How To Get Repeatable Income in Any Business (Beyond Continuity)

Jay Abraham once said that there are 3 ways to be able to grow your business. Number 1, increase the number of customers. Number 2, increase the average transaction size. And number 3, increase the frequency of purchase. In this episode, we're gonna be talking about number 3. Welcome to the Magnetic Marketing Podcast. Today we're gonna be talking about how to get repeatable income in any business, and this is beyond the idea of just continuity, of just creating a subscription product. These are ideas that range from the obvious the not so obvious to the truly unusual. Now, as always, we always listen to all these episodes with an open mind. If you're a digital business, if you're a physical business, or if you're something in between, this episode is for you. And today we're going to be jumping in with the one and only Bill Glazer.

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.

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They're kind of laws that you live by. Dan opened He opened my eyes to what small business marketing looks like.

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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. We're going to talk about how to get repeatable income in any business. One of the things, one of Dan Kennedy's sayings, which is a really, really, really valuable saying, is that most people think of the purpose of a customer is to get a sale. Most people think the purpose of a customer is to get a sale, whereas at Glaser Kennedy, we think that the purpose of a sale is to get a customer. And that's a perfect segue into what this talk is all about. This talk is really all about putting in repeatable income into your business because once you get the customer, you want to automatically plug in the customer so you don't have to go back and make the sale again and again and again and again and again. So this is about, you know, once you get that customer, you get a sale. And obviously one of the most obvious places that you see this is you know, in continuity income. But there's lots of other ways to do this. And really, we haven't yet figured out any business, when we put our mind to it, that we can't plug it into every business. So this is how to put repeatable revenue, i.e., continuity, auto charge, anything, in just about any business. And I'm going to show you— I'm going to— I divided— when I put this together, I divided into 3 different categories: the obvious, the not so obvious, and the unusual. And the unusual is the one that, you know, when you see some of these unusual ones, I'm expecting at that time you will turn around and you will say to yourself, "Gee, if those guys can do it, I can do it too." And this will, I will tell you, this will change your business model around dramatically. I had, I'll never forget, I was meeting with a client, this was 4 years ago, And we're sitting there in the very first meeting, and I gave him one idea to put this repeatable revenue into his business. And the very first year, that put $1.4 million more into his bank account with just doing— adding one little piece to this in his business, which really pissed me off because I got paid by the hour and he got $1.4 million. But I have since tried to fix that strategy. So Webster's Dictionary's definition of continuity is the state of being continuous, continuing without interruption. Roget's— how do you say that? Roget's? Roget's? Is that it? Roget's II, the new thesaurus, one of my favorite things I keep by my desk as a writer. Continuity is uninterrupted existence or succession. So that's what we're talking about, is to keep things uninterrupted. So let's talk about the advantages of adding repeatable revenue to your business, because once you see the advantages, you're gonna get to why you need to do this. First of all, it reduces selling activities. See, if you sell somebody, all you have to do is sell them one time and you don't have to sell them again because it just continues in their business. And it really, really makes the whole process of selling much, much easier, as opposed to constantly going back and reselling again. You know, I mentioned— I think I mentioned last night in the IBA Q&A session that one of the things that I just don't understand are charities, because charities that I'm passionate about giving to, I'm passionate about giving to every year. So if you got me to give you this year, just plug me in and every year just charge my credit card or send me a bill. You know, why you gotta call me up and ask me to give again? I mean, I didn't all of a sudden think you were doing lousy stuff before. So just do it automatically, so it just reduces selling activities. It reduces advertising spend, so you don't have to spend as much money on advertising anymore because you just— once you plug them in, it's just done and you don't have to spend money on advertising. Increases customer loyalty, and this is really a big one, is that because you stay connected to the customer, the customer automatically is more loyal to you. Which gives you a couple other great things. Increases customer value. So for example, you know, if all of a sudden once a month, once a year, once every 6 months— we actually have a former Platinum member that was charging continuity once a week. But when you multiply that out automatically, it increases the value of that customer dramatically. Increases referrals, which loops back to increases customer loyalty. When people are more loyal, they tend to refer more. So you get more loyal— more referrals from these people that you put into continuity. It benefits the customer. Now, this is something that is really important that I want to spend a moment on, is that it actually benefits the customer for continuation of uninterrupted services. So think about a couple things that you are really happy about that you're on continuity for. Other than Glazer Kennedy, a couple things you're really happy about is your, is your electric bill. Aren't you happy that you don't have to every month go to electric company and say to them, hey, I want you to charge me again? Think about your internet connection. Aren't you glad that whoever you subscribe to, you don't have to go back to every month and say, hey, I want you to Keep on giving me connection. Think about your cable at home, your TV cable. You don't want to— every month you don't want somebody calling you up and say, do you want to continue to see HBO? You're just happy. It really is a continuation of uninterrupted service. And frankly, at Glaser Kennedy, it applies to us as well, is you don't have to worry about every month getting an OBS marking letter. It just continues to keep you plugged in. And in all of your business and the businesses that you're about to see, including the unusual, it's actually a benefit to the customer that you're actually continuing to give them