Jay Abraham-Masters of Passive Income-program Summary v1.01

Jay Abraham – Masters of Passive IncomeProgram Summary version 1.01 Jay Abraham is still working out the design of a program to teach people to become skilled at joint venture creation. Masters of Passive Income (MPI) appears to be at least his third shot at recruiting a “class”, providing instruction, and getting them to brainstorm on monthly teleconference calls. Jay is both building a new product and figuring out how to most effectively install the necessary knowledge, motivation and experience in others. But enough about that. MPI involves a very high volume of material. It’s tough to get through all the reading. A lot of the material is taken from interviews, which are not necessarily organized for efficient digestions. Moreover, once you have read a large quantity of material, it is nearly impossible to go back and refresh what you learned without extensive notes. The first purpose of this summary is to provide notes for effective review. The notes may help you cut down on reading time, or you may use them to make sure you are incorporating what you learned. Another problem with the material is the organization. Jay admits that he is a not a linear thinker. He tends to wander in one direction and then another. He provides good content, but the volume of the material requires organization for efficient digestion. The second purpose of this summary is to provide a better organization of the material. I have organized the material by topic and subtopic. I think reading the first 2 or 3 summaries (or the original material if you are just using the summaries for review) in each category is essential to getting the message. The organization I am offering may save you from some of the repetition in the material. Jay is using something called the “Socratic method” of teaching. I recognized it on his first call. He confirms it in one of his interviews. However, Jay is not a master at using the method. The Socratic method is the prevailing teaching method in U.S. law schools. It requires the student to read and analyze the material before class (or before the call). The student preparation allows the teacher to call upon students to teach based on their own internalization. In law school, professors ask pointed questions and force the students to defend their reasoning. The idea is to make the student a master of the material through the challenge. Jay is trying to get students to share new insights through the discussion process, but I have yet to see any really helpful insights come from the calls. The JAMPI mastermind group is our own Socratic organization, if enough people want to use if for that purpose. By teaching what you learn, you develop your own expertise with the material. You help others learn through the expression of common perspectives. We also have the opportunity to bring outside material to the mastermind group, to add things to enhance Jay’s instruction. For example, Awan has introduced us to Janet Switzer’s material, which is more direct in many respects than Jay’s instruction so far. The Relationship Currency is also likely to fit very well with Jay’s material. I recent reviewed “Made to Stick” by Chip and Dan Heath, which I think adds a lot of insight into Jay’s copywriting material. I am looking at a couple of business blueprint products to see if there is ANYONE who has put together a really effective A to Z implementation product, adequate to taking students from a low level of implementation experience and moving them to effective action in building a new business or mentoring an existing business. If I find that no effective product exists, I will probably start working on creating an implementation process outline. So that is where we are today. This is version 1.01. MPI is a 13 month course. If I stick with this project, I’ll continue to add summaries of additional material through the remainder of the course. In addition, if readers want to add reviews of material that relates to the subject matter, I may include some outside products in a later version of the program summary. This is a big volume for a summary, but just remember that we are trying to process and make accessible for review a huge volume of instructional material. I have taken the material for this version from what I have posted in the forums, so I am making it available to everyone without any waiting times. Take care of it like you would any other exclusive. Hopefully this word file format will be more accessible than reading the forums, and I will add more in future versions. If you have comments, please post them in the comments to this torrent. All the best! Table of Contents (p. 2) I. Mindset material * A. Personal Mindset: Brian Tracy on Paying Yourself What You're Worth (p. 3) B. Client Focused Mindset: Advanced Strategy of Preeminence (p. 5) Stephen M.R. Covey on Gaining Trust (p. 7) Chapter 1 of Jay's Book (not yet summarized) C. Organizational Mindset: Jay's Interview with Paul Lemberg (p. 9) Dr. Stephen R. Covey on Passion (p. 11) Brian Tracy on Maximizing Your Time, Goals and Efforts (p. 13) 21 Great Ways To Build A High Profit Business - Brian Tracy (p. 16) Jay's Interview With Sir John Harvey-Jones (p. 18) 12 Pillars of Strategic Business Growth (summary posted by Awan) (p. 19) D. Organization Management: John Dudeck - On Highest And Best Use Theory (p. 20) Jay's Interview With John Dudeck (p. 23) Jay's Interview With Tom Phillips (p. 24) II. Joint Venture material + A. JV Mindset The Power Parthenon (p. 25) Joint Venture Primer - Transcript #1 (p. 26) Jay's Interview With Tony Robbins (p. 29) Fran Tarkenton on the Meaning of Business Life (p. 31) Paul Lemberg - On Change (p. 34) Nine Drivers To Business Growth (not yet summarized) Abraham 101 Overview (not yet summarized) Quotations to Build Your Business By (p. 35) B. JV Tools Joint Venture Primer - Transcript #3 (p. 36) Barter Basics to Think About (p. 38) Partner or Perish (not yet summarized) Rethinking Inside The Box - Double O Matrix - Alan Coleman (not yet summarized) C. JV Presentation Joint Venture Primer - Transcript #2 (p. 39) Joint Venture Strategy Consultation audio (I recommend listing to this one.) (p. 42) D. JV Agreements 93 Referral System – Summary (not yet summarized) Other: Joint Venture Training Program Teleseminar calls 1 -13 (p.45) III. Copywriting material $ A. Advertising Mindset Copywriting Template (p. 55) B. Adverstising Tools 37 Million Dollar Headlines (not yet summarized) 100 Greatest Headlines Ever Written (not yet summarized) Brian Tracy on Paying Yourself What You’re Worth As opposed to the preeminence material, this reading covered another aspect of mindset: how you think about your own life and goals. 1. Main Ideas: 3 Focal Points for success: 1. Goals 2. Measurement 3. Activity 4 Areas of Focus: 1. Income and Career Top people think in terms of their hourly rate There are generally 3 things you do that account for 90% of your income, everything else is support, complementary or can be delegated or eliminated. Get your time under control by finding your top 3, making them focal points, and stop doing things of low value. 2. Family and Relationships 85% of happiness comes from relationships People who are good with relationships measure face time. Kids need ten minutes/day; adults need more. 3. Health and Fitness Focal points are waist size and 300 minutes/week of exercise. 4. Financial Situation Focal point is number of years you could survive with no more income at current consumption rate. Goals is 20 years. 4 Ways to Change Your Life 1. Do more of something 2. Do less of something 3. Start something new 4. Stop something entirely. Zero based thinking: “If I was not now doing this, knowing what I now know, would I start it up again today if I had to do it over? … If the answer is no, the question is how do you get out and how fast?” (Same question applies to relationships, employees, partners – would you hire them again?) Orientations of Successful People 1. Future orientation. Optimism. . Losers think about the past and look as causes as blame. Winners believe that the best is still ahead of them. Idealization. Winners imagine an ideal future. Winners think about how to reach it. Vision. Go through the 4 areas of focus and idealize your perfect future. “Practice what we call back-from-the-future thinking. Back-from-the-future thinking is where you project forward into the future and you imagine that your future was perfect in every way. Then you look back to today and you say, “What would I have of to do starting today in order to create that wonderful future?” If you are not making the progress you want in an area, you probably need new knowledge. Courage. 2. Goal orientation: 7 steps to goal setting. a. Decide exactly what you want. Be specific. b. Write it down and make it measurable. c. Set a deadline. d. Make a list of everything that you can think of that you’ll have to do to achieve the goal…. Everything you could read, every person you could talk to, every obstacle you could overcome, every action you could take, what you could do more of or less of or start or stop. You write it down, write it down, write it down until you come up with 10, 20, 30 things. You keep adding to the list. Each time you think of a new thing, write it on the list. The more things you write down, we have found in psychology, the more you come to believe that you can achieve this goal. e. Organize the list. A list organized by sequence and priority equals a plan. f. Take action on your list immediately g. This is the kicker that’s going to double your income, double your time off, and make you rich and successful. It is to do something everyday on your major goal. Whatever it is, do something everyday on your major goal. The “Three P’s” for writing goals: Present tense, Positive, Personal. (Example: It is December 15, 2007, and I am receiving a check for $20,000 from my best salesman.”) Write down at least 10 goals, then go over the list and you imagine that you could wave a magic wand and you could accomplish any one of these goals within 24 hours. “Most people who do this exercise will find that within 12 months they’ve accomplished eight of their ten goals. They’re really quite astonished; eight of the ten goals will be accomplished.” The only question you ask is, “How?” Winners always ask how. There’s no such thing as failure, there’s only feedback. If you try something and it doesn’t work, you simply say, “This is a form of information.” Quote: “Imagine that there’s a great power in the universe and this great power loves you and wants you to be successful and happy and have a wonderful life and live a long time.” That’s all that this power wants to do. The only reason that you don’t achieve it is because you don’t listen, like your parents told you, “You don’t listen.” This great power knows that you have a perverse nature. You have a perverse nature in this sense is that you won’t learn unless it hurts. You will not learn. You just kind of bullheaded; if it doesn’t hurt, you’re not going to learn. That’s why it’s very hard for us to get the great lessons of life out of books or out of other people’s experiences, we have to suffer. There’s three ways that we learn, three forms of pain. We suffer emotional pain. We suffer physical pain. We suffer financial pain.” ““Whenever God wants to send you a gift, he wraps it up in a problem and the bigger gift that God wants to send you, the bigger problem he wraps it up in…. I know many of you feel like its Christmas morning again at your house with all the gifts lying around, but here’s what the superior person does. The inferior person blames other people. The inferior person becomes angry, depressed, lashes out, and so on and blames other people for their problems. The superior person says, “I’m responsible for my own life, “What am I meant to learn from this setback, this difficulty?” When you accept responsibility and you look for the lesson, first of all you’ll always find a lesson. The second thing is while you’re looking for the lesson you’re mind becomes calm and clear and positive, and you become more creative and more effective, people admire you and respect. You become a better person when you’re looking for the lesson.” “The starting point is to identify it clearly…. “What one skill, if you were absolutely excellent at it, would help you the most to build your practice? What one skill, if you were absolutely excellent at it, would help you the most to double your income? Whatever your goal is, what one skill if you were absolutely excellent at it, would help you the most to achieve your most important goal?” “Whenever you say “what’s yours” the personally instantly gives you a learning and growth goal, instantly gives you something that they’re working on to become better.” All skills are learnable. You are probably only one skill away from doubling the size of your practice and doubling your income. 2. How the Concepts Translate into Action for Me. I can bring more structure to my thinking. 1. Focus on Goals, Measurement and Action. 2. Write out 10 or more goals for the four areas of life: income, relationships, health and financial situation. 3. Start with my top 3, and write out very clearly everything included in the 7 steps, so that I am taking action and measuring key elements every day. 4. Only ask how. 5. Decide “What’s Mine?” (In case we ever want to ask each other that question on a call. Advanced Strategy of Preeminence 1. Main ideas: As a lawyer, I naturally have a position of preeminence with my clients. So Jay's concept fits very well with my experience in this area. Quote: They saw a distinct difference between giving information and giving advice. They saw their role as telling people, “Here’s what you should do about a problem, or a situation, or an opportunity,” and specifically supported it with a compelling, irrefutable set of definitive facts. They saw their role as helping people focus on issues they’d never fully verbalized. As a lawyer, I have specific knowledge about the law. Clients come to me for my expertice. My role is to give them specific advice about how to avoid or resolve specific problems. I take things that the client does not understand, and I educate them, so that they can make good decisions in their businesses. Quote: They felt like a key element of their function was connectivity and to help people take the next steps. It did no good to give them a data dump of information if they didn’t know what to do with it, and why to do something. Their role was to connect all the dots, give them a plan, help them take the next step, protect them, make that step logical, appropriate, obvious and easy. They saw, importantly, their role of their ability to put into words what people wanted but could not articulate or put clarity on, and then build on that for them. As a lawyer, most of my clients are not capable of writing their own legal documents, filing them, and so forth. I must either do the work for them, or shepherd them through specific legal processes to make sure that the job gets done properly. I have spent three 20 hour days at a client's office before, showing them how to organize documents necessary to the sale of their business, or example. Because they lacked experience in selling businesses, they depended on my knowledge of what to disclose and how to document it. Quote: So, it’s like the secret to making business really soar is to have a passionate awareness and commitment to a higher purpose, and the higher purpose is not your own enrichment. It’s different kinds of financial, or psychic, or transactional enrichment of other people -- helping their lives be better, helping them be more fulfilled, helping them get more out of the process, or out of life itself. For a lawyer, the interests of the client must always be preeminent. Lawyers who work on transactions in which they have a personal stake have a "conflict of interest," and they must be extremely cautious about doing anything that would generate a benefit to themselves at a cost to the client. Quote: People will always pursue their wellbeing in a logical, rational way, but they will make their decisions on an emotional bent. It is always easy for a client to take the advise of a lawyer. There is a natural imbalance in knowledge that gives the lawyer automatic authority. But in other areas of business and personal relationships, there can be resistance to someone trying to provide a benefit to others. Quote: You’ve got to understand, your job is to acknowledge that reality of human nature and compensate around it. Reassure them, direct them. People will do more things to curtail making gains, because they don’t want to look foolish. They will work harder not to look foolish than they will work to gain an advantage. It’s human nature. Don’t argue with it. Accept it and factor into your strategies and your actions this reality. I have to have a strategy for delivery of a benefit to them. You want them to take an action that makes a commitment. and so forth. I may already have some value or I may need to learn something new in order bring value to the situation. If they don’t take action themselves. “What do I have to give? What benefit do I have to render?” It’s nothing to do with sales shenanigans or trickery or schemes. I think the steps need to do those things requires a discussion of some of the other readings. I think that getting past people's natural defenses. yet. That is my intended outcome because it’s much more powerful if you own it . b. So to sum up the action steps for me.. reducing the risk to the customer. The next step is to identify opportunities where there are needs. But the mindset also requires that we identify what we have to offer that will benefit other people. 2. I think I already understand the preeminence mindset. If I do my job correctly for anyone. “What do I have to say to get people to buy?” Instead you should say. My purpose for all of you is to teach you how to become value creators or value generators.. I have to identify how I can benefit someone else. How the concepts translate into action for me. Your commitment to them will never be as strong as their commitment to themselves. then I have something of value to offer them. Empowerment is a meaningless word unless you understand its implication. I have heard him talk about the benefit to the customer. personally. is the key to putting yourself in a position of preeminence with them. I have to apply the same principles. Again. I understand Jay will cover opportunities and techniques after mindset. Jay indicates that benefits can be both financial benefits and emotional benefits. Quote: Most people think. Just listening might bring value to others in some contexts. business or personal. getting into a position to really help people. c. and make it their decision. and identify the value I can bring. The key is helping the person to realize the benefit. which comes back to mind set. And since I don't think he teaches hypnosis or NLP. My focus has to be on how someone else can benefit from what I know. Getting them to take action. there’s no power in it. I understand Jay's mindset. and if I can see it. . in order to "sell" my services or products to someone. Quote: Instead of making a conclusive statement. is learning to build relationships involving trust. a. In any event.. Before I can apply preeminence to any relationship. So far. they felt they were much better off giving their client the ammunition that allowed them to make the conclusion for themselves. then I have brought a benefit to their life. involves more than the ideas in this transcript. If I can help them implement the change. That becomes a source of passive income when my contribution is recognized and arrangements are made for payment. Perhaps the key is simply to have enough knowledge that you are always a value generator in your field. they end up evolving to the decision thinking that some conclusion is their own. If someone is not already implementing a certain behavior. It has to be implemented through concerted action involving me and the client. I am expecting a lot from him as we move past the mindset topic.Jay hasn't mentioned any techniques for getting past people's natural defensiveness. The final step.'s material on trust. In relationships that are not lawyer-client relationships. such as Covey Jr. so that my position of preeminence leads people to make changes that benefit them. and so forth. You never want to draw the conclusions. or use a new product to satisfy a need. business can be transacted faster and at a lower cost. But if you just try to talk first and not understand you won’t have anywhere near the influence.”) 