5 Steps To Uncover 6-Figures' Found Money In Your Business

Hey everyone, welcome back to the Magnetic Marketing Podcast. In today's episode, Dan Kennedy's been talking about 5 steps to uncover 6 figures worth of found money in your business or any business with magnetic marketing this year alone. And inside this presentation, a whole bunch of really cool ideas I think anybody can implement to have more success. And I hope you guys enjoy this presentation from Dan Kennedy.

I don't think there's anybody that has had a bigger impact in the field of direct response than Dan Kennedy. The legend of Dan Kennedy should be ignored at your own peril. They're not They're not really lessons, they're kind of laws that you live by. Dan opened my eyes to what small business marketing looks like. Dan teaches strategic direct response that is timeless. His ripple effect touches people who don't even know his name.

The world as we know it was changed because Dan Kennedy became obsessed with marketing.

Welcome to the Magnetic Marketing Podcast with your host, Dan Kennedy. 5 steps using magnetic marketing to find some found money in your business. Step 1 is the most important. You want to go home and you want to identify target markets within your customer list, or for that matter, your prospect list. And there are so many of them that if you get really analytical about this you will find that your business multiplies in value from within. So here are some of them. One are absent and lost customers of a certain age. Now that may mean the first trigger point of loss when they should have been back to make a purchase. In the dry cleaning business, that's 6 weeks. In the hair cutting business, that's 2 weeks to 4 weeks. Every business has a trigger point. And if they haven't been back by that point, then you want to act on that as quickly as possible. Okay? So trigger points of loss are extremely important because they give you lists. They give you prospects. That customer who should have been back on the third Thursday of the month and isn't is a prospect. That's what he is. He has value. Most business owners don't treat him as that. Most business owners don't do anything with him at all. So every business has a trigger point. So if you're running a local diner and Grizzly Bob comes in every morning and has 3 chocolate donuts, a diet Dr Pepper, and a bowl of Wheaties, and Grizzly Bob isn't there this morning, what does that mean? He might have died. Yep, somebody over here said he died. He might have died, in which case you ought to go look. Pick up the phone and call old Grizzly Bob if you're running that diner, because if he didn't die, What it probably means is he met somebody for breakfast somewhere else, and the process of loss is underway. 'Cause that place he met his friend at, Hilda treated him better than your waitress did. She burnt the toast just the way his ex-wife did, and now he's going— so it's a trigger point for loss. Then there's, they've been gone for 3 months, they've been gone for 6 months, they've been gone for a year, yada yada. So one category is absent or lost customers of certain aging, meaning you talk to the one who should have been back the third Thursday of the month differently than you talk to one that hasn't been back in 2 months, and you talk to them differently than the ones who haven't been back in 6 months and so forth. There's customers who buy X but don't buy Y. Grizzly Bob comes in every day for breakfast, but he's never been there for lunch and he's never come in for dinner. Okay. Somebody comes in for dinner, never been in for breakfast. Somebody buys suits once a year, but never comes in and buys sportswear. Somebody comes in for their chiropractic adjustment regularly, but you know they're married, they got 3 kids, and they work in an office with a bunch of other people, and you've never got a family member or referral from them. So there's a category there. They buy X, they don't buy Y. Customers who buy only at certain times. Alright? So you only see them 3, 4 times a year. They're prospects the other times of the year, and odds are they're buying someplace else those other times of the year. Customers are just whores. I mean, you can't keep them from misbehaving no matter what you do. This will be instructive if you look that way instead of this way. This will be instructive. Be honest. There's no punishment. How many of you in the room within the past 6 months have spent at least $100 on somebody else's marketing stuff? Products, seminars, books, courses. It's more instructive if you look that way. Actually, if you look that way, see that side of the room. See, if we're gonna let some side of the room not hear, they're the ones, alright? Alright, now think about how much we're in your face. Daily. Daily. Hourly, he said. Hourly. I mean, we are— our greatest skill is being a giant pain in the ass, okay? We are there all the time. And you still snuck off. You still snuck off and bought something from somebody else. You should be ashamed of yourselves. Go home, return it immediately, go to the web store and buy something of ours. But seriously, if that— if we can't You— so they're buying from somebody, right? So there's all these lists: customers who made their first current page purchase but bought basic versus deluxe, customers who dropped out of continuity, customers with demographic lifestyle commonality that you haven't addressed, customers who have birthdays, anniversaries, some ethnic holiday, an anniversary of when they started doing business with you, customers' spouses and family members, the 5-house rule. Unconverted leads of different aging, unconverted leads by different source, unconverted leads who responded to X but never saw Y. If you generate a lot of unconverted leads, if you want a