Jay Abraham’s Martial Arts Teleconference, Call 2: Allowable Cost, Risk Reversal and Testing

We talked about strategy, but I want to amend that too. There are four great levers in business. If you look at every one of the top performing businesses in any industry, and I’ve looked at 40 and 50 are the ones who have maximum number, quality, and consistency of breakthroughs in four areas. One first and foremost is marketing because marketing is the ultimate business leverage. You can make those 31 points of impact in your business and I identified some of them yesterday. market you penetrate the approach you use or the approaches the way you bring them in the way you convert them what the first sale is how you set them up for the future all the ancillary all the referrals etc etc. Marketing has the greatest leverage the next leverage is strategy one strategy over another can make the difference between night and day and rob I’m sure that’s true what I try to keep referring yesterday to and I want to do today is that this is a piece a cake for you all to grasp because it is the mirror image of what you used.

[04:02] The one strategy can out- out-achieve another by big margins, don’t they Rob? Well, a jammer or a kicker or a punch or somebody who’s strong or tall or short, you fight everybody differently and marking is the same way, isn’t it? Yeah, in business, like when I was interviewing some of these pretty savvy school owners, it sounded like a lot of the people there, their strategy is they got to make money on the first sale so they can pay the rent and they’re compromising the future. Are they got to convert? Very clear Jay. I just want to reemphasize that most schools out there, they really don’t put any strategy into their marketing. They’re very episodic and we’re going to try to change that today. Yes. Okay. The first thing I talked about is you’ve got to have a master overriding strategy and everything you do has to advance, enhance and hold.

Not unlike what you teach. I thought you were business new people and selling them something. the cost of upgrading them of sustainability groups and impact. Easy cost nothing just requires a different kind of a strategic form of thinking. The next thing I talked about was that you need to build your marketing on multiple pillars at the same time. I gave everybody on this call, the grounding materials, kind of geometric business growth. It shows on the first page I think like a diving board which is what most businesses are based upon with the board being the revenue and the primary way you bring in leads that eight or nine concurrent revenue streams going for you all because it needs explanation is by doing that you’re doing three very powerful things. Number one you’re bringing the power of geometry to bear because if all of your revenue right now comes from one primary activity and caught in five and six and seven and eight additional revenue generating stream operated on a continue the same market from many different points pushing people first to commit that massive come to the realization they need something but it would each time you added a new revenue stream at 20% here 30% here 50% more revenue I didn’t do the exercise that you can see on that Graphic that I sent you but I did tell you that you increase each of the three areas just 10% The cumulative impact isn’t 10%, it’s 33% and a third percent.

[09:03] If you double the number of the revenue that they represented to you by 50%, if you’ve got them to stay 50% longer, that wouldn’t be 50% more revenue would probably be 500% and that 500% might 10 times your current income if you’ve got a fixed overhead. I don’t want to get real very deep. I just want to review what we talked about. We talked then about the first line of offense, where you concentrate first, you concentrate first where you already are. You don’t go out in the outside market looking for new, more expensive things to do until and unless you first, what you’ve already got. And the way to do that is first and foremost for training if they are in their best interest to refer more people because that should be a constant, you know, multiple faceted approach. And I told you I’m going to send you a post at the end tomorrow.

I’ll tell you all how to get the which you’ll have to go through and figure out which versions are best for you. I told you next to look within the parents and see what organizations they, you know, whether it’s some massive multiple organizations. The Degek Alliance is later in, but I teach you all about that. At least I told you then to get to college, or anything, it was to go to people that Inquired didn’t buy and start them on a follow-up seat. It’s time to go outside and do other things. Is that a good review of yesterday, Rob? I think it was a masterful review and we’re ready now for day two. I’ll pick up on the teachings of yesterday and introduce you to this concept called allowable cost. Spend on marketing or sales commissions or advertising. I amount. There’s no one on this call to have an allowable cost.

by all the advertising, you can pay all the sales. And that allowable time value of the student. And I’m going to get too sophisticated here. But very simply, you look at every lead that comes in, how many convert on average worst case. And then you figure out what a lead is worth you in revenue, not cost. You may get $10,000 to be $30 a piece, but that’s not the determinant. How many, excuse me, oh, those 10 leads, how many will you convert? Let’s say you convert five, what will the minimum revenue be, where’s a piece that’s 5,000. You divide each into 5,000. Each lead is worth worth to you $500. Is that clear, Rob? And you can look at it the other way. You don’t look at leads. You can say, okay, comprehend what somebody’s worth to you worst case not best. And I always look at the worst case because then, at least the price, if you’re very conservative, if you’re very liberal, it’s probably worth $5,000 to mean it’s only worth $1,000, then you’ll screw up big time and you’ll get caught in a financial. If you know conservatively, case what a lead is worth, whereas case what a sale is worth, then you can also, then you’ve got to understand a very simple process called incrementalism.

[13:31] What that means, at least my interpretation, is right now you’ve got a school. You’ve got a fixed overhead. The school cost you $1,000. Your electricity costs you $500. Your staff costs you $2,000. What is that? $2,500. I think it costs you $2,500, whether you bring in 30 students or 300 students. Now, incrementally, when it comes in, you know, may cost you the uniform and you know, it opens a couple of other things. And maybe after you fit, they have another teacher for another class and they hammer her a certain fixed amount. But most of the revenue above and beyond break even. And they mailed the postcard out within their community and they sent out a whole bunch of them in the bill was 300 bucks. Yes. Are you saying that they need to know how much each lead is worth when those people call So they got 10 people to call back in.

Well, we’re going to get into metrics and analysis, measurement, quantification, and how that can make everybody double, triple, quadruple their current livelihood, which is a very worthwhile thing to know, I guess. But the answer is you should know how everything performs, because I think I said yesterday, different offers, different premises, different marketing propositions, different subjects that you are building your offer on back of newspaper, radio, or Christian, does that make sense? But why do they need to know how much each lead costs them? Because their goal in building probably teach of the martial arts category that they are master of is to get the highest and best result possible from the minimum time effort. I think it may not be worth doing because it doesn’t bring a lot of weeds and maybe three times more profitable over the two or three year history of a student than something that theoretically and hypothetically looks ten times more profitable.

You can’t just look at how many weeds something generates. You got to look at what the conversion of that category is. The first time is how many repeat, how many say they’ll come in, how many referrals on ever come from that category and unless you know that stuff, you may be putting all your focus on something which is one fourth as profitable long term and takes one tenth. If you’re not getting any back end which would be worse but that’s where you’re putting all your money. Does that make sense when another approach that ends up costing you ultimately one half produces three times more back end revenue and five times more referrals. You guys start looking at this and you don’t have to do it instantly because it’s a good a process. But once you know that, then you become a masterful marketer because you put your time, your effort, your focus on that which works best determination of worst. They said yesterday, one of the guys we interviewed, I think he trains or he manages. The practice has said he was just dumbfounded how when every time they ran it, it converted six right I think or 10, 6, 10 people, the rest of their $1,700 over time and the yield was like $20,000 for an 8-bit.

[18:02] It took a while to reap it and any investor out there, if you say, hey, would you put up $800 to get $20,000 in 12 months? They would borrow money to do that. But a lot of you guys and girls aren’t looking at this like a hard-nosed ROI. turn on investment, profit-based, business man or woman. You’re just saying, well, gosh, I didn’t get enough yield up front. I made somebody $25 million one time in another field. They ran ads for a newsletter. If it made three times the money, if it only made two or real keep, and they’d stop. And I said, whoa, let’s look at what happens after they start subscribing. And we found out that every time they got 10 new subscribers, five of them bought investment, service $5,000. the two and a half. You can make a long story short. They could have paid people to start a relationship.

It’s still made millions of dollars, but they never looked at the correlations. Rob, I don’t want to get too confusing. Does that make sense? It does. Yeah, it really does. It’s starting to come in clear, Jay. Okay. So you need to know what somebody is worth to you, certainly in the first transaction, preferably in the first year. But let’s look at the first transaction to having an inquiry or a lease. Is that reasonable, Rob? Yeah, can I ask you one question though first Jay, I don’t want to leave anybody behind here. Are you saying that you may do some kind of promotion for your school and it may cost you 50 bucks per lead but out of those leads you may convert half of them and they’re each worth about a thousand or fifteen hundred or three thousand dollars to you? I’m saying Rob, it’s pure sense once you have a system and you’re not going to start this way and you know with predictability what you’re second, your third, your fourth tiers of recurring revenue of repeat or backend revenue is from an introductory student.