9. but because people’s expectations of what’s supposed to happen is different. to negotiate them. Quote: “trust is always affecting speed and cost.. Actions that build trust in both Character and Competence: 11. So even before you say. to discuss them. Actions that create trust in your Character: 1.”) 13.”) 5. And they’ve never taken the time to clarify them.”) C.”) 10.”) B. Main Ideas. Quote: 13 Behaviors Of A High-Trust Leader (with quotes describing) A. Make restitution where possible. But when people are held accountable -when you yourself are accountable -. because then you’ll have influence with them. The key to preeminence is to establish relationships of trust with other people. Deliver Results 7.”) 4. Improve. Clarify Expectations (“trust breaks down not because there’s bad people involved. … like a hidden variable that’s affecting everything else. Practice Accountability (“You hold yourself accountable. But those that have earned it. Don’t let your pride get in the way of doing the right thing. states that if you have trust or confidence in other people. simple language. 4. you’re careful how you extend it until they prove more and more. … But we often don’t recognize it because it gets manifested in other ways. Get feedback. Show Loyalty (“I will speak about people as if they were present. Results. and they won’t trust you near as much. 2. Create Transparency (““Look. Listen First (“Understand what’s important to them. Right Wrongs (“just make things right when you’re wrong. Recover. Act upon the feedback. because people respond to that.”) . 3. Here’s what’s important to me. you extend it abundantly. Take responsibility for results. Covey Teleconference: Leading At The Speed Of Trust 1. I’m trying to help create something we all can win by. R. Capability. and using clear. You’re counting the truth in a way that people can verify and validate. Those that are earning your trust. your talents.you will build trust in all your relationships. Get Better (“Be a constant learner. Covey. your motive.”) 8. 1. “How do I build trust with other people?” you first say.”) 12.”) 3. even the tough issues. Confront Reality (“Take issues head on. Keep Commitments (“make commitments. But when you have low trust you’re going to see all kinds of bureaucracy creep in. which is referring to your agenda. What’s important to you?” . telling the truth. and different types of cost creep in that are all part of compensating for a lack of trust elsewhere. This is tough love. Demonstrate Concern (“Tell people you care.Stephen M. Apologize quickly. Your intent.” Quote: “It always starts with yourself. … accountability is hard. Integrity. to validate them. the foundation of who you really are. I represent them. Jr. your skills. “How do I do this with myself? How do I build self trust? How do I build this individual credibility that will then become the foundation for building extraordinary trust with other people?”” Quote: 4 core areas that you build that credibility.. Demonstrate some humility. Actions that create trust in your Competence: 6. Talk Straight (“That’s being honest.”) 2. even the so-called “undiscussable” issues. You’re always trying to get better and better at whatever you’re doing. Extend Trust (“extend trust conditionally…. Hold others accountable. This is discipline. It requires learning. . Even if you get embarrassed. How the concepts translate into action for me. It requires discipline. actively or passively. you can actually overpower anyone that tries to take advantage of you. analysis of what works. we have to begin to apply it to something if we want to develop competence. effectively or defensively. experience.2. The thing that really stops us from straight talk. you will never be afraid again. So as we learn from this program. measurement. and being loyal is our fear. telling people we care. people see how strong we are and naturally want to follow us. We don’t want to be uncomfortable or embarrassed. if the most important thing to you is doing the right thing even when it is difficult. Character is a decision you make about what you are going to do. The strength of your confidence is more powerful that the vulnerability that exists when we open up to potential criticism. Demonstrating Character requires a person to have confidence. right or wrong. you develop a track record of capability that you can count on and that other people can trust. being humble. Competence is what we gain by learning and working. They know that they can count on us. and so forth. Over time. Demonstrating Competence accesses another set of resources. It requires action. When you aren’t afraid to do the right thing. But when we demonstrate that we have so much confidence that we can confront those uncomfortable issues. The only way to have the necessary self-confidence is to be committed to doing what you know is right. opening up emotionally or financially. simply by having everyone share what it is they see. At least not at the get-go. strategy is the process of process of determining how you will use your resources to achieve your goals. review. Then you define major strategies to gain the greatest leverage (biggest output for the smallest input. The market could be your vendors. safer strategy to get you the $5 or $10 million would you be willing to examine that against this?” “I’ll do the session with the senior managers in a company. Strategy assumes that it’s about a range of resources and tactics in service of a specific important. The market could be your suppliers. And what I found was that you could only go a few steps and then your plan fell apart. I call it Creative Alignment. You test and measure. Quote: “I used a formal strategic planning model for awhile. The market could be your competitors. however many there are. Therefore. you have to begin with a clear commitment to move toward a specific goal. Then you choose your opening tactics – and mobilize into action. The Main Ideas. You are dealing with people—who respond! And who are executing their own plans. You have a sense of where you want to be. Quote: “The #1 entrepreneurial question is: Where do I want to go? You cannot be strategic if you don’t know where you’re going.” Knowing one way to get to the goal is not enough to qualify as a good strategy. You do something and the market responds to you. The market could be your customers. First. They always agree when we’re done. Every time. But if there’s an easier. Evaluate your strategy. We should always be looking for an easier.” . … The strategy is how are you going to lay things out as best you can to get as far down the road as you can toward your vision and then you define some initial tactics and you execute them. You look as far as possible into the future of your market and your competitive landscape. And then to start to kind of harmonize them. faster way to achieve our objectives.” Because any situation is fluid. Quote: “Being strategic requires you have a mission.) You deploy – or position – your resources based on that strategy – what you will expend quickly as well as what you will hold in reserve. an effective strategy should include mechanisms for measurement. Your market is not static. faster. and refinement. once there were 27! It can get pretty hairy because they don’t really agree. Quote: “O. And your strategy from the get-go is saying. significant goal or vision. There’s something important you’re trying to accomplish in the larger sense of things. And make your next moves. but it had some key ideas to remember about strategy. Sometimes just one. refining strategy should be an ongoing process. And the reasons your plans falls apart is because you’re not dealing with a static situation. “What are my best opportunities to achieve this end?” … From there you begin to set things in motion to achieve those ends. Then you reconnoiter.” “Where is the Company Committed to Going?” Second. and if necessary regroup. An organization with flexibility will be able to constantly shift its allocation of resources to take advantage of opportunities. Reviewing and improving strategy is a also an effective means to developing consensus in a group. I have a process that I get people to agree on. This interview was very brief.K.Jay’s Interview with Paul Lemberg 1. First you define your vision and mission. The process I use now is called Iterative Strategy. where you laid out all your action steps for the next upteen months and then you tried to execute them. But you do something and the market responds. Envision the goal of the organization. you will gain that much more experience which can be applied anywhere else in your life that you find opportunities. we will be in the best position to profit from other opportunities. you won’t feel as ready to take advantage of your own personal opportunities. What resources to we have? How can we best use them to reach our goals? 3. Where are we going to be in 6 months. Even if you just piggy-back on what other people are writing. we will start to run into challenges and new opportunities. they need to begin to vocalize it. As we implement. Even if you don’t feel like you have something new to add. ideally? 2. if you at least engage personally in the visioning and planning process. The refinement process will help each of us optimize our own strategies. How the Main Ideas Translate into Action for Me. As various members of the organization begin to develop their own internal vision for the organization. 4. we can begin to see a harmony develop. Through an ongoing exchange with other members of the organization. I can apply the foregoing concepts about strategy to my own businesses and to this mastermind group. 1. I think that would be a good place for people to begin expressing their vision for our mastermind group.2. I started a thread for JAMPI masterminds – Goals. If you are just watching as others participate. you need to start writing so that you begin to internalize the fact that we have a mastermind group and you are a part of it. If we have done a good job of forming and refining our individual vision. . And that is almost the first activity that such people do.combined with professional will. And that’s what leadership provides. but then became sustainably great. But it wasn’t about them and their career and their reputation.even if it’s not in their own job. In a knowledge economy. and increasing their own circle of influence through solving problems -. then their spirit is kind of a servant leader. Discovering their strengths will help give them a voice and empower them to make a greater contribution. 2. The key to leadership in a knowledge economy is to leverage the different thinking and skills of a team. They’ve got to literally work on themselves… take more initiative to bring the people together to come up with a strategic direction. he shows that in every case without an exception of organizations that were good. Good To Great. You don’t agree or disagree. and with a vision that people can emotionally connect to. It was about the people. Stephen Covey on Passion 1. “What is it going to look like?” Then reverse engineer the process to arrive at the end.” Invest in people -in building relationships of high trust -in learning and sharing learning -in setting up empowerment agreements Quote: “If you study Jim Collins’ book. or your basic good or service that can serve that in the markets that you’re going after? So that you have to think through what those big goals are. . with values. of a servant leader. Once they get that going. and also what the values are. It’s not based on an unleashing of human talent.” “The knowledge worker age requires people to use their voice if they’re going to succeed. of nurturance. who challenge … I would try to get them very involved in this development of this strategic plan so that they really have a clear sense of what the most important goals are. you just learn and develop a deep empathy. the cause.” “It is an inside-out process.” Begin with the end in mind. old concepts of a leader based on a hierarchy no longer make sense. over a long period of time the number one quality was humility – the absence of ego -. because it’s based on a control model.” The key to creating strong relationships is listening and discovering what is really going on inside the minds of customers. and the main plans to accomplish those goals. the work. to “How can I remove obstacles for you? What can I do to help you further what you’re trying to do?”” “The strategic means that you’re focusing upon what are the over-arching purposes you’re trying to serve? And what is your basic value proposition. How the Concepts Translate into Action for Me.” “Leadership is not position. fierce will. Quote: “I surround myself with people who are different than me -. and it’s based on moral authority. but it’s inside their circle of influence – little by little people honor those people. and it became obvious to other people. The industrial age drowns out their voices and disempowers them. … you need a context in which to operate in which everyone can operate. Even artists need leadership… need some kind of vision… some kind of strategic directioning… some system of accountability. When people envision themselves serving other people’s needs. They had tremendous.Dr. People should be on the same page about that strategic context.who think differently. Main Ideas. Leadership is a choice. Quote: “Leadership is the enabling power to everything else that takes place…. Leadership in a knowledge economy requires the leader to be able to develop a shared vision with other people. . To achieve the results of a leader. and then work with others to shape a mutual agreed upon vision in which all participate and add their own strengths. the leader must provide a vision.The most important message that I took from this is that I can gain so much more productivity and leverage working with others when you identify their strengths. Leadership involves bringing out the voices of others and motivating them to contribute in ways that they are capable. but may have lacked the passion to act previously. 3. Eventually you arrive at a vision for the company. there is always a constraint. we only learn through emotions. They look at their situation with honesty and assess what they are willing to do every hour of every day to get to where they want. People do not buy a product. Success comes more quickly when we increase our rate of failure … meaning that we are not afraid to take action. Therefore. Always identify solutions. We look for honesty in the people we deal with. Read Brian Tracy: Maximum Achievement People don’t take action in the direction of their goals if they are not clear on what their goals are. Focus you energy on alleviating the constraint. The natural tendency of people is to disburse their focus. Combine long-term vision with short-term focus on daily and hourly action to achieve the vision. Outer integrity is quality and excellence in everything you do. Focus on the future. A superior mind can hold to contradictory ideals and still function. specific written goals. you have to focus primarily on the constraints. then define it in terms of the whole business. Ask “What is good about this? What can we find in this that we can benefit from?” 2. Successful people have clear. Identify what determines the speed at which you can achieve something. The Main Ideas Idealization: “If I had all the time. and their focus is on your feelings at every minute you are in the process. so it is better to focus on what you can do and do it. People stop taking risks if they are afraid of getting out of their comfort zone and failing. looking for common vision and plans that link things together. and often it’s worth doing poorly several times. Vision is based on values. and all the resources. 4. Believe that the world is conspiring to benefit you. Pessimists get bogged down in the problem of who is to blame.Brian Tracy on Maximizing Your Time. The highest value is integrity = wholeness. Look for overlap between people. Successful people have success habits. Suffering aids learning. Be solution oriented. Then you can save yourself from greater pain in the future. Leaders know what they are. To reach your goals faster. Psychologically. if it is for the whole company. Between where you are and where you want to go. Anything worth doing is worth doing poorly at first. If you have a clear vision of what you want. most problems come from lack of clarity. and all the contacts. what would it look like?” Each person define their ideal in terms of what they are responsible for. They work until them master it and develop a new comfort zone with a higher level of performance. Nature increases the pain until you learn the lesson. 1. If you disregard the lesson from a difficulty. People don’t take action in the direction fo their goals if their goals are too big. There will be failures. unity. Inner integrity is complete honesty and truthfulness. Ask “what would have to happen for this company to …?” The most important attitude is optimism. Goals and Efforts 1. you will often make the same mistake again. and they never deviate from it. Most success comes from clarity. perfection. and I wanted to design my life perfectly. People succeed because they push themselves outside of their comfort zone. and all the everything that I would need. But what has occurred must be endured. . People who success are intellectually honest. It is the bottleneck that determines how fast you can progress. Focus on taking constructive. persistent action in the direction of your goals. The Theory of Constraints. the best organizations concentrate on how you feel as a result of dealing with them. they buy how they expect to feel as a result of the purchase. and all the money. Seek the value or lesson in every difficulty. it is never in question that you will achieve it. always look for the good. You can stay busy all day with a diffused focus. despite the potential losses. .) Daily and weekly planning: on a Saturday or Sunday. outsource. What else could be your constraint? 