real advanced strategy, at some point you knock yourself off under a different brand, a different name, a different everything, and offer them the same thing you're selling with a different label on it with a new marketing sequence. And you will mine a lot of money out of your unconverted leads. So the first step is to go home and find all of the little businesses within your business that you are not addressing individually. Here's what will happen if your customer value now is And everybody in here knows what their first 90 days customer value is, what their per-year customer value is, what their lifetime customer value is. You all know those stats, right? Right? Right? Yeah. So whatever your customer value number is now that you know to be true, you can make it 5 to 10 times larger if you will take them apart in the way I've just described and lay magnetic marketing sequences on each part rather than one sequence on the whole. The parts are worth more than the whole. I have a client right now I'm working with in the skincare business. So they sell real expensive boxes of glop, which make you 20 years younger in 4 weeks or less while you sleep. There's an obvious age demographic to their business, right? However, do you think that long-time married women feel differently about this than do women who are recently married to their second or third husband. By the way, if you haven't seen her work, after you see Joan Rivers in a few minutes, you will be motivated to go see more Joan Rivers stuff. Somewhere find the old original classic first wife, second wife routine. It is truly classic. Do you think single women think differently about this than do married women? Do you think recently divorced women in their 50s think differently about their crow's feet and their wrinkles than the woman who has been married for 20 years? Oh yeah. You bet they do, at least for the next 6, 7, 8, 9 months. So if we talk to them differently, if we segment them and we talk to them differently, I've just described 5 customer groupings, not 1. And I promise you, the leads and the customers will be 5 times more valuable than they are now with one message laid on top of them. So step 2: develop a compelling marketing message precisely matched to the selected market. So you go home, you cut your lists up, you cut your customers up, you cut your business up into little ones. This one, this one, this one, this one, this one, this one, not one big one. And then you develop precisely matched marketing messages for each one of the little ones. Step 3: Do this with as many different subsets in your business as possible. See, again, what most people try and do is have as little complexity as they possibly can. So by the way, every client who comes to me, private client, who winds up spending a lot of money, here's how— here's what they come for. They come for a keyword, a better ad. We want a better ad. That's not what they get. 'Cause usually they like need 30 different ads for 30 different places for 30 different markets for 30 different set of prospects. They want a, a stick letter, which is to reduce refunds in direct marketing. They don't get that, 'cause they really need 8 for 8 different customers. So everybody— well, here's what they're all trying to do. Understand this is what your competition's trying to do. This is why you don't want to try and do this. They're trying to make their lives as simple as is humanly possible. One ad, one follow-up piece, one website, one sequence. That's what they're all trying to do. Do the opposite. Make as many as you can out of the assets you have, which are prospects and customers. Step 4 then: select the most appropriate media, which will always be multimedia, not just one media, because everybody and all your competitors are trying to do it with one media because they want the simplest approach to making money that they can possibly have. You know, I had a client for, for 9 years called U.S. Gold, and they were in a business called Gold by the Inch. And Gold by the Inch sold people a business opportunity, a way to make money, mostly on weekends. By taking, it was about this big, a thing about this big with like 10 different spools of gold chain on it, each a different pattern, gold-plated chain to be fair, and setting it up on a table wherever there was a bunch of people, swap meets, a big part of the business, and then people, you would make, the person would make the customer a chain, ankle chain, whatever, to the precise exact length. Pull it off the measure, pull it off the thing, snip it, put the snap on it, bingo, here's your piece of jewelry. So now that's a pretty simple business. And by the way, it works as I just described it. Person doesn't have to be any good. There just has to be a bunch of traffic. Set the thing there so people come up and say, "What's that?" And all the guy, all the person's got to be able to do is say, "Gold chain. You pick the one you like. We pull it off. We snip it and we give it to you." It's all takes. Then we added a sign because some people wouldn't come over and ask, "What is that?" unless you had a sign. The original sign said "Gold by the inch." We made a better sign. Two media. Two media. At the booth. "at the swap meet." Fine. Then, big TV videotape playing video of people clustering around, picking out their chain, close-up of person measuring, snipping chain, close-up of chain put here, close-up of chain put here, close-up of chain put here, right? Third media. The really smart ones added a fourth media, a good-looking, not too good-looking, but good-looking woman out wandering around in front of the thing, stopping people and inviting them to come over and take a look. Fourth media. You can't pick a simpler business to complicate. However, however, 4 media, 8 times