the services that you have. The other thing is, which is a real biggie, is that in my InfoMastermind group, actually more so last year than this year, but it will turn around— I mean, it will come around again this year— is A lot of— more and more, when you look at building value for your business, how do I build value for my business so that one day that when you exit your business, how do I maximize the value? Now let me also tell you something about that. Every one of you in this room will eventually exit your businesses. Some of you might be carried out in a stretcher, but you will eventually exit your business. When you have a repeatable income in your business, that increases the value of that business. So if somebody, a prospective buyer, is looking to buy your business and you have 1,000 people that you are automatically charging on a yearly basis $200 a year, that is a huge asset to your business. That makes the value of that business significantly higher. And the other advantage is the money. Do you notice how I really went way out and used a different color there? Green. So the money. So the other advantage is it increases money that's coming into your business. So those are all a bunch of benefits of adding repeatable revenue to your business. Now again, I'm using the words very carefully and deliberately, repeatable revenue. I'm not using the word continuity, although continuity is a form of repeatable revenue. But don't get your head locked into this has to be continuity. This is really repeatable revenue. So some of the obvious places that these appear at: the Book of the Month Club, the CD of the Month Club like Columbia Records, coffee. There's lots of sites. There was one that I went online Givelta Cafe. This is a continuity business for coffee, wine, cigars. We had Bill Rancic speak at our Super Conference 5 years ago. He was one of the founders of a company that automatically sent cigars to people every month. Anybody here get cigars delivered to you every month? Just out of curiosity. This one? You? There you go. Almost? Like you get like a half a cigar? I mean, you get— so, so cigar. How many— who here gets coffee delivered to you every month? Anybody? A bunch of you, right? Coffee every month. See, it's just automatic, and you do it because of the convenience of it. Milk delivery. As a matter of fact, I'm going to show you a case study from one of our members here that gets— still gets milk delivered— that has a milk delivery, um, every month. Prepaid legal. Insurance. Almost any type of insurance is on a repeatable income. I mean, insurance brokers, you know, because if you— I mean, there's probably a bunch of short— I mean, who's here as an insurance broker? See, obviously, I mean, those guys are just lazy, you know. They just sell one time and they don't have to sell it again, you know. It's just easy for me to look at those guys. They gotta be lazy. So insurance— see, that's the last time you guys ever raise your hands. Health clubs. I mean, health clubs is a great example. Of repeatable income is every month they just charge your credit card over and over and over again. Internet provider, I mentioned that before. Gas and electric company, I mentioned that before. Almost any type of information marketing business, and I'm going to show you one from one of our InfoMastermind members, Bill Gough, of how he has that plugged in. But just about every information marketer that I work with is in the repeatable income business. And certainly membership business, which is Glazer Kennedy. I'll show you an example of that as well. So I'm going to show you 3 of the case studies that are here because I'm going to really spend more time on the case studies on the not so obvious ones. But the first one, the case study of the obvious, and you know, unfortunately many of you don't remember this. I unfortunately do. How many of you here grew up where you got milk delivered to your home, right? Okay, so there's a member of ours, he's a Diamond member, Alan Reed, Reed's Dairy. Those of you that were on the Diamond call last December know him as he was the gentleman who won the Diamond contest of the year and attended the winner's weekend with Dan and I in January. I don't know if you're still in the room or not, anywhere around here. But he, you know, he's still, he has cows. It's very helpful to have cows when you deliver milk, by the way. He has lots of cows, okay, and he still delivers milk to people's homes. So he sent to us, I don't know if you can see it down there on the upper, that's our front door at Glaser Kennedy. And all the way to the right, he sent us one of those milk containers So they drop off milk containers and then you decide how often and how much milk that you want to bring, send to your, have come to your home. So that was, we did a really, we spent a lot of money on creating that picture. And we actually, I don't know how they did it, but that's not real milk in there. They sent us a clear container and somehow we got white substance in there. I'm not sure what that But anyway, so that's what it looks like, and he continues to deliver milk. And he, you know, he sends out a newsletter every month which he talks about, because he's a good, great, great Glazer Kennedy marketer, you know, know where your food comes from. So he talks about why his milk is better than other people's milk, because his milk is probably at least 50% more expensive than anybody else's milk, because it's got to be in order to accommodate the delivery of the milk to somebody's home. So he talks about why his milk is special. He also— so he has all this great content in his newsletter, and he also sends out— good marketer he is— he sends out a certificate where you can buy more stuff. So it's hard to see, but on the whole left-hand side there is all the other stuff that he also provides to his customers in order to— they can also buy. And one of the things that he really does a great job at is he also creates ice cream. So a lot of times they will upgrade and buy ice cream. And here's some stats. He signs up new customers to a standard weekly order and obtains their credit information. He runs their credit card weekly after each delivery. He upsells other items by email and also the, the direct mail piece. And the average life of the customer is 5.3 years. So the customer stays with them on an average of 5.3 years. Now just think about that for a second. If you were selling milk, I mean, when you think about the milk that you go buy now, you probably go to the convenience store. Do you go to that same convenience store for 5.3 years? Probably not. He's got that customer, he's got an iron cage around that customer for 5.3 years. That, how that, that changes dramatically the economics of that whole business there. Bill Gough. I can show you anybody's in my InfoMasterminds business. I just picked Bill because he sent it to me. So he charges— this is