80 percent of the constraints holding you back in your life are internal. Budget your time minute by minute. question it. There are many things going on in every business. walking to the water cooler. you see the successes have a higher focus and they are much more action oriented. “Do I need to hire a key person here? Or can I outsource?” Value your time. appointment. The quality of your thinking determines the quality of your life. Always work from a list. When you get them all down somewhere. lay out your week: things to do. start on the most important thing you can do. Something that makes a contribution is what you can really become passionate about. Zero-based thinking exercise… stress is a sign that you are in a zero-based situation. all day. Each time you approach the end of a successful growth curve. it is off your mind. easy. do it immediately. but usually 5-7 are critical. Then you get the stress relief and reward by getting important things done. The repetition of acts of procrastination form the steel cables of habits that destroy the likelihood of success. You have to throw them off and form habits of taking action immediately. The difference between successful people and failures is initiate. Don’t do the “stress relieving” activities (ie taking a break to call home. It is difficult to keep people focused on a single result. Next morning. Concentrate on changing your discipline on an hour by hour basis. They always produce more than they cost. Your weakest critical success factor determines the degree you can utilize everything else. you will be successful. They take important action immediately. get ready to begin the process again before decline begins. If I could only do one thing on this list. Prioritize top 5 or 6. travel time. Acceleration-the speed with which you can achieve your goals. manage. There are too many interruptions from phone calls and people coming in. Those are the important ones that you do. Otherwise. If you can discipline yourself to do the most important thing. But the focus on the big picture generates big differences. Therefore. Citical success factors are the ones that can be leveraged with minor changes. If marketing and sales are you most critical functions. The situation bothers you. Choose focal point. Anything less than 2 minutes. “What can I do immediately that will begin to alleviate this constraint?” Then force yourself to do it. The key person has to keep them focused. accomplish? Build a system where you get a reward. little. It is a distraction. Get ideas about what you can do by looking at what others are doing. measure what percentage of your time you spend on them each day. Are you getting diverted into less important tasks? Only do those things that reflect your desired hourly rate. your mind goes calm and relaxed. Once you have decided and made your list. Discipline yourself and others to focus their energy single-mindedly on reaching the result that will help you advance. and work on the fun. then plan your day. The hardest part of being intensely action oriented is taking the first step. irrelevant stuff. Success comes from focusing your talent on your very biggest opportunities. Good people are free. Biggest problem is having all the things in your head that are undecided or unrecorded. But when you look at their definitions of initiative. It is a barrier to happiness. etc. which would it be? Circle it. If you don’t know how. the fastest way to build your business. identify your greatest weakness and then focus you energy on bringing that critical success factor up. everything you need to do. a sense of accomplishment every time you get your most important thing done. Everything else is stress relieving. But failures think that they also have initiative. people tend to wander in their own direction. Leverage-maximizing output per unit energy of input.The job of a leader is to choose the area of effort. Good people are the fastest accelerator. every day. Then you know it is doable. ask someone in another town or another industry. People who are stressed at work are either doing low-value or non-valuable things all day or are not rewarding themselves for getting the important things done. and little details. What is the most important thing I can do that will make the biggest difference? What am I weak at? What is my greatest opportunity to work on. After you identify your constraint. we are happiest when we know that what we are doing is making a contribution to benefit others. Ultimately. You can improve the plant.Some things in life are facts and some are problems. Identify the critical constraints that need to be improved. Tie a benefit to a time period or deadline for action. Leadership requires initiative. How the Concepts Translation into Action for Me. but you can’t make it grow faster. Use short-term activities to focus your hour by hour actions. Give them a reason to go forward now. 2. Begin with a clear vision of your ideal. bringing you closer to your ideal every day. Risk reversal is the key concept for accelerating the customer decision making process. Don’t be one the people that fools himself. A fact is the time it takes for a plant to grown. Work on them first. Real initiative involves taking immediate action over and over again each day on the critical constraints that are holding your business back from faster success. . The time required is not amenable to a solution. Define your strengths in terms of what your customers want and are willing to pay for. Practice Zero-based thinking. Look at what is happening now. Humans have an urge to completion. If railroads had defined themselves as being in the business of moving people and freight at the best prices. and begin to either develop or acquire them. Manage by wandering around. they would probably still be dominant. Priorities. and how will you know when you have accomplished it? 2. What new capabilities will you need in 3 to 5 years? 6. we need a beginning. High profitability is the result of focus on highest profit products. Determine exactly who your customer is. 3. “I was wrong!” “I made a mistake!” and “I changed my mind!” Circumstances change. Activities. What could your competitive advantage be in the future? 5. You have to learn to be able to say. Develop a competitive advantage. instead of their limited vision of running railroads. Strategies. Identify the core competencies you will require. and identify the likely consequences in the future. Who would your customers be if you want to be a high profit business in the future? What changes do you need to make to attract those customers? 4.Brian Tracy: 21 Keys to Building a High Profit Business 1. given the direction of your industry? The best way to predict the future is to create it. The greatest killer of motivation: “not knowing what is expected. Develop a clear mission for your business. so that you are well positioned for the future. Objectives. Know what our customers want and need. and you have to be able to adjust 21 Keys to high profitability: 1. Develop a clear sense of direction. if I had to do it over?" Primary reason for business failure: Inability to stop doing things that are no longer working and fire people who are no longer performing. Focus on key profit areas. Set clear targets for yourself and every part of your business. knowing what I now know. both what they are and are not now getting from someone else. The most important characteristic of an executive is: Flexibility. What business will you be in tomorrow. Determine exactly what business you are in. What gets measured gets done. Results and Profitability. What is your mission. .” GOSPA: Goals. 9. information changes. Thinking tool for Flexibility: “Zero-Based Thinking”: “Is there anything that I am doing in my business today that. I wouldn't start up again today. What do you do well? Build on your strengths. Your mission must be defined in terms of how you serve and benefit others. Know what it would take to get customers to buy from you. It must include a method to achieve your result. High profit companies focus on: Performance. Main Ideas. To be happy. middle and end to every task. What will be the high profit products of the future? 8. The most important factor in building profitability is the thinking of the company’s management and leadership. Know your customers’ demographics and values. Activities are the specific daily functions clearly delegated to specific individuals with standards of performance and deadlines. It must include a measure to assess results. It must include clear written values that everyone knows and commits to. Take a long-term view of the business. Set clear performance targets. 7. or don’t compete. Define the business in terms of what your products and service do for customers. Interview at least three times and check references carefully. Dedicate resources to research and development. Staff well at all levels. 2. inventory levels. Customers: make them see your business as a part of their own. and eliminate unnecessary activities and uncommitted people. Your most valued asset is the customers’ opinion of you and how they talk about you to others. Create a very clear mission statement of what benefit you provide to customers. 15. f. effective key executives. the work is challenging and interesting. Teach. 18. no complaining and no blaming of other people. “The key to leadership is for you to accept 100% of the responsibility for results. Provide a trainer until the new employee is comfortable in their position. Form strategic alliances at all levels. Reward everyone who demonstrates the highest attitude in dealing with customers. e. 11. d. Put a strong emphasis on sales and marketing. Appoint and support strong. Best people will have a high level of professional commitment. delight customers d. not criticism for mistakes. 19. Take the appropriate action to improve performance. 12. with no excuses. 16.10. and how you earn a profit. How the Key Concepts Translate into Action for Me. Organize your business to create the impression most conducive to high levels of repeat sales and high profitability for your most important products. Third parties: who offers other types of products and services to your same customers? Outsource and eliminate non-essential functions. When you reach d. 3. c. what would you build your business to sell to them? 21. Run the business like a turnaround. a. level of service. exceed expectations c. 20. Hire slow. performance and service. train and develop you people. Measure everything you do against your objectives. there is a high level of trust and support. Biggest problems will always come from someone who is uncommitted in some way. there is open communication. people feel like there are opportunities for advancement based on hard work and excellent performance. 13. what will be your next top selling products and services? If all you had was your customer list. meet expectations b. Develop and maintain high levels of commitment. . train thoroughly. manage professionally. Hire well. who I wouldn’t hire if I had it to do over?” 17. a. customers tell other people about their experiences. b. Develop an obsession with customer service. boss cares about employees as people. “Is there anyone working for me today. delivery time. Create greal morale in your organization. The Zero-Based thinking concept can be boiled down to this: 1. amaze customers. Provide outstanding quality. everyone understands exactly what is expected. Develop a caring work environment. 14. Suppliers: improve quality.” 2. fire fast. Assume that your current products and services will be obsolete in 3 to 5 years. The art of management is to grow in people sufficient self-belief that they begin to approach what they are capable of. Grow the people. 2. If you aren’t ACTUALLY charting the course. continuously stretch your goals for results. Business needs to be exciting. leave instructions to interrupt you for customers. Identify you most feared competitor and set your goal to beat them. . Set your goals high. Keep company. When people set a sense of direction. identify a variety of approaches. Unless other people are following you. Look at where the time and the effort are going. you can always massively increase sales. You must really reach out to customers and employees to do that. Talking to customers is key. or emulating someone who is a success. and give them what they want. Ideas are easy and common. and profit generation. But it is the customer base that is key to everything. Problems are not primarily political. The company has to understand the advantage of the product. you are NOT out in front. marketing is the real opportunity. innovation. Talk with them about what you think they should have. Selling is the transfer of the benefit and advantage of your product by the focus of the entire business. especially for selling. based on supplying your toughest customer or beating your competition. The leadership of business success is the most needed element for addressing the problems faced by society. If we were more economically successful. You should only do those things that no one else in the organization can do. they generally set it well below their capability. If you have the right product. and the challenge is to increase the rate of change. You have to offer choices. Identify your most demanding customer and set your goal to supply them. They are always too focused on the existing product. People never seem to recognize the value of existing distribution channels. You have to be doing something purposefully to achieve something. and make your marketing to the customer purposeful. Train employees to work with a purposeful customer focus. not by politicians. Compare your business to one you would like to emulate. You find out what they want (product or delivery).Jay’s Interview with Sir John Harvey-Jones 1. You can only reduce costs slightly. Focus on the customer. Measure. measure the results. Selling is not just getting rid of whatever you make. customers and competitors in mind. but give them what they want. Purposeful marketing: identify specific target markets. How the Concepts Translation into Action for Me. The Main Ideas The thing missing from most small businesses is absolute clarity about where they’re trying to go. They can also change from Monday to Friday. High leverage is always available on the sales side. People are different. development is difficult. Look at trends in your processes. and work hard to increase the advantage to the customer. so there is flexibility in meeting a wide variety of wants. You need milestones and rewards. which will tell you where problems are that can be improved. Business must be directed at some objective. Begin with clear objectives. more problems would be resolved. then you’re not managing. Look for things you can do better. The wealth to solve problems is created by businesses. Customer mentality: even if you can’t be disturbed. something you can boast about. with public praise. Address both costs and sales simultaneously. Look at how you would do each job. The first thing that only the manager can do is to demonstrate the priorities of the company. . Reversing the risk for both you and your clients in everything you do (so the downside is almost zero. 7. Being different. brainstorming with like-minded. Mining cash windfalls each and every month of your business. (Most people don't reach their goals because they don't have a clear idea of what they want to accomplish or. Networking. special. Testing conducted for phrases used in customer greetings in a furniture store showed that greeting the customer with the phrase "What ad brought you into the store today?" resulted in a 300% increase in sales over any other greetings!) 8. success-driven people who share real life experiences and shortcuts with you. 3. 9. if they do. they're not doing anything to reach it. investment. 6. masterminding. 5.Awanputeh 12 Pillars of Strategic Business Growth Build your foundational mindset on these pillars to build your business: 1. safe tests to eliminate dangerous risks and adopting funnel vision instead of tunnel vision in your thinking. 12. Using small. Creating real value for your clients and employees for maximum loyalty and results. and advantageous in the eyes of your customers and clients. Continuously identifying and discovering hidden assets and overlooked opportunities in your business. 10. Turning yourself into an idea generator and recognized innovator within your industry. time or energy commitment you ever make. field or market. Making growth-thinking a natural part of your everyday business philosophy. and the upside potential nearly infinite). Building your business on multiple profit sources instead of depending on one single revenue generating source.) 11. Engineering success into every action you take or decision you make. . 2. 4. Gaining the maximum personal leverage from every action. (Be sure to test your approaches systematically. Flow: what steps seem natural or automatic or unconscious? 4. For each of those: write down the specific tasks that have to be done to make progress. decide to whom you will assign those tasks. Yet it is the only thing that has brought progress. Don’t try to work with what you lack.John Dudeck – On Highest and Best Use Theory 1. beginning with senior management and working down. 5 cues to identifying strengths: 1. Problems: Lack of strategic thinking.” Defenses against change: Fear. Rapid Mastery: what do you pick up quickly? 3. 2.” —Charles F. change is unwelcome. Yearning: what do you feel drawn to do? 2. Do the same with the C list. Learned Victimization. 2. If you had a war between the existing habits and future image. What is it going to take to get you to that future? Think about your existing patterns of thinking and behavior. For each of those: write down the top three factors of success. Embracing change is the key to freeing yourself from the Web of Entanglements. B for Excellent. You may want to delegate the B list over time. work with what you have. . 6. Instead of job descriptions. The thoughtfulness and clarity of the focus chart will help everyone utilize their abilities to add more value to the process. Your skills are at the best they have every been. but FOCUS on Strengths. use Focus Charts when hiring people (or recruiting JV and mastermind partners). Kettering “By its very nature. Stubbornness. for the purpose of helping them understand exactly what they need to do and how it supports the objectives of the organization. Most companies shift from sales activity to fulfillment activity. 4. Working on your weaknesses is not going to make you great. Focus Chart Exercise. 1. Try to give them to someone who is gifted or excellent at that item. Create a positive image of yourself and your surroundings two years from today. areas in which we can be highly productive. always letting one or the other get behind and then trying to catch up. gain momentum or complete the item. For each: write out your key result areas. and process improvement. #1 problem of CEOs and Entrepreneurs = Web of Entanglements: Dated skill sets Unproductive meetings Busy work Appointments Obligations Lack of focus. Rank each individual task as it relates to you personally: A for Gifted. Low Self-Image. Your only job will be to manage the process and outcomes. daily activities or tasks that correlate to progress on your top three priorities. which one would win? What has to happen to make your future image compelling enough to cause you to change what is necessary? Focus on that future image to provide direction and motivation. Manage your weaknesses. C for Average. next. Main Ideas. Even positive change challenges one’s equilibrium — the relative balance one attempts to maintain every day. Satisfaction: what do you enjoy doing or completing? We all have 2 or 3 strengths. but you are stretched too thin. Beginning with the D list. Strengths Theory. 