagement and they love the art of the sale and in fact the thing that J
enjoys most when I deal with him, and we do the deals is he loves the art
of the deal. The most exciting part is negotiating the terms of the deal and
as his attorney; he has never done a simple contract. He has all these
elements here, what happens here, what happens there and he loves all
this stuff, he just strives on it and when there is time to implement, he
wants to make sure everyone else does that. Because he will come in for
his moments of brilliance and the rest of us will take care and deal with
the details and make sure it happens, but he loves the art of the deal and
that’s what yellow do.

Jay Abraham Mastermind Marketing 25

Troy: Anyone else does that. Because he’ll come in for his moments of
brilliance and the rest of us will, you know take care and deal with the
details and make sure it happens but he loves the art of the deal and
that’s what Yellow’s do. They’re fun to be around, they’re loud, they’re
easy laughs, they speak and think as I mentioned. Okay, here’s how they
control; charm, if a yellow daughter or son, they do the pouting, “oh no
don’t” and they walk away but they’ll somehow get your attention. They
do not want to have you not notice those popped yellow personalities, as I
told you right. Bill Clinton- yellow, they’re very, very good at creating
commaderie, they’re good at getting people to forgive them, and they’re
good at forgiving others. Jay is very, very forgiving. No matter what people
do he forgives very, very quickly. It’s because they want to be in the
present moment, forgiving, not forgiving ties them up in the past, so they
move on.

Okay here’s the key thing. And this again is a slide that’s not in your
book. Here’s how you get to yellow. It’s an easier job than with most other
temperaments. Probably the easiest in the sense. You make the product
your tasked quick and easy to learn and use. You’re fun-loving, you really
enjoy if they want to share a story, if they want to have a laugh, and they
want to have you sell them while they’re doing roller-derby or whatever,
you go with them and you have fun with them, okay. And then, notice and
praise them, be upbeat, lighten up and have a lot of commaderie. Now
when you do that, you get them but remember the yellow’s life is the life
of the better offers. So they’re easy to get in but not so easy to keep.
Because if they come up with a better offer and it’s funnier, they’ll leave
that. Oh back? Okay.

They love stimulation. If you’re going to sell to them, make it stimulating,

make it something that’s exciting, involve their emotions. They’re emotion
based more than logic-based. So if you make it exciting for them, you’re
going to have to make a difference. They’re very upbeat and they want
you to be upbeat, if you’re depressed, if you tell them about your
problems, you’ll probably lose a yellow very quickly. They’re just optimistic
people. They wake up happy for no apparent reason. Get that? A lot of
people don’t get it. They wake up happy for no apparent reason. They’ll
just be happy and all the things that are going wrong in their lives and
they’ll just have a smile on their face. With yellows, optimism is a natural
quality for them. And another thing you won’t get if you’re not a yellow is
they love themselves just because they breathe.

(Audience laugh)

Reds and Blues don’t get it. Whites can get it up here somewhere but
yellows live it. They love who they are. They’re just fun loving. Got to love
me, got to love me, got to love me and they’ll walk around and they’ll
really get people to love them, because that’s the power of yellow. So
you’ll get the quick sale but you have to work to keep them. You better
stay fun with the yellow. Is that enough time? Okay, seize the day. In fact
I’ve done some presentations, a few yellows walk up to me and out of
their wallet they pulled out the card “Carpe Diem”.

(Music Playing)

Sound yellow? There’s a party going on right here. Various occupations

but let me get to what you have in your books, but look at this over. They
are people, they bleed their colours. Look for what they’re doing. Look at
the clues that are coming out of them. How they’re sharing things. If
they’re speaking very fast like Brian Tracey did, point-point-point-point-
point, I mean that’s a Red. A red likes to get through it fast. They want to
get to the point, they want to move ahead. They’re very articulate as
they’re doing it. They’re usually a Red. If they’re more round about and
they talk a lot, they don’t get to the point as well but they like to share
things that are on the outside as well as the middle, more likely a blue,
okay. If they don’t share that much and you get very little input from
them, more likely an aqua and if you having fun with them and if they’re
very upbeat and easy going and just having fun then you’ll get a sense of
a yellow. Their decision factor I’ve mentioned that how they communicate;
reds are loud, they tend to be loud and yellows tend to be loud, blues can
be middle of the road and aquas are soft.
This is in your book so you can take a look at it, decision making style. Eye
contact as I mentioned is a very critical thing, don’t worry about if you’re a
red trying to sell an aqua and they’re not giving you eye contact. It’s not
in their nature to want to do that, if they don’t have to. And Blue’s if they
do not trust you may not give you eye contact. So you’ve got to earn their
trust. So take the time to understand what motivating them is; power if
it’s red, perfection and connection if its blue, peace if its aqua and fun if
its yellow. Okay this is also in your book, we won’t have time to get to it
now but take a look at it in your book. This is an awesome table, if you’re
dealing with a company where you’re trying to understand the people on
your team, you can go through all of these things and you can look,
without even taking the profile and understand what a person is all about
just by how they handle the various things that work, okay and that’s also
on the other side. So this is in your book, no need to write it down but
we’ve talked about most of these traits.

The last thing I want to mention is that all of us have personality bends.
They’re not just four personality traits, they’re four temperaments and
what you have heard sometimes, you’ll say well that matches me but
there’s a few needs that I have and want that’s not what I see in most of
me and the others. Anyone had that experience? Yeah. That’s the
personality blend, okay and if you took the profile, you’ll see that probably
that the needs of the second one or the next highest up on your profile.
The fact is you may have a few needs from a secondary or a tracery
colour. But that doesn’t change the most influential factor in your
decisions and in the decisions of your clients which is that core motive or
that core trigger of one of those four temperaments. So if I’m a red, for
example, let me give you an example of this. I may have strengths of
being a self starter, taking charge and yet a secondary personality of
loving people. And really being exciting, but I may also have some
weaknesses as well. That’s what we’re all about, we’re all unique. I’m not
saying they’re four personalities, I’m saying they’re four temperaments.
So you will not always get clear messages about who those clients are.
They may send out different signals, okay and so you have to throw trial
balloons at them. Oftentimes, it may not work the first time but then you’ll
get it later on. There’s nothing wrong with that, you’ll just understand it’s
not working. So in this case, they may have the strengths of both and the
weaknesses of both. There’s some that will have nothing but weakness of
all four colours and those people, don’t sell to them. You don’t want to
have them in your life. Because they are really kind of screwed up and
they don’t even know what they are. So stay away from those people.

Now, here’s another interesting thing. If they have a core temperament,

for example red, they may want to be right or need to be right and be in
charge but they also want to be noticed. And to have flexibility, you may
get confused. Oh you may say this is yellow person so I’m just going to
have more fun with them, then they cut you off when you’re trying to
share a fun story, then you know, no that’s not the primary core. The
primary core is red. Yes, they’ll have fun when they need to but they want
to get to the point. And you’ll learn that very, very quickly if you start
wasting the time of a red. Remember the core temperament still governs
your communication style. That’s what makes the difference, okay, the
core temperament. Now you’ll find in your books and these are really
good, really good prompters. These particular things, if you look in the
books, I think section 10, there are steps to say what to do for a red
personality, what to do if you are a red personality and you’ll have that
with respect to each one of the four temperaments. And what you don’t
do is well, okay.

So if I’m a powerful red, here are things that I can improve on. Here’s how
it can make me more effective and here’s what I shouldn’t do and then
you’ll see here’s what I’m dealing with if I’m dealing with a red personality.
What I should do, what I shouldn’t do. They’re really good, really good
prompts, stuff you could put in cards or something. Maybe you could write
them in cards in fact we have a product like that that helps you when you
go to the meetings and understand okay, here’s what I should do and
here’s what I shouldn’t do. I’m telling you this works. It is so powerful.
When I deal with negotiations for Jay, I really get a sense immediately who
the person is. And when I get a sense of who they are, I adjust my style to
that. Not because I’m putting on a façade but because I understand and
value what their temperament is. And when I value what their
temperament is, most of what I’ll be communicating will get through, right
through the gate to where they’re at. And make the difference rather than
getting muddled because I’m speaking to them how I want to be treated.
If I’m speaking to them how I want to be treated, I will lose a lot of clients
because two thirds of them or three quarters of them won’t agree. That is
not how they want to hear the message. No matter how good the
message is.

So the key is to understand and value that and then you speak in that
language. So as I mentioned before, take a look at this after when you’re
doing your debriefing after this whole thing is over, take a look at all these
things and you will find, I promise you with the people and particular
persons you need to get in a better relationship with, whether they’re
clients, whether they’re employees, whether they’re partners, these will
be very, very valuable. I know they will and you’ll have an opportunity to
have a great time. I’m going to end early, because going through this is
too long to take more than five minutes. So let me talk about the last
thing that really doesn’t involve your clients or customers, it involves you.
You will have in your companies or in companies of people who you work
with, people from all the different temperaments. And if you want to get
better, if you want to get character and be really influential in all aspects
of your life, find a model of someone who is red. If you’re having a
problem dealing with a red, go to one other person in your company who
is red and ask them how to deal with it. You have experts in every one of
the four temperaments in your company or in the business circles you run
around in.

So use them as your models and as your mentors and how to deal with
that type of person. And if you have a blue, do that as well, but if you
really want to, get to a level where you can embrace all four and you can
be effective no matter where you go with no matter what type of
personality then it’s the process of charactering. And that process means,
you don’t work on your weaknesses, remember what you heard before,
don’t work on the weaknesses that are naturally yours, go after the
strengths that make the difference and you’ll find those strengths that are
not naturally yours in one of the other temperaments. And if you use a
model, someone who naturally exhibits that and you follow what they’re
doing and learn what they’re doing, take it in and instead of doing that
you’ll find it’s the antidote to a weakness that gets rid of the weakness
without ever having to focus on the weakness.

So find models in all the other temperaments use them as mentors, use
them as advisor, you can say you have all the expertise you need in your
company. I love this quote; “two roads diversion of wood and I, I took the
road less travelled by and it’s made all the difference”, that is the path of
those who are going to be the most successful in life by really
understanding what makes every person tick, by valuing what makes
them tick and by very much taking it on and embracing what makes them
tick. So you have the strengths of all four temperaments. So go out there,
do it, have fun this is really, really fun. I recommend that you go try it out,
try it out with a person today, try it out with someone you know, talk to
each other about it, the more you get comfortable with this, the more
awesome it is in terms of the power of it. And the thing that I’ve learnt
about truth is, it may not have a lot of pizazz in the beginning but the
more you try it, the more powerful it gets. I’m telling you, the more you
try this, the more powerful it gets. And this will be a very, very powerful
tool in helping you be successful. Thank you.

Jay: Wow that was great.

Troy: Thank you.

Jay: Terry, where is Terry? I need Terry. Is she around? Can you find her?
Okay. A couple of announcements, you guys have gotten the third
workbook, right?

Audience: Yes.

Speaker: Let me tell you what it is. Let me tell you what it is. It's all
tactics. Right, Rick?

Rick: Yes.

Jay: Yeah, okay. We did 40 or 50 seminars over the last - before I burnt out
on doing seminars and I did all kinds of different elements of 50 Ways to
Grow Your Business as far as the tactical ones and we had people to
mike's and we collected the best of the best and we transcribed them and
semi-edited. I probably spent a hundred grand doing it. You could take a
deeper but we thought if you could take a look at collective composites of
the best 20 or 30 or 40 ways to do promotions to sell, to lead generate, to
buy client, to break even, to set up strategic alliances that would be good.
Here's (unclear 01:24). We want you to be very successful, we want to
take you to a very delicious pond of water and we hope you want to drink
plentifully and continuously and nourish yourself. And volume one is got
multiplying effects to current ad of sales. A lot of stuff Mac Ross did. Then
it has got multiplying effects of your current ads and sales with Drew
Kaplan and it's got ad clinics. Mac used to do ad clinics like he did the
other night to those who were there. Every session, we took the best ones
that were the most illustrated and we had them transcribed.

Developing and improving your USP, we used to do session on session.

We had those transcribed using PR instead of money. We had a PR expert
go through how the heck to keep your wallet closed but your impact
nation or worldwide. The next one was using PR instead of money with
another ad person. I mean another PR specialist, then referral strategies, I
did tons of them, we transcribed them. Then set up your own external
sales department or agents. We did that, setting up your own external
sales departments agents with somebody else. We did the advertising
comprehending skills again in different version with Mac, advertising
comprehending skills with a different advertising expert in the UK. The
other strategic alliances with me and a guy in Australia, three ways to go
business featuring when I was doing Tony Robbins totally analyzed. It was
a great business in another form, so you could see it from so many
advantage points. Power prints was a geometric business growth analyzed
about seven ways to (unclear 02:51). I think, act, and transact like a
marketing genius.
A guy that tried to model me 10 years ago and forgot what I did that I
didn't know I did. Maximize your assets with another guy who'd been a
partner of mine for 10 years and tried to articulate what he saw that I did
from a different vantage part. How to make an offer that no one can
refuse. Mac Ross and I just went through about a hundred ways to do that.
Creating a solid back in and dramatically improving what you do. I always
have a look at businesses and here is how you add more to this, here is
how you extend it three, four, five, seven times. Making things happen,
just how to get your ass in gear! Reactivating old clients - I did a big
session on that. Reactivating old clients with Mike bashing and stab at it,
these are all transcribed. And so I'm talking about probably you'd have to
spent - you're already here. You're already went passed it, two o'clock
deadline. I was talking to Rick I'm waking up, I was up until four working
on how to make today the best day of your life and I said interesting
things 'cause couple of you still complained about the wet noodles and…

(Audience laughs)

Jay: Did they?

(Audience laughs)

Jay: And I said: "You should give me back our money. It's a waste!" and I
said: "Rick, these people wouldn't know if I just did!" I could blow you
away with the most superficial stuff. Believe me, I'm not saying this to
patronize you and you'd be very happy when you left. We were up until
what? 3:30? Trying to figure out how to make this the best day of your life
and because we care that much about your outcome because we want to
be a role model for you to care that much about your clients' outcome -
all three segments. And we want you to have this because if I don't cover
everything, I chose to do this a certain way. Originally, this was designed
to be a program for my internal people who'd already progressed a long
way on the Jay Abraham curb and I didn't really think I needed to do a lot
of the basics and I was going to bring all the strategic people to make sure
they got their butts in gear and did stuff with it.

Then so many of my friends said, ‘oh can I invite our customers, our
clients, our subscribers? And I said sure. So blending, trying to make sure
you get all of me because, Chad said: "Jay, almost sadly." and it was
very, very he said, ‘so these guys don't really see the intrinsic value of
your brain that worked, because you've been doing all these extra things
because a lot of these experts had very rigid schedules we had to work.
But today, we're going to blow your mind just so you know that there's
something up here besides the ability to bring a lot friends together. We're
grabbing attention right away; it’s like get it out of the box. Headline
athon, Mac did two or three headlines athon it was like "Bam! Bam! Bam!"
Here is how you create headlines. Here's how you extrapolate it. Here's is
how you modify. Here is how you borrow that headline. Here is your
model. Then we had somebody else who was a very strong and a multi-
hundred millionaire advertising guy, do his version of it. I like you to see
different versions because there's no right or wrong, different people
come at it very differently.

Another person gave his sales, basic sales course. Mastering marketing to
the core secrets, I just brought it down, here is this, this, this. Thinking
outside the box with John (unclear 05:45) a different session John did the
first time that was I think blow your mind great and you ought to read that
because it was totally different when he did it. We blend together and just
be really a great bridge to get in yourself about seven times more
productive and freeing you from the yolk of stress and negativity like that,
and I wish I had time to explain it. I have nothing to gain by titillating
because you're already here for the duration. I'm just saying its cool stuff
and we spend about -

Audience: All tactical.

Jay: Yeah and we spent about 30 grand getting it printed up for you so
enjoy it. How to buy your weaker competitor and exit strategist, selling
intangibles or conceptual ideas by mail or space positioning powers, you
just do segments in there. Publish your own book. Transform yourself into
your business and leader in the field of marketplace. (Unclear 06:26) who
sells 40,000 people publish a book. Publishing your own book featuring Jeff
Herman and another guy qualifying leads upfront, I just want you to notice
a lot. I pray you do something with this; I'm so respectfully disappointed
that 82% of you did nothing with the grounding materials and 12% of you
had 5,000 to 500,000 dollar win-folds before you came it, It's just
something to - is that me? Is that coat? Somebody locked in the closet?

(Audience laughs)

Jay: As Bobby here you got to stop, I’m sure he's got a real short window.
Is he here?

Audience: No.

Jay: Okay, we thought our surprise is really interesting; we had Robert

Allen who has written five or six best sellers. He is Mark Victor Hanson
partner; they are both on tour right now all over the country with their
best-selling book. He agreed to do something really cool for 15 minutes
but we sort of screwed him up. We thought it was at CNN where he's doing
a bunch of - he is on CNN today for interviews but it's not. It's like a half
hour away and it's different. Terry, where are you? Raise your hand. Walk
up here, everybody who talked to Chad Holmes or everybody who gave
me their card. We got lot of you. We want to interview you. We want to
write some set some stuff up with because we want to be the best - not
just the best for us but the best situation. Chad needs to get - he's going
to initiate dialogue with you today before he leaves and - it was just a list.
I’m going to name some people, Terry is my assistant, find her, she is
going to set-up like five or ten minutes today, so at least we can get
something started. Everybody who came up to me, came up to Chad or
should have come up to me or should have come up to Chad and just set
up some times that are convenient.

Dawn Camp, Kevin well he writes as bad as I. Kevin (unclear :08:09) I can't
pronounce your last name, Scott Milburn, Emmanuel Olli, Wilson Clam,
Howard Philips, Robert Marshall, Wendy Robins. This is terrible, my writing
is better than this. Eric Gunther, Patrick Boggs, Chad Decort, Donald
Yakurt - if I've mispronounced you, I'm sorry. Joe Kennedy, hi Joe you sent
us a lot of e-mail, you were worried you weren't going to be here. Where
are you? Raise your hand. Raise your hand. Where are you? Do I read e-
mails? I do, don't I?

Audience: Yeah.

Jay: Can't get away from me. Greg Baron, are you here? Okay. It will help
me just process and get in an incept so we could make the most and
really start a dialogue fast and bring something good, Blake blacksmith,
Doug Philips, rest not? Okay. Find Terry at the soonest break, because
Chad's here. He's got a meeting at 5 o'clock and he has to leave and I
want to have all of you spent five or seven minutes. So we can get a
debriefing, we can figure out because I'm not going to have the time
myself. Anyhow, this is our gift and this is not another paper way. For you
to have experience this auditory, you would have had honest to God.
Spend about the average program was 36 to 86 hours - say 40. Time's
about say conservative 40 times, 40 is. 16,000 hours you would have to
spend. You have to flown out to 40 things that would have caused you at
least 80,000 dollars or showing you Jay Abraham in action but I want you
to appreciate this. You would have probably spent another grand for the
hotel and food, so another 40,000 dollars. You would have probably not
retain very much of this to get this transcribed yourself. To listen to it
again when it taken you that amount of time which you wouldn’t have
done to have it transcribe yourself, would it cost you basically 16,000
hours. That's about 3 hours transcription per hour which is 30 that's
48,000 hours. Time is about 40 dollars an hour. Somebody's caused you as
16,000 or 160,000, I did that. If you don't use this, shame on you and I
just demonstrate you had a value of piece of paper too, didn't I? Okay so I
did two things in (unclear 10:20). If you don't get that and use it, shame
on you twice, okay. What?

(Audience claps)

Jay: Okay, we got a problem, because I said we got to (10:35). First off, let
me give you the day. We're going to work on business. I'm going to have
to demonstrate to you that I know my business and I'm going to spend a
couple of hours showing you that I'm really not trying to avoid confronting,
demonstrating very marketing technologies and I really do have a (unclear
10:51) of knowledge residing in the catacombs of my mind to share with
you. And then we're going to have Whitthin Churchill talk a lot about e-
mail marketing and then because all of you want to know about the web
and the internet and because I have a certain perspective but guess what,
how many people in this room have figured out at least one element of
either e-mail or internet marketing, positioning, or collaborative
marketing, using it as an extension of your existing business to
communicate, to cut cost, to access business and it's making you money.
Stand up. Well guess what I'm going to do for all of you who have it? And
I'm not going to have to do this seminar. Do you want to guess what I'm
going to do? What do you think I'm going to do? I'm going to have all
these people come to a mike and we're going to basically - Robert, are you
there? He'd probably say yes but nobody can hear it.

(Audience talking)

Jay: Okay, one second. I'm going to have all you guys give yourself
basically about a billion dollar compressed seminar in about an hour and a
half. If you don't take a lot of note, shame on you. Okay, Robert!

Male Speaker: Robert, they are just calling you.

Speaker: Can you see me?

Robert: I'm here.

Speaker: Can you see me?

Robert: I can!

Jay: You look very (unclear12:09) I like your (unclear 00:12:10) Do this, so
I can show how incredible in real time it is.

(Audience laughs)

Jay: How is the tour going?

Robert: Doing very well. (unclear12:18) too early in the morning. (unclear
12:20) two wide TV this morning, one tape and then just remote right
here.

Jay: This is the most important. You do good here, they are going to
probably tell everyone. You know, all these people have influence on
probably there's 650 killer entrepreneurs here, who is probably on an
average have 3,000 clients, members. Some have a100 - 200,000. You got
influence (unclear 12:45) all our books but got inspired them and I'm
going to tell them what we talked about. Okay?

(Audience laughs)

Jay: You can do it! You can do it! Robert!

(Audience cheers)

Jay: So Robert, besides writing five or six best - selling business books,
besides being one of the most brilliantly audacious marketers in the world,
is one of the most resilient and one of the most strategic minds I've ever
met. We asked him if he would do 50 minutes of heartfelt counsel of
recommended attitudinal strategic and ideological suggestions for what
you might want to do when you go home and what he has learned about
business life, in his travels, and travails and I'm going to just let you go for
that it, but let me say he's a dear friend, he's a brilliant man, he's a very
generous man, he's understands a lot of really critical stuff about making
money and sustaining your business. He's been through some very
interesting personal stuff and he wants to share something with you. I'm
going to let you have that and I know you're on a tight schedule. We're
very appreciative and we can sell a lot of books if you really inspire us.
(laugh) Go for it, man!

Robert: Alright, thank you! First of all, I want all of you to wave your
hands, so I can see you.

(Audience cheers)

Robert: Alright! Thank you! There we go. First of all, I understand that Jay
has been incredibly generous and has been given every one of you a copy
of the One Minute Millionaire book. Is that correct?

Audience: Yes!

Robert: Would you give Jay a very big hand for doing that?

(Audience claps)
Robert: Also I want you to realize that you are literally in the presence of
one of the greatest marketing geniuses in the world history. I'm not saying
that because I know Jay, I'm not saying that because we have been friends
for years, I'm saying that because the following his advice, this guy advice
right here, generated tens of millions of dollars in our business that was
not been there if it hadn’t been for his genius. And so I'm speaking from
personal experience, having written very, very large check to this man
over the years, I'd like you to know that it is paid off enormously and
thank you very much Jay for that.

Jay: Robert, thank you for your acknowledgement. You're graciously

welcome.

Robert: I came to Jay back in the early 80's, we were launching a book
called ‘Nothing Down’ and made this crazy statement with someone you
might heard (unclear 02:30) please take away my wallet. Give me a
hundred dollar bill and in 72 hours, I'll buy an excellent visa using none of
my own money. And we were launching a series of books and seminars at
that time, the book nothing down just appeared. It was quickly becoming
something that was waving on my (unclear 02:47) imagination. It was
becoming the number 1 New York Times best seller. I'm just from a small
town of southern Alberta, Canada. It was wave beyond something that I
can possibly imagine, I remember flying down to (unclear 03:01)
California, just sitting in Jay's house and I'll never forget the conversations
that we had there, it was very extensive conversation by the way. We're
very comfortable conversation for me.

Jay: It was interesting, I remembered it.

Robert: What was the name of the book that you gave me from?

Jay: Scientific advertising of my life and advertising one of the two.

Robert: Yeah, I was so excited to advertise it which I have but in our

house we have fiction bathrooms and non-fiction bathrooms.

Jay: (laughs)

Robert: It all depends what I want to read fiction that day while I'm
enjoying.

Jay: I understand.

Robert: You got it? And in our master's bathroom, I have a copy of
scientific advertising that I pick up and read, you know..

Jay: It's almost 20 years.

Robert: Even to this day.

Jay: Just 20 years ago

Robert: (unclear 03:50)

Jay: That's great.

Robert: Using that experience from that point on, we created a series of
seminars. It's over a 100,000 people and 500,000 people. It's already 50
million dollars and (unclear 04:04) and then with my partner Tom Peter
with Jay to help, we helped to market over 20,000 people and 5,000
dollars a piece in the real estate seminars. Great success on my career
but I'm here to talk to you is about the success, because every once in a
while, you’re going to experience (unclear 04:22) in your career when
you're going to lose it all. If you really roll the dice, if you're really an
entrepreneur and you're going for it. You're going to make mistakes from
time to time and that mistake happened for me in 1986. Some of you
might heard me talked about it, but everything was flying high as I could
fly and then we're going building a beautiful mountain cabin 10,000
square feet. The most magnificent architecture you could possibly find
right across the valley from (unclear 04:48) dream home in Sundance,
Utah and an avalanche came down one February the 13th 1986, and so
we say it changed my life. (Unclear 05:01) you know you've moved along
in your businesses and every once in a while you might get blind-sided by
things that you haven't anticipated and Jay mentioned that one of the
words that you could put beside my name is the word resilient. As the
matter of fact, you just read some very interesting research that shows
that entrepreneurs are the bunch of the group or some of the most
resilient people in the world. And why is that? Because we bounce back
from so many things that have struck us in the blind side, I want to ask
you, how many of you have ever lost money trying to make money? Let
me see raise those hands. Sometimes as entrepreneurs, we are very
independent bunch, we want to think that we did it, one of the reasons we
leave corporate America or we leave working for somebody else, is
because we want to believe that we can pull it off on our own. We want to
be our own boss. Sometimes, that's the big weakness that we have as
entrepreneurs. We try to do all by ourselves and we don't bring the
powerful people to help us. What I'd like you to do is – now that you have
the One Minute Million Dollar book, I want you to go to the website at
oneminutemillionaire.com and I'd like you to…

Jay: Going to leave you alone, Bob.

Robert: (Unclear 06:14) so hot surface. Did Mark talk about that when he
was talking about it the other day?

Jay: No.

Robert: There's a survey that talks about the four different styles you
need to be as an achievement, if you have people that you're working
with now, you absolutely need to know what your team consists of. If it
consists of heirs, owls, horses and squirrels and I'm not going to describe
what those four terms mean but I'm going to tell you that each of you
needs to be one of those styles and each of you needs to have a team
that's based on people who have the other styles, because most of us just
like Jay right here, Jay is a brilliant, creative, he's the heir. He just rocks in
the (unclear 06:53) he can but Jay you have also people on your team that
follow some detail that you're not good. Aren't you?

Jay: Sure, lots of them.

Robert: The answer is yeah.

Jay: Yes, yes. Absolutely, certainly.

Robert: I need you to (unclear 07:09) those kinds of people back then,
you know, back in 1986. That's everything (unclear 07:15) population that
didn't follow my intuition. Each of us as entrepreneurs have these (unclear
07:21) hunches that really kind of let you know what the deal is, whether
it's a good deal or bad deal. Sometimes, I say that our hunches are a
result of flickering flames of truth that each of us have inside ourselves.
On the either side of these two, these are flickering flame of truth, are
these two bullies. One is a bully of greed and the other one is the bully of
fear and frankly it depends upon which bully you listen to. Sometimes you
listen to the bully of greed and say "Yeah, let's go for that! Let's make
millions!" The real question I want to ask you there, is have you ever
listened to your intuition on that? Can someone get me a glass of water?

Jay: And Bob, one second, if you can't, I don't know what are people - it's
a little bit of feedback and they think it might be - is there anybody there
that can adjust where your position is to the mike a little bit, because we
want to hear clearly everything you're saying. This is (coughs). That's
great! Thank you! Where's Nick? Nick where are you?

Male Speaker: We're trying to get away.

Jay: Is that better? Help me tell them what to do. Make it better so we can
make sure we hear every word. Is that better?

Robert: Can you hear me okay?

Jay: That's good. You're great.

Robert: Is that better?

Jay: Yeah, can you hear me now? Can you hear me now?

Robert: I'm going to come down a little bit closer to the mic.

Jay: Okay, how do we adjust it?

(Audience laughs)

Jay: Stay right there. We'll fix it, it's not a problem.

Robert: (unclear 08:49])

Jay: With our world class technology, okay. I love doing live-demos in real
time. (laughs) It's seamless. It really impresses you, doesn't it?

(Audience laughs)

Jay: Okay, this reminds me what live TV must have been like in the 50's. Go
ahead.

Robert: So follow your intuition, follow your intuition. In this case, this is
back in 1986 - can you hear me now?

Jay: Pretty good. It's nice. It's good as it can be given the technology. Go
for it. 1986.

Robert: There you go. The technology that the entrepreneur is to figure
out what you're - what that intuitive hunch that you have is and do not be
persuaded by the bullies on either side. The bully of fear and the bully of
greed, those are the two things that get you the most trouble you can have
as an entrepreneur. In this case, I followed the bully of greed. There's a
huge piece of real estate - I mean block in the city I was investing and I just
had to have it. It was an ego plenty. It has nothing to do with intuition and
I bought it and it turned out to be huge mistake - a big, big mistake and
then followed up by avalanche that came down and swipe out my mountain
cabin. The base has to buy this one big block of the city. I had put up
everything I own, my real estate….

Jay: Virtually you were egoist at that time, right?

Robert: I was egoful.

(laughs)

Robert: You never been there?

Jay: No, I've never been the ego land. Is that like Lego land?

Robert: (unclear) ego land. (laughs).Been there, done that.

Jay: Possible. Yes, I have.

Robert: Divided a big piece of property. I had to put up everything I own

and one of those pieces of realty was our beautiful mountain cabin 10,000
square feet, the most magnificent architecture and when an avalanche came
down and wiped it out, destroyed it – literally destroyed this mountain cabin.
The insurance was not paid insurance because it was an act of God. What
else is there? You know?

(Audience laughs)

So they wouldn’t pay the insurance and literally within a 90-day period
time, I had a 10 million dollar net worth that was below 3 million dollars in
the hole. It was a very devastating, horrible, rotten, terrible experience.
What you learn from not following your intuition but more importantly, the
lessons I learned from that, is it did really wipe me out. It just took me to
rock bottom, I don’t know if ever anyone of you have been there before but
that's where I had to start from again and I had to follow my intuition this
time and say what do I want to do with the rest of my life? One thing that
happens when you lost everything because the most magnificent, clean,
clear, starting from nothing experience is you get to ask yourself the
question: "Okay, now I have nothing left to lose." A lot of you guys have
too much right now. You have too much stuff. The stuff of your life is kind
of blocking you from really doing what you're born to do, because you're
afraid to lose your stuff. But once you've lost all your stuff, you had this very
clear mindset and say, Okay, I don't have anything left. I've nothing left to
say, I don't have anything to protect, just all gone.

Now what I'm going to do with the rest of my life? And starting from that
position, I said we are going to start from scratch. I can do the same thing I
did before, this I’m going to do it smarter this time. Before when I made up the
money, nothing had happen so quickly. I mean millions of dollars in retail
market; it was just like almost 2,000, I didn't appreciate it. This time I said
we'll make it again, we'll make it smarter and I'm going do what I love to do.
As an entrepreneur, you don't want to just launch a business because it's going
to make you some money. You have to launch your business because it's
what you believe in. It's what you're passionate about, then I had to start
from scratch. I remember the first time when I teach Jay having session
here because this time I was teaching people who taught that I was rich
and the truth of the matter was flat broke. I was totally bankrupt and I was
teaching about money. For the first time in my life as I stood in front of
them, I felt this twinge of guilt. One of the twinge, it was a horrible rush of
guilt to save myself. Here I am just mostly talking about wealth and how to
make it and I have less wealth than the audience that was listening to me
and I said you know, I’m going to tell the truth. For the first time, that felt
wrong, doesn't it?

(Audience laughs)

Jay: You're going to reveal more of yourself, than you had before.

Robert: I'm going to tell the complete truth and I said to the audience, they
paid a thousand dollars to be there. Supposedly talked to the group and I
said that you know, there's not a person in this room that has lost more
money than I have. There's not a person in this room has the worst credi t
rate than I have. There's not a person in this room who have less hope
than I have. But guess what, I'm going to use the same principles that I'm going
to teach you, this is back in 1986. That I'm going to use those very same
principles to take me back to where I was, faster this time, but this time to
make it in a way that would last and to make it in a way that was permanent.
As you entrepreneurs was there, I want you to realize that you're a very
special breed of (unclear 4:08) in this country, this country doesn’t work
without you. You're like that little bird that I thought in Hawaii when I was
there with my wife and there's a little sparrow was landing around my
breakfast table and I was flicking crumbs off my breakfast tables to these
sparrows that were there. (unclear 04:28) of crumbs like crazy and I thought
that there was an entrepreneur in this group and I wanted to check it, so I put
a nice big piece of muffins right from the edge of the table and this one
capital bird lying on the table and he was really skinnish and he was worried
about me but he finally came over and got that piece of muffin nibble up
and then dragged it off the table. So this lands on the ground and all of (unclear
04:50) we have another entrepreneur in the group. I put in that big chunk of
muffin right there on that closer to the table and once again the
entrepreneur of that group, he just pecked away and then he dragged it off
the table for everybody else.

That's what entrepreneurs are, that's what you are. You're that bird that dares do
what none of the other bird dare do. You're given a God given gift to do things
that people don't dare do. And the only thing I’m going to try teach you from
this point on is that you follow that intuitive hunch that you have. Check
with it regularly, check with your intuition. You got to know whether the deal is
good or not. You don't even have to look at the numbers. There's
something about the mechanism of your body that's the most sensitive,
collaborating mechanism in the world. You can kind of know it. You can kind of
sense it. The people you're playing with, the deals, the numbers, the
properties, whatever, you’re going to kind of know instantly. You will know
whether it’s good or not. And then you go back to numbers just to verify
whether or not your hunch was right but the bottom line is you got to follow
your hunches and don't get too carried away with the greed and certainly,
don't get carried up in the fear that's stopping you from doing what you
really need to do.

I got to give great credits to major (unclear 06:14) that I have in my life for
teaching me how to follow those intuitive hunch, teaching me how to be
humble enough to realize that I can't do it all and more importantly I can't
do all by myself, that's why I bring people like Jay in on the teams that we
formed. You got to bring the best team and the best are expensive. The best
are always free, because the best are always going to give you (unclear 06:39).
They're always going to give you 10 times more than the cheap person would
give you. It's always free for the best. I wanted to just acknowledge you
for taking the risk to be in the room that you're in. To rub shoulders with the
other sparrows, those little birds in our society you're in. That's a whole
room full of them. I want you to take your right hand, place it over your left
shoulder, pat yourself on the back; I'm on that little bird. Make sure to touch
your neighbor's shoulder. Say "You're that little bird."

Audience: You're that little bird.

Jay: That's good. Bob I want to ask you. I know you're out of time but there is a
couple of things I think you can nestle into your conversation that might be
very pivotal. Number one is your attitude about - I believe in the geometric
pillars, the Parthenon approach. You believe in multiple streams. Translate
that for existing entrepreneurs, also you're not audacious but you want to be
distinctive and you like challenges and you like controlled and hedged
dastity. I'd like you to talk about because certain people here are a little more
timid and a little more let's say shy or a versed to doing some of the most
powerful things that will propel them to the levels that they really want to
go to. You give us a little perspective.

Robert: Well, the two secrets - Mark talked when he was there the other
day about the fact that all of you need multiple streams of income, Jay calls it
did a Parthenon. I think I have a better metaphor and that is mountains
and mountains streams of income. There are four mountains that you're
going to build your world from; you're going to build up with the streams
income coming from the real-estate mountains. You going to build streams of
income that come from the investment mountains. You want to have
streams of income flowing in from own your own business mountains and
then from the internet and I'm going to challenge you to have streams of
income coming in from all of those things. The second stream is you got to
make money while you sleep. Now, we're thought in our society that you
should go get a job, work for somebody else, y ou know, get the goal latch down
the road. What you're going to learn here in this talk with Jay is that why you
don’t get the goal latch now? Do it now! And the way you do that is you
have to create streams of income that flow in while you sleep and this means
going against the grain. You know, I don't know who these guys were back
few hundred – two hundred years ago sitting back with their cigars and they
going you know I think we're going to start - we are going to have them go to
college, that’s what we will have them do. Four years of college that would
cut them deep in debt, so they have to work for us and then just before
they get ready to retire (laughs) (unclear 02:30) I mean what kind of pillars did
you buy? What I was saying is just you need to launch your own businesses
and you need to quit listening…

Jay: Bob, juts to be sure, 99% of the people in this room have at least one
and some of them they've done very well but I want them to do better. I
want them to know your attitude about hedging yourself and how you build
your business, you got internet, you got joint ventures, you got this and you're
audacious. You challenge the media. I want you to for just a couple of
minutes spin that because they are already passed that. They're there; they're
opening and closing the door there. They're butts are on the line, so that's
already done. Take them from there.

Robert: Well the first challenge I did was (unclear 03:20) take away my
wallet gave away a hundred dollar bill and 72 hours of my excellent piece
of real estate using none of my own money.

Jay: That was your claim and the times that LA Times challenged you.

Robert: The challenge. Now, I didn't know at that time that that would
become my thing. You know challenge. If you look at the word challenge
and has my name in the middle of it. Ch-allenge.

(Audience laughs)

Robert: And I just know at the time that that was going to be my homework
but I don't always felt that if you have a business, people are skeptical and
therefore you need to make an outrageous promise.

Jay: That you can deliver on? That you can deliver on?

Robert: And as a matter of fact Jay, I think you need to make an

outrageous promise that you don't think you can deliver on but then you
re-engineer your entire business to deliver on that promise.

Jay: I like that. I like that.

Robert: Let me give you an example. When I wrote the Moment of Streams
of Internet Income, I said you know sit me in front of any computer, I'm going
to make $24,000 profit in 24 hours. Well, that means that when I make that
statement came out of my mouth I did not know how to do that but I tell
them it's good. (unclear[00:04:28]) to do that? So I pulled all the experts and
they help me figure out if I could sit at the computer, push a button and
have a 24,000 bucks going in 24 hours. We did that count for live cameras
and actually made $94,532 in 24 hours - a hundred grand.

Jay: You did that in the unemployment line too, didn't you?

Robert: (unclear[00:04:49]) unemployment line, send me to any

unemployment line someone who is broke out of work and in two days time, I
teach them the secrets of wealth in 90 days with (unclear 04:57 ) feet with
5,000 cash in the bank. Never step foot in an unemployment line and
again, these challenges are - there are statements that I make and there I
can figure out how to do them.

Jay: Okay. I'd been there.

Robert: The one-minute millionaire. I mean a lot of people kind of think

it's like the one-minute manager where you're doing one-minute
techniques and one-minute strategies in a sense that is true, because the
book - the One Minute Millionaire breaks the process of (unclear 05:24) well
down into those little one-minute bite-sized pieces. But we are literally
going to do our One Million in a Minute challenge because actually it's right
there in the book. It's worth the end of the book you're reading. We're
going to be on some major talk show probably you know one of the that starts
with O or one which starts with an L, I don't know. One of the major ones and
we literally in 60 seconds, we're going to push a button on a computer and
we're going to bring in over a million dollars and net profit in 60 seconds.
Now, how you do that?

Jay: How do you do that?

Robert: Well that's the next seminar, Right?

(Audience laughs)

Jay: We'll talk about it later.

Robert: Is that the 50,000 thousand dollar seminar, Jay?

Jay: Yes, that is, Bob. So when we talk about - how can they - can I all be a
more audacious? And is it in their best interest?
Robert: Well, I'll just try to teach them. What I want you to do to your
businesses is to make an outrageous claim that you know you can do, and
then figure out how to do it. So what we do with this challenge, with the
One-Minute-Millionaire, we did not know how to make a million dollars in a
minute. We did not know how. But once you started writing the book, you
said let's pull it all major experts and let's just figure out how. The first
step is how to a million e-mails, which we now have. Let's takes over a year to
gather a million of e-mails of people that we know - the people that are
friends of ours, this is not spam. It's an often e-mail list. We just read it
backwards, we say let’s see if (unclear [00:06:51]) a 10,000 dollars seminar,
how many people do we need to have out of the million people, in order to
a million bucks. Think about it for a minute, 10,000 dollars category we
spend a year with them. We give them 5 days of business (unclear
[00:07:05]). We did a personal consulting, would we need to do for a 10,000
dollar fee? And we figure it out. Let's try a million e-mails; we would need
them a hundred people. What percent response is that? That's a 1%
response of a 10,000. We'll we don’t need a hundred, so o ne tenth of 1% of a
million is a thousand. So it's one tenth of one tenth of 1%. If I could find a
hundred people out of million people who'd want to do some personal
consulting for 10,000 dollars, that's a million bucks. Well maybe that’s little too
stretching for you guys. What if we have a thousand dollars seminar where
you're going to take your information and your ad and you're going to give to a
certain numbers of people to help share with them. A thousand people
times 10,000 dollars is a million dollars.

Jay: Translate Robert. Translate if you can, give me a little bridge. You got
300 different industries in this room, so stretch your analogy a little bit.

Robert: Each one of you has enough information on your own industry, that
you can share that information with people in a non-dependent way.
Though where the information that's in your head is worth at least a
thousand dollars to a thousand people. In other words I believe very single one
of you has a million dollars in your head right this second. Not something you
have…

Jay: Defend your industry. Why within your industry?

Robert: Within you industry, and even within your own life experience?
(unclear 08:37) to be an industry experience. This is your own life
experience that every one of you has a million dollars in your head right
now. And of course the secret is finding the people that you share that
message with and how you enlarge that list that can last you and in our case,
we're going to make a million dollars in 60 seconds by sharing your life
experience. (over lapping sounds) challenge you. You have that 10 million
dollars in your head as well.
Jay: Few more questions and I would be mindful for the both of you. The
first one is share the diverse ways you grow your business so they can
understand that multiple streams apply to how you operate because you got
- you had the e-mails. You got the space, you got the 39 dollar, you got
the free classes. I think that's pretty cool.

Robert: We have dozens of ways that we bring money into our business,
dozens. We believe in multiple streams of incomes. We do free (unclear
09:29) that brings people into our life. We do infomercials. We partner with
the companies that does (unclear 09:36) promotion based on the all the
money we don’t spend a dime.

Jay: They run full page ads, they do media, they do infomercials.

Robert: You know infomercials, that drives people into a flask that a flask
and then from the back end we teach a more highly personalized ways.
We do e-mail blast, we do direct mails, we do all those stuff for (unclear
09:57) dollars.

Jay: And cumulatively, the cumulative effect, it’s not only success but it's
stable hedged certainty, isn't it?

Robert: Yeah. You need streams of income that are flowing in while you sleep.

Jay: And everything won’t work, everything won't work when you test it? One
more question, I'm stuck stepping over you. One more question. You've
had a pretty long term relationship with me. You've seen the attributes,
you've seen what - mentally-dysfunctional with my ADDs (laughs) but I
want you to give one recommendation to these people knowing that I'm
trying part of it that I ever have to teach them not only marketing but
strategic thinking. That you would urge them to do when they get home
other than what you have already said about your knowledge of my
stuff and what they should absolutely do with it to make sure they get the
greatest outcome and payoff from their investment of time and effort in
me.

Robert: The greatest return on your investment is understanding

Marketing. It is the single most important skill that you can learn. That is
your job - understand how to convince more and more people to flow into
your life and Jay teaches about it with anybody else. You got to learn how to
find more customers. You need to learn how to find each of those customers
buy more stuff on (unclear 11:17) and you need to know how to make those
customers buy more frequently. If you just do all those three things, just
really simple, it can multiply your business by 20-fold and the master of
teaching that stuff - you created all that stuff, who is the Einstein of that
stuff, is the guy that stand right here in front of you and that is something that
is hard to understand.

(Audience laughs)

Robert: But get it. Get it, because it is the most powerful stuff that will
change your business more than any other and hopefully one of these days
you and I are going to write a book together about it Jay.

Jay: I like it. Rob, you've been a great, great friend. Thanks for taking time
out. Any question you want to ask us that we can help answer for you.

Robert: Do what you love to do. What do you love to do?

Jay: Great. Thank you and have a great tour.

Robert: So that when you wake up in the morning it’s not work. I got up
five o'clock in this morning getting here and after flying and getting here, it’s
one o'clock in the morning from California. We got to a lot of CR on two
television shows earlier night that we have two things to open my eyes this
morning. So the question was sitting on that show with Mark, I felt like this is
one that I was born to do. In my message is that teach people that it is
possible to achieve incredible success that if you don't in the middle of all
those prosperity, living in a miracle in North America, where else you’re
going to do it. You find something that is so empowering to you. When you
get up in the morning, you can't wait to talk about it. You can't wait to
share it.

Jay: I have one more point. I want amend and ask one more. I believe the
biggest mistake most business has is they fall in love with their product or
their company, not their clients. Do you have a perspective on that?

Robert: You’ve got to find out what they want and then give it to them.

Jay: Okay.

Robert: It’s just really, really simple. And that’s what we’ve done over the
last 20 years, we’ve just found out what people want and we’ve just given
it to them.

Jay: But you have a lot of respect and empathy for them, you really do
and I think that’s critical. You’re gracious. Thank you so much. Say hello to
Mark and knock ‘em dead. Bye bye

(Audience applause)

Jay: Thanks a lot, okay. Apologies, I love the technology but when you
throw it in a situation like this and I spent no time so my colleagues in it
are to be admired because they’re making do with a really awkward
situation in power source and everything but pretty cool, right?

Audience: Yeah.

Jay: And he wasn’t even scheduled. I’m very lucky. I mean I’ve helped a
lot of people but they reciprocate. I can say “Hey Bob, what are you doing
Monday morning at about 9 o’clock? Or I’m going to be doing an interview
on CNN at about 8:30, well I’d like to go right downstairs and there is a set
up there. Okay, I’ll do it. Uh oh. We were wrong by 30 minutes and 30
miles. What do you mean? Well the facility is somewhere else. I’ll do it.” Ill
then write him a cheque. It’s pretty cool to have people that will do that
for you with no alternative other than they want to give back. Pretty cool,
okay are we ready for William?

Male Speaker: We are.

Jay: Okay, I got to set this up. This is so neat. Jay Abraham is all about
subtle, subtle, subtle leverage. We were going to an exercise, I don’t know
if they did it. We were going to turn the lights off on the art and show you
the difference. We talked about headlines, we talked about their
equivalents, we talked about all kinds of ways to get 20%, 50%, 100%,
500% leverage on 30-40-50 impact points. I didn’t get to the depth that I
probably wanted to earlier and hopefully get some of today but that’s
covered in so many categories and the grounding materials and the things
we issue to you on Day 1 and the stuff on Day 2 but leverage upside is
where you transform your company. Improving 20 or 30 impact points,
5%, 20%, 50% is how you get hundreds or thousands of percent
improvement on the result, on the profit. You get that and it’s a lot of
littles that make a big difference. I got a sleeper for you to die for and
because you’re entrepreneurs, it’ll even be more leverage because we as
entrepreneurs don’t usually think about how we come across; posture,
position, pre-eminence, pre-emptive, look, communication, confidence
and yet that’s very, very important. It’s even more advantageous to a
small entrepreneur because my concept is there’s this scale and every
little factor you can weigh in your behalf means that you’re going to get it
and they’re not. In all due respect, most of the entrepreneurs I meet don’t
dress very well, they don’t come across with a great posture and they
don’t realise that that is as impactful, or that is as detractive in the
process of gaining and sustaining the advisory relationship with a client as
anything else.

We’ve reached really far to do something really daring and the poor man’s
had to tolerate my audacious clothing for the last couple of days. We got
William Thelby who was not only the original Marlboro man, he’s an actor
but he wrote the book, “You Are What You Wear”. He also wrote the book, I
brought it up; “Passport to Power” and he wrote the women’s book which I
didn’t bring up, which is “Women the new Power Club”. He is one of the
neatest, strategic, communication consultants in the world. His clients
have included three presidents of the United States and the heads of
many, and not the fortune one thousands but the fortune ten thousands
or twenty and…

Male Speaker: Individual, other top people in the country.

Jay: Who are very wealthy and powerful and impactful and authoritative
and highly, highly, highly impactful men and women. And I asked him if he
would break his paradigm, shutter his way through thinking about how to
transform entrepreneurs not into only wall street bankers but into men
and women who could use the leverage of strategic communication
impact more powerfully. And then we exacerbated by stating you got to
teach them all this in 15 or 20 minutes. Go for it William! And he started
by watching me and saying “Oh my God!” so with that state is that a fair
enough opening for you?

William: Sounds good to me.

Jay: Have fun man! Thank you, I really appreciate it.

(Audience applause)

William: Thank you very much ladies and gentlemen. I’m delighted to be
here and I appreciate very much the opportunity to speak to you. I’ve had
the real pleasure of meeting a few of you. Had lunch, breakfast and dinner
and sitting there rapping with you, I wish I could sit down with each one of
you. I talked to Jay when I come with this thing and I said “You know, this
is a very sensitive subject”. He said, “Bill let me tell you something.” He
said, “I love these people. These people are the heart of America. They’re
the one driving America. They are going to be our leaders. You go out
there and tell them the truth. You bring them into the reality. Into the real
world, and I love you for it.” Here you are pal, its coming straight at you,
it’s coming hard and fast, it’s coming right from my heart. I don’t want you
to go out there and make a fool of yourself like I did. I don’t want you to
get your heart broken. I don’t want you to be at my age and still have cuts
that are bleeding. Because I didn’t understand that we live in a totally
different kind of society today. Now there’s always a couple of guys that
say, “Listen dude, let me tell you something.” I do it my way, I package
myself, I do it because I’m a producer and I can go to any company and
get a job. I got news for you pal. That isn’t the way it works. Lee Congo
thought that and when Ford fired him, the media said “Mr. Ford, why did
you fire an automotive genius?” He said “Why? I didn’t like him.”

Now get that straight, we men, we don’t fool around. He jeopardised Ford
motor car company. If you can just understand that you have one
opportunity to set up a condition expectancy of trust, knowledgeable and
sincerity. You will learn these skills, it’s simple. Like all the great stuff in
training you’ve got this week. But if you don’t this, if you don’t get these
facts into your head and move on them, someone half as nice as you,
have as smart as you, half as intellectual as you are going to leapfrog you,
they’re going to take your dreams, your hopes and your client away from
you. And you’ll say, well they’ll be sorry. You got ten years to lose? You’ve
got all this money to lose? Of course you don’t. So you got to start
thinking about grabbing this. All I ask ladies and gentlemen, put it in your
head, I wish I could give you all a Velum just to sit back and relax because
it’s coming hard. Sit back and say this old dude may know something; I’m
going to consider it. There are two things that happened in your lifetime
that I didn’t have the advantage of when I was your age growing up. When
I was growing up, I knew my mother and father; we lived in Bad Axe,
Michigan. We lived on a farm up there and everybody knew how much
money my dad made, how many dresses mother had but that’s all
changed now. There are two things that changed the world. Number one,
we are in the greatest migration in the history of the world. We’re in a
world of strangers now. There are not southerners downstairs; I read these
books where I studied, there are no southerners downstairs, there are no
northerners up there, my daughters go to Europe. Hell, when I was a kid, I
never went to Florida.

(Audience laugh)

Now everybody, we live in a total world of strangers. The second most

important social influences in the last one hundred years are the
automobile, movies and television. And all studies indicate that the
television is much more persuasive. Why? Because it gets right in your
home, all of you people have television. Our children spend more time in
front of the tube than they do with family, in school and church combined.
Now they’re the surrogate teacher, the substitute teacher. But it
inculcates on our mind a frame of reference. People down south have
never been to Harlem. They know all about Harlem. How? Called Jack to
come up there and says “Hey Syros, you want to see what a crook looks
like? Look at this dude coming down the street.” The wardrobe man
packages that man to look funny. So every week, every night on every
show, we interpreted people and are given a frame of reference with the
good, the charismatic, the degenerate, the pimp, the alcoholic and what
they all look like. So you and I are walking down the street and I say “Hey
Jim, you know him?” and he says, “Oh don’t want to know him. That bum.”
Why? Probably a nice guy, but he’s packaged to illicit the cues and clues
that immediately transform into our brain and we calculate who it is.

We as wonderful human beings buy a great suit and I don’t care about
that suit. I don’t care about that big watch you got on. I don’t care about
those alligator shoes. I’m looking for character flaws. I’m looking at you
and saying “Hey, what are you not telling me?” Come on what aren’t you
telling me? What could he do? You got to get it through your head right
now ladies and gentlemen. There are three things in this world that aren’t
funny, aren’t cute or aren’t negotiable. That’s my money, my family and
my future, just like every one of you. And you all think it. Beautiful lady
here said “listen, I forgot my money, could you loan me a hundred
dollars?” “I’ll mail it.”

You see right away BOOM! Adrenaline hit her hard. She’s more awake now
than she’s been in the last three days. Why? Because I’ve touched one of
the three things that affect them, so you got to start thinking about all
these things that have changed our world and now become important to
you. This is terrible. This is terrible but this is reality. I’m sitting out there
and I see a guy come up and said “I made a million bucks” and I’m
thinking, “That guy makes so much more than I really do”. Then I look at
him and say well, if he’s doing so great, what is he wearing that dirty
sports shirt for? Number one, I wouldn’t even own that sports shirt and I
wouldn’t appear in public in it. And the guy says “I just got my hair cut,
what do you think?” Who wants a fool-fool hair cut? I do business with
people who I can trust. I do long-term business with people I trust and like.
And if you’re not there pal, I don’t care who you are. Corporate has a very
sophisticated way of flushing out those that aren’t sophisticated. And we
won’t say it to your face because you’ll probably sue us now. In the old
days we would have threw you out. Now we have a sophisticated way of
plateauing and then flushing you.

Now you want to start thinking about everything you have on. This is an
exact science. It’s called impression management. You attempt to control
other people’s perception of you by the way you package yourself. Now
you’re just tired of hearing all this garbage about I don’t want a blue suit
and a white shirt. Well where is it? Is it home? Why trust what I see?
Studies show that the eyes are sometimes more connected with the brain
than the ears. So the eyes would input when we gather information to
interpret and understand who you are and how you are coming at me. We
live between hope and acceptance. That’s where 95% of the people live
in. The winners live between hope and just drive. Every winner that wins
has one thing in common, they go out and do it and they always believe in
their heart that the answers will come forth. And that’s what you’ve got to
do. And you’ve got to start thinking that everything you purchased to
wear that, “What is this saying about me? What is it saying about me?”
And I tell you ladies; don’t put anything on display that’s not for sale.
Because you’re going to get somebody out there that’s going to ruin your
career and he’s in the business and they’re going to start saying things
about you that aren’t true.

Everything you buy, you people look at your outfits and I know that your
designer is a four-letter word called “SALE”. Start thinking about putting
your money where you make your money and we’re all that way. I’m not
complaining about you, I’m telling you about myself. I got four, fabulous,
beautiful daughters and believe me, I adore them and I give them a
cheque Christmas time that I wish somebody gave me. Now I’m looking at
the thing here to fix my toothpaste so it’s always filled and its $3.95 and I
say “Well I’m not going to pay $3.95 for that thing”. My value system
stinks. You got to start thinking, put your money where you make your
money.

Now we don’t have time to go through all the things you should be doing,
by in the way you buy your clothes but the way you package yourself is
the only tangible evidence that I see in front of me. Now the three most
prestigious research organizations, I guess in the world, Harvard
University, Stanford university institute and Cardy institute; they studied
why one person becomes a success and not the other. And they all came
up with the same answer, 15% of the reason that you people get a job,
hold a job and advance in a job are intelligence and your skills. 85% of the
reasons you get a job, hold a job and are promoted in a job are people
skills. That ability to walk into a room where no one knows you and set up
an instant condition of expectancy of a person that’s trustworthy,
knowledgeable and sincere.

If I had the whole day, I guarantee you, if you’d grab these things and run
and get on a plane and go to any place in the civilized world, when you
walk off that plane, you’ll be a person of substance, background and
ability. And proven success and I am open to anything you say to me,
anything you want to say to me, at least I’ll consider why, because you
look more successful than I do. Tricky clothes are for tricky folks. And you
start buying all this stuff saying “Bill give me a break. This is down time! I
was told to wear a jean.” Wonderful, why did you wear your dirty ones?
Now come on, you’ve got to start thinking about what you really put on
your back. I look at some of you and I don’t know if you’re the janitorial
service or you’re probably making more money than I do. It’s wrong,
rotten and immoral but this is the way the world is run. So what’s new
right?

So the second thing that we make a great mistake in is what we call

“physical management”. Physical management is the language of the
silent gesture. Now if I walk into you and you say “Well Gee Bill, it’s pretty
sincere there and I sort of trust him” and then now big Bill opens his big
mouth and you say well “Bill do you really make a great living at what you
do?” And I go “[laughs]…well sure!” Well you know right there I’m dead
right? I’m dead in the water. You’ve got to start thinking to yourself just
like you’re going to the gym. You’ve got to everyday. Remember people
who go to the gym, you should all go but remember the first day you go
“Gee, look at these dudes”, all dressed up with the big muscles and the
women with - and then you sat down and you started going like this.
Three weeks man, you’re going to your buddies and you’re saying “Come
on to the gym and I’ll show you how”. This is the same thing; you’ve got
to discipline yourself. I got

Jay Abraham Mastermind Marketing 26

William: Oh sure! You know right there I am dead, right? I am dead in the
water. You have got to start thinking of yourself just how you are going to
the gym. Remember, people who go to the gym say, "You should all go",
but remember the first day you look, "Hmph, jeez! Look at these dudes.
All dressed up with their big muscles." You sit down and you do your
routine. In three weeks you are going to your buddies and saying, "C’mon
to the gym and I’ll show you how."

(Audience laughter)

William: This is the same thing. You have got to discipline yourself. I
relate this all to the gym. If you can think when you were a little boy or a
little girl, when momma held me up and said, "No, c’mon Bill, put that leg
- Oh aren't you wonderful, aren't you wonderful you got that little leg up".
It got to motor movement going. When after a few days of that, little Willy
here grabs a chair and pulls myself up and I am walking by myself. That's
motor movement. Then it goes into muscle memory. How many of you
people have lessons in walking. How many people have lessons in what to
do with your face? How many people have posture lessons? We don't have
time for that, right? We just go out and do it. So, here we walk in a place
and the guy's walking in like that, [unclear 00:01:16.23] probably got a lot
of muscle but no brains. You got to start thinking about everything you do.
You got to see the way you walk. Everybody gives it away from their face.
You change the look on your face you go, "Huh, hello, what you doing?", "I
don’t know...", "What?" "Eh..." You got to start thinking. This is the mirror
to your soul. Then you wonder why we abuse you. Why we gave you the
lower salary. The president of the company told me, you haven't filled that
job - human resources - 75 big ones. You say, "I got a guy coming in. He's
got a tremendous bio". The guy comes in he sits down. He says, "I really
like him. Coz I see - boy you’ve got the smarts, you‘ve got the looks, you
got the appearance you got it all; but I look at your shirt and I can tell you
have worn that shirt twice". I look at those shoes which he has tried to
shine them but they are little worn. So I know right away that I got to, "Oh
boy you are a sucker, I could work". So I say, "Well, look, I love you and I
am going to give you a break. This is a blind ad. We are not even hiring. I
can't guarantee this but I am going to speak to the president of the
company and see if they will hire you but you know, we are not Bill Gates.
I can give you 45 thousand to start. But, there will be continued escalation
of salary". This is what happens every day. I know by looking at you that
you are struggling. I make it a point, when I walk down the street and I see
a guy passing on something, I always take it. I figure, there's a guy that's
got a 100 bucks to change for his whole business. What does he figure
would really hit me in the heart and change me? So I go home and look at
it. I try and learn every day to improve my skills of walking into you and
saying hello. You know physical management - I have to teach half the
executives in America how to shake hands. Think about it. These are
mature guys making a $150,000 a year, can't even shake hands. There
are three things you got to know. When you shake hands is same as when
you walk. You’ve got to start thinking your face. The face gives away
everything. Get that nice pleasant look on your face and if they say, "Bill,
would you like to buy these?", “Nah, it's all wrong, we have already
bought something like that". (Gesture) You keep that same winner look on
your face and you say, "Gee I am sorry you feel that way". And then shut
up.

(Audience laughter)

William: "Well, Bill I was thinking maybe it's not right for us now, you
know", "Oh..." Start thinking when you are sitting in front of them, how
you would do it. The third thing that you have to do in this thing, is what
you call, 'Verbal Management'. Everybody thinks they should never tell
them. I sit around you people and one says, "you are having a hip
operation, you have got a bad hip, you have got a bad elbow, my wife is
always sick" - you know. Do you think I want to hire somebody with a sick
wife? Do you think I want to hire you because you have a bad hip,
because you are going to be limping around my office all day? Listen, we
are very selfish people but you are telling me things which you should
never open your mouth about. You want to be the local bore. Whenever
you bump into somebody they say, "How you doing?" You stop and tell
them. All we want to know is, great, the best. From a scale of one to ten I
am flying on 14 - "How are you doing pal?" You want to shut them up say,
"Geez you look fantastic, things must be going well," he goes (gesture).

(Audience laughter)

William: You know it's always one, two. It's never ONE, TWO. When you
put something, in my memory bank or your memory bank, it's
irretrievable. Think about it. You can always keep your mouth shut you
know and not give yourself away. We men, I don’t know how we were
brought up, but we seem to think when we are out with our buddies we
tell them things we should never tell them. I bump into one, five years
from now and I say listen, "You are over that big company, are there any
openings over there?" What do I think about, that you are great guy and I
love you and we went to high school together? Remember old Jimmy and I
went to high school together. You think I remember that, No. I forget
where I put my glasses, I forget where I park at the mall. I never ever
forget that you told me when you were a kid you got caught stealing a
bicycle. I never forget you because you told me you went trick ‘n treat
with drugs. "Oh, I never do it anymore, Bill." That's what I remember, like
a steel trap. Because there are three things in this world that I don’t think
are funny or cute - my money, my family and my future - and we never
ever, ever change. When you start opening your mouth, you better saying
some good stuff. Now listen, this is the opportunity of a life time. One of
the fun jobs I had; I played Jane Mansfield husband on Broadway for three
and a half years. I was the most envied guy. Made love to her every night
in the hall. She started telling everybody that she had 186 IQ. I loved her.
She was a super lady but whether she had that IQ or not; I don’t know. But
it was in every newspaper of the world. The point I am trying to get to you
people is that you are like a jar. Every little drop you put in there, you can
put it. Do you ever think about it? But don’t be some idiot who says, "I am
really smart". That's a kiss of death. But if you do something, subtly, softly
and you so good at it that you are out on a party or something and
everyone's laying back after having a few drinks where they say, "This
was humiliating the other day. I went over and something horrible
happen," you say, "Listen, I know just exactly how you feel. When I was in
high school and they us IQ test and I was 190, I was the joke of the whole
school. Everybody teased me for my entire time in school." I'll forget
where I left my car at the mall, but I remember you pal. You told me you
had an IQ of 180. Now, the head of the company comes to me and says,
"Bill, we need two women and two men for an overview group at the
company." Who do I go to, my buddy, who knows where all the single
joints are? He who stands on his head and drinks beer, no. I go to my
buddy here that's a genius - why? Self-serving, self-serving, self-serving.
We insulate our self. I don’t advise you all go out and tell everybody you
are a genius.