the, this is the information marketing business, and he, he, he has a complete marketing system that he provides to all state insurance agents, and he charges $297 a month. He currently has 72 members in his membership that's generating $21,000 $384 a month, and he delivers to them all the things that you see that he's delivering to them. And he uses— he sells it by using webinars, affiliate relationships, and live events. And although this is not an information marketing summit, I will give you— I will reveal to you one little thing of secret sauce, because when you— in order to keep people in continuity that are happy with you, you always need sort of secret sauce. And his secret sauce is he has an auto-email campaign that he actually does for other folks, and that's sort of his secret sauce. So this is just a case study. So here's a guy, 72 members, generating 21,384 people. Not a huge amount of members, 72. I don't know if it's probably more now. You're probably still growing. This was old data, and, and he hasn't been doing this that long. And look, it's just generating 21,384 $1,000 a month, which is a nice little business that's tacked on to his existing business where he makes his big, big money at as his Allstate insurance agent. And as an Allstate insurance agent, he's in the repeatable income business because every month— every year, I guess— they automatically will get them to buy their insurance once again. And the one more case study before we start moving to the unusual is just Glazer Kennedy. So this is a membership business, and one of the things which we teach a lot is an ascension program in membership. So at Glazer Kennedy, as you can see here, you know, we have gold— we actually have silver still. There's a couple remaining silver members. We have gold, we have local chapters, then we have peak performers, and then we have international private coaching groups, which is InfoMastermind, and it's an ascension model. But every one of those pieces has repeatable income in them, and as you go up, the services increase and the fee increases. So again, it's a repeatable income business. No need to go and resell it every month, every week, every year, any of that stuff. It's automatic. The sale only has to be made one time. Okay, so let's talk about the not so obvious. I'm going to show you tanning salons. Skin care, vitamins, website developers, and done-for-you services. So this is the not so obvious. So the very first one is Sun Your Buns, and you'll be hearing more from Grant tomorrow, but I'll just tell you a little bit about Sun Your Buns because Grant actually is getting a special award from me for, for something that I really like that he does. But for those— and by the way, Grant had to go through 613 models before he found this one, and he personally interviewed every one of them because he wanted to make sure his ad was right. Okay, so there is, you know, he— this is some of his marketing, okay, that he does. And in this, what he does is he has multiple levels of continuity, repeatable income, ranging from anywhere from a low of $5 a month all the way up to $25 a month. And as you can see there, which is the, which is the strategy that I'm teaching you, is that as you increase in monthly fees, you increase in services. So at the $25 a month, you know, they get 40% off the everyday lotions And they get free lotion for joining, a $75 value, and they get their first lotion purchase upon joining at 55% off, and they get a free upgrade upon joining. I don't know what that's for. And then they get a free vacation or something like that, a free cruise. And at $5 a month, they don't get nearly as much, okay? So the strategy with this is if you're going to have different levels, the same way at Glazer Kennedy, Higher you go up, the more you get. The same thing here. The higher you go up, you got to figure out how do you deliver more in order to incentivize people to actually get more, to go up to the higher levels. Now, the reason why he got this special, this special award, and I love this, this— there's a special award because we had people submit. He's going to get this award. It goes to Peak Performer member Grant Miller for Repete Miller, without delivering anything. This is the part I like the best. He doesn't deliver anything. He's got people, when they want to leave, he offers them a $4.95 per month membership to just freeze their membership. Delivers nothing to them. So multiply $4.95 times 800. He's getting that every month for delivering nothing, okay? He deserves an award for that, okay? Grant is coming next year to our super conference on us. That's what he's getting. He's getting to come to our super conference for free next year because, listen, I'm very envious of this. I've got to deliver great content every month. He delivers nothing. As a matter of fact, he's actually trying to figure out how to close all the tanning things to— whoops, oh my God. To just continue to deliver nothing, you know? So just perfect, perfect, perfect. I am very jealous. I am immensely jealous. Okay, I spoke to the national sales manager. Proactiv is a client of Dan Kennedy. I spoke to the national sales manager of Proactiv because many of you have seen the Proactiv commercials when they That's the acne cream that they have. Huge business. And they use all kinds of media to sell it. They use infomercials, they have airport kiosks, they have— and you can actually go in the airport and walk up and give them money and get your Glunk. They have mall kiosks, websites, home shopping, magazines, newspaper radio. They use every kind of media they possibly can to sell this stuff. And the initial order, they sell an initial order for 30 to 90 days supply, and If you don't want to be in the continuity, you pay a higher price. So you have— this is optional continuity, but you pay a much higher price to be in the continuity— not in the continuity. So they give you a big incentive to get you into the continuity. So you can see here, this is their new product, which I guess the only thing new about it is probably the packaging, but the new product that they give you And you order this, and then you just, as you go through this process, which this initial order is $29.95, it immediately tells you that you will be taken to this page where it's explained to you that they will continue to send this to you until you say stop. Now, once again, I don't look at this as being disreputable because somebody who needs this doesn't want it to stop, but if once they realize they no longer need it, they just say stop. But if they need it, they want to continue to get it because if not, they obviously, they want to cure their acne. So this, once again, this is their business and this is a huge business. I mean, it's huge business. They did, on all their stuff combined last year, they did over $2 billion in sales. In all their products that they actually sell. Another case