sales. Now, 90% of the distributors wouldn't do that because it's too complicated. I gotta carry a TV, I gotta have a video player, I gotta find a babe, I gotta, yeah, the wind blows the sign over. Never forget there's a reason 95% of the people are broke. It ain't for lack of opportunity, okay? Not here. So, complicated, complicated, multimedia. Ready for this one? Investing as much as is humanly possible in your magnetic marketing approach to every one of these little subsets you've created. Not investing as little as possible. That's not the right game. Investing as much as possible. So adjusting your economics as best you can. You can, higher price, premium price, A/B offer, all the stuff you can do with price. We have a whole course on it, online course. If you don't know about it, you should take it. Okay? So that you can spend as much as possible. All right? Step 5, call. So if you now went home and you figured out 50 of these, some of them are going to prove more productive than others. Dump the ones that aren't profitable or aren't satisfactorily productive. Use the ones who are, and use them a lot. The next thing I want to tell you about this is the secret. Not that secret. This is actually something you do. I have friends associated— I shouldn't. It's not nice to make fun. If we could only deliver the secret of the universe in a 99-cent app, now we'd have something. So the secret to magnetic marketing is this, okay? If your response is unsatisfactory, your bait's insufficiently appealing. Look here, there's only 3 ways something can fail in marketing. It can fail based on the prospect itself, not that it's the fault of the prospect, It's the wrong prospect. So to be simplistic, no matter how great your marketing and how great your salespeople and how persistent you are and how wonderful your process is, you're gonna fail selling automated pool cleaning systems to people who don't have swimming pools. You'd be amazed, by the way, how many people in that business mail everybody in the neighborhood whether they have a swimming pool or not. So it could be the prospect. It could be the process. Not the case here. This process works. I started out telling you that at the very beginning. Alright? It's proven like gravity. So it ain't process in this case. The third place that marketing fails is with the proposition. So it's either the prospect, the process, or the proposition. So if you're not getting satisfactory results applying this process to appropriate prospects, it's because of your proposition. And that means the bait is insufficiently appealing. If they're not jumping in the boat at the rate they should be, it's the bait. Now, some people are less discriminate about the bait they require in order to act than others. Think Tiger Woods. But— okay, now a few of you, I know, are gonna have to think about that later. I get it. So some people are less discriminate than others. Kind of any bait will do, you know. But most people aren't that indiscriminate. Most people are kind of picky, actually. And so it's the beat, right? So it's either unexciting, it's not precisely targeted, it doesn't have enough immediate gratification, right? So we had a conversation yesterday at the lunch about the auto repair business, right, and a campaign to a particular kind of folk, people having birthdays, right demographic, right geography, and they're having birthdays, and the bait to them is a free or low-cost oil change. I said several things about this proposition. Number one, I'm not even a big fan of birthdays. I prefer to ignore mine, but if the choice is have a party and people blow horns at me and I have to blow out the candles and endure all the other agony, or go get an oil change, I'll take the cake, the candles, the big ugly fat person jumping out of it. You know, on your top 10 list of things you want to do to celebrate your birthday, it's probably not go get an oil change. Second problem, you might not need one, 'cause most people get the oil changed after the piece of duct tape falls off the red light that is telling them they need an oil change. My theory about oil changes, by the way, is it's a giant waste of time and money. Why change it? Just run it down to almost nothing and fill it up. You accomplish exactly the same thing. Seems silly to me to take it out and put a new one in when you could just use it up. You don't do that with gas. You don't go in and get the gas changed. You drive it to empty and you fill it up. I've never understood that, that whole program. But, but I, but, but I damn sure guarantee you I'm not going in and get it done on my birthday. I'm going in when the light is flashing and there's a knocking noise. Then I'm going All right? All right? If I do anything on my birthday and it needs an oil change, I'll trade it in. Okay? And generally speaking, it takes less time to go do that than it does to get the damn oil change. So the proposition's bad, right? It's not the process, it's not the prospect, it's the proposition. CPA sends me a thing for critique. He can't figure out why he isn't getting any response to his offer, which is a free report on How to pay less taxes. After I woke up, I answered his critique. I said, could you be any less exciting? The only thing you could do worse than that is how to pay the same amount of taxes you're paying now. That would be a little worse. But I mean, you know, this is not going to create a stampede. People. The one I wrote for them, in case you're interested, is How to Legally Murder the IRS: 7 Guaranteed Tax Saving Secrets Your CPA Is Too Dumb to Know or Scared to Tell You, But You Shouldn't Be Too Scared to Use. Okay, well, yeah, it's— look, it's better copy, of course, but probably the free report by itself really isn't even the answer. Okay, so better bait Spend