Once you know with the Justify spending 100% of the first transaction all day long as your school had enough additional cash flow and you would be gargantuan. Do you understand that? Without a doubt. That’s the key that I’ve grown all these businesses are getting them to stop, take a deep breath and totally transform their logic. let’s start this transaction only even though you got others or you will add others you can follow my recommendation let’s say the average first sale hundred thousand five which is going to be about twelve hundred bucks call the incremental direct cost let’s say you got to pay on average for ten dollars a lesson today you got to pay uh… five percent or ten percent sales commission that’s a hundred twenty dollars will you could if you wanted to say out of a hundred thousand hundred twelve You could literally probably spend a bandit on year two and the next level of renewal.

I’m not suggesting you do, suggesting that instead of saying we have a marketing budget of $2,000 a month or a marketing budget, you start thinking, what’s my allowable cost? Once you realize the maximum amount, you’re not paying for sales, average or paying for results. If tomorrow morning I said to you, Hey Rob, I can deliver a thousand new students to you. 900,000, and your first English would say, screw you. But Rob, that’s for a six month program. It cost you nothing. You’re going to go ahead and write a little bit of profit. But at the end of six months or long before if you master my strategic systematic marketing, you’re going to probably renew our upgrade 40 to 70 percent of those thousand people to a 2000 black belt program and maybe 20% to, and that’s going to be a million dollars in a question, nothing because does that make sense wrong?

[23:11] I would write checks like that all day long. Okay, well that’s the mindset I need your people to think about with safety. Here’s why. Instead of saying, well I’m only going to run ads, relationships, it’s long and up to the fact that they bring in an at your allowable cost. I’ll give you an example. Years ago, we sold an analgesic bomb. We took it from nothing to a fortune overnight. It was called Icyide. It was a $3 product. It cost us $0.45. We didn’t want to buy advertising. We went to radio stations, television stations, magazines. Things got them to promote it on the air, in their ads, on TV, stick promotions in the packages they sent out. We didn’t buy anything. We let them have $3 of the $3 sale acquisition. They ever thought we were crazy. We weren’t crazy. we don’t have work a lifetime value is so that for everybody to came in well times a year at three dollars and it was an analgesic for arthritis and they kept buying until they died or until somebody came up pre-accured for arthritis where we can we lost forty five cents wait three dollars we thirty six dollars a year for on average eight years or two hundred forty dollars uh… of which ninety percent was profit does that make sense right well it really does and i think it’s a parallel example of martial arts go on to give way free lessons right up front because they’re going to make it on the back end 10 times 100 times over.

I’m going to challenge that in theory if we get later in the game by testing. So you figure out what you can spend without going broke. And actually, now do you think, for example, that the book clubs and the CD clubs and the DVD clubs have figured out how to make a profit, getting 4 cents for 4 DVDs? Oh yeah. So that come in for another 24 months and it’s all profit and of those probably 30% will go to three more clubs. And you’ve got to, that’s how sophisticated business people make strategic martial arts schools can double, redouble and double again their income. And I don’t care if your money motivated or not, with that income, you can then reach deeper into the community. You can help more people. You can change more lives. You can free yourself up to work full time. And you can just do more worthy things in your world and in your community.

Rob, does that make sense? Figure out your lifetime value. then you translate it to all end channel in the market. It means you can run ads, be more generous, about sales commissions. You can pack into the set of the objective of their promotion, serving people in order to barrier of the cycle. So you can start at the process of generating relationships and revenue. Is that clear Rob? It is here a little bit. In a membership organization like a martial arts school, there’s an attrition. There’s people that basically drop out constantly. How do you figure that into the equation when you’re trying to calculate the allowable cost for the lifetime value of a student? Well, the way into it is the beginning. And here’s what I’d rather do 30 and a half hour into. This could eat up a half an hour. Why don’t I, as a gift, we’ll do an MP3 file.

[27:50] And it will take a week or two, because I’ve got a busy schedule. And we’ll put it out for everybody who’s on tomorrow’s call so that they can have a template format of how to do their own marginal net worth lifetime value. Allowable cost calculation. Very great. So now you got an allowable cost. I’m going to teach you to think non-linear. The linear martial arts student or school owner, the linear business owner says, I’ve only got a percentage I can spend of my revenue or $3,000 a month, arbitrary allocation. I can only pay my save percent or $10. It’s never going to be the right amount. The right amount is the maximum allowable cost. You can’t know what that is until you’ve done the study. But I’ll tell you when you crease that of the six times instantly. We looked at their sales commission. They were paying their salespeople about 10% of profits.

We looked at the lifetime value of their buyers. Every time we looked at the first sale they brought in, which was a couple hundred dollars of profit, we were as they got from that first year. It was five times. We looked at what those sales were worth. It was $200 a time or $1,000 a year. We looked at how many years they would normally buy. It was three years and we realized that every time they brought somebody in, they were getting $3,000 the future profit, but they’re only paying the salespeople 10%. We changed the sales commission and gave the salespeople 100% of the first transaction, the first revenue, and thus we motivated the salespeople 10 times more to be motivated. The salespeople being more motivated sold like bad, opened up new accounts, and we were just by realizing that every time the salespeople got first sale, the owner got 90% of twice so tariff, but that’s the mindset here. Once you get allowable costs, you got to realize you can spend shares or inventures, endorcers, inventures with media who run ads not for much a lead, things I started talking about, better tuition or a video, people are quadruple, the number of people who got the regular magazine and the key to all this is not a pure play, it’s getting a lot of people started. Does that make sense, Rob?

It really does. As a program director myself, every time I sold a membership I get twenty bucks of federal thirty people a month i got a whole six hundred track value probably you know thirty thousand dollars it wasn’t very motivating jay i really see you talk about that i got a little bit more money up front of the whole whole lot more membership and other question i hope that i’ll get it today but if not tomorrow is about upgrading the quality of the professionalism of your support team yep we’ve got money and building themselves a real future you’re gonna have your your dynamics are going to change and when you understand that what it cost you initially is m is irrelevant to what you’re going to keep. But I’m teaching you how to not live hand to mouth, how to not have to worry week to week and month to month tax play about just making payroll.

But create and starting now, you start looking at it. So let me continue. So now you understand what I will cause. And I’m not going to get too deep into it now, but we’ll get into it. Maybe there’s some exercises tomorrow. You understand lifetime value. Now let’s talk about ROI and parlay. I’m going to talk about today and tomorrow. I’ll go say, wait, I don’t have any money to do that. Well, we don’t have any staff to do that. Well, I’m too strained right now. I can’t do that. It’s like a catch 22, right, Rob? Yes. I was going to say, the thing you want to do, it costs money. There’s resources, and you don’t have it. You have three ways to do it. You go out and borrow the money. Your house and take a second. Or it’s pragmatic. The Jay Abraham School, them into the cash to fund the activity.

[32:58] For example, if you start doing the referral generating process regularly, systematically, not just occasionally. And you do five or six of the coupling, the number of referral generated students that come in. Those students cost you nothing, or very little. Maybe a thank you card or a free couple of lessons or a dinner or something like that. But with that money, instead of putting it in your pocket, buying a date account and you use it to fund the first six months, the new advertising or marketing, or what you need. And you constantly parlay. And by doing that, everything becomes a self-financing profit center. Nothing costs you negative. Does that make sense, Rob? Don’t take that money and go out and buy a new class. If you don’t want to be a business owner, you probably should take a vow of poverty and keep doing what you’re doing. If you want to be a business owner, you have a moral obligation. If you’re not in it for the money and you’re in it for the good work, you can do the best you can to the most people you can in the time you’ve got. You’re not going to do that unless you’re a great marketer. You’re not going to be a great marketer unless you become a great manager of your marketing opportunities. Unless you’re born with a silver spoon and you’re independently wealthy, the best way to do it without ever hurting your family, your home or anything other asset is to parlay. But you’ve got to be very focused and committed to do it on a continuous basis. And, you know, a plasma TV will give you a couple years of joy before it burns out. That same $5,000 can fund three new salespeople for three months or two months on a draw. And those people each can not only close more people, but they can go out and set up joint ventures, penetrate new markets, work on weekends and high traffic carries. And they could be worth $25,000 a month apiece to you. And if that’s too high cut and half, cut and half again, it’s still a lot more yield than a plasma TV, isn’t it, Rob?