study, CJ Bronstrup, who's actually— CJ, you around here? Where are you? There you are. Stand up, CJ. You're into the whole doctor thing, okay? So he's into the spirit of stuff. So CJ sent this in. CJ actually does hosting for folks, so he creates websites for them. This was one of the websites that he sent us. And he creates websites for people. So he actually hosts the site for them, which he was kind enough to point out to me is a pain to disconnect, so they can't leave because if they leave, they're going to lose their hosting. He also creates an account with, with his own shopping cart for them, so he has them tied in. And right now he's got 36 clients with repeatable monthly income of $1,941 with 36 people. Every month this thing just automatically charges them $1,941.48 and doesn't have to do anything else. Okay, almost as good as Grant Miller, almost, because he doesn't, you know, because he doesn't have to do anything else. Grant Miller still gets the prize because Grant Miller gets money for not doing anything. Okay, but at the same time, so one of the ways to actually be in the repeatable income is to do services for other people and then plug them into you. Here's another case study. Now, this is Royalty Rewards, and Royalty Rewards, I actually have a little bit of involvement with this company. It's owned by Roy Fatt. And I'm a consulting advisor to this company and a minor stockholder. And Royalty Rewards probably has the best loyalty program that I've ever seen. And so it's a done-for-you loyalty program and a new customer acquisition program that predominantly is used in the following niches: in retail, restaurants, chiropractic, and auto repair. Those are the 4 biggest niches that Royalty Rewards is used in right now, although it's in lots and lots and lots of other niches, but those are the 4 biggest niches. There's nearly 1,000 merchants enrolled on the program, and as I said here, there's the 4 categories that's involved in. The 1,000 merchants represent over 1 million users of Royalty Rewards. So there's over 1 million people that are going around with Royalty Rewards cards. Cards, and the services that are provided are postcards to existing customers, newsletters, websites, customer surveys, emails, iPhone applications, new mover mailings, birthday mailings, and also social media. So you can see this is a— this is all provided to their users, to their merchants, which is approximately 1,000, and it's a total done-for-you program that we tell everybody that it's a one-thing business. It's all they have to do is they have to sign up their customer. So when a customer comes into the restaurant, just get them to fill out the form. Customer comes in our repair shop, just get them to fill out the form. After that, Royalty Rewards takes over and does everything. The merchant doesn't have to do anything else, and which is a very— it's of everything that I've ever been involved with, this is the easiest thing to sell. The average merchant is paying $500 per month So this thing right now is generating a half a million— on average, a half a million dollars a month. That's just doing business for other folks. And as I said, it's a one-thing business, and all the merchant has to do is one thing. So the big lesson for you that are people out there that are wanting to put people into done-for-you services is that make it as easy as possible. So I just gave you two lessons. Lesson number 1 is make it easy as possible for people to do things. And the other lesson I gave you before, which is the Bill Goff lesson, is you need a secret sauce. You need something that really people really, really want. And in Bill's case, he has his email campaign that's involved in it. Okay, so now we're going to get to the more fun stuff, the unusual. This is 7 case studies. Restaurants, online shoe store, menswear, auto repair, barber shop, motorcycle shop, and a funeral parlor. So look at this list, okay? Look at the list. When's the last time you went into any of these stores, these types of businesses, and you were put into a repeatable income stream? That you as a customer went into a restaurant and they start billing you every month an online shoe store, a menswear store, auto repair shop, barber shop, motorcycle shop, or funeral parlor. Especially a funeral parlor. So when's the last time that you just continued to get billed over and over and over again? So let's look at them. Very first case study is Diana's Rewards Program and Gourmet Pizza of the Month. So this is modeled— this actually, she got this one at Gage Menswear. This is our old 340 Free Club, which I later on changed it to the Royalty Rewards. But she modeled this after my original loyalty program that I had at Gage Menswear. She charges their credit cards monthly, then she sends out gift certificates and member bonuses to her customers. Some— this was really kind of cool— some members are also secret shoppers and receive extra gift certificates to fill out an online survey to keep tabs on the quality experience. When I spoke to Diane, I thought this was very cool, so I wanted to share it with you. So she takes some of her members that are signed up in this program, and she actually has them being secret shoppers to come in and get the pizza so that they can report back to her how they're being treated, because she's very, very important about quality control. She offers it every month in their newsletter, And she has specific campaigns to target the top 5%, 10% customers not already on the program. So she's doing list segmentation for the program. So you can see what she has here is— this is the deal— is that you actually— she'll charge you $30. The silver membership is $30 every month, and with that you get $30 worth of pizza certificates mailed to you. Now, whether you come in and get the pizza or not, these pizza certificates are mailed to you every month, and you also get another certificate for a free lunch worth $5.50. Gold membership, $50 a month, you get $50 worth of pizza certificates mailed to you plus 2 free lunches. Then you get platinum membership, $100 a month, automatically charging on your credit card. For pizza, and you get 2— and then you go with that, you get 4 free lunches. And then yearly— oh, so those are the 3 levels. And then yearly you also get additional benefits for staying in for all 12 months. Now, when is the last time you guys went and bought pizza and you were enrolled in a loyalty program? Ever? Never. Do you know how this can change the economics of a pizza business? Because what it really does is it puts an iron cage around the customer. Think about it. So now you're sitting home, and you're getting ready to watch whatever— Criminal Minds, my favorite show. Getting ready to watch Criminal Minds. And you say to your— I say to Karen, "Karen, let's get some pizza." And but we're not going to go to any pizza place because we already got certificates for Diana's Gourmet