more on the bait. Everybody's too cheap, but spend more on the bait. If you have properly selected prospects, you're using the right process on them, you're maximizing their value by doing all the stuff we just talked about, you can afford to spend more, which means you can make the bait better. Okay? So if you're not getting the response you want from this process or pretty much any other, Okay? It's probably your bait. I want to quickly show you one of the best irresistible offers of all time. Now this is an offer you have to buy, not a free-to-get response, but nonetheless. And it dates to 1988. I still haven't seen anything to match it. I've talked to you about it before, but you should actually study it. Because here's what you should know about free offers. Free anything bait in order to get people to respond. There's a false presumption that because it's free, we don't have to work very hard to sell it. People will want it because it's free. It is at least as difficult to sell free as it is paid, if not more, because there's natural skepticism about free. You're bringing somebody in who is gonna be of enormous value to you as a customer or client, with your bait. It's not supposed to be easy. If it was, 95% of the people in your business would be rich. They aren't. So free or, or fake free, which is what I'm gonna show you, doesn't make any difference. It needs to be irresistible. This one built an entire casino from scratch with no other capital than what it generated. So this is Bob Stupak's original offer for Vegas World. This ad ran everywhere from some sophisticated publications, but generally speaking, Parade Magazine, newspapers within driving distance usually of Las Vegas, but also blue-collar areas. Ran in the Cleveland Plain Dealer, the Akron Beacon Journal a lot. Ran in newspaper, freestanding newspaper inserts all across the country. Ran in Playboy magazine, ran in Hustler magazine, which are two entirely different demographics, although they obviously have one commonality. The— well, two commonalities. The number of people getting them is going down. Joan will be a lot better, I promise you. She does this for a living. So, the headline, as you can see, says, "Free Las Vegas Vacation." It is, of course, not free, okay, but the premise is spectacular, okay? The premise is you get, for $396, you get 2 nights, 3 days lodging, you get all the booze you can drink, whether you're playing or in the lounges. Alright, you don't pay for any booze. You get to see a show. For a long time, it was Burns and Allen. Do you guys remember these guys? The show was basically watching them wheel themselves out onto the stage. You get free gambling lessons, which you ought not take. You get one free dinner in the steakhouse. You get all your lunches. Did I mention you get all the booze you can drink? And you get $1,000 to gamble with. So you pay $396, you get your hotel room, pretty much you get all your food, you get all your booze, you get a show, and you get $1,000 to gamble with. Now the only little asterisk, and it is a small one, the $1,000 is mine. Match play money. So if you understand match play, that means you got a dollar blue chip that really isn't a dollar. It has no cash value. You play it as if it was a dollar. If you make an even money bet, then you get a dollar of real chip back, but they keep the dollar of match play money, okay? So if you want to think about it in this way, the $1,000 is really worth $500 if you could cash it in. Now, at Bob's place, by the way, a lot of brain-dead morons like a relative of mine the first time he went, thought it would be a really cool idea to take all 1,000 of it and immediately go to the roulette wheel and put half of it on red and half of it on black and turn it into $500 of real money. Bob's roulette wheels had 6 zeros and 6 double zeros, so that plan generally did not work out well for people. This offer built the Stratosphere one floor at a time with cash coming in prepaying for these packages. The ad is an absolute classic. You can find it. There's a book about Stupak. I forget the title, but if you Google Stupak or you go to Amazon and search under Stupak, I'm sure you can find it. You ought to read it. He's one of the all-time brilliant promoter-type marketers that ever came down the pike. How could you give away even $500 for $396? Simple. Customer value. Same game we all play. In his case, they're not only gonna lose the $500, they're gonna lose more. But they like this thing, so they'll buy another one, which there are 7 mechanisms to sell them another one before they get off the premises, so they will come back. Plus there's referral multiplication. I don't have time to talk about all that. They had a very sophisticated marketing system built around this irresistible offer. I showed it to somebody. Somebody about 8, 9 years ago bought a casino. A celebrity bought a casino. I won't name her. A celebrity bought a casino in Las Vegas knowing nothing, of course, about the business. She was able to buy the casino because it was off the Strip and broke, which not a good idea to buy such a thing unless you have like a workable plan. And so in very short order, she had managed to lose all the money she had earned in her entire life trying to make this casino work. She would have actually been better taking it all down to Stupaks and putting half of it on red and half of it on black and just being done with it, you know. But, um, so, uh, her son was a close friend of a client of mine, so, um, I, I, under duress, I attempted to give her some free advice. Uh, I say under duress because of all the mistakes that you can make in your entire life, the dispensing of free advice is like Number 1. Nothing will bring you more pain, frustration, and agony than dispensing free advice. The