Drop the vignettes that help. Jeez you people go out and give an organ
recital. "My kidney; I used to drink when I was a kid and I am having a
little..." What are you doing? You are poisoning the well. Now, I have
known a lot of people. All the celebrities I have jumped around knowing, I
worked with John Wayne; I was his double in the movies. I worked with
Sinatra. They all had charisma. You think boy, I wish I was born with that -
so do they. John Wayne told me a story when we was coming up and really
making a mark. He said that Garry Terry, who was a great, great character
actor, in those early days movies. As a friend, John had him in every
picture. He said, "I like to individualize the way I walk as a cowboy. I don’t
want to be like every cowboy in town." Garry said - an old timer - "the
silence of silence gesture and how they telegraph; John, I am going to
teach you in thirty seconds". He took John over, he stood him like this and
says, "John, when you walk, don’t like the other guys, turn your toes in just
a little and watch what happens".

(Audience Laughter)

William: Now I am not saying you people to start walking like John
Wayne. Jane Mansfield used to have pictures of Marylyn Monroe. She had
50 pictures in her dressing room. I'd go there at night and talk to her. She
was always going (gesture). By the time she went to Hollywood, she was
Marylyn Monroe. The idea I am trying to get across to you - everything you
do telegraphs to me who you are. When you stand up today folks, don't
just go (gesture). Go, Uwah! And start walking with some fluid grace.
People get out of your way. You'll love it. But if you continue going on like
you are now, pretty soon - George is so good - kiss of death. What this
world needs is no more tired blood. It needs people of energy who are
looking ahead and who can insulate my position, bring business to my
company, and add to my social structure; anything that can aid me. You
know when you learn, when you mature above it and really begin to do
well, you begin to let go of the fears and some of the angers you had in
there. You realize, for the first time, the only color the world really loves is
green. Like in green back. The only picture everybody wants is you know,
Roosevelt, Lincoln and all these guys, Hamilton. Those are the ones - if
you can show me how you can bring something into my world, I love you -
trust me. The fourth thing, 'Emotional Management'. Again, you get livid,
you feel it inside going, “Mm, Hehe...” You want to kill these people. First
thing you do is you ask yourself, is this criminal? And the guy says, "You
know, I am not going to buy it, we are filled - get out," whatever he's
telling you don't like. Ask yourself, "Is this criminal?" No, you idiot, are you
kidding. In the next thing you ask is, "Will it make any difference in ten
years?" In ten years, I wouldn't even know this guy. Then ask yourself,
why is this upsetting me? You have got to do this, so I can go to the gym;
it's not easy. It's simple if it's not easy. You got to do it like you go to the
gym every day. You have got to think this way. You write that up in a
yellow sticker, put it on the mirror up there and look at it every day when
you are shaving or putting on your makeup. Learn to detach. It is a power
you cannot believe. You say, "Listen guy I have got news for you. You work
in my company, we got this dude over there, John," I say, "Yeah...";
"Nobody gets along with him Bill, nobody. He hates everything I bring to
him - he says "What?"". Now I take you over to the side for lunch in the
company cafeteria and walk over to you and say, "You mind if I join you?"
"No Bill, please sit down." And you start giving me, "John hates me, he's
doing this. Nobody in the company likes him over there and bla," and I
say, "I was hoping it wouldn't come up. Because, this is going to be
resolved very shortly. You see John has terminal cancer and he's got thirty
days to live. I was hoping that this would just work itself out". What have I
done? You get along with John now, right pal? Miss you could get along
with John? Why? I have pierced your emotional steal; your barrier. We all
have these barriers and they are all so serving little barriers. They asked
at the table the other day, Jay says "What is the one thing you have
learned from all this?" The asked me and I said, "I am the biggest problem
I got". That's what I learned. All these things are available if I go out and
do them. What holds you back? Fear. The fear of being humiliated,
embarrassed and everything. You've got to ask yourself, what's the worst
that could happen? Well, that's already happen to me over there, I
remember. Try and detach yourself. There are only two kinds of problems
in the world, you know. The kind that you can do something about that are
the great ones because, we can solve those. If you have a flat tire you fix
it. Your house is burning down you phone the fire department. A legal
problem, sometimes you can't work it out but you can hire a lawyer and
you may not like an outcome but it's over and life goes on. The
subconscious and subjective problems are the toughest. You can't control
those. What are they? Love, fear, anger, disappointment; all these kind of
things. You learn to negotiate them. You learn to put them in proper
perspective. You've got to learn to detach these things from tearing you
apart. They are going to wear on you. When you get into financial
problems with your company, instead of being lucid and saying, "Now, I
remember that seminar, right, the first thing I do; Uh Yeah, okay,” and you
start working at it. Emotion is the one thing that tears that most of the
people in the country. It's a thing that holds most people back - Negative
emotion of fear. Especially we men. We are brought up to believe and
understand that if we are successful we get beautiful girlfriends, beautiful
wives, big cars, and big homes. And if we are not successful we get what's
left.

(Audience Laughter)

William: We go out there. Look at the corruption, the thievery, and the
shortcuts men have taken to try and get there. They say, "What about
women?" What about them? Yeah, they've got Martha and they are all
jumping on her because there's one women that did thousand guys so
we've got "One woman here and look what she did". What we men have
done to this world, I don't want to waste any time on that one. You start
thinking of yourself as a product. It's pretty simple. Either you are going to
be bought or your competitor's going to be bought. It's that simple. You
say, "Don’t worry about the opportunity that was lost" It wasn't lost, pal,
someone got it. The four things that change your life; you've got to
reinvent yourself and think how lucky you are that today you can do that.
When I was growing up you couldn't do that. We were stuck in a channel.
You can reinvent yourself so that when you walk into a room, ladies and
gentlemen, all the studies show, they make ten decision about you.
WHAM! How much money you make? WHAM! What kind of social position
are you in? WHAM! What kind of education and everything. There’s always
somebody who says, "Well I'll tell you something. I can't tell that stuff
about anybody". Really? I say, "Pal, look at that guy over there. How much
money is he making? "How would I know?" Well are you going to hire him?
How much money do you think he's making? What kind of education does
he have? "Well, I couldn't tell anybody's education". You couldn't tell
anybody’s education. Does this guy has MBA? "MBA, are you kidding, the
only thing that held him back from college was high school". We are such
nice people we don't want to hurt your feelings. Men, we are so looked up
in the fear of rejection and failure that we won’t even say it. When you
walk out of here today, the Litmus test for a weak link is they say, "Ah,
that old dude up there shooting his mouth off. I don’t believe any of it, you
know". That's how you tell your first weak link in your organization.
Because, they cannot handle the fear of change. Women by their very
nature, gentlemen, are much better. They see this as an opportunity to
grow. You must do that. You must grab this and realize you must reinvent
yourself. You don’t have to open your mouth and say how foolish you are.
Or how much you haven't learned. Just sit back. De Gaulle said it best,
"Silence is Gold". That's power. Your ability to walk into a room and have
your package that says, "I am trustworthy, knowledgeable, sincere, learn
how to shake hands -" Actually I'll tell you how to shake hands. He doesn’t
say (gesture). Learn how to shake hands. There are three things you first
do. You don't go, "Oh..." (Gesture)
(Audience laughter)

William: You say, "Hey pal! How are you? It's good seeing you". First thing
to do, 'Telegraph Intent'. Right now, right here; hands that lock like that.
You shake his hand once and let go. It sounds so simple. Ladies, trouble
with men is, we are so macho that we won't go and say, "Hey buddy lets
work on it a little". Oh no, we are too macho. So we go through life -
"Hello," "Hello".

(Audience Laughter)

William: We have talked about these things. I wish I had a day. I want to
teach you how to walk, I want to teach you how to talk. I want to teach
you what to say and how to answer every question. It's so simple. You are
only going to be asked ten questions all your life. Why not get the answers
now. The power to knife right through; the focus - like a razor. Now, I have
told you all these good things. I am a couple of months older than all of
you. I hate to tell that to all these beautiful ladies. If I have learned
anything and I have learned quite a bit, because I was a very self-
conscious kid who kept his mouth shut for most of his life and watched
other people. That’s where I learned. You can go out of here with all the
information that our leader is given you and make money, go up and up
and up; but one day, you are going to mature to the fact that without love
you got nothing. You have nothing. I don’t care how big your house is,
unless you have someone that comes over and puts their arms around or
you go over to your wife and say, "Sweetheart, you know how much I love
you. You know how proud I am to have you as my wife". I went home
several years ago after Hollywood. I was out there first time in my life
making any money and buying beautiful counter shirts with waterfalls
going over the shoulder; my girlfriend says, "Bill, you are the best dresser
I have ever met", and I am thinking it's true. What did I expect this lovely
lady to do that I am taking out to dinner every night say, "Bill, get off the
streets you are making a fool of yourself". I went home to visit my folks
one time. Following morning the phone rang and he said, "Bill, It's Jimmy. I
heard you were in town, let’s have lunch. Can you do it?" I said, "Love it!"
He said, "Meet me in Coney Islands at 12, I'll be there". We sat and had
out two hotdogs with chili and a chocolate milk like we were two kids
again. He was telling me about Mary and little Jimmy. He says, "C’mon,
lets walk over to the old waterhole, I don’t have to be back yet". So we
walked over to the - now a park - waterhole, back in my days. We sat
down on the bench and pretty soon, just looking out at the great river that
separates Canada and our little town. I sat there in a flood of wonderful
memories of my childhood. I was thinking of the days when we used to
come down here and dive in and swim in front of the girls. It was fabulous,
kind and wonderful days. All of a sudden I saw Jim get up and walked over
to the spiles and leaned on the spiles. He sit there for a minute, then he
started talking to me. He was thinking instead of talking. He said, "You
know Bill, sometimes you forget. Life hits you so hard and you are driven
by being successful and all that. I was at work one day and I heard that
our boss was retiring. They were going to take someone from our
department to run the department. I made up my mind that I was going to
win. I was so focused. I was the first one there and the last one to leave
every day. About the second month in, I get a phone call. It was from
Red". Red was a kid in high school who is now the chief of police. He
phones him and says, "Jim, little Jimmy was picked up in the dime store
today, stealing. They are not going to prosecute him..." "Wait a minute!
You must be crazy, my Jimmy doesn't steal". He said, "Jim, the stuff was in
his pocket, he's right here". "Hold him, I’ll be right down," he said. He said,
"Bill I went out and jumped in my car, I raced down to the police station. I
ran back there and walked in. I looked him up there with the kids and
asked Red to excuse us for a moment. What's wrong with you?! Are you
nuts? I am tearing my guts out down there trying to make a future for
your mother and now it's all over town that my son's a thief? You think you
are going to promote me?" He said I took my belt and gave him six
whacks on his rear end and I said, "You are grounded till I tell you to not".
He said, "I went back because I was so mad, I would kill. Bill, three months
later, Frank got the job. It was humiliating. My back was in a spasm. They
practically had to carry me out to go over to the hospital. I stayed in the
hospital all weekend. They gave me some drugs to loosen me up I guess. I
spent three days out of the office, winding down and thinking, where I am?
Who I am? And what have I got that I love? I did a lot of thinking Bill. I was
back at work in a month or so, I get a phone call, "Jim, this is Red. Listen,
we picked up Jimmy again. They said they wouldn't prosecute this time
but I am telling you, if he does it again, he's going to jail. He's here". He
said, "I went out of the office, I went to jump in the car. It was Friday and I
remember it was Mary’s day for the car. I started running. I was halfway
there when I started thinking about all the thoughts I thought about in the
hospital. I walked in the police station. I walked in the back of the room in
Red's office. I looked up at my little boy up there. He's sitting there and
he's crying. Tears are coming out of his face and he's shaking like a leaf.
"Dad, I'll never do it again". Jeez I looked up there. I realized that I hadn't
hugged or kissed him or told him I loved him. I can't remember when. I
asked Red to excuse us. When he left, Jimmy said, "Dad I promise I won’t
do it again. I said, I know son you won’t. Come here. We just stood there
and hugged and kissed and asked Jimmy to come home. We still live on
the second street. Mary must have been in the front room because she
came out. For lunch, she packs a little bag of sandwich and get my coffee
down there. She comes out and says, "What's wrong Jimmy?" I looked at
Mary and it was like I have never seen her before. I look at her and
realized that poor girl has never gone to the beauty parlor since I have
married her. That dress is the one she owns when I married her. I just did
something I never did in my life. I am a very conservative guy, Bill. I ran in
the middle of the street, grabbed her and hugged her and asked her to
forgive me. Mary’s the only smart one in the family, Bill. She got us inside
the house. We just stood there and we hugged and kissed and told each
other how much we loved each other. It's the greatest day of my life. You
know something, Bill. I fell in love with that woman all over. I realized that
day where my real wealth is." When you are alone tonight in the room up
there, ask yourself, when was the last time you told someone you loved
them. When was the last time you went to your husband or your wife, put
your arms around them and said, "I am so proud to be your husband, I am
so proud of you". Ladies and Gentlemen it's been a privilege being here
today. Go on God's way. Thank you.

(Audience Applause)

Jay: One question. Just so I get this right. When I walk into a room I don’t
do this, right? That's wrong? Okay. You succeeded my hopes in a very
different way. What one other thing, besides the most wonderful point you
made, would you like me to think about, in there. I have the belief that
they don’t realize that confidence, authority and leadership is so
important to convey. I try to do it with more fun here because I want to
differentiate that I am not really out of control, even though I have an
attention deficit. I want to change clothes because I want to break your
paradigm. I find, that when I go into a room and most people take me
relatively authoritatively. I go to parties I have to admit to you, women like
me. Most men talk to men. I talk to women. It's a lot more fun.

William: Wise man.

Jay: You did such a wonderful thing for everyone; I am so appreciative of

you and thankful in their stead for you. What other thing would leave
having them think about in just whether they wear a suit, whether they
wear a polo shirt. What would you leave with one more thought?

William: The one thing that I believe about myself. I had a college
education. I can't remember what I even took.

(Audience Laughter)

William: He said so many times during this thing, your pain is where you
learn. You don't learn from success. That's ego, you learn from pain. When
I was a kid, I was 6'4". My parents all came up to here. In those days they
didn't have tall kids. My feet were so big that my mother took me down
Detroit and got me navy shoes so I go to church. I had pimples all over my
face. I became very self-conscious. It was really embarrassing. The good
man upstairs takes care of all of us. What he takes, he gives. I learned to
be aware. When you people walk up to somebody and say, "Hey how are
you doing?" I walk up and I train my self - I know the length of your hair, I
know whether you go to a professional barber shop or you let the barber
massage your hair and tell you how good looking you and while giving you
a lousy haircut. I know the thickness of the soles of your shoes. I can tell
you what you have paid for everything. I calculate who you are? How you
could touch my life and how you could benefit me or detract from me.
Awareness, awareness, awareness. Ladies and gentleman, it's no genius.
It's just like going to the gym, today. Start looking at everybody the same
way. You don’t go (gesture)

(Audience Laughter)

William: You size them up and you calculate everything. It's served me, I
can't tell you. Thank you.

Jay: I love surprises. There's a method to all of my madness. Believe me,

every element of what we are doing is being done for a benevolent
reason. It's more important than understanding technical marketing.
Okay, Winton, are you ready? Are you going to follow up? Get ready for
this. Winston Churchill - true name. Actually related to Winston Churchill?
He'll explain that. Has probably a better understanding of a real
opportunity in using the internet and using the worldwide web, that
almost anybody I know. He has worked for five or six of the largest
technology corporations of the world. He was the executive vice president
of Act which is one of the most pre-eminent contact management
software. He is a consultant who gets paid a lot of money to help
companies develop lead generation and conversion programs to sell very
expensive items. Fortunately for us, been a J. Abraham enthusiast for
many years so he understands the entrepreneurial world; the corporate
world where never the (unclear 11:09) show me where the advantages
and the opportunities of borrowing from each exists. He's going to do a
very relevant hour. The title is, Winton...

Audience: (inaudible)

Jay: Okay, are you ready? Take it away Winton.

Audience: (Applause)

Winton: Thanks a lot. I have been enjoying this seminar like of you. It's a
little disappointing that you have to get up here and talk because I am
going to miss out on something. There's a lot going on at the tables. This
is a very valuable experience as entrepreneurs getting started. I find, if I
can have my first slide...

Jay: Those of you I asked to call in and see Terry, I am supposed to tell
you to do something but I don’t remember Rick, what am I supposed to
tell them to do?

Rick: Row names that Jay called off earlier, as soon as possible.

Jay: Also I am supposed to announce that there's a box up here for all of
those who wanted to do project with Marshal and I. It's up there. I
apologize but I was supposed to do it two sessions ago. Forgive me. Go
ahead.

Winton: No problem. Okay can we have our first slide up there? With a
name like mine I find that if I talk to an audience, the first five minutes
people are saying, "Is that his real name and is he related?" And unless I
answer those questions right off the bat, people are kind of teetering all
the way through the first five minutes. So in the interest of getting that
out of the way and satisfying those two questions - next slide please.

I am not named after Winston Churchill, I am named after the car called
the Winton Six. It was the first motorized vehicle to cross the United
States back in 1897. In fact, there's a story about the guy - Winton that
built the motorcar. One of his prospective investors said, you are crazy. In
order for this thing to work, you would have to pave every dirt road in the
United States. It was kind of an interesting perspective. Next slide please.

Yes we do have a common ancestor. There was a branch of the Churchill

family that came to the United States. One branch stayed in England in
the late 1600's. There's a little bit of relation there. Next slide please.

The world of email is a very mystifying place. You can buy manuals and
books and tapes on how to setup email system of one kind or another but
there is a context that you have to look at in order to fully understand the
process. Interesting show of hands before from the people that have spent
money thinking they were going to make some more and didn't. There's a
lot of that going on the email space right now. One of things that I am
going to do with the presentation is go through and give you some of the
critical factors, the context the surrounds the process of doing email. We
are going to go through that first, then we are going to go through some
very specific details on email systems and what a lead generation
program look like, for example. Some of the issues you might tackle as
you turn to email to tackle you sales and your product. It's interesting, I
had my first exposure to direct mail in about 1972. I started an electronics
company. Left college after two years. An engineer and I built an obscure
piece of test equipment at that time for this new technology coming along
called, Digital Circuits. My first exposure to direct response or direct mail
was, we had raised a little money so we did some advertising in
magazines. We got some nice, big full paged ads and some of the industry
trades and got no response from it. We were out of money. Now, I had to
figure out what to do, that we are out of money. So I bought a mailing list
of a thousand names of electronic engineers and coupled together a
brochure that I now know makes probably most every mistake I am going
to tell you not to make as we go through this presentation. And I send it
out. In those days with email things happening fast - everything in 48
hours. But with this thing you had to send it out and wait for three, four,
five days to make its way across the country. Then you wait for people to
respond and you have to categorize the responses as they come back
which can be a trying thing. It's kind of like golf. If you are a bad golfer you
usually are still going to hit one or two shots every time you go out. That
was what propelled me through that process. I got two leads out of the
first thousand things I sent out. The point there is that even if you do
something not to perfection you can see results. The good thing about
direct response is, Jay teaches it and that's why I am such a disciple of Jay,
the ability to test and measure as you are going through a process, will
educate you at your own seminar - put you to school on what the
technologies are, how to use them and how to make the greatest
advantage of what you learn. Next slide please.

One popular misconception, and I run into this a lot with clients. They
have spent quite a bit of money on website. As many of you notice we lost
about seven trillion dollars in value in stock market over the last few years
because this thing, in part called the dot com revolution, crashed. The dot
com revolution was based on the idea of build it and they will come. You
put a website out there in virtual space and people will make their way to
you. Next slide please.

Websites are good for things like, talking a little bit about your company,
product, service offerings, PR; that sort of thing. Next slide please.

Most investment in website goes down the drain. There are hundreds of
dot coms that no longer exist. You are very unlikely at this point in time,
and I know this will contradict some of the people that have been here
that have dot coms that are doing well; it's a very difficult way to go. The
entry costs are very high unless, you have some posy or congregation of
people that are otherwise associated with your business. You can drive
them to a website but you are not going to build a website and have
people find you out there. Next slide please.
Does anybody know what this is? It's a specific fish. It's Grunions. If you
live in California and I imagine all the way up to West Coast, this is a kind
of an interesting fish. They come up on the shore with the tide on a full
moon. The female burroughs into the soft sand and lays her eggs. Then
the male comes up and fertilizes those eggs. When our kids five, six,
seven years old, this is a fun thing to do. Take the kids to the beach in the
full moon and the waves come in, the waves go out. These things come
up, they go out and pick them up. In fact in California you don’t need to
have a fishing license. It's the one fish in California you are allowed to
catch without a fishing license. You pick them up and put them in a bag
and it's quite fun. We went with the kids, the full moon is out there. It
happens to be two ‘o clock in the morning. The waves come in, go out,
nothing happens - come in, go out. Pretty soon you start to see these fish
flopping around in the shores. The waves go out and they are doing their
thing. Pretty soon a wave comes in and the whole beach is just covered.
It's a fabulous site and as you can imagine there's a lot of excitement. The
night we went there were probably 400 people on the beach with kids and
their pants legs rolled up and everybody is wet and sandy - picking up
fish. They pick up about a hundred fish and they only keep two or three
because they are slimy and they squirting out everywhere. We go home at
three o clock in the morning. About two years later I am watching the
discovery channel. They had this guy from the Scripts Oceanographic
Institute. He's talking about the Grunions and being a fellow Grunions
fisher I pay attention to what he has to say. The interviewer talks about
how the whole process goes on. He says, "What do you people actually do
with the fish? Usually they take them home, in a plastic bag, put them in a
freezer and throw them out in about two to three years".

Audience: (Laughter)

That's what most companies do with their leads. Whether their email or
some other direct response kind of thing. Very common that leads are not
responded too. One of things you have heard here is the importance of
taking action on what you hear. If you produce a giant crop of leads;
unless you take that action, it's all for nothing. You want to use a
technology like email that can be belligerently consistent, once you set it
up. To do that consistent follow up. To process those leads as they come
through your process. Next slide please.

A little bit more about Grunions. As people respond to some kind of

offering that you make - a critical concept which Jay drives home so well,
the top part of the pyramid, people are buying right now. People are ready
to buy they are an inactive process. The next part of the pyramid; they are
buying soon. The third tier of pyramid; they will buy over time and then a
small portion of the pyramid will never buy at all. You want to concentrate
not only on the first portion but on the band two and band three. That's
where email marketing through automated releases of information can
continue to mine and lather up, for lack of a better word, that particular
audience, to predispose them to use your product. This is another concept
that Jay talks about. Next slide please.

Life is a moving parade - customers do things on their schedule and not

yours. You do a promotional email. Unless you are doing a regular
sequence of follow up, you are not going to hit them at the moment that
they need your product. They may have just changed jobs. They had a
bad quarter. There industry is changed. They may have expressed interest
in your offering at some point but unless you are continuously in front of
their face, not overwhelmingly. Certainly everybody here that has seen
what Jay has done to create this turnout, you can see that you can get a
fair number of emails without getting irritated and produce a result. Most
people dramatically underestimate the frequency they can use to contact
people with useful information and accomplish a result. Next slide please.

This is for people in the room who have larger companies. Who might
have a sales for of five, ten, twenty people who are dedicated to sales.
Underutilization is a severe problem with sales forces, today. We see
people that are having to layoff, downsize, rearrange. Sales people go out
and they get marginal prospects into their process. The marginal
prospects take more energy, more effort to bring to a sales. Many of them
cog up your funnel as you go through a process. One of the concepts that
you want to understand and one of the values of doing email marketing is
you can eliminate this underutilization aspect if you have a multi-person
sales force. Next slide please.

These are not in the book but they will be available in email after the
presentation. We'll work to see that you get all these slides. It's tough out
there. This is the worst economy that I've had to sell in, in the last thirty or
forty years. If you look at it statistically, you could go back a hundred
years. The stock market’s gone down longer than it did during the great
depression. It's a very difficult market. One important thing to understand
from a mindsets standpoint is that money is much harder to get from
prospective clients today, than it has ever been before. So there has to be
a degree of sophistication and how you pursue that money. That ties in
very well with Jay's strategy of pre-eminence. Next slide please.

One of the things entrepreneurs do when times get hard, is they reach out
to business that is not really there core business. One of the things that I
try to do with email marketing programs is help people concentrate on the
areas where they are a pretty good fit as opposed to having them spread
out in the outer zones where they are not a good fit at all. Next slide
please.

One of the things that people forget, in the world of website and email
marketing, is that there is a distinct process and distinct steps to the sales
process. I know the other day when somebody asked for a show of hands,
there were a couple of people here that are in a one-call, closed kind of
business. For everybody else, there's a series of steps that you go
through. Some amount of warming up, bringing along, educating it at
some level and then moving towards a close. The clients that I work for do
that. Some of them do it over the phone. Most of them are sort of
technology clients or high ticket sort of clients. A win for them with an
emailing lead generation program is getting invited in to an appointment.
Let’s touch on these three areas. We are going to go through these twenty
concepts that will set the stage for the specifics of the email program.
Next slide please.

This maybe the most important slide of this presentation. If you

understand none other slide but this one, you would have received value.
What happens now? The column on the left there, represents the amount
of activity in time that goes into engagement activities. This was a survey
we did for a client. They spend typically a hundred hours filtering through
leads, making telephone call; that sort of thing, to get to about 30 hours
of meetings that they have with the clients. Once they get to that meeting
they go to the proposal phase. Once they complete that proposal phase
some subset of those people actually close and become clients. The
promise of email lead generation is you can take pretty much all of the
engagement activities and move those to a system that automatically
does those things. He was talking this morning about making money while
you sleep. That's the component that email can best address. If you make
a $50,000 product you are probably not going to sell a lot of them on a
one-shot email, but you can get your sales people in front of the right
people. Clean a lot of the garbage out of their funnel that's never going to
close and move them into a closing situation. Particularly with hi-tech or
high ticket products, the sales people that you have are very relationship
oriented. They are very good at relationships. They are very good at
bonding, listening, understanding needs and solutions. They are terrible at
tele-sales and going through leads. It wears them out to those kind of
things. So if you can create a process that gets them invited in at best or
at least gives them a well-qualified lead, you are far ahead of the game.
Next slide please.
This is again for a specific client. In the past in a complex sales process. I
define a complex sales process as more than one step. This applies to
greater or lesser degree to everything that you are looking at. You see
your marketing department or you might do some lead generation and
some kind of qualification at a level. Then you rely on you; if you are
selling, or your sales team to do all these other steps - quite a bit of work.
Next slide please.

The goal today I think is to drive, to balance where you have quite a few
of those initial lead generation steps. Particularly the activity intensive,
repetitive, rejection heavy steps pushed into an automated mode and
then save your special resources, you relationship oriented sales people or
your best phone people to accomplish the direct selling. Give them a
richer hunting ground, if you will, to search. Next slide please.

Forget the decision maker. In the past, a lot of people said that if I could
just get to the CEO, CFO or the guy who runs the machine tool shop,
there’s a concept that there was a right person to get to. Experience,
recently has shown me, going back to at least two years that as the
economy has contracted. Companies have laid off people. They have
rearranged responsibilities. The senior most people are in a crisis decision
mode. They are getting interrupted on a quite frequent basis. The decision
maker is no longer the person that can sit down and thoughtfully evaluate
your proposal. What you want to do it find somebody in that organization,
who agrees with your perspective and then have them advance your sales
opportunity, in that organization. Next slide please.

Reduce or abandon legacy marketing. How many people like to be sold to?
There are a few that would like to be sold to but most don’t. That is
indicative of the general population. Whether they be in a business to
business environment or a business to consumer environment. They don’t
want to unleash Lester here that's pestering with your phone calls and - "I
want to do you plumbing, I want to review your insurance policies". People
are very unreceptive to that at this point in time. For a company that has
a portfolio of things that they do, you might want to consider doing less of
some of these and funding some part of an email program or some other
persuasion strategy that is less offensive to your audience. Since, I have
been here in the crowd and the tables, a number of questions about
newsletters have popped up. Newsletters is one of those things that fall in
the category of - an entrepreneur will show you a newsletter and say,
"What do you think of the newsletter?" The newsletter looks great but do I
think it works in terms of persuading a customer base or prospective
customer base to do anything? Not really. We all don't want to get 15
pieces of information about your company. Maybe a few pieces of
information about your industry. In fact I talked to somebody here and
they said, "There's this guy whose newsletter I have signed up for. He had
some really good stuff in it. I read it the first time, I signed up. After that it
kept coming. I would go to my In-Basket and I would look at it and see that
it was there. I would put it off in a file to read later. That file now has two
years’ worth of that person's newsletter that I haven't read". So if you are
doing newsletters, those tend not to be a persuasion activity. It can be a
very valuable information activity for a current customer base but tend
not to be a good persuasion activity. Next slide please.

The alternative is to develop a program that provides a continuous flow of

leads. Most people don’t get the continuous part. This is an essential word
in terms of how you want to think about leads. I can guarantee you of
somebody who has been thrashing around selling things one way or the
other for the last thirty-two, thirty-three years that you will always need
leads. You will always need a new flow of leads. Unless you put a process
in place to produce those on a continuous basis, you will get to the point
where for example, our speaker this morning, had an avalanche. There are
always these avalanches coming along in your business life. Unless you
have that persistent, reliable, email marketing system, you will not be
able to survive those ups and downs as well as you might - as long as you
have that continuous flow of opportunities. Next slide please.

Because most of my clients deal in most sophisticated products in terms

of price and cost, the goal of most programs I do is to get that person
invited in. Again, Jay's strategy of pre-eminence. You come in as a trusted
advisor, because they have been exposed to some of your materials
through an automated system that aligns with their philosophy or better
yet, helps shape their philosophy. Next slide please.

I am going extremely fast. One thing I didn't quite have a feel for when I
signed up with Jay was that I have about 250 slides in two days that it
takes to go through all this. I paired it down to 65 slides. When you cut out
those slides of your presentation, it's like, leaving your children at home
for vacation. I'll go as fast as I can, get through as much as I can and
apologize for sounding like a machine guy. Next slide please.

Moving deals forward - this is another key concept in the specific email
marketing program that I am going to show you. There are people, who on
one end of the spectrum will come out and say, "I bought a list from a guy
for $50 - 10,000 names and I mailed it out. It didn't work, or I got a
response". On the other spectrum is this kind of program where somebody
is on a special interest list indicating that they spend a thousand, two
thousand, three thousand dollars a year educating, ways to do things
better in their industry. They open from you an email that is oriented to
that problem. They click on a link indicating interest that they want to
solve that problem. In order to solve that problem, which is usually
reading a white paper report on how to solve that problem or how other
people have done that, they give you their email address. They then
download a white paper. They read the white paper. Within the white
paper there are other things they can click on and request additional
information. They may request a spreadsheet that helps them evaluate
the impact of your thoughts on their particular situation. So we have the
person over here that's melted down their computer by sending out
10,000 names and got a handful of leads. We have the person over here
who has gone through this entire process, who is a well-qualified lead to
turn over to your field sales force. Next slide please.

Jay is very good on this concept and a lot of this material you are getting
today, I rely on a regular basis. It's really important in email to stay
focused. In fact, I recommend for my clients that you never ask a client to
do more than one single thing in an email. You don't say, click on this link
or call. Given the opportunity, the confused mind says, "No, thank you".
So you want to have them click on a link - is the only option you want to
give them with their email oriented generation. Some people that I have
worked with have been successful with an email and call toll-free number
but by far, click on a link, is successful. You are not offering your product
or services and this option and that option. You say, "If you have this
problem, click on this link". We'll show an example of that in just a minute.
Next slide please.

Again, Jay Abraham 101; be a trusted advisor not an imposter. You may
not have the industry specific knowledge that you want to have that
would best serve your potential client. But you can go out and buy the
expertise of people that do have that and create an interview, create a
report or use a report that they may have already created, to begin to
develop that trusted advisor mindset. Next slide please.

When I work with companies, particularly in the service area, they don’t
have a vision for what business they are really in, in a sense that a
prospective client is interested in solving a problem. Your product or
service may be a piece of solving that problem. It serves you well in email
marketing where you are developing a long term relationship with a client
base to think about more than just your specific offering. What other
things do you sell or do you provide a linkage to, through your process,
that helps that consumer get a total solution to the problem. Consumers
don't buy products, they buy solutions. Next slide please.
Risk reversal - You have heard a hundred times about risk reversal. It's
extremely important to risk reversal to get email people to take action.
People are suspicious of email. Show of people how many of you people
like spam? Not a lot. You are asking them to do something. It's very
important to reverse the risk. Particularly with technology companies. One
of the things that surprised me, and I have worked with a number of Jay's
folks. They say, well our industry is different. We really can't do a risk
reversal on our industry because the product costs too much or any
number of reasons and this slide is about an hour long seminar. There are
always ways to find risk reversal on what you do. I would challenge you on
the breaks or one of the meals later today, if you think you have a
problem that defies risk reversal, I'd be happy to take a whack at it and
see if I can come up with that. That process has fundamentally changed
business for very many of my clients. One of the easiest things to do and
very effective. Next slide please.

This component is not really an email chain. It is so powerful that I left it in

and I want it to communicate it to you. If you sell a complex product.
Somebody in the company you are selling to gets lathered up and excited
about what you are offering, the biggest challenge they have, if it's a
50,000 or 100,000 whatever it might be, is communicating their
excitement and their rationale to their peers within that company. One of
the things we do for a lot of clients is prepare this champion kit as part of
the persuasion process. I would challenge you to think about, if you sell to
somebody who gets excited and leads the charge on something, they
have to go back into their organization and persuade other people. There
are things that you can do to accelerate that process. They have to go
through an analysis process, typically, a financial process, in larger
companies and you can short circuit that time cycle and close your sales
faster by helping your champion in that company to advance the ball.
Next slide please.

Return on investment - I had one client describe the internet economy as

you holding your hand up in the air and an order flew into it. Certainly
doing our economic expansion, that happens some. Now the CFO in
charge of particularly some major decisions. You are going to spend more
than a thousand dollars. The company's going to buy something for more
than a thousand dollars. You'd be surprised at how many decisions get
rolled up to the CFO. Unless you have a rationale that in addition to your
emotion based marketing, deals with numbers and saves somebody
money or makes them money, it's very difficult to move the ball forward.
Next slide please.
This is one of the most dramatic aspects of email marketing. This ties in
with, "Life is a moving parade". You can mail to an email list today, and
get a two, three, 4% response. Depending on the industry you can go
back to the exact same list and mail that list 60 days from now and get
that same response. And it will be mostly different people and some
people that responded the first time but lost what you sent them. So you
want to be very aware, particularly in this type of economic uncertainty,
there may be a war soon, lots of things are changing for a lot of people.
They have to do things they never thought they'd have to do. You want to
have your message, your problem focused message in front of your target
audience on a continuous basis through this period of time. Next slide
please.

Persuasion design - broad topic - Jay is the master. The materials that he
get - quick story, when I first went to work for contact software they were
a fledgingly little company. I had been at Spinnaker software and was the
VP off OEM sales and VP marketing at the company at the time. We
actually tried to acquire the product because we saw this new contact
management category as being kind of an interesting category. We had
about a 150 products and at the time, Spinnaker had successfully made
transition from the largest Commodore game company to leading supplier
of 100 dollar productivity software. We thought that contact management
would be a nice thing to add to our portfolio. We didn't acquire the product
for couple of different reasons but during the process I got to know the
founders and they said, "You know we have this product here and we have
got a few people and things are starting to go well but we don’t have
somebody that's actually work for a software company before. Why don't
you come down," - Spinnaker had gone public and was very successful -
"and help us put that, together. We have got investors, we'll make all this
stuff work". I met most of the early investors. Some of Dallas’s finest
urologists and gynecologists that you'd ever want to know, from Boston
and got down there. The president of the company said, "You know all that
money we promised you we were going to able to do things with, when
you got here. Well, I spend it all". He had spent it on advertisement. I
don’t know if anybody old enough to remember, but he had a picture. It
was person seated in a chair. It was a full color paged ad. They had a disk,
like this. It would have been a poster child for things not to do - Jay
Abraham. He was holding a disk that said, "Act" It was something to the
effect of, "What you need to do business better". First thing I got down
there, the phone was ringing off the hook. He's placed this ad in five of the
major publications. Phone calls ringing off the hook. We were hiring
people, setting up workstations, trying to get people on the phone, most
of them didn't know what the product was and two thirds of the people
calling in - we had to say - we explained the product to them, they said,
"We are not interested in that". As I get down there, we have this fire-hose
of lead generation turned on us but they were the wrong people. We are
out money so we have no money to do things. I was having this meeting
where he told me there really was no money because when you are an
executive you don’t like to give news to people like that. You kind of tap
dance around it. We finally had to sit down and he said, "We have no
money and we are not going to have any money for a while". So, he
reached around behind his credenza and pulled out stack of Jay Abraham
material. He said he had bought this material and read some of it. He said
that there were some really good ideas in there. You didn't have to spend
a lot of money on applying them. I thought, great! I left the public
company - cushy job - Vice President, nice big office up at Boston. I am
down in this little hole in the wall software company. The guy's out of
money and he's giving me marketing books on how to do things on little
or no money. Kind of an interesting scenario. The toughest customer you
have to deal with when you are as entrepreneurial as I am, is your wife.
Especially when you wife has little kids. I had to go home and say, “Honey
you know there is no money to do marketing. This things probably going
to nowhere. We are probably going to have to move,” after we relocated
our family again. I took the man's way out and went home and read the
manuals over the weekend. Furtively looking for some solution to the
problem I was faced with. This came in Monday morning. We did a mailing
to the small but growing group of Act users and offered a video tape and a
free working copy of the product that held up to 25 contacts, in a referral
program. We contacted all our customer and said, "We were glad you are
using Act. If you know anybody that would benefit from using Act, let us
know and we'll send them this free video, this free working copy of the
product and give it to them on your behalf and say so and so thought
about you and thought this might be useful for them". At that point in
time, thank you Jay Abraham, that saved the company. Act would not have
gone on to be leading product in the market and really create the whole
contact management category unless I had read that book over the
weekend, I think. Hand to Jay Abraham.

(Audience Applause)

Winton: Then, we got money, then we got stupid again and went to full
paged ads. Once you kind of mass momentum you can do that, it doesn't
show up but when you are trying to get something going, you have to do
differently. Next slide please.

Particularly today, communicating the pain or the problem is essential.

Don't talk about your product or offering. Talk about the pain. That is the
key message for any email program. You don’t want to have anything in
that about your product. Next slide please.

Because of the sophistication of your mailing list, you want to identify

people that have a willingness to buy. That have the ability to buy.

Jay Abraham Mastermind Marketing 27

Wayne: About your product of offering talk about the pain, that is the key
message for key message for any email program you don’t want to have
anything in them about your product.

Next slide please, because of the sophistication the mailing list, you want to
identify people that have a willingness to buy, that have the ability to buy. Now it
used to be a year ago, you couldn’t buy the email list and get its segmented by
these categories now you can, you can go to exactly the ten thousand Vice
Presidents of operations in electronic industries companies between fifty million
and two billion it’s just fabulous, the list that have been developed so you have
that opportunity to talk exactly to the people that you can buy. I might point out
that this is the difference if you will put a website up and you have people
searching on your website and downloading white papers and you don’t know
whether that’s a geek in a bowel of some .com company or a Vice President.
When you only target Vice Presidents you know that every lead that comes in is
a Vice President and you can handle that accordingly and you don’t drown in the
mass of leads that come in from a typical web based marketing.

Next slide please; you want to find somebody who you can educate. There are
many people out there who will never buy your product no matter how good it is
because you are not the market leader, particularly entrepreneur starting a
business. They roll out of email programs they read about a problem they might
have some interest. They download your white paper they realize that you are
not one of the market leader for one reason or another. They opt out of the
process, they get out of your sales activity they unclog your sales person’s
agenda.

Next slide please, so the key message here is you want to do direct response,
that is what kind of that everybody does when they talk about email but you
really want to do the permission marketing as well the opt in piece, have them
give you permission to continue to provide them with valuable information
overtime. One thought about providing the valuable information over time on
permission marketing does somebody want to hear a sales message over time
from you repeatedly? Probably not, but there are lots of things you can say about
your industry. How different trends are affecting people that they would find
interesting and that’s the key component to your permission marketing program.

Next slide please; you want to create an itch they have to scratch. If somebody is
looking to buy an expensive software product and they get an offering of a white
paper of the mistakes people make when they buy that software product. They
have to get that manual their job is on the line in many cases at the higher ticket
products, or they are comfort of safety or whatever it might be in the lower or
personal sort of things.

Next slide, this one is a little abstract, I don’t know if I can do this in ninety
seconds but you want to think of your lead process as kind of this re-fractionation
column. You are bringing in the leads which are sort of the crude oil and then you
apply heat which is the repeated miss-sibs that you send them over time. Some
people like some molecules here drift up to the top and come off as a gas and
that kind of what you are looking for. Others remain in the process until the heat
gets sufficient or catalytic agents are added to that to breakup those molecules
and then they drift up to the top and that’s kind of the concept with email
marketing, you’ll take the people that are hottest now and then you will take the
ones that are hot over time.

Next slide please, with most people do lead generation they do one thing, they
do the bottom to square or the bottom square. They send and outbound email
and say please buy my product. Lead generation email based sales is a complete
process and we look at this in more detail in just minute.

Next slide please, so your desired outcomes are going to be higher quality leads.
Lower cost of leads, better control of messaging, people don’t get lost in your
website, better utilization of your sales force, happier sales people, lower
turnover and a stronger more consistent revenue stream. As an entrepreneur
that revenue stream is the thing that you want to focus on, put that in place and
certainly if you can get a robot to help you with that, you want to do that, and
that’s exactly what this offers.

Next slide please, setting goals. We have heard some interesting things about
how people go from zero to a million in sixty seconds and God bless all of us if
that would happen to all of us, that would be a good thing. What I have found is
that organizations that put in place an email lead generation process and built a
possey of a couple hundred, I mean a couple thousand names that have opted in
on their list have a unlimited reserve to go on a regular basis. Somebody always
got to do something that relates to your product. So you want to grow organically
at first and then you can do some of the kind of things that we have heard about
hearing the referral program and that sort of thing. One example client had an
about 300 names in the database and we did a program where they allowed that
database to offer a free info kit to all of their contacts and resume their contact
base up to about three thousand with in a matter of about two week so those
opportunities are there but you want to get the first piece done right. The bad
thing about email marketing is one you flip the switch it happens so fast that if
you are not ready to handle a response you are going to be in trouble and
disappoint a lot of people.

Next slide please; okay why it works quickly. You are slowly developing a
relationship. How do you like to develop a relationship? Do you like to go into a
restaurant or bar or event like this and hi, how are you what you do and a lot of
personal information? No, you want to slowly develop a relationship. We are over
communicated; somebody said I think I wrote down 13,000 messages a day. So
we want to get little pieces over time and that is how we build the picture and
the relationship because we have very powerful filters that we have built to
reject a lot of the stuff that we see on the daily basis.

Next slide, so now we are going to look at the specific components of a sample
lead generation program and this will be in your notes so you can look at it, it’s a
lot of detail on here but first thing you do, create a strategic plan, second thing
lead capture system, that’s how you actually grabs the name as they come in,
you create website landing zone, so I will add a little bit more that here. A
response delivery system, you’ve got to have some way to send out the
information that you are offering to the person as they requested. You want to
create a list selection test plan, more detail on that to follow. An educational
offering like a free report, a white paper something like that and then an
outbound email, those are the sort of preparatory things that you do. Once that
outbound email happens, all the things above that last yellow box about the
middle there are the things that comeback to somebody as they participate in
your lead generation process. Some people are opting out through the process,
but people receive in that case is I think it was about six emails, some material
that they can download on request and it’s kind of like the rat pressing the bar.
They get things automatically but then there are also things that can get the
press the bar and get the pallet, and that’s a very important part of making your
program effective and what comes out of this and this one of things that Andy
talked about there is an engagement process that get you invited in, so you can
do that sales pain gain follow up.

Next slide please, this is an example of an email that has worked very
successfully for one of your clients and some of things that you might want to
notice about this, is a lot of white space. It looks pretty hippie; the only people
that would actually read this and respond are people that are in severe pain. If
you have a product that takes them out of pain, it makes sense for you to want
to talk to only the people that are in severe pain and that’s the goal of this
process.

Next slide please, one of the mistakes I see people make is they - actually,
entrepreneurs are pretty good copywriters. They are used to telling their stories;
they get feedback from audiences clients whatever. When you do email
marketing there are certain words, certain phrases that can poison your response
and you want to be careful to tune those out of your email activity if you through
that.

Next slide please,

Audience: What are the point it raises?

Wayne: There is probably a hundred and what I recommend that you do is find
somebody that can review your document and coach before you send out that
email document as a strategy, that’s a way entrepreneurs can put together their
own email program, keep cost low but make sure you get a professional
copywriter to review it for those poison words. Anybody that has that experience
can do that and I think some of Jay’s material has examples of poison words in
them, so you certainly want to look at that manual you got today.

Audience: I want to list of magic words and (unclear 00:44) words.

Wayne: Okay

Audience: (Unclear 00:45 – 00:48)

Wayne: Okay very good, work with Rick. I think coordinate that through Rick.

Audience: (Unclear 00:58)

Wayne: When you do email, you don’t what email list going to be most
productive for you and this is the idea, it’s like drilling wildcat oil wells. You will
send out a thousand test messages to different lists some will produce a big
response some will produce a small response. Just want to get this concept
across that different list produces different results and as long as I have been
doing this you know I am still wrong. The list you think won’t work do and vice
versa quite frequently.

Next slide please. Again the formatting the idea here is you want to create a link
the only one link, one action that can take you intersperse this link in your copy. I
am a real proponent of a long copy approach, what happens from research we
know that most people select the first link. They read into the first paragraph or
to select that link. But as many have theorized and is now were able to prove
through email we can measure what response comes off the second, third and
fourth link and you get sometimes twenty to thirty percent off those second
third and fourth link showing the people are reading down into that copy and not
becoming persuaded until they get to that point.

Next slide please. When somebody clicks on that link, this is the page they get
for most my clients know as we ask for minimum amount of information again on
the theory that people don’t want to provide you with a lot of personal
information and particularly if you are selling high ticket products. The kind of
person that you are selling to is not the one that is not going to sit down and
punch their fax numbers and that sort of thing in there.

Next slide. This is where it all happens if your message doesn’t get open, its all
for not. The number one thing the people look at is who the email is from to
decide whether they open it. In a way you can’t really help that, important thing
don’t put the name of your company in there. Put the name of the person. We
find that a wide Angelosact and protestant name works the best. A female name
works the best, these are all the things that we have measured over time and
find consistently that works for getting through that first filter that most people
have. The second thing that I see Jay talks a lot about headlines and Mac talks a
lot about that a lot of good information there is a challenge with email, you can
write a great headline but if they can’t see it, it doesn’t do you any good you got
to keep your headline within 40 characters or its likely to be off the page of the
person’s email readers as they go down the list.
Next slide please. This is an example which one the CIO is going to read, this is
an example of two different white papers, again making that point of you want to
find someone who is in the selection process doesn’t want to make a mistake
once to avoid embarrassment is a very powerful theme and you can use that in
your reports and white papers.

Next slide please. Little hard to see but when you get the slides you will be able
to see a closer look, sequential marketing. Jay has talked about that and is going
to talk a little bit more about it, very important that you create an automated
sequence of things that happen that are sent out over time after they request
that first piece of email. You will realize that people that download your white
paper for example certain percentage 20, 30, 40 percent, the phone is going to
ring somebody is going to interrupt them and they will forget that they
downloaded your white paper and that white paper spitting around on their desk
they never read it. So if you come back at them with 2, 3, 4, 5, 6 different things
you are going to remind them they had an interest in that they wanted to
download the white paper and bring them back into the process. People say how
many of these should I do after a typical mailing, I said you do it until its quits
working. I had people doing eighteen months programs on their sequence and
they have seen no drop off and they are opt in list.

Next slide please. This may be the most powerful component of white paper
marketing within the body the white paper you can say if you would like
additional information on this topic click here. What happens then as the
business person you find out what are of the nine mistakes that you were talking
about, which of the nine mistakes are of greatest concern to that particular
person. So when your sales person engages them you know that for example in
this case they are really struggling with the concept of metrics and that person
can in essence be a mind reader about what their problems are.

Next slide please. We don’t have enough time for that, its kind of a map it will be
in materials you take a look at it.

Seven things to avoid. There are the things that people make that kind of kill
their process, not understanding that lead generation is not sales. Sales on the
internet you know it happens for some people with the right circumstance but a
very difficult way to go. What a lead generation program can do is put you in
front of the right person with the right problem, the person has money they are
looking for solution and they have a belief that you may be able to help them.
Most sales people would like to talk to those people all day rather than people
that were surfing the web and thought they might be interested in your product.

Next slide. Don’t buy the sixteen million Dollar, 150 Dollars, this is an
unfortunate client that setup his machine one weekend to mail out his spam
email and it didn’t work out too well.

Next slide please. Good list. Only use opt in list or endorsed mailings as Jay talks
about those are very good. Resist the temptation because they are out there
people will say I have got a list of 500 people that are in my association I got a
list of this and that, unless you have permission to contact that people you are
going to create more aggravation for yourself than its worth the opt in list
typically sell between 30 and 50 cents a name its expensive but they are that
expensive because they produce the result.

Next slide. Again copy writing, this is an example of an email that I got, I don’t
know a week ago from one of the largest database manufactures in the United
States. Everything highlighted in yellow is talking about them, everything
highlighted in blue is hype, for example words like the future keeps getting
brighter, these are examples of poor communication. Emphasize the rational for
having a professional copywriter the one that skilled that email persuasion
design. Review your materials before they go out and its not magic but a good
copy writer, any good copy writer can help you quiet bit with that and keep you
from making a big mistake. The other last thing that I want to point on that is you
see how a line jumps, because people don’t format emails when they go out
properly. They are mistreated and abused when they come in to your targets
email and you will see how hard it is to read when you have a full line and then
one word and then another full line. This kind of formatting will depress your
response by 70 percent. Somebody sends out their first email, they say it look
great I don’t know what happened. It looked fine in word but I got a bad response
these are the kind of things you have to check to make sure that you are not
doing that.

Next slide. We have already kind of talked about this but the idea was formatting
lots of white space, white space works in email and people will scroll down if they
are interested.

Schedule is extremely important never mail on Mondays or Fridays. Never mail

the day before holiday or the first day back after a holiday. Don’t mail on election
days, I learnt that lesson painfully this last election cycle with the Presidential
Election I had a few clients that were had an email programs, that we actually
didn’t mailed on election day but we had the mail scheduled right after that and
because it was undecided people were not paying attention to their email and
watching the news to see what is going to happen. You want to mail them in the
morning or after midnight you want that person to get that email first thing in
the morning, people are much more reactive and likely to click on a link than
they are later in the day.

Next slide please. Be careful what you ask for the more information you ask for in
that first contact will absolutely depress your response and ensure that the only
people you get to talk are the ones that are more than happy and have all the
time to disclose all their personal information to you.

Next slide.This is an example of the kind of thing that you want to ask on the first
click, just get their name and their email address and then build the masses of
data, you know their physical address, their phone number all those things
through your report sequence over time and one other thought on this is that
you always want to have. This is where the internet doesn’t work for 10 or 20
percent of people most of time on a mailing. So you want to create an option
where they can call a toll free number and pick up what you are offering a hard
copy of it because they can’t download it for some reason.

Next slide. Most of our clients the website that we setup for them, not their main
website but the one we use for response works likes this. This is the home page
it has no navigation its not something that they can jump into and run around
and get lost, which is what most people do on a website. There is no navigation
we take him down a very specific path, a very specific persuasion path and we
intentionally roll people off as Jay was talking about yesterday. We polarize
people so that they go down that path and tune out the people that are not
interested or ultimately not likely to buy.

Next slide please. I think this is the last one or the second last one.

People are nuts on giving things away on the web. This is an example free palm
pilot and I tell just one last story. I worked with a company that had just
purchased a Porsche Boxster and they raffled it off as a way of generating leads
and they will go to trade shows and they will hand out little things you fill in and
they would had a thing on their website. They got 4000 leads they just
distributed all those leads to their sales people. Sales people would call up the
name on the lead, the person would hear the name of the company and they
think boom right away. I won the Porsche Boxster they were excited, then they
realize in another flash they didn’t win the Porsche Boxster, not only they did not
win the Porsche Boxster but you are going to try to sell them something. So they
go from pretty excited to pretty unimpressed in a vey short period of time. If you
want to collect names of people that want Boxster and Palm Pilots, offer a
Boxster and Palm Pilot but avoid these kinds of tactics for collecting names.

Next slide please. My advice is this is something that you can start as an
entrepreneur, you can start small and learn a lot and learn very quickly. You get
the immediate feedback most of your result comeback in 24 to 48 hours. People
call you, people send you emails saying I like this, I didn’t like that you know if
you strike a wrong note you will here from some of your recipients so I would
encourage you to begin. This is something you can do, you can take the
materials that Jay has provided extremely relevant, extremely helpful in
structuring your persuasion design and just get started with that. Start with a
small audience if you are not doing it yet, get a feel for it and then move it
forward and you will get to a point very quickly you know three to six months
where you will be able to apply some of the more sophisticated techniques and
really ramp up your congregation or group of people that are interested in
solving the kinds of problems that your product or service sells.

Next slide. That the end. Thanks

(Audience Applause)

Carl: So first of all Wayne just gave you and incredible compact perspective on
a hell of a great way to use email marketing. We are going to try to broaden it
because you know we have gone out at lot of different ways and they don’t
refuse. I want to make sure because I am going to talk about what we have done
we are going to bring all these people up, who have figure out other nuances. I
want you to give like a connected bridge that helps them understand there is not
a right and wrong. There are just so many different avenues of pursuits so give
me phrase on that I want you to give us your swami like forecast of the future of
the internet opportunities and I want you to tell me what an entrepreneur sitting
in these chairs from 300 different industries some with email list some with not,
some with one time product, some with not, some with copy writing skills, some
with not, should do today when they get home to act, to apply to implement, to
execute, to actuate whatever it is you just said.

Wayne: Okay. The first thing that you should do is focus on the problems that
your product or service solves and begin your persuasion design from that
perspective and again use the materials that Jay has put together to take that
and amplify that. The one phrase that I would say is keep your powder dry, we go
five to ten emails sometimes before we would actually mention the product or
service or nature of the solution that we are offering, we will find that problem,
find that one raw nerve and hit it over a period of time to bring some part of the
audience to a fever pitch and if you are selling something you want to talk to
people who are at a fever pitch in search of a solution.

Carl: Okay alright thank you very much, appreciated man. You will be around.

Wayne: Yup

Okay thanks

(Audience Applause)

Carl: The only negative about taking his green step as your teeth look like you
are trying to be at Halloween Gul forgive me, get a lot of energy from it.

A couple of quick points again those of you who are interested in being guinea
pigs if you did and if you don’t its no big deal but you if you want to have an
incredible time interacting at level about ten times deeper than we get over here
and being able to listen to really probing and penetrating analysis and interviews
of cutting edge books that are the most definitive and really get the upper edge
because that’s where the break through has come from. Put it in because we are
not going to offer it again. I had printed for you last night the chapter of my book
on strategies preeminence. Its not in my opinion as dimensional as the notes I
was looking at but its much cleaner and simpler. We are going to distribute it
now you can read it now for just a little reference. You can look at and refer too
often as another benefit if you would like, I am willing to have the notes the I was
reading from cleaned up because I stuttered, stuttered, stuttered, tangential
comments, irrelevant dialogue etc, but I will get it cleaned up and we’ll post it on
a private website for you so you guys could download it if you would like, and I
think you probably would like that. No I am just want to honor my obligations. If
some of you don’t know our obligations but I have made it silently to you, I
promised a couple of things I think you should also have, one is an interview I did
of friend talking to him called him Encounter and I thought it was in the tactical
force and I am told that isn’t so we will get that transcribed and we will put it on
a website for you also.

The (unclear 0:08:31.3) I am involved in is really cool and if you want to try they
around here. They have been telling me basically because I have never used the
technology for it, they are easy but you got to know the other side and get more
feedback what we did and this is really cool, the army is using it in the Middle
East, the Discovery Channel is using it to broadcast incredible stuff underwater
some of the most sophisticated coverage in the world are using it and I am trying
to figure out how to use it myself to reach entrepreneurs’ but if you can figure it
out its incredible because they got for a couple of hundred dollars a month and
less than a dollar a minute you guys can do incredible things so I would urge you
to think about just these things. I want to give you a quick break but I got to
have you back, you don’t have to get back but in ten minutes Carl, and I are
going to go through how we got all of you in this room. We are going to go
through how sold four and half million dollars worth of PEQ home studies of five
thousand dollars a piece with one sales person. We are going to go through what
I think is the key to sequential marketing we are going to open up some really
neat quarters of internet prospective and then I am going to do I think a couple
hours of actual Q & A interaction so we can just get right to some serious
applications but I am going to start in ten minutes so put on some really high
music so I can get my energy level up for everybody and come back in ten
minutes.

Okay so I have been around for a long time I have looked at a lot of stuff I have
formulated a lot of strategies. We decided.

Mac: Can I do the intro for you instead?

Jay: Sure. Mac is going to take over. He is going to ruthless bloodless coup are
going to throw my leadership down and takeover and he is going to call it
ShayMac.

Guys come on look what we are doing help us here.

Mac: How about if turn the Microphone on with that help.

(Audience Applause)

Mac: What Jay and Carl are going through with you here simple humility that
they both possess will prevent them from telling you the magnitude of what
they’re about to give you. This is one of the great marketing turnarounds that I
have ever seen. They took in the last year working on these techniques last
couple of years using the new technologies, email of the combined with their
direct marketing knowledge and expertise and to their intuition and everything
else and just dogging this on Carl’s part as well creativity. They took a situation
where the average conversion of a lead for a program like this was one percent.
Very expensive to put people this each. Even using associates and affiliates to
bring the leads in, it was one percent. What they are about to tell you is how
they change the conversion rate a thousand times ,at less expense that they had
initially. Most people can fill a room with 20 people at 50 bucks, look around you
the 20 people at 50 bucks are less satisfied than you are six hundred people at
5000 Dollars. This is an extra ordinary what they are going to share with you.
Their ability and the willingness to open this up is almost unprecedented in
business. Please give it your full attention.

(Audience Applause)

Jay: Okay. So we start looking at what changes were going on in the world and
the point of conclusion that we came up with I think non-verbally was you have
to give more utilization utility productivity out of the action. What I always talk
that it was really hit home what do you think Carl?

Carl: Right

Jay: I have always been of the mindset that it literally was only a matter of time
before everybody you wanted to have a relationship with you would, number
one, number two there are lot of people really wanted to do they just didn’t know
it yet, number three that if it is going to benefit then you couldn’t let them off the
hook just because you had not clearly conveyed the level of value at high
enough clarity that they couldn’t say anything but yes, and number three that
was so preoccupied in our lives with so many day to day diversion, calamities,
insanities that its hard for us to really reflect on something and number four or
five are not really paying attention to my numerical sequence. That is a lot of
things that we wanted to do but we never do. There is a lot of things that we
should do but we never do, and then number five or six is that even if we want to
do it getting this out of our comfort zone is hard as we had a moral obligation to
not let you guys down.

How many people here got more than one email before you signed up? Raise
your hand, stand up, I got to do this walk to the wall. Okay now take 650 times
5000 that’s a little high because there is couple partners and there is some
friends of mine here but its a little high but not that high 650 times 5000. Okay
and now remove this group times 5000 a head, if I had resigned myself to one
email and look at this room. Now stay there and go back as I call this example
you got a second email, if that was what it took for you to sign up go back. I am
going to do so you guys see it graphically. You got may be two or three reports
and you study them, go back. You got may be two or three or four or five calls
from Carl Turner and I want you to think what it took. I want you guys to see how
sequential activities make a difference and all these heads are 5000 Dollars to
you, all these heads, that man is a 5000 Dollar vest, that man sitting down is
5000 Dollar tie, that man is a 5000 Dollar, at least 5000 Dollars you want to bet
on it. Okay, how many people did it after they were on a conference call with
me?

How many were on it after they got one of the other speakers and if you don’t
have to be down here, just walk it. One of the speaker’s report how many guys
after I did something that was very straight forward but bodacious and you go
damn it he has got me. How many people had to wait almost the end before we
finally pushed you over the wall? Do I make my point? One of things that I use to
teach is in all the material we gave you before it had been repeated in some of
the work books we gave you plus three letters from Oxford Club besides that.
Anyone says O! don’t email people more than a couple of times, you will offend
them. We did a little survey of the people who unsubscribe and sent me nasty
emails and we went to see what if anything they ever bought from me. You want
to guess what the answer is?

Okay may be one wasn’t over whelmed and if the gentleman says I am not, so I
am neither (unclear 0:06:32) nor I don’t know I am confused, I am indecisive, but
we, I am giving you just basis here then Carl is going to talk for a few minutes
because I forgot to go to the bathroom because I was talking if got a run I am
going to explode but that okay Carl can run with it.

Really of Oh God thanks.

(Laughing)

Oh God, Oh God. Anyhow it doesn’t matter I can hold it for a minute more. The
key to a lot of this is understanding what I called a 1985 and I think I called it
something else now. The moving parade, there is an escalator of life, this cycle of
life it’s that we are going through constant change, remember I was talking to
you the other day, I was talking outside about how you will get your epiphany at
a different time from a different person or event or experience on the stage at
the table in the outside you know got to the John and talk to somebody at Lunch.
I don’t care which it is I just know with certainty that by the end of today or
earlier that it will be. Does that make sense to you, I impute the same belief
system in what we are doing. I don’t care if its email one, two, three, four, five to
combinations the audacity whatever, it is just that we have it, certainly we are
not going to let him or we are going to polarize. We are not going to let you off
the hook until you do one or two things either submit or evict us. I mean literally
is that a good prelude, Mac is that a good prelude?

Mac: Its wonderful. Go before you flood away.

Mac: I am going to interview Carl because Carl is not a presenter of this kind,
this is totally must be awesome experience being up here in front of all these
talent energy and want, need and sharing and everything else because in all to
give you all, if you don’t mind I walk you through couple of things.

First of all if you don’t mind.

Speaker: Would you share with us how you got to be here at all.