Pizza, and I got to use my certificates. So it's taken me totally out of the Domino's and all those other places. I'm not even thinking about that anymore. I'm only thinking about I got to use my Diana's Rewards gourmet pizza. So it's taken me out of the market, and I'm buying all my pizza from there. And it's automatic every month, whatever level I join, I just come, it keeps coming, it just keeps on coming. Probably at some time some of these customers probably have $60,000, $70,000 worth of pizza certificates just laying around the house. So, but again, brilliant, brilliant marketing used on the local level, and it can be done. If it can be done in pizza, it can be done in your business as well. Another case study, ShoeDazzle. Found these people online. This is online. This is buying shoes online. So what happens here? You go to this website. Uh, so it's bought online. It's $39.95 a month. The membership includes 1 pair of shoes per month, and it begins after you select the first pair of shoes, and you get free shipping. That's their deal, okay? So now you go to their website, and they walk you through— this is their website, okay? And then you walk you through, you start picking out preferences. So you start picking out things, you go like a survey. You pick out which one of the ones at the top you like the best, which ones are the next one you like the best. Then you keep going down this survey, you keep picking things out. Then you pick out the kind of styles of shoes you like the best. And you keep going down, you keep picking them out. And finally, you go and buy your first pair of shoes. Which is $39.95. Then based on the results of the survey, they know what kind of stuff you like. Every month you get a pair of shoes show up at your door. Just shows up, $39.95 a month. If you're not happy with it, you can send it back, but they report to me that they actually get very, very little actual people that send stuff back. But here you go through a survey, show them the kind of preference you like, and every month you get a pair of shoes for $39.95. Boom, it's over. Every month, thousands of people are getting shoes delivered to their door every month times $39.95. Now if they can sell those damn shoes online by having you fill out a survey, you can figure out how to do this in your business. My menswear store, I only have one regret about this, which is I didn't figure it out earlier. So the last year that I was in business, I actually, the first 7 months, the 7 months of that year, I enrolled my membership site. I signed up 637, I believe, people into my Insiders Club. The individual could buy it for $247 a year and a family could get it for $297. Now they were paying me money for the right to buy menswear. So I don't know when all the men in the room, and ladies by the way, I don't know when the last time you were paying people money when you walked into a retail store for the right to shop there. But we figured this thing out and I just wish I would have figured it out much sooner before I got out of the thing. So they got special benefits. They got special member pricing, free delivery, free home or office shopping. Where our sales associates would go to them, shopping on members-only website, personal fashion concierge, no additional charge for alteration or for rush work alteration, members-only events, listing in the member directly with special offering to other members. That is big. That is real big, because one of the things they really liked was that a lot of them were business owners and they liked the fact that they could get their business exposed to the rest of our members. So that was a really big incentive for people. Special members-only discounts around town. So we actually not only offered special discounts at our store, but we had restaurants, we had dry cleaners, we had shoe repair people that they could also take the cards to and get special discounts at other places. And they would also get a members-only monthly newsletter, which really became the secret sauce of that business, the newsletter. So the sales process was that during the first sale, usually the savings that they got because of the special member pricing was greater than the membership. So they thought they were getting over on us, but it didn't really matter because here's what happened is when we started tracking it, the members returned 2.5 times as often as non-members, and the members spent 3.9 times as much as non-members. So what happened was, although they thought they were getting over on us because they were getting better pricing, what happened was they were coming back so much more often, they were buying almost 4 times as much per year as the non-members were. And that was in the first 7 months that we actually had this program. So we had— they walked around with a special membership card that we had there. We created a— this was the sign-up form that we created. It's a trifold form that gives them all their membership benefits, and also they just filled out their name and all that stuff, so we entered it in our database. And then this was the secret sauce. This was like a newsletter that we sent them out. As you can see, like in this particular month, we always featured a member of the month, 'cause the members love that. We reminded them of their benefits. We showed them of some new arrivals that came in all the time. And then we did some Q&A with some fashion tips And then we also always gave them every month a special membership benefit to come back that was only good for that month. So like this particular month, they could get any 3 pair of socks free for coming into our store. So they got 3 pair of socks just for coming. And every month we had a different special deal for them, every month. So they were just coming back, like almost every month coming back to our store. It was the best thing that I ever did. It's a shame that I just did it so late., and it was just a beautiful piece of business. Again, menswear. Auto repair. So this is Danny Crix, who, Brookgate Tire and Auto Center VIP Club, and so the program was they paid $25 for silver, $50 for gold, or $100 for platinum each month, and they received the amount you paid in monthly service gift certificates and a bonus month gift certificate for 20% of the fee. So if they charged $100 a month to be a part of the Platinum Group, they would get certificates sent to them for $120. It's very similar modeled to what I showed you with Diana's Gourmet Pizza. And they said, and then at the end of 12 months, they would receive additional bonus certificate. The reason why they would always do at the end of 12 months is because lots of times that would keep people in even longer because they would say, "Gee, I'll just wait a couple more months because I'll get the extra bonus certificate." So there was a piece that was built into that as well. This part I like. Danny sent me this. Dan Krik's peers