Redondo Beach 2023 — Day 1, Session 3: Perry Marshall Quadrants

Jay Abraham · 2023-05-03 · 2 h 19 min · the recording

Transcribed by machine from the recording. Names and a few spellings may be imperfect; the timestamps mark where each passage begins in the recording.

0:00:18Testing, testing, one, two, three, ten, ten, ten, you're testing, testing, one, two, three, Edward Deming. All right, how are you stress testing your possibilities and probabilities of next actions? What will provide the biggest upside? What is fastest to create results? What has low downside? What metric can you use to validate that this test is good? So think about your list, the list that's in front of you of all the things that you are tempted to put on your schedule right now. What is the metric that will allow you to put the top of the top and the bottom of the bottom? Now, with Dr. Bernard's idea of you can't multitask, you've got to pick one to start with. So what are you going to start with? How are you going to test these any, but any basketball fans here, March Madness, they do this thing like they were, they pair these things, things off, right?

0:01:54Like this team bites this team and then one of them wins. Do that with your list. What idea will win your, your beyond exponential challenge? You know, you pair off buying a business with, you know, creating a new strategy with a new referral strategy with just getting Jay some perfume, because it's going to open you up to a whole new set of ideas that you can imagine to stress testing problems that might happen. So go back and forth and look at the things that are going to provide you the greatest outcome. Okay, let's do it. So we are going to do about an hour with me and then I'm going to play a video for 40 or 45 minutes. Is that okay, show on everybody? to play Perry Marshall when we stop because I wanted to think about it tonight. Yes. Okay, let's continue. So I've alluded to this, but I'm going to go deep on it for a minute. So I was trained originally in direct response marketing. Direct response marketing is based on one simple assumption. You don't tell the market the market tells you. You don't delude yourself to think you have the answers, you ask questions, and the market tells you with their response or lack. They'll tell you the offers that make sense, the propositions that make sense,

0:03:21the prices that make sense, the positioning that makes sense, the media that makes sense, the business model that makes sense, because it'll either work well or it won't. But you can't get those answers if you don't ask the questions. So I was trained in testing, and I talked earlier to you about the fact that variability is profound. You do something one way, it's x, you do it another way, it can be 2x, 3x, 5x. It can be 1x now and 5x later. And if you you don't test constant assumptions, constant models, constant media, constant propositions, constant prices. I have seen $15 out pulled 19 by five times but I've seen in other applications, 19 or 29 out pulled 15. So there's not a do this or do that, it's what works best for your market. And if you don't test and ask your market to tell you, I was taught that the only vote that counts is the court of last resorts, the market. And if you're not constantly testing, retesting, because everything changes. And I've tested more things that just shocked me. I thought I knew and I didn't. And it's okay, it's not about your ego, it's about your bank account ultimately that comes from value creation, but test every month you should be experimenting, every month.

0:05:00We had one of my many, many, it wasn't a we, it was I, one of my many mentors was a brilliant direct response and he taught me that what you should do is take 5% of your profits when you start growing and put them into what he called wildcard tests, crazy things that most of them aren't gonna work. just to write off but when they do work they're explosive. 1991 I was in Indianapolis for a it was my classroom unit and I was in a nice suite at night and couldn't sleep and I always had wild concepts and I laid I could always write on a yellow pad on the floor and I got this great idea and I laid down there came this idea called the protégé training program that was just a wild idea but that's so cool let me develop it out and I did and I didn't think it would work but I thought let's try it and it generated 23 million dollars in sales in six months swear to god now there were things that I dallied and and and finessed over for months that I thought were we're gonna be buy a home run and they bomb. So don't care about your ego, just test, test, retest. But there's lots of variables. One variable change can change everything. By the way, when you're trying to figure out where your breakthroughs lie, if you change or test more than one variable,

0:06:32you won't know. If you test price, add, proposition at the same time and it works better, you won't know which one worked better. So you have to be patient, test one variable at a time. You should be able to test things conservatively. And as I said earlier, but it may not have had its full impact, you can test anything modest. It may not be totally definitive, but if it's indicative, then you test a little more. You should be able to operate very, very low risk, very conservative, and you can figure your way through all kinds of assumptions, hypothesis, experimentations, ideations. And if you do, you win so much better because one little ship can change everything. Big time, next. So this has got a laughable example and there's one, two, three, four, five, six women in the room, but you'll laugh when I say this. People ask me, well, give me a generalization. And I said, I won't, because one size doesn't fit all. What works great for you may not work at all for him. And I said, let me use an analogy. I don't know if they still sell one size fits all dresses. But if they do, one woman looks beautiful. The rest is either too tight, too loose, too short or too long. You want what works for you and you can't just,

0:08:00it's not gonna be something that you take it out of the, You know, after the ozone, and you just, you have to find out by asking questions of the mark. You test, and you test one thing against another, and you see what works better, and better is different. Sometimes something that pulls more responses than is profitable long-term if you have a back end. Sometimes quality and quality are not the same. I tell people, if you look at, If you have different products, services, different media you use, different ads you use, when you start analyzing, you'll see it's not all the same. So every, you have to learn to analyze things on a different, what's the word I would use? A different evaluation criteria. You got to see what quality, quantity, convertibility is. And all leads, all buyers aren't worth the same. Some are worth so much more than others. And if you treat them all the same, you're wasting opportunity costs. Everyone has the 80-20 rule. If you don't know who they are, the 20% that are the most profitable shouldn't be treated the same way as the 80% that aren't. Certain ads will pull much higher quality or convertibility. Others won't. You should basically know that because I used to have clients that we had to have blends of front end, back end.

0:09:24Some things would be front end that would break even just to cover our overhead, but we'd make all our money on the second and third sales. There's all kinds of different models and whatever your model is today may not be the optimal model you evolve to when you start playing around with this. I hope that makes sense next. So I already talked about most of this, different ways to say it, different copy approaches, different propositions, different lead generators. I've already covered this next. Can you hear me? I don't think they're really having trouble. I think they're just screwing with you because there are a bunch of sadists. There are a bunch of diabolical sadists who say, let's screw around, let's F with Brian. Let's just tell him again here, ah. Okay, good. See, when I said that, they knew we caught through. If your nose is all started growing, we're gonna take a picture of you. Okay. So you have a control. A control is what's working now. Everyone has a control, it's whatever's working now. And you're trying to beat your control. But beating it has many, many variations and derivatives. You don't just want more quantity, you want to understand quality sometimes is much more important. Rob, my sales person, we sell 25, this is very low.

0:10:52We sell $25,000. We can makeovers. We just started a $48,000, very cool mastermind that is designed to not only grow businesses that acquire businesses with syndicates. I do $200,000 against profit sharing business deals where I get involved for three or 40 years as long as the other side does their part. We have $300,000 mentorship, so high end. So quantity isn't really that exciting to me. Quality, I want people who can afford it, who are open-minded, who can believe, you know, that my press and not say that it's audacious. I want people who are open-minded to nonlinear thinking. If we just get a lot of leads, we had a guy that, I try lots of things. We had a young man that came to one of our programs and he was impressive sounding and I liked him and he wanted to try ads for us and I put up $10,000 on Facebook and we ran his ads and they pulled like you can't imagine. I bet we got a thousand leads. are you waiting for the other shoe to go? We got zero conversions, zero conversions. None of them, because they just weren't the right one, but he made them very, it was so provocative that everybody responded, but most people couldn't afford anything. And when they found out what we did and what it cost, and there's another thing for me,

0:12:21but you got to think about it. Most people who are aspirants, most of you are not, some of you might be, but aspirants are really drawn towards tactics. And a lot of the tactical sales people would have you believe that one thing is gonna transform your life. Because a lot of them are young and they've really not operated a business for very long and they don't understand that a funnel's not gonna, it's not gonna carry your business forever. A Facebook ad's not gonna do it. I mean, it helps, but rounded, integrated business a whole different thing. So we basically are constantly, constantly looking at factors that impact us. For my personal, that when I was younger and I wanted seminar attendees, I would take the broadest swath. And I wanted the most real businesses, but a lot of the aspiring ones that grew into nice ones were necessary to cover the cost to make it profitable. Today, this is an experiment because I love this methodology. I want to keep articulating because for my own use I keep reminding myself it's great to impact all of you but I just want $25,000 weekends, $48,000 masterminds, profit, partnering. We're now getting into equity participation but it depends on what you want but don't look at one superficial factor. Lead quantity

0:13:53has nothing to do with quality, convertibility, residual value, unless you know all those factors, and sometimes you need combinations. You might need something for the front end for cash flow and something else that's a secondary offer that has not as much front end that builds a lot of residual, and you can have combinations. That's a little more sophisticated, and I don't know that you should go there yet, but I'm projecting you ahead into the future next. I don't need go there. Go ahead. I've talked about most of these things. I've talked about those things. So, you know, just ask yourself later, what am I not testing? What am I testing? Okay, this is a, I mean, some of these are so axiomatic when you hear it, but think about this. If you aren't getting the results you want, whether it means people aren't responding, they're not, they're, you're not getting the leads, you're not getting the opens, you're not getting the calls, you're not getting the walk-ins, visitations, attendance, registrations, enrollments. You are being designed, you are being denied access, access to their trust, access to their time, their effort, their believability, and it's not their fault, is it? It's your fault. It can be your fault that your proposition isn't compelling enough,

0:15:18your fault that you're in the wrong media, the wrong message, but if you are being denied access, you've got to figure out why, or you'll never optimize next. Yeah, sorry, I talked about that earlier next. So if you're denied access, you're denied access to their attention, their interest, their trust, their awareness, their willingness to engage, be vulnerable, trust, the viability or the veracity of your proposition, who you are, I have a very big problem. I am such a, I guess I would call it an anomaly, maybe a force of nature that people can't believe I'm rich. They can't believe anybody's done what I've done, that I know what I do, and I've actually accomplished it, and I think it's bullshit. It's very difficult for us because it is real, but it's so, when we get exposed to them, I mean, if I have dialogue with them, or they watch me, or they see things, they believe. But it's very, very difficult. We also are more interested in the totality of a business and most people want an instant panacea and they want a new drug and we don't advocate that we're much more integrative and more holistic and it's very challenging so you've decided what are you being denied access with and how can you experimentally conservatively try to mitigate it eliminate it manage it

0:16:46but you know insulate next yeah so you want to really have a lot of awareness you need a game blanking or promoting pro-action to the market you're trying to stimulate and constant awareness of all the competitive physicians out there because you may be an ostrich but I mean well you and I are here guess what everyone's going after your client your prospect both and if you don't know who they are and what they're doing and where they're doing it and how they're doing it and how well they're doing it you lose you lose I think all of you if you're big enough should have an intelligence team that's maybe a contract that's always keeping you a prize of everything within your realm, outside, alternative, because if you're not growing, what are you doing? You grow or die. It's quantum physics, isn't it? You expand or you contract. One of our colleagues says you're a multiplier or a diminisher, and you can't stay constant. It's scientifically impossible, so you can't. You need to constantly see if there's new product services you can come up with. Your value propositions can be enhanced. I'm skipping over things that I get embellished by everybody talking about next. Changes, next.