Speaker 2: What I did before was I worked in a nuclear power industry I had an
Engineering Consulting Company. When you are working as an Engineer you are
trained to be negative so I decided I really needed to change my outlook on live
is to be able to think positive because when you’re are in business you have to
think positive. So I went to Tony Robbins and went through all of Tony Robbins
training program first as a participant and then as a trainer that was very
expensive copy but it was very worthwhile because I learnt from a person who
could not supervise people to supervising sixty three of my competitors
employees and then after that Tony recommended I meet Jay when I was at
Financial Mastery. I met Jay and then I went through one of Jay’s program just like
the one we are doing here as a participant. I paid 5000 Dollars like each of you
and I really was very enthuse about Jay’s material but I thought it was not
organized and I thought I could organize it down to about one tenth what it was I
did really understand Jay’s material obviously so that was my purpose and
getting with Jay was to teaching him how to organize his material I didn’t realize
there was a purpose of what he was doing.

Mac: What did you do with your job?

Speaker 2: Well Mac after I met Jay and decided that I really wanted to do
marketing full time so I set to change careers by did as one to work for Jay for
three years and then after that I actually have done joint ventures with Jay for
the last five years so I totally changed my career after I met Jay.

Mac: First of all here I meant excuse me but you hung around for a while

Speaker 2: Yeah

Mac: And you just did stuff to learn you didn’t get paid. For I don’t know what
period I really didn’t care to know but for a long time you invested in just walking
in his shoes right? And then what happened? And they needed bodies at one
point so suddenly you were useful and you were there?

Speaker 2: Mac, I worked as telemarketer for Jay for a while that was
something that I was not really trained to do and as matter of fact I was by far
the worst tele-marketer that we ever had and they really didn’t want me to help
them in this operation but I kept bugging them I had letter and phone call a fax I
just keep bugging them for a number weeks and they finally decided that it was
easier to let me to prove to me that I couldn’t handle working for him and after
two weeks I’d quit but I was in need, I really wanted to do this and so after six
months I was by far the best salesman they’d ever had

Mac: Motivation and want need, and desire and passion is more important than
anything. What was Jay’s technique and what was his marketing technique at the
time you started.

Speaker 2: When we first started it was one shot marketing I call it with
general ads and it would be with the success, entrepreneur or the magazine like
this and it be like sixteen page inserts and it will be direct letters from the editors
of those magazines to their people and those were joint venture type
relationships, so it was actually we had waited for people call in and once they
call in we explained what we were doing and then they either buy or they did not
but it was all incoming telephone calls.
Mac: What was Jay’s general feelings about the internet at that time?

Speaker 2: At that time the internet was of place where people make money
teaching people how to make money on the internet in other words the only
people who making money was the people who were teaching people and Jay
was actually a little bit of intimated by the internet because of the technology.

Mac: So you went to work on the system and you were analytical at the same
time you were working on your skills?

Speaker 2: Right Mac, what I did I chat with all kinds of in-bound and out-bound
telemarketing and just leaving messages all different types of things was more
proactive versus a reactive mode were before I said that the other salesman
were trained to react to incoming calls and then to respond to that. Well I
developed an outbound marketing program and the tremendous amount of
testing because the VP that Jay had didn’t care what I did as long as I was doing
my own money and I was willing to share the information I learned with him.

Mac: You have never been not on performance?

Speaker 2: No, initially it was that small draw but it was essentially
performance all the way.

Speaker 2: Okay. So you quit doing the business and you do other programs
and how were you selling those?

Speaker 2: Well what we are doing now is using a process type marketing
where we will send out a letters and will call to make sure people got the letter
then for the people who are interested in we will sent out them additional
information so its a very proactive process. We knew that the entrepreneurs out
there had excellent products and services but they either had terrible marketing
so they were just simply doing what their competitors were doing. They didn’t
understand marketing and we knew the answer was to be able to use Jay’s
techniques and the hard part was figure how to get that information to them to
allow them to take advantage of it.

Mac: Can I ask question of you people? How many people here in this room
talked to Carl? O man look around wow. This guy is a hard worker. How many of
you talked to him many times more than once? Awesome so you worked on
several programs and you still mostly mail marketing and mail and tele-
marketing and I call that tele-sales actually make distinction telemarketing is low
skill level, highly scripted activity where telesales is a very extremely skillful and
dedicated operation where you need the highest talents in the world to make the
connection. Where did the seeds of the techniques you used to fill this program
come from? I am using what’s the one thing that you added to the Mix to make
this fly?

Speaker 2: The one thing we added to mix was to be in constant contact with
people once they indicated interest, once they raised their hand and what we did
was we try to make sure we send an email to the people once a week and we
also would call people to make sure that they were interested and to give them
additional information, it was a process of giving them more when people buy
there is process where they buy on emotion but they justify based on logics, so
we give them more and more units of logic and more and more units of emotions
to allow them to buy with that will get them on the fence and then to move them
off the fence one way or the other. We didn’t care which way because we know
that it’s a numbers game

Jay: Sorry to interrupt but they all have genuine really priceless value in their
own right and they are not that does not mean that they don’t some element of
a credible and equitable offer of an exchange either attached to them in million
attachment or preface but is nothing covert it is pretty straightforward and the
content I meant who got the content we gave it free? I mean I pride myself on
giving better stuff than most people charge for on the internet and I am proud of
that because I can’t I wouldn’t lower myself to that level you want to distinguish
as we give great content.

Mac: So see he is so immersed in it. What do you call the system?

Speaker 2: It’s a drip process.

Mac: Why drip?

Speaker 2: Its where we keep in constant contact with people and once they
expressed interest give him additional ways to look at what they are trying to do
and feedback on how they can become more successful and solve their problems
utilizing our products.

Mac: What you would have done before the advent of fairly universal email.
How would you have followed up?

Speaker 2: Its hard to describe I would do the same drip process now but what
I would do before then was once I am expressed interest I would typically follow
up with thirteen or either leave messages or talk with them and I would leave up
to thirteen messages to make sure that they knew that I was really serious about
talking with them if they had bought. If they hadn’t bougt out I would only leave
five messages and then before I said I won’t follow up anymore.

Mac: What would be the relative response rate on that?

Speaker 2: I use to convert about one percent of the people who expressed
interest in something like this now with this method here we convert about ten
percent of people who expressed an interest.

Jay: Carl in one of the remarkable people in the world in that he takes the
philosophy, the ideology and the whole concept of consultative marketing to not
an art form to the 10th degree because he can’t not let you come from every
filament in his heart, he knows how much lessen your business would be if he
allowed you to pass. When you say no you really don’t mean no. When you say I
don’t think so, I know you really. How many of you have got more than once call
from Carl Turner? How many sensed that he was sincere in that call? How many
sensed that he had your best interest more at heart than his? The one who
didn’t, you didn’t really understand him because he does. He will call me and say
this person shouldn’t be here, this person can’t afford it or its marginal because
it might not be right for them but I want him to experience it. It also stems from
not an attitude but a belief system Mac?

Mac: The one of the things that was added and they did it so seamlessly. One
of list that was circulating around in last couple of years was that email and
internet marketing was different qualitatively and quantitatively different than
everything that Jay has taught over the years, it was different you didn’t have to
do that, none of it matter there was no value, you didn’t do value propositions
you just got edgy and sticky and all other sorts of stuff but you didn’t have to
work on value propositions. You did it as short as possible it was all supposed to
be all online. How many of the leads were generated online out of the group you
worked?

Speaker 2: Mac it was about 4000 that were generated online and 2000 that
were generated to the normal print medium

Mac: Was there any difference in the conversion from online versus print
solicitation, did you do an analysis on that?

Speaker 2: The difference between the conversion rate and the online leads
are the leads from the press solicitation was that we would do probably about
four times better from the ones that were from the print but we got two thirds
more or I guess twice as many from the online, so the result was that online lead
was just about as good as an offline lead.

Jay: when we did the PEQ before something like this, can I [ 0:00:37.6] so prior
to this we did the PEQ. I had twelve thousand e-mails when we started more we
generate over the cumulative process, 7500 leads. So let me say again we
started with a 12 thousand email list and over how many emails and sequences
to be sent out 20,23?

Speaker 2: I think it was closer to the 30.

Jay: So we sent 30 sequences of communication out to 12 thousand emails and

we got.

Mac: How much prints did you do?

Jay: One thing it didn’t work. The home study we did a mailing piece that we
spent 20 grand on for PEQ, it pulled, guess how many people it pulled?

Speaker: Zero.

Jay: Can you just save that one for when I came back from the bathroom

[Audience Laughs}
Jay: So you already told them whole story?

Mac: No.

Jay: Okay everybody except Carl and I thought its all over and I said no its just
going to take a little different approach. We are going to have do it sequentially
and we would love if the whole people came rolling and in writing the checks but
they are going to have to achieve it from a Force Multiplier of sort, then we sat
down and we kept doing it. Every time we did anything Carl said that said as we
thought how can we redeploy that. We did a report and we thought we will not
be able to get that to we sent an email so you said you didn’t really get to this
report was so different we are not going to let you off the hook because you kick
yourself and you be mad at us so we are offering you again.

Mac: All you have to do is call us to get it.

Jay: Oh yeah that will be great [unclear 0:02:16.6] when email first came out
and when the internet came out and they said oh you make it easy way go to the
website and its painless and its anonymous and we try that and we got 14
thousand people to the website, we thought 13.

Speaker 2: Twelve

Jay: Twelve excuse me. We thought, I like that. So we decided lets make people
more accountable, let’s get a higher quality lead or prospect we don’t care about
quantity so we decided before you can get the report. What you get the
confidential private website. You had to contact Carl by phone or by email and
had to give them all your contact information. If you wouldn’t that’s okay we
won’t give you something its valuable we understand no problem no arguments.

Mac: And there were several reasons for that right. One of which is establishing
rapport and the other is the technical reasons that you couldn’t blast email a
Gigabyte file without having everybody hates you?

Jay: That’s exactly right, but we had some elements. So we started doing stuff
and we started with the report and then we thought not enough of people got it,
so we stayed it for different places and different ways and set it again and again
and then after we got the report we decided a lot of people would like to hear
how it work in real life. So we got check on the phone with me. Then we are done
in the beginning. We actually did a live program and it was killer, and then we
basically summarized the live program and we made an offer the summary of it
then we invited people to be on a conference call and we done with it and then
we offered a tape of the conference call and then we offered a transcript
conference call and then we offered a Q & A separate conference call and then
we offered [unclear 0:04:03.8] and we took the attitude that I take with. Let’s get
back to my exercise when about a fourth of each room read the same book
analysis and the forth of this room is 125 people, got something different out of
it, does that make sense. Well 125 with different interpreted places on the
continue and are letters if I am guilty of anything I probably could make them
shorter and I am guilty about [0:04:38.0] but I wouldn’t make it as most people
think. They wouldn’t work I think if you heartfelt sincere you tell the story and
you let them in on the [unclear 0:04:49.6] madness they really appreciate that I
mean most people tell me they never got emails like mine and I frankly don’t
setout to make them special, i just write them from the heart.

Mac: I can tell you the number of people that I talked to over the years that are
a student of [unclear 0:05:06.2] programs. No I’ll be get his mailings for years

[Audience Laughs]

Jay: That is not a joke. We had an idea last year of sending out letters saying
you got to pay us 400 Dollars to keep getting our mails or emails and will reply to
anything you buy. How many people have a Jay Abraham file they have been
keeping. It’s a smaller representation than normal. Normally I get three quarters
bills so I have got two file cabinets full of your stuff and I say I know I expect that.
People use me as their model but that’s okay, that’s implicit. If you guys the
most tragic thing I would feel is in people de-subscribe to my stuff. I feel like its
their loss because we are one of the few people who have the willingness, the
openness, the dare-ness to try all kind of things and I would think I am the
greatest model of a person. I am not trying to be egotistical. I don’t care if you, I
lay it all out in the email, it’s funny when the switching over but I did the request
for case studies, you know you are on my email list as often, I ended up with we
had 18 thousand people we did an email asking for case studies subscribing and
we got 150 and everyone was excited because they have good taste they said
that’s terrible. I go back and said you guys don’t get it. I don’t believe it there is
only a 150 case studies in this. I want more and I want them by Friday and I got
250 more and then I thought this is not enough so I went back again and I did it
from another [unclear 0:06:34.7] may be I didn’t say this correctly you give me
a case study tell me how you made money and the one big idea. I am going to
share with you may be a thousand different ones like it but not [0:06:45.8] and
you would be able to find 50 or 100 from that to blow your mind and probably
make you millions of dollars and you are going to get that just [0:06:49.7]

Mac: Can I share with you one little thing that I have learnt from Jay is the
actually is the biggest thing and ever and if you walk away with just this it’s the
most powerful thing in the world which is never accept practical reasonable
realistic results. He doesn’t and he makes you not accept them either and if you
don’t they would get better.

Jay: I would tell you truthfully I am disappointed because I expected 700 people
and I am a little bit but a bit disappointed that I wanted to have 500 home
studies of 2000 and I only got 450.

Mac: this is not fun to be around not all the time.

Jay: I push because its hilarious. My hairstylist says I am his most favorite and
his most feared client because I don’t accept his haircut, you’ve been there when
I get my haircut and what do I do Carl?

Speaker 2: You always challenged him to do better.

Jay: I said that’s not enough Michael let’s cut it this way that you are really
happy you want me to be your poster boy are you happy with this you want me
to go out. I said is this really what you want people to think about and then they
think that guy is not very well groomed so I may have to say Michael Jay cut it
and I get great hair cut because I challenged him to perform at a higher level. I
challenged the market place to respond at a higher level because it has been in
their best interest. Now I don’t know if you could do that if you didn’t believe with
every filament of your being in the value, in the virtue, the benefit, the enormous
and the priceless worth what you have earned.

Speaker 2: Yeah. I give me an example on this when you do the PEQ we are
talking about the number of home studies we could do. I said we could do 50,
Chet said we could do 100 then we went to Jay and ask him what he thought and
he will do 500 and guess how we did? 500

Jay: Actually we did 800, but we planned into our expectation attrition. You
don’t have attrition that’s not something that we proud about it means you are
not stretching the envelope wide enough but if you have none or not enough its
equally tear able because you will not stretch it you want to get up to marginality
because you wouldn’t help people may be are on the cusp does it make sense?

Speaker 2: Right yea.

Jay: We lost 2 percent of you on yesterday at 2 o’clock. Of the 2% about 30%

converted to a home study of the remaining lets say 1.4%, two of them I talked
to were too close minded and they didn’t get it and should have left because it
would have waste of money because if they had stayed and paid they would
have done nothing it. They ended up having an atrocious and now they gotten
no need for 12 thousand Dollar worth of Goods and which is [0:10:08.1]and they
got it didn’t happen they didn’t say anything negative it normally happen this is
2 or 3 years from the today you see a smiling face from the back saying I left, I
am embarrassed I owe you 5000 dollar or I made 25 thousand dollar and 150
thousand dollar and we know that will end up with a good will don’t we it will
make us more money that we can imagine but our attitude is even worrying
about those its worrying about you. I am trying to give you a mindset may I said
to somebody at the break I am a little bit eager to give you more technique but I
said that I gave you in 12 pound or 25 pounds worth of free stuff and probably a
thousand pounds of other stuff more techniques that you would need in your life
your mind set without the philosophy, without the ideological approach
[0:10:57.2 ]but its useful [0:11:00.8]we are trying to really strip ourselves naked
we actually took the time Mac told you to publish most of all the emails we use
successively [0:11:09.8] letters didn’t we.

Speaker 2: Yeah letters.

Jay: But we put like 25 emails for PEQ and just so you know this we gave you
the secret to about 8 million Dollars’ worth of sales we generated you may or
may or may not want to emulate it, replicate it, or model it if you really which
you hope you can better you can even do better, but that’s a hell of a template.
Mac: It’s not as you see it’s not about email, it’s about marketing, it’s about
adding value and adding credibility.

Jay: What else should I say?

Mac: There is technique involved I don’t know obviously.

Jay: So I mean its starts with I have disciplined my mind to constantly think of
two things, in the contents of sequence what is the next layer or what’s the next
level of, remember the notes from the strategy pyramids and what’s the next
step to graduate and move forward? What am I not connecting for them what
are they thinking, I tried very hard not like aha, just like natural everything well.
What would I be thinking if I got this and this what would my mind be devoting,
and I also do that I think not to be audacious for audacities purpose but to be
audacious just to break their paradigm so they will stop for a moment and reflect
differently. I think what approach will just blow their mind and then tie in and I do
things that no one else does. I don’t want people to try to basically be doing this
from the get go and from the basically take advantage of. I want to tell the
upfront exactly what I am going to do why I am going to do it, what I expect to
happen, what will happen if I am correct and what won’t happen if I am not, why
it’s totally covenant on me to perform and why they should just go along for the
ride and put their defenses down. I think most people do that. They think that
there is something weird about doing that. I think that’s so natural. Do you know
anything Mac?

Mac: I think if there is a lesson for you, I am not in the Seminar business, but if
you are, the lesson is this, small incremental improvements, leverage by
technology all of sudden become truly unbelievable breakthroughs. You can see
nothing here even of itself was absolutely the key, they just kept working on it.

Jay: One thing was it was a belief system was the key.

Mac: And the belief system that they could do it and would do it and would find
a channel and a way and their knowledge of their clients and their market place
converges.

Unidentified: And then I tell you one good thing that happen and this is not
audacity but once we manifest our vision then when momentum started really
working we utilized it with candor and honesty to our positioning advantage
because we just say hey, here is the truth and it should have come across as
dead serious because I did a conference call on one call and it was not trying to
be arrogant and said here is the deal guys, this is the first one we have done in
seven years, I am at better point than I have ever been again. More I want to
show, I like people at higher level I had experienced more things more ways,
figure out the real way to make the internet work. I know how to add an efficient
way to get not just marketing knowledge but get you strategic implementation to
do it. I am going to have the room filled, it’s a matter whether it will be you or
somebody else and that’s the god honest truth and since there is no down side if
you don’t value so for, shame on you and I was very sincere. I think that is
sincerity.

Speaker: Rick has a couple of things.

Jay: Sure go ahead. I was just trying to help you, it’s not about how great we
are. We are trying to transform your mindset.

Speaker 2: This will work for you too.

Audience: A lot of times being an entrepreneur you always focus on who has
got my list, and one of the things Carl that I would like you to talk about is the
state you are in when you went and started working on the mastermind. I don’t
want to put words in your mouth but didn’t you call Jay’s list petrified wood, like
it was tough?

Speaker 2: Yeah.

Jay: How many in this audience really didn’t think that they are not going to buy
another thing from me again? Raise your hand. We thought different.

(Laugh)

Jay: Not because of us, because we thought you weren’t there yet because Carl
would tell me I am trying to sell things, and he says you know that and I say okay
great Carl and ask him how many strategic alliances? how many referral
systems? How many of them were embarrassed and they didn’t know and we
thought we owed you not letting you off the hook.

Audience: Could you integrate what you are talking about with either the part
Parthinon principle or the force multiplier effect?

Jay: Is that a Yes or No question? Yes I could.

Audience: And will you?

[Laugh]

Jay: Okay. So let’s take first multiplier. So where is our Colonel from here, where
is our

Retired Colonel?

Jay: Major. Pardon me. Where is your Brigadier General come on up. No the mic
is up here. You can borrow one of ours. So now in the service what did you do?

Major: I was a Major on active duty, I was on M1 tanks and M1-A1 tanks. Yeah I
know Force Multiplier.

Jay: So I want to talk about war fare okay. You probably know war fare in a more
elevated and scientific way than I. Right.

Major: I understand it pretty well.

Jay: You understand force multiplier? Could you explain it first and then let me
try to translate it from the militaristic stand point about trying to not just impact
but knock down and destroy and decimate the target, the enemy whatever it is
once and for all and you don’t care how its done, just that its done.

Major: Sure I mean as you are attacking an objective you are usually given an
objective in the military and typically what you do is, you take your own assets
that you have been given and you determine how you are going to deploy your
own assets. The thing that happens next is your boss says I can give you these
additional assets if you can deploy them properly and there is a whole host of
other things that go along with it but shouldn’t have ran up here. Anyways what
happens is once you get those assets you sit and you decide how I am going to
bring all these assets to bear at the exact same precise moment and time as I
am assaulting the objective because as I have assault the objective. If I have
been given artillery which is not an organic asset to me, if have been given air
defense, if I have been given air its called cast plus air support, If I have been
given helicopters, how I am going to bring all these things to bear on that asset
at the exact same time that my soldiers come scream and across the hill top and
start popping caps at the enemies.

Jay: And one more thing and your goal is to knock down and decimate the
target and it will be great if you knew that the bombs would do it or the foot
soldiers would do it or the tanks would do it. You really don’t ultimately care
which one does it.

Major: exactly

Unidentified: Just want to do it.

Major: I want it level when I am done.

Jay: Yeah. So give us a couple of more perspective or anything else. You don’t
have to, I was just saying may be there is anything other like attitudinal or
physiological.

Major: Its widely psychological that’s a good point because you know first of all
when you see an M-1 tank from the other end of the muzzle that generally sucks.

[Laughs]

Major: When you see you know a patty helicopter is coming across, then I have
good buddies who flew those and Cobra Gunships and an A-10 war hog blast.

Jay: All at the same.

Major: yeah all at the same time.

Jay: Its not a pretty picture.

Major: There is reason why ten years ago those [0:08:09.9] who got about their
foxholes and start walking in mass to Jay Abraham [Laughs] and that same thing
happens I think in marketing so.

Jay: That has been very helpful. Mac I think answer does it. Thank you.

[Applause]

Jay: Certainly better than I would have.

Mac: So he is airborne too look at that

Jay: Such a great visual, so thank you very much. Okay we knocked that one
down Rick. Anybody has a question. Go to mic, the only one question I must have
either been very interesting or very boring?

Audience: Boring

[Laughs]

Carl just see it, these are jokers.

Audience: Before you ask the question I want to make one comment about
Carl. I am on the east coast and got all this emails and then one from Judith Garf
with the telephone number in it, 08:30 in the morning I called this number.

Jay: 08:30 your morning?

Audience: My morning and Carl answered that’s what [0:09:08.2]

Jay: So let me give you a perspective its good and bad. This is an exercise in
how to do something and also how not to do something. Carl is an amazing man I
am not really in the seminar business anymore I am looking for those twenty of
you that wanted to do deals with [0:09:22.9], businesses I get involved in and
equities I can make and wealth I can create you know as an asset and stream for
my wife but I got such a knowledge base and most of you couldn’t afford me and
most of you, you know are will not be able to help so we’ll do a seminar
occasionally for four or five reasons which I have already shared wonderful
ethical way to find clients to it’s a great way to pay the overhead and for it’s a
great way to keep my proficiency and learn from all of you. Carl is remarkable;
Carl is so loyal he loves doing this. Carl is the sales person because we were
really not in the seminar business, are we? We sort of do a promotion and Carl is
like into in and go out for two months and chill out he is on fumes. He has been
doing this because he loves it. I would suggest you do that because you burn out
your normal stat but it shows you how much higher you are capable from human
performance.

Jay Abraham Mastermind Marketing 28

Audience: I do not read, if you go pass one page but I’m here line email style, I
send out short emails.
Jay: They weren’t us very affective. What is your business sir?

Audience: I sell several things, but air purifiers, water purifiers.

Jay: So all over the country?

Audience: All over the country.

Jay: I mean and I rather not now because when we are done with this, we are
going to do some exercises between now and about 8 or 9 at night which will be
much more specific and interactive and Q and A are problem solution or scenario
and strategy/ tactics and answer but you have an optimum, it may be you don’t
read them but somebody does and it maybe that you had to use your email as
stage effect. But I will tell you what..

Matt: Here is a little secret, hardly anybody reads them all the way through.

Jay: Yeah, but it doesn’t Matter.

Matt: It doesn’t Matter because the evidence, you know the proof and the case
is there and you can see that, as you scroll through it or you flip through it and
you go look at the supporting evidence here, look at the detail they taken and
you will go I will just cut to the chase and you to go the end and a lot of people
go from the beginning to the end. It’s the fact that it is there if you want to pick it
up that is important, not necessarily – you can’t necessarily force everybody to
read everything in sequence, that’s not the issue. The issue is, are you
answering every question that is being asked? That somebody needs to go
further.

Can they find it if they need it? If they trust you, they are guarantee, if they trust
your risk reversal in the front end; they might say all of this is irrelevant because
its risk reverse. But it’s there if they want to answer the question. The second
part base is that…

Jay: I only want ask you a question, only one right now because I want to get it
all through, please and thank you. You will probably have more time, I’m sure it
will be real nice when it get many people because we have a lot of ground to
cover. Just two more, that’s all? Okay, you but the ones that had them, gives
them a chance to ask them, okay. But just in this segment we are going to have
to end, okay go ahead.

Audience: Why I didn’t use HTML email and you think it would have increase
you’re qualify lead rate.

Jay: To do what? Why didn’t I?

Audience: Yes.

Jay: Because somebody whose name I wouldn’t mention, urge me to do HTML

instead and said that would change everything and we did it and we got less
response and more complains because it is less integrity. I’m not saying you guys
can’t, my voice, my communication, my style, it may be long, you may think its
high beat but it is pure and it is straight forward and it’s more understated and
home spun, don’t you think Matt?

Matt: This is why you have to test.

Jay: It may be that’s right for you, my style…

Matt: I know some businesses and they are totally opposite of that.

Jay: And they get great results and they test it along but we – you have to realize
one thing..

Matt: Yeah.

Jay: What you are doing, remember when Patty Lens said, like he basically – he
invites the people he wants and he disinvites the ones he doesn’t want, well your
strategy is going to create the people you either like long or short, just by the
way you do it. First of all it might bring a combination that you integrate together
and bring through. A number of people have told me that my training and my
written style as powerful as it is, it isn’t really maximizing educational
approaches and so while it appeal to one segment, it totally unpeel to 2 or 3
other. I’m sure it’s true, right now I’m content that I attract a certain category
that is in this room and I turn off another category and it’s not the one in the
room, it’s the one that left.

But you got to realize whatever style you take, unless you exist, we try to do
bunch of different things but I only know this is also prejudices, my prejudices. I
came from environments where I had to be able to denationalize, articulate,
denomensiably, validate enormous tangible, intangible worth to a lot of
intangible things, newsletter, investment forms people never had. So I had to
become, I sold – I mean I’m very proud, remember I sold like $2 million worth of
Salvador dollar linking without ever having a picture.

Matt: Without a print, without a picture.

Jay: Never saw the picture, no it’s serious. I describe it, I describe the effect, I
describe how cool it was, I titillate the fact you look at this thing, you look at a
woman butt and you see Christ in a sort of weird and I thought if I did it with
more eloquent and…

(Audience laugh)

And I titillated, I explain it, I desensastionlise it, I revered it, I compared it but I
learn how to do that early in my career, so that prejudices follows through. I’m a
little bit of a hypocrite, because if I taking it full force, we would do short ones,
we would do everything and I’m a little bit lazier than – I got to tell you this, for a
person with no real staff anymore, we do a lot of shit, don’t we?

Matt: Yes.
(Audience laugh)

Jay: You have no idea of the stuff we do and I…

Matt: And you have had real staffing.

Jay: Yeah but I do more with – I have an attitude which is pretty need, so
remember at the X-Factor last night, Ed O’Neal and his wife and a group, I don’t
manage particularly well, which is no great surprise, probably to you, but I learn
how to get the effect of billions of dollar worth of really good managers and
capitals. Somebody said to me, Jay what’s your strategy of management? I said
it’s really simple, it’s called ‘Do a strategic alliance with somebody who’s got 200
to 500 employees and has a need to keep the payroll made and the cash flowing
about 10 times more than I and I will be glad to run with my ball.

Matt: Yeah.

Jay: So I have lots of people that do stuff with me. Carl is not an
employee, he's a joint venture partner. This thing I forgot - this is self-
serving - if anyone has a nice entrepreneurial list of email, I want to know
about it because we have got the hottest email offer. We made $750,000
with one person working out of his house to setting up email with list. We
pulled $6 a name and the good ones which are pretty impressive. Just
because we don’t purport to understand emails but we understand
marketing pretty good.

Audience: Yeah, I had a math question. If you could expand on the model
on which you got all of us here. Carl you were talking about it briefly,
initially about how many emails you send out, how many email lists...

Matt: One of the things that Rick asked Jay to touch on, and it's more of a
Jay question I think, is the front end affinity tri-venture and what that does
to the dynamic.

Jay: Okay, we are going to talk about JV sometime in the morning, so I’ll
do a little bit now. I called my wife and told us we'll probably be done by
ten, 11, 12, one or two. But seriously, probably three. I believe that a
strategic alliance - somebody ask me sometime, "If I took every one of
your concepts away from you but one and you had to live or die on that
one, for the rest of your life, what would it be?" I said, "There's no
question, it would be strategic alliance, because somebody else spends a
life time, ten years, enormous amounts of human and financial capital and
effort - going to huge audiences to find that resonate with them,
committing themselves over and over again, transaction by transaction,
month by month, to keep good will and keep advancing and regenerating
that. Spending tens, hundreds, thousands, millions of dollars a month,
quarter, year on staff to fulfill and technology to do it to research and
production. And I get able to come in for underwriting a cost of a letter or
for making a profit deal, get access to emails that may cost them $100
million dollars” - I have told you, you have got a $500,000 dollar
unintended gift from me with that list. If anyone gets any solicitation from
that list that didn't emanate from me, you let me know right away
because we will smite that person with the full force our negative Karma. I
have an advantage most people don’t. This was part of my strategy from
the beginning. I have invested in, created and enjoy the wonderful
pleasure of having a reasonably substantial amount of good will accrued
around the world. That's always my plan. My plan to invest forward, if
nothing ever came. I'd still get a payoff, someday, somehow, somewhere;
I could help people. I have in this room, probably 50 of my ex-clients or
good friends that I insisted on buying an attendance for. I took a quarter
million dollars out of Carl and my pocket when we had a configuration that
we thought would be over filled, because I could not let them be here.
How many people here, as a guest of mine that I hounded you to come
even though I took money out of my pocket? A lot of people because I felt
it was the thing to do. I believe in helping - Brian Tracy - I have gone and
helped him two or three times. All the people here I've helped and a lot of
them have paid me and a lot of them through joint venture. I can go to
somebody who is either benefited from my services or has a relationship
with me and I can get them to basically do about anything, because they
know I am not going to ask them to do that isn't in their client's best
interest. They will also benefit but their clients will benefit more. I won't
ever breach the integrity of the sanctity, I'll do it right. I can go to anybody
in the entrepreneurial arena and odds are if they are entrepreneurial they
know off of me or my reputation, which is pretty good. I have got 188
matches on google where couple of people spend five grand or maybe 25
grand and did nothing with it blame me not themselves but most of it is
pretty darn good. If they don’t know, I can normally have a conversation
with them in an hour or so and give them so much value that they are
honor bound to reciprocate. Our attitude, which should be your is, there's
tons of people out there that have already spent a fortune, time, good will,
capital and human capital to build the relationship; why not figure a way
to collaborate with them. I don’t have time on this little segment but to go
through the nuances but I am delighted to do it when we come back or
are done with this. Out of 100% people in this room, how many came from
other people's list, as a percentage?

Audience: Approximately a 100.

Matt: Came from where Jay?

Jay: Other people's list. But incrementally that's a half a million dollars we
wouldn't have if we didn't do it.

Matt: Your list is composed of people who came initially on joint-venture.

Jay: Who’s a previous Jay Abraham product or attendee buyer, raise your
hands. Keep it up. Only put it down if you got an ad in the outside market -
if you came from any endorsement, keep it up. If you first came to me,
because somebody you had a relationship with, Tony Robins, Nightingale,
Garry North, Phillies Publishing, Angora Publishing, if some organization or
entity endorsed me in the very beginning when you start a relationship, if
that was the case, raise your hand. Okay, stand up, go to wall.

(Audience Laughter)

Jay: It may sound like it’s an exercise but I want to make a visual that I
want this to always be indelibly embedded. I am sorry to you but I think
you will appreciate that I am doing this. Don’t you think Matt?

Matt: Yeah

Matt: I am appreciating it.

Jay: If I just ran ads in the paper, if I just rented lists from the outside
market and did nothing else - wait till everyone clears out...

Matt: My guess is; half the people sitting down just don’t know how they
got it.

Jay: Did you start your relationship by reading an ad in the outside

newspaper, or did you get a letter or an email about me from somebody
you had a relationship with. Think again before we do the count, because
you did go to the wall. Okay don’t count the people at the seats. Count the
people around the room, times not $5,000. How many people, in this
room, have bought more than this from me, raise your hands. How many
people in this room have bought at least two live or home study courses in
the past, raise your hands. We have 40,000 people on our old list to which
most of you came from that has spent about 90 million dollars with us.
Probably, of the 40,000; 32,000 who probably spent 80 million dollars
wouldn't be here if it wasn't for what?

Matt: Once wall street journal had a special on business education. They
had a lot of numbers from various universities programs and I started to
add their fees up. Jay had trained more people and made infinitely more
money for everybody with bigger results than all the university programs
put together. I am not talking about undergraduate, postgraduate,
business executive, small business - it was incredible. How small some of
those programs were with all the clout that says, Orton has for instance.

Jay: Matt only because we are two minutes behind on our schedule. I am
not showing this to show you how great I am. I am trying to show you
opportunities for yourself, do you clearly get that. One thing I need to do
is going back to the mic. How many of you people, standing up, got
something - maybe not profound but impactful - out of what we just talked
about? I need about seven of you on each side to stay at the mic and the
rest of you sit down. Whatever the rest of you got something, you have to
tell people what that is during the break or lunch, whatever come first. I
need about seven of you on each side of the two mics. I want you to
explain what the insight is, how it can be best applied by everyone - as
quickly as you can, go ahead.

Audience: Well, Jay I started getting your emails about the Mastermind
Alliance. These emails kept coming. They were very good and they talked
about Napoleon Hill. Then, I started getting the emails and as they went
on, it just got better and better and you explained how I'd be in a room
with 650 people and I'd be getting all the energy. It reached a point where
I just couldn't say no.

Jay: What's the impact for everybody else here?

Audience: That we are all benefiting tremendously. We are meeting

people, making contacts...

Jay: What's the impact of that awareness that can be translated into an
application that everybody here can use on themselves or their business?

Audience: I think all of us have to be much more aware of sequential

marketing. Keep doing it consistently, weekly and eventually this is the
result.

Jay: Good, Thank you

Audience: Jay, I think you just proved it when this last time we got up
because you asked the question how many have gotten from either Tony
or some other associate, bunch of us went to the wall. Then you repeated
the question again basically said the same thing and another group got up
so we just asked again and it happened. That's what I got.

Jay: I like that, thank you.

Audience: The way we acquire things and the way things come to us, it's
always - Tony Robbins once said, "I don’t want to own anything, all I want
to do is have access and use of because we all come in naked and we all
go out naked alone. All we do is rent this stuff while we are here". The
acquisition of relationships and the way you draw people together. I was
looking at the table last night, I kind of ditched out, and I noticed you are
very specific with language. You are very precise with it, even your coin
words tie into the precision - are we going to go through a program? It
doesn't say program, are we going to go through a seminar? Doesn’t say
seminar. I looked at your stated purpose and I thought about this word,
training. What you have done here is if you remove the name tag and puts
their thumb over the word training, you find out we have just been
acquired. We have just become and entity that is - read it. We are not in a
seminar. We are not in a program; he didn't use that word did he? If you
got a parachute, in training school when you are done, you become a
paratrooper. We are not at a seminar, we were acquired. We are at a
training. Now, this entire body that came from relationships and
associations is now a new association proprietary to him and we are
collectively Jay Abraham's Mastermind Marketing group.

Matt: You and 10,000 people before, which you will find connections with
maybe 50,000.

Jay: We will try to get you all connected somehow, some way. There are a
lot of people who have done something on eBay.

(Audience Laughter)

Audience: I came to the program specifically because the way it was

marketed. I am familiar with Jay's stuff. I have been to several events for
about eight years but it was the marketing process of attending it. I
discounted coming because of the schedule and everything but Carl
quilted me into it because I realized what I didn't know about everything
that I have been taught, but specifically the process. The thing I realized
when I was sitting here, more so with the synergy and the accumulation
and the connectivity from Robert Alan and Marc Hanson and everyone and
how this is one community of ideas and that was probably more good than
anything.

Jay: Good, thanks.

Audience: I first found out about Jay when I was working for Tony Robbins
organization. It was a number of years ago and it continues on a lot over
the years. The thing that struck me today when I was up against the wall,
was that when you set an alliance, that is a gift that keeps on giving for
years and years, people come back and do more and more out of the one
time - connection from alliance.
Audience: I got my first exposure to this seminar through Tony Robbins
mailing. I looked at the price and threw it away. It sounded great, but I
didn't know, threw it away. A friend of mine is here and she says, "I have
got a couple of emails from Tony Robbins," I deleted them. Then she says,
"Okay we have this great offer. We can both go and share," then I am
listening. Someone said, "You could use certain funds to pay for it". Now, I
am really listening, so I am picking up the phone and making all the
arrangements. So, it did take a lot of levels to get me here. One thing I am
taking away is that my greatest asset, which is strategic alliances, is the
only one amongst others that I haven't done anything with. That's my
greatest leverage.

Jay: That's great. This is true, most of you don’t realize that you have a
dual valve and I'll get into it when it we talk about it deeper. You can joint
venture off of other people's lists, media, data, and deliverable
communication. They can do off of yours and they are very wonderful and
very powerful and lucrative. Very values based beneficial, two way
contribution strategy for you that can make a very, very big difference.

Audience: [Unclear 00.00] for me, from this is been the power and
strength of relationship with whom you are doing joint ventures with - with
the people on their list. I had gotten some people [unclear 00:01] but I
don’t have that kind of relationship [Unclear 00:05] but I had with my
friend Joe Christopher who sent me an email. I didn't even open the
package from [unclear 00.24]. I get so many emails from them but when I
get something from my friend Joe, I read it. I read that and it said that,
“Jay is having a conference. He hasn't had that in eight years. He might
not have one again.” I told myself I was going. I didn't even listen to the
tele conference. That was it for me. The thing is, when you are analyzing
joint-ventures with somebody with a list, look at how strong their
relationship is with their list. That's going to give you a much greater
response.

Jay: Great, thank you.

Audience: The optimization formula, seeing how you came from strategic
alliances and the number of clients and then upselling - I'd much better be
here than listen to the tapes, but I'll listen to the tapes for sure too. What I
am curious about is, on frequency, what the strategy would be if you had
these three or four times often. Would it be easy to sell and fill seats like
you have today?

Jay: We used to 12 a year. What happened was Carl would - and we had a
sales force. Three things would happen, we would have so many people
coming through the process in the pipeline there it was only a matter of
graduating them in about 20% of the home studies. I have one advantage
over most people. You all do too if you do what Bob Alan said and have to
figure out your audacious - my stuff may not be packaged well and our
time commitments may be terrible and the pasta maybe cold but we give
you guys so much more, in everything we do. What we don’t do is try to
give you so much more to make it up to you that you can't hate it. You got
to see as a role model what you should do. We basically give somebody a
home study and 20% think, "Damn! I want to experience that, or they go
out and use it and make 50 or 100 or $500,000. Then, psychological laws
and reciprocity come in and they feel like they have got to give back. We
are very strategic but it's not manipulative. We don’t really care what we
do from hour to hour. Do you guys really care whether I basically use an
instantaneously conceivable exercise to make a point or whether I go
through a list of elements as long as you get it, really? We understand
that, that's sort of our attitude. If I am good at anything it's figuring out
how to reclaim something, making way to Sunday ethically, don’t you?

Matt: Yeah, you are the bounce back king, no question about that.

Jay: We'll just figure so many things to do with we don’t have anything
else to do it, we'll figure someway to joint venture ethically with
somebody else who can do more stuff that we can't. I take the attitude of
how many ways should I, can I and must I give greater value to benefit,
protect to my market and you should think the same thing.

Audience: Jay, the single most important thing I have learned is to

contact many people, many times with many offers from many different
points of views and then always follow up with a personal touch.

Jay: There's one other element that maybe Carl talked about. The
composition, the construction got to be externally focused. It's got to be
with their best interest in mind or it will not work. Talking about me, me, I,
I, I; we, we, we instead of giving to you, you, you and thinking about they,
they, they will just be suicidal. There was one element we may not have
covered but that is a critical to connectivity, don’t you think? Thanks

Audience: Hi, Robert Harbower from Apparel Emboss. We manufacture

and distribute emboss equipment decorate apparel. Think that I learnt
was, I remember when I got the email which said 40 days and nights of
merciless money making, I was looking forward to it. The thing I am taking
away is Jay's honest. He tells you what's going to happen, how it's going
to happen, how's he's going to get there and then he takes you on the
trip. Sometimes we sit here, we hear all the speakers but we forget that
we have to tell people what we are going to do, instead of starting to do it
right away. That's the biggest thing for me. Thanks.
Jay: I am suggesting that this will work for everybody but I found, not just
spiritual but success liberation in not trying to keep people in the dark. If I
didn't explain what we are doing and why we are doing and why does it
matter what we do, you'll end up getting what you want - you'll be a little
bit frustrated, wouldn't you? , "What in the hell is he doing?" but by taking
all that confusion, those questions, that inconceivability and incongruity
away and replacing it with logic, with respect, nurtures educational
awareness and taking it down the path while future pacing it and why we
are going to change it all the time - please turn that off - it makes it a
totally different dynamic, doesn't it. Did I tell you all, you are going to get,
40 days and 40 nights of merciless money making and you'd be
shamefully embarrassed not to sign up for at least a home study because
if you were a person prejudiced towards action you would be honor bound
to give back. Any one of the reports or the excerpts I send you will blow
your mind and you could do anything with one of them. How many people
took a report? One of the free excerpts and did apply it and got something
out of it? How many didn't read the report and didn't apply it and now feel
like you want to kick yourself? How many don't know what you know or
feel? How many are brain dead from the weekend?

(Audience Laughter)

Jay: How many don’t know if you are in the right seminar? How many of
you think this is [unclear 08.29] family program?

(Audience Laughter)

Jay: How many of you came here for the free cold pasta?

(Audience Laughter)

Jay: Just checking. Continue.

Audience: What I got of the whole thing was that education shouldn't be
measured monetarily. That goes hand in hand with what you were saying
about educating your clients.

Audience: May name's Bob Adams. I like in the UK. My invitation arrived
on Saturday morning in early November. I faxed back the acceptance on
Sunday. I am unique in the sense that I didn't need a follow up. On
Monday I got a phone call from somebody to say, "We've got your fax, can
we just check the address. We have to send you a packaged material".
The lesson I want to give everybody here is - reinforcing the point that Bill
made - you get an opportunity to meet somebody, make that first
impression count. Thank you.
Audience: To solidify my AHA! Moment, I'd like to know how man in the
room here would be in form or another a millionaire. May I see your show
of hands? Yet they applied and signed up, no matter what level your
customer is. Market, market, market. I market to millionaire and I am
always hesitant that I shouldn't email them too much but I was just proved
wrong.

Audience: Hi, I am Pamela Collins and my husband is Tom Collins.

Jay: Not to be confused with [unclear 00:33]. That's probably the first time
anybody has ever made that joke, I bet. You can use it from now on, okay.

(Audience Laughter)

Jay: I'd never heard of Jay Abraham at all. I have worked with Tony
Robbins for a number of years. I was a trainer for him and did a lot of
things. This last year got my husband involved with Tony Robbins and
some of his ideas. What happen was that my husband came to me
because we are at a point in our office where we couldn't seem to get to
the next level. We had used the Value Pack and the quality of people was
a onetime thing. It just wasn't working to the degree that we really wanted
to see our office grow. I sat and I thought and I called Tony Robbins and
spoke with Billy Sanderwall there. I begin to tell him my dilemma. I said,
"You know we are involved in several of your programs. If there's anything
we can do so that we can learn to market our business more effectively".
She said you know, "What you signed up for really doesn't gear you in that
direction. You know what, just this week we had a meeting and was told
about the Jay Abraham program. I have 25 page fax that I'll send you and
you can take a look at". I said, "25 pages, my word, what is this?" I
couldn't believe it. She sent it to me and I began reading it. I highlighted
all these things and said, “Tom, I think it's incredible, because they are
going to guarantee and if it doesn't work, we get our money back". We
looked at it, we talked about it and I called her back and told her that we
were going to do it. The kicker is the big package comes in and I don’t
recognize the name on it so I said, “We are not accepting this package,
this a bit heavy thing". I didn’t know what the heck that was. I was going
to reject it, my husband says, "Now you just wait a minute". He goes back
in his office, he opens it up and comes out and says “You owe me an
apology”. He opens this thing up and I am like, "Oh, my word, look at all
this stuff, it will take us a year to get through this". We started listening to
the tapes, because we have another office in the mountains. So when we
take our weekly trip up there we started listening to the tapes. I am
writing information down and all the stuff starts coming to me. It was
incredible and it was even before we came here. I just want to let you
know, it's exciting to be in an environment where I see there is support
group and there is a way to be able to see that there is direction. There is
way to have things work for us. There’s always a way. It's exciting to see
the reality that there are a lot of motivated people out there that are very
interested in supporting other people, having their business grow, being
great in shape, add value and make a difference not only in their own
environment but also do that to all those around them. Thank you so
much, this is so exciting.

(Audience Applause)

Audience: [unclear 04:08] generation investors. This is my seventh Jay

event. I just want to get something off my chest before I explode. This is
the Mastermind group, Jay's group, right here right now. This is not the
end, this is the beginning. Look around, there's a lot of generous people in
this room. From my experience from 98 events, I am still in contact with a
lot of people that I can send them my ads and my ideas and they will let
me know what's happening. I am sure the people in this room will do the
same for you. So use them, work with them and help them too.

Jay: Don't hustle, unless you like to dance.

Audience: Hi I am Jean, apparently a resident Psychiatrist...

Jay: Soon to be a pathologist. He wants to sell you a series [unclear

00:07.27] after Quincy.

Audience: Just addressing the force multiplier effect. I feel that certainly I
have been approached that way by Jay coming at me by deploying
multiple speakers. Not to really destroy me, but build me up. And I have
found that immensely valuable. I think it's an excellent example of
permission marketing, because I have paid to have these people market
themselves and their products to me and it's one of the impressive things
which, I think. They have the insiders club and the insights and I paid to
get the excerpts of their speakers programs so I could review them and
perhaps buy them. What I have gotten out of this and perhaps others can
also use it, that first to really establish myself as becoming empowered as
a preemptive, preeminent expert in the area I want to address. I could
create a book, 'A la Chicken soup series' by really not writing it myself but
getting some of the people I have done research in the area I am
interested in to write it more in Lay man's terms. It would be more
appealing other than in the select specialist area. Then, give added value
to the contributors of the book, just as Jay's given it to the speakers who
have come to speak to us. This would educate the public with added value
in terms of reports or white paper. Perhaps, you can get a website for this
they can download it.

Jay: Thanks a lot Jean. It’s good having you back the seventh time. We are
going to break for lunch short, not yet. Who did not get some meaningful,
maybe not profound, but meaningful insight out of this day? Anybody? If
you didn't do me and yourself a favor and make that insight known at
lunch to the rest of your table and see if they can help plumb out of you
the fact that you really did. You just haven't validated or recognized it yet
because I think you have. If and when you realize you have what it is,
realize what the action is associated with that recognition of the revelation
is, and what you need and will do with it when you get back. At lunch, go
around the tables and share it with everybody. And since this is the last
day, unless you guys are going to hang out tomorrow, if you are done with
your sharing at the table, pick up your plate and maybe exchange places
on other tables. If you get spilled water on you, don’t get upset, just wipe
it up and move to another table because this is the last chance today and
the dinner you are going to have to do this then you should have a lot of
insights to share and if 650 get to tell at least 30% of the people at lunch
what they got out of today or accumulative new insight, it will be like
getting like 650 different seminars, all condensed into an hour and half
which is a pretty good leverage. If you have email list that has a lot of
entrepreneurial business owner, serious quality business opportunity
seekers, professionals, association members that are heads of businesses
or managers you should come up and see me yourself. Give me a card
because we do money making secrets book and it's been a killer. We only
do it as an endorsed promotion. It's a very generous one. I don’t handle it
but colleague of mine does and we'll set it up with you in January. We only
do it in launches but it's a killer deal and you probably can make tens or
thousands of dollars from it.

Audience: I just wanted to say one thing about the session here, who
wanted to demonstrate that process marketing works. One, you have got
an example out of it and two you do it. That was the idea of the session
when Rick and Jay were talking.

Jay: Did we accomplish it? Is it evident to you?

Audience: I don’t know. I think we did. I think process marketing does

work. You can do it.

Jay: Remember I said I am going to take three things and tie it together.

Matt: Carl, did they get this list?

Carl: I'll email it to everyone.

Jay: This is wonderful. This is Car's principle and process of marketing.
They are very interesting. Number one; most entrepreneurs provide great
products or service but only know how to market like there competition.
Number two, effect marketing can make a difference between making a
living and being very successful. Number three, Jay Abraham's marketing
training can make that difference. Number four, I owe it to my prospect
friends to help them get the success they deserve. Number five, I do
whatever it takes, ethically, to provide my prospect friends to provide the
marketing training they deserve. Number six, I had a dream of helping the
world entrepreneurs become even more successful through effective
marketing from Jay Abraham. Number seven, I have a plan to achieve this
dream. Number eight, I love to set impossible goals to achieve them.
Number nine, I believe I will attract the right people, staff, and friends to
help me achieve these. Number ten, I love to plan, implement, track,
adjust, plan, implement, track, adjust, plan. Number 11; I must mentally
sell myself on any product or service before I sell it to others. Number 12,
I develop excellent sales tools; sharpen the saw. Number 13, I believe I
parlay prior successful processes to future successful proceedings. That's
Carl Turner mind-set. That's very wonderful it is.

Audience: (Applause) Thank you Carl.

Jay: One final thing, will take about seven minutes, depend on what we
have got. Years ago, I was fascinated with the concept of thinking outside
the box and now it has gotten tripe. Now it's got some pretty cool inside
the box stuff. I want to make a point in this session, what's the metaphor
to show how ludicrous and limiting and stupid; operating at a rigid
paradigm or linear thinking or conventional attitude or being unable to
stretch outside and open your mind of possibilities and applications and
approached and ideas from other markets and I thought if you got a box
like this, you realize that most people trap themselves in a box. When you
look at your hand like that it looks pretty daunting. When you hold it away
it's pretty little, but if you think about the effort that it takes all day and
night, to keep yourself squeezed into a stupid little box, it's about a
thousand times more effort than it takes to just take the damn thing and
get rid of it, then your whole world is your oyster. Does that make sense?
What I like you to do, because we so happen to have a few dozen boxes
here, we are going to pass them around the tables. I want the first person
to get it to say, "Forever more, starting this day, my personal and
business life, I will never again stick myself inside a limited box," or
something to that effect. First person does that, sign your name and date
it as an affirmation and pass them around and when you are done, then
you should go to lunch and come back. If you leave early, everyone's
watching you that you are hypocrite and you don’t get the attitude and we
will make mockery of you for the next seven hours, so you are all
deputized. Watch who leaves or who tries to get the first piece of cold
pasta. It's now 1:30. This will take ten minutes. We are taking an hour and
fifteen minutes break. I want you back at three o clock at the dot.

Rick: We have a Donald Moine fanatic, fan, zealot. Okay, two fans. Any
more fans of Donald Moine before we get started.

Audience: (Applause)

Rick: Oh my goodness. You got a fan club, that's great. For those of you
who are not in his fan club, one of the things that really got me excited
about it was that Jay asked Donald to coach him, counsel him, on
improving his own sales process. I don’t know the exact figures but Jay
told me that he had geometric improvement in his closing rate.

Donald: It’s more like exponential.

Rick: Sorry. Exponentially 25 times per call. He's got a very powerful
message. As you can see, Jay loves being fluid and spontaneous and
knows how to do that. Those of you are sales people in the field, you can
appreciate the value sometimes of being able to think on your feet.
Donald has a different message. It’s very specific, it’s very structured and
I think it has a lot of value. Any man that can improve somebody's sales
that's already a master by 25 times, I am listening to you. With that said,
Donald Moine.

Donald: Thank you Rick; that was a great introduction. It was just the way
I wrote it. How are you all doing?

Audience: Good

Donald: Folks, here's the way this works. In case you haven’t noticed, this
is a live presentation. The more energy you give me, the more I'll give you
back. How are you all doing?

Audience: (Scream)

Donald: That's more like it. I think you are doing lot better after lunch. For
those of you watching this video in the year 2010, we are in Los Angeles
California, December 2002, we have been going from seven in the
morning till two in the morning at the Jay Abraham Mastermind summit.
We just went from seven in the morning till two, without lunch. You guys
look a lot better now. You look marvelous. I have a very interesting
challenge. You have about three hours of material to share with you in one
hour. I was doing another boot camp in the last three days that's why I
wasn't here. But I am very happy to be here today. Jay told me this is one
of the smartest groups he's ever had. Is that true? Yes or Yes?

Audience: Yes!

Donald: Alright, so we are going to go into hyper drive. But I have an

interesting challenge because guess what? My wonderful program is in
volume two. And as I look out over your desk over the thousands of page
of material you guys all have volume three. Since you are so smart that's
not a challenge. You are going to take rabbit notes, you are going to
transcribe into volume two and I am going to sweet talk Jay into sending
you the completed notes. Because I don’t have people sit here passively
and listen to me. I make you work. I have fill in the blanks, we have
exercises. I am going to do this a little differently than what I normally do.
I am going to follow the outline, I’ll tell you to write some things down,
write down as much as you want, have some fun. Some of you are still
eating, that's fine and we'll get you the completed notes. I had a
fascinating experience about three week ago. I have been privileged to be
on group calls with Jay Abraham, Brian Tracy, Mark Victor Hanson and all
of the other speakers. Some of the most brilliant marketing minds in the
world. We brainstormed this program. Jay got us together about a month
ago and said I want to talk to all of you guys and have one question,
"What is going to be the big marketing break through? What's going to be
the mega trend of 2003?" This diverse group of people, we actually
reached agreement. Can you believe that? Back to basics. Brian Tracy
says he's going to go back to basics. A lot of people forgot how to market.
It was so easy in the 1990's wasn't it? We forgot how to market. I do a lot
of work with financial planners, stock brokers, I just signed up a top
annuity sales man in the world. He makes $5 million a year selling
annuities. He hired me to help him make $7 million. I said a year after
that, we'll make $10 million. It got too easy for stock brokers and financial
planners in the late 1990s. They forgot how to sell. A lot of them are
starving. How many of you are financial planners or stock brokers? How
many of you are stock brokers but you didn't raise the hand the first time?

Audience: (Laughter)

Donald: Okay, I see a few more hands going up out here. Folks, it's back
to basics. This stimulated my thinking, I started thinking. What are the
real basics? Why aren't you selling more? You guys are the superstars.
You're the pinnacle. You are the superstars of the entrepreneurial world.
Comes down to three things. Number one, your product is not good
enough. If that's true I can't help you. That's not true for most people.
Most of you have outstanding products, world-class and innovative.
Number two, your service is not good enough. Your service sucks. If that's
true, I can't help you, you need to work with another consultant. But that's
not true for you because I've gotten to know a number of you this
morning. Your products are outstanding, your service is great. Why aren't
you making more money? Why aren't you enjoying the success you
deserve? It's because your words aren't good enough. Write this down in
large letters. My words can make me rich. You can't change your product
overnight. You can't change your service over night. You can change your
words. Ladies and gentlemen that's all you need to do to double your
sales, to triple your sales. Do you believe me?

Audience: Yeah

Donald: To accomplish anything in life you have to first of all believe it's
possible. Let me share an example with you from, Jay Abraham earlier this
summer before I met him, and I have been buying Jay's material for years,
just like you. I have spent thousands of dollars on his brilliant books, tapes
but I didn't meet him until easily September of this year. In August,
another client of mine, that many of you know named Ted Thomas had Jay
do a 90 minute conference call to 1,800 to his very best clients and Jay
was supposed to market a $5,000 package. At the end of that 90 minutes,
as brilliant as he is; he sold three. Ted was disappointed, Jay was
disappointed. Jay said what can I do Ted. Ted said, "You have got to call Dr.
Moine". You don't have to call me doctor, call me Don. He said, "Cal
Donald Moine". He helped me go from a closing ratio of 2% to 35%. Same
product, same price - changed his words, and that can change people's
lives. Ted Thomas called me up and said, "Donald, Jay Abraham is going to
call you in the next half hour". I said, "Yeah right, Ted". Within half an hour
Jay Abraham called me. We found out we live about a mile from each
other in California. There's peninsula jets out in the ocean about 20 miles
southwest of here. So getting together at odd hours at his house, he has
his office, he call me up at eleven o clock at night, that's cool, so I started
coaching him and that was cool. I started coaching him because on
October 4th, he had another event coming up with Robert Alan. A little bit
over 500 people were showing up. Changed a few words here, changed a
few words there; Jay is a brilliant marketer but he'll be the first to admit
he's not the greatest one-on-one sales person. Instead of working at my
usual hourly rate, Jay said I am not going to pay you. I am going to do
even something better.

Audience: (Laughter)

Donald: I said, "Wow, what's that Jay?" he said, "We are going to do a
revenue split. We are going to do variable compensation. If it doesn't work
I don’t owe you anything, if it works you are going to get a big piece of it".
I said "fair enough". Folks he went to the Robert Allan program. I wrote
scripts for him, I emailed him scripts. Jay doesn't read his email. His
secretary prints out his email, then he reads it. He called me at home, I
met at his house. His Palatino mansion, 7,500 feet - I walk in there - acres
of granite. This is the best story about the power of words, by the way. It's
one of the houses you can see through. You walk in through the big double
front door - some of you have been to Jay's house, just granite
everywhere, beautiful. I said, "Jay how much did this cost?" Because I
have put granite floors in the couple of my bathrooms, it's very expensive.
He said, "It didn't cost me anything. I met a guy who has a big stone yard
and I did a swap. I exchanged some of my services for $45,000 worth of
granite". That's just the material cost. That's the power of words, ladies
and gentlemen. He doesn't pay for anything. One night he was on the
phone with me and its 11:30 at night, he says, "Donald I have to get off
the phone". "Why?" I said. "I just had a brand new Porsche flown in from
Germany, put on a flatbed truck and delivered to my house. It just arrived
here from New York". I said, "That's a good reason not to talk to me Jay,
get in that Porsche go driving man. He doesn't pay for anything. That's the
power of words. So Jay does the program. He says, "Donald you have got
to come to office Friday morning, I have forgotten some of the scripts. You
have to print them out again" - he lost them, "come to my office, coach
me, Carl Turner's there". Jay's always on these weird diets so he's eating
eggs this morning and drinking his "pawn scum". I give him his scripts, I
am there coaching him and he call me up at the end of the day says,
"Don, I have got some good news for you and some bad news. What do
you want first?”. “Bad news," I said. "Don't know how I did it, I lost the
scripts. I forgot half of what you told me". I said, "Wow, how much worst
can it get?" He said, “Now, I have got some good news, I closed 48
people, $5,500 each. We brought in $256,000 dollars for a ninety minute
talk. That's pretty good isn't it? "Folks that's what a plumber makes!"

Audience: (Laughter)

Donald: I am getting a piece of that, so I am pretty happy. Do scripts

work? Do powerful words work? How many of you have used scripts? Folks
you used all be raising your hands. I will conclusively prove to you in the
next hour. Every one of you in this room uses scripts. You just don’t know
you use scripts. Do you know what a script is? It's simple - write this five
start bonus idea. Script is an organized collection of words, that's all it is.
Your words are either; organized and powerful, they are polished or
disorganized, they are rambling you are shooting from the lip and
shooting from the hip. That's a lot of entrepreneurs and sales people are.
They wonder, "Why am I not more successful?" Sometimes I have been
hired by fortune 500 companies to coach their sales people. I say what are
your toughest objections? That's frequently what I ask people. What are
your most difficult objections? Why doesn't everyone buy from you? I want
you to think about that right now? Why doesn’t everyone buy from you?
What are your toughest objections? What’s separating you from the sales?
They tell me those objections. I say "What's your best response to that
first objection? What's your second best response? Third best response?"
Most of the times they don’t know; they say they will think of something.
Then they wonder why they are not successful. Folks, we all use scripts.
The only alternative to scripting, since you don’t have your notes, I am
going to do this from most of my memory, is that okay? And I am going to
sweet talk Jay into getting those to you. The only alternative to scripting is
something called ‘Glossolalia’. Since you all know what that is I am not
going to define it. What is glossolalia? It is word salad. Its speaking in
tongues. It’s what schizophrenics do. It is nonsense. Its gibberish. Up -
down - couch - sofa - food - chair - blonde - blue eyes - brown hair - light;
do you talk like that? If you don’t speak in glossolalia, you are using
scripts. How many of you, last night, called your spouse on the phone? You
used a script. What did you say to your spouse? Your words determine
what you get in life. My words determine not only how much money I will
make, my words determine, how happy I’ll be in life. Your words determine
not just how much money you make, your words determine how happy
you will be in life. If you are unhappy in your marriage, it's because you
are using low quality words. What did you say to your spouse last night?
Did you say, "Honey, did you wash the car? Did you do the laundry? Did
you wash my underwear? Did you starch it? Did you clean the cat box?"
Those words are going to get a certain response, aren't they?

Audience: Don't come home.

Donald: Or did you say, "Honey, I really miss you, I love you so much. You
are the most beautiful woman in the world. I am the luckiest in the world
to be married to you. I am going to the most powerful training in the
world. When I get back, I think, realistically, I’ll be able to make about a
million dollars in extra sales before Christmas. I want you to reserve the
week between Christmas and New Year, because I am going to take you
and the kids on a trip to Hawaii. We are going to stay at the finest hotel.
Honey I love you so much, I can't wait to get home with you. This seminar
is incredibly powerful". If you said something like that, you'll get a
different response aren't you? Say yes.