5. 3. Excellence: identify moments that you find yourself doing excellent. basic discipline. Share information from your chart with people who will be assigned various items. List your Top Three Priorities or Professional Responsibilities. 5. Every employee can do a focus chart. D for Underachieving. Perfectionism. 1. integration. clarity and fulfillment “The world hates change. 1. Assignments and Accountability. Develop a hierarchy of priorities for spending time. Other tips: Meetings. diagnosis and adjustment. Preparation-Achievement-Revitalization (PAR) System Segment each day into Preparation and Achievement chunks. and activities that are necessary to clear the mind or reduce mind traffic. details. Most visible to key stakeholders. and stay on track by knowing how decisions will be made. having co-partners. . to ensure they get done. Everyone needs to be able to communicate precisely over time.3.” A person’s Top Five should be related to their Focus Chart. no matter what. Status. List the 5 things you would most want to know that would tell you the most about how things were going in the overall organization. Strategic Decision Filter. and then create a plan for evaluating. Least disruptive to existing operations. have an agenda. 2. Let Variable Activities be squeezed around them. Potential Filters: Most likely to occur. Each person’s list should be different. those that are most important. begin to use meetings more strategically. “In the absence of specific measures. Variable Activities: everything else. Problem solving. and to identify the right people to do each task. How the Key Concepts Translate into Action for Me. Time Stacking Fixed Activities: Absolutely must be done at a particular time. Achievement Chunks: 2 to 4 hour chunk of time devoted to your top three priorities with a special focus on financial results and the creation and growth of key relationships. 8. and changing as necessary. monitoring. Desert Island Top Five. Then make a list of the 5 activities and their proportions as they should be. Set aside chunks of time (2 to 4 hour blocks) to work on top priorities. Quickest payback. Decision making: managing conflicting priorities. and definitions for every key concept or tool. Decision making. Triple A’s are a list of prioritized actions. Most permanent impact. Stop treating everything that comes to your attention as a priority that has to be done now. people will invent their own or drift and those measures may or may not be true gauges of what matters most or how well they are performing their jobs. Schedule Revitalization Days (ie vacation) to increase productivity levels. You Must do the Fixed Activities when scheduled. List 5 activities that most frequently fill your waking hours and their proportion. Determine in advance what the objectives are. and follow-up items that everyone in the firm has. it is a problem. projects. Select the top three or four filters based on your desired outcomes. tracking. initiatives. or to-do’s. Clarity and Communication produce Commitment and Alignment (C+C=C+A) 2. A firm’s leadership (no matter how few in number) must set aside the time for strategic thinking and the creation and execution of an operational road map. Schedule Preparation Chunks of 2 to 4 hours for better time management. To improve effectiveness. answering emails. department. phrases. implementing. measuring. List the item and a date for completion or milestone accomplishment. Preparation Chunks: 2 to 4 hour chunk of time devoted to handling paperwork. or job function. Assign an individual to create an agenda and solicit the input from those involved. Types of meetings: Informational. Compare the two lists to identify where you need to make adjustments. projects. Triple A’s: Actions. Never split the accountability for a project in two. Every organization has about 12 to 20 processes that need to be mapped out. 4. Quickest impact. Create specific goals and measurement for each person. Their time has to be nonnegotiable. how are we doing?. Never let Variable Activities take priority. using the same key terms. Biggest overall impact. schedule the steps that take you toward your goals. what outcomes are expected. Use the Focus Chart exercise to identify what needs to be done to achieve success. First. based on their strengths. Someone must hold the leadership accountable for making decisions. put into critical paths and improved. 6. They should reassemble quarterly to plan for the next 3 months. 5. Outsource if you lack strength in an area. Time Chunking vs. Treat only goal-driven action steps as Fixed Activities. Easiest to implement 7. If every person in the organization has their own way of keeping track of critical actions. Least up front costs. When a key activity is scheduled. that time must be nonnegotiable.Schedule key activities for specific times. It could also help lower-level employees see the key role they have in saving time for others. so that the key items get done. It could really help with prioritizing and delegation. . The Focus Chart seems like an excellent tool to me. Relationships 2. you end up with stronger weaknesses. High achievers generally revitalize for 4 days to 3 weeks. People are rhythmic. And we reach the point where we can no longer get more done by simply working harder and longer in the same manner we have developed.Jay’s Interview with John Dudeck 1. The complexity can inhibit our ability to perform. Write down who you will delegate to. and then work like animals for three months. Address how people deal with time by Time Chunking. Help people give up or manage the little things that make up their own Web of Entanglement. Knowledge Dudeck has 31 methods for coaching change for high performance teams. Different people work well for different intervals. and we need a system to support simplification. At best. Strength Theory. We always reach a point where no further growth is possible. Manage the weaknesses. List the tasks that go into making each thing happen. We need to simplify. People need revitalization periods. Identify people in your organization who excel in areas where you are weak. The Main Ideas Growth occurs in spurts. Habit patterns 3. you begin to break free from the Web of Entanglements. How the Concepts Translation into Action for Me. The habits we form to succeed can inhibit us. Work comes in bursts. train. and meet with them once a week. change habits. We need to prune our habits. hire or JV with someone who can address your weak areas. but don’t do them. Experience can be the problem: everything we accomplish or overcome adds a degree of complexity to our experience. our obligations and the complexity. Identify areas of excellence. Identify your top three responsibilities. The obligations we take on can inhibit us. Trying to work on your weaknesses puts attention on the wrong thing and freezes people. average. Take those stregths to genius level through most constant focus. One solution is to constantly review and set new goals. Focus on strengths and develop the areas where you are gifted. Use the Strength Theory exercise to help people focus in the areas where they can make the greatest contribution. improve support systems and expand knowledge. . By focusing on what is most critical. 2. Begin by delegating your lowest areas of competency and then move up the list. Support structure 4. More challenging goals may force us to pursue new relationships. given our existing knowledge and skill. and incompetence. At least 70% of your workday should be focused on what you do the best. Assign. making them less productive. The Web of Entanglement is made up of: 1. Look at the people you might acquire in an acquisition. you won’t know whether the new product or the new market is the critical factor to success or failure. Every year. How the Concepts Translation into Action for Me.Jay’s Interview with Tom Phillips. 1. You must resist the urge to do it yourself. Motivate by making agreements about common goals. 1. 2. 3. Capital. You can also get money from sales. but not both at once. look for a good value. Infrastructure. You provide a service to their customers. banks and vendor loans or customer prepayment. 2. Don’t overpay for money. Add new products in a very deliberate way – only one jump at a time. 3 types of newsletters: 1. Empower others to initiate and implement. People. look at acquisitions. Either add a new product in the same area you are already in. to suggest opportunities for what you could do. Publisher creates. The biggest leverage comes from your people. Hire the best and cry once. 2. not the doer. . Don’t neglect your stable of current products. In the long run. Venture capital needs entrepreneurs more than they need money. Products. Manage in a way that leverages your people as much as possible. People closest to your customers should make suggestions for business growth. 5. You need to be the leader. Leverage your infrastructure to save overhead costs. it pays to develop the employee. You may get tired of them before your customers do. Look at the best ways to leverage your capital. If you make 2 jumps at once. Talk about your company values in annual reports. because they often have the highest profit margins. Free newsletters. because you are good at generating content and production. Contract newsletters. They should not be the doers or micro managers. 4. Customer base. Entrepreneurs are organizers and leaders. When you buy things. 5 key resources. or add a new area using existing products. Use competitors as targets. 2. Someone pays you to produce it and distribute it to their constituency. you will learn from it. Emphasize the recognition of people. Even if you don’t complete an acquisition. You have to know the customer base in order to introduce a product. etc. Be the best leader and develop your employees to do more. Green sheets: daily report on company sales for each product. Improve on your products and product base. 1. Build pride. A top expensive employee will build more leverage for your company than a cheap bad employee. 3. solicits subscriptions and fulfills. Focus on your 5 key resources. Subscription driven. Then pass the item you are replacing down the chain. The Main Ideas All your key leaders should be involved in 3 areas of business growth. 3. Many jobs that carry pride pay little. grow your present products and services. If you are interested in a new area. Build symbols that have meaning. so that everyone is getting a new desk or whatever you are replacing. Know your customers. THE POWER PARTHENON This is another short piece of material. Main Ideas: There are only 3 ways to grow any business: 1. This is just a summary.” limited pre-release and so on • Communicating personally with your clients (by telephone. The specifics of how to develop and effective referral system or other concepts are in other material. How the Concepts Translate into Action for Me. Increase the frequency of repurchase — Get more residual value out of each client • Developing a back end of products that you can go back to your clients with • Running special events such as “closed door sales. letter) to maintain a positive relationship • Programming clients • Price inducements for frequency • Endorsing other people’s products to your list 2. Increase the number of clients • Referral systems • Acquiring clients at breakeven up front and make a profit on the back end • Guaranteeing purchases through risk reversal • Host-beneficiary relationships • Advertising • Acquiring qualified lists • Increasing the perceived value of your product/service through better client education Increasing your client retention rate by: • Delivering higher-than-expected levels of service • Communicating frequently with your clients to nurture them Increasing your conversion from inquiry to sale by: • Increasing sales skills levels of your staff • Acquiring clients at breakeven up front and make a profit on the back end • Guaranteeing purchases through risk reversal • Host-beneficiary relationships 2. Increase the average transaction value • Increasing your pricing and hence your Margins • Improving your teams’ selling techniques to up-sell and cross-sell • Changing the profile of your products or • Using point-of-sale promotions services to be more “up market” • Packaging complementary products and • Offering greater/larger units of purchase services together 3. higher transaction value. It is another cornerstone of Jay’s approach to growing a business: more customers. 1. . more repeat sales. so joint venturing is very much an educational and nurturing process. Seminar 25%. Then after they have done it you give them away to even take it to a higher ground. capital. it. Then you help them take what they are doing and turn into a system. Accelerate learning through interactive analysis. Success rates:Read a book 7%. The fastest way to success is to learn to JV by apprenticeship. You have to work on the mindset. expense or risk. Mentorship vitually 100% You have to begin by learning the JV mindset. 3. You acquire proficiency by experience. To be successful pitching JVs. When you have experience. etc. Then when you pitch people the upside potential without risk. What was the mindset? What was the execution? What did you learn? What could you tell others to do differently? What would you recommend? . no wise person would say no. and advances you to the next assignment. Audio tape 20%. If doesn’t even matter if it doesn’t work. Quote: “I have created a thousand marketing consultants. Being intimidated. without the experience to know it transactionally. When you have little money or assets and no reputation. talk. and so forth. I know the process and it is not a this or that. motivation and passion. enhances. distributions channels. intellectually. I have done professionals.Joint Venture Primer #1 1. corrects it. sales efforts. you break through the barriers. Then you figure out what their game plan is. 80 million small businesses have no idea how to do a joint venture. Being able to sell business people on joint ventures requires conviction. Then you analyze the results. Then you guide them. Everything you present is conveyed with the mindset that you have the ability to make it happen. Then you get the proficiency. It is a sequence. adjusts it. 2. you may push. Going after deals too big for you. The authority of a expert advisor conveys high certainty and confidence. Thinking you know it. You have to sell them on accepting the benefits that you can bring to them. If they have the certainty that you have insulated them from the downside risk. you may pull.” Common mistakes: 1. You must display confidence and certainty. then the only potential outcome for them is to benefit. Apprenticeship solves common mistake no. Then you break down the tactics. You have to have a concept that makes sense. Without the mindset nothing else will work. You may inspire. The Main Ideas. That is a lot of opportunity to educate and create opportunities. Then you either adjust it. Then you set them off to try it very safely and very very conservatively. you will be able to present with authority. Big companies universally do joint ventures to survive. 99% of businesses don’t understand JVs. If you can turnkey it for them. Identify the keys from the experience. just the same way that everyone learns to walk. Find their underutilized opportunities and make a strategic deal to help them realize more benefit. they can’t deny the common sense of working with you. Getting trapped with the theory. You get some experience as you go through the process. You have to acquire the skill of seeing opportunities for JVs. Then as they grow it you help them take it higher levels and you break down the barriers of glass feeling. The deals you have done can establish your credibility. You have to learn how to pitch the JV so that people agree to do business with you. you have to devise ways to tap into other people’s goodwill. Then you inspire them. 1. The first sequence is you ground somebody and you get the mindset. You perform an assignment. your mentor checks it. Then you help people figure out a strategy. The kind of joint ventures we are seeking: dramatically expand income with minimal time. You must begin with a certain psychology and strategy and refine it by experience. you have to convey trust. 2. 2. JA will be making money on the backend through ancillary opportunities. and what you are doing with a joint ventures is selling a intangible high ticket sale. JA likes to be forced to codify his thinking. 4. But then I think about it. you should start by asking for half the profit.” If Jay gets rejected. because I would wonder what the catch is. Most of the deals we will do are too small for him. ideas to expand your horizons. Build perpetual income streams. You can harness other people’s knowledge base.” Jay’s pitch: “I know that you do X well. If you own a business. We may uncover businesses in which JA has an interest. 5. 3. The key to everything is to have control of the deal. Realize that it is a process. He knows how to deliver markets that I am not going after. etc. where I do all the work. Business to business sales are very profitable connections. Use an existing distribution channel to sell additional products. what he knows that I don’t. Then you can sell your income streams or leverage them in other ways. You build your ability.” “And if you look at the best sales people. One person’s distress represents an opportunity for someone else. but I like you the best and wanted to give you the opportunity because I think we can have the most success together. Start with small deals first: 1. which will support you when you want to make a larger commitment to a really big deal. Identify underutilized assets and use them. 3. He knows how to turnkey it. 6. Use assets during a time of day when they are not utilized. but that you don’t have the Y that you need. Make second and third sales using existing assets. 2. certain. You can build an income stream. Why JA teaches the JV program: 1. Wins build your reputation 3. selling systems. I would probably say no in the beginning. they don’t hit the result they want and they abandon into that prospect representing that line and they get disenchanted. . learning curve. Case study examples: 1. License successful selling methods from successful sales people. Quote: “The average high ticket sales success takes nine to eleven progressive communications. smaller deals first. 5. and he DOES know something I don’t. are you willing to split the profit that I make with me? I can go and do this for one of your competitors. most sales people fail because they try it one time. Understand the odds. How can I get advertising and exposure without paying upfront? How can I get markets? JVs can lower the barriers of entry into any business. so he can also educate people about the controls and structure that are needed on any deal. If I am willing to set something up for you. But we may bring him deals that are too large for us. You can use it to enter a new market or boost market presence. If you bring access to someone. 7. Be in it for the long haul.Go for the safe. if I put controls on it …” Jay has a lot of experience. Build a stream of income from several things producing $500 per month. And it will enhance my profit. research. He is good at doing strategic alliances. Most people give up too soon. Use existing relationships to introduce a joint venture partner. You may come into contact with people who could be useful to JA. he turns it around with this pitch: “If I were in your position. whereas if you look at the great successes it is a sequential process where the dynamic of progression works to your advantage. confidence and psychology. You get to leverage the investment made by an existing business. 