Okay, so now you get the concept of parlaying. Now let’s go to the three way to grow business model we talked about yesterday. I’m going to spend some time lists are good. And keep in mind, my strategy for working private review would never allow you to build your business on one revenue stream, one marketing activity. I would get you all to do multiple ones concurrently. But each time we would use the cost, nothing or very little in windfall that’s big enough to fund those activities that might cost more but would yield a killer ongoing profit to you. Does that all make sense? Rob, I want to make sure I don’t get too good at that. Can I add something to that? Of course. In the martial arts environment, having a revenue could translate to things high-cheap programs and be really profitable. It could be renewal programs in multiple stages like master’s clubs and leadership programs and it’s like the next brilliant.

Let me build on that. So what Bob is saying, which he’s taking, what I’m saying to you to a much higher level of opportunity, possibility and excitement. I’m saying income streams and he’s saying you add multiple products and multiple services that appeal to multiple segments of the market. And like yesterday we talked about having a program for kids before baseball season, having a very proficiency for soccer, having all kinds of different programs, you do not have to teach them. You can bring other people in. You don’t have to pay them. They can be revenue shared. They can go out and sell it. Your capacity to conceive believe it’s probably no different than what you teach. Right on the mark. Okay, so let me continue. Write these down. I’m going to give you a bunch of cool ways to grow more legal generating systems. They are the easiest. They are the most profitable.

[37:55] They are the most enjoyable when you transcend the inhibitions. And yet tomorrow I’m going talk about an enthusiastic communicator. We talked about that yesterday and I was talking about how to win friends and influence people and give you a short course summary on that tomorrow. The next is acquiring clients that are break even up front and making the profit on the back end. It’s exactly what I said. When you know your allowable cost a little or too much, you’ll keep spending all of you. You can’t. As often as you can, as long as it never exceeds that allowable cost and it could triple, it could ten times over the number of avenues of marketing opportunity you can pursue. Again, Rob, your job is to say, JH2F’s tractor, that makes sense. Printing purchases through risk river. May 2, gather to transact through take on more than all, well, like a software.

You buy a piece of software for your company. Maybe it’s billing software, you go to a billing service and they screw up. Not only do you make a bad decision, you get screwed up in your business, your cash flow, you gotta do, you gotta re-institute it, you got bad will. The point is to the extent you can identify the tangible and intangible risks that people are here unconsciously, we can eliminate and overcome those, say yes, the no or do nothing, inertia, procrastination, equivocation, contemplation or competition loses. Is that clear Rob? That was a bit esoteric, Jay. Are you saying that they have to be excellent communicators and find the hot buttons to move people to action and say, yes, I will take martial arts. to your school? Yeah, but it’s too full based outcome issues. Does that make sense? Yeah. I’m not going to enjoy it.

I’m not going to want to come regularly. My son or daughter’s food timid. It’s going to be too harsh. I mean, whatever they are. They learn to master. It’s not going to be a good return on investment. It’s going to become proficient, whatever they are. Incorporate a way to overcome all civically marketing or selling them for people, anytime more people to go the distance because they will trust you and you will demonstrate to them in a very powerful way so it’s a bonded connection which will translate to greater flow of referrals that you really understand what they feel. You really get what their concerns are and you want to make sure that they know that unless you overcome them they’re not going to really they’re not going to be committed. Everything I do is risk a reversal. This call is risk a reversal. It’s a free call deal. If I don’t deliver value on the loser, not you. That was designed to make it easy for you to trust me long enough for me to help you. That same phrase is appropriate for you. You lie to their child or children, right Rob?

[41:56] Thank you for the clarification portion or in your ad or both. Hey, you know, if you’re worried about not having the time, if you’re worried about it not being right, if you’re worried about us not understanding how to really make your child feel like a million dollars, if you’re worried about it, don’t worry. That’s what we specialize in. Your child can honestly say by the third decision that he’s really enjoyed. If you can’t see the glint in his eyes, you can’t see his posture or posture changing. If you can’t see him really hurrying after school to put on their little outfits and if you can’t see an attitudinal change in the way they treat you, we don’t even want to keep your money. Now that sounds scary hand to mouth but I can tell you that all the research I’ve done is when you start using very powerful many times more people to say yes. You will get them connected to you much deeper. You will get a few of them to take you up on it, but it doesn’t vary. It could be three times the people to buy and three times the people to inquire and you get three times the people to go a second and third three times the people to refer and you got to give back a few of their money.

It’s moot. It doesn’t matter. Does that make sense Rob? Yeah, I’m on the edge of my chair here. Keep going. Well, give you a good example. When we do seminars, being expensive seminars, 5,000, 25,000, we We don’t even consider their purchase binding until two o’clock on the second day. Sometimes we’ll put a whole check for five or $25,000 on a table and they can take it back anytime they want up to and including. It tends to have more people to come on board. And I want to add to that, I’ve seen this work with my own eyes. We were in LA that time, Jay. You were in the room next to us. I think it was a $25,000 ticket seminar and the room was full. We had 100 people and then we put out there what’s better than that. We then sold a thousand people a $5,000 taste set up with the same guarantee.

We gave them three months, not only to try it, but then we denominated very specific outcome. Where most of you fail in risk reversal is, and I’ll give you the easiest example that I use. Let’s say I was selling supplements, Rob, in that guarantee. Perversal, isn’t it? Some. But if I said to you, Rob, here’s my proposition to you in a nutshell. Following things happen within six months. Number one, you’ll see a dramatic change. And you’re not saying you feel like you did when you were 20, but you’re going to have maybe twice, maybe three times the energy. So rich and so satisfying that you’re going to wake up so refreshed you won’t believe that you’re going to be. Because your concentration is fast. So you can’t expand your IQ. What I will do is promise that your mind will function and gaze like a steel trap.

Well, it may not reduce like in promise, but in six weeks or less, it is that it may be less. relationships that work will be amazing, your sense of contentment and connection in your environment will be, will be, in every life it will be better, your sexual life will be better. I don’t want to get into the details, but you’re going to be very impressed. You don’t have at least time to sit there to keep your money you don’t want to. If it does, you’d be foolish not to keep going on each and every day for the rest of your life as long as it continues and increases. Now, Rob, do you see a difference in the outcome? Yeah, you want to highlight the benefits and read the future, how good it can be and how in many different planes or issues so that it’s clear there’s a vivid picture of expectation and then you tie it back always to mutual performance.

[46:24] I can’t do it all for you. My seminars, I’ll say if you don’t read the grounding material, you don’t participate, you don’t interact. If you don’t at least open your mind, then I can’t be responsible. Does that make sense? First things referral system, the next thing is looking at a quiet client of breaking up the front, the break even doesn’t, it means many things. It can mean up to your level cost, it can mean you pay multiple higher on the first, into it more, it can mean also that you reduce the cost on the first transaction because you wanna get a lot more people started because you know, they’re gonna go again and again multiple different. The next one is post beneficiary relationships. Of the $7 billion I have generated revenue and income and profits has come from endorsements strategic alliances. Of the $100 million I have personally generated in training programs, in product sale, 80% come, not from the open market, not from running cold ads to people that don’t know me and paying a premium for a circulation that isn’t interested. But I go to companies who already had a strong, very credible relationship I wanted to reach.

I get letters out, I get them to put your newsletters, I get them to catalogs. You do Do that, three wonderful things happen. Number one, you shorten and almost eliminate the credibility, total credibility. You’re taking advantage of the years or decades of investment of goodwill, of trust that the other organization, association, publication, business has, where a bigger amount, you get a much higher response. Number four, lousy poor advertising still pull fishing in a fish hat tree pond. I was a little kid. My parents would take me to a fish hatchery once a year. And they had like 9 million small fish in his little pond and you throw your, you know, you’d only catch, you know, 12 because you’d hit every time you threw your, but it was very exciting. It’s like that. Does that make sense Rob? It does and host beneficiary relationships are very easy to set up in the martial arts industry.

Yeah, we have a whole course on it, but if you like tomorrow, again, for everybody on on the miles call. I’ll give you some transcripts of two or three 90 minute, I can give a short course here but it’ll take the rest of the time. But the key is you find organizations, individuals who are dealing with the center recommend you to endorse you, to introduce you to joint venture with you. And you share just because now you understand allowable cost. I mean, I’ve even gone to competitors and shown them how they can make more by recommending me to their people, going to their inactive, going to the leads they didn’t convert. I’ve made millions for them and millions for myself. I don’t want to get too deep, but does this make sense, Rob? Indeed it does. OK. The next is different forms of advertising. And the key to advertising, and I’m going to build on it before this call is over, is they all have to have the maximum amount of direct response components.