thought he was crazy when he told them about it. That's a sign that you're on to something big. I got to tell you, going back to my membership for my menswear store, because I was teaching other menswear retailers how to market their business, I would tell them about the success I had with my club, and I could never get them to do it in their own business. So when— so, so, and that's fine. I mean, I tried. It was like the greatest thing ever happened. This was the greatest thing ever happened to Danny Crix. It's just the fact you will— one of the things that Dan teaches in the Renegade Millionaire system is that you will get criticism from your peers. And when you get criticism from your peers, That's when you know you're on to something really big, because breaking industry rules is the thing that will always get you better results. Because when you think about it, the majority of people are wrong about running their business, because only the top couple percentage of people that are actually running a business are the ones making the big money. And when they're the ones that are making the big money, are usually doing things totally different than what the people are doing, as the masses are doing. Last night at the IBA Q&A session, somebody asked the question, I think it was about real estate, real estate brokers I think, question about, you know, with changes in real estate, what are, how would you reinvent that business? And Dan's answer was exactly that answer. Which is take a look at everything that they do in their business, and real estate agents do right now, and do the opposite. And that's really what this is all about, is this is about doing the opposite of— and the thought of putting people into repeatable income in menswear or auto repair or in pizza is like crazy to people. And that's when you know you're on to something big. He rolled it out to their best customers with a direct mail campaign. Within 30 days He had $3,100 coming in from this program at the beginning of each month. Whether he changed a tire or did an oil change, he had $3,100 coming in every month. He received a letter from people on this— on the program thanking them for helping to budget the cost of maintaining their cars. So again, people actually appreciated the fact that they were on this program. And when people in the VIP program came into the repair shop, they receive zero price resistance for, from additional work, for additional work, which is really important, is when you enroll people in these kinds of programs, it goes back to the advantages that I told you about before. When you enroll people into these types of programs, they want to buy more from you. They become better customers. They become better— there's better customer value that's with them. Here's a sample of one of the letters that Dan put together. As you can see, You know, it's not particularly a super-duper letter, I mean, but it did the job. Here's another kind of marketing piece that he sent out to them, also getting them to enroll in the program, and this was the form that he used to sign up, which was get $20 or more in free gift certificates every month, so forth. So usually one of the commonalities of these programs is you create some kind of a form that people fill out to enroll in the program. Okay, case study: Kennedy's. Kennedy's is a barbershop club that is owned by IBA— well, it's a franchise, and it's predominantly owned by IBA Chris Hearn. Dan has some involvement with it, does some of the marketing, he does some consulting for it. So this is the same deal. This is about repeatable income in a barber shop. And again, as I said, I think earlier today, one of the things that just pisses me off is every time I go to my barber shop that they don't automatically schedule my next appointment. So now I gotta call them when I'm ready to come back in. Which is just as aggravating as hell to me, okay. So I would just like it if I could just take that out of the equation. So they have 4 levels of membership at Kennedy's. The first one is they have what's called a life membership. I'm not going to show them all to you, but this is the highest level one. It's $129 per month. Men are paying $120 per month. They have unlimited haircuts. Unlimited haircuts for their children, unlimited razor shaves, they get priority reservations, they have private humidor-style mini locker customized with their nameplate, they have black and white framed 8x10 photo with their business card hung on the club's Wall of Fame, which is big because now you get to get access to everybody that's walking in there And so that's media. That becomes media. They get a yearly birthday present. They get a nationwide usage rights to all the other clubs, so they're traveling, they can go to any of the other clubs that they have. They get shoeshine during their service. They get a complimentary beverage, and they get complimentary Kennedy Lifestyle Magazine. And so that is the $120 per month. That's the highest level. Chris tells me that on average the man visits the club twice a month. Twice a month, they're coming in twice a month. So they're getting $120 twice a month for, on average, twice a month visit. So there's also one that's called Liberty, which is $90 per month. There's one called the Pursuit of Happiness, which is $60. So they keep getting less and less service. So here's the basic one, which is $40 a month, and at $40 they get unlimited signature haircuts, they get yearly birthday present, complimentary beverage, and then the complimentary magazine. And by the way, the magazine is complimentary, but it really is the thing that's connecting them. It's really like their newsletter. So you can see, I showed you the, the highest and the lowest, and then the stuff in between is just somewhere in between in terms of services. Their marketing strategy. First of all, they have a free irresistible offer to first-time visitors. So the signature haircuts and the shave, it's a $60 retail value, and they actually use that as their free lead to get people into their clubs in order to sell membership that's on the site. By the way, I have never gotten Chris to agree to do this yet, and I don't think I will. But I believe that I could get 100% conversion on the membership sale with just offering the membership when I have the straight razor at their neck, okay? I think we could convert every one of them, okay? I mean, that— you see, a lot of it comes with timing. Timing is really important, and that is the proper time. Just that razor's right there. By the way, did you want to sign up for the $120 Platinum? You know, every one of them is going to say yes, okay? They get a thank you card follow-up whether the prospect took membership or not during the first visit to the store. There's a monthly theme marketing including direct mail, email, and signage throughout the store. There's the resistible offer mailing to prominent business