hierarchy of that, by the way, is free advice to for-profit people is bad, but free advice to nonprofit people is more painful, and free advice to family or friends is most painful, unless of course you have a family member who runs a nonprofit charity and you put them all together. So my free advice was, let's do the Stupak offer, okay? And it'll be even more believable because we've got a celebrity to hook to it. The conclusion was, we're not doing that offer, it's too good. Well, but understand, that's how everybody reacts. They react that way about their guarantees, they react that way about their initial bait to get somebody to come in the door, they react that way about everything. "Oh, I don't want to spend that much money. Can't we just give them, I mean, $400 for $396? That would seem like enough. How about $398.50? How about $200 so all they're paying for is the rooms?" This conversation took 4 hours. 10 minutes to make the bad decision to get into the conversation. If it's not working, it's not the process. It's either the prospect, which I've told you how to avoid that problem, or it's the proposition. Build, better, bait. Now, for a little fun, I'm gonna show you some marketing— some magnetic marketing sequences. I'm gonna show you the old granddad first, which I know you have all seen, but I'm gonna point things out to you that perhaps you have not observed in it, in addition to the fact that it is the Dunning model— first notice, second notice, third notice, final notice. These are the Giorgio letters, which I know you have all seen. Do not drive yourself crazy trying to read them. They're in the Magnetic Marketing System. They're in the Ultimate Sales Letter Book. They're not hard to find. Okay? But let me just point some things out to you. So this you will remember. There's 20 keys I'm gonna point out to you. So this is letter number 1. The headline is, "A confidential letter to the husband of the house from Giorgio, the romance director of Giorgio's Italian Grotto." I'll just read you the first 2 paragraphs to set it up, and then we'll go back and we'll look at all the keys. So, "Dear husband, women are different than we are. Your loving wife needs, wants, and deserves special attention, maybe more often than you think to give it to her. You are busy, preoccupied with work, aggravated with that dumb-dumb you have to deal with every day at the office, tired. Who has the time or the energy to even think about romance?" Parentheses: "Two-thirds of all marriages end in divorce, and the number 1 reason given by divorcing women," quote, "He just didn't pay enough attention to me." anymore, unquote. I wrote this while I was watching Oprah. So now let's do some quick analysis for you. So number 1 key is I have made the owner of the restaurant something other than the owner of a restaurant. I have made him a romance director. In doing so, key number 2, although in this case more tongue-in-cheek than reality, I have given him authority. So I've done 2 things with the romance director line. I've made him different than a restaurant owner, and I have given him authority. Number 3, of course, I have created a problem. And so I have created a problem for the recipient of this letter. Actually, in most cases I've created a problem for the recipient of the letter by having it handed to him by his spouse, but that's really neither here nor there. I have created a problem to solve. If you do not have a problem to solve, you will find it difficult to sell solutions. Well, now that sounds pretty elementary, doesn't it? What, you flew all the way here from Bulgaria to get that? You might want to give it a little more thought. You'd be amazed how many people are out there trying to sell solutions to which they have not created and established problems. Number 4: I have created guilt. Maybe more often than you think to give it to her. Your wife needs, wants, and deserves attention maybe more often than you think, to give it to her. This is instructive if you look in the right direction. Every man in the room who's married, raise your hand. Okay. Every man, keep your hand up if you feel you are giving your wife all the attention she needs, wants, and deserves. Has Charles Groden— now there's 3 liars I see them. As Charles Grodin famously said in the movie, to which the title I cannot remember, he invited his wife, and now I can't remember the actress, to explain to him everything that she thought a marriage should be about. 15 minutes later, he said, "You don't understand. I have a full-time job." So, Every guy gets it, and I have created guilt. He knows guilt is a very good motivator. It's how stuffed animals are sold at airport gift stores. Okay? That's the whole business. You understand that? Toys and stuffed animals at airport gift stores, that's a guilt business. That's all it is. There isn't a traveling businessperson in the world who goes in and buys one of those things with the only thought in their mind, "Oh, I love my son or daughter, and I am happy to be searching for and finding something to bring home to them that they will like." That is not the thought driving that purchase. Guilt's wonderful. Great way to sell stuff. So I've created guilt. Number 5, I have also said it's not your fault. You're busy. You're preoccupied. You're dealing with idiots at work. All right? Well, you don't want to make it anybody's fault, by the way. Real important copywriting point. Number 6, I have now emotionalized and agitated the problem. I have said it in a way that it has meaning. Number 7, I have induced fear. Two-thirds of all marriages, which is not true, it's only 55%, two-thirds of all marriages end in divorce, and the number one reason is he just didn't pay enough attention to her anymore. This immediately causes the reader of this