4. begin externally by asking: How can I get other people to open up new markets for me? How can I get other people to give me access to their products. He wants to pull out the key concepts from what everyone is doing and try to teach them and have everyone grow from their participation. The way you develop a passive income is bring the opportunities to people who will do the work and pay you from the profit.2. They don’t perceive the venture as a risk to them. I agree with Jay’s insight into teaching the JV process. (c) building multiple sources of passive income. How I Can Apply the Concepts to Myself. It involves learning to see opportunities in other people’s businesses. to get someone else to buy into your JV concepts. You have to instill confidence. you are leveraging their assets to produce additional income from both their business and yourself. (b) learning how to control the JV so that it perpetuates. because they are already risking their capital in their current business. through both integrity and competence. . In reality. I have specialized knowledge and a lot of experience putting together large business deals. and (d) using all that to prepare for really big opportunities. With that mindset. but I have not previously tried to negotiate for an interest in the profits from someone else’s business. You offer them an additional profit without additional risk. and building trust through both integrity and competence. the next step is to try some very small risk JVs just to build experience (a) pitching the JV concept. The JV Mindset is the second concept. Mindset from the first 8 reading assignments fell into the category of putting the customer’s interest at the forefront. It would be foolish to go straight for a really big JV deal and blow it because you didn’t have the technical experience to back up your ideas. JV success begins with the mindset JA is teaching. and benefit. etc. Denominate the benefits with a dollar value. Make the first statement a powerful. Go back to your old customers and re-emphasize the distinction of what you provided that brought them value. Increase the frequency of sale. The Main Ideas What are you doing that you are not getting enough leverage from? Recognize what you do. They are buying a result. Some factors impact the dollar value of sales. If you show them the reasons why it is in their best interest to come and buy with you again. then change it. They are looking to you for guidance. Superior mindset for the long-term is the client benefit perspective. Identify what they have done or could do with the dollars. a higher closing price. Most people minimize their activities instead of optimizing them. compared. and if they buy from you they trust you. If you look outside your industries. continuously. using methods inside and outside your industry. Optimal success strategy: plan to understand and incorporate maximum leverage. In any industry. 1. an outcome that serves them. Know the marginal net value of each customer. a higher closing percentage. help them recognize. Measure the results. “What about your business gives a greater advantage or benefit to your customers?” Answers like “service” or “quality” don’t mean anything. there are much more broad ranges of illustrations of the possible ways to do things. there are general ways that everyone does things. If it doesn’t contain the necessary benefit. Especially measure the steps in the sales process. Let your customers know. sell to them again or get referrals. you have an inordinate opportunity to program the new customer forever. identify how their friends will thank them. Everything a business does is a process. self-serving result the prospective customer is going to receive from your product or service. Increase the unit price of sale. the unique benefits you provide. you will get many more sales. Ask what the ad means to the customer. Where you are now is your baseline. Instead. Some factors impact the number of sales. quantified and improved. Measure the dynamics and compare the results different approaches produce. Determine how you can improve performance. Don’t drop what is working. Optimization: never do anything unless you can get the maximum benefit from your effort. Innovation is the bringing of superior value to the end user. When you start a buying relationship. change only the first paragraph. For direct mail. Everything in business can be measured by testing one alternative against another.Jay’s Interview with Tony Robbins. change only the first statement in the pitch. Advertising. . Sales pitch. Every process can be measured. build a broader base with several things that are working. then it doesn’t cost any more to get a better result. Test you headlines. Stop and ask what is possible. or obtain referrals for their other needs through you. Think about what could be underperforming: Sales people. Use a sandwich: combining half filling and half real tangible value. Change only the opening statement. Measure and analyze. For referrals. Three ways to grow any business: Increase the number of customers. Most people don’t recognize the opportunities for optimization. Your variance is the difference in different performance levels over time. For sales calls. Upside leverage: If you are already spending $X on something. by requiring them to illustrate their own understanding and techniques as they have applied them. JA learns from other as he teaches.to sell or offer other logical extended products or services under the confines of the companies. 4. Marketing increases demand for our services or products. I am in the process now of documenting the steps in each process. to build the client recognition of the benefits that they are receiving (or should be). You: what products or services have you purchased? What compelled you to buy? What about my desire motivated me? What was the outcome I was expecting? How did they convey that to me? What selling methods did they use? ALSO: make a point of inquiring of 2 or 3 people per day. document what resources they have that you could use. 2. There is a lot more work that needs to be done to communicate valuable concepts to clients. how do you market? How do you express it? What has impacted your selling strategy? As you learn from them. 3. Be very specific about the result you want. Cost. Critical factors of sales leads: 1. and contact them to exchange information. money and action to get their goodwill and attention? Are they in a position to recommend or endorse me? How else can I benefit from the goodwill I have with my customers? How can I reduce their risk or lower the resistance barrier to the use of my products? USP. Then go to similar industries. Matrix for innovation: process of looking at and documenting everything that other people are using. . How the Concepts Translation into Action for Me. Rather than measure every minor detail. you can lose patronage. personnel and advertising -. Residual value. it makes sense to me to measure just the critical areas. equipment. not competitive but with common elements that you can learn from look to see what businesses have customers they're not maximizing where you could basically create a business that would be a joint venture relationship with them.they only think of themselves in the context of "I sell this product" when in fact the very acquisition of that product means that a customer has to have pre-done one thing and then post-do something else to make that product work. Be specific. Conversion rate. 80% of your business from 20% of your customers. Unit of sale.If you always take the added profit from innovation. recognize and reward them. If you sell something hard like a product. Take everyone who is not competing with you (geographical or product market). Another thing I have in mind is measurement. Marketing provides the education of customers and prospects. I will look at how I can benefit my businesses by measuring the cost of client acquisition and data about client purchasing. People also have to be shown how to appreciate the added value. 2. or take advantage of the enormous investment and goodwill they have already made. as a tool for training and to see if I can add more focus and leverage. adding something soft like a service might create a more valuable USP. Most businesses I look at sell one product or service -. going deeper and deeper. I have viewed my businesses from a process standpoint for many years. Where does new business come from? Where could it come from? Who else stands to benefit from your growth? Who is in the position who already has must customers and has already spent time. A final thought is about USP. Ask a lot of questions. the enormous money they are continually spending on facilities. repeat sales. it also gives them an opportunity to be heard. please let us know (hours of operation. Recognize who is not buying. You will have new customers. not the product or service. then you are responsible to actively convey value to them. a vacation). You can generally make more money in an active business than by passive investment. Consider how you can add more advantages for the customer. Maintain the buying information for every customer or client that expresses an interest in your company or its products. other issues…) Identify everyone you have ever sold to. improve the relationship. they may appreciate your humility. The higher the cost of an initial sale. If you can’t call. etc. They want the benefit that is derived from the product or service. it is easy to see how a larger purchase will contribute to the best result. You can’t allow a customer to fall to the wayside. The best interest of your customer is full information. it is nurturing them. Commit to building great relationships with customers. and now they are not. In business. You must know who is buying. Easy to get back on track with a call or letter. 30-60% of people will upgrade.Jay’s Interview with Fran Tarkenton 1. so it is incumbent upon you. residual value. Look at business processes: a bunch of steps that result in a sale of a product or service. financing. If people aren’t buying the right product or buying frequently enough. and that it would be negligent of you not to let them know what else you can offer and how it will benefit them. increase the number of customers. If you look at customers as valued friends. Look at is as a disservice to them. Reasons customers stop buying: 1. Write to the rest. If they have been unhappy. you can make changes that cost little. and make more money in the process. Call the big ones. send a letter which says that you were concerned but unable to call so you wanted to check in to see if anything was wrong or if there was anything you could do to help. If you have a better alternative than what they came in to purchase. and improved. When you look at it in terms of results. 3. 3 ways to grow a business: 1. because if they were a client originally then they were getting the advantage you offer. and you need to make them aware of the full advantages available and the best way to get the best result. A bad experience. Find out who isn’t dealing with your company. Often the customer does not know.e. Then you have to introduce something else that they need. Upsell by letting people know that you have more product or services to meet their needs. measured. It isn’t pushing them. full education. People appreciate the communication. Have the mindset that your job is to help your clients get their needs met. compared. which could dramatically increase your profit. what they are buying and how often they are buying. If there is something we can offer or do differently to better meet you needs. checking up on their needs. You need to understand the cost of each sale in terms of advertising. Your clients are buying a result. You are the expert. purchasing history and follow through records. If you ask what you can do to make it right. 2. You have to maintain systems for customer creation and customer regeneration. all options to choose from. Increase satisfaction. and referrals. You may be doing them a real service by helping them initiate something they had been putting off. but produce massive gains. 2. You can’t get the maximum advantage without knowing all the options. the more important it is to increase size of purchase and frequency of .. increase the frequency of purchase. Far more leverage available in an active business venture. Interruption: you stopped doing the thing that was causing them to maintain their relationship with you (i. Each step is a process. The return on passive investment is based on risk. Maintain contact information. you can address that. 3. and sell the benefit to them again. increase the average size of transactions. The Main Ideas. opportunity costs. to get them to the next transaction. that can be identified. They no longer need the product or service. A customer is not the product. people who really want to make a lot of money need to look for businesses that have leverage opportunities. 4. the stronger your bond with them. When you get rid of bad customers. whether the initial sale is $100 or $200. Pay for customers and results. you develop connections. and you become the person setting the rules. Test your ideas. Instead of looking for passive investments of money. because you don’t offer what they really need. cycles and lifetime. 3. Then you know how much of the first sale you can give to acquire the customer. The heart of any leveraging activity is measurement. Customer data for knowing and contacting must customers. educate them to what their buying strategy should be. they are a person with emotions and needs. fall in love with your customers. Everyone wants to feel like they are a part of something special and enjoyable. Your strategy should be to maximize the result. Lack of innovation comes from repeating what your industry currently does. It costs the same time. There may be a time when you dismiss a customer: 1. Personalities clash and you can’t service them properly. It costs the same. The customer lacks an adequate appreciation for you. Purchasing frequency. We MUST look at customers and keep records relating to the key factors: 1. past present and future. If they are stealing from the well being of other customers that you want to serve. Find the best producing ones. 2. effort and money to send out a sales force to close 50% as 10% of their prospects. We can look at processes and measure costs and results. Unique Selling Proposition (USP) clearly conveys to the customer a superior benefit and advantage you provide over your competition. You have to understand the buying patterns of your customers. 4. It’s all about relationships. Increase quantity for more benefit. Turn your enterprise into a continuous experience and event. it can help your business thrive. Let people know that the constant experience is a part of your enterprise. This is a concept that I can sell to people to build a massive joint venture network. Go to your sales force. the more people will return. Increase complimentary products or services for broader benefit. The heart of increasing revenue is improving communication with the customer from the view of what is in my customer’s interest. Schedule a follow up appointment. When you become an innovator. To increase frequency of sale. How the Concepts Translation into Action for Me. try several things. Increase quality for better performance and better result. and make the appropriate deal to drive them to make sales and achieve the best results. An ad costs the same whether it pulls 5 responses or 50. instead of advertising. The more fun or stimulation or positive it is to do business with you. Try things from other industries. that there are regular events to which they may be invited. That should be ingrained into your master selling strategy. The more you recognize and respect them. Success comes from really being able to convey to the customers the self-serving advantage to the customer that comes from buying from them. that minimize risk and effort. Then you have to follow up with the new customers to reap the lifetime value of the additional sales potential. Begin by knowing the lifetime value of the customer. Instead of falling in love with your business. or approach your sales strategy. If they need to go somewhere else to have their need met properly. Happy customers produce more energetic companies. Concentrate on those. Program them to see the advantage of returning more frequently. Size and makeup of product purchases. 2. You owe it to yourself to get the most out of every contact you have with other people. rather than from the competition. How much does it currently cost me to obtain a new customer? 2. 3. . employ all the methods that work effectively. It is instant and evident. for maximum benefit to themselves.purchase. and retaining them by reinforcing my USP.Reaching new customers with my USP. . Increasing frequency of sale by education about my USP. Increasing size of each sale by education about my USP. Automated systems multiply the effects of your workforce. How the Concepts Translate into Action for Me. 2. 