And I am going to give you a checklist of about 20 key elements in a formula to follow. But if it’s not, and you’ve got to test, and we’re going to get it testing, too, before the end of this. But what I found in studying your industry is two things. One headline over another, and proposition over another. You don’t test one media over another. You don’t test one losing approach over another. You don’t test one entry approach over another. You just sort of do what seems to maybe cost times the future income because you’re minimizing a sense instead of maximizing a yield. The only way you can do it is testing. When you test one approach over another, you will find that one will always I got pulled up by 20%, 50%, 500% as much as 21 times. I told you they headline approach, but I’ll give you a real world example.

[51:00] I made $40,000 a month for one solid year from one half hours worth of work, which is like, you know how I did it wrong? I was just selling gold, and they were running ads in the Wall Street Journal and they had an arrangement where banks would help finance gold purchases for their investors. And their headline said, two, three, I realized that that didn’t express to the intended buyer what the benefit to him or her was, it was just a blatant statement. And I sat down, I didn’t change any of the body copy that he had. I just changed the headline, I tried five different approaches. One approach pulled just the same, one approach pulled 20% better, one approach pulled three times, and one approach pulled five times more for no different, no additional cost, no change in body copy. What my change that was the winner was, and this was back when gold was $300 an ounce, the headline said two thirds bank financing.

What mine said was it denominated the offer and the implication and the relevance to the advantage of the buyer. It said if gold is selling for $300 an ounce, send us just $100 an ounce and we’ll buy you all that’s formation of demonstrating the benefit times as many people excited. You have the same dollar but you have it. In memory told about yesterday you have about 30 different impact points. You can test headline first because that’s 90% of the impact. And that is not just the opening of a split paragraph of a mailing piece. It’s the headline or the opening paragraph of a Val-Pak. It’s the opening thing you say when you get somebody on the phone. It’s the first, for example, retail store. They did $40 million, but they were doing $10 million when I first met them. And we tested 25 different ways for coming into the furniture store.

And we found that one approach, 300% more business than any other one. I’m not going to, I don’t have time to put you through a guessing game around, but it wasn’t. Can I help you? It wasn’t. I don’t know if it was today because it couldn’t get off the hook. They had to tell you what they’re interested in. You could guide them. You could be a leadership role. You could walk them over to that. Pretty cool, huh? Just a quick second. If I’m a school owner and I have 500 prospects in my database, how do I test with those 500 prospects? Okay. I’m going to give you indicative because you don’t have a big database, but you try a couple of different things. You break them into groups of fifth postcard or a letter and separately, because you know that all are going to get received and all are going to get read, you call the 5050 and you have a 30 to 60 second message that you leave because the vast number of calls you’re going to do are not going to reach a human being.

They’re going to reach a voicemail. And if you have their email, you do the same. And then you look at indicative results. One approach pulls because you’re not a research scientist. you haven’t taken it to a full level of analytical and scientific. Then you take whatever, produce the best outcome, and you go back to 450 that didn’t get that. Does that make sense? So if I have an ABCD, whatever that medium or promotion was, I then take that and send it back to… Now here’s the next thing that nobody realizes. If you do a mailing or you do a telephone, and it produces X result, and that’s profitable, either upfront on your old basis or maybe breaking it, This is baby breaking eating, but that’s monstrously profitable based on all the renewals and those people buy. You can go right back to that list the next day, 50% again of that yield, 100%.

[55:31] And most people don’t do that. Say, well, we do one mailing a year. I say, why? My clients mail until it stops being profitable. Does that make sense, Rob? Perfect sense, Jay. Okay. So you could do all kinds of experiments with advertising. You can use direct mail. And my recommendation is nothing wrong with Val-Pak as a test medium for headlines. I think you do a lot more direct mail if you do joint ventures where you get organizations to endorse that letter so it goes from the head of the baseball commission or from a good to the mailing list of the parents of the surfboard company or it goes to all the people who are Kaplan’s, whatever they call score. You know what I’m talking about? Next thing is telemarketing. And by the way, telemarketing is very defined and enquiring. I told you yesterday that we are generating 50 percent.

On the one hand, you could be doing great marketing because you should be getting a hell of a lot more lehes and you should be converting a lot more but not in the first step. Does that make sense Rob? Yeah, I think what you’re saying is if a school does a demonstration at the mall or a school talk at the local academic school, they need to collect those phone numbers and then tell market to follow up and get those students to come in and try the program. They got to use direct, they got to become masterful of direct response. Any time you ever interact with an organization of media, you can offer that requires them to raise their hand and take action where the action is coming in, where the action is let me send you a list of the do’s and don’ts. The action is try this test. The action is get some action that constantly advances and their commitment and their forward progress towards becoming a student or having their child become a student.

Does that make sense? It does. You sometimes take seven to 11 follow-up communications called things. We’ll talk probably tomorrow about building credibility in the sequence of events. But the next thing on the list, kind of mailing piece, you’re percent if you do it right. When you’re telemarketing on a follow-up basis a lead, you’ve got to realize this reality, Rob. Rob, 90% of the time you’re not going to get the intended person. If you are a strategic marketer, you realize that every message is listened to it that has value. It has no value, it is deleted. If you’re having a progressive prospect, and I’m going to give you a concept here which is very powerful, your attitude should be from the beginning. It is only a matter of time before I will be teaching and having as my student and impacting the lives, the character, the health, the well-being in my community.

And it needs to make me to change hands before I contribute strategically and systematically. So I’m going to be the one who’s something I’m going to invest in them first. It’s going to be a mindset, Rob. Does that make sense? Yeah, it sounds like there’s even an art to leaving a well-crafted voicemail on a future student’s career. There is. It’s got to always have the you attitude. It’s got to be in the best interest of the intended student or the parent. It’s got to take them to an action. It’s got to be really stimulating and if you’re not going to reach me You don’t say hi. This is Rob from Acme Martial Arts called the statistical probability That’s going to be well in martial arts no movement is wasted It sounds to me like I’m going to give you a concept which may be a little afoul of martial arts But it’s a pretty powerful concept in business more is accomplished by movement than is ever accomplished by pure meditation So you leave me a message and I don’t want to get into today Maybe we can do some actual roleplay tomorrow and do some but you got to craft your message So they constantly and sequentially advance.

[1:00:10] Not how this is Rob called me. It’s like, this is Rob. And I know that you call because you had, and you got to know, you got to be able to customize. I know you call because you wanted to in his, so to me, three of our students are going to be here tomorrow. One of them couldn’t, you know, stuttered. One of them, you know, was beat up as a bully. One of them was this, and they all have that remarkable progress. And the parents will be there in that. And I’d like to invite you to have John come and hang with him and talk to the parents. That took me less than a minute. It would have made the most of the voicemail with a future time some topics for people. But the next thing is running special events or information nights. Many of the people I interviewed did some financial marketing.

I had a that became the third most successful versus their advertising and concentrating on fundraising deals, activities, the kinds of wild things and they attracted all kinds of people. They would go to all kinds of other organizations. They would sponsor events for them, open houses, they would pay to have it their facility. They were very inventive. They had something different happening every week and oftentimes multiple ones, acquiring qualified lists. As I said, the local newspaper is probably the least viable thing you can do. There’s all kinds of other organizations, enterprises, people who have 10 times better lists. If you look at every other place of an organized discipline manner, that student would be at some kind of a joint venture where if you give them a share of the revenue, you exchange lists with them, you give them free. I’m going to talk about Barden today tomorrow.

You give them free training. I’m going to teach you can create. All of you can create, let’s say Rob, of the average school. How many have unfilled places? About 99.9% J. Okay, if you have five or ten openings in three classes and the average opening has a value of $3,000 that somebody signed up for a six month class, okay? Is that reasonable? Now, I think it would be about probably about 800. Okay, 800 times three times five times five. They create 12,000 that would normally pay cash for just by mastering barter. I’ll teach it. I may not teach it today. Could I continue? Please do. I love the sounds of the barter thing and a lot of school owners do, in fact, do some I’d teach my clients to do as a profit center. It’s $10,000, $20,000 a month, which would cost them nothing. I’ll give you a quick, the guy that taught me, the Carnival Cruise started, they had one book that was unfilled, they traded all the unsold seats for everything else they needed, including all the advertising, and they parlayed that into a billion dollar business.