letter to divide their assets by half. This is a math exercise. Everybody of a certain age either thinks of the Dick Van Dyke divorce movie, or they think of the one with Kathleen Turner and whoever where they kill each other at the end. Danny DeVito is the divorce attorney. If you're of a certain age, you think of the Dick Van Dyke one. So, we're up to 7. Number 8. There's a very powerful word at number 8. Actually a phrase. It's 3 words. It says, "You are entitled." Now I wrote this copy 20 years ago. But it's even better today. That line's even better today. Why? Because everybody's being told they're entitled to everything. They're being sold that every day. Well, yeah, I am entitled, damn it, right? Number 9, a solution. Well, George O'Hare's riding to the rescue. Number 10, there's 2 paragraphs right here that are all designed to eliminate negative thoughts that leap into the mind about what this evening is gonna be like. Alright? So what are those thoughts? So why wouldn't somebody— well, 'cause they think they're gonna get to the restaurant and they're gonna be put at a shitty table over by the kitchen. Yeah, there's a view of the water, but we ain't gonna see it. Alright? So I answer that. They think they're gonna have screaming kids stuck behind them. They're gonna spend all this money and they're gonna put up with screaming kids. Screaming kids all night, I address that. Okay? Number 11, vivid word pictures. Okay? Then, number 12, urgency. We can only accommodate 12. Okay? Now an actual deadline, by the way, would be better, but you can't have everything. Letter number 2. So that was letter number 1. Letter number 2 then arrives. Again, you've seen this, so I won't belabor the point. But letter number 2 arrives 10 days later. It has 3 pennies glued to the top. And it says, "Dear husband, as you can see, I've attached 3 shiny pennies to this letter." To the ghost of Halbert, for those who have a frame of reference. "As you can see, I've attached 3 shiny pennies to this letter. I've done this for 2 important reasons. First, to grab your attention. Second, to remind you of that wonderful romantic song, 'Three Coins in the Fountain.'" Fountain, key line, you see this as your second notice. Alright? So, number 13, I got a gimmick. I got 3 pennies glued to the letter. Wouldn't matter, you could pick any grabber you wanted to pick, any lumpy thing you wanted to pick, doesn't matter. I happened to use pennies. Alright? I like watching the little urchins glue the pennies to the letters. In order to get their gruel at the end of the day. Number 14. Oh, I'm sorry, that's Nike. I get them confused. Number 14. What, I'm out of line? Number 14. This is your second notice. My Dunning-Letter sequence. I'm acknowledging the fact "we wrote to you before, you haven't responded, here we are," right? 15 key point. Another great line: "Your romance wake-up call." Good line. Why? Because everybody needs to be woken up. That's why they have alarm clocks in romance calls. Number 16: "I made it personal." "You know, I am deeply disappointed that I didn't hear from you after my first letter and invitation." Nobody likes to disappoint anybody. Number 17, very important, goes back to the conversation we just had. I upped the ante of the offer. So my original offer was a prepackaged evening, dinner for two, rose in a vase when you get there, guaranteed table by the window, strolling violinist, all for one price. Okay? Now, I will give you everything I described before, the romantic dinner for two, listed again at the bottom of this letter, and I will even send a gleaming white stretched fully equipped limousine right to your door to pick you up. I upped the ante. I'm spending more money to get them for the first time. By the way, probably lose money on that first sale. Guess how much you'll lose trying to get new customers for an Italian restaurant with ordinary offers or no offers? A whole lot more. This accelerates and diminishes the loss, but it also accelerates the acquisition. Then we have letter number 3. So you didn't respond to the first 2. Letter number 3 arrives. It says, "Dear husband, this is Giorgio, too blue to cry, disappointed." Attached are copies of the two previous letters I recently sent you. That's every collection sequence I ever got. Ultimately, the last one has copies of the ones they sent you before, rubber stamp final notice all over the damn thing. Okay, we'll do that. All right, today you would mark them all up with copy doodles. Then we marked them all up by hand. But then And of course, final key— well, next to final key, 19— we have the final notice, which is a postcard. It looks like this, and it says, "Can this marriage be saved?" Now, there's a 20th key I'll get to in a second, but the question about all that is, do you have any doubt in your mind that anybody who is getting those 3 letters and that final notice postcard card in the space of roughly 20 days is not aware of it. It— they didn't notice it at all. No, everybody noticed it. If she got it, she showed it to the husband. If he got it, he got the message. People thought it was cool. They're taking it in and showing it to coworkers and neighbors. They're calling up and booking reservations and prepaying for them, just like Stupak's package, for a month from now, 2 months from now, 3 months from now. Maybe going negative on the offer, but you're getting free capital. The last key of the 20 embedded in the Giorgio sequence is I actually reinvented the entire business. Not in the restaurant business. We're in the romantic evening business. Which business do you think is less price sensitive? Which business is more interesting? Which business is sexier? The romantic evening business, not the restaurant business. Every business can be reinvented. Here's a magnetic