1. and your prospects. Main Ideas.quest to overcome resource constraints through a creative and unending pursuit of better resource leverage. Training multiplies the effectiveness of an employee. the greatest source of people leverage. multiplies the efforts of your entire team. Think about your resource constraints. Marketing multiplies the efforts of your sales force. it inspires your team. Borrowed money multiplies the effect of your invested capital.. How do you get the most benefit from your resources? What can you leverage by combining resources with someone else? . Mastermind groups multiply the effect of your intellect.. and because you see how the realization of your strategy makes an important difference in the world. An invented strategy inspires you. Leadership.” Definition of strategy as the “. This short piece is more about introducing leverage as part of the strategy of any business. because you said so.Paul Lemberg – On Change. It fulfills your vision for your company.” Some things that provide leverage: Strategic distribution partnerships multiply your sales efforts. your customers. “Your strategy is the direction your venture will take. " --Peter Druker "The significant problems we face today cannot be solved at the same level of thinking we were at when we created them.Kahlil Gibran "You are searching for the magic key that will unlock the door to the source of power.Walt Disney "The teacher. Help them through the same process you are going through of mindset. My favorites from the quotes provided: "The best way to predict the future is to create it.Michael Gerber 2. Then figure out how to help your prospective partners to identify with your vision. doe not bid you to enter the house of their wisdom. if indeed wise." -. How the Concepts Translate into Action for Me. but leads you to the threshold of your own mind.Quotations to Build Your Business By 1. and yet you have the key in your own hands.Albert Einstein "You don't build it for yourself.Napoleon Hill “Most entrepreneurs fail because you are working IN your business rather than ON your business." -." -. You know what the people want and you build it for them." -." -. learning and doing. . Main Ideas. and you may use it the moment you learn to control your thoughts. Get a clear vision of how to do a JV. ) Mentors are very helpful. you can effectively convert it to cash. Look for connections.000 advertising. Tie up each end separately. effort. Bartering advertising is a very high leverage opportunity. Incur debt or other obligations. (Buyout provisions in your agreement. Jay’s Mindset: a passionate belief that the businesses he was helping needed him to make these things happen.000 product for $10. He really had never gotten around to figuring out what step two was.) They have already made an enormous investment in capital. and you can even sell it back to the same company. from the product to the age of the person. which ensures that you gain the knowledge of how to do by experience. especially those which also have high margins. you may lose your leverage. Look at the continuum of life. You can trade $10. before. They may be selling in their niche already. If you just put the two ends directly together. but multiple repeat sales of multiple products. you can build a lot of profit division with the margin.000 to share with you as a JV partner. Consider the entire profile of the customer. the advertiser’s overhead may be only $1. They don’t know how to put thing together OR they won’t get around to either verbalizing or doing it. Once you have done one deal. AARP was invented by an insurance company. Finalize each deal with one end as soon as you are sure you have the other end also tied up. Capitalize using other people’s underutilized assets and opportunities. think through all the other avenues where you could apply those captive assets.000. and they will have $9. Look at what is logically related. so that they could offer insurance to AARP members. (Very risky. When you go to somebody and you can turnkey a deal for them and you do all the work and you put together all the elements and you connect all the dots that is very appealing. . (Low risk. In the JV context. You can even expand outside the scope of the newsletter. create a profit center out of it. (Example. and assets. In a JV.) 2. Not just one sale. Newsletter owners are an excellent example of a distribution channel that may be untapped with regard to all the products and services that can be introduced to purchasers. If you can tie up the rights to do certain types of promotions.Joint Venture Primer #3 1.) Create an organization to become your client. Look for companies willing to trade because the marginal cost of each product is low. you become the hub. Two kinds of leverage: 1. so that you have a preemptive hold on the deal. This also gives you a lot of flexibility to barter it with other products. If you or your JV partner barters or sells the product for less than its $10. then in addition to the first thing you purchase. Maintain the mindset that you set up each end of the JV separately for yourself. Tie something up. more than he needed the income. You show them how to take advantage of that investment. Main Ideas: Quote: “Step one: steal underpants. during and after. but if you look at the continuum of life and all the characteristics of their subscribers.) You have to make connections with other people. You make the rules in joint venturing. They can lead you through transactional experiences. Step three: profit. (You already have one end of the deal tied up. and have some assets tied up. you WILL have a need for various other products and services. If you don’t’ sell well or connect with others well. If you are in a certain situation.” Very few people are making all the money they want or using their resources to their best advantage. you can find someone that can provide even that for you. The key is to understand and control the elements of the JV. You don’t’ have to confirm a barter deal until after you have the products converted to cash. there is no limit to the number of other subject in which their readers might have an interest.000 price. 2. Consider all of the resources of each member of your network.Quote: “That the defining factor and monster success in the 21st Century is an organization or an individual’s ability to creatively collaborate with other people who have pieces of the puzzle they don’t. . You will be one of the few people who visualizes the entire process and knows how to put it together. How the Concepts Translate into Action for Me.” The network you build will become worth millions of dollars to you. Keep in mind that you are building a network of JV partners. Then you can orchestrate each end of the JV. The key is to control the prospective deal by making agreements with people that have underutilized assets. some of whom you can continue to build multiple JVs with. It will be full of JV partners that have the ability to do something as part of a collaboration on multiple potential deals. 6. Determine what products and services you could acquire by barter. Determine how barter can apply to your products and services. Save cash 2. customers. 11. Pay expenses with soft dollars 4. usable only at your business 5. in barter form. . You can acquire advertising. you could designate it for new accounts only. Print your own currency. 14. Identify appropriate barter community. Paying with your own currency also extends the time of your payment. Convert barter credit to more profitable uses. 1. Increase sales 3. where employees. 16. Home Shopping Network began with bartered items being sold. To prevent existing cash customers from turning into barter customers (thereby losing your cash revenue). [You could even stock products in your barter center. A certain percentage of your barter credits will not be redeemed. 8. 15. Expand advertising budget without cash. (Have an expiration date. Create a clearing house. 13. Recycle advertising dollars by requiring advertisers to spend money with you before getting reimbursed as barter. You can sell bartered products for cash and/or profit. for example. So the barter basics are important to understand. Consider barter script of your own. You can provide it to someone with a product or service to sell in barter form. Finance rapid growth without cash. How Concepts Translate into Action for Me. Turn excess inventory into cash without losing regular business. 12.Barter Basics to Think About One of the premises behind a lot of Jay’s JV examples is the barter concept. They you can convert the barter to cash in various ways. 10. This was a very brief piece of material that everyone should probably read.) 7.] 9. and/or others can exchange things. Barter strategies: 1. Main Ideas. Stockholder benefits can be paid in barter goods or credit. 2. Create a barter profit center. After you help them make a little more money. 2. 2. Begin by getting their trust. concerns and psychology of the audience and the audience’s customers. What you are selling makes the end customer feel like your JV partner really gave them something of value. Invite their input as to your conclusions on the numbers. you can sell them other more expensive and profitable products. above expectations and better than our competitors. Before you propose any deal. We will fulfill promptly to satisfy both you and your customer. Show them how to use JVs to bring products to their audience on terms that can only be obtained through a JV. 3. Help them to better. You have to run the numbers for them. so that you use the same form of communication.Joint Venture Primer #2 1. 3. Only run 4 commercials. 5. so that your audience keeps 100% of the first sale. think through what would move your audience to action. what would motivate them to action? It is not the responsibility of the joint venture partner to appreciate the implication of the proposition you are making. You can give away all of the first X number. we are giving you 100% of the revenue. Other than money. It is totally incumbent on you. If we fulfill and the product fulfills. 4. It has to perform above expectation. too. without risk. you can make the delivery. 1. ask for their trust to show them how you can both make a lot more money without any risk. and then you get everything on the rest. Show that you are doing it for the benefit of the JV and how you expect to benefit from earning their trust. After you have the audience and their customers as subscribers. You have another way to benefit. 1. Study the way they communicate. the best compensation you can get for putting together a JV is the endorsement of the media. whether or not you are compensated. Give it a test run. you have to consider the reservations of your audience and the reservations of your audience’s customers.) You aren’t doing the JV for the profit of the first sale. Newsletter business have an extremely valuable asset. Your ability to bring the necessary elements together is why you deserve the lion share of the profits from the ultimate windfall created by the JV. 3. so we won’t make any money unless they order again from us. We have everything to lose if we fail to perform or if the product fails to perform. opportunity cost. etc. they you have to demonstrate that it is worth their effort to clear your inventory. getting stuck with something that doesn’t work. We will give you six extra of the product. 4. Then explain that the real key is that the profit from the JV is a windfall. Turn each negative into a positive: 1. 2. They didn’t think they would get enough of a result. Sometimes. because the cost in the market is much higher. then run the planned 1000 commercials. But most newsletter businesses do not understand the possibility of JVs with their subscribers. Make sure that the offer to the audience’s customers makes the audience look superior to their customers. Put yourself in the place of your audience (not looking at your cost. They didn’t know if their customer would like the product. which is the goodwill of a market. Provide guarantees that are better than the guarantees used in their market. Main Ideas. 6. REALIZE. Make it look like the audience is doing more for their customers. Provide testimonials to prove that you and the product perform. You may be bringing someone else’s product to someone else’s market. 2. But you will never get there if you have not been sensitive to the mindset. in case there is every any problem with fulfillment. 5. You can give away a different percentage of the revenue for different circumstances. Get their trust by guiding them. Be transparent. 1. If you are giving product away. Take the resources from the JV and combine them with the resources of another JV to cross sell the two JVs. When you are pitching a JV idea. . They are worried about the consequences of failure: exposure. They didn’t know how well you would respond in fulfillment of orders. 4. perspective. They were worried about being in the middle of customer service problems. Add bonuses or accelerate the delivery of the benefit. You may be doing 2 JVs – one to use the media and one to provide the product. The assets and resources of their subscribers are much greater and untapped for JVs. You can come back with your own product or another JV and use that endorsement to promote a much larger deal. Upsell on your initial JV. when you see an event coming: For example. get the rights to the unsold tickets. and make a JV between your employer and your contact to sell to your contact’s market 2. or they may doubt that you can back up your promises. then the return on investment is limited. as part of a promotion for another JV or to create more opportunities down the road to sell to those people. but the first product did not fulfill it. Show both sides how to JV and save themselves the overhead that the JV partner provides as an existing part of their business. Every opportunity can probably be structured into 5 or more different strategies for JVs. or whatever a JV lacks. Show a company its weakness. … Go to them with the piece they need to create synergy. 2. because the return on investment is measured by the life of the resource. Athletes don’t become superstars without practice. 5. if a seminar is not sold out. Think of all the scenarios. . You can give them away at a discount or free. referring them to companies who can sell complimentary products to those people.3. 1. (For example: financial newsletters might reach people with billions of dollars in investment capital. then you can also acquire that sales force and create a second JV to sell a third person’s product. Others need value added information and products for their existing line. 3. Then emphasize how MANY TIMES they will be able to enjoy that motivating benefit from the profit you will build for them. Don’t hold back and tease people. Look for one-time opportunities. and you can’t become a JV superstar in your mind without experience and practice. Look for those that are the perfect vehicles to use as leads for bigger more expensive products and services. You can JV and bring the missing needed piece to the JV. Some have excess capacity they can profit from. If they are underutilized. problems. Anything you lack or don’t’ have time for.) Go to people that are suppliers. conceiving the JV and pitching the JV. you can get it. Lay out the details. Maybe they need a less expensive product. If you work for a company: 1. If you can acquire someone’s sales force for your own selling. it is all return. Create JVs where your employer provides leads from people who don’t buy from your employer. … Look for companies that are doing well at the stage they serve. You can afford to give some of it away. Those inquiries can be turned into sales of other products. Determine the need and find a way to supply the product that fills the need. You have to rehearse the mindset. Take existing products to people who trust you. There are many resources that companies have already invested in. and make a JV between your employer to sell the products on the back end to your employer’s customers. Using them requires no additional investment. under-utilization or other void. The investment they have already made can be used to make more sales. Some need new products that they don’t have. All companies have voids. Whatever you lack. Bring companies with back end products. Animate them with the sense of what is possible. Show them how to supply someone else’s product at a greater profit. etc. Pick the strategy that fits best for the company and your own profit strategy. Then paint the picture in terms of what really motivates them to action: the new Mercedes. You can fill the seats and take part of the sales at the seminar. someone else can provide. Others have a need for a service. 3. Then explain that it is not the money that is the primary benefit. so that they can trust you. it what they will do with the money! 4. Show companies what is possible. All companies have inquiries from people that do not become customers. They inquired because they had a need. Understand return on investment. You can sell them at a discount and keep some of the profit. They show them that you understand it in a way that can turn it to a benefit. the family vacation. I am the person who conceptualizes the JV. They are going to purchase. 4. but you have to work with people who are going to make the JV happen. Look at all the possible scenarios for a potential JV. Product and all the pieces of product fulfillment can be provided by me. 2. 6. All they need is a list of customers or potential customers that they can contact. Think long-term. If they are already spending to reach these customers. They could be a media company. or just a resource of names. How the Concepts Translate into Action for Me. pitches the vision and makes it happen. Be prepared. while they offer a product that you will provide. 1. Create and rehearse your pitch to the parties involved. the vision of the JV compares cost of acquiring customers to the benefit of the customer. Think of all the people and companies that can work as a primary audience for you. 5. there is little or no added costs. They have already invested in capturing the market. or by third-party sources. Then think of how to appeal to your secondary audience. You have to leverage the JV to make them look good to their customers. 1. Then look for all the products that you can create. either as part of the JV or coming from a second JV that I put together. 2. My primary audience is a person or company with a market. 3. 4. Their main concern is the impact of the JV on their relationship with their customers. 2. or that you can JV with someone else to provide. Walk through the steps of putting together the four parties to the JV. depending upon the frequency and size of purchase you are able to bring to them. Can you leverage your primary audience or your market access again and again to continue making sales of additional product? Can you build trust as a foundation for larger and more frequent purchases? . Select one or two. They are going to deliver my message to the purchasers. so that they purchase. Create your vision for the JV. 3. People who just passively theorize but don’t take action aren’t worth the time. by my primary audience. There are four parties to any JV. What is the cost of fulfillment? What is the return on investment for the product? Select the most profitable products that fit your vision of the relationship between the primary and secondary audience. so every dollar they make is return on investment. To appeal to a provider of product. This is what make the JV appeal to them. Then think of all the ways they can reach their customers that makes them look good. Put the JVs together. My secondary audience is the customers of my primary audience. The provider can offer you part of the value of one or more sales. a company with existing sales data.There is a lot more money in JVs than anything else. or many other things -you have to follow through and make sure that performance occurs. .but partners may not understand marketing. because the benefit to your customers is the motivation But this is the kind of money you will earn if we are successful. and then bring together the best product with the best benefits. I want to give you my vision for something else that you can provide Give a comparison of your company to what else is out there..Joint Venture Strategy Consultation (Most of my notes for the audio – I recommend listening to the audio) Track 0101 A lot of people put all the effort into signing JV contracts and then sit back and think the dollars are going to roll in based on the partners. referral routes to your end user How are you going to get the relationship or pay for referrals? Before you pitch. products to the customers Asks owner to identify what some of the benefit are that have been provided Then says. Asks what was the owner’s motivation to build the organization Identifying keys to relationship between company and customers/members Then recognizes that company has brought significant benefits. And let me ask you what you might do with that stream of income. . If you had this kind of additional revenue. which I think you will because we have really created a powerful marketing and support program to make this happen.  