[1:04:18] I’ll teach it to list. The next is to develop a unique selling proposition, not to take the gentleman that we talked to yesterday, the task who said, I think it karate should time or the effort or the interest to figure it out for you. Proposition is, the need selling advantage will be different for different ones of you. It will be different for different form market. It may be the fastest, easiest, ain’t child. So every school on this call should make us a homework assignment to develop a unique selling proposition. Yes. The next is, how do you think I get $5,000 an hour? How do you think I get $25,000 of stamina? I get it because I revere what I bring to the table and what I’m going to do, and I dimensionalize it. I doubt it most today why, positive 100 years, 85,000 hours, hands-on working, 1000 with the same issues, make John never show the anime.

Makes sense, Rob? You’re going to basically present it as such when you’re talking to somebody on the phone somebody on the phone or presenting to them the enrollment conference or renewal conference or sitting there talking to them about an intro or even on the deck in the introductory course you are. That is correct. It is immediate management. Every one of you should constantly be looking. Five or eight areas that your martial arts training focuses on. The tie to current things that are going on in the world and the community should be doing, like I said yesterday, challenges. You should be talking about, you know, with all the different weight loss, you should do a report on and compare the success of your weight loss with all the other things, the ease, the defining incredible approaches. I do have a bunch, I mean I hate to do this to myself because if I ever wanted to tell you anything, it has nothing to sell but I’d rather get more packed into it. I have 10 pages of notes on how to write and create good PR that I can also give you tomorrow for those people on tomorrow’s call that we can put up and post next week if you would like.

[1:08:31] That’s a very end result of doing all this PRJ for our audience. In trenching yourself at a superior preemptive role in the community as Faith’s leads, number four, you’re collecting a composite of credibility so you can turn into three things. All kinds of advertising, all kinds of things you send out. When people want to know about my skillset, I send them a book that’s got a collection of 50 different articles on me twice in USA Today, once in four times in entrepreneur, four times in success, twice in investors, business, they elect your case studies in their own words. And then I keep sending them other things when they come into my office. If you want to position yourself as a martial arts star in your town. And anybody that has a call can do it, even if you have a version towards communication because you can get someone else to do it for you and you can pay them on results, not on a fee because we’re in and paying as we go.

The next thing, increasing your retention, three ways. Number one, hash accountability and communication, and that you’re going to check up on the student or them frequently, not just at the school, but privately, because that produces a greater outcome. It’s in their best interest. Next, programming them for the future. So in the beginning until you get obituated, until you start seeing the compound geometric result, you know, in the first couple of weeks it’s going to be a slower process. You’re going to have a certain age. You’re going to preempt what they’re going to normally feel. You’re going to knock on a comm, you’re a kid. And that’s when you break through the barrier. And you tell them the story of the right stuff. Did you ever see the movie, the right stuff? The creation space. And it shows Charles Yeager in the sound barrier when he first did it.

I thought everyone thought he imploded it. It was just the glory and the exhilaration of moving on to this higher plane of exhilaration and fulfillment. I’m telling the dream of the future and believing. And I believe from the get go. People said to me, how are you so successful? vision of you at a higher level than you have yourself. I know it’s possible. I see you doing all these things. And I verbalize it so it becomes real to you. And my confidence in you is so compelling and contagious, you can’t stop. I started from the very beginning. So I program you ethically for the future. I’m going to start with a basic. We’re going to get you disciplined. We’re going to work on your profiles. We’re going to get you comfortable. And we’re going to take you to a black belt. We’re going to get specialized programs.

They’re going to see how high it is. They’re going to look at your life. And we’re going to concentrate on other areas. I’m going to be there for you forever. I’m just going to let their long-term result and more people staying than the other. Stay with them frequently. The more you communicate, patients have to be. They can’t be about the school. You’ve got you about me. We found that 28% of the grants, and you’ve got to stop constantly to be sharing success stories in the conversion process, which is the long-term follow-up process. I’d be sending out testimonials. Press to them. I would be sending them success stories. first-hand interviews. I would be interviewing all my students on cassette date with inexpensive videos I could send out. I would be building such credibility and I hope that it got circulated in the community. Do you think, Rob?

[1:13:23] Well, if you didn’t do all this things, you’d mention it slower than you almost have this market twice as hard just to get more new students and leads in to kind of keep your membership numbers. Well, what I teach, and you’ve stolen my thunder, but it’s very appropriate. I apologize for that. Oh, no, I’m just thinking, Rob, thank you. Your job is to be advocate general for the listener. If I can cut, I can’t talk. If I can reduce 50% of just like me giving you a 50% boost in students, except for it didn’t cost you anything. A few different shifts in how you get out of martial arts science, you can double or triple your income. That easy. It’s that simple, but it takes concerted focus. Does that make sense to our inquiries to advanced students? The easiest, simplest, fastest thing, each and every person on this call.

But, much are done with tomorrow’s call. The organization with the parents, with prospects, helped running in consultative selling. People ask me, what’s the simplest? The greatest leverage you can give someone. I don’t do this, but I don’t do this. I become masterful in the science, not the art, because the arts are hard to master. Science is very very science of consultative selling. I may have to wait until you feel, you understand, you empathically, who is there, and all the other students are there. For them to be the best they can be, you’ve got the process to do it and that you are in love with their outcome and your first and foremost school is not signed up. Guess what? You’ve got $12,000 or $15,000 a month in tradable. You see you trade them. It’s holding for sustaining that and I’m not talking about just 10 to 500% more conversions, more than 100%.

[1:17:29] More people can be generating a process every chapter and seeing what it meant differently to each one of you and how we can combine your different perspectives into an action form. Does that make sense Rob? It’s a state of sales person by nature. They can go out into the community, find someone who teaches seminars on it, barter with them from free martial arts, plus a soda really, doesn’t cost them up any. That person can come in and train the staff and then for the rest of their careers a martial arts professional, they can dramatically increase. The firm, the strategic alliances, endorsements, and overspend. They got much deeper budgets and much bigger organizations, and much more. They got teams in the field, Jerry selling products and services. They have all this good clients, members, you can tap into that and the leverage of it is profound.

Now Rob, I’m going to be rude for a minute because I’ve got to get some water. I’m losing my voice and I’ve got to go outside and eat one minute. And I’m going to give everybody an exercise while I’m doing it, okay? I want them to make a list right now of every entity that’s a cool relationship with the same market they want to reach. I want to make a separate list of what they know are commonalities that their students share, i.e. they go to soccer, they go to this, they get, you know, they go to score and I’ll be back in one minute, okay? Okay, Jay. Thank you.

Part 2

[00:00] Folks, at the end of this question from the audience, so you might be thinking in that direction if there’s something that you haven’t had answered yet in the first two phone calls, jot that down and try to get through. We’ll probably have about 30 minutes for that purpose. In the four or five no-cost ways to start that I talked about yesterday at review this morning, that is the mother load. Also, you get these organizations to endorse you besides there’s a great, great bonus. Besides two, three, 10 times greater result for the effort, 100% of their market get to see you in a very positive light with them putting the full force of their name, their credibility behind it. I realized this years ago, I went to Tony Robbins at Imendors me, I went to Success Magazine at Imendors me, I went to Nightingale-Conant at Imendors me, I went to 25 financial newsletters, had them endorse me, you endorse me Rob.

Well you’ve spent for example, you know, five, ten years building credibility. You’ve got a payroll of $100,000. You spend, you know, maybe 50 grand putting the magazine out. I got to take full advantage of all of that just for having you put eight pages in your magazine or send out an email. Do you see leverage there? the same dynamic works for each and every one of you. And that’s this thing, this one concept people is like going to transform your whole life if you execute an act on. Let me continue. To increase the size of the transaction, number one, improve your teams, selling techniques at what’s called upselling and crossselling. Same thing. If you don’t, and I’m going to urge you tomorrow and give you a train how to compensate and you multiply many times the level of achievement. The next is use point of sale promotions.

You ever go to that impact impulse purchases? Yeah, like at Starbucks, you same thing. Yeah. If you use not just abstract, but very stuff and things like that that are setting them up. If every time you talk to a parent, and if you have the right mindset, the strategy preeminence, which I will have to teach tomorrow, you will never look you will never be anything early in report you were constantly you constantly advancing enhancing multiplied future relationship because it’s in the best interest of the student right well jay most schools out there have a pro shop and it’s usually stocked with all kinds of martial arts items that are either mandatory or extra stuff that they could purchase like you know weapons or books or any other kind of are you saying that they should have point of purchase material say at the front counter with things that are on sale and items that the students can purchase?