Audience: Yes
Donald: Folks we all use scripts. It’s not a matter of not using scripts. You
use organized words, whether they are written down or you rely on your
memory. The only question is how good your scripts are. There could be
someone else in this room who has an inferior product, inferior service but
they have a more powerful sales person, whose going to sell more? They
will. For those of you who do have your books, this is section nine of book
two and you can follow along with me. Why didn't half of you admit that
you used scripts? The reasons you won’t admit you use scripts is that, bad
sales people use bad scripts. When we think of scripts, who do we think
off? We think of the people who call us at seven o clock at night say,
"Would you like to subscribe to Time magazine for thirty years? Would you
like to change your long distance service?" Those are nonprofessionals.
Don't judge yourself by the worst practitioners. Do you know that Jay
Abraham uses scripts? Do you know that Robert Alan uses scripts? Do you
know that every single speaker you have heard, uses scripts? You take
away their scripts - how good are they? The first speaker this morning
talked about personality types. Are you a red, are you aqua or are you
yellow. He wanted you to take his test. He was a great speaker. Robert
Allan talked about personality types. He said, are a tortoise, are you a
hare, and are you a rabbit. He asked you to go to his website and take his
personality quiz. That’s one of the oldest ideas in the world. I am a PhD
psychologist, it’s called temperaments. Hippocrates wrote about black
bile, red bile, and yellow bile around 2,000 years ago. This is one of the
most important ideas you are going to get form this conference. Whoever
has the best words wins. Whoever has the best words wins. Are you going
to go to that website and take that personality test or you can take the
one's that's handed out. Who had the more powerful words? Who reached
you? Do you sales people have the most powerful words? Does your
website has the most powerful words? Do you have the most powerful
words? I am going to show you how to create those yourself. Now there
are many different types of scripts. There’s the initial presentation script,
question scripts. How did Socrates teach? Socrates is considered the
greatest teacher who ever lived. He taught with questions. President John
Kennedy was asked, "Mr. President, why is it that all Irishmen answer a
question with a question?" He thought about it for a moment and said,
"Do they?" Scripts for dealing with concerns and objections. I don’t even
call them objections anymore, I call them concerns. People don’t have
objections. They have mere concerns, mere little trivial concerns. That's
called reframing, it's a whole other seminar. Then there is closing scripts.
The boot camp I did over the last three days, a number of people - when
we started off on Friday, when we asked, "What would you most like to
get? If I have a magic wand, if I could bop you over the head, give you any
power and ability you wanted?" Many of those people read a number of
my best-selling books on neuro-linguistic programming. I wrote the first
book on NLP in sales. I think that's when Tony Robbins was in junior high
school, so a few of you have read it. It's in about 11 foreign languages. I
wrote the first book on hypnotic selling techniques. About the only
criticism that book ever got was that it was too powerful, some people
said. It gave people to much of an advantage. There's an over emphasis,
ladies and gentlemen on closing. Some of the people on my boot camp,
these last few days have said, "I want to learn these powerful closing
techniques". After doing this for twenty years, I have worked my way
through ten years of college as a sales man. I sold stereo equipment,
underground gas link storage tanks that was not very prestigious. I sold
underground gasoline storage tanks; used ones. I worked for a company
that tore down gas stations, dug up ten ,20 thousand gallon gasoline
storage tanks, tested them, reinforced them, tar coated, painted them and
it was my job to sell them. You know what I figured out in my second year
in college? I was making more money working part time as a used
gasoline tank sales man than what my college professors were making.
My goal up until that time had been to be a college professor. I lost a lot of
interest in being a college professor. I became much more interested in
selling. I don’t believe in closing hard. I believe in opening hard. I think if
you open hard, if you open well, build a deep level of trust and repertoire -
my philosophy is you grab them my their throats and their hearts and
minds will follow.

Audience: (Laughter)

Donald: If I could start my sales presentation by withholding someone's

oxygen for a minute, I’d be in a pretty good place. So that's what we are
going to talk about here today. I want to talk with you about the difference
in mental maps and reality. What is more powerful, a mental map or
reality?

Audience: A mental map.

Donald: Because you don’t know what reality is? Your reality is different
than your reality, which is different than Jay's reality. Even on the sensory
levels, there are many things we don’t see. You know that a hawk can see
a brown mouse move in brown grass from one mile up in the air. Can you
see that? Can you hear a dog whistle? On a sensory level, many things we
don’t take in. The information you take in, you forget 90% of it within one
hour. The little tiny bit that's left over is filtered through your prejudices
and distortions. The little residue of what's left - you call reality. What will
people do over differences in mental maps? What would people do over
differences in reality? I say "Unga bnga bunga", you say "Unga bunga
bonga!” I'll kill you. I'll drop you, I’ll pop you. Here in Los Angeles last
week, our new police chief declared a war on gangs. How many of you
know that? We have had 40 gang killings in the last month. There's some
neighbor hoods ten miles east of here. Don't go there at night. If you were
wearing a red bandana when you were supposed to wear a blue bandana,
"BOOM! I'll take you down, brother". Let me ask you a question. Is it
dangerous in sales to question people's opinions and beliefs? It's called
burning your book. Trying to show you how smart you are - it's called
burning-your-book, in business. What are you going to do? How are you
going to adjust your scripts to deal with all their different perceptions -
that's what we are going to deal with right now. Those of you who have
the handout, turn to page three of the handout. The first thing I’d like you
to write down is that 'Objections are not the truth'. I was shocked in the
boot camp I did couple of days ago when I was helping people with their
scripts, handling objections and concerns, I asked one guy, "what's the
most difficult objection you get?" he said, "your price is too high!" I say,
"What's your best response to that" He said, "Dr. Moine, there is no
response. Our prices are too high". I realized this guy is 90% defeated.
Folks, objections are not the truth. That's not the truth. Some people say
Jay Abraham charging $20,000 per seminar is too expensive. He doesn't
believe that. If you believe that true, you are three-quarters defeated. Your
first sales job has to be your selling yourself. People were not born with
objections to your products or your services. There's not a baby in a crib
that says, "Your insurance is too expensive or the mortgage origination fee
is too high," they were taught that. They were brainwashes to think that.
You don’t have to change your products. You don’t have to change you
service. If you change the way people see your products and services, you
can literally make millions of dollars. That's the power of words. Napoleon
said, "We rule men with words". I have updated that for the 21st century,
"We rule men with words, we rule women with words, we rule children
with words, and we rule ourselves with words". What words are you saying
to yourself right now, do you even know? We speak to ourselves at the
rate of 500 words a minute. Isn’t that incredible. Isn't that miraculous. Do
you know what you are saying to yourself right now? When do I get a
bathroom break? Boy that was a good lunch? How can I use this? You are
talking to yourself whether you are aware of it or not. This guy's in what's
called a telephone posture. If you studied NLP, he's looking down left. He's
in the telephone posture. He's stimulating what's called the brocus quarter
of the brain. Heavy internal dialogue. Remember Rodin statue, the
thinker? This is true even in cultures where they don’t have telephones.
When people were in this posture and looking down left, they are
stimulating the auditory quarter of the brain. Powerful things going on.
What words are you saying to yourself? The words you are saying to your
self are more important than anything I can say or anything Jay can say.

Jay Abraham Mastermind Marketing 29

Donald: They go for houses that have no equity. Then you pay them
$5000 or $10,000. The reason you do it is you'll have to pay a real estate
agent, $20,000 to get rid of it. These people get paid to get beautiful
houses. They have developed a program on this. It really is an amazing
program much better than Carl Sheets program. They needed my help
though. They do a 90 minute seminar to sell a $1,000 book and tape
program. They tape recorded their program. We spent a full day going
though it - from morning till night perfecting it, improving it, pumping up
the words. Folks, they are now averaging over $30,000 per 90 minute talk.
These are people who used to work in General Motors. They think they
have died and gone to heaven. I didn't change their program, I didn't
change their prices, and I just changed the power of words they are using.
So please, do yourself a favor, tape record your presentation. Transcribe it,
look at it. You will find, I guarantee, using the techniques I have shared
with you here, dozens of ways of improving it. One last idea is use sensory
words. Those of you who have used NLP know about this. I have spoken to
a lot of you here at the program. Some of you are very, very visual people.
You use lots of visual words. That's not clear to me. Can you shed some
more light on that? Hey that's a bright idea. That's hazy to me. Some of
you are very auditory. You use lots of auditory words. Sounds good to me.
Hey that rings a bell. Now we are in harmony. That struck a sour note with
me. Some of you are very kinesthetic; use lot of kinesthetic words. I get a
kick out of you, let's run with it, my back's up against the wall, don't try to
strong arm me, I am not going to stick my neck out. Watch you want to do
is make sure that you presentation have all these words in them so you
can reach your full range of your clients and prospects. Many of you, I am
sure are doing presentations that are merely visual, auditory or
kinesthetic. When you insert all these words in, it's a very, very powerful
technique. Sometimes just by that alone you can increase your sales by
30% or 40%. I have got so much to share with you but we have an
extremely exciting line up for later today. I'll be happy to show you the
book. Some of you brought my books. I have already autographed a bunch
of them. I'll autograph a whole lot more. Jay and I look forward to working
with you next year. Folks, my wish for you is, I hope next year is the best
year of your life and that every year after that gets better and better.
Thank you very much.

Audience: (Applause)
Jay: Am I on? Do I have good friends?

Audience: Yeah.

Jay: A lot of good ideas. You have a colorful shirt, I like that shirt. I got a
couple of questions to ask, Donald. Just so you know it's not conflicting. I
have lots of business relationships with lots of different people depending
on the situation. There's a big company and they've got plenty of money
and we get a big enough piece for long enough and forever our profits
enter. I have different partners for different situations. Don’t get boggled. I
bring out different advantages in different relationships. I have a lot
relationships with a lot of people. Donald, if you didn't say this, you should
know this. I am telling you about a couple of things because this is an
intimate form. I don’t do front of the room selling. Do I Donald?

Donald: Very little

Jay: When I do it over my lifetime I've been like the embarrassment. One
time I spoke for Tony Robbins instead of paying me six figure fee. He said,
"I'll promote your [unclear 00:03:50.10]" I said, "That's good". He changed
his mind when I got on. He didn't want to do it, I didn't want to do it.
Neither of us wanted to do it and we accidently sold a half a million
dollars. So that was the one time I sold a lot. Then after, I had to do it
myself a couple of times and sold like one person. When I tell you about
something, I am not trying to sell you mister. Here's the deal. I did
something to one group. Donald said, don't educate them as much. He
said, "Just tell them these things". So he gave me this really well-honed
script and I of course, being the attention deficit person that I am, forgot
about three quarters of it and adhered to about half of the other quarter. It
was interesting because instead of getting one or two people, I got 50 or
55. I like free form spontaneity but I got to say, when somebody can do 25
times more yield by structuring it and orchestrating it, you probably
should pay attention, get it right and if you want to maybe personalize it.
This guy is one of the only people in the country who has a PhD in,
basically studying scripts. He was on the founding stages back with me
[00:05:17.03] whether you like it or dislike it, it works. If you have it based
on Jay Abraham's materials, methodology and your intent is honorable
and noble, it works even better.

Donald: Folks, Jay is being excessively modest. He is an outstanding

scripter - one of the very best in the world. Every speaker who’s been up
here has praised Jay. Have you noticed that? I am going to do something
incredibly radical. I want to tell you a secret. Not every Jay Abraham idea
is original. He's not the only person in the world who has spoken about
referral selling, about seminar selling and even unique selling
propositions. You know what, he does it better than anyone else in the
world. His words are better. I know people who do programs on unique
selling propositions, they are shuffling, and they are struggling, trying to
make $500 a speech. Jay has people pay him 25; $50,000 per speech.
Same material, better words. When Jay speaks sometimes, it's like
diamonds. Have you had that experience like diamonds coming out of his
mouth? Write this down on your notes. One final thought I want to bonus
you with. Mark Twain said this, "What's the difference between the right
word and the wrong word. The difference between the right word and the
wrong word is the difference between lightning and the lightning bug".
What would you rather have? Lightning or a lightning bug. What would
you rather be? Lightning or lightning bug. That's the difference one word
can make. You multiply that over hundreds and thousands of words. When
Jay Abraham flies into a city like Brisbane, Australia. It's like lightning has
landed. The power is in the room. He's got ten thousand clients in
Australia. He's made the good Australia billions of dollars. I go there too.
When he gets on that plane and he leaves, it's like the lightning is leaving.
When you learn scripting, ladies and gentlemen, you learn the power of
words. Direct mail - I have got to get this off my chest before I explode.
That's a script. Isn't that incredibly powerful, that's Jay Abraham. When
you learn this, you will have a job for the rest of your life. If you want to
pick up tomorrow and move to Alaska, there's always a job for great sales
people, great entrepreneurs, people who can write and script. You want to
move to Key West Florida. You can pick up tomorrow and go to Key West
Florida. You know in the great depression, the unemployment rate in
America was 24%. I have actually read the newspapers during the great
depression. There were lots of jobs for sales people. There's always great
jobs for sales people and marketers. That's the power of words. That's the
power of Jay Abraham. Thank you all for inviting me here.

Jay: Two more questions.

Donald: Okay

Jay: I have a lot of friends and they have different skill sets. This man is
very, very unique because he's got two things that he represents.
Immediate, instant leveraged improvement. Imagine this, two days ago
when you left, your sales people were contacting X people on the phone,
X people they were getting their presentation to impact. You go back and
you understand this, and all of a sudden it's two or four or seven. Now,
because I am giving you different tactical and strategic perspective, you
have to shuffle it up and integrate it. I am purposely doing that too get
you guys to see that there are a lot of possibilities and filaments you
weave together in the fabric of your unique business strategy and selling
approach. I would take heed from this. Donald is a really cool guy. You are
going to be available for the tactical panel we are going to do.

Donald: Yes I will

Jay: I can't wait to hear his answers. If you'll hang out, I'd like to call upon
you. We are going to do about three hours of hot seat real life situations
after Scott. If you are available I’d love to have you on.

Donald: Have fun.

Jay: The only time I get benefitted is when my clients of my own benefit.
Those of you who have got a script, you ought to check him out for a day
or half a day because he's really cool. First of all it’s counter intuitive that
it's not comfortable. It's not natural. But then what happens?

Donald: It becomes natural, it become wired into your brain.

Jay: You have told what you have told them, what's the one thing you
haven't really told them yet that they got to remember and they got to act
on, other than what you have already said, when they go home.

Donald: Great question. I would say - sales stories. What it means is the
most powerful scripts of all our sales stories. People remember stories.
They forget all the factual stuff you tell them; the specifications. They
remember stories. Jay Abraham teaches with stories. All great
communicators teach with stories.

Jay: Bible is the most memorable story because of its parables.

Donald: That's right. Jesus taught with stories.

Jay: Good

Donald: No matter what you thought of Regan's politics, he taught

communicated with stories. His nick name was 'the great communicator'.
I've got to share this real quick with you. I saw a video tape of Regan. He
had a problem of rising unemployment during his presidency, just as
Jimmy Carter did. Jimmy Carter was asked a question about it, "Mr.
President, what are you going to do about the rising unemployment rate?"
Jimmy Carter was a very brilliant guy. Do you know what he was actually
trained in, similar to Carl Turner, he was a nuclear engineer, just like Carl
Turner. He trained for nuclear submarines. To answer that question he
said, "Well, I have got a 13 step program to get America out of the
unemployment crisis and the first step is..." He went on and on. He was up
to like the 11th step when people started saying, "No more, no more" we
don’t' want to hear any of these steps. Regan in his presidency was asked
that same question because it was the time when employment blipped up.
You know, the first word out of Regan's mouth, usually was, "Well..." He
would look down on his right foot. That's what people do when they are
getting into their kinesthetic and getting into their body. He wiggled his
head a little bit. Had a little turkey waddle - very handsome guy - little
Turkey waddle going on, he'd say, "Well, it reminds me I got a letter few
days ago from a little girl in Pueblo Colorado and well, she told me that
her father's been out of work for a few months. He was looking hard for
work but he still hadn't been able to find a job. Well, I haven't slept very
well the last few nights thinking about that little girl and her father who’s
looking for work. And I am not going to sleep very well until every
American who wants to work has a job!"- Next question. He didn't answer
the first question. You felt satisfied. You felt, he's losing sleep over this.
That's the power of a story. That's a great question, what’s the only thing I
left out? Folks, stories are the most powerful scripts of all.

Jay: I love stories. What do you think is the Harvard Business School's
approach is? Case study. What's a case study? Anybody read my 'Getting
Everything' book? It has 395 different examples, case studies,
illustrations, real world truthful examples for you to be able to relate to.
When I get people to go up to the mic and tell what they did, is that very
useful for you? People love stories. They love analogies. Metaphor is the
way the mind really grasps things.

Donald: It is. We are homo-sapiens but I think we are homo-narrative. We

think through stories. As children we were educated with stories. As adults
we are influenced by stories. I listen to you guys out in the hallway. You
know what you are doing? You are telling each other stories. Here's how I
use Jay's technique. One guy I met at the back of the room says, "Here's
my unique selling proposition" a guy from Toronto. I have analyzed Tony
Robbins programs. Lot of his seminars are 80 to 85% stories and people
love him, don’t they? That's true. Folks capture the best stories and write
it down. Human memory is fallible. Are you like me? I forget things. If I
hear a great new response - I am at Jay's House, I am sitting there in his
mansion. He shares a great idea with me. I have got a pretty good
memory but you know what, I'd write it down. Because I know two weeks
from now I'll be faced with the same challenge. And if I don’t write it down
I'll be saying, *Knock Knock* "What was that brilliant thing Jay said". Write
it down. Capture it, you'll own it forever. It will make you wealthy. You
words will make you rich. Thank you very much.

Jay: Donald, thank you.

Jay: First of all, isn't it great that people will come from wherever they are.
Donald was doing a seminar. He cut it short. Changed his schedule so he
could be here for us. Be here vicariously for me to be able to gift him to
you. You have got to realize this. Every one of these people could do a
week do you understand that. I could do 86 hours. I did probably 400
hours in the stuff we gave you before we gave you on Saturday and today.
I hope you understand I am trying to give you what I think you really need.
Three things, we are going to bring on somebody that really deserves an
extraordinary hand for what we have unintentionally done to him. He's got
such a great message to give to you. Before I bring him I am going to tell
you, what I am going to do afterwards so you guys are prepared. I need
hands, who is absolutely leaving tonight. What time are you guys leaving?
11 tonight? 11's going to be pretty good. We are probably going to go late.
Here's what we are going to do. I make value judgments as we go of what
you need. You have got to trust me that we are doing what you need.
What I am going to do next and for probably a number of hours until I get
you guys inculcated. We will do hot seats, focus seats, Qs and As where
we basically start making a real world analogy - case study type -
marketing makeover or strategy restructuring and then as we are doing it
we are having out of body experiences where we are showing you with
parenthetical comments, what techniques we are using, what application
we are using so you guys can start seeing it while making copious notes.
When I feel like we have done enough, that you are layered well enough
to understand it, we'll then build a program. We might get there at eight,
we might get there at 9, and we might get there at 10. Those of you who
have to leave, we will get there and it will be on tape. I am going to go the
duration. I called my wife and said that it was going to be a late nighter.
That's the next thing. You might think about question, situations, and
scenarios. We are going to pluck lots of things. We are going to do the
internet. We are going to do it the way I said. Did you guys share insights
like I had asked at lunch? Was it really revealing? That's cool. I have a
message I am supposed to give. Did you all get insights from the insights?
Do you remember what they were?

Let them down. Truthful yes or better write it. Why don’t you take a
moment while I am getting my thoughts? Write down what your big
insights was from lunch. We'll probably do something with it. If it was
profound enough to be insightful, it's probably relevant enough to be
made a prisoner on paper. You got so much stuff for us that there's
somebody here who in the shipping business, where are you? I did not do
you justice because they handed it to me and told me about it twice and I
said okay and walked away. You have made arrangements if they want to
get their stuff shipped. We have somebody's who is going to be here, if
you guys want to ship your stuff home. If you not going to carry it all. You
know you're going to walk away with more stuff than you got at home in
the mail did you. Keep in mind, I didn't have to do that. I am not looking
for someone to say, Thank you Jay. No, I just want you to know that you
have no excuse for not - I spent yesterday and today at strategy and
mindset. I haven't been as detailed because I have given you 5000 tactics
and the stuff you have got before, the stuff you have in the workbook
which we didn't have the need to cover. There's also the stuff I gave you
today. Is that evident to you. Tactics are useless without a strategy to
deploy. You get that?

Audience: Yes

Jay: Greatest tactic in the world. Strategy deployed is usually from a

mindset that believes it is thoroughly and absolutely achievable. Do you
get that?

Audience: Yes

Jay: We are getting to the final home stretch. There's something else
that's relevant to you. Oh, a David Carrington, who had to leave last night
who has been to seven or eight programs. Very fine gentlemen and he
told me he's made a really good come back from cancer but he was
fatigues and had to leave to go back to home. He came up and said, "I
feel so bad, I wanted to make contribution to everybody. It was so obvious
nobody thinks about it and I forgot, would you do that for me?" I said, yes
and I forgot this morning. The contribution is, he said, "All of you can go to
your local chambers, or your local civic organizations and offer to chair the
fundraising or the membership drive activities and use my marketing
activities as guinea pig beta test. You'll negotiate, navigate yourself
through all kinds of great context. You'll be hero of the highest magnitude
and it will be fun and very full filling". I thought it was a very neat idea. He
wanted to give that to you and he wanted to make sure I gave it to you.
Rick, what have I forgotten? Spar have had has brought over the new CD-
ROMS for you as a great reference anchor from now on. I had Bob
Cheswick get some more of his little educational CDs on digital marketing.
I acknowledge people I like. I don’t make a dime from any of this, I just
think they are cool guys. For some of you they are worth at least
examining. What else Rick?

Rick: One of the things, Jay's been making statements like, "I am going to
get you that". The unclear 03:36.08] interview, things like that -

Jay: Oh, did everyone get the strategy and pre-eminence? Anybody read
it? Who read it? It's pretty good isn't it? It's not good as the notes when I
clean them up but it's a good primer. You can read every day in the
morning. It'll take ten minutes to remember who and what you are and
where you are trying to go? What your hopeful desire for everybody else
is?

Rick: Yeah, we are going to publish a website - a private one that's only
for you, don't give it to anyone else - to fulfill on all the things that Jay
made commitments regarding.

Jay: I don't pay attention to what we give you but we'll always get it for
you.

Rick: So, we are going to give you the website by end of tonight and then
over the course of next three weeks, we are going to go through the tapes
again. Find out all the commitments he made, because I wasn't keeping
track of them.

Jay: If I made some. We have a secretary. Who’s the person I nominated

as secretary. Where are you? Oh, she's not here right now? You are fired!

Rick: Yes, case studies, the emails, and the interview and there was one
more.

Jay: When you get those case studies my recommendation is to print

them out and read them. Who’s on Garry North's list? This is sort of funny.
It's a funny story. It didn't make me happy at the time. I basically spend
three months acquiring these case studies; went to great effort. Then we
spend enormous amounts of time. Rick spent 500 hours organizing and
cleaning them up so you didn't have to read a lot of wasteful stuff. They
were designed only to be shared by the submitters of case studies.

Rick: There were better part of a 1000 case studies that came in and they
were filtered down based upon applicability, results, based upon strategy
which got called down to 700 which then called down to 502.

Jay: It was a really neat deal done with total integrity. I said, “Guys I want
to know how you use this specifically. I got a lot of uses. If you give me
yours I'll give you up to a 1000 another ones and it’s for your own use
only”. It went out and said, "For your eyes only, don’t share it with
anybody, absolutely no body"

Rick: Jay, how much did you sell the last set that you did?

Jay: Last one's I sold for a thousand dollars a set. I wasn't sure what I was
going to do with it. Whether use it as a premium, whether use as a
training guide, whether I would just use it for a new book but I wasn't
going to make it readily available for anyone other than somebody who
paid the just and fair price of submitting to me a case study. Now we have
this wonderful man - Gary North. He is attention deficit. He's oblivious. He
doesn't read anything. His heart's in the right place. He doesn’t get
anything. We did it in installments. Rick was working for four weeks
processing it full time. It's not his full time job. He was with us for this
project. He gets the first 150 done, we download them for your eyes only
and nobody else. Gets the second one out. Doing a seminar. AMA right?
It's like $25,000 seminar. We come back feeling so good. I get to the office
on a Saturday there's a letter saying, "What in the heck is he doing". Garry
publishes the website for his whole email list...

Rick: And endorses the case studies and directs them to the website.

Jay: It comes out, he's so cute, he says, "I have an admission. I sat down
to do my newsletter last night. I got these and I started reading them at
about midnight. At about eight in the morning, I am still reading them and
forgot to do my newsletter and need something to submit". You couldn't
get mad at him, but that's how you guys got introduced to it really, isn't
it? Then I said, "Don’t give it to anybody else, stop". Then he sends an
email and says, "Last Chance!"

Audience: (Laughter)

Jay: Anybody who knows me, deep down knows that if somebody did that
intentionally to me, they would be very unhappy campers. But he is like
an attentional deficit, in the ozone, doesn't have a clue, and is that right?

Rick: Absolutely.

Jay: He was so cute.

Rick: He was so genuine. It was a touching letter.

Jay: The CD or the link they give you, there are 502 case studies
submitted documents by actual people. This gentlemen’s read it. I am not
selling it, I have already given it to you. It's got probably, for your benefit,
millions of dollars of direct application. Wouldn't you say? You get the
mindset, the action, the application, you get how they did it, you get how
it works, you get what the lesson learned is - 502 of them. What I am
hoping you guys will do is not say "Man I got the greatest collection of
paper weights in the whole country". That would be very disappointing.
That would be so cruel to yourself.

Rick: Just from an overall perspective, just so you realize how actionable it
is. The most popular strategy that people took from Jay and actually
implemented and denominated the results was risk reversal.
Jay: It worked for almost every company that submitted them in some
form. Direct or indirect. Remember I was using the Real Estate example
yesterday where the world isn't black and white. You can't always have a
100% risk reversal but if everyone else doesn't do anything and you do
some of the things, or most of the things or at least areas you can control
and can legally, ethically, financially protect, reverse, take the risk for, you
win and everybody else loses. As Max said, "Win or Die" You are going to
have a lot of fun when we come back because you are going to do case
studies Q and A's, lightening round. So come prepared to create your
action plan. Say, yes, it is a great idea.

Audience: Yes it is a great idea.

Jay: There's this person named Scott Holman was introduced to me a long
time ago and he used my technique along with others that he learned to
engineer a company that he took from nothing to a $100 million. Why am
I using two mics? Somebody in the bathroom said, there's no such thing
as attention deficit and I said, "Okay". Scott sells it and gets into other
fields of endeavors. Takes his understanding of mine and other people's
stuff and formulates an original synthesis - creates a way to deal with one
concept at a time. It's very powerful because it's slow, methodical,
adheres to the kind of philosophy Jet Holmes teaches. Then he starts
analyzing stuff that I and other people do and starts engineering all kinds
of really killer ways to find massive win falls. You notice, almost all the
people up here who are really inspiring, didn't just fall of a truck. They
have spent hours, years, lifetimes studying and analyzing. I was going to
ask Donald another question. This is the key to everything. People ask me
what's the real secret to everything. I tell them, the secret is there is no
secret. You do it and you got to keep doing it every day. That's actually
quite liberating because there's no magic, there's no silver bullet. There
are things that will produce, extraordinary, profound and amazing
improvement on a sustaining compound basis. If you do them all and do
them systematically and sustain them, layer them, add to them, monitor
and measure them, adjust them, replace them and keep doing that the
rest of your life. That's the secret. That is the secret. How many hours of
video and audio have you studied and analyzed in your life. Would you
imagine? Or did you just fall of something and one day be able to
understand all this?

Donald: Jay and I are neighbors and I didn't know any of this but just on
the drive here this morning I made it all up. I wrote the first PhD
dissertation in America on Sales superstars.

Jay: How much time to it take to do that dissertation?

Donald: I spent three years studying people making a half million dollars
a year.

Jay: Three times 12 months times thirty days times twelve hours, is that
right?

Donald: Gee! I was in college; I have had to have time to party? Six hours
a day, but I finished that in 1981.

Jay: Then you stopped studying, was that it?

Donald: That's when I started doing it really seriously folks. I was

teaching part time at the University of Oregon and they said Donald if you
leave academia, you'll never be able to come back. I was making $14,000
a year as a junior professor. My first consulting assignment was more than
that so I really didn't regret leaving the world of academia. I love words.
You know how come people collect gold coins or butterflies or cars, I
collect words. I collect powerful scripts. There's nothing more exciting to
me than hearing a powerful new way of explaining a benefit. Sometimes
one sentence can change someone's life. Do you believe that? Say, yes.

Audience: Yes

Donald: I was going to give an example that over the boot camp I did this
last weekend, this person I said, "I have already got an example". I said,
"Who is that?" We have been talking about sports and sports figures and
he said Pete Rose. He was a great baseball player. He's been trying to get
into the hall of fame but because he was busted for gambling they won’t
let him in the Hall of Fame. He said, "I bet you a long time ago someone
said one sentence to Pete Rose that changed his life". I said, "What was
the sentence?" The guy said, "Want to bet?"

Jay: That's good. How many hours have you spent, watching videos,
studying transcriptions, listening to audio tapes to try to perfect and refine
you skills.

Donald: I have spent about half my time doing that. That's about 1000
hours a year for the last 20 years. I want to make it very practical for you
guys. I would say to develop a full-fledged script book. From beginning to
end - initial presentation through all your closes. You probably, in most
cases you have to spend from 120 to 200 hours.

Jay: However, that's what you think because you think linear that I am
talking about a script book. I am talking about just becoming proficient at
whatever you do.
Donald: Just becoming proficient. Write this down on your notes. A script
does not have to be long to be good. One of the things in section nine of
book two. I know it's upstairs. You will find an actual outline of a script that
we did for [00:04:20.03] Michigan. A mere twelve pages helped them raise
$14 million went they went public.

Jay: How do you become an expert? Do you become an expert by falling

off the truck?

Donald: No.

Jay: You become an expert by watching videos for a year and saying I got
it.

Donald: No.

Jay: You become an expert by doing it up until the internet comes and not
watching it anymore [unclear 04:52.29]

Donald: No.

Jay: How do you become an expert on a sustaining basic?

Donald: By expert modeling by spending time with sales super stars.

When you get a letter from Jay Abraham you respond to it, you sign up for
the program but you also analyze the letter. How did he get me to do what
I am doing? By continuous learning, let me give you an example, very
practical. You want to go out to dinner tomorrow night. Your spouse wants
to go to one restaurant you want to the other restaurant. Who wins?
Whoever has the best words wins. If she talked you into a different
restaurant, analyze the words she used.

Jay: Don’t talk about words for a minute. Take yourself out of being a
wordsmith. You are an expert. [00:05:46.00] Okay thank you, good bye

Audience: (Applause)

Donald: That was easy.

Jay: Do we have fun?

Audience: Yes

Jay: I am not really wasting your time, do you understand that? Going on
here's the neat thing. We have got this gentleman whose mastered
different incredible distinctions. How to engineer massive win falls using
my stuff in your business instantly as well as figuring out the hierarchy of
opportunities meaning this dawning spectrum of stuff. This incredible
array of incredibly stimulating titillating ideas, this palate of possibilities.
But where in the world do you begin and how you do it and who’s on first.
What's the first step? A little intimidating? He's got the answers. We had
him originally scheduled to do two session and we had to adjust it.
[00:07:28.12] He came to help me. We had to compress him from this to
that. Okay sure, I am in the moment; I am having a good time. I am
learning. I am experiencing it, I am growing my practice too but Scott
Holman has an incredible message. Scott Holman is a very knowledgeable
guy. Scott Holman has broken through the one million dollar mark, the five
million dollar mark, the twenty million dollar mark, the twenty five million
dollar mark which is when most companies start experiencing turbulence
but fifty million dollar mark which is when most of them crash and burn.
The sixty million dollar mark, the 75 million dollar mark up to a 100 twice.
Now, he's trying to take some of the things he's learned and reduce it
down to entrepreneurs because they are fun and enjoyable and he really
has a gift to give. He's going to demonstrate it and consolidate it because
he is a real - stand up for a minute.

And orthodox people from Brooklyn. No you are not going to do macho
man. Where are the other two gentlemen? Stand up for a minute. This is a
set up. Anybody in this room Jewish. Oh, I happen to find three. You know
what a mensch is? What's a mensch? A human being who’s got a good
heart, good soul, and rolls with the punches has your interest at heart,
more than his. Scot Holman's going to teach you for an hour about
something great and I wish we had more forums. Scott.

Audience: (Applause)

Scott: All right! How's everybody doing?

Audience: (Screams)

Scott: I have got a question for you. How many of you want to leave here
with a few simple key word. Fully executable ways to absolutely put
$25,000 to $16 million in profit in your pocket?

Audience: Yeah

Scott: Next slide. It may sound like hype because those are big numbers.
Jay, Chad and I did PEQ 3 where we got to spend five days with 50
companies or so and I did a session similar to what I am going to do here,
although as you heard it will take 2.5 hours which I can compress it into
one - it's not a problem. 50% of the participants said that they felt they
have found at least a million dollars from what I am going to take you
through right now. I need your energy high. Everybody stand up, because
you are going to get blown away. Because I have an hour, I have to move
extremely fast. I already speak fast now. I really need your energy level
here. I need everybody blazing with a pencil. As I walk you through this I
apologize but I want to ground you in the material. I want to get you doing
some workshops. You are actually going to produce something here. It's all
about implementation. One idea is worth a ton more than a thousand
ideas that never get implemented. It's all about implementation. It's all
that matters. You know when Jay talked about building the 59th fastest
growing company in America, we focused on a few things to constantly
looking to implement them. We are in era right now where everybody
feels that they have new, they have to have better. How many of you
have learned tons of ideas in the last ten years and you still don’t
implement them? 98% of clients that come and work with us come to us
not because we got great ideas. It’s all about saying, "You know what, I
have tried, I cannot implement, I cannot pull it off". Usually what I find
when I get them on the call with me, they are working on 16 different
things. Originally my first session would spend 90 minutes we are going to
do here. Today we will talk about 'Hierarchy of opportunity' to help you
sort out everything you have learned here. Paul and John did a great job
with that so I am going to skip over that. Next Slide.

Survey says, companies are leaving stacks of money on the table by

learning but not implementing simple easy things. When Jay and I did a
coaching program together called four star coaching. We surveyed all of
the participants. These were the numbers that came back. Point of
purchase optimization - upsell cross-sell - basic concept - MacDonald’s
right? 91% of the business didn't use it. They knew about it, thought it
was a great idea. Referrals, 89% even though Jay showed them 93 ways.
Strategic alliances - 95% and it's probably a 100% if it didn't say how
many did it systematically. How many were consistently reselling
customers, following up, re-contacting the customers, these are basic
fundamentals. 88% were not doing them. Best practices - systematizing
what they do well. Optimizing what you do what you do within your
organization - 95%. Formal customer commitment program, like Michael
talked about, building strong bonds that you keep life time customers,
which is crucial if you want to get referrals and want them to buy more
stuff from you - 96%. Next slide.

The bottom line is that, we are not using these things. What I thought I
would do is read this to you and hopefully I won’t mess it too much. I call
it the window to wash your simple ways to riches. It’s important because I
want you to see how you can take fundamentals and layer them on top of
the other. In a moment I am going to show you what I call the power of
incremental improvement and why if you are in this room right now you
are looking for giant breakthroughs - God bless you. I hope you find them.
Many of you will. But many of you if you look only for major breakthroughs
are never going to get anywhere. One of the things when I grew up, my
dad always talked to me about the power of money and the power of
compounding and interest. As I made my fortune building my businesses, I
was too busy building my businesses to even worry about this saving stuff
and dollar that turns into a 50 or a 100 down the road. I look back now I
go, "Wow! 20 years have gone by". Well, five, ten, 15, 20 years of your
business are going to go by as well. And every year you are not optimizing
from the simple basic strategies which you haven't placed much less the
complex ones, you are leaving money on the table. Next slide.

One day my wife arranged to have our windows cleaned, which she does
twice a year. The service charged us $400. After they completed the job
and left, we opened our bedroom window and noticed the sills and the
outside of the window frames were all full of dirt. I asked my wife, "What if
the window cleaning service offered to clean those for you, while they
were up on the ladder for a $100, would you do it?" She said, "Yeah,
absolutely, I would do it". Looks like crap. I then asked, "What if they
offered to clean your screens and gutters for say another $50 or $100
dollars each?" she said, "Probably". I then said to her, this is by the way a
true real life story, "How many times one of those window washing
services has asked you these questions" She said, "Never that I can
remember". Anybody here guilty of not asking basic questions to clients?
If she just had one of these extra services, just one, it would have
increased their revenue, 25%. Does that make sense? You start off with
$400, you just add a $100. Does it make sense to everybody? Next slide
please.

We had seven different window washing companies in three and a half

years. Why? Because, and this is no joke - I still can't believe this is true -
not one has ever contacted us to see if we wanted to have them done
again. Not one. I know you probably have done business with somebody
like this but you probably never been guilty of that with your clients, I am
sure.

Jay Abraham Mastermind Marketing 30

Scott: And this is no joke to (unclear 00:02) so I still can't believe it's true. Not
one has ever contacted us to see if we wanted them done again. Not one. Not
one. Now I know you probably all have done business with somebody like this,
but you probably never have been guilty of that with your clients, I'm sure. So I
continued with the question with my wife “If the owner came in and inspected
the windows after the job was done to ensure your complete satisfaction, would
you use them again?” She said, “Well of course, because it's a hassle to find a
new service.” And by the way, never one time, did they send their workers in
they did it and they left and (unclear 00:35) she was always unhappy. Now that
doubles the window washing cleaning services revenue. They just did another
job, they wouldn't have normally done. So even if only half those clients decided
to have that person back for whatever reason, it's a 50% increase in revenue.
Does that make sense to everybody? According to (unclear 00:53) here. Now
that's a 25% revenue increase by providing more services and another 50%
simply by following up consistently with the customers when they are ready to
have their windows cleaned. Alright, so we're at 75% so far, have you noticed
Dave would be proud. Everybody see the movie ‘Dave’ you know, about the
President? You know, he sits in there and he's going to take control now and he
gets in front of-the board and he's going to cut the budget because, guy says,
you've got to cut the budget 130 million, he's well, now, that's (unclear 01:22)
we're doing pretty good here. So that's what we're doing here.

Next slide. Now I said to my wife, “Well what if the second time they serviced
you, he told you about a special program where they will come out every two
months for 10 minute tune up. You know, you get the kids, they put their fingers
on there, there's spider webs in the key windows.” I said, “What if they were to
do that and whenever they are in the neighborhood,” which I'm going to show
you in a minute, “they charged you $25 for each visit. Would you do it?” She
said “Yes.” Now I understand everybody won't say yes to these questions, but,
as we are going to see in a minute, they don't cost anything, so that's another
$100. So they come up four times between their normal six month cleanings or
said another way, 25% increase in revenue. So as David says, we're doing pretty
good here. Alright, so that's another $100 initial $400 sales so now we're in a
100% cumulative increase in sales, alright.

Next slide. After confirming her total satisfaction, what if he'd say to my wife, “If
you will simply provide me with a testimonial about your satisfaction level then I
can share with my neighbors” and he just gets one, one out of my 48 neighbors,
“What I'll do is do this touch up service to you free for a year.” He's going to be
in the neighborhood anyway, didn't cost him much money. Now, so if just one of
the 48 neighbors becomes a client, that doubles their business again. Does that
make sense? Were you following the math? That's a 200% increase and I wrote
here, since this new customer will also be a continuous customer and choose
some of the other additional services as well, they're also going to have that
same magnitude. And this is 3 simple techniques. So if any of you are, anybody
in this room guilty of not doing those three in a consistent systematic basis? We
find more money for our clients by showing them how to do what they either
have done, they know works, have worked for them in the past, but they haven't
systematized and you remember that word, and even my clients that work with
me systematize, systematize, systematize. If you do it nine out of ten times,
you're leaving out 10% of the works. Does that make sense? Next slide. Now
let me ask you a question. How difficult were any of these steps? How difficult?

Audience: Not at all.

Scott: Okay, piece of cake. How much did they cost to implement?
Audience: Nothing

Scott: Not a dime! Not a dime! Not a dime. Absolutely zero, now I understand
there's a very simplistic example, but it's real interesting when you start with a
core basic, how it applies to every different business. I work with 126 different
industries. This same concept applies to the swimming pool manufacturer, that
applies to the consultant, that applies to the doctor, that applies to the lawyer,
they're all the same concepts. One of the great things about what Jay teaches is
its universal. It may take a little, what was the (unclear 04:15) talking, you know
wrestle some of the stuff to the ground to see how it applies to you, but it applies
to every business. You know Jay talked about you know, how much work it took
to perfect. When I started doing this, I created this program called the power of
one, about three or four years ago and then I got wrapped up building this other
company and when I came back and told Jay, I said, “What I think I'll do is I'll do
a coaching program because I want to really learn what the elements and the
issues are. For the last 18 months, I've dedicated about half my time to working
one on one with clients to find out what works and what doesn't work and that's
why I can stand up here and say this stuff is universal. It's universal to every
business. Everything won't apply the same way. Maybe one person will try one
of the concepts and it's a smaller impact, but the bottom line is to impact never
the less.

Alright, next slide please. Okay, the power of incremental improvement. This is
probably one of the most powerful things that we teach and it is critical for you
to understand, absolutely critical and I'm going to actually put you, I'm going to
give you a workshop, because I want you to feel this. I want you to, what's
the...you've got to feel it, see it and I want you to hear it. Alright, next slide.
Alright, let’s take a business that has a million dollar revenue baseline and
they're making $100,000 profit. Okay. Now, what we want to look for is what is
cash flow impact will be for one year and then also over five years. How many in
the room plan on being in business one year and going out of business?

Audience: Go out of business?

Scott: Yeah, but that's how you look at it. How many...one year, just want to do
it for one year? How many of you plan on being in business for five years, or
more, five or more? How many would plan one day to have an exit strategy
when you want to sell your business? Okay, it's all around. There's something
called EBITDA. An EBITDA is earnings before depreciation interests the taxes and
amortization and that's how most businesses are purchased. What is your profit,
what's your EBITDA. So when you're thinking about your annual profit, don't just
think about what you're taking home, because you're leaving a lot on the table.

Next. Let's just say you make a 2% increase. In other words would you take up
sell cross sell and you implement it. You take what you just learned from Dawn
about sales and you get 2% increase. Not a big increase, anybody think they
can't get 2% increase if they work really hard on what Dawn just taught you?
Alright. So 2% increase, what's that produce, well if you did that every month, a
concept once a month, just once a month, something once a month to go back
and improve things just to make a 2% impact on that profit. Now I don't ever
deal, I don't care about revenue. I only care about profit. 2% increase is
$24,000 a year, its $120,000 over five years. Does that make sense? 3%, is that
my next one? You can actually push the button twice here. Just go the right
direction, other way. 3% is $180,000 and 5% is $300,000. Over time, you are
making $60,000 a year, if you do it systematically, you put in the systems I'm
going to tell you about, it's year after year after year. Products might change,
customers might change, concepts, system doesn't change. Alright, now, but
what happens on the other side? You now want to sell your business on top of
that $300,000 you decided to sell your business at five times the multiple of your
profits. So 2% adds $120, 5% adds $300,000. So if you can find a way to
increase your business, don't think about it monthly. Think about implementing
the strategies. 12 strategies you think that are most applicable to you and all
you're looking for is those strategies ever, not right now, ever to produce 5%
increase in your profits, then bottom line impact is $600,000.

Alright. What I want you to do right now is just, this is going to be real quick two
minute exercise. I'll leave this up. I want everybody to use your own numbers. I
just gave you a million dollar numbers, some of you are 20 million, some of you
are start-ups. What I want you to do is just fill out this worksheet and I don't
know, (unclear 00:56) it might be in the workbook, but what's your current profit
per month? Whatever it is, 2,000; 5,000; 50,000; a million, just write it down.
Calculate a 2% not 5, let's just go 2% per month, so it's 2%. So remember if it's
100,000 that was an additional $2000. And then I want you to actually annualize
it, just multiply it by 12, let's see what this little increase does to your business,
its 24% impact. How many of you would love to have a 24% bottom line impact
just from doing what you're doing better. Forget all the other stuff you can
implement. Alright, nobody? One? You guys probably think that I should have
said 50 or 100 right? See Jay Jay got you guys all pumped up, alright. Then
calculate the impact, multiply that by five. Now if you don't get this in your gut,
you're going to go back and you're not going to do it. Just like I didn't get it in
my gut that I should be putting aside 10% or 15% of my income every year so
that I would continue to build that wealth over the years, instead I've got to look
back and go wow! That's pretty painful, because there's another way to look at
this. The $600,000 that you're going to make is what you've lost because you
haven't done it the last year. It's what you've lost because you haven't applied
what you've learnt. Alright, let's kind of keep things light here.

Alright. Then I want you to do is take and calculate the increased market cap.
So take whatever your annual number was, 100,000 in the other example,
multiply it by five and add those two together. (I should have had that little, got
a little, you know ding ding ding ding, we play in our conference calls). Alright, I
just want everybody, people to yell out. Yell out your number. Two, anybody
have a number out there? Still doing your math there? Everybody is scared,
“Oh, there's a person next to me!” I won't make you do it because somebody,
there's somebody sitting next to you but I want you to really internalize it
because it's important, because the key question is what's the extra profit you're
leaving on the table.
 Next slide. Alright, let's talk about how you make 25 to a million dollars or more
by actually applying this stuff. Okay, same customers, same employees, same
resources.

Next. Oh, I wanted to pause on with what I'm going through right now, where I
got a lot of my notoriety was, there was a radio show in Pittsburgh that
interviewed me and they challenged me on their radio. They said “So how much
money can you make a business?” I can make any business, $25,000 in 40
minutes. And he said “Well, that's a pretty bold claim.” And I said “Well, it's
true.” As long as there is business of three, four hundred thousand dollars or
more, it's easy to do. So he challenged me. So we took, I think 12, there's 12 or
15 that set appointments. I talked to 12 or 15 and then he went back and picked
them and re-interviewed them. The five companies, it's on tape and it's on our
website, the 5 companies, the number was $5.8 million. $5.8 million.

Alright, yesterday I talked about the opportunity to impact profits. Since I went
through it when I was up in the panel here, there are 3 areas. So don't just look
and say “Why (unclear 04:36) already do that? We already have enough self-
program. We already do that, (unclear 04:40) referral system.” I want you to
think about how you can implement and new system within your business, if you
don't already have, you don't have a formalized system, or add another product
or service to a successful system. So if you're up selling at the point of purchase,
have you gone back and seen if you can add something else, if you've got a
referral system, can you add another one? So think about, if there's something
you're doing that's successful, if can add another one and the last one is
improving the system and this is by evaluating your success formula and I'll talk
about this in the end, but if you've got your formula down pack, even in the sales
that you've got, okay, here's how we drive in leads and here's how the sales
process works, let we telemarket; then we go to proposal, appointment or
proposal. One of those elements, if you can just improve it, just a slight bit can
double or triple the results. So you want to go back, if once you have a
document, you can actually go back and play with it. So I don't care whether you
have a system in place, don't have one in place, have one partially in place, it
applies to you.

Alright, next slide. Alright, what we're going to focus on here because I'm very
short on time is maximizing the transactional value of every customer and we
teach like 28 ways, but we're just going to cover as much as time allows here.

Next slide. McDonald's, everybody knows the story. Simple story, right? “Would
you like fries or a coke with that?” 30% of the population says ‘yes’ even though
what, they didn't order it! They didn't order it, they didn't go buy it. They
already decided that wasn't what they wanted but they ordered it anyway. This
concept is so simple it gets overlooked but it is applicable to virtually every
business. Up selling is when you're adding an additional item, you're taking them
from a small coke to a large coke, cross sell to get everybody on the same
ground that I am is when they ask if you want fries, when you ordered a burger,
because it's related, but it's not the same item and a down sell is what Jay just
did to everybody who couldn't come to this live event. Alright, everybody
couldn't come to live event could buy the $2000 or $2500 home study. If he
didn't offer that, those 500 sets or 600 or how many (unclear 06:45) up to would
have never happened. So $2000, $500, sounds like a million dollars to me, if
they didn't apply that concept.

So if you're selling something that's expensive and then you don't close the
person, but you can break it apart or make it a smaller transaction, you have a
huge opportunity, you've already invested in getting the customer there, driving
the lead and etc.

Alright, next slide. Alright, case study number one, $15 million online rug dealer.
New profit system added 1.8 million a year and if we do our power of incremental
improvement, it's going to use (unclear 00:14), its $18 million market cap. By
the way, for this particular company, it's probably two or three time that because
they're growing like a rocket, very sassy and they're going to have a much larger
evaluation. What they did is added two items at the point of purchase, that's it.
They sell rugs on the internet. Somebody comes, buys a rug, and they said, well
let's add padding and the other item is scotch guard. I won't go into the details
of the story because it's actually kind of funny story...

Audience: What's the other item?

Scott: The other item was scotch guard. They went scotch guarding and at PEQ,
we went through, they were right there, I asked everybody in the group if they
bought a $2000 rug, how many paid $50 to scotch guard it? So basically you've
got two items on. It sounds simple again and they're very successful company.
They go from 7 to about $20 million this year. Very successful, they figured it
out, they've got a killer model, but they were leaving a lot of money on the table.
Alright, okay, go ahead, next slide. And what I want to do is skip a lot of quick
stories here because I want you all to relate, so I use lots of different examples
whenever I teach. $3 million telemarketing office supply come in and they
compete with office depot etc. They do it all from telemarketing, new profit
stream, is 18% increase in profits. Now this is important because they
systematized a successful system. What do I mean by that? This guy was
awesome at what he does. They were awesome, they were a selling machine.
They were competing against the big boys, they're growing like crazy and as a
matter of fact his company was just featured a few sessions ago in Inc.
Magazine. Doing a great job, doing a great job at up selling, but I made him go
back and take it and dissect it and say, what can we do differently? How can we
modify a script, how can we modify the timing, how can we modify the offer?
18% increase in his bottom line profits, and it's a true story, while I was on the
phone with him, the month I'd started him, on the phone with him and I hear this
guy coming in the background yelling screaming, and I go “What's that?” And he
goes, “It's one of my sales people. He says he's made $300 extra today.”

So it's powerful, but you have to systematize it. If he didn't systematize it, he
wouldn't ever be able to go back and optimize it. Next slide, $750,000
chiropractor, net profit stream $275,000. How did I get there? Alright, I want to
go back to how I got there. We implemented a system where he had never done
any cross sell, never offered his patients anything, even though he'd always done
it. Why? He was uncomfortable. He was fearful. He didn't know how to do it.
All he had to do was make him comfortable on how to do that. I mean he started
with two items and one was orthopedic pillow and back pillow and the other one
was something called Bio-freeze and we implemented the new system and there
were two items about $575 to $600 a week. Week in, week out, 550, 650. Over
a year, its $27,000; over 10 practice its $275,000.

Now admittedly in year two, year three or year four Bio-freeze might not be the
cool thing. So what, now it's something else. The bottom line is they trust in
him. They trust in him, okay and the important thing here from a
systematization stand point, I might talk about this later, but I'm going to talk
about it right now is this is critical for you all to understand, is if I went to him
and said, implement the sub sell cross sell system, that's it. Here it is. I want
you to ask at the point of service of the patient, and I want you to put the Bio-
freeze up on the counter when come up, I want your staff to say the following
four, five words. If I went back a month or two later, would he have been, I want
to give show hands of how many people think he'd still be producing 575 a
week? See I bet you, I could go to every one of you, if I sat down individually,
and I can find something that worked like this before and you just don't do it
anymore because you have no measurement system in place. No monitoring
system in place, no systematization in place whatsoever and you’re absolutely
pouring money down the drain. Okay, now in this particular chiropractor's case,
we had to create a system and it was pretty funny story because I get on it after
six weeks, he's been kind of hands on, he says “I can't do this, I see a hundred
patients a day” and I said “We're going to formalize your system” and he goes,
“Okay.” The problem is the charts are in the back and they have to come up
here and don't know how to document them, I go “You have any yellow stickies?”
This is a true story. I had him started with yellow stickies. After two weeks, we
went to a form, after three weeks, we went to comprehensive form at the front
desk and after about six weeks, we computerized it. Otherwise, he never would
have done it and that's very important for all of you. It's the little things that get
in the way of you implementing and producing results.

Next slide please, next one increasing frequency of primary purchase items by
conditioning your customers to purchase more often. Next slide, case number
one a dentist, net profit stream $90,000 a year, $900,000 using the application I
gave you and it was reducing the average patient's visits from 8 months to 7
months. Right, in other words, what he did (unclear 05:12) parenthesis, he
improved. He was already doing it. Dentists are the only people I ever come
across who follow up consistently on their patients. Why? Is it because of their
brilliant marketing strategy? It’s called survival strategy. Right, who wants to go
to the dentist? In this case the dentist says, “Well I'm doing pretty good, we
send out a letter and then (unclear 05:34) calls. I said, “What do you do after
that?” “Oh, nothing” So when we went back and determined how many of their
patients' didn't actually come in, it was, I forget, 10 or 12 or 13 or 14 % and I
said, we talked about lifetime value of a dental patient which is massive with
their families, if they're like mine. And what we did was, we went back and said,
okay, what if you went back and created a continual follow up system? Let's say,
add some pain, let's educate them about gingivitis. Let's educate them about
the fact that once it gets between 6 and 12 months, the probability that's going
to A: impact your health, and B: impact your long-term dental goes up you know
5 fold, I don't remember the statistics were. Does that make sense? Simple
stuff.

Alright, next slide. Okay, now, I always get this, up sell doesn't apply, I'm a
swimming pool. I only sell single items you know, and they're big items, okay.
So we got a swimming pool company, one of my favorite ones, because
somebody goes, well how often does somebody need a swimming pool? $10
million Swimming Pool Company and they asked me, they were not my client.
This is actually a pool company in our neighborhood. It's the greatest concept.
Net profit stream $600,000 or $6 million in value, 40 pools at $30,000 that's
$15,000 profit. Let me tell you what they did. They-open pools and closed pools,
you guys don't know what that means, they got to open them up, they got to
close them up, right? And people can go anywhere; once they install my pool I
can go anywhere. I may start out with who put in my pool but a year or two
later, I may get pissed off and leave.

So what they did is they said-well the standard warranty in a pool is 10 or15 or
20 years, I think it is, and they said, “We're going to make our warranty 30 years.
30 year warranty. There's only one (unclear 07:19) we got. You have to use it as
to open and close your pool.” Okay its $1500 a year times 30 years is $45,000.
So there's always ways to condition customers to purchase more often. You just
have to get creative.

Next slide, a mortgage broker. Mortgage broker came to me and said, it was
$275,000 broker, $75,000 profit a year is what this meant, his business.
$750,000 in value creation, 500 clients there was and basically let me tell you
the story here real quick is that they were not diligently actually not following up
at all with past clients. Well I did a refinance and you know, I'm onto the next
one, constantly scrambling for business. But the bottom line is people refinance
every 5 years so there's a hundred predictable not maybe not you know,
statistically out of 500 there's a 100 people that are going to refinance their
home and if we added in people that are going to move and purchase a home, it
goes up even higher.

So if you implement a strategic systematic process, follow-up system for building

value and building relationships, your probability that they're going to come back
to you is huge. I just went to go get a loan, I wouldn't have a clue who to call for
the person that did mine before. How many people who ever finance-how many
people you know, have a constant, they get a value added mailing and they get
tips about their home and they get calls once in a while and stay in touch with
them with whoever did their mortgage? 20% of the room, maybe.

Alright, next slide. Alright, what I want you to do as I'm going through this
process, it is important for you to write with your pen because we're going to get
into an exercise in a few minutes. Think about how up sell, cross sell applies to
you in one of the three categories. Either you're going to implement a new
system, you're going to improve a system, or you're going to add an element to
what you're already doing. I want you to think about that. I want you to write it
down. You better-need to be making a list or you're going to feel lost. And I also
want you to think about how you can increase frequency, if you've got a product
and you're not staying in constant contact with your customers, you haven't
mailed to them lately, you need to think about that. Give you another example,
as a chiropractor, alright. Chiropractor, the person comes in, they stay for 3, 4,
5, 6, 7 ,8 weeks, now they're feeling better. So I asked my chiropractor, I said
“Do you do follow up mailing?” He said, “Well no, we do Christmas stuff and
what not.” And I said, “What is the probability that somebody who came in with
lower back pain, that stayed, was feeling better, what's the probability in 3 to 6
months they're going to have pain again?” He said, “100%” I said, “You have
any ideas?” How about a letter that goes out after 3 months that says, “Jee
frequently our patients end up having the symptoms, you know, we really care
about you” and invite them back into the office? Or do you think people stopped
going to the chiropractor because the calendar year, you know, they've run out
of insurance, but the new calendar year, the insurance starts all over.

Alright, the next concept is related to up sell, cross sell. Up sell, cross sell is at
the point of purchase, at the point of purchase, they're in a peak purchase state.
That's why you'll go to the car dealership and they sell you all the gadgets and
it's in the extras. They try to do that a month or two down the road, you say
“Forget it; I'm not going to spend another $1,000.” You are in a peak purchase
state, alright and you know when I went to a Tony Robbins, I went to the Tony
Robbins seminar, free seminar and he did his hype and everybody at the
crescendo, he made it sound like there's only so; I mean there must have 400
people in the back of the room. Expanding purchase patterns is similar except,
what is this mean, its okay, well, now I've done my primary purchase, I'm moving
on. Now I want to be constantly going back to my customers and offering them
not only the primary item that they purchased, but something else that I offer. If
you only offer one product that doesn't apply, but if you offer multiple products,
what typically happens is I'll talk to the client and I'll say, you know what, I ask
them, we told; we gave all the laundry list. We told them all the financial
services we do. We do mutual funds and we do insurance and we can refinance
their home. Like my broker, (unclear 02:52) who never asked me once, so I
refinanced my home with somebody else. I bought insurance from somebody
else, never stayed in contact.

Okay, again, ideas, write them down. Next slide, alright $2.6 million dry cleaner,
I don't remember 2 million, I couldn't remember the exact number but you get
the gist. New profit stream $210,000 a year, $2.8 million. This is one of the
radio people that called in and called in and said there's; I was called to let you
know right, now there's no way in think you can help me. I'm in the dry cleaning
association of America. I'm a head (unclear 03:26) and I know it all. I said,
alright, that's good. So I said, “Tell me about what you do?” He goes on, he's
explaining to me very passionately about his referral system. We're on referrals,
he says, “I've got the greatest referral system, because I do these high end
drapes in high end neighborhood,” He's got about 1000 clients. We take their
drapes; I go back and hang them up. It is a $1,000, $1,500 and he tells me
about the referral system. That's pretty cool. I said, “Let me ask you a question?
How many of them are dry cleaning customers?” Now this guy has got multiple
(unclear 03:51) pick up and delivers. He goes, “You know I was looking at it the
other day, 5%.” I said, “Well let me tell you what I think you've got to do. I think
you've got to ask them.” I said “If one out of ten say yes, it would put $500,000
in your pocket using my power of incremental improvement.” Okay, so lucky,
every once when you actually interview somebody, something like this happens,
they get on the interview and they are telling their story and I've gotten a call
from him a couple of days before and as we were on the interview and I said,
“Tell them about the story” and the interviewer said, “You know, $500,000” and I
said, “No no, stop stop, you've got to wait. I said it's cooler than that, because
he had already started the process.” So I said, “Let me ask you a question. Tell
him what you just told me. How many out of ten are saying yes?” “6!” That's
$3 million a year, its $3 million dollars a year.

I give you a lot of examples because what I find is I can tell the story or Jay can
come up here or any other speakers and tell you a story “Ah, that doesn't relate
to me!”. I'm here to tell you this relates to every single one of you in this room.
I said 126 different industries, multiple countries in the world and you know, it
doesn't work equally for everybody. When I first started doing my coaching I
made a fatal error. I got a program called Power One. It was designed to do
once a month concept for 12 months. So I took the whole group and said, we're
going to go through this module, we're going to go through this module, or
what's the problem, this one's going to....didn't really apply and the other one's
going, this is really cool. But they've got to wait four months before they get to
the one that applies to them but once you teach them, it's the small little
changes that take place; the 2% it gets pretty exciting, doesn't it?

Alright, next slide. Oh by the way would you love to see the technique (unclear
05:42). Alright, $400,000...that one's a complicated one, (unclear 05:49) work
on a script. Next slide please. Case study number two, $400,000 payroll
company, new profit stream is about $40,000 of profit per year and it's in cost
savings. They offer about 3 or 4 services and one of them is remote entry. He
says “It saves us tons of money, I can cut a couple of people out” and I said,
“Well when's the last time you told your clients about this?” He says “Well we
(unclear 06:16) I tell them all about it.” I said, “No no, when's the last time you
told them about it?” One mailing, one mailing. One mailing produces $40,000
profits savings per year, alright. The technique was again, we just sent out a
letter and they did a follow up call, I forgot about that. Sent a letter, and then I
got another email from him saying this is really exciting because we did a follow
up call and I don't remember what it went up to, but the total was 33%.

Next slide, alright the ultimate leverage referrals, rather sit up here and give you
93 different ways, I don't have time to do it anyway, I want to share with you a
couple key principles about referrals and I hope I remember at the end of this I
was sitting next to somebody at one of the tables and I was overhearing them
tell about what they're going to do when they go back. They were talking about,
“I'm going to do referrals.” And they started telling me about what they were
going to do with it and I just listened, I thought it was never going to work. It's
never going to work. What they were trying to do, they're not thinking through
the process of what it's going to take to work. So I thought them turn your
satisfied customers in your sales team with active referral systems. Active
referral systems mean, don't just say, I asked for referral but get your clients
involved in being your promoters. And again, I can do a whole workshop on that.

Next slide, I want to make a couple of distinctions here. Case study number
one, $4 million plastic surgeon. New profit stream, notice that says loss, because
I want to drive up my point $2.2 million. So this plastic surgeon is on the phone
with me and the plastic surgeon says “Look” he says, “We have a real good
referral system.” I said “Well let me ask you a question, how many times out of
ten.” By the way, key question, stop everybody write it down. I'm serious, write
this question down, I'll make you more money quicker than you could imagine.
How many people out of 10, how many people out of 10 say yes? How many out
of 10 give us a referral? How often out of 10 times does my sales staff ask the
question? Because if you have something that's successful and it's 7 out of 10 or
8 out of 10, I can guarantee if I came into every one of your...not everyone, the
vast majority of your offices or operations I would find is not being done
systematically, and that's a shame. So what happened here was he gets on and
tells me this whole story and he happened to have a very challenging job
because his clientele were strippers. So he did brush jobs and so he's telling me
about the process and he tells me you know what happens, they come back in
and when they finally come back get in there, they're really perky and happy...no
pun intended. When they're really perky and happy, well that's the time that we
ask them. So I said, “How many times out of 10 do you do that?” He goes “We
do it all the time!” I said, “Well you do, who ask?” He says, “My office
manager.” I said, “Is she there?” he says, “Yes, I'll get her on the phone.” He
gets her on the phone and she goes “I think I do a pretty good jobs” I said “How
many out of 10?” She says “7”. I say “You've got a calculator. I made him get a
calculator, piece of paper and pencil, by the time we were done, I showed him
since you started in practice, he had lost down the drain, never to be recovered
$2.2 million because he wasn't systematic.

