EXLUSIVE! Infomercial Secrets That Made Him a BILLIONAIRE - Kevin Trudeau Disc 02

EXLUSIVE! Infomercial Secrets That Made Him a BILLIONAIRE - Kevin Trudeau Disc 02

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00:00
[Music] what we're basically doing here is just going through a basic workflow just kind of a thumbnail sketch kind of a bird's-eye view first so you can see how the architecture basically draws out then we'll get into the specifics on each one of these areas so after you buy the media the ad runs and when the ad runs you need to take the order taking the order so you've established
00:44
your order method and let's just use a simple method here let's say you only chose 800 number as your order method you're only gonna say no website just an 800 number no mail in a check no fax in an order form it's just an 800 number so you take your order when the person calls the 800 number there's three things to consider the first one is called upsell upsell remember the word upsell remember that word upsell
01:17
you should you should make a card with the word upsell and sleep with it under your pillow you love upsell you love yeah you love upsell upsell is your life upselling is is the breath of life upsell let me tell you what an upsell is an upsell is when you call to buy a product and we will use mega memory as the example when you call to buy mega
01:47
memory so you see an ad we'll just use the example an infomercial you watch the 30-minute infomercial you saw me say this is the course call to buy call the number on your screen and if you call today you'll get a 50% discount off the regular price of the program you then pick up the number and you call hi I'd like to buy the mega memory certainly what is your name what is your address what is your city state zip what is your credit card number and I take your order
02:18
I have your order I have your credit card details the upsell is now I try to sell you something else that you may be interested in this is what's that advance you bought something you you bought the upsell you bought the advanced mega memory so every product when you come up with the product you can't just come up with a product when we look at that product part there one of the other parts of that when we get into that area is when you when you are
02:51
choosing a product to sell you're also choosing what the upsells are so it's really products but we just put that up there for now when I get into the specifics we'll talk about how to do this so mega memory is the product the upsell is the advanced mega memory which gets into more details on cards and numbers good for poker players blackjack players or anyone who has an interest in numbers as well as more on names and faces and so we try to upsell you the
03:24
second package again what are the best ways to upsell should the upsell product be more expensive than the initial product we'll talk about that there has to be a reason to buy the upsell now by waiting there's a penalty actually we don't frame it that way there's an advantage of buying now but actually the motivation is you lose out if you don't take action now it's just called an upsell now the upsell can be more than
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one product so if you call an 800 number and you buy the product they may offer you an upsell and whether you say yes or no they may offer you another product to buy and whether you say yes or no they may yet again offer you yet another product to buy you may be alright how many people have actually experienced this well yeah yeah yeah yeah and you're like how many things they're gonna try to sell me and it's sometimes you hang
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up so there's a balance here there is a balance here where you don't want to piss the customer off right but it's very important and significant that you have an upsell now I'll give you another magic word and a magic word and I'm just gonna use C C is for continuity if you have an upsell that has continuity which I'll define in a moment
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you have an income for life you have a business for life you have a stream of quality cash flow continuity is a product that the person says yes I want and please charge my credit card every month or every other month until I say stop that's what a continuity is continuity provides quality cash flow
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so a continuity product it could be a newsletter would you like the monthly newsletter for 595 a month it's normally 995 a month but if you say yesterday you get it for almost 50% off you of course may cancel at any time can I include that with your order so if you have a an upsell that is a continuity you you have a income stream coming in
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now should the continuity be a big price point or a small price point we'll talk about that when we get into specifics how many people here seen a TV infomercial or heard of a product called Sensa s EMSA dr. Hirsh I know dr. Hurst's not a good friend of mine but I know him he lives here in Chicago I actually met him years ago when a friend of mine named David Bertrand who had a network marketing company hired him to put together a product for weight loss for his company back then it was called the thin pen where was a pen that u s--
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member this tina he smelled member the thin pen we all laughed like what does Google how goofy is this it's like a pen that you take something off and you smell and inhale it it was like you know how is this gonna help you lose weight well it didn't work but because nobody would do this and they felt goofy and smelling these pens and restaurants and you know and you know who took it took months before it started to take effect but he said brilliant doctor and he's a smell expert you know he discovers all
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these different aromas and how it affects chemicals in the body and emotions and silver and so on well he developed this product called Senza that you sprinkle on your food which is a little not as goofy as you know smelling a pin but you sprinkle on your food and it does something with your senses both your taste buds and your smell and affects your appetite maybe metabolism and if you do this for several months things will start to change and your appetite will get normalized and you'll lose weight but it takes time to work so you have to try this for at least you