0:18:27Yeah, so this I already talked about, but just think about it. If you're not getting the results, you want. First of all, I'm looking at it in the macro and then the macro. You are being denied access to something, aren't you? You are. What is it? If you don't know, try to figure it out, because then you can isolate it and focus on it. And again, success today is an aggregation. It's a lot of modularity coming together. And you better figure out where you're weak. And hopefully, it's not everything. And if it is, then you'd have to, you know, clean the slate and start with a fresh new canvas, but you better figure it out next. Yeah, one of the, this is not exactly that, but one of the biggest competitors you're dealing with is uncertainty, ambivalence, procrastination, you know, equivocation, contemplation. And that's as big of a competitor as anybody you ever deal with, because people are uncertain. I do things sort of in your area. And we've got documented proof if you learn this, you're gonna increase your income to $300,000 and that can make your business worth an extra million and a half dollars when you sell it and it's much more fulfilling and you're not just drilling and filling. And there's 20,000 success stories

0:19:50and still most of the dentists don't believe it. They'd rather just be bored and just, but the problem with your field, which is interesting, a piece of my new ship, they have to work very hard to get to critical mass but then it's not that hard. And we talk about the fact that if you have an ache in your shoulder or your back, it'll normally resolve itself, an ache in your mouth won't. So you have a very, you actually are much better positioned than a medical doctor, don't you think? But you just have to understand that success and exponential success Exponential success are two very different things. Very different things. So think about this. One of the biggest things you have to overcome is the enemy of disbelief. And disbelief has, again, I could get into this wonderful, wonderful, it's like an ever increasing font where like untangling, either unpeeling the onion or the artichoke, disbelief has two different facets. It could be, they don't believe in me, or they don't believe in themselves. And either of those or both of those are horrible, but you don't know which one. And so you have to address that in your approach. Do you believe in me? I believe in you, and that's that hopefulness. But think about it.

0:21:15Next, you want to create a superior access vehicle, access vehicle of distribution, it can be model, it can be all these things, but if you don't have a superior, then you have an inferior. It's always the polar opposite, next. Gay, I wrote a book. The book was well received, but it came out right in the middle of the 208 meltdown. And people didn't, a lot of entrepreneurs, small ones didn't believe anything would help. And it was very heartbreaking because it was a great book. It's called The Sticking Point Solution. And we identified what I thought were the nine biggest ways most businesses get stuck in terms of my skillset and how to get unstuck. And let's go through with them real quickly. Number one, and you can be successfully stuck. We talked about, okay, one, not incorporating growth thinking into everything a business owner does. That's top reasons for stagnation. Growth thinking is what I've been talking about. It's breaking through your glass ceiling, and your glass ceiling is not just achievement, it's possibility thinking, it's experimental thinking, it's expansive discovery, it's curiosity, It's, it's, it's self growth outside of the limitations of your field. Not measuring monitoring comparing and quantifying your results and knowing what the data tells you.

0:22:40We did a seminar many many years ago with a guy who would, who would take an $100 investment in his college dorm and parlayed it into a billion dollars of aggregate combined sales with no external borrowing, just by testing, and then rolling out the the positives and minimizing the negatives. And he wrote a headline that said, the data speaks. The data will tell you what to do, what not to do, but you have to ask it and interpret it. Not having a detailed strategic marketing plan with specific performance growth expectation. Remember earlier I said, almost no entrepreneurs get their results or their goals because they don't have them, they're abstract, they don't reverse engineer, they don't have benchmark, they don't have head strategies. Next. So here's the nine sticking point. So you start losing out to the competition. If the answer is yes, then what's, I'm gonna give you a macro Y and we can go deeper after I get through some more of the content tomorrow. So why you lose out the competition? Your marketing is not as good. Your value prop is not as good. Your risk reversal isn't as good. Your access vehicle isn't as good. Your credibility isn't as good. Your way of starting a relationship isn't as good.

0:23:50You haven't, what's the word I would do? you haven't, there's a word you haven't built, not a funnel, but you haven't like cured the relationship, seasoned their trust of you and their comfort with you. And you gotta be able to do that. Are you stuck not selling enough? Well, you're not selling enough because you may not have enough ways of bringing them in and converting it. You may not have the right sales approach or people may not be so entrepreneurial sold in training. one of the things that, I mean, consultative selling. Very fascinating. When I do seminars, I'll say to people who have a sales force, do you train your salespeople? Nobody says no. But what they're really hearing you say is, you give your salespeople technical training. Can they talk about your product? I mean, I did this with a very famous supply company in your field. They said, oh yeah, we train our salespeople. And I said, oh, consultative advisor selling? No, we train them on all the product, the performance, you know, the composition, the application. I said, that's not, that's product training. That's not sales consultative selling, totally different. And a salesperson, I can be selling all my life. Like my son just took a job as a sales manager

0:25:05for territory with an aesthetic company. And I just sort of throw away, said, you know, there's about 40 different soft skills you can teach your salespeople, how they're seen, how they're heard, whether trust building, each one has measurability, they can get between 100 and 300% more impact. He goes, nobody ever told me that. And he's been in selling of cosmetic injectables for 20 years, but no one ever told me that. His sales managers didn't tell him that, his trainers didn't tell him that, his company didn't tell him that, and his big annual events where they spend, you know, million dollars didn't tell him that. Nobody told him that, but they don't sell more, get more accounts, get them to buy more of your product than Algance, but they didn't, they didn't tell. So are you stuck with erratic business volume? Well, that can be because you don't have consistent ongoing sources. I mean, if you have more than a, if you have a single product, then most obviously, whether you understand or not, everything you do is a lead generating and a conversion. I don't care how you look at it. Some businesses have lead generation sequencing before they sell. Some have lead generation and a first tier, a second tier, you know, in the information marketing.

0:26:28I don't do it well. If any of you are big enough, maybe tomorrow I'll tell you about my services, but we're not like most people. Most people bring you in for $100 to $100, then you get your $1,000, then they go to $300, $300 to $3,000, then they'll maybe get your five. And it's just a, it's an ascendancy. I don't do that, but that's a model. But everybody, whether you think about it or not, you generate leads in terms of targeting an audience and stimulating a response. Now your lead might just be a call that gets closed instantly. It might be a call that has to be gestated a long time. It might be a respondent that comes to a webinar, a respondent that asks for information, a respondent that gives you their name at a trade show. But you're all in that business whether you realize it or not. Some are immediate closes, some are long closes, some are sequential closes, but you're all in that business. Every facet of interaction can be enhanced. Those are the levers. Those are the 10, 10, 10, or the 20, 20, 20. But if you're stuck with erratic volume, it's not the fault of your market. We have a, and I'm gonna add a little bit, we have a whole program on recession, proofing your business, crisis, business growth,

0:27:43and what to do in a downward or an inclement market. And the key is in a bad market, even in a market where things are shrinking, 100% isn't gone. And if you're more preeminent, if you're a better market or strategist, you can get, because what happens in a bad market, people cut their service, they cut the quality, and they deal with the best people just the same as the worst, and the best people leave, and they're open to shifting, and new people come in, and you could own all the new people that come in, even a diminishing market, you can get all the quality people that are being deserved, you can grow in a downward market with the right strategy, and if we go into a downward market, you should think of that. Next, oh wait, no, no, no, take your time, I'm not in a hurry, you're not going anywhere. Are you stuck failing to strategize? I've already talked enough about that. Are you stuck with cost even with your profits? If so, then you have to do something about it. One is if your marketing isn't good, you can double or triple the front end, which can change it. You can change by adding product services and getting more profit, more back end, more front end. You can find ways to move cost to variable, partner.

0:29:04We'll get into partnering tomorrow. But there are ways to mitigate everything. You have to be able to understand what they are and then experiment to see which combinations are gonna be most appropriate for your situation. Are you stuck still doing what's not working? What happens is we are very, and I'm probably just as bad sometimes. I love being, I love what I'm comfortable with. But the world's changing. I mean, half the world doesn't have, they have a concentration of about three seconds. They want to know the big issue. They judge things totally differently. I don't even go on any of the most social media, but most people do. My wife is on it for hours. And you've got to be able to open your mind and learn where your market is, not where you want it to be, but where it is. And you've got to be able to evolve yourself and reinvent yourself. But don't throw the baby out with the bathwater because you can decide you're gonna throw it out and totally change it and not do it right and get yourself in a lot of trouble. Next, are you stuck being marginalized by the marketplace? So if you think about it, there's two parallel universes that are out to get you in a competitive world. What is your competition and what is the consumer?

0:30:37The consumer doesn't want you to be superior because you're more expensive. They want you to be a commodity, don't they? They want to marginalize you so they can pay you less. So you have to, if you're going to compensate, you've got to start by saying, okay, what do I have to do or be, no matter what price point or what service level I'm at, to be preeminent, preemptive, and proprietary? And that has different applications, depending on whether you're the high end, the low end, you can be the low end and still be proprietary and preeminent. you just have to understand how to make your value a hell of a lot more than the other low price values. But if you are content to be a nondescript, non-differentiated commodity, any business you get, you're lucky. You're just lucky. Next. Oh, excuse me. If you're stuck with mediocre marketing, I've given you a lot and we'll try to talk more about that in the next day. But I mean, most people don't have great marketing. They don't have great marketing. And if you think about it if you're doing okay with mediocre marketing what would happen if you had great marketing but remember what I said marketing is a diminishing concept it can drive a hell of a lot of superior temporary performance but it has to be constantly replenished like gas in your car

0:31:57a great strategy great business model great distribution channel great partnerships goes a much longer way to carry you and all things being equal and that if you have great marketing it's explosive. So don't minimize the others and just think marketing alone. They'll have you believe that that's the be-all and whatever the have-all. It's not. It's great. Much better than mediocre marketing, but that isn't going to give you the durability and the sustainability you want. I don't believe. That's why I got, now I will say something else. I've worked with hundreds of clients since I got into the more holistic element. I can say that half of them never can do anything with it because it takes too much time for them and it's a harder integration. It's much easier to change your marketing, your ads, than it is to change your strategy and figure out a different business model and build new distribution. But if you're playing a long game, when you do that, it's very explosive. It's sort of like the, but it's not right away because it's very hard in the transition. But if you're playing a long game to win at a much bigger level, then it's much better strategy, but it's much harder in the transition because changing your marketing is easier.

