MAKING THE MONEY CONNECTION #3 SUMMARY November, 17, 1999, 1 p.m.

Successful Advertising & Direct Mail Methods for the Millennium Jay: Welcome and intros to: Michael Fishman Brian Kurtz Dan Kennedy Jim Rutz John Finn Mac Ross Drew Kaplan First Question: Is direct response advertising or direct mail still a viable strategy for use today by businesses either to build new customers, markets or resell old ones? If yes, tactical difference to maximize it. If no, whats taken its place? Answers: Brian K.: Very viable strategy. More and more. Come trying to incorporate direct mail into marketing and its just beginning. Michael F.: Absolutely still viable. Key to maximize is to leave out emotion. Dont limit yourself to familiar market. Stress the key benefits of your business to the buyer and why they should buy from you. Dan K.: More viable than ever. No other media can match. Avoid irrelevance. Be good at message to market match which means that the recipient clearly and quickly identifies and understands that you knew who you were writing to, that you knew a lot about them, that you are delivering information that is meaningful. Jim R.: Echo Dan. Sophisticated buyers want to know if theyre understood and if their problems are appreciated. Otherwise, more and more mail will be deposited in the wastebasket. Consequently, the mail must be done carefully and concisely because the moment of exposure is a split second.

Mac Ross: Complete agreement. The tremendous volume of mail creates a statistical drop off in effectiveness. So, if you want to make money using direct mail and direct marketing techniques, you must do targeting. Whos buying your time? Drew K.: Direct response bigger than ever. But must be tied in with the Internet. Great place to test your promotion. Find out which is going to work before you go to ink and paper. Key elements: One: Identify your clients. Two: Identify your product. Give it a personality. Last: Establish a personality, establish credibility. How to do this? Provide information on your expertise. How long in business, how many customers, what kinds of resources, etc. Create a big company illusion even if youre running it out of a garage. Question: epilogue? John F.: Direct response is alive and well. Clients and writers doing very well. Second question from Jay: Give me two of the biggest myths or mistakes or misperceptions or dumb logic that you see most people make with regard to direct response strategy, tactics, logic and the corollary, what should be the thing they be doing? Maybe just use this as the question: Two really big mistakes, misconceptions and the right thing to be doing? Answers: Dan K.: One mistake, well twoIll give you two that I see most frequently made as mistakes. One is: In lead generation or in the initial step of getting someone to raise their hand and identify themselves as a prospective customer, making the hurdle that person has to jump over too high, the leap too big, as opposed to giving them baby step opportunities. Example of this would be the professional dentist or chiropractor whose advertising focuses on getting people to call up and schedule an appointment. This as opposed to getting a free report or hearing a free recorded message something thats less threatening and allows them to move forward in smaller steps. Second mistake: Not only are buyers more sophisticated, they are also more skeptical, more cynical and more timid. Therefore, it is increasingly important to quickly offer proof of claims. So, its behooves people to write copy or script that can be proven in every way every fact, every assertion of fact, every statement.

Brian K.: The biggest mistake a lot of mailers make is that theyre not working with the concept of lifetime value enough. They dont have what is a basic premise of direct marketing. That is, if you have the first product, youd better have the second, third, etc. ready to go. The remedy for this is to clearly think through the business plan in multiple levels of what the products are going to be as you bring them on stream called contact strategy. The second mistake is what Gordan Grossman calls tiny tests. Direct mail is too expensive to test single variables as in indirect marketing. Its really important to test the big things in direct mailing. Mac R.: You cant use tricks and gimmicks in direct mailing. One must understand buying motives, how messages are received, how products are perceived in other words, understanding the marketplace. Drew K.: Number one. People are wasting too much money by not testing. It cant be just two big tests. In order to understand what your customers want, you must figure out who he is. You must understand the nature of your product. Be an expert. Test first before moving ahead. Second, you must focus on the product and what it does for people. Write everything you know about the product and the customer, then edit. Michael F.: Its important to treat customers as members of the family, not as strangers. Nurture them, offer incentives, provide additional products, and give special promotions. The other thing is that people actually spend too much time launching new businesses. Dont overspend to find out if you have a viable product. Jim R.: You cant please everybody. Nor can you keep everybody as a customer. So dont try to please everybody. Polarize. Write your direct mail package at the level of a bright junior high school kid. Too much information will lose most people and hill the package. John F.: Two mistakes come to mind. The first is too little for copywriters as he calls them the goose that lays the golden eggs. They should not be looked at as a necessary evil. The other thing is to allow some time to analyze the copy. Dont analyze daily. Copywriters may need help to interpret what the customer wants, needs, etc. What the product or products provide, etc. Question: In three minutes, give a survival plan on how to create advertising or sales letter that sells today. What things have to be done to make sure your advertising had the highest probability of working for you? Answers: Brian K.: Create an offer the prospect cant refuse offer. The ability, credit and guarantee that is sound. Use testimonials.