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know six to nine months because it takes time but it's easy but when you buy the product they ship it to you every two months until you say stop so it's a continuity with me so they're actually their initial product is continuity they don't have to upsell you continuity when you buy the product you're automatically buying continuity same thing with Proactiv under you refer to Proactiv Solution Proactiv Solution is a gutty
08:20
Rinker product and we always kid got the Rinker is the house that Proactiv built because that was their that that is their main revenue and it's all continuity because when you buy Proactiv they're shipping it to you every two months if you look at skin care products on television when you buy them they're shipping to you automatically hair care products you buy the hair care shampoo well you're gonna run out you don't want to run out so we're gonna automatically for your convenience ship it to you
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every two months continuity so continuity is a really big key there either in the initial product or in upselling so just remember that next is what's called lit requests when people call to buy for some crazy reason not everybody buys it always amazed me the ad if you want to buy the product have your credit card ready please call the number on your screen have your credit card ready call to
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order hi may take your order no I just want to get some more information and what more information would you like well I have a question about the product so some people call and they don't buy now there's something that very few people do but we did it didn't we we asked for their address so we could send them some free literature remember the litter quests who came up with that idea right that was an extra four hundred
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thousand a week a little stupid idea that nobody ever came up with I said wait a minute how many people are calling and how many people are buying so we got what to half of the people ain't buying what do we do with those people nothing when we ask for their address this is before emails why don't we ask for their address and tell them we'll send them some free literature so if they didn't buy all we added to the script was well if you'd like to give us your address we'll be happy to send you
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some free literature people like free literature okay and so not everybody did but about 70% of the people who didn't buy gave us their address for the free literature we then it instantly generated a laser letter a sales letter a direct mail piece because now we had a mailing list you with me and we sent it to the guy and we gave him a call-to-action with a time limit which I'll talk to you about you have to buy
11:02
or take action before this date otherwise the offers gone you have to create urgency and by sending these literate and we were pretty money before they let request remember this and all of a sudden we sat ascending the lit request out and it was like this massive flood of orders just kept pouring in and we didn't have a big expense the only expense we had was printing the mailer and the postage of shipping it out so lit request is another way to generate revenue yes I don't remember the exact percentage
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back then but I'm thinking it was pretty high was that like maybe 10 or 15% it was something goofily high right yeah yeah yeah matter of fact I think was in the 20 percentage because if you do direct mail I mean you want to be able to make money at under a 1% response if you could you know I mean that you don't get a lot of people to respond so you keep your cost down Marc Hamilton for example is an expert in Direct Mail and the way that you know they keep their
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company profitable is the the cost of list acquisition and the cost of producing the the actual mailing piece they actually source the printers to make sure that their costs are right at the rock bottom some people just go to you know any printer and you know don't get a another quote well he can say 50 to 75 percent by really doing some hard shopping and that's the difference between profitability and not profitability so you don't get a big response but we got a pretty big response there it doesn't matter what the response is as long as its profitable you know if you look at okay
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here's my cost of printing the direct mail piece here's my cost of the postage and the handling cost of the company that's gonna send it out so let's say it cost 50 cents or 75 cents per piece all that matters is if you send out a thousand pieces at a dollar a piece that's a thousand dollars if you're bringing two thousand dollars in sales you've made money right because after you subtract a thousand dollars for the postage and all that stuff plus the cost
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of the product and then the fulfillment you made a nice profit which we'll talk about that to call our life okay so lit requests now at this point when you take the order there's a big big circle up here called stats my favorite thing in the world right Tina the stats stats stats what are the numbers one of the numbers what are the stats what are the stats what are the numbers what are the stats we're the graphs I want the stats
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everything is about the stats people talk about mmm well this is happening and that's good and that's bad you know in different technologies of business management you know l ron Hubbard has technology there's a great book called speaking from experience and there's some great information and techniques that are helpful in business one is most people speak in generalities
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we have tons of customer service calls tons like a ton like if you if you printed each call and put it on a pallet of weigh a ton tons were actually more than one so we have tons no we have a lot a lot a lot what's a lot well I don't know the exact number well how do you know it's a lot well because our customer serves many just said we have a lot but what does a