0:33:11Changing your marketing is much faster, easier, quicker, but it doesn't have indurability. It lasts until it doesn't. Then you gotta do it again. Whereas if you have a great strategy that your competitors don't, business model they don't, distribution channels, partners that they don't, and the distribution channels and the partners are locked, you have a much greater advantage. much greater than it's next, I would say I can do it myself. There's many philosophies on this. I believe going from mediocre to going from crap to mediocre is an incremental thing. You shouldn't do it. Everyone goes, oh, we can grow all of us. Why? Go from great to outrageously better. I mean, you want to operate in your in your super power zone. There's a famous guy that I had at one of my programs who did effective training for Silicon Valley technology companies. And I asked him for one concept that was more profound than anything else. And anybody could grow from me said, Okay, figure out the three most important functions your company pays you to do even if you're a one person company or 10,000 and bring it into its sub processes. And then, and then analyze it on three criteria. I'm paraphrasing, competency, relevancy, competency,

0:34:31relevancy, competency, relevancy, passion. He said, you might be great, and I'm going to show you how old I am at checking time cards. But he said, is that really a relevant function? Let somebody else do it. You might be mediocre at doing something, and you work your heart out to just do a crappy job. Why would you do it when there's somebody greater at it? That's why there's big thinkers and marketers and there's operational people. Most people aren't both. And if you are both, you're usually gonna favor one or the other. We did years ago this protege training program and it was hilarious. I was teaching people how to be a contingent marketing consultant. And I said, well, let's take a look at it. If you're great at selling, but you can't manage and implement, that's no problem. There's plenty of implementers who'll do it. You can keep the line and share. You're a better implementer than salespeople. There's plenty of salesmen there love to be a partner and not have to put any money up and you can keep the lion's share. If you can't do either or you can be to Tom Sawyer, you can get implementers and sales people and keep the lion's share. But figure out where you're going to operate in your genius zone, not in your mediocre zone.

0:35:41And, you know, if you're dispassionate about something, even if you're reasonably competent, the energy, the precious energy you have to expend to do it, I mean, I can do certain things, but it makes me exhaust and I have to get so psyched up to do it. Whereas certain things I'm great at, I can just start and I do it at a high level. You have to play to your absolute exponential strategic advantage, not your disadvantage. Next. Okay. Every business also has a sticking point where it breaks down. You can be stuck with poor leadership. You can be stuck in a poor business model. You can be stuck with poor marketing. You can be stuck with too small of a market. It's funny, when we used to do the big seminars, people would ask me questions, and I was always straightforward, very respectful, but no-nonsense, tough love. Somebody might say, I've got a barber shop, and I'm making $60,000. I need to figure out how to make $250,000. And I'd And I'd say, well, if you're not willing to have five or 10 barber shops and get managers and really learn all that, maybe you should take the knowledge I gave you, either sell it, get someone to run it and go into a business where this marketing and strategy will give you that kind of advantage

0:36:59because you might be in a situation where even if you're the best in it, the yield is so nominal that it just can't give you what you want from what you're doing. There's some really great stories and I wish I could remember, but there's a couple of fabulous billionaires start out running a diner or doing something totally different, but they realized that was the lowest and least not the highest invest use of their intellect and their understanding of these kind of economic and strategic and financial and financing dynamics. You might be stuck with the Me Too product. Can you turn a Me Too in a proprietary? Can you get a license, you know, control of? Can you do something to have something that's advantageous, because if you can't, then you have to have some other advantage besides that. Better price, better distribution, better endorsers, better combination. If you have a product that's hard to sell, maybe you make that product a loss leader and you sell the one behind it or in front of it to make profit, but there's lots of different models. And if you're not exploring them all, if your business isn't delivering what you want, you better do it. Next, no poor distribution, go back, please. Poor distribution, I would say most people have poor distribution because distribution gives me different audiences, different media, different platforms, different endorsers, different partnerships.

0:38:28It's a lot more things than most people even consider doing. And I've done all of them. They're very real if you want to do them. Okay, next. We're going to get into how many different ways of thinking are you. Nine different ways of thinking, critical thinking. There's how many different pattern recognition. Yeah. And most people don't even have one. So if you only have one or none and you could develop two or three, it's not, you know, you have an advantage. Abstract for specific goals. We've talked about that. Poor planning. poor planning, you know, planning can be strategic planning, tactical planning, market planning, cash flow planning, resource planning, poor monitoring, measuring. If you don't know how you're doing, you could get, I mean, in a dynamic market, like RIT, I mean, again, I don't know the implication, they raised interest at quarter point today. I don't know what that'll be, could have a, I mean, there's gonna be a breaking point. There's gonna be a breaking. And when that breaks, it's gonna have a very scary effect very rapidly than people think. And I don't know if that'll do it, but I don't know that it won't. Do you have a head strategy? Because if you don't and you get caught off guard,

0:39:45what's gonna happen? What's gonna happen? We're starting to do things where we carry people, we finance things just because people are scared to write big checks. We give a huge discount because I don't wanna be a bank, but if you need me to be a bank, I'll carry it because it's better than not getting the savings. And if you get enough, then at one time We had 1,000 people pay me $933 a month for a year to 15 months. It was great. After the first month, we were in the money after the first month. But we had to wait, but they didn't want to write a check for $15,000. So he said, give us $5,000 now, and we'll carry the rest. We had a little breakage. But you better have a strategy, because the world may not go. It may not conform to what it's been yesterday. I don't know what I meant by poor correlation. Do you, Brian? Or is that just, doesn't matter. Next, let's not worry about it. Okay, I'm gonna get to this and we'll see how we are. So this has got a couple of old and a couple of new. So I believe that there are marketing mistakes that many people make. And a couple of these I will bypass because they're no longer relevant. And I used a slide that was very convenient and I'm gonna have to redo it when I get some time.

0:41:00But the corollary, if you're making marketing mistakes you stop making them, guess what? It's like an instant multiplier. And the analogy I use, which isn't exactly correct, probably, because I don't know if this really is a true example, but let's say that you're on a flight on a jet going from Los Angeles to LA, and let's say one part, I want to call it a flap, doesn't go all the way down, but it's safe to fly. So if that's the case, and I don't know if that particular example is safe or not, but let's say it's going to take a lot longer, it's going to be a lot less comfortable. It's going to burn a lot more fuel. It's going to go off track a hell of a lot more, but the moment it works, you're going to go faster, direct, cost less, more comfortable, and that should be a meta. I mean metaphors are what drive your ability to be motivated to do things. That should be the metaphor for getting rid of the marketing mistakes you might accidentally unintentionally be making. So the first is not testing all of your marketing ideas and all the implications we beat that up. The next is running more institutional advertising and this is older but most ads aren't really as compelling on what the offer is. I mean

0:42:08you have to understand everything you do should basically be designed to evoke a response that gets someone to commit to a relationship, some connectivity. And if it's not very clear and it's abstract. In fact, I have a belief that's different than most. I don't believe, unless somebody slips in and I don't catch it, I don't like ever giving anything free. I prefer buying you something that has value. And I don't believe just making it implicit. I want to establish the game I'm playing and the agreement we have. If I'm going to invest a thousand dollars of knowledge into you hypothetically in a three or four hour webinar that is 90% content. I want you to know I'm doing it for a reason. The first reason is if you sign up, show up. If you show up, stay. If you stay, be respectful enough to listen if I want to tell you about some of my knowledge and my various commercial offerings. And if you don't, don't do it because I'm not investing for no reason. I'm willing to invest much more outside, but I want something in return. Some of you, I think, could be clients or could be product buyers or program buyers and I want you to know the game I want to play and if you're unwilling to do it it's okay but I want you to value the fact that this is an exchange and a lot of people don't do that

0:43:27and then they're shocked when nobody responds I mean when no one converts but I think it's very important to take a leadership role including being being authoritative enough to say hey I don't mind investing in you but I want something in return not from all of you but I I want some of you to be able. And if you're not that person and you don't, you're not even going to pay attention and you're going to be on your computer when I do my video Zoom training, please don't even do it. We'd base both of our opportunity costs. Number three, not articulating and differentiating your business preeminence position. That's the USP and we talked about that so much, we don't need it next. Not having a back end or a front end. Front end, back end are different. Front end is a lesser, less threatening. It can be a lower price or gratis something to start a relationship. Back end is something that extends the lifetime value that gets you another or another or another whack at the pinata and could double or redouble the lifetime value of the profitability, which doesn't just come into your bank account and gives you far more allowable costs to acquire people in the front end. So it's a very powerful decision. understanding your clients or needs. This is really empathic understanding respect of what

0:44:53they value. We'll get into a little more value creation tomorrow next. You must educate your way out of problems. You don't just ice it your way out. And a good example of this, and I did this, I did this as an experiment many years ago. I did a seminar once and at the seminar was very expensive. I'll tell you the whole story because it's another old one but it demonstrates it very well. So when video when VHS first came into being and it would cost a fortune to rent a player and it cost a lot to rent the big screens to put them on. And I was doing a seminar for 86 hours and I didn't have one allowable minute left in my curriculum that I I wanted to give up. But I had done at the guy named Gary Halbert, who was, he's died, he was a really great copywriter, he did a seminar segment for me, it was quite brilliant. And I had it on video, and I wanted to share it, but I had nowhere to do it. And the only way I could do it is at lunchtime. And this seminar, even though it was a very expensive one, $15,000. 25 years ago, we didn't have, we weren't planning on buying anybody. But the only way I could do it is if I rented two huge screen TVs, there's a large audience, and got the video converted. And then I had to feed everybody and make a long

0:46:19story short, that was an extra $30,000 back then. But then because it was so powerful, I decided I wanted to give everyone there was about 800 people, maybe a few less, I don't remember exactly, I want to give them all the VHS. And back then they were expensive, like $25. So now I'm into another. Okay, so in our pocket. So then, I'm giving the pizzas, I'm doing this, I'm feeling given the video on the video, Gary gives away because it was a different seminar, a book. And they're all mad, they didn't get the book, and I had to stop and explain what I just did. And when I did that, they all basically groveled and were appreciative, but they didn't know what I'd gone through to do this. And they just were greedy little suckers that wanted their little free book. And when I got up and I took 10 minutes and said, you in greats and I actually believe sometimes not to be as brutal as I am, but you've got to get alignment. And when I did that, they were all very, very grateful. But you got to educate sometimes because people don't understand just cutting price isn't enough. One time, another example is very interesting. Most of you too young, but I was in the gold business when it first got re legalized and we were in collectibles galore.