people. This is a very smart strategy as they appear in their local business news. So what do they do? They look at their local business news to see who's being featured there. And they send them out a mailing in their local business news offering them to come into the store as a congratulations for being featured. There's a new mover mailing sent out twice per month. On average, 18% of the population moves every year. Dean Killingbeck, I don't know if Dean's in the room right now, but Dean Killingbeck does a whole new mover campaign for people. So in every area, there's always constantly new movers coming in, so they target those new movers. There's a Kennedy's plastic bag drop-off to nearby offices with a free offer card and other goodies. So they go around with a little plastic bag and they put it— drop it in nearby business office— offers— offices to bring them into the store. They cross-promote displays with nearby retailers. So what the other thing that they'll do is they'll go into a nearby retailer and they'll put down their display inviting people into the club, and then in their club, they'll put down the retailer's display. So cross-promotion. They have social, they do social and online media, and then they also, which is a very smart strategy, they'll go to local charities when they're doing charity auctions and things, and they'll give them a 3-month membership donation so that they can auction those off. Once again, I'm telling you right now, they auction off one of those 3-month things, the guy walks in the store, you put the razor to his neck, you're going to sell that guy a membership, okay? I wish I had the razor in my menswear store. And they get a member birthday card with the offer to upgrade. So every— they get a member birthday card and then there's always an offer in there to upgrade. And then they get periodic member get a member contests. So this is a referral strategy. So here's a couple examples. They have— this is old data, but this is the most— it says as of 12/09. So in Baldwin Park, they have 523 members. You see all the other members they have in various places. These are people that are paying them every month to come into their— it's just automatically charged them. And, you know, when you go into the store, into the barbershop, you don't even get out your credit card because it's already taken care of. And every month, the thing, it just gets automatically charged to you over and over again. A couple marketing examples. This is member get a member contest. This is— here's another one. Signature haircut and straight razor shave. Good for 1 complimentary. So this is— that's a second-party promotion that they do. This is another one. This is a themed one where I believe they're doing it with like St. Patrick's Day. So this is a half-off one. This is their magazine that they put out. This does it no justice. It's really a magazine. It's probably about 40, 50 pages magazine, and they always feature some kind of celebrity on the front of it. Their website, this is their website, and as you can see on their website, they, you can sign up for membership, and also on their website you can find out about their franchise opportunities on their website. So that's a photo of their website. Okay, next one is from one of our members from Chicago, right? Right, from the zone. Right, and I really like this one. This guy sent it to me because this one was really cool. He's in the motorcycle business. He's sitting right over here, okay? And I like this one a lot because he's in the 3-year repeatable income business. This is $1,899 for 3 years, and I really like this. So basically, his club is 8 years old. He has 112 people join this in 2009. Okay, and what is the fee here? I think it's like $200. How much is this thing again? $1,899. $1,899, okay. And so you get 3 years of winter storage, okay, 3 years of priority maintenance plan, 3 years extended warranty, priority member at the service department with 48-hour turnaround, free inbound towing within 20 miles, transferable to a second owner. That's cool. So you can actually, if you sell your bike, you can transfer it to a second owner. You get 10% off parts and accessories, and you get a big party. This is really important. This is important, by the way. Don't underestimate this. At a yearly pickup date, and that's another— and out of the goodness of his heart, he will upsell them when they come in for the party. So It was very nice of them to do that. So, I mean, how many people in the motorcycle business is taking $1,900 out of somebody's pocket and putting an iron cage around them so they are not going to go anywhere else for 3 years? And the chances are pretty good, I think, that they're going to buy a lot more stuff from him, and also when they buy the next bike up, they're going to buy it only from him. Very smart strategy. Again, it doesn't have to be monthly. It doesn't have to be yearly. This is a 3-year plan. So what do we got here? Marketing strategies. Has a one-on-one. Oh, so this is sold one-on-one by his staff. So the staff is actually selling it one-on-one, and also it's sold by word of mouth. He does have a brochure that he put together, but my guess is the staff just explains the brochure. It's really probably done one-on-one. That's my guess. This is part of his brochure, and there you go. So now we have our live case study, Mueller Memorial. Where's Scott? Are you here? Oh, great. So here's my question for you all, and I got a great prize for you. I got a little bit of time. If anybody has suggestions, we will send Scott the recordings of this. If anybody wants to go over to the mic and has a suggestion for how we can put a funeral hauler in the repeatable income business. Okay, and whoever wins, gets the best suggestion by a vote of attendees, will win a very special prize. Okay, already, the first, uh, so say your name. Gene Kelly. Okay, and, uh, you could have automatic memorial flowers on an annualized basis. With notice cards automatically delivered out to certain family members and a memorial page updated on a website. Okay. Next. Name? Jim Trippon. Jim— how do you spell it? T-R-I-P-P-O-N, right? Yeah, I had all that stuff too, but in addition to that, What? I had all that stuff too, but in addition to that— all that stuff too? Yeah. Okay, Dwight, but inside joke for Peak Performer members. Okay, inside joke. Yeah, go ahead. Okay, so I would also send two things. I would have a yearly gift to the favorite charity of the deceased and an announcement sent out to each of the family members that was part of their living legacy. And/or an annual, if they're depending on their spiritual beliefs, mass or remembrance in their spiritual house of worship. Okay, let's do one over here. Name? My name is Jill Weishart. Jill? And I would do it like a life insurance policy. You put X amount of money and they will then maintain your plot for X amount of years after you die.