How many people does this apply to? How many of you out there do something
pretty well but you don't do it systematically? It's huge. So, next slide please.
Case study number two $3.3 million publishing company, $100,000 per year, a
million dollars of impact and this is a company, I use this because, this is a
company that improved the success system. They've got one of the best referral
conversion rates I've ever seen in my life. It's fabulous and what they do is they
mail out their product to the doctor, the doctor takes a look at it and on the back
page, they offer free printing for the month if they get referrals. It's beautiful.
Four color beautiful thing works like crazy, gets a ton of referrals. So I said you
know what’s interesting, I said, “Let me ask you a question, who orders these?”
“Well the doctors and the dentists, they order, they (unclear 02:49) guys” “Well
do they order?” Well my office (unclear 02:50) they all look at it. I say, “You sure
they all look at it?” He says, “Yeah I'm sure they all look at it.” And I said, “Well
do you think because you do it monthly they probably just look at it and say
okay, yes I want to mail that, because they get a choice to who they are going to
mail each month?” And he goes, “Yeah, probably.” I said, “It just occurs to me, I
don't know, it could be funny, but you know you've got a killer referral system
because they see the back page” and he says “Yeah, they see the back page and
that's compelling to them.” I said, “Well, how many of you think don't see the
back page?” He goes “I don't know.”

So we think it's 50%, we were going to do Christmas mailing, we couldn't do it

because he couldn't do this and the solution was is by putting a star burst in
front of this beautiful thing that says, look on the backside for free printing for
the month. How many of you think that would work to some degree? I don't
know if it would be 50% or 30% or 20% but it cost him about $25 to do. That's
called improving. So if just said to him we, (unclear 03:38) got a referral, he said
“Yeah I got one, it's a killer,” we stopped there, we miss out on it. You have to
break down your process. You have to break down your process.

Next slide please. Develop lifetime customer relationship management

systems, I call this, when I teach, I call this the boring way to riches. It really is.
It's the most boring one. I was embarrassed to put it into my program because I
thought, you know, nobody wants to hear that. They want to hear about how to
make money and then I realized that's the number one money maker there is. If
your customers aren't happy then everything else falls apart. You can only fool
the masses for so long and right now when you've got the big boys like Wal-Mart
deciding they wanted to get into businesses like eye care that used to be-
optometrist, you got Sears and Home Depot getting into expo and whatever the
other place is called, so that now, these independent granite places and tile
places and carpet places and kitchen bath places, customer service becomes
more critical than ever. There are ton elements of time that you should be using
to impact your customers from the time you meet them, all the way through the
life of the customer and I don't have time to go through it but, I want to give
some illustrations here. By the way , the statistic 25 to 85%, there was a study
done, I don't remember the industries, there were 4,5 different industries and
they were weird ones like oil and gas and but what it showed was a 5% attrition
rate can impact your profits 5% to 85%. So the bigger your margin is, when you
lose those customers and the closer you are to break even, the bigger the
number becomes. Attrition will kill you. Absolutely, you can’t' afford it right now.
It's six times more difficult to get a new customer and you need to keep your
existing customers.

Alright, next slide. HCC was the business I built that was Inc. Magazine 59th fast
growing company in America. Just want to give you a real quick rundown. We've
re-maintained 96% of our 500 hospital clients nationwide over 8 years. 96%.
Alright we had a little pin that said quality means no compromise. We had
system set up. I had, I personally called as the CEO of the company about 200 of
the clients every 60 days myself and I hired a full time vice president to make
the rest of the calls. If somebody was rated a one that meant everything was
(unclear 05:50) two it meant, the slightest little even tonality, if the tonality
wasn't right, they were two, if there were any problems, it was three, came right
to my desk and I made a phone call. 96% retention rate. I sold the company
and a year later they were losing 55 a year and they had to build old sales force,
etc. So you have to guard your customers. Every 60 days I touched my
customer, by the way, most of the time, I didn't even talk about business, I built
relationships, like check talks about and once you build those relationships, I get
them to call me up years later and say, you know what, you guys have dropped
the ball, you stink, you need to get it taken care of and that was the call. That
was a called action.

Next slide, $38 million electrical supply company. New profit stream and I wrote
potential here because this is a very frustrating situation. They're a family
owned business. In that industry, the electrical supplies is-folks I've talked to in
New York, in that large industrial segment, if there's not a recession, maybe they
need to call it a depression. It's really a big impact issue. And what used to work
right. What happened, what's happened here? During the .com era, you didn't
have to sell. You just had to have a shingle and no disrespect to many of them,
even if they worked real hard but the bottom line is there is a lot of businesses
that did really well because of that. I raised $77 million on a business plan and
built a company that was 20 days from having a $1.4 billion market cap with only
$85 million in sales at that point. In an industry, that's typically (unclear 07:23),
probably valued at one time sales, we were valued at 12.8 go forward sales. It
was ludicrous and along with that was all of everybody who was supplying all
those services and all of a sudden when I hear over and over and over again is
hey, the rules have changed. We have to work. We've got to market. We have
to go sell, we never had to do that before. So in this particular case, $3.8 million
potential here if they just get 3% what happens? They got in that industry, all of
the big contractors divide their work among 3, 4, 5 guys, that's how it works, but
when we look at the ones at the top level that they're getting 40 and 50 percent
of what they were doing, they had relationships, they invested time, all the other
ones they didn't. So what we need to do is take that down to the next tier. Let's
take that success model down to the next tier. If they can just increase at 3%,
this shift, the 10% shift, so they go from 33% on average of the load to 33%, its
$3.8 million to them. It's a big number and the technique was modeling the
accounts. Alright, how am I doing on time?

Male Speaker: You have 23 minutes.

Scott: Okay, good, good. What I want you to do, you should have all been
writing. You should have been writing down ideas, if you're not writing down
ideas then you're not...oh forget it. So what I want you to do is, this is a sheet.
Now normally what I do in this situation if I have more time is we do the first
concept, I have you all go break out, work at the tables, you know share ideas,
bounce ideas off and then learn off each other, but we don't have time to do that
because of the timing. So what I want to do is I want to have you pick the top
applications and calculate how much profit you can earn if you implement. Now
you can either choose one of the concepts here or you could choose any concept
you've learned this weekend. Don't care what it is, but I want you to write down
one or two or three top applications, but I want you to calculate using this here, I
want you to calculate what the profitability impact can be.

So the top one because, I don’t' have one phone that fits all the number of
transactions, it might be an increasing your revenue, it might be a number of
new customers, what we want to get to is what your increase potential is in your
profit. If you think it's going to be a 5% increase or 10% increase or 20%
increase, just write that down, because, ultimately what we want to get to is we
want to get to what your increased revenue is by line number B. So whatever
you think the impact is going to be, and by the way you don't know one of the
things that I teach and what John and Paul did a great job of, you had a little
matrix. You had to go through the matrix and determine what your criteria is, to
decide what it's going to be, but right now just do it at the back of a napkin. If
you think you know what, I haven't done and up sell cross sell, so if I did 20% of
the customers would purchase it and you know for $50, write it down. You can
ask for more referrals I think I’d probably get about you know it would increase
my revenue 10% more, I'd probably get 50 clients and that would produce
another $50,000 for me, yes.

Audience: Can I ask you a question?

Scott: Yes.

Audience: I just wanted to ask you were talking about systematizing and office
work. You know, you may want, in my case in a gynecology practice, you have
the patient go to the front, I don’t' always ask a patient, you know if they've been
satisfied to refer a patient, but if you want your staff to ask it each time, do you
think it would systematize it 100%. You think a form or some type of, because
they get so busy on the front desk that often they forget or they...

Scott: Yeah, I'll make two comments. Number one, unless you have a
documented procedure that you can measure, it'll never be done consistently,
that's number one. But number two, I just want to make a quick (unclear 01:04)
out here it's not necessary you're going to ask every patient because it may not
be appropriate. It's asking at every appropriate time, does that make sense?

Audience: Yes.

Scott: Okay.

Audience: But would you use a form or some type mechanism to make sure that
it's complied with?

Scott: I would definitely use something that I can track otherwise you’re not
going to ask. Yes.

Audience: Okay.
Scott: Any other questions on how to fill this out? Again, this is the back of a
napkin, that's all it isn't scientific numbers or actual numbers. What I want to do,
I think I have a few minutes, anybody that has big break through either that
they've had before, they are applying here, or any of the concepts, let's go to the
mike and I want to hear from some people. Dave, you've got the mike here?

Audience: Yeah, as I've said before, I'm a financial adviser and I’ve just had a
major breakthrough here. I've a website and I I’ve had a lot of trouble getting
people to believe in what I do and what I think I'm going to now do is create a
separate section on my website and have all different businesses and people and
professions with whom I come into contact, listed on that website and I would
then meet with these people and discuss these strategies and as a back end I
would show them what I do.

Scott: So what do you think the impact would be?

Audience: Well on them, I would create tremendous additional wealth for all
these people and then the back end, I would reap the benefits.

Scott: So what do you think that would mean though, financially?

Audience: Well we're talking big numbers here.

Scott: Give me an idea.

Audience: Well the sky is the limit, it could run into billions.

Scott: Okay, well the interesting thing is what does it cost you?

Audience: It's just time, just a few...

Scott: Just time. So the important, thank you. The important distinction there is
that we don't really know. But if you have something that's significant, that is
massive and doesn't cost you anything, then as Jay would say, “Shame on you
for not doing it!” Alright.

Tamara: Hi Scott, Tamara Campbell.

Scott: Hey Tamara, how are you?

Tamara: I'm good, thank you. We had the great fortune and honor to work with
you as a personal coach and one of the things that I gleamed from you in the
very first discussion we had was “Why aren't you asking somebody if they want
something else?” A simple up sell and it made sense to me so I went to my
office the next day and I said to the first person who was at the first desk, I said,
“Today, I want you to sell facial cream to every single person who buys E3 Live.”
But I didn't do it with anybody else, just one person. At the end of the day, she
sold 10 jars of cream. When I tracked that, it brought in 4 more customers for us
or clients excuse me, in the next two weeks, of other products. So I took that
same principle, came back and talked to you and you said, imagine if you do this
systematically, so I said, well that's an idea. I went back, I taught it to all of our
tele-operators to do it and we increased the business to the extent that I would
say, it brought in very easily four us another $10,000 over the course of a couple
of months, just increasing one thing and we did it with samples, not even the
actual product, but we gave them samples of the product and they came back
and purchased. So the power of just asking, just thinking and if I do it
systematically there's no doubt that it'll bring it back to us 100 fold very quickly.

Scott: Great, thank you

Tamara: So I got that from you, from here.

Jeff: Hi Scott, Jeff Wilson of wealth management company and I was on a

conference call with you and Jay and we did a quick hot seat and talked about
being (unclear 00:00) you gave me a gift and the gift was to go to my existing
clients and talk to them about, if they were in the market for refinancing. I
fiercely negotiated an incredible arrangement with a mortgage broker giving
them better rates than they can get anywhere and lower fees and spoke to 8
clients, 8 of them went ahead with it, made 8 grand in couple of hours time.
Rolled out, just last week, rolled out, on a small test bases an email campaign
and already have four people who are qualified who are interested, so...

Scott: So what does that mean? So for a couple of weeks you made 8, 9, 10...

Jeff: So, what that is, what that means is with limited execution, 12 grand, and
with just a little bit more effort next year, I could easily be 50 or 100 grand.

Scott: 50 or 100 that year, because it's a duplicable thing you can do every
single year, right?

Jeff: Yes.

Scott: Every single year.

Jeff: Yes.

Scott: Okay, great, thank you.

Jeff: Thank you.

Lou: Hi Scott, my name is Lou Altman, president of Global Phones, we help

international travelers who are frustrated with cell phones that don't work around
the world...

Audience: YAY!

Lou: Yay, alright, I have a fan! Well I'm the guy whose now has become known
as the moron who grew his business 40% without doing anything. It's not that
great because, and I've never been a math guy. My CFO is over here and
hopefully he doesn’t have anything sharp because it's going to come flying at
me. We have equipment, our cell phones, built into some of the cell phones we
have as an infrared port or cable. You can plug it into your laptop and there were
some guys watching me before. You can check your email using a cell phone
when you're driving down the road, in the back of a taxi, on a train, I've been
doing it sitting here and I mentioned, I don't know, I said, I have an idea, let's ask
everybody it they wanted data with their phones and you know how many times
we did that, once, and I don't know if it worked or not because we never tracked
it. And not being a math guy, I'm good at creating things and coming up with
ideas but I suck at actually running the business. So doing this exercise real
quick, if we had a 20% increase or 20% of the people accepted that cross sell or
incremental sales would be $80,000, our margins at a 120%. $52,000 of profit
from doing nothing more than saying do you want (unclear 02:37) with that?

Scott: Is that per year?

Lou: Yeah, yes.

Scott: So that's 500,000, right?

Lou: Yes.

Scott: $500,000

Lou: Yeah, from doing nothing more than saying, welcome to Global Phone.

Scott: By the way the statistical average is 30%. One of the fun things you do,
whenever you go in and somebody says, would you like, you order donuts and
they said, for this many more...always ask them, how many times out of ten does
somebody say that? It's amazing the answer you'll get. Thank you. That's
awesome.

Lou: Thanks.

Scott: Yes.

Sara: Hi, Sara Whipple. I have a seminar company and for me it's just I'm blown
away by the simplicity that implementation is asking and the system is a
reminder to make sure that I ask every time and just the simplicity of that and
the thousands to hundreds of thousands of dollars that it can potentially make
me is incredible.

Scott: Alright. One of the distinction there is you know, you've got to go back
and try and do some of these things and it won't work perfect, but you can play
with them, it doesn't cost a dime. You can do five different tests, five different up
sell items in the same week. Yes, one over here. Go ahead, you guys are
stacked, it's all...

Debbie: My name is Debbi Premont. I’m a marketing consultant and a

professional speaker and I already offer a tele-class program that I've offered a
few times this past year that went over phenomenally well but I really wanted to
expand and roll out. And so after listening to today's Jay's program about process
marketing..

Scott: Yeah, it’s great.

Debbie: I brain stormed with an internet marketing guru (unclear 04:03), wave
your hand, this woman is brilliant in internet marketing, if anybody want to know,
and she gave me about 8 strategies to use in the process marketing to really roll
this program out, but then I came up with three more and I figured out ways to
up sell, cross sell and down sell. So I just started doing rough numbers and it's
worth hundreds of thousands of dollars, just depending on how you want to go.
But through hose beneficiaries and I mean just all sorts of strategies are really
very easy would actually no cost to myself...

Scott: Hundreds and thousands of dollars per year?

Debbie: Yeah.

Scott: You all still think, (unclear 04:35) you all still think and this is a big mind
set shift that you own a business for a year. Now if you're doing just one
promotion, you're doing just one ad or something in your whole client list, it's not
going to work again, that's very different. What she's talking about is a process.
What I'm trying to teach you is up sale cross sale is a process. It is a process and
so again, the item may change but that'll work year after year after year and you
only get better at it. It's awesome.

Debbie: Right.

Scott: Thank you. Yes.

Tad: My name is Tad Hargrave from Canada. I do workshops for student councils
in high schools and it's about $50 a student, usually the school will enroll maybe
6 students. So that's $300 and that concept of down sell just totally hit me in
between the eyes. I never even considered, like, schools would not enroll and it
would just be like, well, okay, next event and it just struck me, what if I offered
them, you know I'm really sorry you can't make it for whatever reason, we have
this really incredible package we can offer you for $50 or $100, but let's say $50
and even if I don’t know, six schools took that, that's $300, per event and if I do
20 events in a year, that's like $6000 per year that I've just totally left sitting on
the table of schools who probably just because of the dates couldn't make it. So
that down sell just really got me.

Scott: Well then you can go out to other schools with that as well, can't you?

Tad: Sorry?

Scott: Then you'd go out to other schools as well with that.

Tad: How do you mean the other schools?

Scott: Once you, what you said is you go, you have a process where I might
have missed a step, you've got a process where they don't come to the event,
right?

Tad: Right, some of them can't...

Scott: So just repeat that last part then.

Tad: Okay, so some of them can't come so I could offer them, you know, for $50
a sort of a home study or something they can just have in their school, since
they can't make it on that date for $50.

Scott: I just didn't know whether or not you can then bottle it, package it and
sell it to a school that's not a client.

Tad: Yeah.

Scott: And now you have a front end instead of down sell, so you got and actual
front end to potentially market with or sell into and get a new school as well. It's,
I like it.

Scott Joe: Scott Joe Winder, we process checks electronically over the internet
and the concept of down sell is something that I guess I just hadn't really thought
about before but one of the benefits of doing it is the fact that as people are
trying to drive down their costs in worst case scenario, we provide a tremendous
amount of fraud protection and all these other things that we charge higher rates
for. I mean if they get to the point where they just really trying to have a lower
base product, we can down sell and say okay, you just want electronic
processing of payments over the internet, fine. Here's your price, you don't get
the customer service, you don't get this but you save all these things and then
come back and try to up sell later and that's to me, that'll probably be worth over
easily over a million bucks over a couple of years. so...

Scott: I have a client who's in the same thing and they think their sales are
going to go up 6 fold, so you know.

Scott Joe: Yeah it's pretty strong. Thanks.

Scott: And again, it's an easy thing to test right? Modify it, test it, play with
pricing and the profitability on your business from net stand point of view is so
huge, you've got a lot of variance. Yes.

Eileen: Eileen (unclear 07:37) I'm a network marketer and a metabolic weight
control specialist and I was here in August. I did the five day workshop. I
thought it was phenomenal, but what I immediately recognized was that I could
never go back and implement all the things I knew needed to be done because I
had zillions of dollars of profit that were flowing through my fingers and Scott
was at that workshop and I want to acknowledge you Scott because you impress
me as a product of the product. You really did and I knew that Scott could really
assist me in building my multiple income stream that I already had. My husband
and I have made over $6 million and our current network marketing companies
that were doing okay, but happened was Scott designed, one of the thing that
happened in my little coaching sessions that we do, is he designed a call and we
had several hundred people on this call but we recorded it and it was a call
where he walked us through, you did up sell, cross sell, expanding market
patterns, customer client retention, that type of thing, and then Scott's office in
(unclear 08:46) also designed us a special report that was nine pages long with a
customized letter from me which I simply had to sign. And so what we did, we
not only had a phenomenal call which I had tremendous feedback from
immediately, but we now have a tool that we're shipping out by the hundreds
along with the customized worksheet to our various distributors. So one of the
pieces of feedback that I got immediately from that was that someone who had a
store front selling our product immediately after a couple of weeks time, had
calculated and she had already made $250 more per day in sales in her tiny little
operation. She said it was incredible.

Scott: Awesome, that's awesome.

Eileen: So, I'm multiplying that now times thousands when we are able to fully
implement which we are just now getting started, we're doing so...that's pretty
exciting.

Scott: That's great.

Eileen: Yeah, and I got one more.

Scott: Okay.

Eileen: Scott's also working with me. I have trained doctors done a great of
medicine. I've got a phenomenal turn- key profit center where a doctor, health
professional can add 10 to $20,000 to his bottom line. I had a chiropractor who's
the number one chiropractor in the state of Alabama who was too busy, he
wanted to do this, but couldn't possibly see me until after January, because of
the little package that you designed putting my profit center together with a little
bit more customizing. He had another chiropractor flying in this week for special
appointments, Saturday night.

Scott: Great, great.

Eileen: So thank you Scott.

Scott: Yeah, there's an important distinction before we can ask anybody else,
thank you. There's an important distinction here in Eileen example, which is
she's got all these down line distributors, and the facts here are, I think, she was
doing $207 a transaction than the average other person was doing $70 or $80 a
transaction, specific duplicable model techniques. One conference call wasn't
going to do it, alright. That's why she taped it and now its ongoing training and
measurement to actually bring them up. You don't move a ship in a day and
from an implementation stand point, I went and took over a company that was
troubled and they were, they used to do 10 widgets an hour and they were down
to 4.6 widgets an hour and I couldn't say, okay, new incentive program, starting
tomorrow, everybody, we have to do 10. It took 18 months and we didn't get to
10, we got to 7.9. To understand this, you have to start to implement these
things, you've got to keep working at them, you're changing behaviors, you're
testing, you're modifying, it's not automatic and they any of you can go back and
say hey I tried one of those concepts and it didn't work, it's because you need to
work at it to get it to work. Yes.

Judy: Hi, my name is Judy Cash and I've been speaking so far about
transformational tours to Machu Picchu and other places. This time I want to just
mention we've got a retreat on an island. It's a very small retreat and the insight
that I've got here like accommodation for three different, like two rooms and a
(unclear 11:45) and the insight that I got is that part of the cleaning up and
homework I can do at not cost is simply reorganize in my own brain about the
way I've seen my business. I've always seen it as small and therefore I don't
have a budget to do much with it and I've missed entirely that managing a
business that's small is really a work of art and I have missed amazingly simple
things that I could do because I've just had an attitude that hasn't seen that
there's a real dynamic that I could have been working all the time at no cost.
We've even had a lot of the right things, about 80% in place. Like we do ask, we
do have point of sale, sort of add-on things that we put to people, offering
massage when you come, but instead of saying, like people have even said, do I
book that now, when they're booking a room and I say no, you can book it when
you come. I mean, really, because I've got an attitude that says, we're little I
guess and I've just accepted that. We've been in business now for 12 years and
that would be a millions dollars coming in over that time. If I had just been
creative and had not had that attitude, saw it as a work of art, it's something that
was dynamic that could really pulse, we'd have three times that much. So it
would take me another ten years...

Scott: I mean I have to pause on that because I'd promise I'd wrap up (unclear
13:12). This one last thing and again, you guys can glance at this here, but the
critical thing here is that you know when you're implementing a procedure, I
want to just give you some grounding here which is number one, you need to
document the procedure. It may sound anal; you've got to document the
procedure. You have to do it in two ways. When you're doing procedures and
you're creating them to get results, you want to look at two things. You want to
look at the tangibles. What are the physical steps we're doing, but don't forget
to also document for your own purposes the intangibles. What's the timing of
the up sell, what's the question I asked, what's the tonality I ask? Who's going to
do it? All of those things become extremely crucial when you're documenting.

The second one is once you've had it documented, then you can do what Jay is
always talked about. You can one up every element, every element once you do
it. Every time you come across a better way to do it, you've got a best practice
in hand. Why is that important? Because, not only is it important in getting
results, it's important because what happens so often is Mary leaves and she was
the one who was really good at it and somebody else comes in and you have no
training mechanism, one or two thing, either you're doing it yourself or you don't
get the results and you go back to losing that stream of income. The third thing
that you need to do is cement in your success. Have you ensure that your profit
generator is always produce. You've got to set up alarm. So like my chiropractor
client I told you about, documents those up sell dollars every single week. If
there are $550, $600, he doesn't worry, doesn't have time to worry. Just a
glance, but once it starts trailing off, you need to get involved and find out
what's going on or the profits you create are going to be the profits you actually
lose forever. You can never recoup them.

Jay: Don't stop, I'm going to ask you a few questions. Okay. Number one, what's
the one overriding action other than what you just said that is imperative that
every person here does A: with what they heard and experienced in the last
three days and B: with what I sent them and gave them in the last three weeks
or months.

Scott: Okay, absolute most important thing you can do is create momentum.
You're going to leave here, you've got a billion things you've heard again, Paul
and John talk about focusing on one thing. If you create momentum, momentum
gets exciting in the room; the ball gets bigger and bigger and bigger. So the
number one thing is don't go back and try to do the biggest thing. You'll tackle
it, you'll get busy, take one simple application, something that has power and
impact, John and Paul, both gave you tool to how to hierarchy this stuff, hierarch
your opportunities and pick one or two things. Once you do that, then you can
go back on a weekly bases as (unclear 15:59) teaches and introduce something
week after week after week and create momentum. I can tell you if you don't do
that, if you go back and you've got grandiose plans doing 4 or 5 or 10 or 15
things, you will not do it.

Jay: Next question. Not you, not me, what's the biggest insight you got from
somebody else here including it could be an individual at the mike or on the
stage that you think is so exceedingly important that these people also get that
they may not that you've got to tell them you're going to explode, if they don't
get it.

Scott: What's something that I'm going to tell them that's new?

Jay: Well something that you're going to tell them that's not about you, not
about me, but you observed it, you learned it, you rethought it by listening to
somebody else and either taking what they said or it stimulated something
totally different. You made a note for yourself to act on, I mean, it's an insight on
the highest magnitude that you don't teach, I don't teach, they heard but they
may not have really impacted them.

Scott: Alright. The thing is that, I don't remember what it's called. What's it,
rethinking inside the box?

Jay: Yeah.

Scott: Rethinking inside the box. All of you and I think, I don't know if everybody
got the power of that and I know you all get tired, but you've got an opportunity
to leverage your successes, and these are new opportunities, but if you look, I
think the premise of that was, if you look inside your box, you look at your
systems, you look at your assets, you look at how you can leverage those things,
that's immediate, it's instantaneous and the key here is that you all should go
back and be able to do that, take an inventory. If you go back and take time to
start looking at components of your business, you'll be embarrassed by what you
find. I went back one time in my business, in my healthcare business, and we
had 1000 different charge (unclear 00:46) 4 million invoices a year. 30% of our
business came from the state disability evaluation. I negotiated this deal with
multiple ones to raise the rates 15% or 20%, I can't remember what it was. So I
don't know if it was weeks or months down the road. The bottom line is, one day
I went down and what I would do once in a while is I sat down with invoices
(unclear 01:06) invoices and said, “Boy, started telling me how to do this.” and
also I saw the rate pop up, $15 instead of $20, and I went “What's this?” And I
had my staff go back and dig and I don't remember the number but 30 or 40% of
the charge codes never got changed. Now this is millions of dollars of pure
profit. Does that make sense? Now all of you should be going into your
businesses and taking a look at what you assume. Its little things, I got a ENT
doctor that says, “Oh we get the emails, great.” But you know when he went
back and looked at it, he found they weren't doing it, or they weren't doing it
systematically. So back and look within and look at your assets and find out how
you can leverage them.

Jay: Okay, you're very good at looking at a broad scope of things and honing in
on one real key message, aren't you?

Scott: I don't know. I'm going to find out.

(Audience laughs)

Jay: So, we had a lot of speakers and you got to see most of them, didn't you?

Scott: Yeah, quite a few, I guess.

Jay: We are going to do a(unclear 02:02 ) who's got the list of all those people
who spoke, anybody? I'm going to name a speaker and tell me what you think
the message that these people should have gotten from him or her voice. You
alright by that?

Scott: Okay, yeah, as long as I've listened.

Jay: If you were not there, say pass.

Scott: Alright.

Jay: And if you don't think you have it, say pass.

Scott: Okay.

Jay: Okay. Let's say (unclear 02:20).

Scott: Okay (unclear 02:21) message was is that you really have to dive in and
work on your business. It's not about wrestling; wrestling it to the ground and
it's really about I think taking the concept much consistent of what we're talking
about here and staying with what you think should work within your organization
to actually get it done. If you don't wrestle it to the ground and you don't get the
results, why would you switch? Why would you have a situation where you have
something that you've just calculated here that you think is going to make your
million dollar business, you should make 100,000 a year, you've identified
something that's going to make you $200,000 probably but you just don't believe
it in your heart. And yet you want to go back and you want to go back and work
on the next thing. It doesn't matter if it takes all year to do it, it's going to triple
your profits and that's what you all need to understand, to wrestle it to the
ground.

Jay: I love that, good. Mike Bash.

Scott: Mike Bash's concept is which I love because it's very customer centric, is
that it's all about building your relationships with the customers, not just giving
customer service, it's building relationships, it's walking your talk and I think the
overriding message of all of that or the benefit is that if you do that federal
express in (unclear 03:32) UPS as he talked about, built on that reputation and
once you get that reputation, they will come to you and they will stay with you
even when there's price competition. There's no greater in my opinion, there's
no greater combat to price competition other than creating value than creating
strong relationships with your clients and I think his message was very powerful.

Jay: Okay, I'm liking what you're saying so far. Paul Lambert. You've seen Paul?

Scott: Yes, Paul's message was similar to what I talk about which is one: focus
on one thing. It's all about implementation; it's all about being tactical. It's all
about taking the things you're learning from Jay, these ideas and focusing on
implementing one thing at a time and I love, by the way, didn't he have the
coolest graphics? Aw, it's just killer graphics. So it's all about implementing one
thing at a time and ultimately, at the end of that, being able to value that, to be
able to hierarchy that process and so you know, you're hearing that over and
over this, you know why? Because it's what's necessary, it's what's necessary to
get results. You know I think all of our speakers, I know Jay's goal is, we don't
want you to come to another one of these events and say, still haven't done it,
right? Rise to the next level. Next time you come to the next event, it's hey,
how do I take it for the next level. How do I go from, I went from a million to five
million, let's go from five to fifty.

Jay: Let's continue, I like this game. Jackie Hall.

Scott: What's that?

Jay: I like this game, Jackie Hall.

Scott: Was Jackie the...

Jay: The woman on the screen.

Scott: Oh, I learned a couple of things there. Number one is that she was very
patient in being interviewed.
(Audience laughs)

Jay: So patience is an attribute?

Scott: I only saw part of Jackie so I'm in a little bit of disadvantage there.

Jay: Okay, John (unclear 05:21)

Scott: John, John's message was, John's message was also very powerful and he
is, he has a very gifted way of presenting things. Doesn't he? He just humanizes
the whole process, isn't that awesome and again what you had is I think that
John's another one, as a matter of fact, I'll tell you, John and Paul stole my
thunder of what I was going to talk about today. So I'm upstairs scrambling to
take and modify...

Jay: After having three other sessions cut out from under him.

Scott: Yeah, and having how he crunch it all down, I didn't mean to go so fast,
but they were both, as a matter of fact I went and say to him you guys were
awesome you know, and I wish that what both of them had was a little bit more
time to actually take you through the tactical steps because when you look at
where they're heading, it's all about saying you know, look, there's a systematic
way of looking at these things, there's a systematic way of valuing things and
that's very powerful for all of you and what also I liked about what John had to
say was you know, it's about quality of life, you know, we're entrepreneurs, we
burn ourselves out. It's about quality of life and I think that you can do both and
I think what I've realized is that I made a goal to work for three days a week,
right now I'm not getting ready for this and all that, but I made a goal to work
three days a week and that's why I'm not a CEO anymore and you know, it's
interesting when you work three days a week. I set up my goals, I don't make
any less money and its amazing how my income has actually exponentially
grown because I put that in my mind set. So that's what I thought he offered.

Jay: Okay, what about Donald (unclear 06:45)?

Scott: Donald's, I didn't-I also didn't see that one.

Jay: (unclear 06:49)

Scott: I was up scrambling trying to adjust and modify...

Jay: I'm sorry, did you see (unclear 06:52)?

Scott: I did not see (unclear 06:53).

Jay: Okay William Thourlby.

Scott: No.

Jay: You didn't see him, the (unclear 06:56), from this morning.

Scott: Alright.
Jay: Okay, that's okay. Alright, okay. How about Brian Tracy? The big single
concept that you got from that, you can pass if you don't want to.

Scott: No, I don't want to pass him, just trying to think what I would say the
biggest message there is. Help me out here, get me started.

Jay: Who's got something good about him, so throw it out.

Audience: (Unclear)

Scott: Yeah, get over it. It was, it was about; he…

Audience: You become what you think about.

Scott: Yeah, you become what you think about. His was also I think that you
had with probably with Brian, thanks for triggering it, what you have with Brian
was that there's a lot mental state. It's about a lot about your mental attitude,
it's a lot about your mental thoughts and that it's as much to do with your
success as anything else. We all want to work-you've heard up here, you've
heard about strategy, we've heard about, I'm talking about tactical and you know
Brain's message is that you know, it's about attitude and if you have the right
attitude, if you have the right discipline, if you have the right focus, you set your
goals and you make sure you check those on a regular continuous basis and
discipline yourself, you will be successful and I think when he said you know you
could be anybody in this room who wants to be a millionaire, could be a
millionaire if you just focus your mind on it, take that mind set and focus on
staying focused and disciplined on your goals.

Jay: Did you see Andy? Did you watch Andy Miller?

Scott: No I did not; he was from this morning as well.

Jay: Did you watch Mark?

Scott: Yes.

Jay: What did you think Mark's message was?

Scott: Okay, well, Mark's message was (unclear 08:37)

(Audience laughing)

Jay: Are you interpreting the message in that message, he is encrypting the
coded message.

Scott: No, I was just joking. His....no no, it was powerful, but it was so fast it's
like my springs were popping and it was like his message is, you can leverage to
the nth degree. There is no end. If you set up and say I'm going to leverage this
thing and come at it a different way and always looking creating more value,
pulling more profitability out of your business. It's endless. Has he created a
money machine or what?
Jay: I think he also had a (unclear 09:07), I liked most of yours, on this one I
would have mended and said, I think he said, set higher goals for yourself.

Scott: Yes.

Jay: You're worthy of more than you accept from yourself.

Jay Abraham Mastermind Marketing 31

Jay: I think he also had a (unclear 00:08), I liked most of yours, on this one I
would have mended and said, I think he said, set higher goals for yourself.

Scott: Yes.

Jay: You're worthy of more than you accept from yourself, from your business,
from your efforts, from your actions, from your marketing. Do Andy. How about,
did you see any of Mac?

Scott: Well, I've seen Mac before. His is, you know, it's crack, fix it. No, I think
one of the...

(Audience laughs)

Jay: The CRACK.

Scott: One of Mac's greatest things is, you know, it's the bottom line is it doesn't
matter what we think. It doesn't matter what we think. It matters what the
customer or the prospect thinks and that there is no right answer that you've
got-there are some fundamentals. He's a master teaching you fundamentals,
but at the end of the day, none of us really know if it's going to work and the
bottom line is that you've got to test, test, test, test to find out that winning
formula.

Jay: Okay, how about Allen Coleman. Is Allen in the room? Allen here? Allen
Coleman? What do you think?

Scott: I didn't see him.

Jay: He was-he did, did you? He was the guy with a Double O Matrix. I though
you said you saw him. Thinking outside the box.

Scott: Oh, thinking outside, I already did that.

Jay: Yeah.

Scott: Yeah, okay.

Jay: But did you already say what you thought he was all about.

Scott: I already said, yeah, I already said that one.

Jay: Okay, did you see David Wagenvoord last night, late?
Scott: No.

Jay: The barter guy.

Scott: I would have liked to have seen that.

Jay: He was good. Okay so do me. What do you think I'm all about? You won't
offend me

(Audience laughs)

Scott: Well, I think that you are all about and especially, it's one thing when you
see and know Jay from the stage or you hear him on tape, but I can tell you from
spending private time with him as this is a man who is passionate about you
guys getting this. You know, here's somebody who's made millions and millions
of dollars, could have just stopped doing this and you know, when him and I first
met, he used to drive me nuts that they don't get it, that they're still not
implementing at the tactical level and I think what I admire about Jay is two
things I think that you've got to get out of this. Number one is he's constantly
looking for a better way to serve, he's constantly looking for a better way for the
techniques to work, that's why there's 12 or 13 or 14 speakers here because he's
trying to bring you collective knowledge to look at things in a whole, in a broader
way

Jay: I have one more and we're done. What's the biggest single insight, other
than your own comments that you've got out of the power panel last night?

Scott: I think probably the biggest insight that I got out of the power panel last
night which was interesting is one of the things is that, we all have different
views of strategy, that everybody has a different view of what strategies are
made up of and that there are different slices of the pie and I thought it's real
interesting to have be up here with 10 or 12 other people and hear so many
unique and valuable perspective, all of which were right. Isn't that cool?

Jay: This is true, we're getting ready to do a very expensive program in March or
April on strategy. It's going to sound funny to you, but (unclear 03:25) and I were
talking and it's interesting. I said, “You know, everybody thinks I'm a great
marketing whatever, expert, wizard.” I said, “Probably, I am, but I think I'm a
better strategist. I think I change peoples' strategy first and then I develop the
marketing” and I said, “most people are tactical” and I said, “of all the levers that
I know, the easiest thing to give somebody a leverage is change their strategy
because even if they execute wrong or not wrong but half past, it'll still work
better than doing (unclear 03:55) with the wrong strategy...

Scott: Right.

Jay: (unclear 03:57) people it's like that's, you know, learning (unclear 04:00)
and selling is instant leverage, changing your strategy is probably the second
biggest thing you can do and most people can't even-we, in preparing this, we're
going to do like a $25,000 program and if you guys want to come as a beta, you
can come in for almost nothing because we've got to get some betas in it, but we
look through like a 1000 pages on the internet, we look through books, very few
people have a clue, even the real-well how to describe strategy let alone what
the hell it is and yet as our four star general here told us...

(Audience laughs)

Jay: That's right

Scott: (unclear 04:44)

Jay: All you want is retire and get the money, right?

Audience: That's not enough.

Jay: And you want to get-don't you want the chauffeured Hummer for life?

Audience: (unclear 04:53) VIP's

Jay: You want the chauffeured Hummer for life, don't you? But strategy is-you've
got to have the tactics to deploy it and that's true, but if you have great tactics
without a strategy, you'll never grow to the levels, you'll never have a sustaining
business, you'll never be outside of it and you'll never have the asset value that
business could be worth.

Scott: I think, see, I would have argued with your opening statements. I think
the greatest asset, the greatest thing you've brought, the greatest thing is
strategy. It's changing the mindset, it's thinking, it's it's about new possibilities...

Jay: That about-that is strategic. That is a strategy. It's a strategic distinction.

Scott: Absolutely.

Jay: It's a philosophical strategy of life. Okay, you did great and I'm sorry again
for all of this, but we (unclear 05:33). Thanks a lot

(Audience claps)

Scott: Thank you.

Jay: Okay, here's the deal.

Scott: Let me see if I'm (unclear 05:50)

Jay: This is always the case, I'm under time, I'm way ahead, everything is rowing
along...

(Audience laughs)

Jay: Not. Okay, so we're going to take, just as-you only have ten minutes to
break and then if you've got to talk, stay and shut the doors. Mac and I, here's
the game plan. I've got to get you to dinner at 9 or I screw you guys up, I screw
the staff up and worse, I turn rubber pasta that's cold into hard stiff macroman. I
don't think you want to that. So we're going to go until 9 and here's what we're
going to do. We're going to do crisscross pollinated permutations of hot seats
question and answer scenarios like getting everybody to the mike to
demonstrate all the ways they've figured out to make money with the internet.
We're going to keep changing the game until you get it deep enough. We're
going to break, we're going to see what it's like at 10. We may do another hour
or two and then we're going to build late in the night and so we're not going to
be able to be on tape. I promise you we will do, we will stay till it's done. We're
going to build you an action plan. But I've got to get some things that I haven't
covered yet and rather than doing them in boring linear-just basically literal list,
it isn't going to work. I want to do it in empirical and illustrative (unclear 07:10)
or so, could take a ten minute whatever, put on something really loud and
energizing so I can get myself ready and we come back and get ready for a real
fast paced trip.

Jay: Here, this is very important. Okay? Are you here for the whole thing?
You're not leaving till 8?

Audience1: No.

Jay: Okay. What's your regular business?

Audience1: I work (unclear 00:10 track 2) illustrated.

Jay: Okay, well, for the rest of the session,

Audience1: I'll be (unclear 00:14 track 2) with fine arts.

Jay: Well you (unclear 00:16 track 2) worked with fine arts, but right now, you've
just become the director of the Abraham Marketing Ets and your job is to recruit
men and women and we'll have-in the last, in the end, we'll have a little
performance, okay, so, at dinner you can figure it out, alright?

Audience1: What do you want me to do with that?

Jay: I don't know, you're going to surprise us!

Mac: He's a big delegator, you know, basically making up...

Audience1: (Unclear 00:38 track 2)

Jay: It's the Abraham Marketing Ets.

Audience1: Ets?

Jay: Ets. Marketing Ets. It's a group. It's a performance, like a drill team

Audience1: Like the Rockets.

Jay: Like the Rockets, except we're the Marketing Ets. Men or women, I don't
care, you figure it out.

Mac: One of your inspired ideas.

Jay: Okay. Alright, don't laugh, I'm serious.

Audience1: I know.

Jay: I take myself serious. Are you laughing at me behind my back?

Audience1: No, we're enjoying. (unclear 01:05 track 2)

Jay: Who wants to volunteer? Okay see you her at dinner. You disrupted this
Mac.

Mac: Yeah.

Jay: You want to see anything interesting about Mac's demeanor, his style?

Audience: (unclear 01:20 track 2)

Jay: Is he a dancing machine?

(Audience claps and whistles)

Mac: It's the tie Jay.

Jay: Is that tie hot?

Mac: Jay caught me coming out of my room and he said, you have to put on this
tie!

(Audience laughs)

Mac: I have something special later.

Jay: Okay, okay, we'll get rid of this. Alright, can you give me a sparkling water
please?

Mac: Oh, it doesn't affect (unclear 01:40 track 2)

Jay: And hand me one of that (unclear 01:42 track 2)

Mac: Yes, it's a nice tie, it's a beautiful tie.

Jay: Okay, so...

Mac: I think this is my fa...

Jay: That's a nice tie Mac!

Audience: (unclear 01:54 track 2)

Jay: I only wear it on holidays.

Mac: Which holidays?

(Audience laughs)
Jay: Insanity day, you know.

Mac: You never take a holiday, that's just why it's no use.

Jay: That's true (unclear 02:06 track 2) anyhow, okay. So we've got a bunch of
ground to cover. We're going to go till probably the hotel thinks we're crazy
because we're probably here till one or two, but we've got a couple of quick
points we've got to make before we start. We're got five or four issues, we've
got to teach you and I'm going to take one, Mac will take one, we're going to be
very quick and we'll spend about four minutes on each. You take your choice
first, I'll take the next one, of your list.

Mac: Okay, here's an issue that I-really has been surfacing in a lot of my
discussions and it's one that we should have treated-we treat; it always pops up.
This is scientific method as enthusiastic as it can be. Jay's method-there's
method in the madness. You are not, repeat, not authorized to throw your
current businesses in the trash and dive into the deep end of the pool. You're
just not authorized by Jay Abraham. And what I mean by this is that people get
so enthusiastic about these new techniques that they say, “Oh, all my old stuff is
crap!” I didn't say that. What's his name, Scott did. They do, and they say “Oh,
it's just terrible!” and they forget that that's their basis. That's what they need
to measure things against, that's what makes it scientific, that's their control in
direct marketing terms. Don't throw away what brought you to the party. Hold
on to it. It's your crown jewels.

Jay: To explain...

Mac: If you can make an improvement on it, that's the improvement. Your
enthusiasm maybe wonderful, but it may not sell. You worked on your old engine
for a long time. People have been trying to throw away the internal combustion
engine for 100 years, we're still with it. This is-you make sure that what you're
doing is in fact an improvement and you don't just trash your old business
because your bored with it and please, please, it's a method, it's a stepping
stone process, you want to move from known to unknown. If you think your
message is stale, don't change the medium, don't change the format, change
just the message. The elements of whatever you're doing have to be controlled.
If you go into an unknown market with an unknown product and an unknown
message, in the end, you don't know anything, even if it works.

Jay: So, can I make some additions?

Mac: Please, this is...

Jay: So you've got a business, my line, is that on?

Audience: Yes.

Jay: Off or on?

Audience: On!
Jay: On, okay. So you've got a business that is generating some cash flow,
positive or negative. There are some mechanisms doing it. You have sales trips,
you've got ads, you have this. You don't stop everything. The first thing you do
is say “Every element I have in place right now is what I will call my control
mechanisms because that is the best I know I have going right now.” Would you
agree Mac?

Mac: And you know something about it.

Jay: And then you, first then you measure and quantify, you say, “Okay, I've
never looked at this.” What is your name?

Bill: Bill.

Jay: Bill, one of our sales person is, I start looking at elements that I can-some
metrics that I can measure and quantify. I start seeing that Bill is calling on 10
people a day and securing three appointments and making two presentations
and closing one out of those and selling an average of 100. I've got a basis. I
see that, what is your name?

Sara: Sara.

Jay: Sara is running the direct mail department. She is sending out 10,000
pieces a week and the piece she's mailing right now which is, let's call it the A
piece and it's pulling one half percent leads and of those 10% of the one half
percent coming in are converting to an average of $200. That's our control B
from that thing. (Unclear 06:10 track 2) just give me some. And then we see
that...

Reyman: Reyman.

Jay: Reyman is basically going to trade shows and he is spending on an average

including his salaries, incremental expenses, the trade show stuff, the fee we
pay, $6000 of trade show and he is bringing in, because I started analyzing it, 8
new accounts, worse case and each account's worth $2000 a time and were
making $500 on that and staying for about a year worse case, three times then
it's whatever that is. You get what I'm saying?

Mac: And what this means is, what this means is if you have something in place,
you don't just throw it in the trash.

Jay: Okay, because that's (unclear 06:53 track 2) but then you've got, then you
know, then you say, okay, I've got choices. First choice is can I make what they
are doing perform better? And if the answer is yes, then next one is how? If you
don't know, the first thing is you look outside and see how other people are
performing the same function, do it. And then, if you see if you can borrow
elements and not replace what is working but side by side compare to see if
changing the constitution and the construction.

Mac: Why do you think they call it copyrighting?

(Audience laughs)

Jay: He's right. No, but the point is you test...

Mac: You find things, other things and no ego...

Jay: And this is the logic. You don't test direct mail instead of space yet. You
start with where you are, what brung you to wherever you are. Before you
abandon it, you've got to make sure you've got something better you seek and I
make that ad perform better. Can I change a headline, can I change an offer, can
I change a call to action, can I change guarantee, can I change price, can I
change the way I receive the order, what I say, the script I use. Any number of
variables. That's one thing. At the same time, there is nothing wrong with
separately, but without ever compromising what is sustaining your current
success trying any other number of the other elements we talked about and any
other number of the 50 elements we didn't talk about that I gave you better
education about than you've ever gotten in your life in the first day's stuff, in the
last days stuff and in the 12 big big big documents and items we gave you and
conservatively trying that out separately, not in lieu of but separately in addition
to conservatively to see if it works and if it does work, if it works better and if it
does work better but the other one is making you money, why in gods name
would want to stop it? I'll give you a story. I've got to give you a story.

Mac: For instance, can I just say, it isn't, for instance, testing is not, say, firing all
your salesmen and saying we're going to go with web presence. That's not
testing. Testing is trying a little web...

Jay: It's asking two separate questions.

Mac: ...questions at the same time.

Jay: How much better can I make what I'm already doing to action or the
categoric activity perform and it's asking, is there a better different way to get
the same access or result and if the answer is if I can make this perform better,
but I can get a better result here, you don't abandon this, you combine them
because you understand force multiplier, you understand the parthenon, you
understand the power business geometry, right?

Audience: Yes.

Jay: Does that help clarify that question? Okay, one down.

Mac: Okay.

Jay: Next.

Mac: You want one or do you...

Jay: Yeah. Guarantees.

Mac: Oh yeah, good.

Jay: Okay, so, I don't know if I said this but I'll say it again. Anytime two parties
come together to do any kind of transaction business, fraternal, social, romantic,
you know, you want to get a job, you want to get a client, you want to get laid,
I'm not trying to be funny, you want to get name to the top of the city council,
there is always inherent in the transaction. One side is always asking the other
to assume and you fill in the blank, most all or more than all of the risk in the
transaction and the complexity here is the risk can be tangible, it can be
intangible, can't just be a financial or giving your life to the wrong lover or it can
be intangible, it can be (unclear 10:42 track 2)

Mac: Can I give an example? There's one that's in this room which is, I saw from
flier that somebody put together on a software system for businesses and he is
featuring his money back guarantee. Well if you're-you'll meet people in
business, what's your concern is your concern over even a $1500 software
product that you can get your money back if it doesn't work, if you install it and
you run it and it's supposed to run your whole business, what's your concern?

Jay: You worried about the $300.

Mac: Is it the $500 or even $1000, what's your concern?

Audience: (unclear 11:15 track 2)

Mac: That it'll destroy your business, isn't it? And so, getting the money back is
the least of your worries and so that's a hard warrant to warranty, but it may well
be, and this person has over 100, raise your hand, where are you? Right there in
the red shirt, what's your name?

Brad: Brad.

Mac: Brad. Brad has 100 testimonials. Testimonials like a risk reversal because
it says, all these people who were in business and who liked me, written me and
said, the foot on the line says, it works. It's not a classic guarantee, but it is a
risk reversal, because, people, you say, “Okay if it works for all those guys and
they're willing to put it on the line, then I believe it” then that's a risk reversal, it
was not a classic guarantee and this, it's a kind of nuance.

Jay: So, there are so many ways to do it, but you've got to realize and if you read
all these case studies as Rick said, something in the vicinity of 60% to 75% use
variances of risk reversal. What I say is there's a very big difference between
saying satisfaction guarantee or saying okay, come to the seminar, you sign up.
First thing is we're going to send you stuff worth $11,000. Why is it worth
$11,000, because we actually have sold it for that in the last few years and
we've sold it to thousands of people. We're going to give it to you to study and
examine and evaluate for 30 days before you ever show up, 60, maybe if you
really proactive and commit. Now, we're going to give it to you to put to the acid
test, not just a test theoretically, but to apply in your business wherever it's best
suited and unless it makes you at least $5000, which coincidentally is the entire
price of the program ahead of ever coming, we don't even want you to go
forward, but we insist you keep all the collection for your trouble because we
think your time and your faith in us is worth it, but after you have made $5000 or
multiples thereof, we think that's not enough because your time traveling, your
faith afterwards is so valuable and precious and really important to us that we
insist that we must deliver a multiple on that $5000 before 2 o'clock on day two
or we absolutely don't think your purchase should be binding on your part. We
don't even deserve to get to keep your good faith deposit. You should leave
discretely and respectfully and get your money returned, but if we do provide
what we said, that's not enough and we don't really need or want your money
upfront, we'd rather pay for your attendance purchase for you which we probably
would have done earlier but if we didn't for some bizarre reason, like maybe just
couldn't get around to it, we let you pay after you profit afterwards and to make
darn certain as it sinks in, we'll be on the phone with you for 12 months, 90
minutes a month that's a pretty good guarantee isn't it? See the difference
between satisfaction guarantee. Mac, you want to comment? Is that clear
enough for you?

Mac: Is that clarified?

Jay: No, I'm serious.

Mac: Does that clarify anybody's thinking, is anybody even...

Jay: You've got a question. Alright go to the mike if you have a question. You've
got any question, because I don't to hear a grumbling at one, “Oh I didn't hear
about guarantees” Go ahead.

Mac: The other is, the other side of don't guarantee what you cannot guarantee.
That's the corollary.

Jay: Yeah.

Mac: Don't...

Jay: Did I talk about realtors here or not. Did I already give the example of
realtors the other day? I did, yes. I thought I did. Did I make sense?

Audience: Yes.

Jay: Okay, because you can't guarantee everything, but if you can guarantee
more of the transaction or the first thing is you've got to be able to do what I call
a risk audit, a risk inventory. What's the risk-tangible and intangible because if
you don't know what it is, how can you take it away? And it can't be what you
think it is necessarily, it's what they absolutely perceive it to be tangibly and
intangibly. Remember when I read to you this strategy of preeminence and I
talked about putting words into feelings that has never been verbalized before?
This is the absolute arena where it's critical. This is it. Do you want to go deeper
after I answer these questions?

Mac: He has a questions first.

Tad: My name's Tad from Canada. I do workshops, I day-long workshops for
student councils and I offer 30 day guarantee let's say, do I remind them at the
end of the 30 days, okay the 30 days is up, now if you want to, you know...

Mac: Only if you have too much money in the project.

Jay: No but you remind them on day 1, I mean, what we didn't get into and I
don't (unclear 16:08 track 2) to be a good teacher of this, but I believe in what
it's called future pacing and future pacing is a process of setting the visual
expectation for what-pardon me-the future is going to be like after you either
acquire the product service and it's transactionally functioning to protect or
enhance your life or your business. For example, I envy you Muhammad? I got a
good memory, don't I because I can't see far enough.

Muhammad: That's wonderful, thank you.

Jay: You're in the printing business I think.

Muhammad: Yes.

Jay: I got double good memory. And you're going back tomorrow and you're
going to be a little tired but you're going to set in motion an incredible series of
events and activities and guess what's going to happen. You're going to start
having, first thing is, you're going to start having satisfied, happy clients who
realize how much value you give them and how incredibly important it is and
they're going to start telling all of their clients and they're going to start telling
all of their vendors and you're going to start seeing an incredible consistent-it'll
start as a really nice flow and you'll start becoming more and more acute, it'll
almost become title proportions if you do it right, every week you're going to
start seeing incredible flow event and then guess what's going to happen. You've
salespeople in the field?

Muhammad: Yes.

Jay: Your salespeople are going to start basically, they're going to start number
one: getting better appointments, making better presentations, closing more
clients, getting more quality people that not only you're going to enjoy, you're
not going to negotiate down to nothing, you're going to start enjoying it, you're
going to have clients that bring other clients and it'll go on and on. By taking the
future to what it's going to be like, that's going to be pretty exciting expectation,
isn't it? That's called future pacing and you try to put future pacing into a
guarantee. Let me demonstrate and when we use that example, that-is probably
going to say, it's not legal, I just don't know the legalities of supplements, but
supplements is a great use. I'm going to (unclear 17:58 track 2) you'll have to
refine it, but I'm going to get it, so I can could say, “Well gosh, I'll sell you, these
supplements with 30 day unconditional guarantee.” That's pretty exciting isn't
it? What if I say, what is your name? Yeah.

Luke: Luke
Jay: Luke?

Luke: Yeah.

Jay: Here's the deal. I'd like you to do this for me. Would you be willing to try
these supplements 3 a day, one at 8 when you start your day, maybe (unclear
18:25 track 2) at the office, one at noon, right before you have your first drink of
water, coffee, coke; one when you get home before you eat dinner and monitor
yourself, if within 30 days or less, the following things don't happen, I wouldn't
deserve or expect to keep your money. Number one: you start having the energy
you had when you were back at 18. You're getting up an hour earlier, your
staying up an hour later, you're in the moment, focused, things that used to
really upset and perturb you don't bother you at all, you're attentive at work,
you're getting more done everyday than you maybe got done every two or three
or (unclear 19:06 track 2). Your staff is telling you're a heck of a lot more calm
and enjoyable to be around, you're seeing your staff and your clients and your
prospects treat you with a different level of respect. Your family is really enjoying
you. Your wife is finding you more romantic, you're relaxed, you're-people are
telling you, “Boy, you look so good!” and if that doesn't happen and you don't
feel that way by on or before 30 days, I don't want and I don't deserve, I don't-I
wouldn't think of keeping your money. Would you be able to try that for me?

Luke: Sure.

Jay: Sound better?

Mac: To answer that question specifically on whether you should send the notice
at 30 days, well you'd probably do it because people do what you ask them to
do. There's what I call a meta-message if you sent that notice.

Jay: Yeah, good point.

Mac: The meta-message was to people who are out there and who are basically
satisfied, they go “Oh, maybe I should be unsatisfied.” So you just made them
unhappy with something they were relatively (unclear 00:56 track 3).

Jay: Yeah, you should use what I was saying is you should preempt it in the
beginning to give them a great expectation, because there’ll be more mind flow
of how much value they got out of it and Mac is right unless you don't give them
anything worth the value and then you're screwed and that's your problem.
Okay, yes.

Audience2: I had a question. Yesterday, you were talking about the radio
advertising and the guarantees that you-you were asking of the radio something
in return but there was never an explanation of exactly what were you asking in
return.

Jay: I'm sorry I was thinking about what Max just said and I didn't hear you at all
time. Say it again.
Audience2: Okay, what I was asking about was yesterday you were talking
about...

Jay: Which me; me me, or this me? Us or the group

Audience2: You know what, I don't...

Jay: Someone was just talking about it, so let's get this right...

Mac: Someone (unclear 01:45 track 3)

Jay: Someone in this room maybe a speaker, maybe someone else...

Audience2: No, no no, it's a speaker and he was saying something about, okay
if we're going to present you with an advertising proposal for a radio station,
they were going to ask something in return from the radio station and...

Jay: I don't remember it.

Audience: Barter (unclear 02:05 track 3)

Jay: Yeah but I don't remember, I was in the room, but I don't remember the
context. Remind me what it was

Mac: (unclear 02:10 track 3)

Audience2: Okay (unclear 02:12 track 3) was something you've been asking in
return from the radio station basically trusting your money with advertising
campaign with the radio station.

Jay: I'm sorry, I don't remember this

Mac: (unclear 02:25 track 3) I think this is David Wagenvoord

Jay: (unclear 02:26 track 3)Who can give me the scenario, I can't remember the
scenario.

Audience: You said client list, barter.

Jay: But give me the exact scenario. What is was it?

Audience: Carnival Cruise.

Jay: So Carnival Cruise goes to a radio station and what do they get, what do
they give, what do they get?

Mac: They get (unclear 02:42 track 3)

Jay: (unclear 02:42 track 3) go to the radio (unclear 02:42 track 3) and say we
have cruises, our cruises offer $2000 a week. You have radio advertising, it sells
for $2000 for a 60 second commercial. For every time you run a 60 in double A
drive time, we'll give you a cruise credit. You can use that credit anytime in the
next 12 months. You can use it together to bump up to more expensive or you
can use it to go down. It's doesn't matter when you use it as long as it's on
availability basis. Is that answer your question?

Audience2: Yes, it does.

Jay: Okay, next.

Audience3: Jay, I was going to send a direct mail, a letter in January, Mac, the
other night, I went over the letter with us as a group, the one area in the letter
it's. Jay Abraham type letter. This is for prospective patients as a gynecologist,
but the one area that I can't quite figure out Jay is the USP because, when you're
talking, I'm sorry, with a guarantee because, we're not able to give their money
back or...

Jay: (Unclear 03:44 track 3) I can make jokes which I want. You might be able to
really-I'm going to try to-I'm not going to be evasive, but you might be able to
refer to the fact that you have a unique empathic understanding-you feel the
problems that they feel and your approach is very unique for a male obstetrician
or sorry gynecologist...don't you think?

Audience3: Yeah, that's right, (unclear 04:14 track 3) because the whole point is
you can't really guarantee the result except that it won't hurt...

Jay: It won't hurt but I don't know if that's enough.

Audience3: Except your best efforts basis is the supreme care, the supreme
care.

Jay: Yeah I think it's empathic.

Audience3: Supreme empathy

Jay: Yeah that's what I think.

Audience3: in every fiber of you...

Jay: Women, what do you think?

Audience: (unclear 04:38 track 3)

Jay: Pardon, and that's a great idea. It's a great idea, use testimonials...

Audience3: Right.

Jay: ...from women and ask them and record them, you guys will get into this
testimonials because, your clients, your patients, they can do so much, they'll
tell in their own passionate heart filling-which is also-can I-so I'm thinking about
this or I'll forget. I don't know if you've ever, have you ever heard of my
amazon.com school of copyrighting.

Audience3: No
Jay: Oh, this is too cool. I get tickled with myself. I don't come up with a lot of
great views but when I do they're so cool. How do you like to have a billion dollar
copyrighting genius at your beck and call for free 24/7. You do? It's called
amazon.com. Anytime you want to write copy about anything, anything, all
you've got to do is go to amazon.com, put in a search engine in the generic
topic, take the 50 top books on the subject, go to them on Amazon, look first of
all at the titles and the subtitles. Write those down. Then go to the descriptions,
write those down then go to all the five's and four's and all of it, the one's two's
and zero's, they're polarized. You get the best most passionate articulation from
people of what they felt great about it. You get the worse ones and what they
didn't want. Take those words, build it, you'll get killer copy. How do you like
that?

Mac: I think that's great.

(Audience claps)

Mac: I'm really, that's absolutely wonderful.

Jay: No, I've done it, it works.

Audience3: So Jay, one last-I went over this with (unclear 06:09 track 3)
Churchill and he had said if anyone has this concern then come up and talk to
him. What he recommended was doing exactly what you're saying, but in the
last paragraphs there is something like I know it's difficult for you to come to this
office but as a token of encouragement I'm offering this book.

Jay: It's good. See all of you, I've got to say this again and god bless Mark Victor
Hanson, he's a wonderful person, he did not address something I ask him to, it's
not a negative criticism of him, it's a correction and amplification and addition
that you've got to know. There's nobody in this room who shouldn't have a book
that demonstrates you understand it, that demonstrates you are more expert, it
demonstrates you're more empathic, it puts words into-you do not have to write.
You can go to any journalistic student, grad student, have them write it for you,
there's probably stuff online...

Mac: (Unclear 07:03 track 3) obviously.

Jay: You know the GSA, the Government Services Agency probably spends $7
billion a year and have cumulatively created so many public domain books and
reports, you can do anything you want with. There's a lot of ways to do it. All
you've got to do is do it. Wouldn't you agree Mac?

Mac: Yes, you put your own spin on it, because a lot of the hard work is...

Jay: It gives you credibility. It's a great (unclear 07:24 track 3). yeah, I want to
hurry through.

Audience4: My question is on money back guarantee specifically (unclear 07:31

track 3) money back guarantee. I did a workshop on how to build (unclear 07:34
track 3) list profit from it two months ago. Only 39 people were in the workshop,
videotaped it and prelaunched it two weeks ago to the first fifty of my high ticket
item clients and I did a two program money back guarantee. One is 12 months,
no questions asked, give your money back if you're not happy with the videos
and audios. Second money back guarantee is if you don't profit 10 times what
you paid for which is, they paid $500 for the video-audio set, I will double your
money back. That's two program guarantees...

Jay: Yeah, what's the question?

Audience4: Now my question is this. I told them it's only for the first fifty of my
paid clients, my special clients. In the online world selling ebooks and digital
products, I know the longer the guarantee the better it is, less refunds almost nil.

Mac: Yeah, that's true. Universal.

Jay: It is true everywhere. The longer the guarantee, always better the refund
because people forget about it, they're aren't as judgmental. The shorter the
guarantee, the more magic and lightning in the bottle they expect to produce
instantly. Don't you think Mac?

Mac: Yes. You should...

Audience4: So, I should do the same thing for the...

Mac: You should, absolutely. You should (unclear 08:53 track 3)

Jay: Does it deliver good value?

Audience4: Absolutely.

Jay: If they follow what you teach...

Audience4: Mac is reviewing the web copy now.

Jay: Okay, but I'm asking you. I'm not asking Mac.

Audience4: I'm sorry.

Jay: I'm asking you from the depths of your heart. If I bought it, would you sell
that to your mother and would you be happy with that guarantee.

Audience4: Absolutely

Jay: Okay.

Mac: You should be aware, this is a business question that a lifetime guarantee
or warranty can be an impediment to sale of a business because it's an
overhanging liability...

Jay: Contingent liability ()

Mac: You may want to limit it at some point and that, if you ever...
Jay: Or, which is also where the flip is, but it can be great negotiating advantage
since you know very little of it to come true. Take it as consideration, be (unclear
09:33 track 3) as long as they pay for it.

Mac:That's right, it's negotiating

Jay: It's great.

Audience4:Thanks.

Jay: You're welcome.

Audience5: Could you maybe give me some flavor as to how guarantees work
in professional services?

Jay: What kind are they?

Audience5: Support services, engineering services to the federal government.

Mac: It's the same answer we gave (unclear 09:54 track 3). it's the character of,
it's the performance record of your work, it's your preparation, it's your
education, it's your track record and it's your approach and your personal style.

Audience5: Okay, I got it. The guarantee, when I filter the word guarantee, I
think of money back guarantee...

Mac: Think of risk reversal.

Jay: So stop...okay, I'm sorry.

Mac: Go ahead.

Jay: So let me ask you some questions. Is it all bid or is it-do they have to bid
everything?