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lot mean I don't know well let's find out do we have a lot of customer service calls yes why is it a lot because it was more than yesterday how many do you have yesterday we had one how many you have today we have three and how many customers we have 10,000 so we have next to nothing do we now this is a real case scenario because this is what happens in
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business when you actually get the stats when you actually get the true facts nothing is ever as good as it seems or as bad as it seems you got to get specifics now here's another example somebody says we have tons of customer service calls customer service calls are way up way hold on a minute what are the specific numbers well I can give you this bit and then
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this actually happened I can give you this specific something must be wrong because our customer service calls are way up okay what are the numbers last week we had a hundred customer service calls this week we've doubled we have 200 okay last week how many products did we sell well we sold a thousand okay this weeks how many products did we sell
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10,000 so we got sure I got the straight we sold 10 times more product so we have 10 times more customers but our customer service calls only went up twice so our customer service call percentage rate actually went down pop the champagne you thought we had a big problem instead we have a huge victory here don't wait to understand see how you can look at that it's really about analyzing the data
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correctly makes sense so stats is important Tina do you remember we tested a show Ellen cried Minh remember this game ever this Tina do you remember what happened with Ellen Cribbins test and when the stats came in do you remember this well we tested Ellen cry Ellen crime was a show which had a product on
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relationships and I remember getting Ellen crime ins statistics I remember having Jeff look at the numbers remember and he said throw the show in the trash remember he said I'm looking at the stats throw the show in trash it didn't work and I said let me see the numbers and I said this is a home run yeah over a hundred million dollars just
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one year yeah we had four in the top ten no one's ever done that before yeah no one's ever done that before four at the same time and we could add more but I would like to work that hard but the point the point here with stats is I'm going to show you how to look at the numbers because there are ways that I look at the numbers that nobody else
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does and if you look at the data properly you have a home run and make money if you look at it incorrectly you throw a winning ad in the trash Ellen crimen would have been thrown in the trash and I think we must did about 40 or 50 million and with just that one show alone over the next couple years right I mean it was a home run ciao but it was about to be thrown in the trash and instead you know tens of millions of dollars not all in profit of course in
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sales so you take the order next yes oh the members the question is how do you look at the stats and what was the misunderstanding what I looked at at that time we were running what was called a soft offer infomercial which meant there was no price given on the screen so people had to call all they knew there was a discount but they didn't know what the price of the product was so they called and the
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script was written so that a certain percentage of the people bought the the the product so what I looked at was the percentage of people that bought at the price given all I said was all you have to do is change the price a little bit and add in the money from the lit request which he didn't add in and the show is profitable so to me it wasn't he didn't he just didn't even add in the lit request money it was like they
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didn't exist but we knew we were gonna get a certain percentage of that so I still needed to do another test to verify but the point is I look at and go no this is not dead all you need to do is change the price because I had enough data and I have a good memory I had enough data which said when you have a price let's say that your price is $49 and you get 40% of the people buy you raise it to $59 you get
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35% of the people buy you raise it to $69 you get 30% of the people buy you raised it to $79 you get 25% of the people buy you raise it to $99 you get 22% you raised it to 199 you get 18% now if you look at some of the math here you can see that at some point no matter how much you go up you're still getting the same number of people to buy you
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with me so I know those calculations and they're not set in stone but there there's some basic basic math there at a certain point it doesn't make a difference if it's 199 or $2.99 or 399 a certain percentage you're still gonna buy it you with me and so in terms of pricing which we'll talk about how do you establish a price and and so forth this is part of some of the little little tricks again that very people know and it's it's not that hard just
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like Wayman I had a guy one time a friend of mine who's a psychic and he's a psychic reader and he works all day long he does radio shows and he reads people and he's pretty mesmerizing you know I don't know he's a fraud or not but he's pretty mesmerizing and he's entertaining his help and I've seen him do some pretty amazing things I assume you know completely miss on a bunch of things too but I've seen him do some pretty amazing things but he charges a fee for his psychic readings so he's at