Mac R.: Gather potential customers together. Talk to them about products, what they buy, what they would buy. If you cant sell in person, you cant sell on paper. Record everything you do and listen carefully to find out whats important to them. John F.: With Jays encouragement, improve your existing market, increase yield by spending time on backend marketing. Michael F.: What people want in the benefit not words. Give guarantees that give security to buy. Also, use language appropriate to the recipients. Give them a chance to see themselves using the product and having an inside relationship with your company. Dan K.: Do your homework. Build a profile of who it is youre selling to. You want to tie your message to real gut-level emotional factors. Also, stick to the most reliable, proven classic sales formulas. If you cant afford to fail, you cant afford to experiment. Third, build an irresistible offer. Jim R.: Avoid boring. The only way to avoid this is hard work. Second, its more important to do the reader good than to get his money. Get his attention, first. Also, use light humor and wit. Make reading a pleasant experience. The rest follows. Question: Who is your one biggest mentor who influenced your thinking and what is it you got that can be shared? Answers: Jim R.: Gary Halbert communicates in an absolutely outrageous style. But he comes across as an individual not a machine very important to the future of communicating one-to-one. Brian K.: Dick Benson whose book, Secrets of Successful Direct Mail, is one of the great books on the tricks of the trade. Hes got 31 rules of thumb, one of which is a business concept that says that you should, as often as you can, outsource non-core competencies. This essentially means you should use outside experts if it can be done less expensively and more efficiently. Jays adds: Dont create mediocrity within your company if you can hire somebody outside to do it better. Michael F.: Gene Schwartz is a well-known copywriter who drove home the message that selling people is all about understanding how they behave in various situations. To know about benefit, aspirations and innermost desires. Also, to better understand the marketplace, see what is being sold to the masses the movies, magazines for example. Mac R.: Two influential people: Dad and Joe Carbo. Both had the same message, which was:

One keep it simple. Two Have a great headline. Three Bullet your copy. Four Be able to answer, who cares? Five Make an offer they cant refuse. Dan K.: Sales trainers for one. Bob Tralen does a phenomenal job showing how to tighten up a message. Maxwell Maltzs work on self-image is important, too. Its important not only to convince the person of the superiority of your product but also what the person will benefit from the product. Drew K.: Joe Sugarman blazed the trail in space advertising. Gary Halbert and Claude Hopkins are great marketers. Learn about the product and pay attention to the customer key to great copy. John F.: Dan Rosenthal formed a direct response agency. From him come six pearls:

Long reason copy Big promises Powerful headlines Dozens of magic sales words Maximum number of benefits Lifetime value

Question: Name two successful direct response marketers who are extraordinary models for what any business owner can do and should integrate into their direct response marketing. Answers: Dan K.: Omaha Steaks, a well run direct marketing company, does a great job of tracking individual customers buying preferences and habits and feeding that back to them. They send printouts of previous purchases to customers to encourage further sales. Drew K.: Williams-Sonoma manifests credibility with first class advertising. They give information. They deliver benefits like cooking tips in their catalogs. Jays aside: Benefit the other person whether it be a business or personal relationships. Drew continues: Web pages give information for free.