systematically offer turnkey sustaining program  to all current customers and past customers (because they may just need something else to buy for relationship to continue)  own that niche for people who want (1) something of value for their customers and (2) an additional stream of income target top 1000 companies versus focus on dream 100 companies? (combination: low hanging fruit that is easy to get short-term. This is what you are trying to do as an organization. these are things that you might do with that money to build your business or realize some other dream that you have. We are looking for long-term relationships with organizations like yours. website. then we provide the turnkey marketing to reach you customers by email. dream relationships long-term strategy) STRATEGY ISSUE #1: who are you going to target? (identify individual companies) Identify the prospective paths. And this shouldn’t be the motivation. to show how it is something that the company’s customers would really want. publications. -you need to be able to control it!!! Track 0102 Hot Seat participant wants to move closer to affinity groups Take undervalued business relationship of a membership organization by branding private label services More credibility More sustainability More profitability and cost savings Track 0103 (Pitch by Hot Seat company getting the consultation) Track 0104 JA feedback begins on strategy and sales pitch: You must begin with a Master Strategy: Most compatible targets: Associations. Then JA talks about the revenue to the company. And the byproduct is that your organization gets in income stream based on what your customers purchase. you have to ask a LOT more questions (see JA’s pitch below) Explain the commitment before you ask for the commitment (JA gives his shot at the pitch) Begins by recognizing what the organization has accomplished. that understanding is there. and we provide that systematic strategy to make an initial contact with your customers and then follow up to support and continue marketing to anyone who has not subscribed … Then testimonials provided. direct mail. etc. businesses of any kind that have continuous and meaningful contact with target audience. Track 0105 Then JA talks about the financial and other benefits to the customers. has value to them. etc. customer service. Organizations. affinity-based companies. to create for you a customized program tailored to what is best for you and your customers. and here is what we need to know about you …” Storyboard the presentation and analysis JA just did. Most people don’t buy on the first contact. say “Let me tell you the questions you should be asking …” and “Here is what sets us apart …” “These are the things you need to know about us …. sample your product. Let them know what you are going to do to turnkey it. transcribe it. producing income to the target Strategy: show them what that revenue will allow them to accomplish (company or personal goals) Strategy: but that isn’t the reason you should do it. I would like to know more about the people that you serve. and we understand that and have a program and a process to achieve the success that other programs and other companies lack. 1. 2. customized as they would like it Strategy: their customers will buy in over time. you are not going to get a strong response. So if you only pitch something to them once. their end benefit. you will definitely see the kind of numbers we are talking about over time. and how you are going to make a benefit for their client that their client will thank them for bringing to them. Strategy: here is what we think the issues and problems are. I would like to know how long you have been able to sustain your current customers. when other things haven’t?” A. so you can use it for yourself. but they never lose control Strategy: let them know that it is a sustaining process that will fit their customers. Send letter. you can kick us out. 3. Track 0107 3. most affinity marketing doesn’t bring results because it is not part of a sustained program. make a script for yourself to use. so if we need to cover the cost of changing service providers. I put myself in your place. Most people buy after 7 to 9 contacts. Track 0106 Don’t even work on the tactical until you have a larger strategy that it fits into. we will do that … Realistically. And if we don’t perform. 1. it should be the best thing for your customers (their major concern) Strategy: and I am going to prove we can do it by giving you these customers who can provide testimonials. You have to really paint a picture of the benefit. Take what JA has presented. It is a process. So I would like to provide you with a list of our customers … And I would like to show you the marketing program that we have prepared … And you can even use this marketing to grow your own client base And you have probably used this kind of service in the past. Strategy: figure what everyone else is not doing and do it. You have to let them know what effort will be required of you and them (ie how long the marketing system requires) before you will get the anticipated sales results. And you can turnkey this and offer an extra stream of income on a similar basis for your customers to offer to their clients. 2. etc. and your customers probably have. I would like to know the certainty that you can deliver. Instead of skirting the issues. Because we set this up. That is why JA marketed to that concern above others. are we right? Strategy: demonstrate that you have covered all the bases. not an event. But if you use the sustained marketing program that I have provided. Tactical: the presentation Strategy: what is the target’s primary concern? The benefit to the target’s customer base. so that your members benefit first. and you benefit second. and I thought what should you ask me. Making those points answers the essential objection of “why should this work. testimonial.And we have an agreement where we spell out exactly what we are going to do for you and how you will be paid. Incorporate the ideas into your direct mail and other marketing. Trying one thing won’t do it. Because very few things will be accomplished with a single tactic. what should you know about my company before you make a decision on this. Leverage with people that have already created relationships improves the return on marketing and shortens the time to acceptance. take the risk and effort out of it for them. . You will achieve nothing if you stop after one communication. follow up call. They won’t automatically associate the achievement of their goals with the achievement of what you say the results your product produces. and we only benefit if you are satisfied and we continue to earn you business. Once you set up the people. Next: how to buy Next: how we work (which fits with how to solve the problem and buy. the logical conclusion is that they buy. At top: major issues of interest to your target: “Four biggest problems faced by …. If it’s your primary business. and they can understand your explanation for the failure or problem] Next: let me tell you how you solve that. you have to have the kind of integrity which involves bringing value to the end user and make your network look good and also share in the income when appropriate. which allows you to control an endless distribution channel. you let them know. Three reasons that x problem …” [They have probably had one of the problem. You have to communicate with them that you are going to do it for them turnkey without taking away their control. Then figure out the sequence and tactics to fit your strategy. Who implements? A. Your distribution channel is underutilized if you don’t build it to bring additional products. To maintain the best relationships for your distribution channel. If someone wants a product. we can bring you other quality services. we are so well connected. . because they are going to keep doing what they have already been doing as their primary business. You drive it.Picture funnel. why not find a provider and be the key to bringing that product to your market and other people’s markets. Track 0201 Make sure that the tactics you are using support your larger strategy of who you want to ultimately leverage and who you want in your network that will build and build the success you want. then you do it. The company that sets up the strategic alliance. It won’t be as important to them. They won’t execute effectively.) … at the bottom of the funnel. without exploiting them. making you the logical choice. but it was presented with the wrong structure. Think about all the different levels which can be structure for JV. I wouldn't take the time to listen to it. distribution channel. What do they do with you? What do they do with others? What gaps exist where you could identify an opportunity? 48:00 Dentists and other professionals offer huge opportunities. but here are my notes with time references if something sounds interesting to you: Call 2: 2:00 Where to start looking for JV opportunities: in an industry where you are familiar. 57:00 Rita describes the bio/profile that she provides to clients. It started out with a bit more content.Okay. Who do you approach? People you already know. 9:00 set up Deals presented to JA need to be clear enough for immediate decision. I recommend just reading the notes below for 1-3.Do JVs for your own business 2. Easier to bring a product to an existing market Problem with getting involved with a startup is lack of positioning and capital They don’ t have ability to do test marketing to measure what will work Linkedin. here are the reviews of the first four calls from the Joint Venture program.Pick up deals from JA Keys to attractive JVs Person has a market.com Networking resource Good introduction . Deal-making is a cumulative science/process. many products offered through JVs 22:00 Example: teaching business seminars in Asia. created network of Asian companies available for JVs with American companies looking for opportunities in Asia. There was a good deal.put in profile information that markets you as a deal maker Services businesses are easier to scale Manufacturing requires more work to affect changes Call 2 was a little bit better. and they are looking for a product Market can be client list. ask. I would not bother to listen to the first teleseminar from the new material. 46:00 To find the opportunities. be sure to clearly define calculation of costs and profits.com Example of providing large number of products (upselling opportunities). etc. but may not be skilled at business. So far. or solve their problems?” Profile each of your clients. 14:00 Example of credit card processing opportunity. and then got weaker. then build a referral network. I have listened to the entire 90 minutes and this is all I produced in notes: Call 1: JA's JV program: 1.Finding deals for JA 4.Find JVs for others and take an interest 3. 49:00 When entering into agreements. . because they may be very good at what they do. referral network. meet another need. 21:00 Example: godaddy. people who are easy to get to. She lists both professional qualifications and business experiences. if the notes hold something that interests you. Call 4 might be worth listening to. Many opportunities to provide a benefit to their business and financial circumstances. what other things do they need in order to be successful. “Of the people I do business with. you may need to bring someone in to help you Call 4 had a lot more meat to it. etc. it may work for you. Look for people who have untapped demand for their product. Here are the notes with approximate time marks.Like call 2. But once Spike starts interacting with the group. What are long-term goals? Ongoing discussion of people’s ideas and reactions from Spike Understand the market Understand the profit Sell your knowledge. Call 3: 3:00 1. expertise and relationships 1:07:00 problem of checking records (profit verification) If you don’t have the expertise. 11:30 Either bring an opportunity or a solution to a problem. employees. cheaper. 24:00 Look for market validation. revenue. 28:00 Example: a caller analyzes one of her opportunities at various levels. Startup: little or no capital or revenue . If it is working in another location or industry. the call loses most of its value.generally disqualifies the opportunity 22:00 Suspect: not a startup. has most of the following: Capital. 3. market potential Underutilized assets Underutilized relationships Adequate margins (growth needs to lead to increased profit) Company leaders willing to look at doing it better. Sometimes you can borrow from what a competitor is doing successfully 26:00 present ideas in terms of the values that are important to them. endorsements. growth (attitude) If you have to convince them to consider. Make sure that the parties have the ability to fulfill. distribution systems. 2. you need to also qualify them. Pick the right deals with the right people. 6:00 People will be qualifying you. Call 4: 19:30 First questions to ask to identify JV opportunities What other non-competitive buseinsses serve my target market? What other businesses serve your target market? Identify them for What additional products or services to my customers want or need? 21:00 Qualifying opportunities. Good if you have access to organizations and affiliations within industries that JA can bring a product to. It should be the first issue raised with a prospect: What is the cost of acquiring the client? How much revenue does each client generate from the initial sale? What are their repurchase patterns and value? What is their referral value? The answers help identify the opportunities that make sense. call 3 started out alright. Look for under-utilized and under-performing assets. look for people who need the things to which you have access. 18:00 Measurement is extremely important. established in business. Could be customer lists. If you have access to other people’s products and services. established infrastructure. 4. plus: . Trust your network. Look for people who have a need for what you do. faster. assets which can serve multiple purposes simultaneously that are not being utilized to capacity. they fall into suspect category 25:10 Setup: all the above elements of a suspect. Easier to contact people when you analyze your network and look for opportunities there. but not yet a setup. Who are the people that are trusted by your prospects? Look for access points. space. and ways to leverage the prospects' trust of those people to advance your opportunity. 55:00 opening lines for comments You can get some information from Dunn and Bradstreet about companies To figure out how to put opportunities together. directability If it is a one-time opportunity. Either get paid up front (in which case you may get paid before you give the idea) or negotiate terms for continuing compensation. Only give them a piece of the idea. charge more upfront. If it is a scaleable and sustainable opportunity. That is the basis upon which they are going to share income with you. Fees need to take risk into consideration. Consider profitability as an indicator of likelihood for success Once you develop a reputation. because one has a resource that can benefit the other. You are going to look for companies that you can match up with. It is about the revenue over time from the client. Cost of fulfillment. If you are offering to create enough value. Professionals and service providers: they have an expertise. If you bring expertise or access. then they can’t cut you out initially. capability. or sets of companies that you can put together. Consider the cost of servicing additional clients or servicing existing clients They need to have the capacity to increase activity and increase profit Margin represents the amount of additional revenue from which you can ask for some 43:55 Also consider strategic impact. Risk of liability. 49:00 Relationship. 51:00 Mindset: have an “other person” focus. Do it for your own business or as a profile of another business. Knowledge. Also consider their mindset for: accessibility. If they treat you well. people will begin bringing deals to you You must have criteria to evaluate which ones you will look at and accept 37:00 Workable deals and margins Next stage: you develop a proposal of some sort They need to understand concept of incremental cost and allowable cost How much money can they allocate to add an additional client? They know what they spend on new clients and what the return per client is They need to understand back end sales and cross selling It is not about the initial transaction. you can get paid more on the back end. Small cost of fulfillment can be done easily. and they can’t prudently cut you out. Microsoft also includes a lot of templates. 1:13:00 Good industries for opportunities: 1. Anything online: there is already a lot of JV activity and affiliate programs 2. look at what other companies in the industry are doing that is similar and applicable to your customer How do you avoid having a customer steal you idea without paying you? Work with people you know and trust. That way you continue to have value.They operate in an area of need They have a small decision-making group (rather than layers you have to work through) The deal has a significant upside (per your own criteria) Limited or manageable downside Organization has a bias toward taking action (Jay has little tests to determine this) They make little requests. 1:23:30 Homework . share more. then ask when it will be available. If you are putting your reputation or brand on the line. Expertise grid You need to make a very long and useful list of your resources and contacts. Media companies: lots of unsold advertising can be used in JVs 3. More investment of time and other resources needs to have greater return. regardless of return. you can have them sign an agreement. Does doing this deal help bring us closer to one of our personal objectives? Consider degree of control. Your presentation has to convey the benefit to the customer. but lack marketing “Business in a box” has a lot of legal templates that may be useful. you have to have control over its use. If the get it done on time then they have a mindset of action and execution. Why were they successful? h. you can be prepared to react to anything that is raised. Additional Points: 32:30 a. 14:00 Successful companies are risk averse. 37:50 d.most companies can benefit from this information Read Abraham 101 for mindset Continue developing your prospect list Call 5: 13:00 To prepare to present a JV. cultures. ways to objectively measure it. How will they be managed. What is the potential strategically. Why were they unsuccessful? k. Have a clear goal in mind. below. . 3. measures are being proposed to prevent the same unsuccessful outcome? 29:30 You don't have to have the answer to each question. From obstacles comes opportunity. Consistent with the goals and objectives off all parties 19:10 How do you prepare? Anticipate and prepare answers to questions and objections. you have to understand what the concept means for all parties. industries. 34:10 b. 21:10 Presentation Development Questions: a. or industry 4. Add your own questions to Spike's list. If you interview people. Look for partners with compatible goals. When you don't you can ask others to help provide answers. You have to have it internalized and be able to convey it. avoided. You have to foresee how to allocate and manage risk. What safeguards. and personalities. Marketing is about conveying value. You have to be committed to doing the homework and applying what you learn. corrections. develop your own expertise. 40:30 e. you MUST complete your self-survey of who you know and potential opportunity connections that you have. you may find opportunities just through bringing up the relevant topics. talking to people in different industries. 