Audience5: A lot of it is bid, but...

Jay: Okay, who does their requests for proposal. Do you help-are you, let's talk
about preemptive advantage. I'm so sorry David Carrington had to leave.

Mac: Yeah.

Jay: First thing is can you get involved and say look, I would love to do
businesses with the government if we can add more value than any other
supplier or choice of resource but right now let us start by helping you create the
best RFP that addresses every area because we think because we understand it,
we can help identify some areas you've never thought of and so you help them
build the RFP because it shows and you build it more for their needs not yours
because, and you also build it at a higher level of-two ways to do. Number one is
build it for them and have it really show that you really thought through things
they haven't. Number two is when you bid, bid back doing that or throw in for
free other things that are complementary. They're going to have to get done to
before, during, or after that have lower cost higher margins, whether you own it
or get it outside. That's another way to guarantee, but to guarantee it you can
say three things. You can say, we'll do it in stages, we'll decide together
minimum milestones, benchmarks, metrics, performance criteria that you will set
that we will agree are reasonable and that we absolutely can, must achieve and
if we do not, you will have three options. Number one: terminated at that point,
replaces. Number two: terminated at that point and I have us refund the money
if it's substandard. Number three, because you understand that it's not our fault,
let us go forward and that's pretty powerful and you can table your risk. You
might say “Well it blows, we're going to lose ten grand but if we go forward,
we're going to get ten million.” I mean, does that help?

Audience5: Got it. Yeah that allows us to wire the effort.

Jay: Good, okay.

Audience5: Thank you.

Jay: You're welcome.

Audience6: Hi Jay.

Jay: Hello

Audience6: I'm one of the 15% of the people here this weekend who happens to
be female and women...

Jay: Okay, can-can we make one point. I want to address something. I was told
that some women said I didn't have women representatives. Let me tell you...

Audience: Yes

Jay: You want me to answer you or would you like to go on to the next question?

Audience6: It's not the question. That's not my question.

Jay: No no, I want to address something.

Audience6: Okay.

Jay: I really did two ways, Jackie Hall who you heard was going to be on the
panels. She was going to give one of the very first presentations. She was going
to be rolling around. Debra Neil, are you here? Is she still here? Edwin's wife,
who runs a bunch of his retail businesses and just a killer killer competent person
was going to be on the tactical panels and I was going to pull her up. We're not
trying to be non-I mean, believe me, I love women. I love competent women.

Audience6: We can tell.

Jay: So I apologize but it's not that I'm trying to be sexist or discriminating. We
actually had two and the first one had a change in base and we had to alter the
second but it's not true, it's absolutely not true and as more and more women
start coming, we'll have more and more because I've helped tons of-I mean
Patricia Seibel is a client of mine, she's a killer. I've got a lots of wonderful
wonderful people who I'd love to have come but they can't all and the schedules
don't all don't all accommodate as I learn more and more people who are great.
If you guys have good ones, suggest to me. We are delighted, it's not anything
negative, don't misunderstand or misinterpret our intentions excuse me, go
ahead.

Audience6: Thank you. I was saying I'm one of the 15% of the people here who
happened to be women and I've coached hundreds of women over the past
couple of years, men as well and every single one of the women to (unclear
00:156 track 4) are really repelled by the whole military tactics, crush the
competition, rip their heads off, scorched earth marketing...

Jay: It's only, let me give you...

Audience6: Let me finish my question.

Jay: You ask it to me.

Audience6: On the side of the customer, it's like okay we love them, we nurture
them, we think they're wonderful, we respect them, but then it's almost like
schizophrenic, you know we rip their heads off and I don't get that. Something's
missing there.

Jay: Okay, so let me-can I try to first take on that or would you like to ?

Mac: Well I don't want to go near her!

(Audience laughs and applauds)

Jay: No, I can't, I can't, I can't I can't, alright, stop, no no. Okay, let me give you
a perspective.

Audience6: He doesn't even like it.

Jay: I'm going to ask a question now, Joseph you want to dive in some real
treacherous waters with me?

Joseph: I have always (Unclear 01:02 track 4)

Jay: Okay, so you're a military person. Right?

Joseph: Right.

Jay: Okay. You are-basically you have troops, you have young men and women
that are under your charge, right?

Joseph: Right.

Jay: You care about their well being, you care about them having the safest best
possible, don't you?

Joseph: It's the most important thing we do.

Jay: The most important thing in the world. You want to see them thrive, you
want to see them go home to their families, their loved ones, their wives, their
mothers, right. There's somebody out there threatening their well-being. Now
do you want to basically be tacit and-basically pacifistic and not let that person
who's threatening their well-being go on?

Joseph: Hell no.

Jay: Okay, he said, hell no. Now let me give you a different switch. I'm going to
couple different visuals and you can embrace them or you can reject them.
Okay. If a competitor who does not understand the strategy of preeminence, if
the competitor who doesn't really care at the deepest seated heart of his or her
being, culture, entity, organization, about a client or a prospect, if a competitor
who renders substandard service value impact protection well-being experience
gets that client, you've got to do everything in your power to avoid that from
happening, not because you really want to kill that competitor because it
deserves the client's best interests. You've got to stops them...

Audience5: Totally with you on that.

Jay: You've got to protect them, you've got to cut him off at the pass, you've got
to do everything and maybe in the process you actually end up educating that
competitor to come up and be a finer, better, more contributing person and
make you have to rise to a higher level. Does that help you reconcile it?

Audience5: Sure it does.

Mac: Yeah, but you have a different set of-just for my education. Do you have a
different set of metaphorical references for a competition? I mean, what would
you use?

Audience5: I think you attract the people that you're supposed to do business
with and if you are really (unclear 03:14 track 4) and you've really got a good
positioning, I mean, you're going to attract those people, you're going to draw
them in and the ones that you're not supposed to have, you're not going to have.

Jay: I'm going to tell you something that I really-other than ripping the heads off,
the competition was a headline that I actually used long time ago. I'm going to
tell you something. It made a million dollars. Now we wrote it because we did a
private little discussion with a lot of entrepreneurs we found that deep down in
the core of their heart, they didn't really want to see their competitors thrive.

(Audience laughs)

Jay: Now, would you agree Mac.

Mac: I just remember reading a very-an interesting story about some of the-both
in the 19th century the most dreaded event to happen in the west was for a
white man to fall into the aboriginee's hands because the women would skin
them alive, cook them alive, I'm not sure that women are always pacifistic and
nurturing in the same role that you're suggesting, I think that's a romanticism
and since I'm taking it on, and I'm not sure that the notion that women are
always mild, I can tell you, you're going to meet my wife...

(Audience laughs)

Mac: Who I wish was on this panel because she's very effective, but she works
(unclear 04:38 track 4) I promise you.

(Audience laughs)

Mac: That's how I got so sure.

Jay: Wait, he was a basketball player when I met him. (unclear 04:45 track 4)
reminds me of Joan of arc.

Mac: But that's how it's-i think the rest-are communications, I think your point is
well taken. There are communications in metaphorical acceptances...

Jay: You need not use that one. You need not use-you can come up with any
references you want.

Audience5: Jay, I just feel like you have a huge under served market because
women are starting businesses at double the rate of men, but women to be only
15%...

Jay: And we're interested in that...

Audience5: ...like where's the chicks, you know.

Jay: No, that's good and that's a very good suggestion, if you have great ways
that you guys, you women guys can...

(Audience laughs, applauds)

Jay: ...can suggest to me how to access them better, I’m so open and you've got
my mind set so come back and merit to me and humble me with enrichment and
I’ll be very appreciative.

Audience5: Okay, thank you Jay.

(unclear 05:35 track 4): I just got one little comment for the little lady here. How
about...

Jay: Help me, but I’m right here, give it to me right here ()

(unclear 05:35 track 4): How about a two cosmetologist or shops...

Jay: No, say it again.

(unclear 05:35 track 4): How about one shop that caters to females, has only
lipstick and the other shop has 1000 shades of lipsticks, all the rouge, all the eye
markers, and all the other pampering that goes with it and you tell me that the
two of them won't be competitive? And which one had the most guns and
ammunition? So just use some women metaphors.

Jay: Yeah that's good. I like that. That's good.

Audience6: Alright Jay, I'm in the wireless business (unclear 06:07 track 4). We
don't get to hold our commission until 180 days after someone's on service.

Jay: Right.

Audience6: And the comment about guarantee what we do to prevent the loss
of that is we followup three days...

Jay: David's really good at this. David's got a really-he's got it down (unclear
06:24 track 4) go ahead.

Audience6: And within five months, within five months, so we're continually
making sure you're happy so that when it comes to the drop dead time we know
if you're unhappy or not, so I think (unclear 00:03 track 5) guarantees is what we
all would do is to not just throw it out there...

Jay: (Unclear 00:006 track 5) but also build the action co-efficient to make sure
that it works, it's true.

Mac: People in big...

Jay: (unclear 00:006 track 5) David, thanks a lot.

Mac: People in big purchase businesses where there's a lot of buyers remorse
engineer what's called post sale reassurance. Post sale reassurance. They give
a gift, some extra bonus, some package of enduring value beyond the product or
service delivered so that if there are questions about the product which-whether
it performed or whether expectations were not quite met, the whole experience
becomes satisfactory at least and it's something to think about in any
relationship.

Jay: That's really good. When we brought Christy,my wife a Jaguar convertible,
they gave her really hot Jaguar jacket. Porsche sent, when we got a Porsche,
they sent her something really neat. The Mercedes they send you stuff, I got
specialized cups and specialized really neat, like a sports bike, you take to
sporting events with Mercedes and my name on it. It's really impressive. I don't
want to get rid of that. No but, it's smart, it's smart, lot of avenues here, you
impact from this.

Audience7: Jay and Mac, about a month ago, just couple of days after I decided
to join this program, I made a website proposal to one of my perspective clients
and that's our business. We do creative websites. He was wanting a fairly
complex one with a pretty good size ecommerce back end. It was going to be
something where he's going to launching a new wine. It was kind of an
interesting project and I think we were very responsive on it from a marketing
stand point and pricing I think was quite good, but towards the end of the
presentation he said, “Well, you know this all looks good, but I don't really have
much experience in websites and I really don't know what they-how they should
be priced and so I'll think about it a little bit and get back to you” and at a
subsequent meeting a week later, he said, “Well, you know, we don't know
maybe there's something cheaper out there.” He was commoditizing the whole
process and there's an awful lot of people out there that indeed do-you can get a
website from any high school kid and if people don't discriminate between
something that's professionally done that has the marketing input and something
that's just thrown together, it's a tough market to be in. But nontheless, I was
figuring that if I could in someway engage the risk reversal process here, I might
very well be able to close him. So, I've been wrestling with that ever since, over
a month.

Mac: My guess is, it's not risk reversal you need there. It's an educational cell.
Why there's much more utility and value ultimately to you in your operation
although a high school kid could put together a basic website and you have to
say, differentiate and eliminate exactly the differences between the reliability,
the design and click through rates, all the parameters that might be important,
the utility, the scalability, all the factors that make a website substantial rather
than merely functional. So that's...

Jay: Only because I want to move a lot, but I agree with him.

Mac: Testimonials once again, but one of the things that situation calls for is ()
sit down in a business like that without asking “Is this Yamaha your first, am I
your first call?” because lot of times if sombodt says first call, say “Why don't
you go shop around first. I'm not the lowest price. If you're looking for the
lowest price, we do professional level work...”

Jay: And keep in mind you don't want to be everything to everybody. You've got
to be very clear on who you want and who you don't and like, we're very, we're
pretty clear about turning off if we don't want to be here.

Audience7: I understand that, that's a possibility. What I've wrestled with now
and I think is risk reduction is perhaps spelling out exactly every single step of
the process and how their interaction comes to play and give them some degree
of control.

Jay: Yeah that's good and you can also give them a bail option anytime during it,
you can say there's 12 steps and in any step you'll always be notified, you can
stop if you're not comfortable with.

Audience7: That's a good idea. Thank you.

Jay: Yeah, great.

Mac: Think about the business risk on that though.

Jay: Yeah. That's true, (unclear 04:43 track 5) yes.

Audience8: Yeah, over the past three days as I’ve been taking my copious
notes, I’ve been trying to apply the philosophies to different scenarios. I can't
really understand...

Jay: Are there uncopious notes?

(Audience laughs)

Jay: I'm sorry.

Audience8: So anyway, one of the scenario's would be if I had to apply for a job
right? Rather than to continue what I'm doing now, so I was trying to let's say in
a cover letter that instead of doing headlines and making bold claims, (unclear
05:09 track 5) cover letter, you have to do, be a little humble and you don't want
to come across as too obnoxious. so...

Jay: What's your question.

Audience8: ...I guess I was curious if you had, to apply some of the ideas you
were talking about and how you would apply to a jobs.

Jay: Yeah, but this is about guarantees. Is that what you're talking about, you're
talking about guarantees?

Audience8: Well, I mean, yeah, sure, guarantees, what the work is going to be.

Jay: I'll tell you what my son has done a lot of times. Brian has sat down and he
said, “I'd like-I think I'm very well suited not just through my experiences and my
knowledge, but my desire to add more value to the organization, but I don't
know, I’d like to first before I ever do anything, could I ride around for a week at
my expense with one of your sales people to see if it's the job what I think and
whether I think I can add value. Can I ask them questions?” I mean, he starts
with things that nobody else would have asked to do and it's an implied
guarantee. I will invest forward in you before I ask you to even consider, even
interview me if you like, but I'll give you-but here's why you should give me the
chance to examine so I can decide in an objective well reasonable way whether I
think make a big enough difference that you should even consider me as a
serious candidate.

Mac: Yeah, I've used the same approach with lots of people who have come to
me and said how do I get by this, (unclear 06:31 track 5) I've got great
credentials. I said, go in and say, look, you don't have to write it down, you say
“Look, I know you have lots of candidates for this job and I know that I may look
a little overqualified, under qualified, whatever, I said, let me make you a
proposition. You put me on for a week, I work for nothing for the week. I go
home Friday or Saturday or whatever when you close down and I don't come
back until you call me” and often they, there's lot of reasons why (unclear 07:02
track 5) can't take you up on that liability, that sort of thing, but the willingness
to show that you have stuff is a risk reversal in that kind of a situation.

Jay: See one of the greatest things you can do, you...
Audience8: (unclear 00:10 track 6) alternative.

Mac: Oh yeah, in a sense that's what Carl did. Yeah.

Jay: Yeah, sure.

Audience8: (unclear 00:15track 6) showed up.

Jay: A lot of times it's very preemptive, if you invest forward in somebody else,
it's like-we spend more on the pre-grounding materials for the home studies than
they paid us. It's a calculated risk, you know I could lose $100 on-over it, but it's
so outlandishly unprecedentedly wildly impressive don't you think?

Mac: Yeah, I mean, at some point you have to get used to this numbers game
and...

Jay: Yeah and you quantify and you test it and you understand the one thing
about all of this is you're not a drunken sailor. You're not profligate or
promiscuous with guarantees. You predicate them on one of three things.
History, empirical experience discounted very conservely so you know that
whatever you say if it happens, like us, when we do anything with anybody we
reserve 15% of the gross and we stick it in bank account and don't touch it and
we don't touch it for 30, 60, 90 day guarantee, we don't touch it for 120 days
because people aren't necessarily as bright enough to keep track counter wise
and there's a lot of elements where we just have to go with it. We always want
to know that our exposure is covered. We don't want to do something which if
we are wrong and people come back and hit the guarantee, we can't deliver or it
screws up our cash flow to where we're compromised. You shouldn't either, but if
you're going to try to get a job and you can take one or two or three or four or
five days and either apply yourself somewhere, spend-you'll get a cheap South
West ticket or spend days driving around with somebody or when I was young
and I wanted to do something I would ask if I could sit in their office and watch
and I said, “I’m not competitive, I want to see if I can be good for your business.
I would like to ask some questions at the end of the day or the end of the week”
you do things that are so evident that you've got more sense of contribution,
more sense of not-like, what you're going to do for me (unclear 02:25 track 6)
says, removing to a free agent world and he's right. But you know what the
great opportunity is there if you want to get a job? If everybody is saying “Hey I
can go anywhere I want,” you're saying, “Hey, I am looking to be able to build a
career. I'm looking not to see what you can do for me but where I can find
greater value, where I can grow to be invaluable, where I can build myself such a
presence that you can't help but promote and enrich me because I'm making
such a contribution above and beyond everybody else. I don't know if that's
possible. I am not asking for the job. I am not saying I'm even the right person,
I'm saying I feel like I understand what I think you might want and need better
than most people who would respond to any ad and I'd like the opportunity to
see if my beliefs are right before I even asked to be formally interviewed by you.”
That's pretty powerful isn't it? Aren't you glad that we recorded this?
Audience: Yes.

Jay: Yeah, I am too.

Audience8: Yeah, that's great

(Audience applaud)

Greg: My name is Greg (unclear 03:25 track 6) and I'm with (unclear 03:25 track
6) the background check company and I hope you'll forgive me and indulge me.
I'm going to back up to the first one that you all were talking about.

Mac: First?

Greg: There wasn't time for questions there.

Jay: On control?

Greg: Yeah and implementation.

Jay: Okay.

Mac: Oh, sure.

Greg: And the questions that I have in a very very small sales group that has
functioned very very well as a team and they do not have the benefit of this
seminar and you go back to that office with incredible ideas and a lot of things to
implement and salespeople by nature I think are natural leaders and there could
be a perceived threat from that and how would an individual manage a new idea
in a teaming environment where they don't think it's broke.

Mac: You'll have to sell it to them.

Greg: That's the first fold. I mean, the second fold is between the grounding
materials and volumes one, two and three, I think I've got more Jay Abraham
material than my body weight and that's quite a bit.

(Audience laughs)

Mac: Well you want a tactic if you've got resistant people, I'm going to give you
one. You go in and you say and they go, “How was the seminar?” and go “It was
great, but I guess we'll probably never do any of this stuff, you know. This place
is stuck in the mud.” and they go “What?” and you go (unclear 04:40 track 6)
bother you know (unclear 04:40 track 6) tell you, really you'll be wasting your
time.” They'll go “Oh really, tell me a little bit” and you go “Yeah, well...” I heard
this used in a very similar company to ours but they have a more go ahead
culture and you just...

(Audience applauds)

Mac: ...and you just make them want it a little bit. You have to make them want
it a little bit. If you try and push it down their throat, they're going to resist it.
Jay: Are you talking about the sales force?

Mac: He's talking about the sales force. You've got to make sales forces feel that
they're at a disadvantage.

Jay: (unclear 05:10 track 6) to make a lot more money...

Greg: Right.

Jay: And they wanted to work a lot less effort than you did. They wanted to have
people buying a lot more each time than I think we really want. I mean I would
use a lot of fun things like that but there's another way to do it and that is to, it's
almost like the (unclear 05:33 track 6) about a picture is worth a thousand
words. I think actions speak so much better than words. I think the mistake that
most people make coming back from this when the rest of their organization
hasn't been exposed is to try to shove it down their throats. There's three
options that you can do. Number one: you can and if you like, I would make
available at cost to you for your internal use either or there are two really neat
interviews people have done of me, Tony did a really great interview of me, if you
like Tony Robbins and his killer and I can tell you it's killer because I traded
$125,000 speaking fee for him spending 9 hours of his time which is worth about
(unclear 06:18 track 6), interviewing me took 9 hours of extraordinary
stimulating conversation and we paid somebody $10,000 who was the definitive
guy in audio production and editing to edit that down to seamless form. It's a
pretty killer tape, number one. Number two, the same guy (unclear 06:35 track
6) you can take that and say “Listen to this and see if this excites you.” It excites
about three quarters of the people. At the same time, you can figure out your
own hierarchy of opportunities figuring out what easy simple applications you
yourself can do within the confines of what you learn that'll have an absolute
visual dramatic, tangible impact so you don't have to say a damn thing. It's like
well you can say, “Guys, just do me a favor, try this-one of you try this this week
and one of you try that and let's just see what happens and report back.” Does
that make sense?

Mac: Here's another one, if you want. What you do, is you've got a crew of
salespeople. You take the lowest performer and you kind of take his aside. You
say, “You've got nothing to lose here pal”

(Audience laughs)

Jay: That's great, that's great.

Mac: “Why don't you work with me. You haven't made a sale in seven months
and why don't you work with me on some of these techniques. I want to try
them out. I don't want to give them to the rest of the guys.” You can go to the
high producer too, but if you can all of a sudden turn that guy into a competitor,
then you can get everybody to love it.

Jay: That makes (unclear 07:47 track 6).

Greg: There's four of us, total.

Jay: Who's got a sales force director directing this room. How many people? Not
very many. Who should have a sales force in this room? A lot of you should.
Okay, you really don't have a sales force any of them, Andy? That's amazing
isn't it? Andy did you see that. Did you see the show of hands?

Andy: Yes I did.

Jay: What does that tell you?

Andy: There's lot of work to be done.

Jay: Lot of work to be done, miles to go before you sleep. I got a great approach
for somebody who has a sales force but until we see that, maybe people just
have had sore elbows too and can't raise them. I got a killer approach for
somebody who's got enough salespeople that will just blow you away and I'll tell
you that maybe at the end of the day if time allows.

(unclear 08:34 track 6): I'd like to just locate the...

Jay: Nobody's got a sales force, it would be a waste.

(Unclear 08:37 track 6): wait, wait, wait, wait.

Jay: Pardon.

(Unclear 08:37 track 6): I had a, Jay, this side, the other piece, the materials, I
don't believe there's one page in here of all this stuff that doesn't have value, but
if I spend my time dedicated to digesting that, that's all I'll do for the next year.
So what would you recommend is the best approach, because I don't want to
miss one morsal, what would you recommend is the best approach to digest all
this stuff.

Jay: Three things. If I were you, did John do that-do his, are you here John? Does
that mean you're not or you just basically have laryngitis. Where's everybody
when you need them? They're supposed to be at the power panel if we were
going to do it.

Mac: You want to guess.

Jay: Let's guess. Where could they be, watching the game, recruiting clients, no
they couldn't be doing that, where could they be. Okay, here's a really cool
concept. Make a list of number one, make a list of all the things you do in your
business that your business is most depended on. Figure out, this is John's, I'm
appropriating his-either told you about it or it's on one of the things we do,
number one. You don't do it here, it's on tape, it's going to be on tape and you
write it down. Figure out the three most important things your business is paying
you to do, right after (unclear 00:50 track 7) on this other session we
transcribed, number one. Figure out the seven or eight key elements in the
doing all of those things and relatively speaking how well you perform or how
comfortable you are doing it and John's got a more benevolent criteria but I think
for lack of a better approach, rank it between you're brilliantly good at it or
you're almost imbecilic at it, okay. If you are anything below good at doing it,
find someone else to do internal or external and get the time and the negative
energy out of your system because going from terrible to lousy is pretty linear
and it's pretty incremental. Going from good or great to brilliant is geometric,
would you agree Mac.

Mac: Let me just give you another insight.

Jay: Okay go ahead.

Mac: I can't tell you over the last 12 or 13 years since Jay's been doing programs
that have evolved, how many people have come up to me at airports and that
sort of things saying “Hi, saw you at one of Jay's do's” and I go “How are you
doing and they go great.” They say, I say, “You putting any of it to work” and
they go, “Well I only did one thing, I really have to apologize, I only did one
thing” and I go “That's...well...” and they say, “But actually it made me several
million dollars and I'm on my way to the (unclear 02:25 track 7),” you know, I
mean, it happens all the time. People say that and they've done one or two
things apologizing but they did what they've wanted to do so maybe your
unconscious process is working a way at your top at your priority. I take Paul
Lambert's point of view about priority, I only have one priority which is the thing
on top of the list. Do your priority and work on your list.

Jay: But let me give you-I want to finish, because I wasn't done. So I'm freeing
up time.

Mac: Sorry.

Jay: No no, it's okay, I'm freeing up time, Mac and I will step on each other and
we'll maybe disagree, but that's okay. So apply it three ways. So your first way,
your freeing up all this time, I mean a lot of times, my neighbor, I have a beach
house in Capistrano beach and it's very nice and my neighbors are ten times
wealthier than I am and he's got a bunch of really neat neat restaurants up and
down the California coast and we were talking one day about how he really got
wealthy. He used to have one restaurant and he did everything and didn't make
much money, then he decided, he'd rather have people doing the stuff that was
80% as good as him so he could free himself 100% of the time to be more
strategic and implement and guide people. So now you've freed up a lot of time,
now you've freed up a lot of time. You figure out what I said before. There's a
very simple logic. You start by maximizing your current activities and then you
multiply that by bringing more and new revenue streams and marketing
approaches in, but the first thing you do is say, where are we now. Because
that's the easiest, fastest leverage. What are-what's the velocity critical, what's
the word, critical mass, right, in place, you've got stuff going on and you've got
things happening. You've got salespeople in the field, you've got ads (unclear
04:10 track 7) and you've got stuff going on, then look at those and ask yourself,
which one, not ones, which one, like parental principle, which one is the most
important of them all right now. Where's the 80-20, where's 80% of my business
coming from? The salespeople, the ads, the trade shows, the repeat business
and you start with where the most leverage is but you don't screw with most of
it. We have a thousand clients and we see most of the money come from a
repeat, you take maybe 100 of them and you test those and you can do anything
with the 900. If it's all coming from new sales and you've got seven salespeople
in the field. You take one or two of them, the weakest ones and you play with
them a little bit while you keep the others there. Does this help give you a little
bit of direction.

Audience9: What are you saying, use them as reference books?

Jay: Yeah.

Audience9: Look for what you need within the volume?

Jay: That's the first thing you do, all the thing-you go through it systematically, I
mean if Jay Abraham was in your life or not, you're doing this stuff. It makes
sense to do this everyday to get most out of it, doesn't it? The most current the
most residual, first you've got to figure out what it is. Then you've got to figure
out-then another thing is like, I can't remember because I did this section right
before this weekend for another group like the day before, that I’d go through
breaking the processes into sub processes for you. Did I explain an analogy like-
did I talk about Citadel, Citadel, is a good example. I went to Citadel which is a
radio chain. I did a deal with him and I had something like 40 salespeople in a
room and we were trying to analyze what they were already doing because, they
all-it was call coming from salespeople. I said, okay, let's break it down. But see
all the sub-processes we could improve and figure out what the most impactful
ones were. We realized it was-first of all, targeting good prospects. Then it was
contacting, approaching. Then it was securing an appointment, then it was
making a presentation, then it was following up with a proposal then it was
closing the proposal then it was adding to the proposal, then it was sustaining
the proposal, then other things that were very important were selling blends of
advertising, the good time and the bad and then it was selling against better,
more popular or better numbered or better performance media, then it was
selling specific industries, then it was selling very profitable promotions, then it
was selling certain-I mean it was all kinds of things. We figured up all out and
then we value ranked the most important current, does that make sense. It's
being pragmatic and we started with the one that had the most leverage. It's all
about leverage, I mean, truthfully that question is so self evident if you stand
back and you're pragmatic. Doesn't that make sense. I'm not trying to take you
to task. I look at a lot of things I don't understand, but I look at things and say
(unclear 06:48 track 7) and critical, but I say, doesn't that make sense, you don't
go and start coming up with wild new things to-you can't, I mean you've got this
stuff going on. You go to three trade shows a year, you send out 25 catalogs.
How many people in this room send brochures or catalogs to people that call and
request them or write and request them, raise your hands, stand up. Remaining
standing if with that catalog goes a true sales letter, remain standing if a great
sales letter goes with that catalog.

Audience: Does separately count?

Jay: You've got a catalog and a great sales letters, sales letters are much better
than catalog.

Mac: Sales letter on top of the catalog.

Jay: Sales letter and the catalog.

Audience: (unclear 07:34 track 7) separate letter.

Jay: No no, catalog with the sales letter with it. If you have a great sales letter
with that catalog. So I’m going to ask you to tell me what it is, so if you're
fooling us or yourself you're going to get nailed in a minute.

(Audience laughs)

Jay: Okay, so, truthfully, I'm not because I don't have time but you've got about
a third, let me tell you something.

Mac: You forgot his yard stick.

Jay: See I'm talking about what you're doing right now. So you're sending
catalogs out just by putting a sales letter with the catalog, that will usually
improve sales by 30 to 300%. Why, I’ve got to do my visual okay, because I
think this is so funny. Sending a catalog without a sales letter is like me going
into your office, sit down and, you're a busy executive, right and that's your desk
and walking in and worked so hard to get the appointment and so hard to know
that you were going to give me your time, and you walk in, and using these
(unclear 08:38 track 7) facial medicines...

(Audience laughs)

Jay: And there, there's you desk and I go, and then I go...

(Audience laughs)

Mac: Tell me about it. What are you bringing me, what's that on my desk?

(Audience laughs)

Mac: No, I don't want it, no what are you doing in my office?

Jay: Okay, all a catalog is-I was trying to show leverage points. All the catalog is
a summary of the benefits. The sales letter that accompanies that accompanies,
it makes the case, it compels them, takes them through the process, organizes.
This is one leverage point. And I probably, I haven’t done this for long, it's pretty
easy to maybe I'm making it harder for you guys. You've got stuff going on right
now whether Jay and
Jay Abraham Mastermind Marketing 32
Jay: You've got stuff going on right now whether Jay and Mac or (unclear 00:25)
or Allen Coleman or (unclear 00:30) who's ever in your life, first thing is figure
out what in the world it is in the macro, then break it down to all the sub
elements that have leverage and start where you are at, but figure out which one
or ones have more impact on you than anything else and going to be the easiest
and the fastest, the safest, the least expensive to impact, then when you realize
that, take a very small segment so if you are wrong, you don't screw yourself up.
That's about as clear as I can be, isn't it?

Mac: It's good.

Jay: Does that help?

Audience: Yes.

Jay: Okay.

Andy: Jay, can I add one piece? The manager has to have the conviction...

Jay: Get a mike, get a mike.

Mac: I hear you.

Jay: That mike one? Yeah, add anything Andy.

Andy: Is this one?

Jay: Do you disagree with me?

Andy: No, I want to add one piece.

Jay: Okay he's adding a very significant piece. That was fun.

Mac: Yeah.

Andy: Is this on?

Audience: Yes.

Andy: (unclear 01:25) change the manager has to have a conviction that's going
to work and you're going to have to expect resistance whether you educate him
or you reverse psychology them into it, either ways it's going to work, but you
have to have the conviction yourself that it's going to work and then you have to
have the fortitude to weather the storm. And if you don't have that, don't try to
implement it because it's going to be one more failure.

Audience: (unclear 01:50)

Andy: Yeah.
Mac: Do you mind if I take a little walk down memory lane. One of the stories I
most enjoyed about Jay in his early days when he was selling on the road, he
would sell to a lot of industrial companies and they often had a little anti-room
that you would come into and they'd have a little tiny bank like window with a
glass hole in it and you'd have to come in and talk to the receptionist and see
and if they like you they'd buzz you in and if they didn't, you either sat there
forever or just died there mummified...

(Audience laughs)

Mac: So Jay having selling industrial products was-came in and would sit there
for hours and he finally got fed up with that one day and he went out and had an
enormous, what, two by...

Jay: Two by three laminated...

Mac: Two by three laminated business card made up and he'd show up and
they'd go, “What company are you representing?” and he'd pull out the
enormous business card and he'd try to pass it through the window...

(Audience laughs)

Mac: And they'd go “Ah...it doesn't fit” and he goes, “Well maybe open the door”
and that was so...

(Audience laughs and applauds)

Jay: No, I did do that, you're right, I did it. It's true. Where were we?

Audience1: I'd like to locate the energy management guide that stood up
yesterday.

Jay: I'm sorry, I forgot. Is the energy management person here? The other
person who is selling energy management, if you are, or...

Audience1: Maybe he's the one that left.

Jay: Find him? Maybe he was the one...I don't know, I don't want to be cynical or
make any fun of anybody, it's not my nature.

(Audience laughs)

Audience2: Hi (unclear 03:35)

Mac: That's my job!

Audience2: Jay, when I started attending the protege I guess over a decade ago
I made, we're talking before risk reversal I said on the educational materials we
sell which go up to $10,000 usually around $2000 ticket, 100% money back
guarantee, no questions asked, lifetime. With Master charge visa, we had a
0.03% return rate. This year I started working with two promoters that have a 30
day money back guarantee with conditions. Our return rate has gone up 33
times that to 1%.

Mac: Yeah, sure.

Audience2: And if that doesn't prove the point, I don't know what does.

Jay: That's really powerful.

Mac: That's great. That's really impressive, awesome.

Audience2: Second point, when we talk about guarantees, guarantees get

executed on when people are dissatisfied. Dissatisfaction is the distance
between expectation and realization. If you're concerned about whether
somebody's going to send back a guaranteed product, then you either have to
make sure their expectations are more in line with reality or make sure that the
results they receive are more in line with what you sell. If you do either one of
those things or both those things, then you won't have to worry about your
guarantees.

Jay: Good, thank you.

Audience3: Hey Jay, I started off on the way up here to come up and to help out
the guy-who is the other web development guy, who had some problems with his
clients and actually if you want to come talk to me or find me later I've got five
phases of web development that can definitely help you with that client and
prequalifying them along the way. And then on the way up a, listening to all the
other speakers decided that well, I’ve changed what I wanted to ask and what I
specifically wanted to know from you is I want to grow my business, obviously
ten million and I want to start working with Fortune 500 companies, but I don't
know how to get in the door to those Fortune 500 companies and if you were to
represent, you and Mac represent a Fortune 500 company to me, and I'm doing
web development, I will assume this applies to just about any other service. How
do I get in the door? How do I get that in front of you besides getting to know
the gate keeper, etc, but how do I get that to happen?

Jay: Mac (unclear 05:42)

Mac: Now, you're talking about theoretically getting in For...what-where are you
located?

Audience3: Well, yeah.

Jay: What are you selling?

Mac: Where are you located?

Audience3: San Diego.

Mac: What kind of websites do you do?

Audience3: Full eCommerce, you know, everything, like I said, it's a services
industry but what I would like to know is what is the one way that I wouldn't
offend the Fortune 500 companies.

Mac: First of all, first thing you need to understand about Fortune 500 companies
is that they're not monolithic. They're made up of tens if not dozens if not
sometimes hundreds of divisions. So you start with an easier division than the
central division, because, they're just, they're another, they're basically a small
company working with the capital of a public company and they often make
unilateral decisions. So you pick off something that somebody who can talk to
you, who's probably being under served because all the hot money is going to
the big part of the corporation, that's one way to think about it.

Audience3: Right.

Mac: The other is to ally yourself with a house parasite relation-house

beneficiary relationship with somebody else who's already doing business with
them and have them walk into the door as Jay said with their arm around your
shoulder, say you know, if they're having problems with the site, helping them
(unclear 07:00) lot of times, people get into disputes with their web developer...

Jay: And I'd rather wait for that, for a different session.

Mac: Right, but if that's-people, one of the great things I learned from Jay is like
the lion is part of the strategy. Your optimum moment to sell anything is when
people are having trouble with their current operation and so you come in and
you take the throne out of the lion's paw and you've made a friend. If they're
having a dispute with their current web developer internal team, something’s
broken, that's your moment that you can come in and fix something and
establish a relationship even if it's something small (unclear 07:39) I'll give you
some direction on that.

Audience3: Could I ask one followup question on that?

Jay: Yeah, but you can't until everyone else has gone through.

Audience3: Okay.

Jay: Okay.

Audience3: Alright.

Audience4: I really came up here because I heard a fellow speak about the fact
that he had a problem with price, with people asking for, explaining that his price
was too high and maybe there was something cheaper. Our particular company
is in a narrow market where really there's only few people in the industry and
we're the recognized leaders world wide. We're also the highest priced. And so
price is the one thing that we battle with on a continuous basis and I have
developed an answer or an explanation and I simply ask the customer if I can
give them my explanation of expensive or inexpensive. An expensive is that
goods, service or item that no matter how cheap the price, fails to perform the
function for which it was purchased. For the moment it fails, it has become
horribly expensive. Inexpensive is that goods, service or article that performs
effectively, exactly and precisely what it was purchased for, for when it does
that, price is no longer a consideration

(Audience applauds)

Jay: Good.

Mac: One thing to ponder is that price leaders, if you want to call them that, the
lowest priced product in a marketplace is rarely the market category top product
or service. Usually it's a relatively high priced product like when you look at
consumer goods Tide and Crest and some of the others are actually category
leaders because their perception is value and reliability, not just price. If price
were the determinant, everybody would be driving KIA's. We used to say
(unclear 01:50 track 2)

Jay: I want to make an interrupted question. What's the theme of this whole
event? (unclear 02:00 track 2) it could be

Audience: Marketing.

Jay: Marketing? But what's it getting-it's getting the maximum upside, it's all
about getting leverage and we're using all kinds of thematic ways to
demonstrate the evidence to you so it'll be, it'll haunt you positively forever,
aren’t' we? So what's wrong with this picture in this room? What do you think is
wrong with the picture in this room Mac?

Audience: The lights.

Jay: Oh lights aren't on, so like in our brain. I wonder if there's a difference if the
lights go up. You think there will be Mac?

Audience: The lights are off the pictures.

Jay: Oh the lights are off the pictures?

Mac: The lights are off.

Jay: I didn't notice that. Did you you notice that?

Mac: The lights are...

Jay: Maybe we should turn the lights on and see if it makes a difference. Turn
the light switch, Rick, turn the lights on.

Mac: (laughs) Wow!

Jay: Amazing. Oh and it looks different doesn't it Mac?

Mac: It really does.

Jay: Think like life and marketing and possibilities maybe.

Mac: You mean shining a light on something?

Jay: I don't know.

(Audience laughs)

Jay: I don't know grasshopper.

Mac: You think that makes...

(Audience laughs)

Jay: Okay, next question.

Audience5: I wanted to share with everybody, especially the women here with
the testosterone free marketing in a way that there's a little bit-I have a
background in martial arts and I was in the army too myself and I have a way
that I incorporate that has helped and has helped me to really look at, not in a
combat format but maybe in a softer or so way, hard to approach marketing in a
way that's not going to be very, you know, using the words, war, (unclear 03:40
track 2) okay. So what it is is, you want to have, all of us, we don't have to really,
have to be conscious that we are unique human beings, whatever sector or
industry you are, you are unique so your product, your services, yourself should
come across your clients with self confidence because if you know your product,
you know the service, you know how you want to help your client, customer
reach their goals and better their lives or their business, then you should really
not have any blockage, whether it's competitive. Competition sometimes, it is a
technique that other corporations or other people can put in your (unclear 04:25
track 2) for you to lose focus in your company. In writing, for example, false
press releases of products or services that they're going to come out just to shift
you off balance, if you know martial arts, or anywhere (unclear 04:40 track 2)
opponent with self, with his own strength and so you want to really just keep
focusing on what your company is doing and what your values and missions in
your companies are and move along. Don't worry about the competition, you
know. We're all here to share in an immense universal intelligence that we can
tap and help embrace the world.

Jay: Alright, thanks.

Andre: My name is Andre. I live in Brazil. My question is if I sell knowledge, how

do you best apply risk reversal? Because, okay, once you sell the meat...

Jay: What kind of knowledge do you sell?

Andre: Some techniques could be for creativity, thinking, whatever.

Jay: Okay, so what's your fear? Somebody's going to steal them and not pay
you?

Andre: Yeah, basically what happens...

Jay: That you would deal with unethical people who are going to zap your brain
for all your worth and going to throw you in the gutter after they've had their
intellectual way with you?

(Audience laughs)

Andre: Basically it happens sometimes...

Jay: I'm having fun. Help me here. (Unclear 05:45 track 2) the evening. Start
again. So it's not a problem. Tell me who you sell it to and how you sell it.

Andre: Well I don't sell yet. I'm just...

Jay: Okay, what would you be selling and who would you be selling it to?

Andre: Business.

Jay: Okay, what is it? You've got to help us out here. What is it? It is what? Is it
a book, is it a seminar, is it a...

Andre: Seminars, seminars, seminars...

Jay: What is the seminar going to teach them to do?

Andre: Help improve their performance.

Jay: So, little clear please.

Andre: Help improve their performance.

Jay: In what areas?

Andre: Business.

Jay: Too general.

Andre: Personal, could be business, could be professional.

Jay: Can you prove it's going to help them? Can you quantify, have you used the
techniques you're going to sell in your own past endeavors?

Andre: No.

Jay: How do you know it's going to help them? Can you demonstrate to me, if I
were the hard nose (unclear 00:32 track 3) buyer that you're going to come to,
how in the world can you demonstrate and validate to me that your seminar
could and would and does in fact produce whatever productivity...what's the
minimum (unclear 00:43 track 3) going to get me?

Andre: From my experience and from the experience of other people.

Jay: Okay, so you can quantify it?

Andre: Yeah.
Jay: You can say, okay, I guarantee you within six months after you use this,
you're going to get at least to 20% greater productivity from every person you
put it through or...

Mac: If you follow, if you follow...

Jay: If you follow through, mutual. The answer to his question is mutual
performance.

Mac: it's right, it's right there.

Jay: There's no reason, there's no law that says you have to assume every piece
of risk without reasonably requesting that the client do the minimal acceptable,
measurable thinking and say, and if you don't do it when I prescribe and
recommend, they're reasonable, they're-you read to them in advance, I can't
possibly be held responsible because you've aberrated the dynamics.

Mac: But that's a, he means to say...

Andre: You have to make it (unclear 01:29 track 3)

Mac: You say the risk reversal and that if you make your ten calls a day, if you...

Jay: If you implement the system then I'll teach you over the next 90 days,
document it, make sure everyone you put the program forth does four little
incantations, does the five little this's and that's, I will absolutely guarantee a
minimum of 20% or whatever it is or I'll give you a great one, what we've done,
or pro-rate the difference up to 100%.

Mac: That's how you do it.

Andre: Thank you.

Jay: You're welcome. Two more and then we're going to unfortunately have to
stop because we're going to change the game. Hey Gill, do a lot of people come
up to you after John said, go see Gill.

Gill: Yes.

Jay: What did you tell them?

Gill: I said, it's good.

Jay: What's good?

Gill: The experience with John.

Jay: That wasn't what he was supposed to have them tell you about it. He was
supposed to not be self serving. He was supposed to be basically, having you
tell how you built your business.

Gill: That's what we talked about.

Jay: Okay, good. It was not supposed to be a self serving endeavor. How's
things going?

Gill: They're going very well and I do have a question on the risk reversal. About
15 years ago, (unclear 02:45 track 3) introduced to Jay and one of the things that
really grabbed me was the risk reversal. I call taking the risk off of the customer
and we retail high end ceiling fans and that's our only specialty. That's the only
thing we sell and we're in somewhat of a commodity, what we are is in a
commodity business and what happens is, it's become a core value. I've always
believed, in fact that becomes an interview question, many different ways when
we hire people how they feel about returning money to people when you know
it's their fault, when you know they have no real reason to return it. However
what's happening in the last two years is our return rate which has been running
about 2% to 4%, 2% to 3% now has jumped up to 5% to 7% and the other
phenomenon seems to be happening...

Jay: Yeah, what do you attribute that to? I can give you a couple of suggestions.

Gill: I'm really not sure, other than we've increased our business.

Jay: Well you have stretch passed, I mean, as I told you there is one
phenomenon, don't you agree Mac, the broader out you go, the more marginal
people there are and you don't all have the same attribute. We go in the outside
market and run ads, they are not going to have the same-if this whole room had
650 people who came from a regular ad, not from endorsements or my own list,
we wouldn't have-10 people left, we would have had probably 62, don't you
think?

Mac: Corollary is a totally different business if you're in the real estate rental
business, and you have zero vacancies, what it means, is your price is too low.

Jay: Yeah, you're not charging enough or you're not demanding a high enough
quality tenant and you're not allowing-you know, you're not being ruthless
enough when they don't pay on time.

Gill: Well one of the things that's happening is that, this is a phenomenon I've
just seen this summer is people are shopping after they purchase either at other
stores or on the internet, they go home and then they find the price and they
come back and either return the product because they bought it from
somewhere else...

Jay:Oh, they want you to reduce the price.

Gill: ...or they buy (unclear 04:50 track 3)

Mac: It's hard (unclear 04:52 track 3) trouble...

Jay: What's your belief on-if they want you to reduce the price, what do you
normally do?

Gill: We reduce the price.

Mac: But Gill, do they come to you and say before they pack the fan, take the
fan down and walk it in?

Gill: Sometimes they do this before they've installed the thing.

Mac: Before they have installed it.

Jay: How do they...well give us the scenario. So they take it home though?

Gill: Right, they'll say buy three, four, or five fans, they take it home and then
three or four days later or even a couple of weeks later they'll return it.

Mac: Why don't you just promise if they call you up, start bringing it in you'll
install it for nothing if they keep it?

Jay: How much the amount of money and say give us the average I mean, let's
look at-Mac's got a great point. Be creative, innovative in looking what they're
saying. How much money is normally involved in the adjustment?

Gill: It could be anywhere from $50 to $300-$400 depending on how many fans
they've got.

Jay: Okay, what does it cost to install?

Gill: That could run $100 to $200.

Mac: How much does it cost you? How much does it cost you?

Jay: But you say basically we'll give you $35 towards installation and let them
basically have an installation certificate they can use.

Mac: But you have installers don't you?

Gill: We contracted that.

Jay: What do you have to pay, somebody just said that they cost $50 to $150 or
$200 or $300?

Mac: His cost probably isn't that high. He probably has some 100% margin on it,
right?

Gill: No. Not in installation, we don't make any money.

Jay: Please pass this through.

Mac: Well there goes that.

Jay: What's the-so of 7% or whatever it is, are they representative of mostly as

almost 100% of those two categories? They either bring them back or they they
want to knock down the price?

Gill: Correct. Some of it is legitimate, but usually they all say things like, our
electrician says we couldn't use it and then we try to say well our electrician's
can install it for you...
Jay: And they'll say.

Gill: No. Then you know it's an excuse not and objection or they'll just say
can't...

Jay: That could mean one or two things.

Mac: Have you made a shift in your business. I remember back when you first
came, you did installation.

Gill: Did what?

Mac: You did installation.

Jay: I don't think he ever did it.

Gill: Well we did it, we used referrals.

Jay: (unclear 00:04 track 4) sub contract.

Mac: But you had more control over installation?

Gill: Probably.

Mac: Yeah, well maybe there's a...

Jay: I would think pre-framing might be really interesting, Mac, you know, you
might want to try pre-framing for some of the other services. You might say “Are
you going to install this yourself or are you going to need it installed?” And
they're going to say, “We're going to need it installed” and you might say “We've
got this service, why don't you let us go ahead and set it all up” and why don't
you right there and then confirm an installation date and put more ownness on
them so it's harder for them to get out of it. Say, “We've set it up, here's the
number,” you know and maybe set up-so there's like two things, they've got to
bring it back, they've got to cancel. That all of a sudden doubles the process
problem. Number two, you can say “Look, if you are going to install it yourself
we've got a full-time person. When you can install, we'll set up and appointment
and he'll walk you through it and set an appointment.” The more you commit
people, it's unethical, the more you commit them to confirm their purchase
obligation with a post purchase action, the harder it is normally for them to bail
out of them, don't you agree?

Mac: Yeah, that's good. I think that's...

Gill: But the phenomenon of the increase returns is not out of line.

Jay: I think we're done.

Mac: I'm sorry?

Gill: The phenomenon of the...

Jay: (unclear 01:14 track 4) industry is fine. So you just-but-so what's the
question? We were confused with the question.

Gill: If my sales are increasing this much and my returns are increasing this
much, that's still within the bounds of, because I do know I make extra sales
because of it.

Mac: Are you generally better off.

Jay: What's the question? I'm confused.

Gill: It seems like it's going too high.

Jay: Okay, here's what I said. That's a factor, that's an impact factor (unclear
00:04 track 4) your refunds, your broken sales, your unwinds, your returns. Try a
couple of different things and see if they make any difference. Have you tried
any other, have you tried positioning differently at the point of sale?

Gill: Yes.

Jay: And did it make any difference?

Gill: It's hard to tell because we sell so many and...

Jay: Well maybe you try it with a certain salesperson and see if his or her sales
unwind, and maybe just try for a certain week and see if those sales unwind, you
know for certain number of sales and see statistically, do something. I mean, it's
not a perfect world.

Mac: Maybe we should talk to Gill one-on-one and we could have two or three
other people...

Jay: Yeah we could. We're going to do you guys and then we're going to stop.

Audience6: I have one question I wanted to ask, I don't know how to ask it
tactfully but let me ask it anyway. If Dr Deming was instrumental in producing
the Japanese economic miracle in the 60s and 70s, can Jay Abraham trigger and
stage a marketing revolution in Japan in the 21st century?

Jay: You know, that's an interesting challenge. I'm really, you know, I don't think
anybody even yet and I've not held it back in your book. I actually gave you an
incredible process we're working on process improvement with salespeople and
I've shared it pretty openly with everybody Mac and almost nobody does it, you
know that? What do you think that means?

Mac: It's hard.

Jay: I don't think it's hard. I think they just don't...

(Audience laughs)

Jay: I don't think it's...

Mac: No, I mean, I think salespeople can be hard so-but your process works-we
have to make a commitment and I think that a lot of time, basically...

Jay: Yeah, but it would be fun to try. I don't know, is that where you're from? Are
you from Japan.

Audience6: Yes.

Jay: I would love to try, if you want to talk about it, you know, I would love to
embrace it. Couple of people have suggested that it would be a very appropriate
thing to try to teach to Japanese companies because they're not very mindful of
that and I would love the opportunity if you can facilitate it, I'd be very open.

Mac: Though the underlying problem is that sales forces, if it doesn't work, it's
because sales forces often hold their businesses captive and that people are
reluctant to rock the boat, so they're very resistant to change I don't know where
Andy is-and so because you don't have a parthenon of leads, generations and
other selling sources, the salespeople often hold the business hostage and so it
can be very difficult to implement-is that...Andy? Did you hear what I said?

Andy: True, it's so true.

Mac: That's well and that's why it can be hard. You have to make a commitment
to having multiple channels of income and that lets you control your overall
business better, not be held hostage to anyone one process.

Jay: Thanks.

Audience7: Hi, my name is (unclear 04:31 track 4). We sell two different
products. One is a high end distribution supply chain software that has a very
high or I should say long selling...

Jay: (unclear 04:40 track 4) price plan.

Audience7: In the mid-range where 150 up to about three quarters of a million.

Jay: What size business would buy it?

Audience7: 5 million up to 200 million.

Jay: Okay and what's the other product?

Audience7: The other product is a CRM product which is lower price point, but
we need to go to a shorter sales cycle.

Jay: Okay.

Audience7: What I'm trying to determine is we've never been able to provide a
money back guarantee because we can't control what they're going to do. In
other words, we can't control whether they're going to have the right people on
the task, whether they're going to give...

Jay: But you can establish sequential criteria at different intervals, can't you?
Audience7: Yes.

Mac: But maybe it isn't a money back guarantee that's the concern.

Jay: Maybe it's.

Mac: What's the equipment again?

Jay: One's a CRM and one's, what's the other...

Mac: CRM package or a system?

Audience7: CRM package.

Mac: You have to ask what's the major threshold concern that is raising a barrier
to commitment. If it isn't the money back guarantee, we talked about this at the
outset. It's not getting the money back for your product, it's not ruining their
business in the process.

Audience7: So if we provide risk reversal and we say we'll set it up, we'll give
you a try before you buy methodology, we'll take the risk and after 90 days...

Jay: There's another way to do risk reversal and that's...

Mac: And you'll restore their business, you'll put their old system back just like it
was...

Jay: What's the hard cost of doing it to you?

Audience7: We could try that out with the CRM.

Jay: And what's the hard cost?

Audience7: Maybe 10,000 to us.

Jay: And what's the upside if...

Audience7: It's huge.

Jay: So, and no one else would probably do that. Do many of your competitors
offer that?

Audience7: No.

Jay: If you're the only one to offer that and it's a quality ethical company with
established game rules and the rules say “Hey, are there any catch”-three simple
stipulations, I think you'll agree, they're all quite reasonable. Number one,
you've got to do census. Number two, you know, we've got to be able to
measure. Number three, we agree going in on what matrix or milestones or
benchmarks (unclear 01:05 track 5) as long as you've done your part based on a
simple agreement, hey it's out there and your money is back in your hand or
we'll put in an Escrow account and won't even draw on it.
Mac: Can I give you another way to look at this, risk reversal? A friend of mine is
in the heavy electrical contracting business. He went out to buy a new backhoe
and he looked at CAT product and what's the Japanese for it?

Audience: Komatsu

Mac: Komatsu, and he looked at a Komatsu and he went to Caterpillar and said,
“What's the service breakdown, parts replacement situation, guarantee deposits?
They said “Oh well, we'll have your any part in 24 hours and he said (unclear
01:50 track 5) you'll be there, you'll be back working 24 hours. He went to
Komatsu and he said “What's the parts and breakdown situation?” And he
said”What do you do when something breaks down?” He said “What's your
situation?” He said, “We don't know,” he says “What do you mean you don't
know?” He said, “We've never had a breakdown!”

(Audience laughs)

Mac: There are different levels of guarantee and risk reversal so think about
post-educating on the front end that it will work and the you're planning is so
impeccable that it will work without a hitch is more important and documenting
your process and it maybe more important than trying to sweep up the mess
afterwards.

Audience7: Real quickly. I've worked with a couple of companies about their
CRM and talked to them about it. The problem that we have talked to them and
the reluctance they have to change is actually the amount of time and effort it's
going to take to convert over to a new system and what happens if it doesn't
work because there isn't a link between one software and the other software, if it
doesn't work, what's going to happen is we're going to have to go through all the
pain to bring it back to the industrial system.

Jay: So Andy you probably have more than two answers for that don't you really,
or do you?

Andy: Not the conversion.

Jay: Not just conversions, but (unclear 03:15 track 5) too.

Mac: But the sales-overcoming that objection. Overcoming that objection.

Jay: Do you have a mike?

Mac: There's one right on this table.

Jay: On the table

Andy: Couldn't get it to work.

Mac: Well here's one.

Andy: Yeah, is this on? Okay, because I was thinking about that as I was
listening to this and it's funny, are you selling the software and installing it both?
Audience7: Yes.

Andy: Okay, because I find very few software companies who are willing to do
the risk reversal. Now, there's a reason for that, I think there's two reasons. The
excuse they give me is because accounting rules have been changed a year,
year and a half ago, there's a revenue recognition issue and they want to differ
the recognition of the revenue because everything's got to be in place and
accepted so that differs their cash for 90 days. Now if you're a public company
that's a problem; if you're private, that shouldn't be such an issue. So there's
other things you could do. You could agree to doing certain steps or you could
do what Jay always talks about is “Hey if we can show you how to increase your
revenues by x amount of dollars, for every dollar we give you, how much would
you give us back?” because for example, I've got a friend who sells for SAP and
she has a-one of her clients is a large drug store chain and she says, they've got
this stuff in place and that's CRM that they sell, they've got, the CRM is in place
and she says “What's killing me is they're not using it the way they could be
using it and if they were using it this way or this way or this, they would make
millions more.” So I don't know if that's given any ideas or not.

Audience7: We have the success stories. We have tangible results, we know

that we can help you make money, save money, increase the value of the
company, that has already been accomplished. What I'm trying to determine is if
there's a way-we've now gone browser based for CRM. What I’m trying to
determine is if there's a way for us to take the risk, let them try.

Jay: (Unclear 05:19 track 5) let me ask a silly question. Who's sales training do
you use right now? Who's trained you so that we know you're doing this right,
just so we're sure.

Audience7: Solution selling programs

Jay: Is that good. (unclear 05:32 track 5), I'm serious, is it good?

Audience7: I've been to Tony Robbins...

Andy: But, hold on a second, how many salespeople are on your team?

Audience7: 3

Andy: 3, okay, so you're all using the same methodology?

Audience7: Yes.

Andy: Really yes?

Audience7: I probably am more successful than a couple of the others, but

yeah.

Andy: Okay, let's say you use solution selling and you've got nine boxes, so if I
called your people in one at a time and I said, draw down on a piece of paper and
label the steps, they'd all give me the same answer?
Jay: And you monitor and you verify this too, correct?

Audience7: We do not monitor-we're not monitoring well.

Andy: Okay, so they're all doing their own thing.

Jay: And you're not really sure, when how...

Andy: I don't mean that as a bad...

Audience7: No no no, it's okay. That's why I'm here.

Jay: I mean a lot of times, just by doing a little forensic examination, you go,
“Oops!” And we're talking about leverage, it may not be the answer in totality
but if it gets you one more $150,000 transaction a quarter just to go back to the
basics or figure out what about all three or maybe that isn't the right one
anymore or maybe the person...

Audience7: I think I'm trying to leap. I'm trying to take the referral issue, the
risk reverse issue...

Jay: I know, we're just trying to say it's not a perfect world. We're sort of trying
to get at it and we're saying if we get you a 20% improvement, we don't get you
the 200 you want but we'll get you 7 other 20% improvements, we'll still get you
what you want.

Mac: Have you tried changing your rep, the rep on the account? (Unclear 06:54
track 5) team selling?

Jay: The rep and the (unclear 06:56 track 5)

Mac: Have you tried bringing in the president of your company?

Audience7: We do a male, female sell now which seems to work well.

Mac: That's what you're using?

Audience7: I'm still trying to make them faster and I'm trying to triple the
transactions for one person.

Mac: Okay, that's good.

Audience7: So, it's okay, I mean, we're on the right track. Thank you.

Jay: Only because we've got to get through. We're not going to abandon you
because we're here for all, but I got to get through some other stuff.

Audience7: Got it.

Mac: The biggest risk reversal you can do in a lot of selling these days,
especially business to business is bring in the CEO to close the sell, even
(unclear 07:26 track 5)

Jay: And here's my personal number...

Mac: He or she guarantees it. Their presence says the whole force of the
company is behind it. It's not just the salesmen talking.

Jay: This is not a joke, we've gotten a lot of business owners to put a special line
in their home, here's my personal number 24/7. You can turn it off and not
answer it, if you're gone you're out, I mean, serious, but it's a very comforting
thought. I mean, he's right, a lot of these things you can try and you've got to
test it because seemingly elegantly simple things can transform or turn the
tables...get quickly the last two.

Audience8: Yeah, the guy who didn't do anything this year and grew his
business, didn't always not do anything, if you want to call the Fortune 500
corporate yellow book, it's $300 a year. They update it quarterly and get the
phone numbers and call them and you can dummy up at the receptionist and say
“Oh, help me out!” because they will. My question though on a risk reversal, it's
a fixed cost, I send it to you but you're going to take my cell phone overseas and
you can spend a dollar or you could spend $50,000. if I say to you take this...

Jay: Do I get credit with you? Do I get credit with you? Unlimited?

Audience8: Well if I'm going to do a risk reversal and send you the phone and
say use it, try it and I won't charge you for a month, you could not use it at all.

Mac: But that's not...

Jay: No, but you could say use $100, what's your hard cost?

Audience8: $20.

Jay: Okay you can say use-and what's equivalent-$20 worth of cost translates to
how much usage?

Audience8: $50.

Jay: Okay.

Audience8: Well, I mean, that's the phone and the subscription (unclear 00:50
track 6)

Jay: Yeah, but you could say, “Go ahead, try use $50 worth. If it isn't everything
I say it is, send it back and you owe me nothing.” Does that help.

Audience8: Yes

Jay: You're welcome.

Audience9: I have a product that can be used promotionally and they can
personalize it and I'm wondering how to apply risk reversal.

Jay: What is it?

Audience9: They're inspirational affirmation cards.

Jay: How would they use it? What are the ways they would use it real quick?

Audience9: They would give it to customers, clients...

Jay: Or they would use it themselves?

Audience9: They would use it themselves. They would give it as...

Jay: So, here's the thing...

Audience9: Okay.

Jay: You've got to figure an outcome that's as measurable and translatable to

their desired results, no yours. You could say “Try 100 of these, give these to
100 people in your sales introductory or just to break the ice and say the
following and measure and if you don't see an improvement in, and you fill in the
blank, and the number of people who say yes, I'll let you talk to me or in the
number of sales you close in the size that you-whatever you want to say, I'll give
you back your money, try 10 or 20 or 30. what's it really cost you to sell 10 or 20
o 30?” What's the hard cost?

Audience9: Well if they're personalized?

Jay: Well generalize to start with.

Audience9: Oh well, like $3.

Jay: Okay so you try risking, if you find potential clients who could buy 300 of
them a week or month, it's a pretty little risk, isn't it. Does that help?

Audience9: Yeah, actually I was thinking about people who want a few thousand
or more.

Mac: You might, we might give it...

Jay: It doesn't matter, you let them start with a few...

Audience9: Let them start with a...

Mac: Given the nature of your product, you might want to have a satisfaction, a
soft warrant, a soft risk reversal on feelings, not quantitative that your morals
better, their communications improves and you...

Jay: Yeah like what people... yeah that right. Internally right. Your people are
getting along better there are less complaints, there's less downtime, there's less
sick days, but just figure what it is you want to translate it to and then if you're
worried about selling 3000 (unclear 02:50 track 6) back and say, why don't you
apply it to one department or to five drivers or to one sales force and don't be
afraid. A lot of us want the instant gratification but if you're-you need to know
whether your belief in your product and it's performance is real or surreal and
the best way to find is put it to the acid test. Let somebody test drive it around
the block in a limited test, testing is the greatest arena, I mean you can be a
marketing genius, you can always be the greatest sales achiever in the world if
you test-a lot of assumptions, don't discriminate, if it doesn't work then you know
that-maybe there's certain things you can absolutely guarantee that'll happen
and certain things that won't and unless you know it's certain, you may love your
cards but they may-great morale, no result. No (unclear 03:38 track 6)
improvement but greater sales (unclear 03:40 track 6) less sick day, I don't
know, you know? You know? Do you know what the impact is going to be in
different people?

Audience9: Somewhat.

Jay: But not totally?

Audience9: No, not...

Jay: Then why don't you use it as a beta test and take it out and do it. Let
people try 100 of them in our little application, say try one. Our offer's very
simple.

Audience9: Okay.

Jay: Try 100, here's the criteria, measure on this this and this, I like that. Okay,
thanks.

Audience9: Okay, come see me later. Alright.

Jay: Here's what we're going to do. We got Michelle or Rick around, come here, I
just need to know whether 9 is hard or soft on a time. Everybody who said they
found at least one way to make out really well on the internet or with email to
their company whether it's approach, whether it's a way of using it, but it's really
working and making a lot of difference or money for them, go to a mike. Now,
you've all rose earlier, remember I said we're going to do an exercise? Com on. I
said, anybody got at least one approach, figure out what the one approach is
that you've figured out that is really working like gangbusters, whether it's
making money or getting you-penetrating more markets or getting you more
prospects or cutting your transactional cost or getting greater connectivity with
your market or any of the above, pick out the one, not multiples, if you've got
multiples, the one biggest element because I promised you all you'd learn about
the internet quickly, we're going to do this really fast, take notes and share what
it is, how it works and what's the lesson for everyone else, okay?

Staff: Yeah.

Jay: Are you ready?