Mac R.: Damar catalog treats preferred buyers well. Lands End, Microsoft, CDW, Lillian Vernon and Amazon.com all treat their buyers extremely well. All communicate top down. All communicate from the Chief Executive or someone who in the persona of the Chief Executive directly to you. Too many businesses leave you totally abandoned. The good companies service the people who are good customers. Jim R.: Boardroom, Inc. stands out with their Bottom line Personal, Bottom line Health, etc. A constantly improving suggestion box system. Agora Marketing puts out newsletters that emphasize individuality. Michael F.: Rodale Press publishes Prevention and Mens Health among others. They communicate well with customers and deliver accurately. No surprises. They acknowledge people, describe benefits and erase distrust from the buying environment. For example, if youre displeased with an ordered book, a postage-paid label is provided in the box, which has sufficient utility to be used again for remailing. Builds up a tremendous amount of trust and discourages product send back. Levinger is another company that has developed into a lifestyle shaping opportunity through customer service and product reliability. John F.: Phillips Publishing publishes dozens of consumer newsletters in health and investing fields. With skilled copywriters like Jim Rutz and Gary Benzovinga they write the Whittaker promotions among others. Theyre great with customer relations. Others, but not specifically named, work in space ads in newspapers and magazines. Examples are those in Saturday Evening Post or the golf ads in daily newspapers. Brian K.: A lot of good companies, many already mentioned, but ESPN did a good one with the perfect football player. Bill Bonner at Agora has covered the market on narrative and direct mail writing. He doesnt have the million-circulation product but he cleverly weaves a story that should be carefully examined. The company is also innovative, not afraid to fail. Amazon.com does well with customer service. Rodale has done more than the Julian Whittaker newsletter. Their vitamin and supplements business, backend is just unbelievable. Drew K.: Wanted to add to his comments above regarding the importance of spending time at the Amazon site where a lot can be learned about advertising. Michael F.: Also wanted to add how important it is to spend the big bucks to get the best package. Cant be pennywise and pound foolish. Mac R.: Copywriters are the best salesmen youll ever meet. Theyre worth the big money because they know your market, your businesses better than you do. Question from Jay: What would you recommend to each person on this call if they were not going to be their own copywriter, that they use as a criteria for trying to select for themselves, knowing that they may not be able to afford, you know, $50,000-$100,000 + mailing piece to hire Jim Rutz or $1,000,000 for Jerry Benziminga, or whatever Mac or

Dan cost? What would you recommend to them to get the greatest benefit they can, whether theyre large, medium or small? Answers: Dan K.: Look for somebody who has demonstrated success. Speak with clients. Have the clients gotten a good return on investment? Have there been multiple successes? If the copywriter is not one of the very expensive guys, then there must be a collaborative process. That is, the company must provide or make available recording and transcripts of their best sales persons best pitch facts and features from competitors as well. Drew K.: Suggestion write your own ad, first, listing all benefits. Put together your best effort, then go to the copywriter. A good copywriter should be able to turn your ad into a good marketing ad. Brian K.: Concurs with Jay and other that the copywriters need help from several sources to write the best ad. In that regard, the Internet is invaluable because there, one can study a category faster and on a wider scale than ever before. Its also a way of finding a new and good writer whos waiting for the opportunity to be discovered so to speak. Mac R.: Recommends buying Jays programs, How to Get From Where You Are to Where You Want to Be. Also, Dan Kennedys package. With the principles both teach, the reader will have a handle on whats right and whats wrong in the field of advertising. John F.: Recommendation is to hire a local journalist to write an editorials story about you, your product, your service, etc. lots of detail, then hire a copywriter to convert the data into benefits and a number one sales copy. This is a common practice that has been successful. Jim R.: Cautious against hiring according to pedigree. Even the best can produce junk. Dont commit yourself to someone without first seeing some good work, getting a feel for their enthusiasm, their insight. If they dont excite you, they wont excite anybody theyre writing for. Drew K.: As a litmus check test, Ive insisted they write form the actual product not the spec sheets. If they dont or wont, they arent my writer. Jay comment: David Olgivy insisted that anyone who worked for him had to live with his products, his clients products. Jay further comments about a non-success. One should not get chagrined because of it. Take it as a step in another direction. Michael F.: Great writers do strike out. If they didnt, it could mean theyre not really creating breakthroughs. A failure is not necessarily the death hull for the product.

Brian K.: Testing is the lifeblood of this business and thats why direct mail works so well. If you dont have a winner, at least learn something whether it needs to be a soft offer rather than a hard offer; that it needs to be a net premium, not a gross premium: that the price point is, $30, not $40. Learn something so that you dont make the same mistake over again. Drew K.: Testing allows for success, perhaps one in ten. That one success can be rolled out in a hundred different directions. Question from Jay: Will the panel summarize an insight that can be taken home and acted upon by entrepreneurs of all kinds. Answers: Brian K.: Polarization is not a duty word. The world is being made up of more specialists in more different areas than ever before. Jay aside: Better to be loved or hated than to just be tolerated. Toleration will lose clients. I want to polarize. I want to own my relationships with the people who really recognize the value I bring to them. Brian K.: In direct mail business, a 1% to 2% net response could be a winning proposition, which means that 98% of the people are turned off. If polarization is a positive, then why not get a 30% response rate in a much smaller marketplace at a much higher price. Drew K.: A little success is bad because if keeps you from rewriting, from improving your package and then you never really get ahead. So, a failure, odd that it seems, can be a blessing in disguise. Question from Jay: Based on your insight, what would compel someone to take action? Answers: Michael F.: Finding joy, pleasure and value in studying potential customers so you have a sense of how they tick, how they move, how they resonate with your message. Secondly, create a sense of familiarity with customers. Drew K.: Its the relationship between you, the company and the customer. Its very important that every single mailing, every single relationship have a one-to-one relationship so that you feel like youre only talking to one person. Mac R.: I concur that the term relationship is key. Its the relationship building process. You have to be involved. You have to care. Jim R.: Relationship is primary especially with a very impersonal thing like direct mail. You need to set up a team, a product that you love and be able to establish relationships