0:47:35we sold in one year $100 million of collectible gemstones. I was in a different business with diamonds, but I was in rubies, I mean, all kinds of emeralds, sapphires, I'm talking about six, eight carat, really heavy duty investment grade that were maybe 50, 100 grand back in the late 70s. And when we got into it, it was killer and then the market dried up and we got caught with about $30 million at cost and inventory that didn't sell. And we needed to get our cash out. And my, this is the same guy that I told you, went right to the bottom line and didn't like to give the basis of anything and let the consumer make the decision. So he wrote a piece to his audience and it said, sale on gems. And he just gave the prices, the discount prices, and almost nothing. I went and I told a story. He didn't want to give me my 25% of the profit. I got that then I get between 15 and 25 now. only for stuff my methods work, but back then I got 25% across the board and even with that. But if it didn't work, he said, okay, your chance. So I wrote a letter that told the story. It said, look, we've been in this business and we bought these for a lot more than they're worth now. The market died. We have two choices. We told that we've paid. We're going to tell you what

0:48:54we paid for it. We're going to tell you what you'd still have to buy it for if you bought it from a jeweler. We're going to tell you what our options are. We can sell at wholesale and lose our ass, or we can sell it to you and lose our ass, we think it's a better investment to lose our ass with you for goodwill than to the, you know, to the distributor who will never do in business with us again. But you have to know what we're going to sell it more because it's quite full. And we sold everything except for the irradiated, everybody in the gems. The only thing we didn't sell was the irradiated blue topaz, which is not that nice anyhow. But we sold all the real stuff, everything, like $30 million, but he couldn't sell when he didn't tell the reason why. Next, not doing making business with your company, easy appealing fun. I mean, maybe not laughable fun, but think about how hard it is today. I am almost ready to give up. We have three, I don't have a black card, but I have three platinum cards. And anytime I need it, I get on hold for about a half an hour. I get talking to somebody who doesn't speak English. I can't get anything done. I ask questions and no one can make a decision. And I say, why am I paying $2,000 for this privilege

0:50:03when there's no privilege? And it's really disgusting. I have an accountant. I am not technophobic. I am technophobic. They send me all these things that are computer. I won't open them. And they'll say, well, he hasn't signed his tax return. He'll say, send it to me hard copy and they won't. And I say, you gotta have more people like me that just, I won't do it. I think because I'm only on my phone. I'm never on my, and you can't do it on your phone. And if the people that accommodate the people that they want will own that market, people like me are loyal as can be if somebody accommodates and I have three banks, and one of them is very, very, very, you know, they're, you know, they're higher and they'll do an inguent. They'll come to you, you know, you know, I mean, if I said Desiree, even though they're not supposed to, they'll do what I want as long as I tell them. The other one won't even pick up the phone. My, they changed, they changed your, your, your officer and they won't even call me back. And it's a big bank. And so you got to make it enjoyable. You got to make it positive. I mean, how many place, how many of you ever gone to a a second rate restaurant and the bathroom was so dirty, you didn't even want to eat it.

0:51:19Or they didn't clean something. Or, you know, and you think about it, what's it like to be in the shoes of your client? And if you don't think about it, go to one of the competitors and see, and then ask yourself, am I like this? Because, I mean, buy from yourself, buy from somebody else. Because I don't think we, And again, this idea of fun is not making fun of people. It's, I'm this way, Desiree, do I have fun? Yeah, I really do, but do I get a lot accomplished? But I don't wanna just be serious. Life is too short and at my age, it's really too short and everything doesn't work. You know, so you better have a good time when you're going through because nobody knows. I mean, you may be very religious and maybe we come back, maybe we don't, Maybe we go up, maybe we go down, maybe we go nowhere. But right now we're here. So you better enjoy the process. I'm gonna tell you the story about that. I'm gonna finish this and I'm gonna stop. What time is it now? Okay, I got till 5.30. I gotta leave because I gotta do something. I'm gonna stop and tell a story. Another story. True story, Michelle knows this. I got started at 18. I had two kids at 20. I was successful at 25 and it was anticlimactic and then I had a setback and then I was successful again,

0:52:46I had a setback. I've had three midlife crises, one at 40, one at 50, one at 60, approximate, not exactly what approximate. The first two, I'd go to psycho, pardon? I am, I know, it's a scare. I'm over reviewed, I am over reviewed. And that's why I'm laughing so much. It's a facade, I'm really basically gonna go home and go into the fetal position and feel tomorrow, then I'll pop myself up and put on my game face. But the first two times I'd go to a therapist and we'd get into this really good dialogue and they'd look at their watch and the 50 minutes is over and they'd say, we'll continue this next week. And it was anticlimactic, it was a cliffhanger and I was very frustrated. The last time I bought them for a week, I bought them for the whole week and I had a deal. Anybody I knew who was screwed up and would never go, I would send if I couldn't go And I had all these hilarious people who were really screwy, but they had great time and the therapist laughed his ass out because he never knew who was going to come. But when I came, I talked for about four or five hours at a time. And I got one thing out of it that profoundly changed my worldview. And it has driven a lot of growth for me personally, not necessarily financially, but I

0:53:59don't know what the difference is. Wealth is denominated on many different claims. And here's what it was. He said, most people are obsessed with the end result. You want to make the most money, have the fastest growing company, have the biggest house, you have the one who have the prettiest wife or husband, you know, the most toys. If you're unlucky enough to get that for the reason you think and you think the heavens are going to open, the angels are going to trumpet, Nirvana is going to rain down, all your problems will eliminate. Bullshit, doesn't happen, they just get more. He said, what life is all about is the process. This conversation is as good as it gets. Now, if I impact you, it's better. But if we were having it sitting, having a dream. Desiree knows this. When I used to go all the time to Asia, Singapore, Malaysia, Japan, China, I had a process. I got to pick the airline and it would always go to Singapore or Cathay because they had the prettiest people and the best wine. And I would drink and look, drink and look. And after I got there, after about 18 hours, you're pretty drunk and you have visions of sugarplums. And then you go to bed and you wake up with a hangover. So I'd stay in bed the next day and hydrate for 15 hours.

0:55:22And then the next day I had a procedure. I'd go into the lobby and I would smile at people who didn't smile because a lot of, you're Asian, you're smiling, but a lot of people in Asia don't smile. you agree?" And I would smile till they smiled back, then I would get in the elevator from the door looking in and smile at people till they had to smile. And I'd do it for four hours, then I'd get off the elevator on different floors and try to talk to the people that didn't speak English, the housekeepers in the service, and you could see their body language change because somebody was acknowledging them even though you didn't have a clue what he was saying to you. you. And that gave me such joy to connect. But if you're having fun, and you take yourself seriously, you're missing out on so much richness that life has to give you. Next, telling the clients a reason why the keto school marketing is taking the negative and turning it into a positive. I got to think of some good examples. But most people get all flubbed when there's a problem, when there's something goes wrong, or when there's some law in there and and I always find that that's the greatest chance to use that as an advantage because it shows your integrity your authenticity and you can usually turn it into a great advantage

0:56:38by being vulnerable and I got to give you some examples because I have plenty but today my mind isn't thinking about it terminating marketing campaigns that are still working we get tired of things before the market does and um and it's funny I I tried to do things with the car dealer market for many years and they were very difficult because they're they're eager that maybe they're not today but back then they were egotistical and they would keep changing campaigns because they'd get tired of them and I would keep saying well look buying a car is a pain in the ass and buying a used car is even a bigger pain in the ass and there's usually a window for six weeks somebody's in it and then it's a whole different audience why would you change something that worked until it stops working just because you don't like it but they would never understand that. And I had another one that this is pretty funny. They they were in Los Angeles and they run huge full page and double page ads on the front of sections and at the top if the if the page was this big this much would be their map to get there. And I said why do you think anyone cares where you are until they know you have something they want? And they go what do you

0:57:47mean? I'd say I just said it. Why do they care where you are until they know? Why don't you make sure you show them you got more cars with less miles and better better options and better price something so they'll want to read what the hell you're offering they don't care where you are until they know they want to go there they want to go till they know you got something they i mean i'm a very super logical person makes sense doesn't it next yeah i mean focusing on the person you want not the person you don't want too many people try to get everything you can't be all things to all people and polarizing isn't bad. It's a little worse today with the internet because you get nasty people but I learned long ago you're better to be loved or hated than tolerated because people don't know on the internet it's a little worse but it used to be nobody really hates you unless you do something hates. If you just basically like certain people don't like me they think I charge too much and if they don't do anything with it they think that it was a waste but I have almost no bad will for 45 years. You can look at me on a worldwide basis. I haven't screwed anybody. I haven't taken You can advantage anybody. Those are those only two things.