Maybe, but I’ve not been to a lot of the schools, but don’t the parents sit in the lobby or something? Sure they do. I think the lobby is the big impact. Well, who does it mean it depends on who. You got three types of students. You got three types of parents sitting in the lobby, and the older students going through the brochure can take different items and put samples of them in the, in the, make certain items and have a special extended class to deal with it. I mean, basically you’re going to get exactly what you wing ass for. Does that make sense? It does. Okay. Let’s talk about other ways to increase appointed purchase. You’re going to have signage, good signage that doesn’t just, it’s not abstract. But wait, any and all kind of, I think some of them probably do, don’t they, Rob?

[05:14] Absolutely. It’s got to denominate, not to you. Those people in your business, if they’re running a ban, I know that that lesson is going to deliver to me something I want because much more precious to me is my time and my opportunity cost. Do you understand that? Can you give us a specific example, Jay? Yeah. Let’s take, what do you think the singularly biggest most universal reason people would take martial arts in general? Well, say for kids, let’s just say, if you’re a banner instead of saying Jay’s karate or karate or Taekwondo. like banners said made that to me is going to track the people for the right reason instead of somebody putting up card and a fishbowl and maybe winning a free lesson and you get into quality lead generating externally the quantity it’s about the quality it’s about resonating the right payoff so that everybody there once what you’re offering they want the outcome they’re soliciting you does that make sense can i take it one step further if you’re going to double a child confidence in six weeks guaranteed does that mean you’re going to offer them a free six-week course but then try to sell them on the program part of the way through.

You’ve set me up. I’m going to stop this and we’ll maybe do some more on this tomorrow. Okay. Let me get into the answer because it’s the next thing I want to talk to. Okay. I want to teach everybody here in three minutes or less how to be the marketing expert community at Bar Nut. It’s not trying to take copious notes and remember everything I say and become a really great copywriter. although I’m going to teach you in a minute how to write great copies. It’s about understanding answer most of the people I interviewed and you guys were, that I interviewed were the higher performers, really were trying to tell the market. You weren’t really asking them constantly, what approach it feels more to you? What offer, what guarantee is the one you’re going to respond to the most and I’m going to get the most subsequent resales from?

You’re just sort of saying, I think this is a better approach than that or I think this time of the year I should do that or I think that today I should go with weight loss and instead of going with all of them at the same time, in totally different ads, in totally different approaches. What I have learned, and the reason I’ve made $7 billion is not that I’m brilliant, in fact that the key to all direct response marketing is testing. You ask different questions, and when you test what you will find, you headline proposition, it’s a guarantee. When you testify that one headline or opening works of 21 times. Rob, that means that one thing can pull $100, no thing can pull $2100 for the same effort. One proposition cannot pull another buy-out as much as 10 times. One thing, weight loss first, that.

Now by the way, just because it pulls better doesn’t mean it could tell better. You got to analyze that. I’ve seen $15, $31 by three times. I’ve seen 19 out pull 18 by five times, but you don’t know that if you try to guess. The price of guessing, the price of conjecture, the price of thinking you know what the market wants better than they do. If investment, meaning you make less, you impact less, you are respected less to your community. If that’s what you want, you’re welcome. But for very little additional effort, but for a shift in attitude, the only vote that counts is the vote of the market. And you should always be testing one premise against another in analyzing the results, Rob. Am I right? Didn’t we give everybody in the grounding materials, the case studies? It’s a CD that’s got 800 pages.

[10:21] These are 800 pages of actual real life, firsthand explanations of different things. They did, different approaches. They tested different mindsets. They adopted. 25% of the successes reported, which doubled and tripled yield, were nothing more than testing one risk reversal guarantee. One way of saying it against another, engaging the difference it made in their initial sales and the difference it made in their ability to sell more advanced and expensive product services. If you guys haven’t read this, shame on you, but I urge you to read it because I gave you basically about $300 million worth of ideas all laid out, including, or at the end, told you, because they’re writing for themselves, they did it as a gift to everyone else in the future, told you what you had to do to take advantage of the same thing. A lot of years working for one of the largest testing organizations in the world, they taught they did billions of dollars of experience, millions of dollars apiece.

They would test one sales approach of another, they would test putting things in different places over higher, lower, they would test coloration difference, they would test difference in customer service, they would test what they found was this. Twenty-five percent of the things you currently do are actually negatively, they’re bringing effect at all. Twenty-five percent of the things you test your results. Twenty-five percent of the breakthroughs you will get are going to come from things you would never consciously think about. They’re going to be counterintuitive. If you’re life dependent on it, if you put your whole life savings or the life of your first born or your spouse on the line you’d lose because you could just have to test it. They also found, if there’s twenty-five percent for the greatest breakthroughs, you do one thing, it only works marginally. You do something else and then it works marginally. You do them together back to back, following each other, and the outcome is monstrous. You’ve got to test constantly. When you do that, that’s great, or one thing will work in another. Your goal is not just to do the, the first thing is to find the highest performing and do that first. But if you have seven things that work in our probable Rob, you can do all seven as long as they pay out at your allowable cost.

Does that make sense Rob? Yeah and a long time ago in one of our conversations she’s talking about testing and since then I’ve been applying that strategy and I have to say the results have been un… That’s great, that’s great. Now I want to switch because tomorrow we’re going to do a lot of interaction work. I want to build an element of things I want to do. I’ve talked a lot about direct response marketing, haven’t I? I want to give you some formulas generally that I want to give you some… You want to give you three formulas, there are one, two, three, four, five people that are getting people out there. One of them is Robert Collier, one of them is Victor Schwab, one of them is Bob Stone, one of them is Bob Bly, and there’s a couple other people. I’m going to give you all of their formulas, not to confuse you because you’re going to see they’re all the same.

And I write it’s the same basic formula for great consultative selling, okay? Their attention by telegraphing something that has value to them, not you. Next is your route as their interest by demonstrating what the implications of that are or showing it in action. Next, you stimulate their desire by making it available to them right now. Next, you ask them to take action. Four things, it’s called the AIDA formula. That’s the simplest. The next simplest, there’s something called attention, interest, description. You describe the product or service or the benefit. And by the way, people don’t buy features. They buy benefits. If you say, hey, I’ve got 12 instructors here, and they have on average 10 years experience, that’s a feature. If I say that means the average instructor to student ratio is four times better than the average school, and the average instructor is five times better skilled than anyone out there that’s a lot more powerful isn’t it it isn’t if you have a leadership team with a whole bunch of assistant instructors you could make a claim like that it’s very true it’s just most people are doing it so i go on to the next i’m going to go skipping some of the very close one excellent gain detention focuses on the prospect customer stresses the benefits differentiates you from the kind of preemption.

[15:30] What’s different about me? And there’s a whole formula I can give you maybe tomorrow. Five, prove its case. You know, you might be skeptical, so let me prove it now. First of all, here’s some of the prestigious people’s help. Second of all, here’s the people who have written the stories about them. Third of all, here’s, you know, here’s what he’s masculine. Fourth of all, here’s the kind of way he guarantees. And I prove it to every different point of view. And what I just said was one paragraph, right? So it didn’t take a lot of space. Next, establish his credibility. Here are the organizations who recommended him. Here are the numbers and the kinds of people he’s taught. Here are some of his actual students who you’re known in the community. Here’s the rewards they’ve received, built value. Here’s what it will be worth at the end or throughout.

Here’s what that means in your life, in your career, to your body, to your relationships. Hey, close, does that make sense Rob? It does and it can be done in person, it could be done in direct response advertising. If you put on a website, you name it. Good, let me now get into a couple of the key things about crafting any kind of direct response selling communication, right? Yes. Okay, 25 rules, I’m gonna give you two different things. I’m gonna run through them fast. Write about people things and facts. right as you talk. If you look at how we talk first, how we write, we talk colloquial. We talk, we talk one-on-one. We talk me talking to you. Use contractions. People don’t say, cannot. They say, can’t. Use first person. I’m talking to you, Rob. Quote what is said. Put yourself in the reader’s place.

I know how I would feel, Rob. If I were the mother of a beautiful, you know, bright, you know, healthy son or daughter who doesn’t have a good uh… sense of their own worth who who’s tended to doesn’t want to play who doesn’t go out for sports who who struggles at school when with a little shift they could have such a richer life that makes sense i heard three years feelings you got a show with respect for all misunderstandings don’t even talk about anything that could be misconstrued don’t be too brief or if you are pretty there’s so much more to say this is only the introduction i’d love to to to to give you our website that has everything posted i’d love to spend ten minutes talking about your son or daughter your your own situation i’d love to have you at the school call without risk call without obligation let’s figure the best way to take you to the next step and i would just turn into a website because then you lose him to the call we talk about the no give the website okay and i’ll download it basically your goal to get him on phone i go to have a I really have 10 times less response.