with your buyers, your customers that convince them this is a good thing, a happy thing, something they can trust. John F.: Closely watch the cutting-edge people in the business. Learn from them. Buy their tapes, their materials, and their interviews. They have many good ideas. Question from Jay: What question would you like to ask each person on this call that would haunt them and move them to an even higher plane of understanding and action? Answers: Mac R.: Why are they in business, beyond the money? Why are they producing and selling their product? What makes them unique, different and powerful in their niche? Drew K.: How much would it bother you if you fail? If you are bothered, can you go on to the next promotion? Success builds on failure. Jim R.: Have you really helped people to the maximum you could? Have you improved the world? Is it going to better because you were in business? John F.: What is the passion that you have about your product? And why is it important? Conclusion from Jay (from Fortune): People fail in business not because they dont have the right strategy, but because they fail to implement that strategy, not act upon it, not really committing to it. The market wont tolerate mediocrity, equivocation, procrastination or being off your mark.

Transcript Outline December 14, 1999.

Making the Money Connection Power Panel Conference Call

Hidden Assets
Operator: (Greeting) Jay: Welcome Summary of Background Introduction of Power Panel David Cochran: Summary of QualPro Jay: Summary of Rules Introduction of Chuck Richards Summary of Goals of Discussion Non-Theoretical First Question: What is the one unrecognized factor about increasing the performance and the opportunities for business? Richard Spring: Impact and Expense of Gaining Customers on Businesses Internet Marketings Impact Skeptical, Price-Driven Environment Chuck: Businesses as a For Sale Entity and Resource \

Be Paid to Own an Outside Business Dave C: Rely on data rather than theories. Dave Wagenvoord: Look within your own business for hidden assets before going outside. Jay: Second Question: What is the biggest single hidden opportunity that you have personally capitalize on or contributed to somebody else? What were they key elements that made it possible, and whats the lesson? David W: Story of Saving DHL Account - Dont give up prematurely. Dave C: Story of Tennis Shoe Manufacturer (Expensive vs Inexpensive Displays) Never trust an untested idea - Many ideas are only effective when done in combination with another action. Chuck: Story of Buying Out Aging Competitor Competition can be a cheap takeover candidate. Story of Small Town Car Wash Takeover. Richard: Example of Left Over Radio Station Advertising Time You can partner with another company to mutually take advantage of their assets and at the same time achieve your mutual goals. Jay: Question Three: Describe your own ethical opportunistic mindset Chuck: 1. Full Scrounge Mode Get your resources from the cheapest place you can. Example of high tech composites manufacturer obtained old spinning machines for free and rebuilt - an internal philosophy. 2. Smart Radar - external and inexpensive resourcing Jay: (Additional comment) Find out whos already got what you need. Chuck: Story about obtaining use of expensive testing equipment from Army

Labs for mention of their name. David C: Improved results are always possible, and you dont have to spend a lot of money to do it. Example Government nuclear missile facility changed cooking process on their foam batter and tripled output. David W: Unsold radio time (diminishing asset) is commonly in large supply Jay: Look at the productivity of your own processes Richard: Go into every days work being in a position to broker productive activity. Instead of trying to get 50% of every transaction, get 2% of of the transactions, and in so doing, leverage your portfolio. Jay: Well-rewarded partners will be motivated to work hard, because theyve got more to gain than you do. Question Four: What is the difference between the entrepreneur and the big corporate type? Example - Most entrepreneurs think in terms of me instead of an enduring institutional entity; Talk in terms of profits instead of earnings; Think in terms of sales and earnings instead of building an asset and revenue; Look at their business as a mechanism to service their lifestyle rather than an asset. Chuck: They miss that their business is an asset - people in big corporations realize that the corporation is owned by outside shareholders, and that they have a fiduciary responsibility, risk profile and discipline to build the asset missing in most entrepreneurs. Jay: Entrepreneurs usually have no defined exit strategy. Chuck: One in five businesses for sale will actually sell due to 1. Buyers and