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my house in California and he was talking about how he's working so hard and he's struggling financially and doesn't know how to make more money in him and I'm talking to him said well you know obviously you read people all day long right yeah six or seven hours a day I'm doing readings and I'm trying to figure how to make more money and so where and so on I'm like well you can't do any more readings no why don't you just raise the price well some people won't be able to afford it I go I'll tell you what let me ask you a question if you doubled the price
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and half of the people quit getting readings this is hard math we just make the same amount of money and work half the time he was like yeah I guess so I go double the price he double the price coming back and goes you were wrong half the people didn't quit only 20% quit I go so you just made a heck of a lot more money and you reduced your workload by 20% because it for a lot of
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people they couldn't afford a 20% couldn't afford the increase but for the rest they still saw the value that they were getting so they said okay fine I'll pay because I I feel like I'm getting value that makes sense so when you're dealing with pricing there and that's to be the answer is how do you read statistics and I'm gonna show you how to do that okay any other questions on taking the order it's pretty straightforward call comes in you take the order one other thing about taking
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the order by the way will add this over here is process the credit card when you take the order you have to process the credit card and next to process the credit card what happens to some credit cards they get the they get declined so or they're invalid somebody wrote down the number wrong or something so you have to do what's called an invalid and to climb
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recapture and I can tell you this can be a lot of money I remember one time I kept asking people what are we doing with invalids and decline so we would do with imbalance and declines oh you know not a lot you know we're making so much money didn't like if nobody cared about money just being left around right and so I mean you don't want to work that hard I mean we're making we're making so much money didn't matter but one day I said you know I need to put together a chart and so I want a chart that looks
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like this I want it weekly and I want a line that shows the the amount of the amount dollar amount of invalids and declines not recaptured which means the person credit card came up invalid and decline and we never got it approved and a one at week-to-week and I said start it from eight weeks ago
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I want a cumulative cumulative number and give it up so they put this chart on the wall never forget this put this trout on the wall for me very pretty chart that was the number we had to come to Jesus meeting in the office now that's not all profit but guess what 70% of it was profit because every
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expensive was already factored out into the other business all you had to do was collect the credit card and ship the product at this point there was no other cost so even if you have a thirty or forty percent cost of goods the rest is pure profit now some of them you just never gonna collect you can't collect every one of them because some of them just you know the card comes up declined because they're maxed out and these people are insane they buy non-stop and they just you know don't have any money so they call fifty people a day to buy but they just said how many money left on their card and
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some of the people it comes up decline and then when you try to call back they go I don't want it anyway so I mean you're not gonna collect at all but you can collect a big percentage of it so this is an area that you you can't forget because this could make the imagine we were making so much money that this didn't even faze us but imagine that we were at break-even this is our profit isn't it imagine if we were losing twenty or thirty percent on
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our investment this could made the difference between a losing campaign and a profitable campaign so every area here is very significant and important yeah there's two waste questions about when do you process credit cards there's two ways to process credit cards when the order comes in you're calling me I get you on the phone let me give you a take down your name or address who said your credit card I hold on one sec let me just get an authorization that's the ideal way to do it I got you on the phone right now I'm
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getting the authorization oh it's coming up declined do you have another card that's the best way but sometimes you can't physically do that especially if you're going through an automation system sometimes the card gets collected and then later that day it gets processed and then it gets kicked out if it's an invalid number or a decline number so ideally if you're doing this all yourself you do it right then in the real time okay next is you ship the
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product the first question is what does the box look like does it looked like it was put together by a boy scout does it I mean when it arrives to the customer does it look like it was shipped by a fourth grader how many people have ordered something and you get this in the mail and it looks like it was shipped from a fourth grader right does it how does that make you feel about that company you're dealing with it's like who's
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shipping this I mean this is like it looks horrible it could be the cheapest package in the world so you have to be concerned about your image to the customer the customer is buying this product when it arrives what does it look like does it look like value there's a look like you're dealing with the legitimate organization so we want to make sure that box looks good or whatever shipping container you're using you could be using an envelope a padded envelope and the cost is also significant you have to make sure that