41:50 f. 43:50 h. organizations. have done similar ventures and been successful? g. Create credibility and instill confidence. or solved? f. learn and teach.) Call 6 To find JV opportunities. organization. tactically. JA uses Socratic method to question. develop your own network. Quantify the answers and be as specific as possible when appropriate. market. Four critical components of getting someone to say "yes": 1. What other companies. that can be applied to JVs? (Just stay informed by reading. internet resources. Manage the relationships AND the venture. They may have these questions. 2. What other companies. 36:10 c. Ask questions and listen. and effectively manage it. have done similar ventures and been unsuccessful? j. Even if you don't have the answer. Opportunity for all sides clearly understood and realistic. They would be doing it themselves if it wasn't an obstacle for them. even if they don't raise them. Where are the risks? e.Complete the relationship. markets. Risks to all sides understood and considered manageable. organizations. 42:50 g. Where is the opportunity for each party? b. financially for each party? d. What is the benefit to each party? c. 46:50 open lines 1:08:00 How do you find out what other companies have done to be successful. Validation exists in another company. contact someone who might know. so you may want to address some on their behalf as questions they should be asking. What measures are being proposed to assure the same successful outcome? i. etc. but you can even raise it to the JV partner and tell them you don't have the answer but that you should work to find an answer before you go forward. markets. etc. Sales is about conveying trust. industries. knowledge and expertise grid Read 20 marketing mistakes . com (business formation resource example) Call 7 Profitability and probability (pick deals with high probability. Performance based compensation 3.) Types of deals/Case Studies a. Consignment j. Reciprocation g. food. Unconverted competitor leads (already spent the money on marketing. Host an expert. Limo companies: referral relationships for hotels. Getting control of a product or market h. Real Estate Agent: referral relationships for landscaping. Commission c. asset based financing. Priceline. Add-on products and services b. Start with people who can access the people you need. New profit center Types of deals a. pool service. You can meet people very quickly at these types of events. Don't use email to make the first contact. Ebay. Publicity and Goodwill 55:30 open lines 1:02:00 Opportunity mindset: so many opportunities: go to a conference or show locally and just meet people and ask them about networking and business opportunities. Start with people you know. they may just need someone to come in and take the lead. Apartment rental: referral relationships for furniture rental. Methods to address Risk Aversion: 1. Unconverted Leads f. Crusher waste and bike trail (cost savings. 2. Cross promotions c. junk removal. etc. organizations. or look for opportunities to teach what you know.) d. using waste examples) b. etc. e. Expert/consultant networks (refer to each other in network) h. Factoring. associations discounts k. Referral network. Expertise" materials (foundation for finding deals and identifying correlations for opportunities) Identify a relationship. Don't propose to make global changes to their business or full rollout without some validation.) d. The Abraham Group Consulting Services Ways to get paid a. There are always companies that are looking for ways to expand their business. moving. and then use the Development Questions from the last call to formulate a plan and prepare your presentation of the JV idea. Revenue Share (Make sure that contract contains a mutual performance provision.) 1:14:00 homework: Read case studies for examples of JVs and other business case studies Fill out your "Relationships. moving. Amazon: capture names . their business. Use email for people you know well enough that they will give appropriate attention to your email. m. (You can share opportunities for your business. Equity e. NVinc. Barter f. Executive Art consultation/broker (sales commission from artists for selling their art and fee from businessmen for decorating their offices) c. legal settlements g. etc. Referral systems and networks d. restaurants.Start-ups involve more work. because that is part of reason everyone is there. another product. Knowledge. Flat fee b. If they have the right resources. Test your ideas with them. keep the name and info and determine how to profit from it. etc. Soft©\marketing g. Corporations. seminar. f. workshop l. Bonuses and product/service bundling e. Consigner services i. Have a bias toward action d. have a plan and work it i. and a positive expectation j. give them control of the economics Many opportunities to use underutilized media or advertising resources. where you bring tangible added value to someone else or the catalyst that turns the concept into money. Focus on the present f. Be flexible c. Many opportunities to take someone's inventory and place it.000 of printing. The Long Tail Call 8 If the risk is significant or the money involved is significant. can enlarge it or use it in other markets) d. Created the market ii. had Tony Robbins promote his $15. eliminate risk 4. Identify products and services that can be bartered. no new investment needed) b. Step 2: utilize it for another JV and collect the revenue. how. JA then sold the printing for cash. can use it again in other businesses) c.000 seminar and filled it. (No other participants wanted to go. Used the list to make money. an innovator-ask why. Use leverage to your advantage k.) 32:10 JA presentation. Brand sustaining or enhancing (for JA. direct (tell them how to buy from you) Recommended books: Freakonomics. Existing marketing g. a letter of understanding or other short agreement should be sufficient.000 in printing. The Wisdom of Crowds. Became the toll booth Criteria for The Abraham Group a. Look at everything and ask "Where's the opportunity in this?" b. (ie. Leverageable (once it is set up. Step 1: tie up the media or other resource. JA used the marketing for which he had bartered to sell for $10. Most lucrative deal: JVs with people who were credible with large audiences. Paid them for the names of the 95% that they did not close. shared revenue with Robbins. Identify people (like newsletters) with credible relationships with markets with identifiable interests. and that those resources were available and underutilized. JA was able to see the resources that companies had invested in to develop credible markets. Most creative deal: Found a company that was only selling 5% of leads. Sustainable e. educate. show people the certainty of the deal 2. The Culture Code. particularly when barter with one person can be converted to cash by sale to someone else. Understand marketing is the life force of all business achievement e. Scalable (once it is set up. JA's simplest deal: showed a business that did printing but had terrible marketing how to get $10. Be tenacious g. Identify traffic areas where products can be sold. Set-up (established resources. Have certainty. show that it is all revenue that they would not otherwise have 3. Blink. There is a logical order to things.000 of marketing in exchange for $10. new income could be generated with minimal investment of time and resources. Be pragmatic-don't take unnecessary risks h. use appropriate contracts. By accessing them. Likely annual return to the Abraham Group in mid©\six figures 42:50 The Entrepreneurial Mindset a.i. On small deals. what if 1:01:00 open lines Marketing=engage. making millions with seminars. Before developing a ¡°franchise¡± be aware of franchise laws in your state. where locations take it on consignment and keep a share of the sales revenue.) The greatest ability to make money: see possibilities (vision) AND be able to compel people to take action . it has to fit well with his brand) f. Joint Venture is a long-term relationship to generate increased incremental income. Open lines for specific callers missed previously. faith. Become an idea-generator. Must understand: 1. Test it. Get who you need. show order takers how to upsell Increase productivity.. Get paid on income. Call 9 Ideas for approaching business owners: "What would it be worth to you if. transcribe it. Same concepts apply. monthly fee. start with a mentor. Get a transaction fee. There is going to be some revenue that is the easiest to get. you can make revenue from it forever. .. Audit your available resources. give them the ability to assess what you do. teach ideas License access." If not interested. customers. savings. Leverage it on sale of the company per contract. Add internet. brands. assets. If it works. a new sales angle.required to turn it into revenue. Come up with a new bonus. where you have contacts. but small enough that you can deal with the owner. take a share of the increase in revenue. Toll booth concept: put yourself in the middle of people that are trading. Start with ideas that are the easiest to monetize. skills. List ways to do it. use it as a sales tool or product. If you want to learn this.someone wants to access a specific distribution channel. license things they don't even know they have Insert ads in their offers and communications Leverage endorsements Buy the rights to a recorded program. Own their internet.? [describe scenario that sets up your pitch]" Example: ". efficiency. keeping as much as you can. you bring another form of marketing and take a percentage of the revenue simply from the new marketing concept. Get clear on what you want to do. sales forces Perform functions (like reactivation) Add products. markets to you. create a front or back end. etc from the situation on recurring basis: per sale. Don't compromise yourself by doing less profitable deals. distribution. Company should be big enough to execute. Get what you need. Othersie. per lead. interview people. ". sell the idea for part of the cash savings] Pay people a small fee to sell your stuff. Do it through your company. and you are controlling the direction. you just arrange a different mechanism to control the process. Starting from scratch is the worst idea. Start with companies that are already set up. processes. Bring the idea and hire what you need. your employer or someone else's company. It is possible to make any idea work. you are wasting leveraging your own assets... but they don't have the expertise or resources to do it?" Now you have engaged them in a conversation. Start with company that uses only one form of marketing. royalty. Start with that.. Look for companies that are weak in marketing. Once you have the product. Prioritize. Win/win.. Then start getting the low hanging fruit. [use points as an expediting fee (they use up the points and you save money without needing to sell anything else). Buy rights. Well. Bring your passion to make it happen with other people. per appointment.) "You know how when . Someone who can help you understand the ideas AND turn it into action and into revenue. buying and selling. tangible value or benefit to them or another. products.. profits. doing business. usage. productivity.. barter systems. record it and use it as a sales tool or product. a new headline. clients. other types of fees. Start with what ypu know. but if it is going to be difficult or risky avoid it. "Who is your closest competitor?" 10:00 effective elevator speech (quick pitch: concise. etc. what I do is ¡ [make your quick pitch]" Consider who is in a position to refer opportunities. If you like it. Example: dead airtime on radio. and commitment to action. Focus on your strengths and doing the things that are the most focused and most productive. Position it on a standby basis. Begin formulating a vision of where you are going. (General manager) 2. and then subsets of those strengths. or create? 23:00 Open lines Missing from Dudeck interview: PAR time mgt (Preparation time.mediuscorp. a. find a specific industry that needs the ideas. you have to take all or your notes about who and what you know and establish a clear vision that you can articulate to someone else. assets. and understand how to get there. Restoration time) 4 hour blocks for Achievement time (maybe work up to it from 30 minute blocks) Achievement time is focused on most critical things you need to do. or negotiate some structure. and how you will split it. Reflect on where you started and take pride in where you are b. Who will benefit from your vision ii. Some people sell it for $10-200. see who is doing the same thing and might be open to additional methods of leveraging their assets. StrategicCoach. Then you can find what you need to change. determine the benchmarks to measure your progress. assets. How can they help you in return c. outsource. i. supplement. strategy. Give evidence of your ability (worth their time to deal with). start by looking at online newsletters.com also suggests focusing just on your strengths. see who is not advertising. ensure. Achievement time. ¡°Strategic thinking has two major components: insight about the present and foresight about the future. What is the most important/strategic thing you can do first? ii. Is this program a mentoring program? Or is mentoring going to continue after we take the test and get certified to bring deals to JA? Is JA just going to keep upselling us after we get through this program? "The Windfall Profits Paradox" article by JA. Call 11 Don¡¯t wait to become a master of the concepts before you start using them. What do you need to prepare for. unsold airtime is merely a lost resource. resources." T. currently. i. energy. stop. What resources.14:30 open lines If you want to get into newsletters. Track how you spend your time. or guard against? v. Irene Sanders tells us. Call 10 It is time to take what you have learned and put it into an actionable plan. What does success look like and how will you measure your progress? iv. what you need to get started. Instead. continue. Do it once.com/] On the Dudeck audio: Strength assessment: diagram strengths. 30:45 back to Spike (for lack of questions from callers) Don't resell JA's stuff off the shelf. At some point. Otherwise. Sell it: No downside. 40:00 open lines again Problem: person is running into JV opportunities where people want money up front.¡± [$29. In "Strategic Thinking and The New Science. and creativity. What resources. passion. and create a product or work with JA to make a customized product for that industry. You have to get to the right person. Reaching Success requires of vision. 4. and then recuperation days. or strengths do you need to obtain. Helps for positioning and credibility. Dudeck Book: ¡°How to Get an A in Life. Start detailing the key steps to turn your vision into a reality.¡± You have to be able to see something beyond what exists today.95 at http://tdg. the relationships and resources you need to enlist. You have to start trying in . What are the next major activities you need to take or delegate? iii. and the parameters to direct your time. 3. Keys: 1. or strengths do you have or have access to assist you? vi. How will they benefit iii. Consider telling them what you will sell the spots for. Therefore. Focus on service before self©\interest 6. SWOT Analysis Strength. How to create a really killer elevator pitch. The key to leverage isn¡¯t just about the length of the lever and the fulcrum. Call 12 Coaching: may not have done it Mentoring: has already done it Masterminding: need subgroups to make personal interaction effective Networking: better for specific business ventures For this group. biggest need is to realize that the most important thing is to get started. Variable or performance based compensation with a turnaround Open lines 47:30 Ideas to help you write a book/ebook 1. Ways to find out what is important to a business or a person: ask to see their Mission Statements. it¡¯s about how great you can and will be. Opportunities.see Encounter with Jay Abraham audio series. Leadership comes from within ¨C You need to know that you are capable. not tasks 5. and can help you get their attention. Inadvisable compensation: 1. Minority equity with only performance©\based compensation 3. Be motivated by long term vision and directed by immediate priorities a. Delegate functions. start small and develop the confidence. Maximum Outcome versus Maximum Income ¨C go after deals that have value beyond just the immediate dollars (especially high likelihood of outcome). Do you want to be an income producer or business©\builder? The Spike Humer Short Course in Management: 1. Vision Statements. Business Plans. or Equity Right to Audit Survivability 28:40 open lines Bernie Zick. Do only what you do best and better than anyone else around you 4.order to get experience using what you are learning.introduce new marketing avenues and streams of income. Contract provisions to consider: Multi©\tiered Payments Transferable Rights of Ownership. use a ghost writer to fill in your own outline Everyone in the program will be given a test to ensure they understand the material. Weakness. Leverage the talent. even find JV partners and opportunities. threats You can also use this to determine how to best help the company and what to watch for. transcribe and use material 3. Be a Builder of Profit Pillars. Start with someone you know. 2. The future creates the present. Understanding them will also help you build credibility. Hire slowly and fire fast Your path to greatness: Not about how great I am. Be an information resource Be a hub of other experts (your network) Ads for JV Partners-you can engage people to do anything you don¡¯t want to do. and energy of other people by engaging them in your vision¡ªfor their reasons 3. time.) . it¡¯s also about knowing where you stand. before they can be certified to bring JV deals to the Abraham Group. (90 minute audio. testimonials or case studies ala JA style 2. That can help you find their aspirations and opportunities. Ascending Compensation 2. You have to understand your position. record sessions with clients. Revenue. or the course. R. or who don¡¯t qualify. meet your standards. Covey article Call 13 1:20 open lines Spike exchanges pleasantries with participants and listens to their concerns.Resources: Andy Miller article Barter article Partner or perish Sample JV letters Stephen M. Any surprise there? Qualify the people you want to work with and set requirements. . You are better off in the long run to only do it right. Be willing to walk away from people who do not want to pay your fee. The bottom line is that everyone would like to put together JV deals. Stimulate desire. f. Opening Hook: if you …. headline – attention of desired audience c. Close the deal – buy now p. with various elements listed as options under each step.Copywriting Template I have synthesized all the different templates into one list of four steps. Benefits. Price dropdown – justification n. Close with Asking for Action. PS . Immediately enlarge on your most important benefit Tell specifically what reader will get. k. transfer enthusiasm to the prospect. Risk Reversal – guarantee o. Promise most important benefit in headline a. Your Story 3. Tell the reader what he will lose if he doesn’t act. Bonuses l. Rephrase your prominent benefits in the closing offer. Get Attention. Arouse Interest. Superscript – teaser b. Show the Advantage g. then … Focus on the Customer Describe Persuade Proof and Testimonials Establish credibility. e. Benefits j. Benefits. Bullets Build Value Differentiate you from competition Write with Enthusiasm. salutation 2. USP h. 4. subhead d. 1. Appeal i. Don’t Decide Now – you can’t lose m.