0:58:59And the people that love me love me. The people that don't don't. And the people that don't probably wouldn't have done business with me anyhow. And corporations don't like me because I'm not a corporate guy. But entrepreneurs do because I'm real. And I learned long ago. You play to who resonates and you don't worry about who doesn't. And you stand out to the people you want to stand out to. So this is just database collection and segmentation. This is old, so everyone probably does that now, hopefully. Next. Being tactical, not strategic. We got into that deeply. Not having an integrated marketing sales system, funnel revenue system, and not monitoring it, analyzing it, improving it, knowing all the interrelated factors, forces, drivers, processes, micro, and granular, and nuclear processes, and really knowing how they're performing and how to improve the next 10, 10, 10, 10, 10, 10. This was old on the internet, so it's no longer in sales situations, shooting from the hip, ready, fire, aim without testing, repairing. Yeah, you can test and you can validate or invalidate almost any assumption. And remember I said, if the assumption is wrong, even if it makes money, you're sub-optimizing. If it doesn't make money, everything flows from it's wrong

1:00:23and you can get deep into it and really get caught up. It could be very dangerous, costly, and unnecessary. Being stuck, what works, successfully stuck, always be willing to experiment, change, and reinvent yourself. Remember, optimization, innovation, rigid. Next. This is interesting. Most smaller entrepreneurs, when they start making money, don't reinvest in more marketing, higher quality people, more infrastructure. They buy a car, or they buy something intelligent, or they put their mistress up in a hotel or something, but they don't really build something that will expand and endure. And, and I've done more makeovers with people when you like, I'll never forget, I was in Paris doing a hot seat based thing for a bunch of information teachers, and one of them said, hey, I'm spending $15,000 on Facebook, and it's bringing in $2 million a month. And I said, well, if you were doing five times that, could your system absorb a trip? I said, well, a question. If you're being 15 is bringing in two, which is basically, what is that? Is that, like, 15 or 18 to 1 monthly, which is annualized times 10 is a lot more. lot more. What is that like out of my off the chart? Why wouldn't you spend 30? Even if it's not linear, if it was only half that, it would still be 100,000. What do you mean? I mean,

1:02:02why would you spend more? You're making all this money. Why wouldn't you want it? Well, I never thought. Really? I'm serious. People are that way. They get an arbitrary budget. You don't, you should never have an arbitrary budget. Anybody that has an arbitrary budget is either spending too much or too little. Most people, oh, we're going to spend 5% of last month or last quarter, or we're going to basically do a percentage of sales, or we're going to do an arbitrary 10,000 a month. You have an allowable cost based on lifetime value, and if you understand it, you have an unlimited budget. If you say, okay, I've got three different sales I'm going to get this year from somebody and in total they're going to be worth a thousand dollars I can invest not spend a hundred dollars to bring that in or two hundred dollars to bring that in or if you have 10 years of residual and you can have the cash flow to handle it maybe you'll spend a thousand dollars or two thousand dollars I mean if you don't think that way you're underperforming your potential but most people don't reinvest in an astute way they don't invest in people better than they I want people that are smarter than me I mean the smartest thing that I'm talking about my

1:03:13goal client, but the one thing he did, it was smarter than heck. When I met him, he was making a couple hundred thousand dollars a year. The best year I worked with him, I got paid two million, and he made eight hundred thousand, but he owned the company. And when I was done, he got all that money. I had a contract for a couple years, and when that was done, he got all my two million, his eight hundred, his business grew, he had it worth more. He bought a 20 million dollar house. I didn't have a $20 million house and and so I mean reinvest in people better than you. Hire the best. It is one of my my influencers said hire the best and cry only once when you have to read a paper not when they screw you up not when they don't show up not when they purport to be good and you're trying to cut corners or you impute your values in a wave and you find out they can't do it and they bury you, that's, hire the best and cry only once and hire people who are especially better than you. If you own the business, who cares? Who cares? And give them an environment that they only want to leave and pay them what they're worth because it's not about what you pay, it's what you keep that you didn't have. Very interesting.

1:04:29Not knowing and leveraging the lifetime value of a buyer, client, next. Not maximizing assets relationships, but you have to know what they are and you have to learn how to isolate them. Being marketing and sales is operating silos and not as an integration. Okay, we've hit it. Now, what I'd like to do is this. We have, I wanted to play three and I don't. If you guys are good, I'm going to stop for today myself because I have to think about what I'm going to do tomorrow, but I think it was a good day. day. Did you enjoy it? Thank you. I don't need that. The greatest acknowledgement anybody gives me is to do something with what I share. I don't need, I've had enough standing, I'm not saying I'm grateful, but I've had enough standing ovations and clap claps. I know my stuff is powerful, but it's only powerful for you to do something with it. I'd like you to watch something from 45 minutes that I think will profoundly, reflectively haunt you tonight and be interesting to hear what you say in the morning. It'll only take 45 minutes, and it's been recognized by everyone I've shared it with as a profound impact. It's very catalytical, and it seems appropriate, Brian, I think, to now. So I'm going to play it for you. I'm going to leave. I'll see

1:05:39you at 9 o'clock tomorrow. We'll go till about 5.45, and we might play something at the end if you're all here. I have a commitment I couldn't get out of, so I have to leave by 5.45. So I'm going to try to do a shorter lunch and shorter breaks tomorrow and we're going to make it even tighter, but you'll leave tomorrow if you allow me to make you a totally different person than enter the room. And I'll tell you if time allows, I have no monetizing agenda, but I'll tell some of you larger ones a little bit about our services because you might be interested, but the majority of them here just to fulfill on my obligation to take those of you who are new to me or new to to our services and give you more than you expect and to leave you a lot better off. I think it's a good day. I appreciate it. I will see you tomorrow. Let's play Perry and pay attention to this very profound message, very profound. Trust me, very profound. Okay, I'm gonna leave that there for tomorrow. We will start in just a second. Oh yeah, better give you that. All right. Shelly B, I'll talk to you later. a respectful appreciation for what he's going to share. Now, Perry, I want to do you justice, so I'm going to do a little awkward, but a complete.

1:07:11I've got your bio and I'm going to address it, so bear with me. Now, they're setting it up for me because I got bad vision, so just sit there patiently. Okay. Perry is one of the most expensive business strategists in the world. He's endorsed by Forbes, Inc. He's worked with clients such as FanDuel, Infusionsoft, Loan Builder, he's really a smart guy. He founded the 10 Million Evolution 2.0 Prize with judges in there from Harvard, Oxford, MIT. He launched it at the Royal Society in London. It's the world's largest science research award. He is a published scientist. He was one of the first people to really understand online marketing. NASA's Jet Propulsion Lab used his 80-20 curve as a productivity tool. His re-invention of the Pareto Principle is published in Harvard Business Review. I love this. His Google book led, or laid, excuse me, the founder, I can't read worth a damn, Perry. The foundation, I would get new glasses after this, the foundation for the $100 billion pay-per-click industry, industry, right? And Ultimate Guide to Google Ads is the world's best-selling book on internet advertising. Dan Kennedy, who I love says, if you don't know who Perry Marshall is, unforgivable.

1:08:47Perry's an honest man in a field full of charlatans. I can go on and on, but he's consulted lots of companies. He's one of the brightest, most authentic people I know. I have enjoyed our relationship for a long time. I think the last time we talked, we were trying to work through your issue, but it goes back and forth. And today you're doing me a kindness. So with that set up, why don't you in a bloodless coup take over, okay? Jay, thank you. And everybody, what I like about Jay is he really expects his audience to think. And when he uses words like multi-dimensional, he's not kidding. If you can think in five dimensions or 10 dimensions or 15 dimensions, you have a huge advantage over everybody else. And what we're gonna do today, this morning, is we're gonna take a multi-dimensional approach to the 80-20 principle, which I think is the most powerful principle in business. There are a lot of things that you can learn in business and everybody in this room has like a hundred business books or some of you have a thousand, but there are certain things that are much more useful more useful and much more important than others. And so I'm gonna, I'm gonna go through some things today, I'm not going to do the usual, tell you what I'm going to tell you and then tell

1:10:23you and then tell you what I told you and have three simple little easy points, I'm actually going to fire hose you with a bunch of stuff. And, and I want you to take notes. And if you if you just grab one major concept that I present today and run with it and you can decide which one it is, it will radically change what you do. It'll probably change the project that you're working on right now. So let me start out with my favorite 8020 story and it's a true story of John Paul Mendoza who is a good friend of mine and he was a professional gambler in Vegas. When he was 17, he dropped out of Catholic High School, hitchhiked to Las Vegas. His mother was not very happy about this, but he did it anyway. And he decided, I'm gonna be a professional gambler and I'm gonna live by my wits and I'm gonna play cards for a living. And so he got himself a fake ID because he was only 17 and he started going to casinos and playing poker. And a few weeks into this, he's like, this is a lot harder than I thought it was going to be. And he goes to a gambling bookstore, and he bumps into a guy named Rob, and he finds out Rob runs a professional gambling ring. And when I say professional gambling ring, I mean exactly that. In all of the connotations

1:11:53that one would normally associate with such a thing, Rob was into all that stuff. and John says so can you teach me how to win more poker games and he says for a percentage of your winnings I can teach you how to win more poker games and so they shake on it and as soon as they shook hands jump in the Jeep John we're going for a ride okay get in the Jeep they're going down the highway okay Rob How do I win more poker games? Rob says, you need to play people who are going to lose. You don't play other professional gamblers, you play marks. You want the kid who's 18 years old and he just inherited $5,000 from his grandmother in Wichita, Kansas, and he just came to lost wages to get rich, and you want to take all that money from all from that kid. And that's who you want to play poker with. And he goes, Where do I find Marx? He says, Here, I'll show you. And he pulls into the parking lot of a strip club, and they walk in. And there are all of the usual distractions that one would find at a strip club, and loud music and bikers and people drinking and everything else and sits down at a table with John and he pulls out a sawed-off shotgun which he carried with him everywhere and he holds the shotgun under the table and he opens the chamber and then slams it shut and it

1:13:36goes and when he makes that noise even though there's loud music and everything going on There's a few biker guys over in the corner. They'll turn around like, whoa, you know, they're reaching for their guns. And the owner comes over to the table, the owner of the strip club and he goes, hey, what's going on over here? And Rob goes, it's okay. We're just teaching the lad a lesson. We're not causing any trouble here. Don't worry about us. John, did you see those people who turned around when they heard that noise. And John goes, yeah. He goes, don't play poker with them. They're not marks. Play poker with everybody else. That is what we call racking the shotgun. And when you rack the shotgun, most people don't notice And some people do, and you have divided the room, and everything you do in marketing is racking the shotgun. You send out the email, some people opened it, some people didn't rack the shotgun. Some people clicked on the email, some people didn't rack the shotgun. Some people signed up for the Zoom call, some people didn't rack the shotgun.

1:15:08Some people came to the $25,000 event, some people didn't rack the shotgun. And the shotgun is getting racked all over the place, everywhere, 24-7, 365, it's being racked by other people. You can rack the shotgun. Marketers are people who pay attention to what happens when the shotgun gets racked because usually it's 80-20. And the next step is usually 80-20 again, and the next step is usually 80-20 again. And one of the most powerful things that I ever discovered about 80-20 is that it's fractal. What does that mean? So now we're getting into the multidimensional J. Abraham kind of world and terminology that is really powerful. So fractal means a pattern in a pattern in a pattern in a pattern. So I can see, I'm pretty sure I can see out the back window of your meeting room, there's a tree back there. Is that correct? Affirmative. Okay. And that tree has leaves. Well, if you stand back and look at the whole tree, the tree has a branching pattern, but but I can zoom in to the branches, I can zoom in to the twigs, I can zoom into the leaves, I can zoom into the veins of the leaves, I can zoom in to the veins of the veins of the leaves with a magnifying glass or even a microscope.