My name is Jerry Koziah, and I have an idea for a living funeral situation where you can basically prepay for your funeral $10 a month until you pass. Now, how that would work is it would all go into the, to the business, to the funeral home, and they're taking a gamble that, you know, very few people are going to pass soon. At the same time, they're building up their reserves so so that when they do, there's funds in there to pay for it.

Right. And so, and if you die quickly, well, you're ahead of the game, right? You already paid $10 and you get this, like, great funeral. But it's, you know, it's like going to Vegas, you know what I mean? Absolutely.

It's an insurance, and if you're paying for it for a couple years, you've got your investment.

Right, right. I got you 100%. Yes.

My name is Ted.

Ted?

What was your name?

Ted.

T-E-D, as in T-Man. So obviously, you want to get them to prepay, but, and if you market to the affluent, what you can do is you can have them prepay for like a mini museum where it's housed in a little thing where you go in there and there's videos of them. You press a button, a video of the deceased shows up, pictures of their family members, and maybe even pay for something like every, First anniversary or fifth anniversary of their death, the company, the memorial company, hosts a little party for people to go there, and there's like, you know, a little bit, a little party.

Nothing like a funeral for a party, man.

That's right. Drinks and, you know, in a nice little section where there's ponds and fish and all that good stuff.

Well, great. Thank you very much. Yep. So do we, do we put— yeah, yeah, hi, how are you? Did we put, did we put Did we put them in, the funeral parlor, in the continuity repeatable income business? Did we? If we can put a funeral parlor in it, can we put everybody into the thing? Yeah? So, I want to go over with you one more time the advantages of adding repeatable revenue to your business. Number 1, it reduces the selling activity. And when in the case of the funeral parlor, you really can't go back and sell them again anyway. So you got to sell them in advance. Reduces advertising spend. It increases customer loyalty, it increases customer value, it increases referrals, it benefits the customer a lot, and increases the overall value of the business, and you make some big money with doing this.

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