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this you know the costs are have to be looked at next question is what is on the outside of the box is it if you're selling a sexual enhancement product you don't want to put enclosed is your sexual enhancement product I mean tiny you don't want to do that right clothes are the x-rated video tapes that you purchase so what do you put on the
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outside enclosed is your mega memory do you put a return address do you put a website what do you put and it varies per product sometimes you want to play an envelope sometimes you want to promote the product if you have a website put it in big bold letters everywhere if you have a logo like we have the Trudeau approved products I'm sorry we have the Trudeau approved
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products now we have this Tudor approve products brand which is here and this will be for the for our vitamins and different products so this brand is something that we want to start promoting so we're shipping products in our next run of boxes and and so forth you're gonna see this as the biggest boldest thing because this is the thing that we want to get out there and expose in terms of getting this kind of in people's face as a oh that's a good symbol like a Paul Newman brand or something it's a brand so you may have a brand that you want to
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promote or you may have a website that you want to promote but you can use this it's very inexpensive its cost next to nothing but it's something that most people don't even think about so it's the Box next it's called bounce backs what does it bounce back a bounce back is when you get the product you get the box but you just ordered right you get the box you just order the product the box comes or the padded envelope and you
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open it up and there's the product that you ordered what else could be in there what else have you seen in an envelope or a box you order something from television or you order something from a company and it comes and you open it in addition to the product what else coupons specials inserts a cat congratulations letter upsells basically what is generally in there what you
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should consider is number one you want to have a congratulations letter something that resells their purchasing decisions so you don't get a refund so the first thing you always want to consider is having something in there that reaffirms that they made a good decision so it could be a letter saying congratulations on making the wise investment in the Mega memory home study course hundreds of thousands of people around the world just like you have been
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tremendous benefited tremendously here's what some other people have had to say and put some testimonials there something that again resells that this was a good choice this was a good decision okay that'll reduce returns but the second thing which is what bounce-backs is is you have the ability now to put something in there which sells another product a bounce back is something that
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sells another product and I'm going to give you three options option one is something on paper it could be a letter it could be a flyer which sells another product a catalog something on paper next it could be a CD in the CD is some audio of someone talking selling a product yeah well
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guess what the third one could be DVD a DVD actually it could be a cd-rom too I suppose for a computer but generally it's either audio video or print those are your three general ones I mean I guess somebody could say well let's try a flash drive or I don't know what these are but I heard something to do with a computer but generally what I know is
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either a video which videotapes are no longer in vogue so it's DVDs cassettes are no longer involved so it's CDs or some type of print selling another product and it can be one product offering in there or multiple how do you know guess and test sometimes putting more than one offered diminishes returns because when you open up a package and there's ten flyers in there for ten different products you don't read any of
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them but if there's one fly if one product it allows for focus right and so sometimes that works much better but it's cheap you don't have postage so bounce-backs is very important yes yep yeah what happens is when you test anything there are ways to what's called track the results you track them by either 800 numbers various ones you
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track them by codes by order codes so there's yeah - there's ways to track and you'll never get 100% accurate but you'll get ninety-five percent which is good enough yes help me with that question again
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yeah so I is the question in terms of a bounce back like if I got this in the mail and it opened it up and then it was a flier saying because you purchase mega remember you can buy this how the product of the discount good example you're looking to improve your memory yeah well anything to do it
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in memory for example what other products could be it could be any any type of personal development because this kind of falls into the personal development range so anything to do with personal development whether it's books audios seminars or video material DVDs anything with personal development or education or even health I think would be appropriate for a purchaser of mega memory so if you purchase mega memory to me the demographic is somebody who's interested in personal development
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self-improvement education maybe health maybe maybe making more money because a lot of people buy this because they want to do better in business so that would be the angle so if I made a deal with a company that sold those type of products and said why don't you put a catalog in here and offer to my buyer a discount and then have some type of affiliate program with you where they pay your commission yeah but are you asking is it is this are you asking is the call to action in