sellers cant find each other; 2. Entrepreneurs fail to position themselves. Jay: If you have a business thats worth less when youre not there you dont really have a business you have a very nice income. David W: Entrepreneurs tend to think enthusiastically or go with fads, but should think longer term - the Asian influence. Jay: Most entrepreneurs dont handle their downs proactively, where by doing so they would take advantage of a preemptive advantage over competition. David W: Being a salesman is like being a heroin addict - you have to close Often - the adrenaline that you get out of your business. Jay: Entrepreneurs often want to make things happen more quickly than strategically, and are tactically-oriented. David W: Jay has a philosopy of leaving more on the table for the person hes dealing with, with the result of enthusiastic business partners, rather than taking as much off the table as possible and shooting the horse. Jay: I want to max out on the life worth of the relationship. David C: Entrepreneurs have a passion to challenge the status quo, and a lot of curiosity and interest in learning new ways to do things. Corporate types are the protectors of the sacred cows, and entrepreneurs are the hunters. Jay: What is your advice to an entrepreneur to maximize the ethical exploitation of that distinction? David C: If it aint broken, improve it Richard: The distinction between corporate manager and entrepreneur is narrowing. Examples: Compensation levels are narrowing; Risk for the corporate

manager is greater; The allegiance of the corporation to the individual is lessening. (Illustration of $5 billion company vs. $50 million company - $5 billion wants joint venture-feeling relationship, and wants to learn from entrepreneur. $50 million wants to outwit. Radio example: Easier to deal with management of a large ownership group than to deal with a single station. The corporate door to the Fortune 100 is open to the entrepreneur now as never before, because the Fortune 100 guy knows he doesnt have all the answers anymore. The cutting edge of business is taking place outside the halls of corporations. Entrepreneurs will be surprised by the reception if they knock on the front door of large corporations. Jay: Question 5: Recommend model companies that all the entrepreneurs would be advised to study to maximize hidden assets, and cite the things they do. Chuck: Landmark - Has a continuous search pattern for deals and companies; an open door policy to new ideas; theyre willing to try them; theyre willing to partner; theyre willing to bring in people who know more than they do; they know that there are pearls out there; theyre continuously learning; they put their resources behind the pearls, and they build them, because they realize that over the long term, you only need 1 or 2 real winners to make yourself look like a genius. Example: The Weather Channel.

Theyre also willing to tell you about their losers. Example: New Core Steel Drives extraordinarily complex processes with basic things that they have scrounged; doesnt buy something new just for the sake of buying something new. David C: Southwest Bell (SBC Corporation) Has a unique passion for Delivering customer value in the regulated telecommunications industry; details are very important to them; they establish internal measurements and statistical techniques for process improvement. Richard: AOL Is a very young and vibrant group of very smart people; they acted like a big success, even when they were hemorrhaging money (example Phoenician party); they get the Internet psychology; they successfully used a carpet-bomb marketing strategy, and were willing to lose money on the front end to capture long term customers VerticalNet and FreeMarket.com - have obvious understanding of Internet dynamics. (Not a direct mail outlet without the stamp and envelope) an informational tool between like-minded people in specific industries; have created Web communities between rust belt businesses; have created informational value for their customers though they expect revenue from their activity to lag. David W: Southwest Airlines started with few planes flying between Houston, Dallas, and San Antonio for $12, and aggressively bartered for radio marketing; Have retained original formula of no food, no first class, no interline baggage; will earn more profit than any other U.S. airline this year; Chairman Herb Keller

hires people based on attitude rather than skill; employees have good attitude; stuck with modest ad campaigns; have never had 3 consecutive unprofitable months; they found a formula that worked and never changed it. Jay: Question 6: Give an example of how someone you know of has discovered hidden assets. Chuck: Businessman got company with interesting processes for nothing. Lesson - If we keep our eyes open, inexpensive opportunities are everywhere. Richard: Accountant with specialty in helping small businesses get contracts with the federal government put it on a Website and acquired the active participation of 100,000 small business owners, managers and procurers and was acquired by a bigger Internet company - will end up with $9 million by taking what he already knew and applying it to another medium. David C: Client who manufactured newsprint and sold it to newspapers was having problem with breaks, and was at risk of losing a large client. They learned by experimentation how to reduce the breaks and saved the customer. Lesson: Its possible to improve results, and at the same time, reduce costs. David W: Example - Bud Paxton and Roy Spear started Home Shopping Network from original concept of auctioning off electric can openers and cruises on the radio. Paxton then bought underperforming TV stations and provided the programming. NBC bought a minority position in the network for $450 million, with buyout option in 5 years. Chuck: 1 The hallmark of great entrepreneurs is they keep testing until they find something that works, and then cookie-cutter it out