marketing sequence, or actually a step in it, that demonstrates relatively elementary list segmentation. So this is a boot camp sequence to get people to come to boot camp for our member Rory Fatt, Restaurant Marketing Systems. So he markets B2B, by the way, business to business, not consumer. This won't work in business to business. Business to business to restaurant owners to get them to attend a conference. So I'm going to show you the first one. If you're familiar with the J. Squirrel letter, then all of this will look familiar. So this is, oops, hello, I am Viva. I clean the office at Restaurant Marketing and I'm in so much trouble they asked that I write to say I am sorry. I clean office on weekend making it all nice for them and I bumped fax machine with my mop handle. It fell on the floor. I put back on desk. The plug came out of the wall. I plugged it back in but it makes noises and lights flashing. I didn't know what to do. Then bigger problem is a paper stuck in the Machine. It wouldn't come out, so more faxes couldn't come. I called the ladies right away this morning. They are upset, but they fixed machine. (Smart ladies.) They tell me the deadline for the boot camp teleseminar special was on the weekend. They say that Rory gave so many big bonuses that many faxes would come on weekend if I had not bumped machine. If you send fax over the weekend, it will have not come. I try to make better, so I send this. Please call them to come for boot camp. I am so sorry for fax trouble. Please call the ladies or use the form "Bye-bye from Viva." And you probably can't see it real clear, but there's a picture of Viva there with the mop bucket and, you know. Now, well, yeah, it deserves applause, but, but, but, but, but wait. That's generic Viva. This is Viva Zoom Zoom. This is same letter, but only sent to people within driving distance of the boot camp, because they got a different offer. The thing they got in front of this talked to them differently. It talked to them about being in driving distance of the boot camp. This is, "Viva, I'm a Canadian. You get to pay Canadian at par." This is not such a good deal today, I don't think, but it was then. So the Canadians had got a different offer equating U.S. and Canadian currency as one. Which by the way, the Canadians used to love that. Fall for that every time. Are there Canadians here? Oh. So in total, there's 8 different VIVO letters, because there was 8 different first step, 8 different third step, 8 different fourth step, 8 different fifth step. Better. Okay? This, I'll show you another one real quick. This is Letter number 2 or 3, I forget which, in a sequence to dentists some moons ago for a client of mine, Linda Miles. And what I want to show you that's most useful about it— so the headline says, "Linda's Worried About You," making it personal. Okay? Now, from here on down, is the same sales letter that was sent to them before. The only thing that changed is that top part. I didn't like stay up all night. So the regular sales letter starts with, "Turn on the TV in the privacy of your home or office or at your next staff meeting and look who's there." It's the same. The only thing that's changed is the top. The top is, "Linda's worried about you," making it personal. "About 2 weeks ago I wrote to you." acknowledging that it is a step in a sequence, no secret, okay? And then, "We haven't heard from you and we can only think of 3 reasons why." And then it enumerates the 3 reasons why they might not have bought. It makes the reasons go away and then it goes right back into the same pitch. Not rocket science. Anybody can do this. If you've got the first one, You can make the second one. You don't have to be as creative as Viva. I wasn't. This particular campaign sold 230, 236, 237, I can't read my writing, $236,000 or $237,000 worth of videos to dentist offices with a 3-step mailing plus a final notice postcard. B2B, so you're sure it can be B2B. This is old. This built his business. This is right out of the magnetic marketing kit. I didn't do this. He did it. This is a company that makes pins and caps and stuff for fraternals. Lions, VFW, those guys. So this is, "Should I send out the search party, harness up the dogs, call the missing persons?" I haven't heard from you yet. But as you'll see, your stalling has paid off. There's an up-the-ante offer. Previously, at your request, we sent you all this stuff. That's a guilt line. You asked for this stuff, we sent it to you, like you asked for it, you schmuck, and now you haven't had the courtesy to even respond to us, you schmuck. It's a guilt line. This is going to the directors of fraternities like the Elks, the VFWs, the— What do they all have in common? They're old. Means they have honor. They will respond to this. You don't want to be sending this to, you know, like 22-year-olds. But it is right out of the magnetic marketing kit. That's all he did. Took it right out of the kit. Same kit you either own or can own. By the way, it's probably here and it's probably at 30% off. 