Staff: Yeah.

Jay: Okay, get your pens out, go!

Staff: Direct mail,you've got five to ten seconds to grab the attention of the
person who's on your side so you need a dramatic headline that addresses their
pain. And then with the least possible amount of linkage, they read all the way
down and click on order.

Jay: Okay.

Audience10: I offer lots of free information and services and updates and I
simply add a signature file at the end of my emails and that's all I do. The rest of
it is just simply non solicit...

Jay: So what should everybody do? Shut the door please. Carl can ask if the
people outside either come in or move it somewhere else?

Audience10: I'll say that again, because it sounds like some people didn't hear
it.

Jay: I'm sorry, go ahead please.

Audience10: I offer information basically updates, news, I have a newsletter

with about 2500 members, investors and I simply add a signature file at the end
of my email. I don't actually promote anything particular in the email, I might
give an update or information, but I won't actually be soliciting anything normally
and I actually had to close it-too many people were wanting to get in so I have
had no problem sending up to 100 emails a month and some people will email
me if I miss a couple of days and say “Where are you, we miss you.”

Jay: And what are your emails focused on?

Audience10: Simply updates on various investments or update on some news

issue.

Jay: So what's the lesson to everybody else?

Audience10: The lesson is give something free that let's you be your front
end...

Jay: That has value to the other...

Audience10: It has a lot of value, give something free that has a lot of value
and build a trust-a strong trust relationship with your people and add a signature
file that...

Jay: You all know what a signature file is?

Audience: No.

Jay: Would you explain a signature file?

Audience10: A signature file is simply some links like for example, mine would
say regards. Wayne Nash and some information (unclear 01:20 track 7)

Mac: And your contact and your company information...

Audience10: Contact, company information, yeah.

Mac: Your USP and probably a hot link to your site, right?

Audience10: Right, exactly. Actually some, I've got about five or six links now, I
have kind of a USP...

Mac: A mail to...

Audience10: ...and a link, USP, link, USP, link and then that's it.

Jay: Okay, good, thanks.

Audience11: We're seduction.com. You don't get laid, we don't get paid. What
we do is...

(Audience laughs)

Audience11: That's our guarantee. What we do is we go onto use net groups

that are devoted to these topics related to what we sell, we just post in the use
net groups and put our SIC file and the SIC file has the guarantee, you don't get
laid, we don't get paid and you drive a lot of traffic for free right to your site.

Jay: I'm not commenting...that's an impressive way of doing it.

(Audience laughs)

Audience12: I have a mortgage and real estate company. I've a website that I
drive traffic from a radio program that I air daily, generates a significant amount
of traffic. Now what I used to do is drive the traffic through the company url
which is advantage.com but when it was tough to save plus it was the company
name, so then I changed it, because I'm focusing on information, I have a
tremendous amount of information about free reports so was always driving
people to the website for free reports on this, talk about something specific and
an action item, driving them to the website, 150 pages of different reports on the
website, drives of 1500 unique visitors a day, it's just this regional market, a
million hits a month and drives about two and a half million in gross
commissions.

Jay: Great.

Audience13: (Unclear 03:18 track 7) with betterwebsite.com. I write a lot of

articles that I share with other easing publishers and other websites and at the
bottom of each of them instead of sending them back to a website, I'll always
send them to an auto responder.

Jay: And why do you do that?

Audience13: Because then you get their email and you know how that they got
there. So you offer more information and send them to a specific email that
triggers the auto responder.

Jay: Now have you built a big email list?

Audience13: Yes I have.

Jay: How big?

Audience13: Over 10,000 now.

Jay: Okay that's great, okay thanks.

Alec: Alec Thomas. Excuse me. pmgroup.com.

Jay: Someone shut the door please for me?

Alec: I know of 21-pmgroup.com, I know of 21 critical issues but I'm going to talk
about one that all of us can do and that is when you set up your email account, if
you have a domain or website, make sure you set up something that gives you a
catch all mailbox. What that does, it allows anything going to, in my case,
pmgroup.com, to get to a mailbox, my mailbox in particular and what happens
then is you can give out a different email address to every marketing piece that
you use so that you can track what is working. We do that and we know where
to spend our money.

Jay: Okay, thank you.

Curt: Curt Warner, mortgage market guide, we use a risk reversal on the front
end and a better than money back guarantee so and we also send free
information with promotions so we give them critical information for their
business, we give them, when they sign up, for $5.99 we give them $650 worth
of free material if they don't like it in 30 days, it hasn't made them 10 times what
an annual subscription costs, we give them their money back and they keep all
the materials.

Jay: Okay.

Audience14: Four quick things. If you have a website that is targeting

profession as mine does, make it, these are my experiences, make if feel like the
place that your visitors belong. I work with advertising agencies and radio
stations. When you go to my homepage danoday.com, if you're a radio person,
you'll hear a jingle, just land on it, you don't do anything and you'll hear in the
traditional jingle style danoday.com and if you're a radio person, that literally is
music to your ears and you feel like your home. Second thing, we try to show
our expertise in a subtle and fun way rather than proclaim ourselves as experts,
we will do it in a more subtle way so I specialize in radio advertising, you go to
our website, click on a bad commercial generator, we ask you three questions
about your product, your service and we will instantly write a bad commercial for
there by saving you the time and effort.

(Audience laughs)

Audience14: Now, in doing that, we hope that we're demonstrating that we

know what makes a good commercial and what makes a bad commercial, so
we're actually teaching with a fun tool. Third thing we do is every single page on
our site has a real easy to use, send this to a friend and we do not, if you click on
it, and we tell people we're not saving your address, we're not saving your
friend's address, right upfront, what happens is they're not sent the contents of
the page, they are sent a note that says “Hey, I saw this on Dan O Day's site, it's
really cool, click there to go,” because we want to drive traffic to the site and
finally every page on our website, we have an (unclear 02:04 track 8) within the
industry and every single page on the website tries to get people to sign up for
the (unclear 02:10 track 8) but it doesn't say sign up for Dan's need (unclear
02:12 track 8) it says free stuff from Dan O Day and we track all the click
throughs and a whole lot of people click on it and they they get the offer. That's
it.

Jay: Good, thank you.

John: John (unclear 02:25 track 8) software and again the principle of giving away
stuff for free, we create site search engine software and if you have the site for
less than 10,000 pages, you can go to our site, register for the software,
download the software and use it for free and if you have more than that, we
have more expensive versions of the software which people buy.

Jay: Thank you.

Audience15: The thing I want to say, it's critical to track everything you do
when you're doing stuff online. Every single part of your sales process because
otherwise you don't know what results you're getting, you know, we did
sponsored link on google, we brand six different ads and had a separate ad
tracker on each one and we had a really big thing that happened. We had, a guy
who was working wholesale connection I had with google, had suggested using
the word wholesale in there. He said, “You'll get a great click through with
wholesale.” Well yeah, we got great click through with wholesale but our visitor
value and our conversion rate was much lower with the word wholesale.

Mac: Then what, what was your alternative.

Audience15: We had, let's see, we had a bunch of different-we didn't just have
the word wholesale, we had like a whole different ad, we had six different ads we
did so we had ones that were focused on the product that it was original product
the Bob Barefoot (unclear 03:45 track 8) Coral Calcium and you know, bunch of
different things that we tested...

Mac: A lot of people who aren't familiar with web design might think, “How do
you do that, my god, how do you track us?”

Audience15: It's not hard.

Mac: It's not hard, if your web developer says “I don't know how to do that,”
what do you do?

Audience15: oneshoppingcart.com is...

Mac: Get a new one, right?

Audience15: I don't, I mean, this is not my company, this is just the software
that I use other things out there but oneshoppingcart.com has a software
package that has ad trackers affiliate program, all that stuff in it, it's...

Mac: You can track everything down to individual links. I mean and should and
see whether replacement, for instance, replacement high on a page or low on a
page draws better, one next to an internal copy or next to a graphic so you can
track every action that takes place that can be tracked.

Audience15: We had another time that it came in real handy too when we had
somebody that came to us and said, “Okay, we're going to give you-we've got
this tool that a million people have downloaded, have it on their browser and so
when they type in Coral Calcium you're going to own that, your page is going to
come up and they said that they would guarantee us a million hits over six
months. Well so we did an ad tracker on it and we got tons of click throughs, not
one sale. I knew what my visitor value was (unclear 05:00 track 8) I knew what
my conversion rate was so I could compare it. I called them up and I said, look,
something’s not right here, we haven't had any sales and I know what's going on
and I was empowered that information where I could get out of the contract.
What I found out they were doing is they were guaranteeing that with pop under
traffic which is nowhere near the quality of traffic is when somebody's typing in
the keyboard. I mean, it's two completely different worlds and you're not going
to have the kind of conversion rates, so you know, if I hadn't had the ad tracking,
I would have had no clue. You know, I would have still had my level of sales and I
wouldn't have known what's causing what, you know so it's critical to do that.

Mac: Thank you.

David: David (unclear 05:40 track 8). A couple of years ago, I was working with
a company that was selling a report was about 250 pages and it cost $20,000, it
was on eCommerce, so we put out a press release, we put it on the web and we
also send it out through PRNewswire or something like that and one of the
websites in the industry picked up on it and created a banner ad, so you could
click on the banner ad to go right to the press release and then you could read
the press release, but inside the press release, we embedded a pdf, so they
could click on some of the words in the release and so they could look at the pdf
and it opened up a 4 to 6 page pdf and that was the long copy selling for the
report and as a result just that press release we got a company in Germany and
somebody in New Hampshire to call to basically order the report with no
qualification whatsoever, I mean, they saw it, the long copy sold them.

Mac: For those of you who aren't aware of what a pdf means, a pdf is Adobe's
portable document format. It's a format where you can put a document on the
web and it will retain absolute formatting and it will print out on everybody's
computer the same way no matter what, and display the same way no matter
what. That is not true with regular html web pages which are browser dependent
and are coded and resynthesized every time. So if you only want to hold a
document to presentation value, you use pdf, I just want to clarify that. Who's
up?
Gene: I'm Gene Wells. I'm nervous (laughs), heart's pounding. Gene Wells, I
have a site, it's worshipguitarclass.com and...

Mac: I'm sorry, what's your...

Gene: It's worshipguitarclass.com.

Mac: Oh, right, right.

Gene: And I was going to share, just do what your passion is. I'm a worship
leader, I love teaching, I love worship and I have newsletters and if I don't send it
out like (unclear 07:46 track 8) said you can't sell with newsletters, you can, if I
don't send it out, I start getting emails like, “Am I off the list?”

Mac: She's also a good natural copyrighter, in case anybody wants to know.

Gene: Yeah and so it's real precious. Now my videos are in 17 countries.
They're using them to teach in over 100 churches including UK, New Zealand and
Australia, Canada, but so I have like I think it was Don that said he has on every
page, you can join the newsletter. So I have that and then also an exit pop up
and I find that about half of my people join from the exit pop up.

Audience: (Unclear 00:08 track 9)

Gene: What's it? I'm making money. This is the best year in my life.

Mac: Good for you.

Audience16: Good evening everybody. I can imagine that you're all a bit tired,
but what I'm about to share with you is so powerful, you really want to write this
down. It's very important...

Mac: (Unclear 00:30 track 9) under your eyelids, right?

Audience16: that we ask the customer what they want. So we do a survey on

the website. If you leave our website, there will be a pop on the screen which
will have the survey. The headline is reward and the reward is an ebook that we
have written ourselves that has tips of how to create more traffic to your website
without big investments. So it's really valuable, it has a lot of value. People
want to have that, so the only thing they have to do is fill out the survey, fill out
some questions and we gather their email address and their name because we
have to send the ebook, so that's one way to make sure that the email address is
correct. But this is only the start of the whole thing because when we ask the
questions we know exactly what they want, what the reasons are, why they don't
buy at this moment. We ask them when do you plan on buying and most people
plan on making the decision to buy around one month after they visit the website
so that was a real eye opener for us. So what we do then is we-for every, let me
read this, I say it correctly. They have reasons why they don't buy so we
eliminate the objections of every single answer and we write a little paragraph
just to eliminate every problem they have, so what we do then is we send out
personalized email with the paragraphs which apply to that person and we send
it to them and we can have like 30 emails following up...

Mac: Is that a program function, I mean does the...

Audience16: It's all fully automated.

Mac: Yeah. So they get a customized report depending on which selections they
make.

Audience16: The power is in this that you get to eliminate their objections, to
all the different answers they gave, personalized, but fully automated and that's
very powerful and so you not only gather all the email addresses, but you can
really help them. Very powerful, we just implemented this one month ago so
we're not, I don't have concrete results but a lot of people fill out the thing.

Mac: Well, thank you. We have, we're trying to get out of...

Audience: What's the website?

Mac: What's the website?

Audience16: Website is alphamege.biz.

Mac: Walk it through letter by letter.

Audience16: alphamege.biz.

Mac: dot what, biz?

Audience16: biz.

Mac: .biz, okay.

Audience16: Yeah, thank you. biz. alphamege. Sorry, I'm sorry.

Mac: Okay, thanks. We really have to...

Jay: We not going to probably get all of you (unclear 04:05 track 9)

Mac: because we want to get you to dinner.

Jay: ...you won't eat and because of tonight there will be more, I'm sorry, excuse
me, pardon me, wait one second. You know what we'll do, why don't we stop
right here and we'll pick it up when we come back, is that okay, but don't leave
yet. I've got to set you up for the next part. That's pretty good isn't it? Hold on
one second, there's shippers outside somewhere I lost the note, oh here it is.
The shippers will be available at the registration table throughout evening so
when you're staying late, if you need him to ship stuff, we're going to take a one
hour dinner, tape? I don't know what they've got, I don't know, I’m sorry I
should, but just go check it out. And also ship it home for you, if you want.

Audience: Are they providing the boxes?

Jay: I don't know.

Staff: Yes.

Jay: Yes. They are, I should have known, I was testing my staff and they passed.

(Audience laughs)

Jay: Here's what we're going to do when you come back. We're going to-are we
going to be ready, after lunch we're going to have the The Abraham Marketing
Ets started so our digesting gets going and they're going to be cool, right.
They're going to be cool, the guys are going to be sexy and the girls are really
going to be good, right? Okay, is it going to be equally represented by both
genders?

Jay: Okay, you know, did you get really, did you get tight sweaters for the men,
okay. So, we're going to do that and then I'm going to do a flip, we're going to
stop this and we're going to do industry focus. We're going to put you in groups
by industry and you're going to go around the tables, wait, wait, wait, you're
going to go around the tables by industry and you're going to list number one,
the most important current approach or method or strategy your business has
been using to generate maximum success or sale. Number two, the biggest
breakthrough you got from this and number three, the biggest lesson you would
give other people in a related industry, we're going to vote about it. Then we're
going to get the winners the respective tables because a lot of it is going to cross
pollinate, okay? So you guys, you need energy and you'll see me, and I
apologize, I'll get frustrated with my staff and with people out in the hall, I look at
this as a marathon and it's very admirable that you ran it. It's sort of nice that
you were in three quarters of it, but doesn't it feel exhilarating to finish it. So if
you're out in the hall, understand this and it's not meant to be, but this is how I
am, I'm mindful of who's there and when they come up with a problem, if they
weren't here to give contribution support and listened to the others, I tend to be,
unfortunately, but very very democratically far less empathic to you. So do
whatever you want, stay outside, do whatever you want, doesn't matter to me,
but don't be upset if when you come in, if you've been out there for an hour and
you want something from me and I say next, because I'm very very aware. This
is like the last mile and this is the marathon and we're all one for all and all for
one and if it unwinds in the 11th hour and we can't go the distance, then I don't
think you have a lot of probability of doing very much when you go home. That's
just my feeling so for whatever it's worth, if it's nasty, I apologize, but I want to
go the distance with you, if you don't want, I can go home right now because my
family is waiting, but help me here, we've got a little further to go and it'll be
really glorious, if you want to, do you want to?

Audience: Yeah!

(Audience applauds)

Jay: Okay, then help me, put some music, wait wait, no, I didn't know that, but
don't get mad. (unclear 07:44 track 9) Rick.
Mac: As you were.

Jay: Did you have coffee today, how many cups of caffeine did you have? You
get this? Okay, what's your message, we have a message. Don't leave quite yet
please.

Staff: (unclear 08:00 track 9) party or the first 25 people who signed up...

Jay: It's at four in the morning.

Staff: It's at four in the morning, excuse me, it's after, directly after the event. It
is not during dinner.

Jay: Yeah, okay, now, one other thing about it, if you have to leave and you're
not able to be there, I'm sorry it's the only time we could schedule it to get you
what we wanted. I will deal with each of you privately for one question by phone
or you can, if you're in the neighborhood, but we'll make sure that you won't get
anything but a superior outcome, whatever. Number two...

Staff: Plus the 25 people who register, plus (unclear 08:35 track 9) people in the
ballet room and it's after the seminar.

Jay: Whenever the seminar is over and if you guys are too tired, you have to
catch a plane...

Staff: It's located just past the restaurant, but before, the outside door's on the
left. Some people have...okay this is important. You guys all know the value of
the notes right?

Audience: Yes.

Staff: Some people have misplaced their binders so check the ones you have
because you may not have your binder, you may have somebody else's. I know
of at least three different people, one of them named Ronald Conner, I believe
his name is and he has lost his notes from the entire weekend.

Jay: We found it, oh great, that's good. Good for the...anything else?

Staff: Also, there are also items in our lost and found, so you may want to check
your own stuff or check the lost and found. And all the speakers if you could just
check with me after the event, there's a get together afterwards...

Jay: For the speakers that are here.

Staff: For the speakers only. Yeah. See you in the room.

Jay: And then Will if you're around and you want to come up to my room, that
would be great and all of you, I am, we're here for you, Mac, I, Rick, all the
speakers that are here for the duration if you're here for yourselves, are you?
Okay, get energized, get ready for a great performance.
Jay: Breakthroughs right and that's been really neat, hasn't it? Yes, and he
talked about breakthroughs and what was the other thing? Obstacles, correct?
Now I want to change the game for a few minutes until the Marketing Ets are
ready to perform.

Mac: And the most common and prominent problem in their services.

Jay: But I've got a whole new game. That's done, we're doing that game. Listen
to him. So now, we're going to make it simpler and more powerful. Each one of
you, no, but that's good. But now we're going to do something so elegant it's
going to go (unclear 02:04 track 10). Each one of you is in a business that is
similar relatively speaking to the rest of them, right. You are either start up, but
you're having somebody where you're successful, you're very successful, right.
You have clients and prospects, right. You sell product or services, whatever,
right, but you do it uniquely and differently. If there are 1, 2, 3, 4, 5, 6, 7, 8, 9,
10, are you with this group or are you just, okay 11, I will promise you there are
at least seven different modes of generating them at this table and that most of
you don't even comprehend it yet and even though you've been exposed to it, so
you've got until the Marketing Ets are ready to perform to go around the room
and now forget about your breakthrough, forget about your (unclear 01:18 track
10) here is the one major way we drive our business and here's how you should,
could, must use what we've learned, if you want to apply it as one of your pillars.
Okay and watch what happens. Do it now.

Jay: I've got a question. I've got a question. I want to see a relative vote. Who
got...losing my voice...who got more out of the first exercise over the second,
raise your hands. Who got more out of what you did first, what I just had you do,
raise your hand. Okay. Who got more out of the last one? What do you think
that means? Who got an idea of the last one they can absolutely take to the
bank? Okay, who would like to play a little bit more of that game? What is it? Is
it...no, that isn't really. Oh god, you scared me, that's funny, oh god. Okay we're
going to play a piece of music to get our minds going for about two minutes and
then we'll play a little more of this, okay? Play some music.

Jay: My god you scared me, you just trying to blow my mind. This is the mood.

(Audience applauds)

Jay: What an impressive performance. Are we going to change the game? We're
going to change the game. Sit down for a minute, we're going to change the
game. That's fabulous, you guys are hot.

(Audience applauds)

Jay: You guys are hot. Okay, excuse me, somebody bring me back my, write
down Albert all the songs on that so I know there's one more I want to hear, I
can't remember it, on that one, just you played, for me. The one you just did
that had, who's got it? Rick?

Rick: What?
Jay: Take it back one more time, I want to know what's on it, there's one more I
want to play, I can't remember, it's 12, I want to hear one. Okay I want you now
for a minute, everyone at the table, think about what one breakthrough you got
by listening to everybody that's most universal and then I want you to take your
water glass and move to different tables and spread out now to different tables
okay and I want you to share with each other, the one biggest breakthrough you
got out of those two elements that you think would be most universally
applicable to anybody's business. Okay, you're with me, am I too confusing?

Audience: Yeah.

Jay: Okay you want me to do it again, explain it easier. Okay, so get your water
because I don't have time to have them change it, leave the thing, go move to a
different table where there's not people from this group, share with that group,
try not to be with the same group, share the one biggest insight from the two
things that you think are universally applicable to any business.

Jay: Who is it? Who is it? Was it a man? Now, is it weird? Is it weird I mean, I'm
not going to do weird things am I? Pardon.

Random Speaker: (Unclear 00:12 track 13)

Jay: Can you get the fluid and the blood flowing in my brain?

Random Speaker: And back out.

Jay: And back out?

Random Speaker: Yes.

Jay: I'm not going to go schizoid or anything else am I? I'm such perverted
person I kept thinking about the orgasmatron from Woody Allen's... you
remember that?

Random Speaker: Sleeper.

Jay: Should I put a screen in front of me so that no one sees what happens.
What should I do?

Random Speaker: Go behind the curtain.

Jay: Am I going to be pleased with the outcome, am I going to have mental

acuity on those of mortal men? Can I see through clothes? I'm looking for some
benefits here, sell me on the benefits. Sell me on the benefits. Sell me, sell me,
sell me.

Random Speaker: Did (unclear 01:01 track 13) think you're going to have the
adventure of your life?

Jay: I'm sorry, going to...

Random Speaker: Price your life (unclear 01:06 track 13) machine?
Jay: I'll raise it up. How long will I have? Will I be up all night? I want to party
after this. We're going to go to those all night after hours clubs, all of us. Rick
has got, how many buses have you got?

Random Speaker: Jay.

Jay: Yes?

Random Speaker: If I shall tell you what to do, you need to be quite.

(Audience laughs and applauds)

Jay: Now?

Random Speaker: Yes, yes. I'm going to expand your DNA code and correct it
back to normal state.

Jay: Can I ask you a very complicated question, a conflicting, a conundrum? I

have a conundrum. Can you do that to me while something very intense is going
on in the rest of the room?

Random Speaker: Yes I can.

Jay: It's something loud and intense.

Random Speaker: Yes

Jay: Okay, then I will throw caution to the wind. I will take my shoes off and
make myself totally vulnerable, but this will be my first time so you'll be gentle,
won't you?

(Audience laughs)

Random Speaker: I'm going to (unclear 02:15 track 13).

Jay: What am I going to do? Should I trust her Michael? What do you think?
Okay, so this, where do you live?

Random Speaker: What?

Jay: You live in Los Angeles?

Random Speaker: No I live in Montana.

Jay: It would be much better if you lived in Los Angeles, because if you keep
doing this, it's good everyday. Okay, alright, we're going to, we're going to do an
experiment, while we're doing this, Rick has something else that's going to go on
for everybody else, right Rick.

Rick: It's a bit of an event.

Jay: So, I'm going to sit here, am I going to sit down and do it, how am I going to
do it? Where am I going to do it? Okay I'll do whatever you say, but Rick will
take over while you're doing this. We have a special something.
Rick: Yeah, this is the world premiere of a song that was generated by a very
famous artist, you've probably, you've heard of him livin la vida loca, right? Well
(unclear 03:18 track 13) also recorded another song. Would you play it? Could
you play it? Would you play it loud

Jay: Do I leave my sock on? Okay, alright. You're interesting, thank you for doing
this. I'm going to be excited, okay. By taking them off? Okay. Might be dirt on
the bottom. Okay. The dirt if from the sock, it's not my feet. Turn it a little
higher so I can hear it.

Jay Abraham Mastermind Marketing 33

Jay: You're used to one foot or do you do two? Okay, can we switch the other
now or only

Random speaker: No

Jay: No?

Random speaker: (Unclear 00:05)

Jay: Okay, I'm going to have to do my thing around you. Okay. So when we last
left, that's okay, keep doing it, when we last left our exercises, what were we
doing? Did you guys go around your table yet

Audience: Yes

Jay: Okay, now here's the deal. Do it again. Mix one more, you had an insight;
did you guys get insights? My voice is going. Did you get insight from that?

Audience: No

Jay: Okay, I want you to go, no, change it, I want you to ask me a question.
We're going to take questions now. Each of you write down the biggest single
unanswered question, unclear, let's say, issue in your mind, biggest problem
you're still struggling with and I'll randomly, and then I want you to then be able
to present it to your table, hear me out, if you're talking, then you won't do this
and I'm not going to repeat it. I mean, I know you can hear me so I'll say it one
time and if you didn't hear it, you'll have to ask somebody else because I'm
losing my voice. You're going to write down either or your biggest, you're just
going to have only one of them, but you can put three and choose one. Your
biggest unanswered question, the biggest unresolved issue in your mind, your
biggest uncertainty about some element of what we're all about. Take one of
them and present it around the table. The table then chooses the one whatever
it is, that is the most universal and the one whatever it is, that is the most
unique. You'll then go to the mikes at intervals because we'll have too many and
you'll pose them and I will answer them and is Mac here, and Mac will help me.
Okay? Does that work? You get it or not? Am I confusing you or are you clear?
You want me to do it one more time even though I said I wouldn't? Okay then do
it right now and be ready to send delegates in about ten minutes.
Jay: I know, it's hard. Are you almost done? Okay, two minutes, alright. I want
to get this. Alright here's what we're going to do. We are going to take about 20
representatives from what we just did and we will answer them. We are going to
put you on the honor system to try to answer some of them yourself when we're
done with the next element. After we've answered them, we will then show you
how to build your strategy and your action plan and then we'll tie it all up and it
should be about probably with luck, about 2 o'clock, we'll be done. Yes, serious.
And then you should be stimulated enough that you probably won't sleep. Well
see your doing this to me, I'm probably going to have to fear what to do from two
until about you know, 12 o'clock on Saturday because I probably won't sleep.
The things I do for you, is it going to give me energy? Am I going to be able to
sleep when I want to, yeah but not probably for a while. I can go for a walk
around the block a million times. Yeah, if I want to. Don't do it yet or it'll defeat
my purpose. Okay good, that'll be great when we're done. That'll be great when
you're done, not right now. Now your energizing me right? Okay. Thank you.

Random speaker: (Unclear 01:40 track 3)

Jay: I would love to after, it would be very interesting.

Random speaker: (Unclear 01:45 track 3)

Jay: Okay, okay, good. Okay, Rick, Rick, I'm sorry, is Rick here? Rick, where is
he? Hey Rick, you're done? Okay, thank you. Your gracious. Thank you so
much and I'll tell you when I go to sleep. Okay thanks. Hey Rick, where are you?
I don't feel tired. I'm always pretty energized. I'm sure I probably am, I’ve had
foot massages in my meridian stimulated before so I believe in it. The negative
is, as she said she can put to sleep, then you're energized for a long period of
time, but I'm not feel bad. I need energy for about an hour and a half more and
then I'll be able to let you on your way to wherever you like to go.

Jay: Okay, here's what we're going to do. Okay, everybody, okay, I want about
first couple of tables across keep sending-if you have a universal and unique one,
send them until we have no more than-use the honor system, ten at both sides.
I'm going to see how fast it goes. If it goes really fast, we'll do some more, if it
doesn't I will leave you on the honor system because I want basically to get into
the strategy and the action plan okay? And then time allowing, I’ll tell you, 8 or
10 people asked me about the strategy session we're doing in March or April, I'll
tell you about it, but not until we're done.

Random speaker: (Unclear 03:30 track 3)

Jay: My feet feel pretty good, I'm feeling, the bottom is still great. I'm very
aware of my senses and I'm feeling good. I don't yet feel like exhilarated, does it
take a minute or two? But I feel pretty good. Pardon, what? I'm feeling pretty
good. Pretty good, we'll see how my mind and my mouth work in a minute.
Hopefully I'll be agile minded and extremely focused. Okay, everyone, go to the
mikes, but no more than 10 at a time. Okay, Mac, we need you. We need you.
Okay, are you ready? We are going to answer questions, are you ready? Mac,
you ready, would you sit down. Okay. Sir?

Audience: Yes, we talked about words or power...

Jay: A little louder please, you talked about?

Audience: We talked about words or power and using different auditory visual
kinesthetic words in your approach to selling to customers, clients, excuse me,
and I was wondering it wasn't talked about, is there a fundamental difference
when you're talking to either gender where you would want to use different kinds
of words for female, different kinds of words for a male, wasn't talked about
much at all.

Jay: I don't consciously see myself really being gender, what's the word we call,
gender

Audience: Specific?

Jay: Specific, but Mac, what do you think? I don't really think so, but maybe you
do. Is your mike on? Is your mike on?

Audience: Your mike isn't on.

Jay: I think it's off. Yeah, I think empathy is empathy is empathy and I think
frankly, if you envision, remember what-and listen to that strategy of
preeminence. We promised we would get it cleaned up and put it on the
website. We will, the actual notes and you've got a short version of it that was in
the book, right? I gave that to you and you should know, one of the groups-
Tanya (unclear 05:29 track 3) assistant stayed up all night at Kinkos because I
just gave them requests and they'd just go out and do it. (Unclear 05:32 track 3)
everything. So, read it, it'll be helpful for you but I think when you get that really
instilled and installed in your mind and you're really aware of what you're doing,
it'll come naturally. When I read the (unclear 05:48 track 3) from the longer
notes, I said that the vision is that you're in their lives, or in their homes, in their
offices, in their-your product is in there (unclear 05:55 track 3) order in there,
their office or building or whatever, working, helping them and adding value and
you just start thinking in those terms, your subconscious will almost
automatically help you create what you should-but I don't think I consciously
even deal with gender. I think everybody is one genderless sort of human being,
but that may be wrong Mac, what do you think?

Matt: No, I don't think you do. I think you do what works and if people-you
wouldn't normally use an expression like rip off the competition's head. But if
you hear somebody say it to him and other people start going, “Yeah, he'll try it”
because he (unclear 06:35 track 3) kind of martian approach to these things, you
know. I don't know what these people...

Jay: But it's a great question, that's a great question and I would think, I don't do
a lot of, well actually I have, I've done stuff to women and I guess you probably...
(Audience laughs)

Jay: You guys, you have a nasty mind. I'm the purest and I'm embarrassed, I'm
humiliated.

Matt: Cut off.

Jay: The, I think if you just-if you envision the person, again, one thing I would
say, Mac probably said it in his clinic if you didn't stay up for it (unclear 07:15
track 3) heard on tape and that is that basically your writing not to 100,000
different people, in different genders, ages, ethnicities, you're writing to one
person at a time and if you're selling a product that very much is gender specific,
then you merce yourself empathically and respectfully and try to say, what's that
woman-if it's a woman? What's that woman thinking? What's her hope, what's
her dream, what's her problem, what is she thinking, what is she frustrated with,
what is she trying to put in words, what is it that she really wants, what is it that
she needs. What is it she does for that right now if anything, and if you start
asking good questions, the answer is almost automatically...

Matt: I've worked with Jay's copy a lot and I have to say, I've worked with a lot of
other people's copy, try to tune it and that sort of a thing too and sometimes
that's a concern. I've never felt it was a concern with-I mean, he seems to want
to universalize it and that's-he intuitively takes that approach. It isn't any-he
doesn't really write to men or women. There are more men in the audience he
tends to market to but that's a natural phenomenon. It isn't a male approach. If
most entrepreneurs relate to business as a war, then that's what you sell them. I
mean, if that's what gets them in the door, he's really been around some lot of
other concepts...

Jay: (Unclear 08:40) sounds good to me.

Audience: Thank you.

Matt: There's addictum which you kind of-you sell them what they want and you
give them what they need and that's not cynical, it means that the people don't
even know what they want and they think they want certain things that are
patterned but they really need something else and what you need is a funny
thing in that particular direction. Jay doesn't give people exactly what they want
or what they bought often. He gives them what he thinks, what he believes fully
that they need and so he'll use an appeal that appeals to maybe not to the
highest instincts but we've had people cry in these programs, come to their
knees crying with spiritual experience.

Jay: We weren't trying to screw with them (unclear 09:26 track 3).

Matt: It just happened. We've had a room full of people this size and...

Jay: They came for pure averse. They wanted to make money...

Matt: They thought they did.

Jay: And we tried to show them you can't make money until you first add...

Matt: Without service, without service.

Jay: ...contribution and we showed them that manipulative stuff isn't really the
answer although you can make service based communication but...

Matt: Anybody from the protege is here?

Jay: Anybody here from the protege training program, the old ones, the old ones,
the old ones. The ones we did in 89 and 90

Matt: They can tell these were the most emotional liberating spirits, (unclear
10:00 track 3) have to worry about money...

Jay: (Unclear 10:00 track 3) paying millions of dollars if we would have said
“We're going to teach you to follow up with your clients, we're going to teach you
to slow down and (unclear 10:06 track 3)

Matt: To liberate yourself from material from material wants.

Jay: Be opposite of what you've been all your life and force you to go out of your
comfort zone and tolerate stuff that you have never tolerated before and
probably hate me in the process, no one would have come. But that's what they
needed to be able to make a lot more money because it was the by product, the
reward, the benevolent bonus that cosmos gives you for doing the contribution
thing so to speak. Anyhow...

Chris: Hi, I'm Chris. I'm in a web posting business among other things. Jay, I
would like to thank you for creating a huge problem for us which is you helped us
increase our sales with 600% and now I would ask you to solve the problem
which is, how do we handle that?

Jay: Okay, so explain-the biggest issue that I tell people are first of all is to look
at the qualitative levels of sales-certain sales you may not even want. Certain
sales you maybe able to put a heck of a lot more service meaning people or
effort behind because it translates when you start looking at your lifetime value
into a hell of a lot more residual value. Mac you want to pick up?

Matt: Yeah, you can also raise your price.

Jay: Yup.

Matt: But (unclear 00:28 track 4) where you get exactly the customers you want
to handle for the infrastructure have. If you want to build an infrastructure out to
handle business, that's a business decision and that takes some time and one of
the true dangers and it sounds like a copy line which I have made it at various
times which is be careful with these techniques because they can generate more
business than you can handle and everybody's distinctive response is “Bring it
on, I'll handle it all.”

Chris: It's true

Matt: We've seen them bury businesses and you really have to be careful.

Jay: And there's another side, again this is a very difficult one and there's not a
general answer, if you know you have a residual based business and there's
enough repeat either currently or if you add it back ends and that was your
strategy, you might be wise if your making a lot of money-I made tons of-I never
operated my own business very long and probably well because I was always
more interested in others, but the one thing that I learned that I didn't do that I
would do so much is put a lot more quality people behind it when you got it,
build an organization that will be there to handle it so you might say because my
motto was always to sub things out because I never managed to have really
loyal, but not a lot of people not always in the past pay well etc...I would
basically say, okay, right now I'm making money but it's a mess. Let's put some
quality people in, who will keep it going and if I don't have a back end let's figure
out how to add back ends to it so it would work. I mean, I'm not a management
consultant, what would you say?

Matt: Well I think there's some interesting studies on entrepreneurs. One of the
things in classic entrepreneurial personality is very good at creating things. They
aren't necessarily entertained by running them and so they'll tend to-when
everything is running, when they really get it great and running smoothly, they'll
blow it up so that they can take on the chaos again.

Jay: You guys got a great compliment, but it also has a little bit of barb on it from
a couple of my colleagues here, one was very wealthy who I didn't tell you about.
He said these are some of the neatest people and most of them are creators, but
they're not really as naturally oriented to be builders, if that makes sense. They
can create a lot of stuff and they're going to have to work or bring in quality
people to help them.

Matt: And sometimes you might think seriously having a guy (unclear 02:40
track 4)to a certain stage about taking the money and going back and creating
again. Because if you find yourself unhappy in the role of builder, don't make
yourself unhappy. Take the money and run.

Jay: Or, and I'll tell you, this is very delicate. I've been burned, Mac knows that
trying to bring...

Matt: Business partner

Jay: ...business partner into take my money making ability and solidify it, but I've
also had some really good friends that have done well. Brian Tracey has a
partner who I'm very impressed with. He does all the deals, sets it up so that
Brian can do all the work. Tony Robbins doesn't have a partner, but he's got a
brilliant guy running his organization that I'm very impressed with who
coordinates everything runs interference, keeps Tony concentrating on the bigger
things. The other day, Tony was telling me John (unclear 03:25track 4) concept
about, I didn't get it down, but he's saying figure out what you not only do well
but you love doing it. Don't do anything else. Get yourself out of the rung so
that you can work on the biggest thing to keep growing it and go to the
mastermind group I mean if I don't as good an answer, you heard his question,
right, don't raise your hand now because we don't have time tonight but you see
who he is, hopefully he'll be here at 2 or 2:15 when we're done and hopefully he
won't be so wiped out that he's going to run to his room. Each of you who think
you've got an answer from your own life and I know there are people here
who've taken businesses through my stuff or others two three four time
increases over pre rapid rate, give them your best, not only reason, but
experience recommendation. If you get 20 of them, write them all down, don't
just say thank you. Sit there and say, talk slower and then put them all together
and see if there's a hybrid there and I think you'll get a little closer to it okay.

Chris: Thank you very much.

Jay: Good luck.

David: It's I guess going another (unclear 04:25 track 4) we had a group of
(unclear 04:28 track 4) one man operations, but looking as we've built this and
get the leverage up there we'd like to be able to bring on some other people and
some of your materials have indicated in ways of bringing on an employer,
getting them to work for you without really asking to pay, I mean or like a
commission (unclear 04:45) it's a way to structure I guess.

Jay: One of my belief systems was and still is and (unclear 04:50 track 4)
believes this and he's demonstrated to me that it can absolutely be done. If you
revere what-okay, just like this program had in it everything that everyone
everybody needed, have you noticed that? You should have all by now met
somebody that had either the answer or the connection or the perspective or the
experience or the ability that you were looking for and maybe you didn't even
know before you met them and I’m going to bet that's happened to almost
everyone of you, hasn't it and if I had gotten here a little bit more intermixed it
would happen to even more of you in more and more ways. The same holds
true. What you've got to realize at your size is you need a mastermind
organization or multiple ones. You need to either find other people doing what
you're doing outside your market and call them up, introduce yourself and say,
hey, what do you do by the way, what do you do?

David: Office furniture doctor.

Jay: And in what geography?

David: Washington State.

Jay: So, okay, are you now planning on national tomorrow?

David: No.

Jay: Okay, so you call-you get a DNB or yellow pages directory for the country.
You look up related categories, you find out bigger ones, you call and you say, Hi,
my name is, what's your name?
David: David.

Jay: David what?

David: David Cathers.

Jay: That's right, and I live in where?

(Audience laughs)

Matt: Just checking.

David: (unclear 06:15 track 4) Washington.

Jay: You're very good for 1 o'clock.

David: Alright.

Jay: And I am a small one person but growing furniture doctor you are a large
dynamic local or regional one. I have no probably capacity but certain desire to
ever compete with you, I mean I don't think you're going to compete in-where
are you?

David: From (unclear 00:15)

Jay: No no, (unclear 00:16 ) what city?

David: (Unclear 20 track 5), Washington, Tacoma area.

Jay: Tacoma, if that's the case and I sign an absolute letter affirming I'm never
going to be competing in your area, would you consider being a part of my
mastermind group. I'm trying to organize 10 different people who aren't
competitive but are doing the same thing, to help not just me, but help us all
grow and I'll orchestrate, we could do it by phone, we could do it in personal we
could do it there, we could do it here, if you do that, one way. Then you go in
your locale in Tacoma and you find reasonably well respected business leaders at
different levels maybe you can't go to the hundred millionaire, but maybe you
can go to somebody who's got past where you are in some business that maybe
isn't directly that way but is parallel at least you know (unclear 01:03 track 5)
service business and you go to five or six of them and you say, “Can I meet with
you and buy you breakfast or have coffee and here's what I want to do and right
now I can't help but someday I will be able to, if your assistance helps me and I'd
love to help give it back to others.” I'm sure you have a charity that you'd like to
benefit-I mean, and you figure out a way to do it. If you do that continuously and
when you're driving to and from work you pick out people that you read about in
the magazines and you call them and you ask them if they would consider
talking to you giving you their advice and you do things like that all the time,
guess what, half of them might say no, maybe three quarters, maybe even seven
eighths, but guess what, some of them will say yes and it doesn't take very many
of them and very quickly for you to get the answers you're looking for in the
perspectives you need and the guidance the encouragement and the fan club
that I think will make it possible for you to grow to the level you want. Does that
help?

David: I appreciate it.

Audience: We've put all the mastermind techniques to work. We have lots and
lots of clients and now we're just also dog gone happy at our table, we want to
reward our clients. Do you want to elaborate a little bit on any kind of loyalty
program?

Jay: Sure. But you want to tell me what kind of-all of you? Okay.

Audience: Well that was the question (unclear 02:26 track 5)

Jay: Good question Good question, good, good. I'm sorry I was playing a
different game in my brain, different game in my brain, see it's getting late.
Okay, first thing is there's two different ways reward clients. One is as a surprise
and one is almost like Pavlov's dog?

Matt: Yeah, Pavlov.

Jay: And neither is right or wrong. You can set up a loyalty program and you can
say we want to not only reward you but really enrich you for sticking with us and
buying all your whatever they are so we've got a program and it could be either
discount, it could be free goods, it can be points they get towards things they
want and need personally, points they get towards things they want or need in
their business, it can be something really neat like a reward, big pose, I mean,
where's Adam Bush, is he still here? I mean, at the last mastermind we did he
and a bunch of people pitched in and brought me a trophy that was like, that big.
Now that was really cool but it cost money-what did it really cost? $100, $200,
$300, $400 how much? $100? Okay but it looked really great.

Matt: It was great, it looked very impressive however.

Jay: It's like that big, I still have it in my office. It had a plaque that was very
distinguishing, people coming in my office and they see it all the time, it's really
cool. You can get at any time, anytime, anybody prominent is performing
anywhere in your locality. There's always somebody you could go to the club and
say I would like to do a photo shoot with that person, would that person consider
getting a $1000 or $1500 just to meet at the club before, after, the next day
whenever it worked, we'll pay you a fee for it, just to be a guest there, anyhow. I
did a trade, this is terrible. I don't think Mac probably knows this. Remember
Count Basie Orchestra (unclear 04:15 track 5)

Matt: Oh yeah, sure.

Jay: So Count Basie Orchestra, Count Basie dies, his son takes over the
orchestra, coming to one of our programs, we're having a great time...

Matt: (Unclear 04:26) he's one of the adopted son.

Jay: Yeah, adopted son and we do a trade a sort of (unclear 04:31 track 5) trade.
Next time he's in LA, he'll bring the whole group over to my house for a party. So
he forgets to-I forget to tell Christy which I am, forgetful. He doesn't tell me
when he's coming, he calls and says, “We're here, you want us to come over?”
and he was going to bring the whole group over but Christy was 8 months
pregnant..

Matt: It's like a twenty piece ensemble.

Jay: Yeah I had to, it was going to be, I had to wreck stuff in the backyard, she
was mad, but the point is the reason he was going to do it was they were there
anyway. They love playing music. Whether they're paid or not, they want to do
stuff. What cities you're in doesn't matter. Somebody relevant or relatively
speaking who's prominent is there. There's something I just did to somebody
and it was really neat who was...

Mac: I don't know.

Jay: I'm trying to think who it was. It was somebody prominent, it was
somewhere I arranged for all these people to get pictures with them to show, to
send home with...

Mac: That's very nice.

Jay: with their, you know, to put on their desk. You put a picture of you me and I
don't care who it is, an athlete, a this, a that and you frame it. This was so funny.
When I was doing (unclear 05:40 track 5) we had Buster (unclear 05:42 track 5)
who would-Flash Gordan, he was Tarzan, he was Captain (unclear 05:47 track 5),
he was, who else was he?

Mac: Who are you talking about?

Jay: (Unclear 05:50)

Mac: Oh, that's right.

Jay: He was still on the outer periphery of popularity and I got him to send
signed autographed pictures to the station managers wives and every one of
them let us have a (unclear 06:05 track 5). So you do lots of different things.
Does that make sense?

Audience: Well it does, can you give too much? I do home inspections in
Northern California and I want to take...

Mac: Yeah you can do, yes you can

Jay: I think you can look really, you can look desperate. What I...

Mac: Yeah, you have to give a gift that's something that's going to grow in...

Jay: But there's a delicate balance. Staying in somebody's life is very important,
but a gift can be just your caring about me and sending me, at Christmas for
example and you've got time to do this. Almost everybody buys a beautiful card,
almost everybody does something gorgeous, expensive, but production specific.
What would happen if you sat down at Christmas time and wrote a letter from
your heart and maybe even personalize it, if you didn't have a lot, if you didn't,
you wrote one and you have everybody sign it who is all of your staff and you've
got a picture of them, maybe people they've never met before and maybe add a
little note from a bunch of people saying you don't know me but I work on your-I
pack it, I ship it, you know, I've never had-I mean there's a lot of neat things you
can do that are very again, I said earlier, I was walking to the (unclear 07:22
track 5) I was talking about humanity and humility. Most of us, what I hope I
maybe opened up, maybe not convinced you totally but get into your humanity
and your humility and connect and there's a lot of things. Mac, you want to say
something...

Mac: Yeah, this fringes on a topic which is dear to my heart which is a question
of what I call trophy value. A friend of mine in the premium incentive business
talked about that. He says one of the reasons that business exists is for
instance, everybody goes “Oh, give him cash.” Cash has no or very little trophy
value. It doesn't sit on your desk, it isn't anything you can show off when you
pull out your wallet and pull out the $100 bill, maybe, if it's $100 bill, but it's just
cash goes into your bank account, it's gone spent on groceries, whatever, it's
gone. Trophy value is-$100 dollars spent-if they gave $100 to Jay, it's
meaningless. They gave a trophy...

Jay: With my name and you know it is the best...

Mac: And it's a literal trophy.

Jay: We appreciate all the things you've done, this is the greatest of all time, it's
like I've kept it in my office in a main place for seven years. I have somebody
who dusts it every week. Now does that give you an idea?

Mac: When you give something and you want to give them recognition and have
them enjoy it, give them something that can be displayed.

Jay: Yeah, that makes them look special, because they are.

Mac: It makes them look special because they are in front of other people, their
piers, their employers, customers.

Jay: And try to get them something that will last. A bottle of wine is beautiful
and wonderful, it is, isn't appreciated by half the people, isn't …

Matt: But a silver, a crystal and silver decanter with a presentation plaque those
have trophy value. It'll probably cost about the same.

Jay: Or something really cool that would sit on their desk forever or really does,
so...

Audience: So are you saying a trip to Italy would be too much?

Matt: For what, for what?

Jay: I don't know.

Audience: That's what I'm thinking

Matt: We literally know a case like that where a furniture company that we
worked with was able to buy from a syndicator, packages to Hawaii, if you
bought a sofa. The breakage on those is so high, they cost a nominal $2000 trip
you could buy for $175.

Jay: (Unclear 01:18 track 6) you people do it.

Matt: So they could afford to use it. It was in their allowable cost of sales and it
killed sales because they're customers looked at that and said, if they can buy
me a trip to Hawaii, I must be overpaying like mad.

Audience: That's what I wanted to know.

Jay: Put is to test and don't-we're going to give, the first strategic thing will build
is I am going to continuously and properly test everything relevant and when I
find something producing better, that only is the beginning and that's….

Matt: Does everybody know there's a test and a roll out?

Jay: Explain the difference.

Matt: The difference is a test is you don't shoot the farm, you don't do
everything, every customer you have, you do with small, if possible statistically
or at least business significant element so you can get some reasonable business
fix on whether it would work if you took it to a larger group of your customers
prospects and whatever it might be. A test doesn't mean rolling it out to your
whole people. It means that's where the leverage comes from testing the
smallest group that gives you an indicative response that you can say “Gee, I can
extrapolate this out.” Now there's some dangers of error, but if you are very
cautious in the way you extrapolate results, that's the tremendous leverage you
can test literally 2500 or something and if you get a 1% return, that's just, that
gives you statistically significant results. So but you have a list of 1000, you test
100 and you're in a business to business situation and you get ten things back of
the 100, and those ten things can generate-have the potential for generating a
million dollar sale each,that's business significance, you don't care about
statistical significance, that's for statistician, you care about business
significance.

Jay: Good, okay, only because we want to get onto planning your future.

Audience: Jay, given the power of the referrals and the affiliation programs that
we've talked about, why don't you talk about network marketing and any of
(unclear 03:35 track 6) as far as I can tell.
Jay: Because most network marketing deals I don't like because they encourage
people to sell and not sell through, they want you to sign up lots of distributors,
they don't try to get you to sell lots of clients, buyers, what you sell out to
buyers, they'll so screw you. you can't make enough money almost to justify it
and they don't give you really, they make you buy tools which are training
programs and it's just-met very few. We've tried I mean, we had $3 million worth
of radio time. (unclear 04:09 track 6) is a great friend of mine and he's involved
with a lot of businesses. We went with prepaid legal and we took the top position
just as an experiment, we spent $400,000 of our (unclear 04:20 track 6) trying to
get people in and we got a 1000 leads and we converted like 20 of them and two
of them sold and I think I got $212 in money back. It's just-I know people who do
it, I think there's so many faster easier more...

Mac: And there's another reason. If you read the contracts on most distributor
arrangements, you are prohibited in most multi levels and most network
marketing from doing direct marketing or anything that might be effective direct
marketing, you're usually prohibited from using the primary branding of the
product, making product claims without clearing them through home office.
They tie you up because it is a direct sales proposition not a direct marketing
proposition. I've been asked to work on several of them, I’ve looked into it and
unless you work at the primary level, they've tied it up, so you can't direct
marketing....

Jay: And I would challenge this. Now that you know this stuff and you kind of see
the leverage in this, why would you want the leverage in that because that
leverage...

Matt: That is a good thing to start with, sometimes it's a great business
experience.

Jay: There was a gentleman and this is very cool. There was a gentleman, I can't
remember his name, (unclear 00:58 track 7) even here or was here at our last
program who literally was teaching the fact that network marketing was a great
starting point for people just to get their feet wet, $200 or $300 and maybe use
it to parle and learn some good and I actually found that premise palpable...

Matt: I think I agree with that.

Jay: But I just personally, it's like we help-the best one I've ever done was I
created a model, I don't think I ever told you you this, where a really cool guy.
He had like 500 people who (unclear 01:35 track 7) really high performers, but
they were dedicated but different people have different skill sets and they were
able to do all the things and I got him to create almost like a corporation where
each one put different values in, we evaluated it and it's like you put in money
to financing, you put in the time to set up appointments, you put in the
presentation, you put in the work with the (unclear 01:55 ) and I broke it down
and it was pretty cool. It worked but
Matt: Yeah, like anything else, it's-there's big difference between some and
another. Some of them are closely held and are really interested in selling
product through and not just selling distributorships.

Audience: I have a question. Have you guys ever interviewed some of the
various organizations and some of the real superstars in those organizations?

Matt: Yes.

Jay: Mac has, I have.

Audience: Okay.

Jay: But we've also interviewed people who have made a lot more money in
businesses that have had a lot more net worth and could be sold and we're not
knocking it. We're not knocking-in fact all of these techniques in one way or the
other can be applied to it. I've done very little but I can tell you-you know million
dollar a year earner (unclear 02:45 track 7) is a client of mine, the chairman of
prepaid legal buys my stuff, two or three of the top people (unclear 02:53 track
7) is a great friend of mine who's a big person in a lot of network marketing, the
guy who used to run upline, or downline or whatever it was called, he's got a
funny name, something something something, he claimed I kept him alive
financially by using my stuff, so it's not like I don't have a presence in the field.
It's just not my preference of concentration.

Mac: Because they usually are tied up. It was almost like working in a regulated
field, because you have so many things that you can't do and so you have to be,
you have to jump through a lot of hoops to do anything but if you can make
these work to the extent that your distributor arrangement allows you to do it
and I don't want to mention specific ones that I’ve worked with, but it, usually
you run up against a brick wall somewhere.

Jay: Okay, anyhow, hope that helps or at least explains.

Audience4: Several of us at our table were very interested in learning how to

become I guess market experts so that we could practice the strategy of...

Jay: Marketing consultants or just marketing experts?

Audience4: Well we want to practice the strategy of preeminence including...

Jay: So what's the-can you ask the question a little bit different?

Audience: I'm not finished with the question.

Jay: Oh, I'm sorry, pardon me.

Audience4: So, in order to do that, we need to know more about the market and
the industry rather than simply just our little business and so we're looking for
more ways to gather information about research that's already...
Matt: You've probably don't need to know-I mean just to be contentious, you
probably don't need to be-know more about the marketing industry. You may not
need to know deeper and more pervasive marketing technique but you probably
need to know a whole lot more about the industries your going to work with.

Audience4: No what I'm trying to find out is something like if someone's already
done research to find out what the effect of productivity is to have beautiful
paintings on the wall, if somebody's already done that kind of research then I can
have access to it, how will I find that?

Jay: Okay, I'll give you. Let me count the ways

Audience: Wonderful

Jay: Okay. First thing you do is-it doesn't matter what business you're in? First
you obviously look on the internet and you look at some web pages, what I
always do is, somebody we pay a little bit more than minimum wage, get every
legitimate looking web page and their goal is to find things that have statistics
comparability, case studies and print everyone out and then basically assemble
for me. The next thing is to go to any association and see what they've got
available. The next is to go to Amazon and see what books there are available,
the next is to go to clipping service and see what's available, the next is to go to
other people who are not competitive with them and see if they've got anything.
The next is to look at competitors marketing that might have it in there and
normally you don't have to go much further than that.

Matt: But one thing you should be aware. It's a dynamic situation. Things
change over a period of months. One of the most interesting parts of direct
marketing, direct response is something that worked three months ago might not
work at all today and it can flip around. You have to keep investigating.
Paintings on the wall might be wonderful this year, and might be a total drag
(unclear 06:23)

Jay: Everything in the world is not, I mean, very little is constant. I mean you
know, desire for money, for love, for sex, for, you know fear of death, that kind of
stuff is a constant, but the way people can be impacted changes and if you learn
that this works tremendously well, the reality of it is combined in the
kaleidoscopically unique application that is your market approach or strategic
marketing approach. It may bond. That's why you have to test it.

Matt: Jay couldn't have sold the mastermind seminar between 97.

Jay: I couldn't sell anything.

Matt: Yeah, you just (unclear 00:15 track 8) marketing lab, you did the internet
thing. We did a lot of stuff, but you weren't always happy with, because you
have such grandiose expectations but he couldn't have (unclear 00:29 track 8) it
all because the market climate was such that people didn't believe in a basic
business model. They believed in putting your stapler on the internet and doing
an IPL.
Jay: And money profit wasn't a relevant thing. It was stickiness, it was visitors, it
was impressions, it was quick throughs...

Matt: And right now, all of a sudden people-Jay

Jay:(Unclear 00:50 track 8) it's hilarious, everyone wants me now. I'm busier
than I've ever been in my life. I got more people because fundamentals the
Warren Buffets School of business is pretty damn popular.

Matt: Yeah I mean, you know, people were booing more in Buffet three years
ago, I mean things change, you have to-that's the interesting part about the
business. You can't stick with anything forever. Anything

Jay: But you can-it's a great, great, great guide host, but it's not a certainty,

Matt: Jay's one of the great historians of direct marketing. He's been studying
everybody whoever started anything. He has a reservoir in his mind and on his
shelves of everything that was ever done in the whole history of marketing.

Jay: I've got a lot of stuff, but..

Matt: Well I (unclear 01:33 track 8) being the point, but he only slightly because
he owns licenses and stuff that have been out of print for years. Robert called
your letter book for one thing. I mean, and he revived people like John Caples,
anybody heard of John Caples? Probably from Jay, tested advertising methods of
fathers of this-Jay put together-Jay, because techniques that maybe out of
fashion this year or this decade are something you should test again from time to
time to see if they've come back in and everything goes through a cycles so
that's I don't know if that's a good answer.

Jay: Okay, good, I bet it helps a little bit.

Audience: It does, thank you.

Audience: Jay and Mac, you have to imagine for a second that we've kidnapped
your families and we're holding them hostage.

Jay: Which one? Family number 1, family number 2, or family number 3.

Audience: Everybody, they're all...

Jay: The answer's going to be relevant.

Audience: They're all locked up in the back room talking about you.

Jay: Okay.

Matt: Then they're all dead!

Jay: Okay.
Audience: And your key to get them back is for you to dig deep and express to
us the one core mindset or belief or a way of looking at life that if we adapted it
would have to biggest impact on our success.

(Audience applauds)

Jay: That's a good question, good question. And I'll try to do stream rather than
think about it. Can I give you a composite answer or you want...

Audience: Sure, whatever you think if we took it on, we would make a difference
in our life.

Jay: The first one is from today forward, you don't interact with anybody if you
can't make them better off because that moment or that hour or that presence
or that meeting or that conversation wouldn't really make them better off, it
didn't add to their quality of their life, whether you smile at somebody at the
elevator, whether your stopping to listen to the lonely maid or whether you're
just acknowledging somebody, because that's the first thing. You're focused on
how and what areas can I give more value to my clients and you basically don't
think you know squat and you start basically becoming so obsessively almost
fascinated and interested with everything else everyone else outside where you
are is doing and you have the courage and the genuine passion for asking a lot
of people a lot of penetrating questions and not stopping at the first or the
second or the third level of answer they give you. Mac, you've got a better one?

Matt: No sir, but I can say this. A glass in that is that revolves around, well the
life in a business philosophy which is that which doesn't kill you, makes you
stronger and marketing or business contest there are no failures if you look at it
properly only tests from which you learn something.

Jay: That's great. No test, and if the test is devastating to you you didn’t learn,
you test conservatively at first because I don't care how cocky or competent you,
your partners, your board of directors your banker your husband, wife, supplier is
things don't always do what you think for the worst and for the better. I mean if I
showed you the stuff that made us the most amount of money I wouldn't have
guessed it. If I showed you the stuff that didn't work that I loved, you would be
surprised. I couldn't discriminate, or wouldn't have taken the, loss on but the
trick is there is no loss if you do it right. There's no reason to spend $100,000 if
you can get the same answer for $5000. There's no reason to run a full page ad
if you can run a quarter or just a headline first and see if it works and if you do
that, you'll have a lot of little losses that won't amount to (unclear 05:38 track 8)
but when you find the winners, you'll roll them out and make so much money
and when you decide not to be static and do it one time and never do it again
but build and build and build. That's how you build a strategic business. Okay?
Helpful?

Audience: It was excellent, thank you. And your family will be waiting for you
when you.

Jay: I'm glad I can keep paying for the schools.

Audience: This is back to the basics question for you Jay. We agreed that we
would like to develop your prowess power and unseemingly instant ability to
write copy. Can you give us a step by step process so that we can all become Jay
Abraham copyrighter.

Jay: Yeah, I can't, I can't, but it's not going to be something you're going to do
overnight. I really didn't get it. I had natural ability but I didn't get it until 1976
or 77. it's when I met Dan (unclear 06:22 track 8). I was successfully poised but
I didn't know how I was doing it. I was working for Entrepreneur Magazine. We
traded $15,000 worth of advertising for a day, this guy is charging $15 grand for
a day back in 78...

Matt: Which was a lot of money.

Jay: And he was getting-but his credit, he treated like cash. He organized
(unclear 06:55 track 8). He basically made me do three things. He gave me a
bibliography in an order, he gave an educational marginal net worth three for the
first time, he showed me the meaning of business life and explained it to me that
the goal was to bring people in and keep moving them along and selling them
and reselling them and he showed me the financial dynamics that he had, he
was a mathematician. I used to keep and I lost it, this incredible proprietory
thing that he did for newsletters and it was like so mind boggling because he
showed me how to do it. This is this...

Matt: The progression...

Jay: The $15 converted to the $39 and it was wonderful. But he taught me this.
He said, here's the problem. He said most people buy a book or they hear
somebody tell their principles and they're not dynamic. He said, read
somebody's principles first, he told me who to do, then go back and read their
biography or autobiography to learn the activities they encountered and the
experiences they (unclear 07:53 track 8) to be able to really come up with those
conclusions then if possible see if there's any other information you can learn
that's even more global and he started off with Claude Hopkins which is the most
definitive book I have ever read. He said, read scientific advertising first and he
said read it 50 times. It's a little book, it's toilet reading. You can read it in 15,
20 minutes and then read it again.

Matt: It's still in print, published by Cranes

Jay: Crane Communication (unclear 08:20 track 8). It's called something else
too. It's got another something...

Matt: (Unclear 08:25 track 8)

Jay: You can find it, but then this was the guy, he was obviously and probably
still is one of the most brilliant marketing scientist that ever lived. Okay, so read
his conclusions first, but don't stop there. Then read My Life In Advertising which
is the guy's autobiography that tells every major experience, the lesson he
learned and the action and the implication he took from it. So I learned how to
do it. Then he said, read, Taken At The Flood which is the life story of Albert
Lasker who was the man he worked for so you see contextually what was going
on in a bigger scope and that was the model I translate I think almost intuitively
to everything. It's like you'll learn-if I had the time and I'd say, how many of you
are really good salesmen or women and I'd bring 50 of you up here and I'd ask
you a question and I'd say, tell me first of all what your selling strategy is, then
I'd say, tell me how you learned it, then I'll tell you, what influenced you there,
then I'd say, what were the origins of that in your life, before you did it. Then go
back to your history and I'd keep going, I keep going, what is the word I'm
looking for Mac?

Matt: Globalizing, I guess. I'd say globalizing.

Jay: And I think you've got to do that. So here's how, I’ll give...

Matt: Chunking up

Jay: (unclear 09:50 track 8) first of all, start monitoring ads that repeat (unclear
09:56 track 8) direct response. If you see an as that runs week in and week in
and out and a lot of publications, tear it out and take it home. Ask all of your
friends and all of your colleagues and coworkers to do the same. When you start
getting direct mail, start saving all of it, but throwing away mail, you don't get
more than once. Do you agree?

Matt: Yeah, there's one copy and you take it for granted. You have to get some
direct selling experience.

Jay: Yeah, I did, I mean, get a book on direct selling. If you can take half a day, a
week off, go get a job on commission selling something that requires developing
selling skills. Get educated by an...

Matt: Doing network marketing thing it's easy and..

Jay: You've got to be able to-I sold door to door. I sold business door to door. I
sold on the phone. I had to learn that. I was rejected. I had to learn how to over
come it, had to muster up the energy.

Matt: What the dialogue is like.

Jay: How to envision that person. How to conceive of every conceivable verbal,
non-verbal explicit, implicit objection, thought, what was going on in their mind
until and unless you do that, you won't be great, really, don't you think?