You can find assets at your local technical university labs. Example: MIT materials lab and the weaving crossover technology Example: laser/microwave surgery technology. Lesson: Some great minds are locked behind doors of places like MIT, and they cant communicate with the business world, but may be working on something that may be valuable to you also accessible through Internet. David C: Front line workers that are tremendously underutilized. Example: steel manufacturers front line workers recognized rainy days as yielding defective product. Richard: Maine company who was driven into the ground by departing from successful formula David W: Radio stations can destroy successful program format by crossing demographic Jay: Question 7: What was the one biggest impacting factor that gave you the benefit of being who you are? Richard: Jay Abraham. Jay: Go back through past purchased-materials. Chuck: College department chairman helped his to change from physics to economics. You must understand intuitively the field that you choose. Richard: Todays 23-year-olds have an understanding of the future, and may qualify as mentors for those of us who understand business on a more experiential level. Chuck: If you listen, you can learn from about everybody.

Jay: Example: Score organization of high-powered CEOs and entrepreneurs that are voluntarily offer themselves for a nominal or free rate to help anybody who needs them. David C: QualPro - taught him to find the counterproductive processes.

Jay: Reality in Advertising book by Ross Reeves ahead of Ted Bates first person to do impact studies on whether factors suppress, depress, enhance yield, and analyses that certain factors have the effect of lessening of brand and market share. Everyone should test their conjecture-based assumptions. David C: Example magazine placement in additional sites in supermarkets dramatically reduced their sales because people were reading the magazines in the aisles instead of buying them. David W: (Turn around to Jay) - What sent you in your direction? Jay: (Gave personal history) Concept of synthesizing success practices Natural incessant curiosity The greatest way to learn, is to ask. David W: Did you know where you going, or did you just kind of head in the direction that seemed to work? Jay: I felt like I had a higher destiny, and a chance to make a meaningful difference, was uninhibited, and I had others best interest at heart. Most people fall in love with their product, their company, and their industry

instead of falling in love with their client. David W: Where do you go from here? Jay: Marketing one of my businesses Regarding the Internet Will work to counsel on adjustments once the euphoria settles down. Question 8: Whats the one realization you got out of this?

Chuck: The concept of bartering and its creative possibilities. The concept of duplicating a successful formula. Jay: Whatever your stabilizing factor is in your business life, dont put it at risk. Chuck: Ribbons of revenue - once you get one ribbon going, dont mess with that ribbon. Layer another one on top of it. Richard: I met David Wagenvoord Shok Tung - Korean words meaning your family business, which you should firmly identify. David C: Dont make changes casually. There are risks associated with making changes, and also risks associated with not making changes, because the environment changes. Never make changes without having first thoroughly tested the idea. David W: (Enlarged on testing) Test in smaller radio markets first Example: Expensive Super Bowl advertising. Richard: Story of Net firm spending $24 million on billboard advertising on trucks in 14 major cities with no feedback mechanism.

Chuck: Story of Apples award-winning Super Bowl advertising that preceded their decline. Jay: (Requesting contact info from panel) Chuck: Its charles.richards@valley.net. David W: (727) 424-4991 day or night. Richard: rs281@aol. David C: Reach me by telephone. (865) 927-0491. Jay: Thank you and goodbye.

Making the Money Connection Summary

E-Commerce Jay: First inaugural version of Making Money Connection and Power Panel

Topic: Making the Most Out of Your Business Internet Presence

Hosts: Jay Abraham & Audri Lanford

Objective: Getting applications and things that can be executed and implemented to a specific business situation
Audri: Introductions: Four panelists

Dr. Jakob Nielsen web usability guru

principle of Nielsen Norman Group has written several best-selling textbooks holds 35 Internet patents

Declan Dunn

specializes in affiliate business development author of Complete Insiders Guide to Affiliate and Associate Programs publishes monthly online newsletter called Links to Sales

Larry Chase

author of Internet Marketing best-seller is Essential Business Tactics for the Net publisher of Web Digest for Marketing magazine works with many large and important companies

John Audette

founder, President, and CEO of Multimedia Marketing Group has many influential clients founder of the Internet News Bureau founder and moderator of the i-Sales discussion list (14,000 subscribers) Vice President and branch manager of a major New York Stock Exchange firm

Jay: Goal of panel discussion: Draw from practical, day-to-day experts their perspectives to help make the best possible strategic tactical decisions and implemented internet presence.