No response. Don’t be too brief. You’re trying to take this. What’s the goal? I’ve done millions, $7 billion, $50,000 different selling systems. I’ve personally tethered proprietary selling approaches. That works for you. Keep the sentences short, the paragraph short. Five lines maximum to a paragraph, space in between. You may think it’s cool to have four inch long paragraphs or one continuous paragraph. Don’t use, I mean, ethics or pictures you should use, just as a waste of the focus. It’s not strategic. And don’t put anything cluttering underneath or on the sides. That diverts from the, like they have demoscalees and paracles. Do you know it? No. Okay. I think Demos, one of them was, the orator one of them was a farmer. And Rome was a very tongue doing, he was done, every one of those, he was advocating why they should raise arms and fight Rome.

[20:31] everybody said that was gotta be the greatest speech the other one was a farmer he was he’d been there as family for you he loved it the soil the people i don’t care if you send it to a thousand people ten thousand people if it’s on tv and it’s seen by twenty five million it’s being seen her read listen to one person at a time it’s an expression of media you that makes sense well that that story just told summarize everything in your list uh… that’s exactly right so i’ll let me go on to the next one run out time here. These are John Caples, great copper. 20 ways to increase the selling power of your letter and email brochure. Present 10 second person. Keep hammering at the reader with you. It’s all about you. It’s all about you. It’s all about you. The first one there is you use three or more. The SEB-EDS do two things. They break up. They offer. They tell a complete story.

They let somebody radar in on something they can start out in and get sort of engaged because like a clutch, you can’t start always in fourth gear. You’re assuming you’re at the point of interest to everybody you may not be. The third paragraph may be the topic, maybe about health benefits, maybe about stamina. But you want to get him started. Next thing, not to be read that otherwise wouldn’t. If you have a picture, it needs a caption. Don’t assume people perceive it. The caption gets read like 10 times more than the picture. Yeah. This is a picture. And Smith, who just 90 days ago weighed 20 pounds more, had a three inch bigger waist, 80% left a long-choice looking woman doing a kick or something. The most important job of an add or letters to center, all the attention on the technique of presenting it.

I already said short, simple words to express it. Educated readers understand short words. The Wall Street Journal is written for a ninth grade education. The local newspapers written for his seventh or eighth. Christmas should be arranged so that the information comes first. Sales talk is placed first. The reader will never get to the information. It’s logic 101. Advertisements that gives away its secret in advance is like a magician who shows the audience the secret of his tricks before he performs it. I’m skipping. Long copy will almost always out-pull short. It pays around. But isn’t that contrary to a full thing? I’ll encourage you a few more things. Set up in paragraphs, subheads written for you. Advertisers who can trace the direct response results of their ad use long copy always over and over short. Copy improves when we call in the quote and we cut it.

You should overwrite. I can teach you in the next call how to be your own best copywriter. Rules of mail would apply with equal force to direct response. Rules for headlines, paragraphs, always are the same. Study the successful letters, add the key repeating. Emulate. I basically have something called the 100 greatest headlines of all time and I told you I’m going to put the 35 lessons out there. You can use those things and emulate them. I basically, great direct marketers actually emulate and model and borrow. That which already works. You don’t have to recreate the wheel. If you see an ad for a very sophisticated direct response ad repeating, if you see letters coming all the time to you at home, you should pretty much figure out the headlines were the body, the premise, the call to action, the approach works. You can borrow that and you’re probably going to be far ahead of the unproven, untested stuff that most people in the industry put out. I want to stop here because we’re extended in like 25 minutes. I would like, we covered a lot of ground. We didn’t cover another five things that I wanted that I’ll have to pack into tomorrow. I’ve got a great day for tomorrow.

[25:25] I’m going to leave it sort of as a surprise, but it’s going to be probably twice as rich and fast-paced as today but I hope we covered a lot of ground. I’d like to open up for a couple of minutes for questions if you like. Right. Sure. I’ll hear you there. Let’s do it. Yes, sir. Let’s tell anybody on the call who has a question. Please feel free to do so. What do they push for one? I need them to please press the one on their touch-tone phone now. Please only press one once. If you press it twice, it will remove you from the queue. All right. Our first one will come from Chad Foster. Chad? Yeah, hi. How are you? I’m doing great. Thank you yourself. I’m pretty good. Did you get anything out of this? too much and well probably but you know i’m one of the people out here that’s got uh…

i’m one of the zero point zero one percent and my school booked uh… i’ve got relatively uh… long waiting lists and uh… the only way we can keep going as far as i can see to to uh… let more people come in is by opening more schools you have three choices. You can open more schools in a joint venture with somebody who’s not booked who’s already got a fixed overhead who’s not using it. I mean you want to find nine million schools out there or nine million facilities that are only operating one or two hours in the evening and you could commandeer all of them for a very modest incremental amount. Number two, if you got away listening to your already booked the other option is raise your prices, double your prices and it probably won’t matter. The other thing is Well, right now we’re teaching five hours a day.

Okay, and a hundred percent of people in the waiting list can’t come any other time? That’s one of the things we’re trying to test right now to see if we can get more people in during the days and stuff. I mean, if I were booked that much and I had the capacity, I mean how many people in a class? Our classes are between 20 and 25 each. I don’t know your field well enough, Rob, is there a maximum for… or a lot of it, you know, it was just 25, the maximum, if you had 50, would it matter? Not at all. Chad, how many square feet do you have? We’ve got, oh, you gotta help me. I’m over in Denmark now. It’s about 220 meters, square meters. I think it’s about 2,200 square feet. Hey Chad, let me ask you this. But definitely, and tomorrow morning, you, if you make people on your waiting list.

I’ve probably got about 100 people on the waiting list and all right now between the different and the quarter. Listen to me for a minute if tomorrow morning. You had those hundred people as students. What how much more would they be worth you every six months? Over here What give me just one second and I’ll tell you roughly give me worst case is it worth it? Give me just approximately in US terms how much would it be worth $30 a person per month? If there is a $3,000 what would it cost you to go down the street and rent a bigger facility and tell everyone that’s where they’re gonna go a lot more. Over here we’re out pricing our nearest competitor by about 73%. What I’m saying is to rent a facility to go to a hotel, to go to somebody who’s now using their time. I mean a lot of people, I mean very frankly, is that old adage rob about the fly that is stuck in the glass wall when in fact the wall only goes up like three feet. Limitations that it doesn’t look at the opportunities. You’re looking at this chance that say you got to go here for training or you got to wait nine months. The odds are if you use marketing to educate them to why it’s to their advantage to do it they will do that. I mean tomorrow morning you have $3,000 more a month coming in. I don’t think it’s going to cost you anywhere close to $3,000 a month to use somebody else’s facility for two or three hours and the truth of matter is if you can add all to your existing classes. You don’t even have any more classes.

[29:48] Why not get a facility up the street and have one of your black belts teach it as kind of like a satellite program? Yeah, and have them pay a little bit less, but they get on the waiting list to be upgraded due to somebody falls off the other one. Yeah. You got so many options, Chad. You just kind of take them. And if you don’t want to take any of those, tell everybody there that the price just went up 40%. You appreciate it. And if they don’t want to stay, they can go to the, they can be downsized to your, your and put the other people in it more money. But you’ve got a lot more options, man. I’m tuition in America as well over 100 bucks now. Yeah, I know that. I’m biting myself every day because of that. Good luck. I hope you’ve gotten out that help.

Good luck. I hope so. Thanks. Thank you. Next. Our next question will come from Mr. Terry. Hi, Gary. Hi, Jay. My question is about a little bit of print advertising because I don’t do a lot of it. And I’m working with some other martial arts schools to jointly advertise because we’re in different geographic areas, but we reach a target market in this paper that we’re in. And I’m trying different headlines every couple of months. I have expiration dates on an offer that goes with each one. And I keep changing the picture with the headline to offer a different benefit so that I eventually hopefully hit all the different possible needs in the course of the year that we signed on to do this advertising. And so my question is, you know, as I’m testing, you know, response rates, how do I know when it really is not worthwhile to be in this publication?