Matt: There's what-direct marketing, direct response advertising is a dialogue, a

silent dialogue, not a monologue with your prospect, with your customer and you
have to anticipate how they're reacting in the process of dynamic flow, your
copy. If you don't have a sense how people really react when you sell them stuff,
your copy will be academic and miss the point. It'll be, if you study just direct
market advertising, it'll be your copy will sound like a history of direct marketing
museum. You have to make it interactive in a live sense. You have a-you're
talking even though you may print million of them and put something on the
web, you're still talking one on one with someone.

Jay:(unclear 12:05 track 8)

Matt: It's a human-it's a fundamental human transaction and one at a time.

Jay: If you print a million newspapers or if you run it on a TV station that is

watched by 10 million people one person at a time, you're talking to one person,
anyhow..

Audience: Thank you.

Jay: you're welcome

Audience: Jay, can you shed some light on maximizing opportunities from
consumer exhibition. We are a retail company and we've got wedding exhibition
coming up.

Jay: What kind of-is exhibition like a trade show?

Audience: No, direct for consumers.

Jay: So would it be like...

Matt: He's talking about, he's thinking about a specific trade show in London,
right?

Jay: Which one?

Audience: It's..

Matt: A bridal trade show.

Audience: Bridal trade, not a bridal exhibition, consumers,

Jay: Sure, sure, I can.

Matt: 12,000 people.

Jay: 12,000 people. Okay, well the first thing is you need a preempt, I'll give you
three things to do. First thing is you need a preemptive sign, a big sign that
doesn't have your name but has the biggest pay off they can expect to get for
visiting your booth. At the booth, underneath, you need bulleted benefits, sub-
benefits and advantages. Third, you need to be able to say something so
powerful in 15 or 20 seconds or less that it galvanizes that, would you like your
wedding...

Matt: What if it's in a 12 story building with separate rooms rather than a show
room floor.

Jay: Is that what it is?

Audience: Yes, but..

Jay: People are going to walk through all these rooms?

Matt: Gee, It was just a wild guess.

Audience: They will.

Jay: No, I don't know. I mean it's like I don't vision what it's going to be like. So
you're going to go up and down the stairs...

Matt: It'll be like selling in a hotel room to room.

Jay: Oh really.

Matt: Yeah.

Jay: And individuals will come?

Matt: Yeah. That's what he sells.

Jay: Are these individuals consumers?

Audience: Yes.

Jay: That's a weird consumer show.

Matt: I know. It really is. Yeah.

Jay: Are you sure?

Audience6: Yes, we've done this before and they go up to the top floor.

Jay: Your attending, are you putting it on or...

Matt: No they're exhibiting.

Audience: Exhibiting.

Jay: Okay, so can you bring models, can you hire models that are really
attractive in white dresses and men in black tuxedos to walk up and down and
have signs on their back?

Matt: Hand out, visit our...

Jay: That's number one, number two, can you have a wedding in process, like
you can have fun ones going on, I mean weddings every hour on the hour but
run...

Matt: That's a terrific idea.

Jay: Let me think of some more. Can you go to everybody else that has a booth
there that is not competitors to your and make a deal with them if they tell
everyone to go to yours also that everyone that goes there, you'll give them
something like that, can you, this reminds me of Roxanne, the movies, remember
Steve Martin when he was listing the whole list of ways you could better insult
his nose.

(Audience laughs)

Jay: Let's see, what else can we do Mac here?

Matt: I think that-the issue comes is that how do you make people-you have to
drawing of a sweepstakes so that you keep people, if there are so many rooms
and so many shows...

Jay: There's got to be neater than most people give away. It's got to be neater
than what most people give away. You go to the owner of the whole thing and
you pay a premium to put a special sign like preemptive, like draping in front of
the whole building saying register for a complete wedding for you, your whole
family, all accommodation, I mean, what are you selling, what's the product?
This is not a universal-unique one. What do you sell them?

Audience: Wedding clothes.

Jay: At what price point?

Audience: About 1000 to 2000 pounds.

Jay: Okay, and if you do really well, how many will you sell.

Audience: I think it's follow up afterwards because.

Jay: yeah but how many will you sell if it works out?

Audience: If it works out, we might sell 200,00 to 300,000 pounds.

Jay: And what will you make on that?

Audience: 100,000 pounds.

Jay: Okay, only 100, really?

Audience: Maybe more. 150.

Jay: Sure?

Audience: Depends how many we can (unclear 16:24 track 8)

Jay: You know the tax authorities aren't listening. Well you could probably, I
mean, if you know that there's that much at stake, you might be able to go out
and negotiate with a hotel that normally charges let's say $500, we get the time
of the year that they'll do it for $100. A lot of different things, put a package a
gift together so different it blows the mind of everything else and then pay a
premium to the promoter to have a preemptive sign there and then pay a
premium, pay a rental rate your talking about what does the booth cost?

Audience: About 8000 pounds

Jay: $8000, how many booths will be there?

Audience: I think about 150 exhibitions.

Jay: How many of those 150 will be competitive to you?

Audience: About 30.

Jay: 30, so 120 won't, right? Okay. 120 won't. You have men's clothes or
women's clothes?

Audience: Both.

Jay: Okay. So 120 don't have that, if you gave them 120 times $200 is what?

Matt: it's 24,000.

Jay: 24,000 or 2,400

Matt: Thousand.

Jay: What is your budget for the whole event.

Audience: I think 20,000.

Jay: Okay would you be willing to spend 30?

Audience: Okay.

Jay: Okay, you know what, then give me 10 grand right now!

(Audience laughs)

Jay: So, what would happen if you went to those 120 people and you said, I want
to write you a check for everything you paid for this booth. I think we can do it if
you refer enough people to us. Here's a check right now as advance for 200
pounds and here's a sign we want to rent and put up. Here's the things you give
them and you work out something like that. Mac help me here.

Mat: I think your idea of getting prime position by going to the promoter of the
show by paying extra is actually probably the most powerful thing you sell.

Jay: Did that help a little bit?

Audience:Thank you very much.

Random speaker: I've got a weird...

Jay: you're welcome. And try fortune cookies.

Random speaker: I got one...no, no, two years ago we started getting a bunch
of phone calls out of the blue from brides and we thought well why would brides
call us? We started sending out catalogs to brides and so we asked, why are you
calling us and two year ago, Martha Stewart in her magazine before she became
a criminal...

Matt: She's a pre-criminal, she's not a criminal yet.

Audience: Before she, you know, whatever, she said in her catalog a great idea I
think for a brides is the idea of customizing fortune cookies and giving them out
as table favors because you want to be non trendy. So we had tons of brides
start calling us and then it continuous, about 20% of my business actually from
brides and so what they do is coordinate instead of giving out chocolates which
every bride in the world gives out, they customize and put their wedding colors,
so if they're having a pink or a purple wedding, that's great, they use, a pink and
a purple and like they break up the fortunes and are like on my side I have a ton
of wedding fortunes that brides have done, like they break it open and one
fortune says, “He loves, he loves me not, he loves me, we tied the knot. Sharon
and Dave 1999,” you know whatever your, so maybe and idea, this is a weird
idea, not to get you to use me, but maybe you go to the promoter, you say, will
you give these out, I'll give them out to everybody and so it's a nice little theme
for the show on one side it promotes whatever the promoter wants to do on the
flip side, maybe it drives them to your booth for something, I don't know.

Matt: Yeah, that's great. Think out of the box.

Audience: Jay, my, sorry, Mac my question is.

Matt: That's right, Jay's here in spirit.

Audience: Oh, Jay's in spirit, well that's great. First I have to tell you all my
original question was and I'm sure you'll identify with it, it is Jay, if there's one
more thing that, and of course you all know what happened is that somebody
else asked the question first. So I related this to one of my passions which is
martial arts. The typical martial artist debate is my judo beats your tai chi or my
karate beats you tae kwon do and they get into this argument about one having
intrinsic value over another right without really addressing...

Matt: Sounds like a (unclear 20:52 ) event to me.

Audience: Right, so in a situation where the concept is right and someone's

offered (unclear 21:02 track 8) the other guy said he was holding Jay's family
hostage and the position that I had was good, because I was going to deliver that
question last in line, it was going to be the last question of the night, you know
get a big laugh and you know, be appropriate, the last big thing. Mastermind to
mastermind, how do you address that situation if you've got a client who has
been pitched on the strategy of preeminence, how do you compete against the
strategy of preeminence?

Matt: Well, I would go low. That's a high card. I would play a low card. I would
say, is that what you want, preeminence? Do you want sales? I'll get you sales.
I'll get you profits, I mean I wouldn't try to trump preeminence and (unclear
22:00 track 8) super preeminence. I'd go practical, I mean, but that's just a sales
instinct that's not a, I'm not sure that fits your philosophy. But you can go high
or go low, it's an interesting game, you can go anyway you want.

Audience: Thanks Mac.

Matt: Sure. I don't know if that's a satisfactory-I'll ask Jay again.

Audience: Mac, how would you address the question if a person has the ability
to earn a lot of money, their poise to earn that money, but they don't feel like
they deserve the money, whether it's after they've earned it to keep it for
themselves, or the value on their service, they don't feel it's even worth paying
for. How would you help a person develop the confidence to earn the money, the
worth to keep the money and to use the money.

Matt: Most fascinating question. First thing I have to ask is why do you care?
Are you talking about yourself?

Audience: Yes.

Matt: Okay, because otherwise, it's...

Audience: And actually in the martial arts, it's probably one of the most
common challenges that I've heard.

Mac: That's a wonderful question. I think that you at some point have to go out
and say that the course that you've chosen on the money does not have great
energy for you in it. I think you have to be an energy hawk and maybe if you say
that, it isn't right for you. I mean, I wouldn't go against that, there's something,
you know, is money the motivator, find something that has the karmic payoff
that you want that may or may not have the money. Why force yourself to do it.
Life's short. Follow your energy, follow you joy. I don't see why you need to
make yourself do the money unless you have a strong debt to someone and that
maybe enough of the motivator. I don't think you should force yourself.

Audience: It's not so much as forcing it, it's the concept of...

Mac: Confidence?

Audience: Yeah, I think that's what it is.

Mac: But what-self worth?

Audience: Yeah.

Mac: you know, I have a feeling it's not-that maybe the case. I suppose the
most powerful thing is to examine your soul and find something you want that
that success will buy, something that is satisfying to you that that success will
buy maybe you want to start a foundation for autistic children, I don' t know, but
if there's something beyond that that is something that you can only get by
going through that path, I think that might dissolve of the self confidence or
motivation issues, because I don't think self confidence exists in isolation. I think
that's-it's a motivational question rather than a sheer confidence question.
Confidence you build by going on and taking on a series of tasks and proving
your competence to yourself, but I think you're talking about something else, so
that's the course that I would suggest.

Audience: If I can direct the question to Jay.

Mac: Jay this is a very interesting question he asked.

Jay: What's it?

Mac: You mind restating it?

Audience8: Sure. In regards to feeling a sense of worth, feeling worthy of

receiving the money once it's been made or knowing the ability-having the
ability to earn the money, but stopping yourself or once the money has been
made, to not feel deserving of having that money. How do you overcome that?
And why do you feel that you deserve to get paid?

Jay: Okay, that's a great question. Well I'll tell you my answer and again, I've
never thought about it, so I'll give you a pretty sort of a stream of consciousness
answer. I feel like I receive compensation for/after and only by making people's
businesses and personal lives so much better. I don't just feel it, I know it,
because I have taken the time to analyze and measure and assess the value I
give and when I saw that it was not adequate, I think Mac will honestly say-then I
stopped it, didn't I. Or I improved it or I made it up. Now I'm not perfect. I've
failed to do this but I feel very good. I know with certainty frankly that everyone
in this room and everyone who's left if they would have gone through any of
those home study, I mean those preparatory stuff and they would've watched-it
would be impossible if they signed up early enough for them not to have already
made more than it cost. I know that if you go through even just the very
wonderful workbook that we created for you because I took it from materials we
sell for $10,000 that it's impossible for you not to do. If you know that what you
do-if you don't know what you do, the first thing you've got to do is immediately
go home pick out the best most recurring or highest paid satisfied client you've
got or patients and get him on the phone and say, I want to ask you some
questions that I don't think anyone's ever asked you. It's about your relationship
with me, it's about the service or products you get, it's about the impact it has
made and would you answer me if this isn't good, can I do it in the next hour or
so, and you call him up and then you say, here's the question, first of all, “Do we
make a difference of any kind to you?” and they going to say yes or no and if you
say, I want you to be honest. It maybe is just a convenience. if they yes-is your
business is better off because we're in it. So, how, why, what have we done
that's been, what do you find most valuable? What's the impact been? How has
it helped you in anyway that can be measurable financially, psychically, has it
saved you money, has it made you money, has it made people stay that cost you
money to replace and we can quantify that. You start stretching so you do it for
your reasons, this is a killer, it makes them appreciate you more, it makes you
appreciate you more, do you understand that?
Audience8: Absolutely.

Jay: And you record it and you transcribe it and you listen to it and you read it
and you disseminate it and you say look at what we do. When we choose right
and we render, serve right, we help increase people's productivity 20%. We keep
people, we keep two thirds the people leaving (unclear 29:05 track 8) and that
saves them $100,000 a year and you calculate too. When they answer a
question, you extrapolate. I'm being a little bit abstract, is it too confusing Mac?

Mac: No, no. I think that's, I have-but if you go through everything that Jay talks,
which is a rational proof to yourself.

Jay: You've got to prove that you have value.

Mac: But if you go beyond that, I just thought of a great book that a friend of my
mother's wrote, it maybe out of print but it would be worth while (unclear 29:30
track 8) chasing down. It was called Fear Of Success by Dr. Leon Tec. Tec with a,
he was Hungarian, it had one of those (unclear 29:40 track 8) marks on it, I'm
not sure what it's called and (unclear 29:44 track 8) languages, but it's a great
little book. He's a very cultivated man and musician and a psychiatrist too, was
a very insightful and practical and funny guy. So if you need to go beyond what
Jay-the practical proof to yourself, he discusses some of the issues that maybe
holding one back which usually are engrained fear of disapproval for success
within a family set up. You may lose love, because you're successful beyond the
expectations or wants of your people, of significant value in your intimate
setting. So it's an interesting book, if you want to go touchy feely.

Audience8: Thank you, you just made 6000 miles and $6000 worth it. Thank
you.

Andy: Jay, can I add one piece to that? Mac?

Jay: Please do.

Andy: Okay, over here.

Jay: Andy, please.

Andy: One of the things that I notice with salespeople is they start to get a level
of success and I hear them say things like I'm making more money than my
parents ever made and they start to feel guilty about it. So just pay attention to
are you becoming more successful than you ever thought you could be and one
of the speaker, I think it was Mark Victor Hanson yesterday said, pick worthy
goals and so one of the things that I find help people is find a fantasy that you
want to make become real and go make it become real or if you're going to pick
a worthy goal, find something like a couple of weeks ago I was in Cambodia and
there was a hospital there that for just a little bit of money you could save the
lives of like 250 children. Okay, so take a little money and send some money, so
more than just pick a goal, go somewhere and actually see it action and you'll
find that sharing the wealth is a pretty worthy cause.
Jay: You know, couple of other things. This is how important that I'll deal with it
a little more. I've give you a couple of other and I think we all sort of give all of it
differently. I believe you really get into this concept of seeing the higher cause
or purpose of what you're doing being much different than making money,
number one and then you've got to achieve it to really fulfill your life's purpose.
Number two, you start living in the transactional future of when your product or
services are at work in somebody’s life, number three, you take the time, go to
people, go to your clients, get to know them, it's very exciting. Go to your
clients, meet them, go meet the people that are using them, I mean, I had a
client who was an attorney once, remember Sheldon (unclear 32:29 track 8) from
the protege?

Mac: Yes.

Jay: He was this killer brilliant personal injury attorney, he only did medical
malpractice, he wouldn't even take a client until he would go and live with them
for at least three solid days and make sure he really respected them and he felt
that he learned their life, he appreciated how they'd been harmed, hurt and he
was really, he emerged himself. We had another guy who was a criminal
attorney. I ask him how in the world he could do it, he said, I will not take anyone
one I can't find something that I really like about. He may have raped pillaged
and plundered, but he loved his mother and it may sound funny but he would
find something. You've got to find something that connects you at a deeper level
than just monitory. You've got to realize you've got this driving goal to protect to
enrich, to enhance. I just think that's really and you've got to love people.
You've got to love people and probably the other thing is you can't take it too
serious. You've got to have fun. You've got to do what's moral,what's ethical,
what's equitable what's right, but you don't have to do what everybody else
does. You're not judged by anybody but yourself and whoever, whatever higher
you know whatever you believe in. I think Mac, don't you?

Mac: Yeah I just thought of another set...

Jay Abraham Mastermind Marketing 34

Audience: ...money in every month. So he feels that he doesn't deserve
that much. I asked him, "What do you do at IBM?”He is in charge of
something related to power. I say, “Probably you are really good at what
you do," because he is very good with people. He does his job really well,
he is good at his job. I ask him, "If nobody did that job, what would
happen? How much damage would it cost IBM?" He says, "That's a lot." So
what would happen to your clients if they don’t use your service? Your
focus is that you are valuable for your clients. What would happen if they
don't get it?

Speaker: The other thing is you could just hang out with some base-ball
players, they don’t have any trouble getting paid big bucks for doing
nothing.
Audience: This is related to what he asked you, just two little quick
things which will helped because I had major money issues too; big time,
for years. There were two things that really helped me a lot. One is seeing
myself as a waterfall; that energy is coming through me. It doesn't matter
whether it’s monetary energy. As long as it's flowing outward, I don’t have
to even hold on it. If people have issues with holding on to money, then let
it flow through you. You can look at it that way. Another trick I did too was,
that looking at instead of as money, just looking at it just as a number.
What I did is, when I get email from my merchant account batch every
day, just say, “Okay, well it's 1500 a day. Okay I want to be 2000
tomorrow, 2500 the next day and then 3000, 4000 and then 5000.”
Looking at it as a daily thing because there was a number that was
coming into me every day and I could just detach that it was even money
and look at it as a number and a goal and it turned it into a game.

Audience: We are a disaster restoration contractor. We are up in

Northern California. We do a lot of commercial work and we are pretty
strong regional player. Most of our work, obviously comes from the
insurance companies. We are calling on the large insurance companies
now. How do we reposition ourselves against our national competitors who
are going to those guys and saying, “We are a one-stop shop
[unclear00:02:21.19]."

Speaker: Do you offer the same array of services?

Audience: Yes absolutely.

Jay: What's the question?

Audience: We compete with them, pound for pound. How do we

reposition when we go into calling these corporations because their USP
is...

Speaker: Are you priced equivalently?

Audience: Price is equivalent.

Speaker: Is that your choice or not?

Audience: Yes

Speaker: Service delivery is actually the same?

Audience: It's the same or better.

Question: Yours is or theirs?

Audience: Ours
Speaker: You are saying, because of their branding, they get the work?

Audience: I am saying, because of the consolidation, some of these

insurance companies would rather deal with just one company that can go
national. That way they can deal with them in Kentucky, New York,
California...

Speaker: Insurance companies are not all the same. But they are also
simple organisms. They have basically one set of stimulus response. They
respond for all practical purposes, if you cut them the price...

Jay: But also, be pragmatic. Start with who wouldn't. If almost all of them
would rather deal with the national one and there are a hundred insurance
companies. If most means 80 then figure out the 20 who wouldn't, then
start there first of all.

Speaker: Can you offer a set of services that will save them money. For
instance we had a dryer fire in my house. The insurance company had a
rapid response team that came in and did an immediate smoke
remediation. They didn't even ask for underwriting or anything, they just
came in and did it. I think it probably saves them tremendous money
waiting for somebody to come in and do the thorough job. Could you be
quicker to the mark?

Audience: I don’t think we can be any quicker.

Jay: Can you add certain services that are highly profitable, that most
insurance companies would have to pay for and make yourself a
proprietary? If everyone is the same but there are three different other
services they have got…what's a typical job size?

Audience: It can come out $60,000.

Jay: $60,000. What is the profit?

Audience: 45% GP.

Jay: So you are making about 26,000. What else do they do before, during
or after what you are doing? What don't you do that has to be done either
before, after or during? What don't you do that transpires around the
service? You do these services but you don’t other services that go along
with, after before - what are they?

Audience: Maybe, consulting.

Jay: What kind of consulting?

Audience: Disaster planning

Speaker: Okay, what if you had a disaster consultant that was worth
$10,000 and on every call they got up $10,000 worth of disaster
consulting free.

Speaker: The obvious thing is, establish better rapport. Do you even buy
them lunch?

Jay: How many insurance companies are there in Northern California you
could deal with?

Audience: Probably, 35 tops.

Jay: Are those 35 do you know the decision makers in each one?

Audience: No

Jay: In trying to get an answer, we are being a little bit surreal because
you came to us for help. I was talking to a dentist. When I address a bunch
of dentists about four weeks ago. I was supposed to give them my three
way and they besieged me to work on two things. Getting more referrals
because the referrals were down 40% on average and getting more
people to go forward with their cases. The first thing I said was, "Do you
have a referral program at all, in place?" They said, "No," I said, "Then get
one." Next question. First thing, is to figure out who they are. Then
contact them -

Speaker: Contact them and ask them, what's not getting done right.

Jay: Remember what Jackie Hall said. Say, “What did they do to get your
business that we didn't? I am not saying get every business but will you
help me maybe get some other business from another person's
competitor. I want to learn.” What would you say we need to do to get
your business in the future? Not just price; what services, what’s your
biggest frustration with whomever, what the perfect disaster service look
would like. What other services are there, packed in for free, and would
just be to die for. You think that wouldn't help really?

Audience: No, it’s good, Thanks.

Audience: First I want to thank you for changing everybody's lives here, I
think. It's been incredible.

Jay: Oh, you are very welcome. I thank you guys for sticking it out. I am
sorry that it's two o clock but for one day in your life; it's not a big deal. It
will pay such compound dividends and I am so proud of all of you and I
suspect, 90% of the people that aren't here, is not they retreated to their
room, they had to drive home. I appreciate you on tape, when you get
these, we are very impressed with all of you.

Audience: I know you can do 86 hours and you have done a lot less than
that. So once we leave here, what are we still going to be missing and
what should we be looking for?

Jay: Everything that you are missing will pick up on the conference call.
Here's what we are going to do. I am going to give you an easy way to
build a strategy. Then on the first conference call, we are going to
hopefully - get the tapes by January the 15th. If I were you, I would really
make a concerted schedule on your calendar over probably; maybe not
three days. It would be killer if you said to your spouse or your significant
other, alright I am taking off...you can’t afford three days, given it's a
weekend; take off half a day or whatever you can, go in early and listen to
it in big chunks. Have your pen and your pad, your previous pad in hand.
Make lots of dual things - connections and questions. There's going to be
tons of new questions, new issues, new thoughts that you are going to
have, that you didn't have before. If you can submit them in advance to
Carl or Rick and I could sort them; most universal most unique - it will be a
lot more productive. I’ll knock all of those out and depending on what we
get covered in the next half an hour; I may or may not go into more
strategy building with you. Then, we'll figure together what you didn't get,
because you'll know. You will listen; you'll compare it to whatever the
promise was. If we are short on something, we'll use the calls to do that.
The good news is you haven't begun to meet the kind of people I have, as
expert friends, have they Mac?

Mac: No

Jay: So what I’ll I have to do is figure out what I or the experts haven’t
given you or what you still need or what new breakthroughs I have
realized or have come to me, because I have all kinds of experts
constantly coming to me. I have the ability to do some nice things for
them so I can get them unhedgingly, not trying to sell you a darn thing, to
get on the phone and let you pick their minds clear and since you don’t
know necessarily the best questions to ask, you’ll have me advocating for
you. If I hammer them in and push them and ethically bribe and tell them
what a cute guy he is or what a beautiful tie he's got, I can get Mat Ross
also on some of the calls, what do you think?

Mat: You mean I can keep the tie?

Jay: If you really want it to, sure. You'll give me Q and A. We'll should have
peer confirmation where many of you will have gone out. In that two or
three weeks, before you have our first call, you'll take in, what I'll teach
you to do with your strategy here. You will have found couple of easy,
quick, very low effort, low risk, and low cost ways to try it. You'll have
validation that you will share just like the 502 case studies you will read
when you get home. You will share it on that first call and that will inspire
the others of you and you will still be able to be in the mindset of being
open, intimate and vulnerable. You will be willing, if you don’t get it or if
you are afraid to take action or if you took an action and didn't get stellar
result; to be candid and honest enough to say so. Either I will help you
through it or more hopefully your peers will, who have already done it.
We'll keep doing that, and doing that, and doing that, and doing that until,
a year is gone, does that make sense?

Audience: I was wondering, has anybody heard of the book, 'Science of

getting rich?'

Jay: Who is it by?

Audience: The science of getting rich, it's by Wallis Wattles. It was

written about 90 years ago.

Jay: Is it really great?

Audience: its 60 pages long.

Jay: Can you summarize it, in case we can’t find it?

Audience: It talks about how to bring - it's bringing out of substance

using a certain way of thinking...

Jay: ... like manifesting something?

Audience: Yeah, manifestation - it's a certain way of thinking that is

connected to being poor and a certain way of thinking that is connected to
being rich. It doesn't really have to do how much you have got in your
pocket, because there are poor communities that have relatively -

Jay: To understand something, I'd interrupt you for a minute. Wealth -

true, pure, real wealth has denominated in so many bigger areas than
financial. You need money to pay your bills. You need money to gauge, I
guess, some measure of your commercial success. True wealth is
denominated in many forms, as you'd hopefully have gotten the
opportunity to understand, demonstrate it and reconsider; in this
environment. When you realize what true wealth means - I was telling
someone Mac, and I’ll tell you guys this too. I made more money when I
was younger, not because I wanted to make money but because I was
obsessed with seeing businesses be all they could be, sounds like the
marines, get all they could, impact all they should and really reach their
fullest potential. I went through a divorce and I had a seven figure
overhead. I tried to do everything to make money and I did very, very
poorly because I was obsessed with making money. I then decided, screw
that, I am not having any fun anyhow. I am going to find people I like and
purposes that really make me feel like I have made a difference; I am not
going to deviate from that and I am not going to please everybody. All of a
sudden I gained enormous psychic wealth and guess what, with it, as a
wonderful unexpected by-product. My financial wealth grew. I don’t know
what your book says but -

Audience: It's a small book. It's kind of a recommended reading on my

website.

Jay: Where can you get it?

Audience: You can get it at scienceofgettingrich.com

Jay: Okay, so somebody's reprinted it, that's good.

Audience: There's a little forum as well. The reason I have mentioned is

because it's an issue of worthiness. It talks not only about the science of
getting rich but what the attitude, we need to have, in regards to money. I
am not sure if this is in the book but my concept of being wealthy is a
sense of not being in the state of lack. So even if you have a million
dollars, if you feel you have not enough, then you are still poor. But if you
have just five cents in your pocket and you feel you have enough; then
you are rich.

Jay: Thank you, I was reminded with the quote I started with - two days
ago, about; it's not are you worthy of the goal, its if the goal is worthy of
you? The goal is whether you can do so much more and you can't realize
that - You have to do more. Do you want to let a lot of other generic
competitors to serve, steal productivity, profitability, protection,
enjoyment from people because they under-serve, undervalue, under-
contribute to them. Do you want to let that happen? Are you amoral
enough to let that kind of an atrocity happen to well deserving, trusting
people? You can't. What's wrong with being rewarded after that, nothing.
But the reward is the bonus; It’s not, in my opinion the goal. Don't you
think?

Audience: I just wanted to share the benefits of a few thousand dollar

research I did with this group of diehard-success entrepreneurs. It has to
do with copywriting. The gentlemen asked earlier and Mac gave excellent
answers to it. The reasons I got back up here is because, almost
everything that Jay talks about; you talk about leverage. If you can write
good copy, you can find someone and judge it; it shows exponential
results. How many people in here would really like to learn to write better
copy, which might be beneficial for them? Just so I know if I am wasting
your time. I spend about four thousand dollars this summer buying all the
courses I could and trying them out to find the one that really understood
at a deeper level. I read Claude C. Hopkins. Do everything that Jay says. Is
it appropriate for me to recommend a specific course here, now or should I
have them come see me at my table.

Jay: Who is it by?

Audience: Michaels Masterson's course. Do you know it?

Jay: I don’t know it. Is it a good course?

Audience: It's very good. It's a home study course.

Jay: I really respect that somebody came up to me and said, I want some
help but can I send my book for critique, I don’t want to sell it to anybody.
The intent of all this is to contribute, not to mine the wallets of one
another. I am not saying that's what your purpose is. I have no problem
with that. For you it's the best thing to do. For you it’s very purposeful. I
encourage everybody to investigate, examine and check it out. Also, one
of the things [unclear 00:03:44.29] didn't talk enough on - he's wildly
incredible on due diligence.

Mac: He needs to be.

Jay: The point is, he really is. I watched him do some incredible things and
he taught me how he looks at deals.

Mac: Good

Jay: You guys should look carefully at everything, including books and
things that you read.

Audience: So should I tell them what the course is?

Jay: No not right now.

Audience: Ok

Rick: Hi Jay, my name is Rick. I am a success coach and I deal with

anywhere from people that are professional NASCAR champion drivers, all
the way to the brilliant minds in Hollywood. My question to you is this. I
was hoping to hear something about people that invent products and they
patent them. I have a client right now whose biggest problem is that he
has great stuff but his biggest fear is he doesn't want to spend half a
million dollars on patenting something.

Mac: Why doesn’t he do it himself? The US patent office has a great

online presence. You just go to US patent office, click on it and its self
guided, it will take you through it.

Rick: No, the question is. Thank you for your input but the question is that
he's biggest fear is to invest all that money, or go through that process
and have a MeToo company come and create his product?

Mac: If a MeToo company comes and creates his product/process and he

has it patented, they will all give him a lot of money. That's what patent
means. If he gets the patent he has the rights to exploitation of that
product. If he is afraid of being knocked off he should find himself a good
lawyer but that’s the process. He maybe doesn't have to spend his half a
million dollar.

Rick: He thinks there will be a MeToo company based on -

Jay: He's not going to do anything?

Mac: Life is inherently risky.

Jay: A lot of time the first one in isn't necessarily the one that wins, so
what, if he hedges his bet, does his services himself, what's the downside.
If he doesn't want to do, he can flip it. He can get it registered and go out
and sell it; joint venture. Usually, mostly people don’t look analytically and
pragmatically enough. In the world today; United States, North America,
The Western Continent, all the way to you-name-it, there are affirmatively
so many companies that need works from you and what you or your client
has got. You just have to find them out and present it in a way that they
see it as the solution to their problem. Remember what I read in the
strategy pre-eminence? What you are really saying is, this person is so
afraid of being knocked off he won’t even try.

Mac: Does he even know it's a patent application process. Has he

explored what's patentable and what's not?

Jay: Did you understand how he can protect it? Maybe some of his patents
aren't that original. He should go for it and find out, shouldn't he?

Rick: I absolutely agree.

Jay: Well there’s your concept.

Rick: Okay thank you.

Lauren: Good morning, everyone. My name is Lauren. I am actually a
high school student. I am seventeen years old.

Jay: Are you having fun?

Lauren: Oh, very interesting.

Jay: From where?

Lauren: Algrove, California near Sacramento.

Jay: Good deal.

Lauren: I was curious, what job markets should I get into?

Jay: Let me tell you what I tell my son. I am going to give you a theoretical
concept. He's never done it but it's what I would do if I were a seventeen
year old. I would sit down with the Yellow pages. I would cut out the first
couple of yellow pages that have the descriptions of different kinds of
industries or categories. I would then go online and look up some websites
that describe what those categories do. Then I would think about myself
and I’d make a list of, as much as I know about myself; what I am? What I
like? What are my talents, strengths and weaknesses? Then I would
overlay my very superficial sense of what those kinds of industries were to
see if they seem compatible to the skill sets or the passions that I have. I
would shortlist from 400 to 25. Then, I would get the major Yellow pages
of 25 or 30 major cities. I'd find 4 or 5 companies that look meaningful in
all those cities. I would call up and ask for the name of the owner of the
president. Or if it's a category you decide you want to be, like an architect
or musician, I would then call and I would be honest. So I'd say, "My name
is," What's your name?

Lauren: Lauren Shostrum.

Jay: I’d say, "I am from," where?

Lauren: Algrove, California

Jay: "Which is close to," where?

Lauren: Sacramento, the capitol state of California.

Jay: "I will never probably be a competitor to you but I am seventeen. I

am on the precipice of my career. I am getting ready in a year to go to
college. I have a lot of choices. I want to not just be strategic but I want to
be purposeful and fulfilled. There are a lot of people I have observed; my
father has shared with me him get to being 40 or 50, building a business
and they are unhappy or in a career which is unfulfilling. I'd like to
honestly ask you a few questions that might help me make a better career
decision and it's the kind of thing I think you'd probably hope that maybe
your son or daughter might either have done or could do if they were in a
situation like this. I will be forever appreciative. If you are kind in giving to
me I will promise you when I am in a position to do so, I'll be too happy to
do it for someone else that I can pull up that you clearly do." For most
people, if you do that from the heart, whatever words you use, will say,
"Yes, I have done this for lots of people." Then you ask if you could do it
now or could do it later. You ask them a few questions. Number One, do
you really still like what you do. Do you love what you do? Do you love
what you do, more than you love who you do it for. Would you go into it
again if you were doing your life over? Would you recommend it to young
people as a career? What's the most fulfilling and exciting thing about it.
What's the most frustrating and limiting thing about it. What are the best
attribute, skill sets and character traits to have to make it really
successful? What's the most dangerous ones' they have to make it
miserable? Who influenced you most about this? What do you think is the
most important attribute, trait I have to work on or master in my
education? How would you start? Questions like that. You do that 25 times
in 20 different industries you have got a hell of start. Don't you think?

Lauren: Oh yeah.

Jay: Does that help?

Lauren: Heck yea, Thank you so much.

Audience: (Applause)

Jay: Mac, should we tell them the secret. Building strategy is not that
hard. We are going to build you a strategy really quick. You can do a lot
more. The first we have got to do is realize you have options. They have a
lot of options, don't they?

Mac: More than they know -

Jay: You got to first of all figure out what strategy if any you are following
right and why you are doing it. There are numbered questions in the
workbook, aren't there Rick?

Rick: Yes, there are 24 pages of strategy type questions.

Jay: First thing you have figure out, what you are doing, what you are not
doing. Why are you doing it? First you have to figure out, what now is my
strategy, if anything. Why am I doing it? Is that not only sensible but is
that the highest and best strategy that I could be doing. You can't answer
that until you start looking at and listing alternative strategies. You can't
list strategies till you figure out what you really want for and from your
business. A lot of people will say, "I want it to be the fastest growing
business;thebiggest business in the world." I'll say, "Why?" They'll say,
"What do you mean?" I'll say, "Are you doing it for ego, are you doing it for
money, do you want to sell it, do you need power you think?”They don’t
know. If you are just doing it for money, why would you want to manage
400 people if by changing the product mix or the residual value or getting
better back-ends, you can have one-tenth the number of employees, one-
fourth the amount of inventory, one-twentieth the amount of management
headaches and make the same amount of money. Does this make sense
to you all? You have to consider the options, the alternatives, the choices
and the possibilities available. The easiest way to do that, I think; I am
going to tell my idea, you tell me yours, is it okay Mac?

Mac: If I have one that's different than yours.

Jay: Then you start looking at the other options out there. If I were you, I
would start by doing a bunch of things that are cool. You can go through
back-pages of things like Forbes. A lot of those will tell you what the
strategy of a lot of people are. I would highlight them and type them out. I
would go through a list of all of the business models I could look at and
understand. What do you think Federal Express' business model and
strategy is? Do you want to pick up on this? Do you have a different
approach?

Mac: I am just interested in yours.

Jay: I am looking at some easier ways to start. What I do is different. I

have my mind so wired. I have so many experiential possibilities I go,
cross-reference, look at it, and pass it by a lot of subconscious reference
points and experiences. I can, BOOM! DING! Out comes an answer. But I
don’t think most people can do that, do you?

Mac: No, not the way you do it. No one can.

Jay: I got a lot of experiences to draw from. What I would do is start from -

Mac: But I do think that there is, after you do the work, at some point the
process will go, just like Jay said. You will deliver your answer. It won't be
Jay's answer but it will be your answer if all your research and subjects are
aligned.

Jay: Say it again, because I am sorry, I was making a suggestion...

Mac: I was just saying, that I think the same process that if they do a part
of that exploration and immersion in their options; at some point their
unconscious system will kick in and will generate.

Jay: At this point in your life, you probably won’t get everyone but as a
group you can share your 20 or 30...

Mac: Another thing is, I think Marc Victor had a part of this but, I use a
similar technique when I worked with someone and I am stuck on that. I
say, "What do you want to do, just tell me, now?" Tell yourselves, now. If
the reason comes out, not so hot, maybe revaluate it. If it's a reasonable
plan with a reasonable motivation that can be sustained, then do it. You
can adjust; you don’t have to stay with it forever.

Jay: You could change the rules and play the game differently anytime
you want. Right now you can change your strategy today and you can
change it tomorrow, change it until you find a better one.

Mac: There's a very interesting principle called the law of requisite

variety. It basically, when it all comes down is the person with the most
option wins. If you have a lot of options and you know your options, you
can pick the best course and you will win.

Jay: Did I tell here, that I did two things back to back. Did I tell the story of
the cubic zirconium?

Mac: I don't know.

Jay: Did I?

Audience: No.

Jay: Let me just give you a difference between one strategy and another,
then you can start looking at things. I have two friends. Both of them are
fascinated with cubic zirconium - synthetic diamonds. One of them was a
world-class copywriter of massive distinction. The other was a world-class
strategist and was a very discreet guy. Copywriter number one, who is
brilliant and renowned sat down and came up with a really cool concept
called the Beverly Hills Diamond Company. He had a really great AD. He
ran it in newspapers across the country. He was selling a one carat; lose
cubic zirconium for $39. He was okay. He made about 20% of his money.
He was [unclear 00:00:21.00]. He basically gave up and got tired because
he made a few tens of thousands of dollars and gave up. Friend two was a
super strategist. He understood the difference between a tactical
approach, a stupid strategy and a great strategy. He sat down. He wasn't
as good a copywriter but he was millions times better strategist. He came
up with a cool name. He was called Van-Cleef-Tiffany. Which is an
amalgam of Van Cleef and [unclear 00:00:52.13]. He had a Vance Cleef
Diamond which was a proprietary equivalent of a cubic zirconium. His AD
was 80% as good as reference case number one. He didn't make money;
he lost money on the stone. But the first person strategy was, let's sell
cubic zirconium and do something else. Friend 2 who was a super
strategist, when you got the stone; along with it were a couple of things.
First a letter; you'd open a letter. It said, "Congratulations! The good news
is you are probably almost shocked by how much more brilliant, dazzling,
sparkling, radiant, fiery the Vance Cleef diamond is. It's so much more
alive with beauty, much more so than a normal diamond. Number two, it
probably appears to be smaller than you probably thought. It's not
because we took advantage or ripped you off, it's because a Vance Cleef
diamond has more density. It has more weight per unit volume. Because
we have found that the vast majority of our clients, once they see how
beautiful these stones are, want to upgrade to five and ten and twenty
carat stones. Then they want to have them set in beautiful and majestic
rings, bracelets, earrings and etc. As a service, to protect you from over
paying, we have gone out and negotiated wonderful arrangements to take
the gorgeous five, ten, twenty carat stones and set them in beautiful,
fourteen, eighteen, twenty-two carat settings. Because of the
inconvenience of sending it back, we are only too happy to give you
double credit, if you'd like to exchange it up.” The difference between
strategy A, which made about three or four, ten thousand or twenty
thousand dollar per month, happen to be privy to the dynamics. Strategy
B, which made the friend of mine, 25 million dollars is a pretty big
difference. Don't you think?

So you might want to study different people's strategies and then,

because you are now extrapolators, fellow visionaries, importers of other
people's ideas and thought processes; ask yourselves, can I apply that
strategy directly and if so, how would it look and what changes would it
make to my business? You sort of do a kaleidoscope until you find certain
ones that make sense based on a couple of critical factors. Number one,
really knowing what you want and what you don’t want. I believe you
don’t really know what you want until you first find out what you don’t
want. A lot of times that is experience, but you don’t really step back and
acknowledge or verbalize it. Number two, I think you have got to do some
soul searching. Lot of the people in this room, it's not at all anything to be
shameful off. You are really into a lot of this for a lifestyle. Maybe you
don’t know it, don’t you think Mac?

Mac: Possibly.
Jay: I think a lot of them are. That doesn't mean [unclear 00:04:21.00]. I
just spent years; if I made two or three million dollars and my overhead
was a million, I'd stop. I do a seminar till I made a couple of them, then I'd
stop and have fun. Didn't I? Then one day I realize I am 54, I have got
seven children, I've got a younger attractive wife. I have got a brain that
happens to be very blessed with enormous mental acuity but any moment
I could have a blood vessel burst or heart goes pop or any number of
things. My intellectual capital has no monetary value at all. I want to turn
it into equities and joint venture asset streams. You've got to figure out
what you want right now, but all things being equal and Jay Abraham
being master of residual leverage and minimum downside risk, it seems in
all true candor that if you are going to do it anyhow, you might as well go
for the maximum residual value - the maximum control - the maximum
asset value - the maximum sellable value. I have got to tell something. It’s
a question that may pain you a little bit but I am in such a lovingly giving
mood, I am going to tell you something very candid that I don’t say that
very often. To tell you the truth but 99% of the people that have come to
programs like this to me or coming to have me help them grow their
business - make it better - save it - turn it around, they ask me to that;
they don’t say, "Jay, should I stay in this business? Is this the highest and
best use of my time, my opportunity, my passion, my purpose, and my
possibilities? Is this is the vehicle that's going to give me the most joy, the
most profit, the most sustaining cash for the most freedom?" For a lot of
you it isn't. It's not something bad. It doesn't mean there's anything wrong
with poising your business to sell it, but you can't sell until you put a
strategy of sales and exit-strategy. Am I being confusing?

Mac: I don't think so.

Jay:Does this make sense?

Audience: Yeap.

Jay:We promised you written strategy but what I have you do today is
write down the answers to all the questions and start a quest. This is not a
setup. I have a very simple philosophy. I can't tell you about the things
that I am doing, like not self-serving; that are economically beneficial to
me until I give it a certain amount of value. I am almost there but I was
about to tell everybody, when there were 650 in the room, that we are
doing a $25,000 strategy setting, super summing it. Either in the end of
March or the end of April, we haven't figured it out yet. We want to do 25
people and we'll do it for 25 grand but you can delightedly come and we’ll
give you a full credit for this and give you a $10,000 discount and you can
pay the 10 grand over a year or so, because we want more quality people.
As we have been trying to put it together, I have been looking online
trying to figure out who’s got good examples. One of the things we are
searching right now, which are hard to find, are investment analyst
reports. They are pretty good at summarizing what someone's strategy
really is, in a paragraph or two. No one thought about that. I have read
lots of them and already find a lot of examples so I say, "Go to a bunch of
investment strategy analysts". Don’t you agree?

Mac:That's true.

Jay: We collect a lot of stuff from Forbes. We look at companies that we

admire that are the leaders. You can go to all their trade publications and
see. There are a lot of frustrated editors who are flattered if you call them
and they are not too busy. You can ask them a lot of questions. Who’s the
best performer in your industry? What's their strategy in a nut-shell? Who
do you think distinguishes them? People don't understand. I am insatiably
curious for two reasons. I love to learn more than I love anything else
because I know I know so little and I expand my possibilities, options,
leverage, and competitive advantage by knowing than everybody else. I
have more options. It's hard to pin me in a corner, isn't it?

Mac: Yeah. Like Spider-man.

Jay: I can figure a way out of anything, can't I? Because I have exposed
myself to so many options that I can create the most effective, the most
powerful strategy. If that strategy isn't working as well as the superior
one, I know how to move into it and transition and bridge. You have
options. If you don’t know what they are, think about them. A client of
mine, years ago before I met Mac, was one of the world's leading expert
in, rental property. I didn't talk about this, did I?

Mac: Not to my knowledge.

Jay: He had a very simple philosophy. I was very impressed with him. He
said, "Once you decide you want to decide a piece of rental property; a
house or a multi-family unit. Don't you dare buy anything until you first
looked at a hundred. If you don't, the first thing you are going to look at;
you are going to go for it because you want to buy a rental house. Only by
looking at a hundred do we see the better options, the better sizes, the
better lots, the better assets, better deals, better terms, and better future
growth potential." I'd say the same thing to you. You would go, "Oh, what
should we do today?" I'd say, "First let’s maximize the stuff that's going on
right now because it’s in place. Or, let’s stop it, because it's costing us to
work. We are losing upside leverage”. While I am doing that, using some
of the money that came from it, I will search out options. The one thing I
would encourage you to do, now you are going to have each other's name
and everything, is take an oath to figure out 50 or a 100 different business
model strategies and then share with each other and share with me. I will
give you something great for the collection. It will save me from some
trouble. Then you will have a palette to judge from. You will find that when
you do that, as we are finding there's probably a 50 or 100 or less; true -
let’s say, macro strategies and their nuances. From those macro's, you
can probably carry out the Pareto Principle and find 20 that most likely
seem like the most adaptive to you. Again, the assumption I am making
which maybe disservice to you or disrespectful, is that you probably aren't
operating right now which what I call the Optimal Business/Marketing
Strategy. You maybe but I think it's highly unlikely. Don’t you?

Mac: More than likely why they came.

Jay: Also, being honest with you, maybe not now because you might
mentally work through and impute it that its fate what you are doing in
business. However, most likely 80% of you - if we had the time and if we
had the energy, and I am willing if you guys want to go for two or three
more hours to bring you up and do a mini [00:03:36.08] and prove to you
but I bet 80% of you aren't really tactical and your strategy isn't strategy
but you don’t know it. Want to take that bet?

Mac: No.

Jay: Right now, you got all the answers. What I do first is right down the
questions I gave you. Anybody did a good job at writing them down?

Audience: I am tired.

Jay: You are tired, I respect that. You did, you want to go to the mic and
read them so that everyone can write them down and start working on
them.

Jay: More fun than what? Don't tell me about Raggedy Ann Proprietors. I
don’t want to hear that. We are getting close and you guys are great. I am
very proud of you. It's not as hard as you think but it's - why jump to
answer when it's the wrong answer. It's taken you five years to get to this,
another week two or three - is it ever going to make a big difference. A
friend told me this one time and it's indelibly embedded itself in my brain.
It's pretty profound and I'll adapt it to this. I'll tell you the story. I was
working hard, trying to make a lot of money so I could support my then
two kids and my twenty year old wife and our very non prosperous life
style. I was working every night until twelve or one at this company where
I didn't get a salary. I just got the piece of a performance. The guy worked
late hours too but you have to be a multi-millionaire. He was rewarding
me but he did one very noble service for me one night. He came out on a
Friday. He loved money and very much a workaholic. I became one sort of
accidently by his influence. He said, "I am going to tell you something
which I shouldn't, it's going to be important. The odds in five years of you
being in association with me are about nil. The odds of what you are
working on right now being relevant to your life are about zero. You'll look
back on this it will be like a pimple on the pickle of time and its
inconsequentiality. I would encourage you to have a more balanced life." I
would tell you this if you don’t get your strategy formalized in the next few
days or before you walk out of this, given the fact thatyou have twelve
months of access to me and some of my friends who I end up being on the
call be it Mac or other people you have got or new people I introduce to
you, who I pluck out of the world because they owe me favors. I get them
to work on strategies elements that are above and beyond my
understanding that they can articulate clearly. What I would do right now
to figure out what in the hell you are doing. Why are you doing it?Whether
or not, it really is the right thing to be doing? What business are you in,
why are you in it. Whether you should be positioning it for maximum
success in short term. To get out of so you can use your time, your effort,
your capital, your new found marketing wisdom, your compassion for
humanity at a higher level or not. How many other options you have got,
how many others - directly or indirectly - translate it to your business and
what difference it might make in results and competitiveness. What you
should be doing with your time to basically going from great to brilliant. I
am getting a bit tired, Mac you want to fill in because I don’t know if I
gave them a good idea or not.

Audience: (Laughter)

Mac: I think the strategy, of picking a strategy initially and trying it out, is
the right strategy. Don't say I only have one path because as the dictum
has it, "If you don’t know where youare going, any path will do." Have
some alternatives. Look at least two or three things you could do and pick
one.

Jay: Yell Out, where is your favorite place to just luxuriate and recreate?

Audience: (inaudible)

Jay:Let’s take Mexico. Let's presume I have got a really beautiful time-
share in [unclear 00:04:33.29]. It's glorious, majestic, it's up on a hill, it's
magnificent, there's nothing around, it's private and in a gated area which
is really cool. If we want to go there we have a lot of options. We can drive
part of the way. We could take the train, part of the way. We could take a
boat, here goes there. We could fly and stages. We could fly on one
location and drive. It depends on the adventure, the experience that we
want; the time we have to do it and what gives us the most joy visually?
Whether it's getting there or the process of going there or a combination?
If we don't know then we are probably not necessarily picking the best
one. I think we need to know ourselves better. I think what I have tried to
teach you is; to not be afraid to know yourself and to like or love yourself
and love others.

Mac: May I suggest, because in the interest of time, that they pick their
best strategy from their list of strategies and the exercises they have done
from the last couple of hours.

Jay: Have you guys done anything in the last couple of hours that have
produced a germ or a foundation of a different strategy to think about?
Any of you thinking about giving strategies? Yes

Audience: Yes

Jay: Okay then we will start with what you already know and then go
around the room and share.

Mac: Yeah, maybe we should go around the table and maybe we should
come down from the Olympus up here and talk.

Jay: I get a little philosophical. I have been pretty good most of the times -
Haven't yelled at anyone. Somebody give him a list. Read through it.

Audience: Okay, what's my strategy now? Is that my highest and best

strategy?

Jay: Also, Why? Why am I doing it? What is it, why am I doing it?

Audience: What do I want from my business?

Jay: Isn't it wonderful if a bunch of people hear the same thing, they get
different things they hear and write down.

Audience: What business are you in? What are all the options and
choices you have now?

Audience: Look at the back-pages of Forbes for strategies - other

resources for additional strategies. Go through a lot of business models
that you think you can understand.

Jay: What I meant to say was make a list of the most successful and non-
fanatic businesses that you know. Fanaticism is something; I don’t think
most of you really want. I look at companies that seem to be very well
organized and consistent and continuous. See if you can write down what
their strategies are. Anything else you got?

Audience: Think about what you want to do?

Jay: As opposed to?

Audience: And what you don’t want to do?

Jay: Good

Mac: Or what you are supposed to do.

Jay: What else?

Audience: Then you said answer the questions and start a quest.

Jay: Write that down. Answer the question and start a quest. Anybody get
anything different?

Audience: What should I do with my time to be truly diligent?

Jay: Based on those three most important things and seven different
things in ranking - good - that's right. Okay, that stated and writing this
down, we'll make this the exercise we will work on our first conference
call, but now let's do something different. Let's take the two or three
strategies that you have come up that maybe popped into your mind,
based on what's happened today or even anything else that is different
than what you are currently doing. Pick right now the one that makes the
most sense as an extension, a modification and as a replacement of the
one you are currently using. I like your tie; I didn't notice that, that’s a
beautiful tie. Pick that one and go around your table and present it, then
we'll do one more thing and we'll wrap.You get to meet some really - cools
my, I thought, cool's a pretty cool word. It's like, things are really cool. It's
funny, neat, interesting, fascinating, poignant people. You'll never see
somebody like William Herby that was from the heart. He's never done
that like that before. You'll never see most of the speakers speak at this
level without trying to sell you anything. Without trying to hold anything
back. You'll never see Bob Allan trying sell his book to you because I asked
him too. You'll never see in the last minute a [unclear 00:00:49.04] getting
team 1 setup in a day so that we can have it here, even though it didn't
work perfectly and not charge us so we can demonstrate that to me. It
wasn't for you to see, it was for me to get excited about it but they
wanted to show me how committed they were and you'll never get
somebody like Jackie Hall who was not going to do it who we asked to do
it. She drove and would sit there and had fun with it. She has a process.
She gets paid $75,000 to $250,000 per client. She simplified it and if we
had a little better communication I would have gotten even more of it.
You'll never get people to tell you everything that they are doing and how
it applies to you. You'll never get people to be as contributing. Now, you
have got to take that wonderful, wonderful, unique, rare and probably
wondrous experience and replicate it every day in your own
circumstances. I got about twelve people, maybe more; I'll have to count;
who make this possible. I sit around like an eclectic mad scientist - very
giving, very loving - but not quite as easy going as I probably may seem. I
can be very tough. I am the worst of all worlds. I am the imperfect
perfectionist. I have trained my mind over 30 years to see only the utmost
leverage and event and I make people feel very frustrated where I just
want to go higher and higher. When they were doing the event for you
where they had to tell what their biggest breakthrough was, I said, "That's
great but that's not the highest leverage". Learning what's working for
everybody else is an incident. That's real, that's like ten times more
leverage. I made them do again. I don’t want to let you down. Truthfully
it's not about you saying thanks to me, it's a model for you. I could have
done half of this and you would have been happy. I didn't have to stay up
last night till four and I don’t have to be here. I am not saying it so you
appreciate me; that's not necessary. I want you to appreciate what you
can do for others. Do you understand that? What you must; and it will be
evident. Hopefully you'll have a good feeling about me. You won’t be able
to have a similar kind of feeling about you. Not because you sleep
deprivate but because you pull out all the stops. You can only do it one
way. It's the right way. Like Spar and I have a trait. He would not do three
more layers. He won't let me have that right now because I made him
bring it. I wanted you to see the versatility. He said, "Jay, it needs five or
seven more layers." He does it layer by layer. He said he couldn't give it to
me, even though we trade it. He's getting my services. He can only do one
level the best. He knows he'll steal from himself if he didn't give you the
best. That's a very good model. I would steal from myself if I didn't
acknowledge everybody who made this look so great. I got a list and I
hope I do this right.

First of all nobody would be in this room if Carl Turner wasn't superhuman
amazing, not selling a marketing machine but consultative, noble most
trusted advisor of them all. I want to thank him from the depth of our
hearts. Carl, Thank you. He really cared.

Audience: (Applause)

Jay:Carl couldn't have done this without - you have no idea the
coordination and all the different majestic and mind boggling variables I
create for the poor man to try to shuffle and I insist, it’s like I promised
forty days and forty nights that we are behind. We have all these experts
and all these wonderful contributions. You would have been happy with
three or four but we had sixteen and I said, "We promised I’ve got, we got
to get them out." He said, “We could use them for something else." I said,
"We can't, that wouldn't be ethical. We got them for you, we got to give it
to you, whether you sign up or not" but coordinating all this is incredible.
Tanya; Car's assistant, has been like amazing. She's coordinating and
doing remarkable things. She's got things I wanted to add - "One more
workbook, one more workbook" thirty, forty grand a piece. "One more!" -
She got is done. I started doing the strategy and pre-eminence thing and I
thought, "Damn! I wish I would have edited before." I didn't think about it
until - because I change my mind in the middle hours of the night, I
thought, "Okay, what's almost as good?" The chapter of my book isn't
anywhere close to as good but it's very clear and compelling. You can read
it every morning when you get up and every evening when you go to bed
and I thought, "Take this and get it done", "Okay no problem, I'll stay up all
night. I'll sit there with my eyes sort of half-open leaning against the
coffee machine at Kinkos coz it's important to you". And she's done that
for Carl all along, Tanya, thank you so very much.

Audience: (Applause)

Jay: I am very, very blessed. I have a daughter who - I was very young
when I had my first set of children. I wasn't very close to Michelle but she
came back in my life and got very involved in learning how I think and
trying to understand all my good points and also my bad and buffering,
the irrational, emotional, spontaneous - I have a slightly acerbic side and I
have a jig-saw tongue that unfortunately could slice somebody to
smithereens ifit’s not kept with a shroud over it. She’s a good buffer for
me. She's a wonderful person to use my mind-set and methodology
constructively to compel and inspire people like hotel managements and
printers and things. To do things they normally wouldn't and she’s really
wonderful. She's made a lot of this possible by thinking all kinds of
connections for you that you wouldn't know would have made this a lot
less joyous. So Michele if you are here, thank you so very much, I love
you. Very proud of you. She was uptill four o' clock for two nights in a row.

Audience: (Applause)

Jay: The hardest job of this is trying to be that of a, what I am going to

call, it's going to be the wrong word to colleague but it's more of a like a
prodigy side-kick. I am the kind of person that thrives on doing - I mean I
have got so many relationships - I am very, I can multi-task. I can
multitask like 20 things at a time and keep track of them but I am a slob
and I don’t have a lot of time for people and I am very, "Okay, let’s get to
the bottom line and give it to me and move on". Rick Duress took on the
owner's responsibility of supporting me reading all the support documents
trying to figure what I wanted without me talking to him and then me
second guessing him. Constructively critiquing him for things that he had
no idea that I wanted because I didn't tell him. But after the fact I saw it
was what I wanted, he wasn't like, "Oh Shit! Screw you, you S.O.B." But he
didn't say that, he said, "Okay, we'll do it right". He's a glorious man. He
left his family at home. He flew out thanks-giving weekend. The weekend
before that and the weekend after that to make sure not only everything
was created for you; workbooks and everything else, but we set the
criteria. We set the bar for the speaker so they could only operate at their
highest levels of glorious greatness. Levels they really don’t perform at for
most people. Because we expect, we draw, we bring out and we only
allow greatness. And he helped make that all possible. Every day, every
night he is coordinating, he's facilitating. He's watching me being
emotionally volatile about things and he's handling it nicely because he
knows I don’t really mean it and I get over it. He's a wonderful man, he's
given fully. He understands a lot of things. He's really made an incredible
contribution to you in ways you don’t know and he should be
acknowledged greatly because a lot of things you've got there is because
he stayed up for four five hundred hours doing things which he wasn't
even paid to do. He wanted to do it to be a part of it. So you should thank
him a lot.

Audience: (Applause)

Jay:Debby Byers, Carl's other assistant is just done a herculean job of

everything that needed to be done for Carl, for Tanya, for you guys. She
did it. We sent her somewhere, she'd do it. You needed something sent,
she'd do it. You needed something emailed to you, she did it. You need
something followed up, you needed something to confirm, you needed to
coordinate it - she did it. She's up right now, it's almost four o clock. She's
here. Debby where are you? Thank you so much.

Audience: (Applause)

Jay: I am not renowned for doing a lot of sensory, really impactful stuff. I
am renowned for being an intellect who is sort of in the ozone dolling out
highly intellectualized and cerebral knowledge that I hope, somehow you'll
figure how to tort things down. When I decided to do this program and
decided to make it a really special experience, I kind of asked Spar and
asked him to bring, not some of his art but everything from his home. And
the art he was doing for others. He did it. When I looked at I thought,
"Damn! this is pretty impressive. What are we missing?" I thought,
"Music". Because I am not really into music but then I had a bund of music
brought in and I was listening to it the night before and found myself, "I
am not very good at it - dancing, dancing" - I was a dancing machine and
thought, "If I can be a dancing machine and I don’t dance, what could I do
for you, because you all have rhythm". So I picked all this music. We
started playing it. Poor Dave is trying to coordinate people who were
switching seats and changing power loads and speakers were not
necessarily perfectly balanced and we just got feedback, nobody knows.
Me going *check, check* when he's going *check, check* - things are
popping. Albert Plasseo, who’s come to tons of our programs just ardent
and wonderfully gifted devotee. I know he's helped us with all kinds of
other things, he jumped out. He became the musical director. He
coordinated - he found the music. He's done nine million things and he
needs like special double secret acknowledgement. So, clap, clap, clap. So
thanks a lot Albert, you are great.

Audience: (Applause)

Audience: ...you tell us which three were yours.

Jay: I did, you were in the bathroom.

Audience: Oh...

Jay: Can you guess again?

Audience: My guess would be that one.

Jay: I would like that one, he won’t give it to me. If he will that would be.

Audience: Go and buy it, you can afford it.

Jay: You think he'd miss it if I just took it to my room.

Audience: Nah

Jay: He probably doesn't have an inventory

Audience: That looks like a tie of yours. That looks like; you and other tie
is over here.

Audience: Okay, my guess is right there, that one, right there.

Audience: Oh, who else is in the bathroom besides me, sorry.

Jay: I like the tree too. It's a rose on the top. The grapes in the back. The
two cylinders one at the front and he's got two nudes and I have five or
four or some number other ones at home.
Audience: That one here.

Jay:No, but I wish it was. I like that nude and that girl and the nude out
there and if he'd give them to me, I’d take them.

Audience: It's a lot safer being a married man.

Jay: No, my wife is waiting for the nude too. Somehow we started with I
was supposed to get the nude but I ended with a heart. I don’t quite get it.

Audience: You are looking at this. She's looking at the hands.

Jay:You see them as hands, right?

Audience: (laughter)

Jay: I guess it's half full half empty, isn't it? Let me continue because I am
going to fall off this. I am a little bit tired too. Albert's lucky to have
someone else in his life who's really cool and helped out massively
including helping us. Leece, where are you?

Audience: She had to go home.

Jay: She did great. She worked on us and she was wonderful. Gary’s
hardworker where are you? Hi. You have done great things.

Audience: (Applause)

Jay: Carlton where are you? I can't see. I am going to read all your names.
Rita Davis, Andrew Hargider, Karen Anderson - she's wonderful she
watched my kids. She does anything that needs be done. Terry
Friedrichson, my assistant. She's not used to staying out doing thing.
She's pro acting, she's coordinating, and she’s smiling. I am not easy to
deal with.

Audience: (Applause)

Jay: Very lovely person. She's got the most wonderful personality. You
want to have an incredible auditory sensory experience, call and ask for
Terry and listen to her. Happy jovial, hopeful, joyous, just invigorating
smile and voice comes across. It's to die for. Annie Labas. She's our most
trusted person and she's amazing. Justine Swallow, Tad Hardgrave, Will
Green these are participants. Faith, Michele Green, Will's Daughter right?
Earl Savilson - you all here? You guys are great and the way you guys have
helped me a lot. Without those people most of this wouldn't be possible
and they have stuff to do when we are done. We got a lot of other people
and I hope I do it justice. In order. Mac Ross has been with me four almost
every mastermind marketing that I have done. The only one he wouldn't
have done would be Australia probably. In this one I didn't even let him
give the content. I tried him this one. It started out as just being one that's
going to be done just to my list. I put together a killer list, don’t you think,
of experts. It didn't allow us to do everything we wanted because we
didn't think that was important is breaking through your mindset and
strategic and all kinds of other connected issues that I felt would make my
marketing material so powerful. Like with the preparatory stuff, with the
stuff I gave in the workbook, you won’t believe how good that is. With the
surprises we gave you. You are going to have more content than you know
what to do with. Without the mindset, it's like having the hardware without
the software to drive it. This is going to change everything. Mac has got
more to give and he's like no non-sense but he's such a wonderful man
with such a breadth of perspective. He would have gone, that night with
you, till four or five. He’ll do whatever it takes for you to give yourself the
outcome you want. He's a remarkable man that I truly admire.