1:16:44And I will see that branching pattern over and over and over and over again at every scale and I'll see it in the roots too, if I want to dig the thing up. Okay, and so that branching pattern repeats and repeats and repeats and repeats. Well, 80-20 repeats in the same way. So 80-20, first of all, before I get further into this fractal concept, I just wanna point out that, you know, Vilfredo Pareto, I'm sure you've all heard of him and I'm sure most people in this room have heard the story of the Italian economist who figured out that no matter what country he studied and no matter what economic system they had, 20% of the people seem to always own 80% of the real estate and the other 80% of the people only own 20% of the real estate, which meant that the haves had 16 times more than the have nots. So most of us have heard that. What most people don't realize is that it's not just in economic rule of thumb. It's a law of nature. It's like a law of physics. In fact, you need to treat it like it is a law of physics because it's inviolable. If you get any group of people in a room anywhere, their incomes is gonna be an 80-20 distribution.

1:18:18And the number of shoes they have is an 80-20 distribution. and the number of watches they have or the number of apartments they own or the number of domain names they own or the number of Bitcoins they own or almost anything is 80-20. And what it is is that 20% of the people have 80% of the stuff, but here's the fractal part. 20% of the 20% have 80% of the 80%. That means 4% controls 64%. But then you can do it cubed. That was squared. 80-20 cubed is 20% of the 20% of the 20% of people control 80% of 80% of 80% of the resources. And so that's 1% control 50%. And you can keep doing this and doing this and doing this until you get all the way up to Jeff Bezos. And 80-20 says it's virtually a law of physics that somebody is gonna be worth a large fraction of a trillion dollars if you have a world economy that's like a hundred trillion dollars. And Bernie Sanders and Hillary Clinton and Donald Trump and anybody else can argue about this all day long, but you're not gonna change the inviolable nature of the 80-20 principle. And it's not just shoes and watches and real estate and domain names, it's almost everything.

1:19:53Basically, every spreadsheet of the business of everybody in this room, it could be your Facebook advertising account, it could be your Google advertising account, it could be your number of support tickets, it could be how much your employees stole from you, it could be how much money that you gave to various marketing gurus or consultants. It could be any accounting spreadsheet like a list of expenses of you had a trip to Denver three months ago and your receipts are 80-20. It's absolutely everywhere. And it turns out that 80-20 is the easiest way to explain almost anything that works in marketing. And so, what I want to do with you today is I want to walk you through three quadrants that you can use to re-engineer your entire life. And I think all these things are pretty simple, but they're extremely profound. And so, first of all, when you understand that 80-20 is fractal, and then almost everything is 80-20. Not everything, but almost everything. You understand that all business numbers are exponential. And Jay's been teaching this for years. In fact, I'm not totally sure, but it might be that the first person that told me that 80-20 was the way that it is might have been one of Jay's books like in the 1990s that I was reading. And I remember hearing that 80-20

1:21:36was everywhere and the customer behavior is 80-20. I think I read it in like 1999 or 98 in one of AJ's old books and I'm like my customers are 80-20 and I print out a QuickBooks report and I sorted them from the biggest to the smallest and sure enough when I got 20% through the pages on that report I had added up 80% of our revenue and then the other bottom of the printout was only 20% of the revenue with 80% of the customers. And I didn't really understand at the time that if I just took the top 20% of the top 20%, I would have 80% of the 80%. And that I was spending most of my life polishing turds, but that's what I was doing. Later, I read Richard Kosh's book, and it suddenly snapped into place. But then I also I saw without really exactly being told, I saw the fractal nature of 80-20. I'm like, oh my word, this is like the biggest thing I've ever discovered. And so what this means is that the value of your time, so this is like a high paid room. Most people you would be talking about making $10 an hour versus $20 an hour versus $30 an hour or $50 an hour. Most people we'd you'd be talking about like those kind of income scales. But in this room, we're talking about, probably typically you'd be talking about $1,000 an hour,

1:23:12$2,000 an hour, $3,000 an hour. But even that is not right. The time, the value of the time of the people in this room is actually on an exponential scale. It's $1,000 an hour, $100,000 an hour, $10,000 an hour, $1,000,000 an hour, $10,000,000 an hour. You might have had a conversation in the restroom that lasted two minutes that was worth $500,000. Well, what's $500,000 divided into two minutes? Well, it's times 30. So what's that? Isn't that $15 million an hour, something like that? That's possible in a room like this. And so we have to think exponentially and we have to realize that a lot of times these incredibly valuable things happen in very, very short periods of time. And most of the rest is filler. And we waste enormous amounts of time. If you take an 80-20 approach to time, you realize we are awash in time. We have an incredible amounts of time. Life isn't short, life is long. Only most people just fritter it away. So I'm gonna talk about three quadrants that I think are incredibly useful. And what the heck? I think I'll use a purple marker for this one. I needed a new way to think about work a few years ago.

1:24:56I realized that we don't have enough words for work. It's kind of like a lot of people in the Christian tradition know that in Greek, you have three words for love, not one. You have eros, which is erotic love. You have phileo, which is brotherly love, like city of Philadelphia, city of brotherly love. And then you have agape, which is unconditional love. And it's really good to make a clear distinction between brotherly love and erotic love. Like, you know, Jay, I love you in a non-sexual way, right? Jay and I have a non-sexual relationship. I love Jay, but not in certain ways, right? It's really good to know that. Well, work is the same kind of a thing. And I put it on axes and I said, let's make the vertical axis, this is productive, So the higher we are in this axis, the more productive we are, and let's make this axis be predictable. So we have the productivity axis and the predictability axis. And if I break work into four quadrants instead of one, I get a very, very useful new way of thinking about work. So, if I have predictably productive work, that's in this upper right quadrant and I call this work ethic.

1:26:48Work ethic says, if you're an attorney in LA and you specialize in shipping tort law and you charge $500 an hour, then you want to spend as much of your day as you can making $500 an hour doing shipping tort law for people who need what you sell and rely on your expertise. And you can reliably make your $500 an hour. And that's work ethic, predictably productive. Okay, then there is, let's go over here. There is unpredictably, unproductive work. And that is I call that sweet life. And that is taking a day off, taking a Sabbath. It is spending time with your family, it's going on vacation. Okay. And by the way, you need that. I think it's a false economy to not do this. I think people that work seven days a week are deluding themselves. It's a terrible habit to be in. You need to do that. Okay. So everybody understands these two things pretty well. I don't I don't think these are difficult concepts. Where it gets interesting is when we get to the other two. So this predictably, predictably unproductive is called barnacles. And what it usually is, is OCD procrastinatory behavior that feels like work and isn't. So hitting refresh on your email box 136 times a day, is barnacles. And, oh, gee, you know, I got seven

1:28:56minutes to this next meeting, I think I'll just get on Twitter and see what everybody's pissed off about right now. That's that's barnacles. And, um, you know, most people when they're anxious, they have activity that they just sort of default to, Like I know a guy who when he's feeling itchy and anxious, he has this habit of going and checking his checking account balance and looking at his credit card statements. Does he need to? No, he just does it. Okay, right. And I would say that most people spend 60 or 70% of their working day in barnacles. It's, it might be sort of productive. It's probably like 10 or $20 an hour work. It's not $1,000 an hour work by any means. And this is where you should steal stuff from. And if you, in order to move it into the other categories, and if you do like a 15 minute time log of your week, you'll find ridiculous amounts of barnacles, okay? a lot of meetings that people go to, or even organize our barnacles, okay? So that's barnacles.

1:30:29Now this one here, the thing I'm gonna put, put this in red. No, I'll put it in blue. Ren is on its time. And that is unpredictably productive work. Yes, I don't know if you can see that here. I'm just gonna put Ren here. Unpredictably productive work. So what is that? Well, it is meditation, prayer, journaling, centering yourself in the morning. It depends on who you are, but it might be going for a run. It might be walking your dog. It might be listening to some music. It might be listening to something inspirational. It would certainly be things like planning and strategizing your day. Most people dive into work ethic right away, and they think they're doing work ethic, but they're actually doing barnacles. So most people start their day, they jump into barnacles right away, they check their email. Checking your email is not work ethic, it's barnacles. Most people dive into this stuff, And you should actually start your day in a creative space. I spend an hour every day doing Renaissance time.

1:32:04I journal, I process my thoughts, I get myself centered, I pray, I do my spiritual practices. It's the best habit I have ever cultivated in my life, bar none. And I think it should be the first hour of your day. But there are other things that I also consider Renaissance time. So, for example, in December, I went to Ireland with Kevin Ham and my son and a couple other guys. And we just hung around and talked and went to restaurants and hiked and enjoyed the wind in the Atlantic Ocean. And then it was I'm having an unplanned adventure with other cool people, and I don't know what's gonna happen, and I don't have to know what's gonna happen, and there doesn't have to be an agenda. We're just gonna do this. That is Renaissance time. Or Richard Kosh, he's the author of the book, The 80-20 Principle. He's one of my best mentors. He has this thing called the super connect principle. And the super connect principle says, if you want a breakthrough conversation, it's not gonna happen with one of your close friends. It's gonna happen with a friend of one of your not close friends. It's gonna be with somebody you don't know that you met through the edge of your network, okay?

1:33:42So look around the room, think of the couple of people in this room that you least know well. If you had lunch with one of their friends, that lunch has a one in 20 chance of being an absolute breakthrough lunch. And Renaissance time is being willing to have the other 19 lunches and not really care how they turn out because you can't control the world to that degree. Renaissance time is doing what you love and doing what inspires you so that it feeds creativity back into your work ethic time and makes you more productive and helps you make discoveries. Renaissance time could be going to a concert. How many of you have gotten a fantastic business idea in the middle of like a concert? Show of hands, please. Or a movie. Or a vacation, okay? So this is important. This is important, steal from this and feed this. If you get to where you spend two to four hours in Renaissance time every day, you will enjoy your life and you'll be more productive. I spend one or two hours in Renaissance time every day and you know, Jay read my bio.

1:35:20You can't believe how many fingers I got my pies in. And I'm productive in all of them because I do Renaissance time. Okay, so that's the first quadrant. It's revolutionary. It's just how you think about your time. And just to reiterate, this is thinking about your time in terms of not increments, but by multiples. I think of my time in terms of $1,000 an hour, $10,000 an hour, $100,000 an hour, million dollars an hour, $10 million an hour. It is perfectly realistic for everybody in this room to think about their time in terms of how many million dollars an hour, at least for a few minutes at a time. All right, next quadrant. So like I said, I'm gonna show you three quadrants today that will revolutionize your life. I'd really like you to use all three, but we're throwing men against the wall. Everybody's got different abilities to absorb things. I don't know what's else on your mind today, but this is one of the most useful things I could tell you. This quadrant here was invented by Boston Consulting Group and I don't know, 50 years ago or something, maybe longer. and I think I didn't learn about this until about eight or nine years ago.