Audri: First Question: State the two universal principles that can have the most impact on the achieving desired results.

Larry: 1. Website must be known - Ask why is somebody going to come to my website - Optimize website to come up in search engines legitimately as high as possible, using all the keywords people would use 2. Have an e-mail list - Ask permission to get e-mail address by offering something of value in return John: 1. Find a way to give something before taking --- valuable content, entertainment, etc 2. Acquire an e-mail address and permission to use that e-mail address

Jay: Value it as a prize. Jakob: 1. Do a users study of the website by getting customers in. 2. Use the website in a variety of ways..content, buy a product

Declan: 1. Focus on the customer, on your lead product. - What initial products? - What would you sell on the back end? - e-mail list important here 2. Ways to put your website into other peoples websites - find out what your customers are interested in - drive traffic to your site/reward them with a sale - tap into existing traffic Jay: How can you stimulate ethical affiliate programs? Declan: Make the program appealing to others

- Offer reciprocity. - Offer return links, compensated links, based on margin they offer - Give them a full package

Jay: Question: What key factors are most critical in developing their unique and optimal under valued web strategy?

John: 1. Focus on marketing.

its more important than the quality of the product your website must be known.a billboard in the basement is not effective content linking important must come up on first page of search engine

how? Content linking with other sites not free anymore, must exchange promotional software --- ad applications

Use the most effective, most efficient, most cost effective first

Jakob: 1. Understand the customers needs

its better to give people opportunity to solve their needs instead of promoting yours do what your customers need

2. Make it easy to do what the person wants to do..and FAST Declan: 3-step approach 1. Understand customers online behavior 2. Find existing favorite traffic patterns 3. find way to turn this into pay per performance advertising

Larry: Advertising the least effective 1. #1 is e-mail lists 2. Narrow your target. 3. Hypothesis marketing. offer low-cost item..create a newsletter to build prospects 4. Important! Niche focus (the more focused.the more you can charge)

Audri: Another question. Whats working right now in area of promotion?

Declan: llusion that lots of traffic means lots of sales.

Usually it means more cash to acquire customers Find frequent visitors & build relationship Get someone who has a good e-mail list to recommend your product

John: Tangibilizing

We deal in an intangible medium & product Remember: user is in charge Tangibilize as much as you can. Put your physical address on all your web pages.

Put your signature on a welcoming letter. Put a recording of yourself on the page Build your credibility..it comes down to trust Larry: John has it right. Dont make your address a secret. Put it on the front page..and every page. Learn from your competitionfind out whos out there, whos better & let them help you

Jay: Question: How many people monitor continuously their own local and world competition to see whats out there, what theyre doing and how many different ways theyve approached it?

Larry: Most people dont bother. You need to see whats out there, whos pointing at you and why.

Jakob: You need to look at competition.

Jay: Question: Recommend three websites to visit and why. Also, what would be one key observed insight people should really see when they visit each one and learn and take from it?

Jakob:

1. Amazon.com, a year ago.

2. Barnes & Noble they have a spelling check for misspelled names & Anchor desk, which give readers ability to comment on the page 3. CDNow you can listen to tracks online

Do something that cant be tried in the physical store. Larry: 1. Net Mechanic because its simple 2. Web Position offers good tools for service. Lots of freebies 3. Alert Box uses reverse pyramid conceptgive the best, first. 4. John Audettes News Bureau

John:

1. Excite 2. Amazon 3. ESPN

Why? Customization ability. Declan: engines 1. GoTo.com they solved the problem of how to get on top of the search 2. Xoom.com a chat community but you can sign up for their e-mail list which is a great direct marketing tool

3.

BizTravel.com personalizes and customizes travel plans according to your needs

Audri: Question: What are the three best business models on the internet?

Larry: 1. Dell computer they anticipated my questions & assisted me in making a decision 2. 3. UAL.com - they will sell you a ticket for a competing airline if you wish CDNow theyre attentive. They watch my behavior and cater to it.