'Cause I think you guys have that opportunity as a super conference. I'm not passing out forms or nothing. Just relax. Say, look, I stopped caring. So here's a follow-up piece. This is very current, okay? So this is a follow-up step in a sequence for a seminar Tied to Valentine's Day. So there's a seasonal theme provided to us, but key line: Candidly, the reason you are receiving this Valentine's letter is you've not yet registered for. We're acknowledging the fact they haven't responded. A lot of people are afraid of that. It's actually absolutely the same structure and almost the same language as in the Giorgio letter. Final notice language, okay? Right there. This is my last letter about this subject, okay? And it goes on to tell them they're not gonna get another chance. If you take that process and you apply it to the proper prospects with a great and irresistible proposition, You win every time. So where's all the money when you go home? All the money is in finding more appropriate prospects to apply the process and a great proposition to. The first place to look for more appropriate prospects is cutting up your customers and the prospects you have or generate now into smaller and smaller and smaller subsections. Last thing to cover. The mystery of the ages, the question about magnetic marketing and the argument against magnetic marketing is this: if I've targeted the right prospects and I'd offered up the right bait and I've done it with a brilliant marketing piece, regardless of the media used, and they don't respond, why the devil should I keep sending them yet another and another and another pitch? So number one thing I hear, by the way, usually comes with critique requests from people who have got a magnetic marketing kit. They saw me speak, got a magnetic marketing kit. They bought it from us in the catalog or online. They bought it from Nightingale-Conant, the 3 times Nightingale-Conant sold it. They got it here, whatever, and they have a partner. God save them. And they go home and they explain to the partner that we are now not going to send out one crappy brochure, we are actually going to send the crappy brochure 4 times in a row, and we're going to add a letter to it, and we're going to send email in between, and we're going to send them an audio CD, and we're going to— and the partner says, if they don't respond the first time, why on earth would we keep sending them more stuff? All right? Here are the answers. If you don't need them, maybe your partner will. Number 1: Here's how people don't get mail. Harvey's getting ready to go to work in the morning. Bertha's a stay-at-home mom. Harvey calls Bertha into the foyer, and Harvey says, "Bertha, I want you to stay right here in the foyer with your nose pressed against the glass looking out at the street." You can wiggle your butt if you want, but otherwise do not move. Do not go back into the kitchen. Don't get a cup of coffee. Don't answer the phone. Don't do anything. Stay here and look for the mailman. Because today might be the day. I see you. Today might be the day. The mailman brings us a flyer from a furniture store. No, wait. Today might be even better. Today might be the day we get a letter from a life insurance guy who's offering us a free road atlas if we'll let him come over and beat the living crap out of us for 3 hours after dinner. I want that letter! I don't want— a bird might get it when the mailman— the neighbor kid might steal it. As soon as you see it, you run out there and you get it, you bring it back inside, and you guard it until I get home. We'll open it together. It'll be a marital activity. You're always wanting to do stuff together. This is it. This is not how people get mail. It's not how they respond to mail. It's not how they respond to email, right? They not waiting for your message. So that's number one. Gotta come again and again and again and again and again and again because secondly, there's a thing called the moving parade of interest. David Ogilvy talked about it. Not interested today, may be interested tomorrow, right? Many moons ago in my first marriage, I left on a trip. The day I left on a trip, I had no interest in furniture. You could have delivered the best offer in the world to me about furniture. I got a house full of furniture when I came home from the trip. You could have delivered kind of a crappy offer about furniture and you would have had my attention. No furniture. It's amazing how your life can change in the space of 3 days. I went from coming home after every trip and bumping into furniture, because wife number 1 had a nasty habit of rearranging the furniture on a regular and frequent basis, to not having any furniture to bump into at all. Changes your response to the marketing. Moving parade, of interest. That's number 2. Number 3: now people want, but they don't want to spend, so they are a little more restrained. So we have to show up more times. That's why this process is so important. We have to earn their attention, not presume We are entitled to it just because we contacted them once. I have one quick thing to say before I thank you for your attention. In a minute, somebody real special is coming up, and I'm just gonna say hi, and Bill's gonna introduce, but if you watched The Celebrity Apprentice, you saw you saw a very determined entrepreneurial side of Joan Rivers. She and the poker player, sort of like two gunfighters on Deadwood. And that's the side most people know. I had an opportunity to do a project for Joan some years ago, worked with her. And afterwards she was very generous to me for no Personal gain. Joan has a charity, the name escapes me. I'm sure she'll tell you about it. If you saw Celebrity Apprentice, you were introduced to the charity. It's who she was playing for. I neglected to do anything during Celebrity Apprentice, so sometime today, any time today, silent auction for you folks. You can have a day of consulting, high bidder. Just silent auction. Back at the product table, turn in a note. The fee, as you know, I think, is $1,888. So that's what you would normally pay. So you can have a day of private consulting. High bidder gets it. Turn in your silent auction. The money all goes to Joan's charity, and I'll match it. So whatever you spend, I'll write a check for the same. All right? I appreciate your attention. This morning. I urge you to use the process we talked about to go earn the attention of your prospects. And with that, thank you very much. And Bill, it's yours.

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