1:37:03I wish they'd taught me this first. This axis is market growth, and this axis is rank, And this dotted line here is a market's growing 10% a year, and this is 0%. So market's not growing, market's growing 10% a year, market's growing 20% a year. And on this side of this line is anybody who is the number one player in the market. So if you're the number one player in your market, then you're here. And if you're number two, you're here, if you're number three, you're here, if you're number four, you're here, five, six, and then you have like all the losers over here. So if you're number one in a market that's growing less than 10% a year, you are a cash cow. If you're number one in a growing market, you are a star.

1:38:44If you are number two, three, or four in a fast growing market, you are a question mark. You might be doing okay, or you might not. And if you are not number one in a market that's not growing 10%, you are a dog. Well, what does this mean? Well, first of all, 80% of the growth in profits is right here. It's the stars. And if stars grow up to be big boys, they become cash cows. And being a cash cow is great, too. And only 20% of any market is stars and cash cows. And 80% of market is question marks and dogs. and it absolutely sucks to be a dog, and it's not too much fun to be a question mark. And really, all of your focus, energy, and intent should be on either being a star or a cash cow. No. Why would you want to be a cash cow instead of a star? Let's just talk about that. Well, the cash cow is like Procter and Gamble. I don't believe the soap market is growing 10% a year. It's not super hot like cryptocurrency and psilocybin or whatever, but you know life is pretty good if you're proctoring gamble. You're making a lot of money. You're maintaining your position. It's actually pretty if you're proctoring gamble it's pretty easy to stay proctoring gamble. There's not a whole lot of probability that somebody's going to come and beat you up

1:40:38and steal your lunch money. You make a lot of money. There's also a lot of smaller entrepreneurs like the people in this room, who they run lifestyle businesses, which are cash cows. Now stars grow. And stars is where the future money is, but stars consume money. It takes capital and reinvestment to build a star. But all of the big companies, all of the successful companies either are stars or were stars and your job your mission should you choose to accept it is to be a star and to figure out how to be number one in a growing market. Now what this means is if your market isn't growing you're in the wrong market and if you're not number one like you don't ever want to not be number one ever being anything but number one sucks. So if you're not number one in a growing market, you need to carve off a slice of your market. You need to subdivide the market to where you are the only person doing that. If you sell antibiotics to pigs and you're not number one, then change so you sell antibiotics to Vietnamese potbelly pigs.

1:42:11And you'd be the only Vietnamese potbelly pig antibiotic guy and then you're a star. Now, a lot of people are afraid to do that because it cuts the number of customers by 10 or by a factor of a hundred or, you know, like, but you actually make a lot more money being a big fish in a little pond than you do being a little fish in a big pond. Okay, so this is quadrant number two And I'm going to put this over here. And I talked about quadrant number three, and then, and then we'll, we'll talk to the group and we'll jazz improvise on this. So, this axis here is utility usefulness, performance, we can say, of a product. And this is complexity, and this is simplicity. Again, I'm reducing everything in business to three quadrants, and I'm giving you a set of rules that's universally true.

1:43:49And they'll be true in 10 years, they'll be true in 100 years, they'll be true in 1,000 years. I really hate learning things that you have to relearn. And I have all people can say that because I'm in the internet marketing space, which allegedly changes all the time. But the important part is it doesn't change all the time. Malcolm Muggeridge said, news is old things happening to new people. One of my favorite sayings. Everything in the newspaper today happened to somebody else last week, last month, last year, last century. The Ukraine war, yeah, this has already happened. When you can focus on the stuff that never changes, then you could write a Google AdWords book and it's still good three years later because you focus on the principles, okay? This is one of these things. So I wanna talk about the way markets naturally evolve and the way the innovators radically change the markets after they've either evolved or devolved. So I've got, so this is low performance, low complexity. This is low performance, high complexity. This is high performance, high complexity. This is high performance, low complexity.

1:45:26So let's make this concrete. So, this is a pocket calculator, I remember I think I was nine years old. So, which would have been in the late 70s. And my dad had a calculator and he showed it to me and I flipped out. Wow, that exists. I didn't know whoa. I thought it was cool thing had green LEDs, really cool. So from the standpoint of our modern computers and stuff, a cow... Thank you, we've been out, check, check.

1:48:32So my Zoom people are mad at me right now. So if you can maximize your 8020 of time, you're gonna blow it out of the water. Next, we're talking about how you can become a cash cow, niching down. How can you focus on a more narrow market so that you can be the star of that market or develop a lifestyle business and enjoy more of your Renaissance and sweet life. The last thing is all of you have businesses and this is how the market works. You go from pocket calculator to mainframe computer to windows. It just there's your team will move your product in this direction. You as a leader have to be the Steve Jobs. You have to find a way to make it simple for your clients to use your product or service. You have to make it simple to be able to buy cologne and perfume. You have to make it simple to, you know, upgrade your computer system in your nonprofit. You have to make it simple to get your tax services. You have to find a way to make it easy and a no-brainer to upgrade your water system. It has to be cheaper, higher quality in your client's mind that clean water will save my baby's life and it'll save me on healthcare and it'll just make me feel better. I'll have more brain power. I'll be able to do more at work because I have a water system.

1:50:02So how can you make it simple again? And when you can do that, you become the star and then you can have your sweet life along with your Renaissance time and everything just gets better. Any questions? I can move. So what are the quadrants? So the first quadrant, I call it the time quadrant or the work. Okay, the bottom one. So it's utility on this access and complexity on this access. And I don't really know what he called it, but so these are not useful and easy, like a pocket calculator. This is difficult to use and hard to understand, like a mainframe computer. This is hard to understand and complicated, and this is easy to use and easy to understand. Any other questions? All right, so my challenge to you is how? How will you do this? Now, don't do this on your own. I want you to do this at least with a dialogue. Find someone in this room, preferably not a business partner, get some new ideas and some new blood, you two, and get some new ideas about how to do this.

1:51:40You become the consultant for someone else in this room. Maybe a couple other people, have dinner, talk it over. But tomorrow, not only come in with, you know, what you learned from all of today, but the beginnings of a plan of how you will do it. And you'll blow Jay away with that answer. Jay, tomorrow we're starting in my calendar at 7 a.m. I'm having some Renaissance time. From there, we're gonna go forward and we're gonna implement project one. We did an evaluation of all these things and we're gonna start out by testing in a simple, easy way, low risk to see what the highest upside is and all the things we have planned so that we know because the market has told us so what we're gonna do that's gonna make us a star. We're gonna take all these complex things that we're doing and we're gonna sit down and we're gonna use that Renaissance time to strategize how to make all this complexity that's inherent in our business a little bit more simple and easier to use for our clients. Easy peasy, right? Awesome. So glad you guys are here. The calculator is simple and low performance. It does addition, subtraction, multiplication, and division, all right? So let's go to the next step, mainframe computers. Maybe it's got punch cards and stuff.

1:53:23It's a lot more complex. It does more stuff than the calculator. It's really hard to use, right? Okay, then what happens next? What happens next is Windows, Bill Gates, PC, and it does a lot of stuff, and it's also complex, because most people who seriously use Windows, like you gotta have an IT guy, you got virus software, you get all this stuff. A Windows PC could do just about anything, but it's complicated, right? And markets always naturally evolve this direction. And what they do is they become more and more capable, more and more complex, more and more features, more and more bells and whistles until they get to a point up here where they're unusable and nobody can manage it anymore. Okay, yeah, I know, yeah, Bill Gates, thank you very much. I know this thing can do like just about anything, but I have a whole platoon of staff that it takes to manage these things and I can't deal. It's driving me crazy.

1:54:56All right, then Steve Jobs comes along with an iPad and a two-year-old in an airplane can watch videos on an iPad and play games and angry birds or whatever, whereas it would take an eight-year-old to run the Windows machine. And this is simplification. And this, this is easy. This happens naturally all by itself without anybody really doing anything special. You just crank out another model, you add a few gigahertz to the CPU, you add some more memory, install some more programs, and you make it more unwieldy, and it's really easy to do that. Governments do that, and hospitals do that, and universities do that, and institutions do that, and the post office does that. It just gets more and more complicated until nobody can deal with it anymore. And it takes a visionary to simplify because what they do is they figure out what to subtract. Steve Jobs took the basic Windows PC idea and he subtracted a bunch of stuff and he got it down to, it doesn't even have a keyboard, it's got a button and a touchscreen.

1:56:45simplifying is what makes billionaires, and simplifying is to a lesser, even simplifying is what makes millionaires. Your mission, should you choose to accept it, is to do this. If we zoom out and we look at everything we talked about today, first quadrant, you cross out barnacles, and you focus on Renaissance time because that's where the creativities come from. You're always trying to carve off a slice of the market that is unaddressed so you can be number one in a growing market. And the way you do it is you simplify something. And in fact, if you take a market that's not even growing and you dramatically simplify it, you will make it grow. You will create a new market. And what I would like to suggest to you is that these are the three most important things that you could be thinking about in business and they're all based on 80-20. You only have to understand how the iPad and the iPhone have revolutionized communications to understand that this was a trillion dollar idea, which made it a star. And where did it come from? If you've studied Steve Jobs, it didn't come from work ethic, it came from Renaissance time.

1:58:26Let's discuss. Jay. All right, very good. So one of the things that let me turn on the lights here. One of the things that I'm going to give you a head start on on the how is that word that he used subtraction. Is anybody in here slightly time constrained? You feel like is, you know, let me ask a question to different. Who has who could give me 50 hours this week? I have a project I need some help with. Anybody? Any volunteers for 50 hours? I know you could do it. So if you, awesome. So two people in the room aren't time constrained. If you are time constrained, then one of the biggest things keeping you from Renaissance time is your time. So what is one thing that isn't serving you that you can subtract? And if you can make that decision tonight, you know, we talk about the decision scientist. That I guarantee you taking something out of your life that isn't productive is a great choice. You know Dr. Bernard talks about it's better to make a wrong choice and then make it right but I guarantee you this is not a wrong choice. Subtract something that's wasting your time tonight going forward. Eliminate a nap from your phone. Just delete it. Just take it off if it's wasting your time. If you have some other thing that's just eating up your time

2:00:11that you don't find the joy in anymore, get rid of it. If you have a conversation with somebody in your life, you can't delete a human, but just let them know now is not the time. I'm working on a project. Let me schedule some time with you two months out, because I can't deal with this right now, on focus mode. So put off uncomfortable conversations with people that suck you dry, but lean into those conversations that add energy. The other thing that happens when you eliminate some of that time is you can amplify your energy. There is a correlation between depression, Alzheimer's, all of these things. I was talking to this neuroscientist from Bonn, Germany on the way in. It was awesome, great conversation. And he said, It's really simple, this whole life thing. It's really simple. If you can amplify your energy, your life gets better. So eat your blueberries, get a good night's sleep, lift weights, you know, do these kinds of things that we all know create energy in the long term. So that's another good investment that you can make that's similar to barnacles that will optimize the mitochondria of your brain, your eyeballs in your heart, which is where there is more mitochondria than anywhere else.