Jakob: 1. Business models that work are those dealing with sales stuff. 2. Sell content things that move purely move over the wires. (Purely intellectual items) 3. Dont use it to make money.give away web service as a loyalty phenomenon --- helps bring back customers who will buy from your other business models

Declan: 1. Affiliate programs very cheap way to start advertising, to make your business an integral part of another website 2. Integrating the brick and mortar world into the Internet Reel.com sells videos. Rite-Aid and Barnes & Noble are looking into this. 3. Bring this down to the small businesses.

Larry: 1. E-Marketer.com - Weekly newsletter with abstracts of the internet. People look for free, then subscribe ..over 25K subscribers in two years.

Jay: Question: For those who have brick and mortar businesses who want to position for their internet presence, what would be the best universal advice for using the internet most effectively? Jakob: To succeed in the web, youve got to make it primary --- not easy, but necessary. Expect to give discounts. John: To me, the internet is a revolution. Its a very big deal. Nobody realizes how big the internet will become. Its presently under hyped. Larry: The internet is best for the best sites. Costs are rising, profits decreasing. Too much spent trying to get a single sale.

Jay: Question: What advice would you give to a business whos competing with a far larger, better-financed company that is selling products either below cost or has so much more in the form of technology or depth? Larry: Small business has agility. It can move faster, go left when Goliath goes right, e.g. Add the human touch to counter the automated world of big business. Humanize. De-mechanize. Jakob: Agility is good. Also, dont be intimidated by the big guys. Most typically they dont understand a new medium like the internet. Declan: The bigger the competitor, the better. The bigger they are, the less they respond to the customer.

Focus on people, not the price. Personalize & customize. Use the phone..most big businesses dont do this. John: The internet is profoundly market driven. The customer rules, so be responsive, courteous, respectful, etc. The marketplace is in charge.

Audri: Question: What is the single biggest insight youve gained during this call?

Declan: It comes down to people. Technology is not the problem confusing people. Everything is wrapped around the customer. Its all about them and knowing their interests and being able to deliver that so directly. Jakob: Even though were from different backgrounds, we all agree on the core message..the customer rules. Its about customer satisfaction. John: Were barraged by push advertising and sale to marketing messages. People are tired of that. Thats the old model. And so it comes to the human element. Respect for people. Their intelligence. Their needs, not yours. Jakob: Customers are in control so give them service and what they need. Thats the key to success. Larry: 1. Your house list is your best list. If you dont have an e-mail in-house list, by all means start one. 2. Trust yourself.

Jay: Question: What would be the most effective communication marketing composition you use as the most powerful connection to your customers and prospective customers?

Declan: 1. I would ask what you do for your customers that makes you an important part of their lives. 2. You need to become more important to them and help them get what they need.

Audri: Question: (Wrap Up) One thing you would like everybody to remember from this call --- over time. Declan: The internet is all about communication. Establish a way to communicate with customers, competition and your partners. This will make your business grow. John: Dont be afraid to get started. Nothing scary about the internet. Just go ahead. Get plugged in. Get moving. The internet is wide open.

Jay: Question: What revealing, revelational, illuminating question would you ask that would profoundly help them make a realization that would fuel them to accomplish more with their web presence, web marketing, website, web contribution to their market, etc.?

Jakob: What are the three reasons people are at your website? Another..Why are your users or your customers coming to your website? Why to you? Larry: People are afraid to make mistakes. Is it fear of failure? Failure is actually a learning curve. So I would ask people what they have learned from their failures. John: I would ask: Are you honestly prepared to put your customers first? If you want to do a significant business on the internet, you need to be prepared to sincerely meet the customers needs. Larry: A signature file your tell them who you are, what your product is and how to get in touch with you, etc. Jakob: Keep it short. Write a subject line so that it makes sense and sense and sends a message about and why you should care to open it. It must telegraph benefits to you. Its got to be something that they should care about --- personal, pissy and punchy. Declan: Be real. Be yourself. Dont exaggerate. Use plain, simple English. Write it on a 6th-9th grade level. Take the hot air out of it. Talk face-to-face. Jay in Conclusion: Thanks, etc. for a great job and for providing collaborative breakthroughs for people. Audri in Conclusion: Thanks, etc. How can you be reached if anyone is interested. John: e-mail: ja@mmgusa.com website: mmgusa.com Jakob: website is USEIT Declan: e-mail: declan@marketplance.com activemarketplace.com website:

Larry: Newsletter is a free service called Web Digest for Marketers www.wdfm.com