I mean, you say test until it’s no longer profitable. Well, we talked earlier, this is called about allowable costs, right? Uh-huh. For success. Now, our cost of that, let’s say it’s commission right now, even though it might be a lot more when you understand allowable costs, let’s say you’ve got a $400, a break even on that first sale and still be making a lot of money at the end of six months with them upgrading to another one, does that make sense to you? Yeah. Until and unless it stops bringing in to your cash flow is better, does that make sense? Right, you’re out of there’s some fixed time period that’s reasonable to run and add, analyze the response. I look short term. You’re not sophisticated enough and you don’t have the numbers and the lifetime value, that you’re in trouble. More comfort and greater cash flow.

I’d start if the average, if the average people coming from days to 10 days, 15 days what? Fast and get them to close within a week. So I’d say I’d look to get 80% of your money if you don’t justify them stopping. Also, if you start a more streamlined, systematic streamfall of duo, now that I got this. Yeah. Is that out? Yes, thank you. You’re welcome, next. Next we have Mr. Steven Ray. Hi, Steven. Steven, maybe you got on on listen only, Steven. You got on mute? Well, he’s open. He’s just not responding. Steven, can you hear us? Last chance. Next, please. Sorry, Steve. Again, at this time, if you have a question, please press one on your touch-tone phone. I hope you do, because I hope I was clear. I mean, what I’d like to do real quickly, let me change the game real quick before we conclude.

[34:42] I’d like to ask everybody here to take a minute and then think what’s the biggest, most impactful insight in Piphany or opportunity that has come to your mind in call one and two that that you can actually take action on quickly, and what are you going to do with it, and I’d like you to then report it, because if there are a hundred different insights, if I can get five, ten of you to share them in the end of this call, that’ll probably show each of you four more things than you’d ever thought about, and that’ll enrich your investment in this that much more. So think about what the biggest single insight of all that you’ve learned is that you can take action on now, What you’re going to do about it and push one right now please. Okay, are we ready? I’m ready as soon as somebody pushes one, Chante.

I have a couple. First Clara. Myder. Clara. All right. Hi. Hi. How are you? I’m very well. Thank you. Good. I hope you’re enjoying this. Oh, totally. What’s your biggest single insight and what are you going to do with it? Using your, um, uh, students. What are you going to do with it? There’s tons of them postcards getting contact with them, communicate them with them, find out where they’re at, what’s happening in their lives, how we can be a service center. Good. Rob did that. What’d you make Rob $17,000 first time you did? Well, after reading that chapter in your book, Jay, I sent out a rejoin letter to a bunch of former NAPMA members and within a week and a half, 17 of them called in and said, hey, let’s get back on board with NAPMA. And what’s that worth a year? Well, I’d say at least $17,000.

Yeah, so it’s pretty well worth endeavor. But then again, next, Chantay. Hello. Okay. Miss Minor, will you finish? Oh, you have another thing you’re going to say. That was that and the copy too because I write my own copy for my ads and I do all of my ads and over the years I’ve been studying different things and you just kind of brought it all together. And tomorrow Clara, I’m going to teach you how to be your own best copywriter. I’ll try to do that at the end, Rob, remind me. Great. Excellent. That’ll be great. Thank you. Okay, next. John Graham. Hi John. Hey, how you doing? I’m good. The question is how are you doing? open and they’re shut at the same time. That’s so bad. What’s the biggest single instinct? What are you going to do with it? Well, I’ll tell you, I’m getting the actual lifetime value of my students and then taking the lifetime value and what it costs to run my school.

And then from there, look at my marketing budget, rather than, well, get a gross and throw 10% on top of that. You don’t go any further than that. And that’s what you do because that’s what everybody says, 10% of your gross. And I’ve been doing that, beating myself up for years. And I really thank you for opening my eyes on that. Very powerful. When you master this and you’ve got to do a conservative in the beginning, the success for the better of your school. Good luck, man. OK. We have Terry again. Terry again? Wow. I just wanted to say same as Clara. Working my previous students, working that attrition list, and especially when it comes to the kids, because they’ve grown and they’re now maybe middle school, high school or even college level, maybe offer some kind of a quick program that they can buy into that short term to get them up to speed at the level that they’d now be interested in, which might be very different than when they were an elementary school client.

Right. Keep in mind what I said, there’s this concept that you should indelibly embed in your mind and always remember, called the moving parade, the continuum of life, the cycle of life. change and they don’t always stay constant. They get better, they get worse, they get stressed, they get fat, they get intimidated, they lose confidence. But were we all born and instilled with everything in the beginning and never had any, but we aren’t constant. That works to your continuous benefit in a noble way because you can help get them back on track in an economic way because you’ll make a lot of money but you won’t make it if you don’t bring it to their attention and continuous advisory and consultative way. Thank you. Anybody else, John Dey? Actually, we do have Troy Teatwood. All right, Troy. Yes, I was thinking about adding on to the past students’ intros, somebody that just came in maybe one time, tried it, and then left.

[39:28] And so what are you going to try to do, Troy? Probably send them like a free month to try to get them in a free guarantee. I’m going to say one thing that I didn’t say that I may forget tomorrow to all of you. I’m not specializing in your field, but I’ve worked over the years with people in your field. In one school that we worked with in Australia increased their business something like nine fold, 900 percent. Just by testing a different, longer free trial offer instead of doing one lesson or one week, they did six. And they found that six out. I’m not saying you will because different situations will experience different results, but it’s worth testing one safe time. They found that the people that came for that were already more philosophically committed. They were more qualitative and they were able to close them and upgrade them really within two weeks.

But that was, you know, that seemingly crazy amount of free generosity produced monsters are greater results. Anybody else? Shunte? I do have two more. Okay, then we’re done. Joe Turner is next. Hi Bill. Is it Bill or Joe? Yeah. Joe Turner, how you doing? I’m good. I hope you’re enjoying it. Ken, yes. What’s your insight? Multiple suppliers. Just working concurrently and repetitively through really taking back your more strategic grasp on exactly each one and just lock in anymore that we can follow up on and analyze and VJ results from? That’s great. And you’re going to be very well for the effort investment. Every time I’ve ever seen anybody go from episodic, erratic, tactical, non-strategic to very strategic, integrated and sequential and having multiple, like having a power part on their business grew geometrically, compounded. And you’re going to be very excited. Don’t expect it to happen tomorrow morning.

a shot because you’re going to have to refine it. You have to test it. It’s just like the first day martial arts student probably wants to be a black belt but it looks pretty awkward trying to swing and kick and be a little nurturist and patient with yourself but it will occur. Thank you. One more Shunte. Our final one will come from Sandra Urban. Hi Sandra. Hi Jay. Hi Mr. Urban. I got a question for you about the introductory process running through a free introductory for an extended in the period like in your 502 incredible case studies, I found one of the guys in there was a martial arts school owner and he was using the one month free plus a free uniform. When I give you this answer, it’s gonna frustrate and then it’s gonna excite you. It’s Sander. Okay. Here’s the answer. Questions about different approaches, process, the experience, the outcome, give the lead generate, you should try one approach over another.

This, you should do a test weeks with a uniform and say, you know, I’m going to do it. There’s an approach that you can try, which is sort of interesting very successfully. There’s something called a marketing test. As part of a daring, bold marketing test, we are trying. We want to find out whether we invest in you for six weeks and you’re the right person and we can deliver. You’ll sustain. So we will, and it gives you a six-week program, including your uniform, your belt, all your Instructionals work even a pad for nothing more than one intangible Promise that you will two times a week for six weeks in a row at the end of the six week. It’s up to you It’s a continually mean that’s a pretty cool honest test it Yeah, but you got to try it against just a short-term one different people have different Experiences and you might even be able to do multiple ones to different industries in other words if I were going to an endorsed market That was very qualitative. I might be more inclined to go with a longer I’m going to be a longer freer deal because I knew the quality of people is going to be so much richer.

[44:33] But I don’t know. Don’t try to find the magic answer out of the marketplace. Don’t even worry about it. Just try stuff. You don’t have to be, you need never know the answer. You just have to be willing to ask. I hope we gave them enough content today. Tomorrow is going to be a fun day. I’m not going to tell you what it’s going to be, but it’s going to be even better. Rob, any concluding comments? I’ll let you hear Jay. Okay. I’ll talk to everyone tomorrow at the same time. See you. Thank you. for day three of the ultimate martial arts teleconference series with the legendary Jay Abraham. See you tomorrow guys. Bye bye.