2:01:31You have trillions of them. They're what creates energy. And if you can heal your mitochondria, you will heal your life in ways that may amaze you. You may find that you have an abundance of energy. And when you have time and you have energy, what could possibly stop you? Nothing. it's impossible. Right? So make goals that are unrealistic because this is about, you know, beyond exponential. That beyond is an implication that you go beyond the barriers. So make a goal that scares you right now. You know, find an aspiration that seems impossible. Then ask that question, it's impossible unless, you know, how much do you want to make this year? Yeah, sure. 500 grand. Okay. Double it. It's a million. Double it again. Two million. Double it again. Four million. So now your new goal is four million. You said a year. Four million, six months. Four million, three months. Four million, one month. It's impossible, right? It's impossible. Doing the way you business the way you're doing it. Unless what? Unless I sell more, hire more. What would you need to just sell more? You need to find more people. You need to get more clients. You need to get more leads. You need to keep those leads for longer. You need to maybe find something your clients are doing before they buy a system,

2:03:02during the system buy, after the system, maybe retraining your staff to be, you know, they amplify their route by offering supplementary services. All of those things are possible. And now it may be a reach, but you can hit a million in a year, if you're shooting for four and, you know, three months, right? Because it just opens your mind. So let's get the beyond exponential thinking tight tonight. Talk to somebody. Find out how to use these quadrants to blow through it. Any questions? Any insights? What did you pull from this, from what Perry said, from the day, any insights? Anyone have a transformational moment or an inspiration on how you're gonna do this? That I'm scheduling time to do something and then actually start doing it. And then when you start working on the productive time, you bring your team and that's, you have an agenda, you have an outcome, what you're looking for, you have an action plan when you finish, so everybody knows what they're gonna be doing as well. I don't know if we're gonna be able to get Nick in here, but optimizing information for retrieval is a powerful strategy. And Jay recently did an optimized podcast that talked about how to put your meetings on steroids. What's that saying?

2:04:34No agenda, no meeting, something like that. I don't know, but there's ways to put your meetings on steroids. And if you can't have a plan for your meetings, maybe you shouldn't have the meetings. Is that the only one? No, they're doing a new one. It's called the Optimize. I'll make sure people get a link, but it's with Nick Sonnenberg and Jay and what they're doing is they're interviewing high performing entrepreneurs basically in a hot seat format. And then they kind of do a little rehash afterwards about their thoughts about the interview. So it's real high level about how to help out that entrepreneur. The Optimize podcast is the title. Awesome. Other insights. takeaways, things people are excited about, gonna dream about tonight, subtraction. I was gonna say scheduling more time in the morning and starting the workday first thing in quadrant one. And so maybe going from an hour in the morning, like on my personal life in that quadrant and just adding that an additional hour when I start working in that first quadrant. Yeah, and thinking of what we can simplify, how we can make it easier, you know, like the iPad, basically trying to take that concept and applying that subtracting things to make it easier for our clients.

2:06:07Not exactly, well, just a rough idea, just trying to, like, you know, we do websites and they can be pretty complex. We've tried to simplify it some, but I think I could simplify it more so that there's, you know, less for them to look at and get confused with and just pair that down so it's as simple as possible. Anyone else? Scott, do you see anybody on Zoom that's making a comment? Okay. Anyone else? It's really great. Cause now I feel like I have permission to do yoga in the morning and meditate and journal and walk and walk my dog and contemplate. And I used to feel so guilty because of that. I was like, oh, I should be going to work. I should be, you know. And it's like really there's so much access to power comes from that time and really like gifting that to yourself to be able to connect with source so that you can receive that co-creative energy. Yeah. I have three people on my team. No, they actually, they take the, yeah, yeah, oh yeah, which is great because then it's allowed me to step back and not feel like I should be there and feel guilty.

2:07:39Like let them take over and run their positions, you know? And so they feel really empowered in what they're doing. Like I do not micromanage, you know, but so, but now it's like, oh, I get to be that way. They're leading me into it, you know? So it's powerful. With all my personal power, you have my permission. I move back to over here, but I think that the one thing that really hit me was listening to Perry Marshall and how he said that the 80-20 rule is a rule of nature, that it's physics. But what I was really astounded about is thinking that our customer's behavior is also 80-20. Because that means that all of the leads, I should think that 80% of those are useless, maybe. Or that 20% is what I should really focus on. And the question immediately came to me as to how do I discern the 80, the 20% of those, of all of the leads and customers onto which I should really focus because that is the 10,000 an hour revenue factor and no longer the 1000. If I can discern those 20% of the customer behavior. The thing to remember is that 80% isn't technically waste.

2:09:20That's the ability to send it to somebody else and get affiliate or add to it. So if I had 100 leads come in and 80% are not good to me, I don't just throw them out the window. I find somebody else to buy those leads or I partner with them or I get affiliate money. Yes. Otherwise you're just, you're like, hey, I just took 80% of my marketing money and threw it out the window. Right? Wait, who? Brian's like, I'm sitting down. Scott's got the microphone. Who's up next? So as an entrepreneur, if we analyze now, this first one about the time, Sorry, first one about time, first and second one, those two are not that difficult. If we work on proactively, if I analyze myself, then I have more time on that fourth one. And the first one, Renaissance and that sweet life and work ethic. I'm not into that, that much, frankly speaking, but all of us would be, you know, little here category and a little there but we need to be mindful about that so we can balance that more. Regarding second most of successful entrepreneurs would have you know either in cash cow or in that style yeah somewhere or the other way smaller market or whatsoever but the more difficult I found was the third one that how to simplify the things and which are the things in my business

2:11:04I can simplify it more and more so that to generate wealth. That is, I find it challenging the last one. Okay, who outside one? She's like, me, he, me, and I'm ignoring him. So when I look at this quadrant, it reminds me of strategy and tactics, right? So 80-20, we should put more time on strategy, right? And because of that, in every business, like for example, for my business, we have different departments, right? We have marketing and sales. And sales is really a tactic, while marketing is a strategy. So in order for us to move to residence, we have to first adjust this portion whereby the strategy part is where we will think when we are doing our resonance. Yeah, so that's what I thought, yeah. Can we take a tour, right? Michelle, is there a corporate card? Nevermind. Who else had an idea? KB? I sell a very wide range of products and one of the things that I realized to become a star, I would really need to distill it down more. I'm finding out that whenever I talk about fragrances, it's all the niche fragrance people who want to talk to me and who have a lot to say.

2:13:01The people who buy the mass market fragrances, they can buy it pretty much anywhere. Uh, so, um, you know, my website, my business is services, everybody, but if I really want to, you know, get to the next level, if I can distill that down, uh, you know, make it even more and more niche, I think I could become number one in that market. So you may have two divisions that are both fractal. You can have two that are 80 20 and you'd want to look into both of them. I was thinking about like ice cream flavors and like simplicity. So if you think about it, there's 1,000 different ice cream flavors, but really only three that dominate the market, vanilla, chocolate, strawberry, because they're simple, few ingredients. So our team is paid hourly, so I want to change it to a performance model. But every time that we've tried to implement it, it's been too complex. So people don't understand how they'll be paid, so then they don't want to do it. So just like simplifying the performance pay of like, you get 10% of the job. You know, just something super simple that they can get on board with, so. Anybody else? Really once, going twice. I managed the $50 million sales team doing in-home services. The more complicated the game plan,

2:14:32the more complaints you get. Yeah, simple. The easier you can say, here's my example, here's what it is. The more complicated it is, the nightmare. It is horrible to deal with. Yeah. Yeah, I do a $6,000 install. I get 10%. I get $600. Easy enough. That's common for your industry. OK. Right? We rapping? We heard people. Come on, give me a beat box, everyone. Sing, maybe. Rap, not really. So can anybody guess what Jay did today? He did 80-20 of everything we have to present. He gave you the top highest producing 20%. Most results from these exponential strategies are from what was presented today. He went through 25. We have 97 total. So that's a little over 20%. But based on comments from you, these ones that were presented today produced more results than everything you're going to hear tomorrow in this group. So we were looking at the people in our Beyond Exponential programs, and we've gone through four renditions of this and a half, four and a half, because one was kind of weird.

2:16:10Your results determined what was presented today as the highest producing, most basic essentials. And now some of these things that are presented tomorrow have produced massive results for other people. They are like trust building. Stephen M. R. Covey has done a massive study on trust. It's 3X, flat out 3X. But the thing is, is that trust is embedded into preeminence. If you're preeminent, you will build trust. They are connected. one is kind of a bigger umbrella, preeminence includes trust, preeminence includes being a maven, preeminence includes this mindset of an exponential entrepreneur. So it's the biggest umbrella of everything that's presented. You will probably hear echoes tomorrow of everything Jay's presented. In fact, you have been exposed to every single one of Jay's strategies today. There have been hints, drops, and drips of everything. But the thing is, is that it's so easy to miss. So you're going to hear things from a different angle tomorrow. So listen for those nuances, because those nuances can make you millions of dollars. So again, begin your game plan. Remember the value of subtracting and come back tomorrow hungry to learn something new and add to your list and remember all you need is one and it starts with that

2:17:44one decision executed well again and again and again till it provides you a result and then you go with the next and the next and the next and now you're living in the exponential zone so with that go out have an exponential dinner enjoy it and we will see you tomorrow at 9 a.m. feel free to come in a little bit early, we'll probably be doing a sound check around 830. So if you're okay with a little squeaking of microphones, be early. Otherwise, we will be here at nine. The question is, does anybody need someone to go out with? Like for a conversation partner? Raise your hand if you would like to have a deep dive. Like, I don't want to eat alone tonight, I want to connect, make a difference. If you're like me, I'm going to go home and sleep. Um, but you know, just make sure you're connecting with someone if you can. So again, thank you all. Any other questions? All right. Thank you.