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the ad or the call to action on the on the phone to add in as a reason to buy now this other advantage that's discount the connection right and because I have purchased this of course of course yes yes yes the answer is when you do a bounce-back just like when you do a direct mail piece there has to be a call-to-action in there and that call-to-action has to include a reason to buy now there's gonna be some
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incentive so if you get this in the mail and I chose let's say to include a flyer for mega speed reading and mega math let's say and the flyer says mega speed reading normally sells for $299 and mega math normally for $299 that's 600 dollars but if you order both within the next 10 days you can get them for just 159 okay that's yeah so but that yeah that's a standard what we call a
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standard call-to-action urgency close it basically is a call to action giving someone a reason to do it now with the time on it so we always do that and when we get into some of the specifics I'll show you exactly how we do that okay yes yeah use the word joint-venture yep have you recommend selling you know it's let's use Michael's example he had an offer for mega memory the customer lot
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member of mega memory however in the package is additional collateral hopefully with a call to action that is not your product exclusively it is rather a business partner selling an allied product of which you can make a percent clearly it's not a gratuitous partnership or something in there for everybody what has been your experience in that or is that something that we would probably want to do after we have some level of experience and
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profitability under arm good question the the question is about bounce backs and when we focus on this right now again we just kind of painting in broad strokes but only answer the question yeah but when we're talking about bounce backs there's a lot of different kinds so again we use mega memory as the example so when I sell and put this in the package I'm gonna ship it to Michael I want to offer him something else if I have the ability to buy mega speed reading and mega math and also own that
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product and make a big margin on it then I'd probably put that in but let's say I didn't have that option but I found a company that has brainiacs it's a you know some to other type or a photo reading oh I so I call the company photo reading and say listen I'm selling this product mega memory can you put your direct mail piece for photo reading in my package with a with a specific 800 number that's exclusive to my package so
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if somebody calls that 800 number and buys you know it was from my package and if they buy can I get 50% Commission they may say sure because of course they would do that because they don't have to pay if they don't make any any money so yeah you have the ability to make deals with other companies they produce the ad which has already been proven to work they put it in your they actually send you the the the printed material all you do is insert it
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in your box they have an 800 number or a website or something that's exclusive to you so that you have tracking they collect the money if the person buys and they pay you a commission yeah the answer is when to do it what the returns
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are is guess and test and because it's good yeah because nobody really knows because every every flyer is different every offer is different every price point is different every product is different and every customer is different so when you have a campaign then you look at the various options and it all it all comes down to how fanatical you want to get in terms of testing and squeezing every nickel out of a campaign I was never a guy who wanted to Santino will tell you I never wanted to squeeze every I never tried
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that hard right I mean we just said this is I mean there's enough right there's plenty so if something worked maybe there was ten things that work better but it worked good enough and why spend all this time and effort trying to test all these and I know other guys I have a guy a friend of mine named Ari and him and his team man they that's all they do is figure out how to squeeze every nickel now because of that their campaigns last longer you know because they're maximizing every single cent and so they'd be a run is
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longer mine maybe maybe was shorter by six or eight months but they were usually so profitable on the front end it didn't matter you know so the answer is when we get to this point I'll give you all the different parameters and again you're looking at you know how can you make the most profitability so that you can you know run run your ads and and again it's all its dependent about about it's also dependent with the amount of work and effort and detail you want to get into it again I have friends like my friend Ari
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who is just fanatical about the script and actually every week he's testing a tweak on the scripting and a tweak on this and a tweak on them and the price he's tweaking constantly tweaking you know constantly he never just you know runs it and sits back on the on the French Riviera he's just constantly tweaking and then I have other guys who if they if they hit something that works they go fine and they just run it for as long as its profitable and when it slows down then they've gone to the next one
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there's nothing there's no right and wrong there okay so you ship the product now when you ship the product you get the Box you get the bounce back there's a couple other things that are going to happen is you've got returns you got two types of returns first kind of return is wrong address bad address so what do you do if it's a bad address yeah call them back there's
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gonna be some type of recapture method it all depends on the volume of dealing with you know because you know you have to call the customer do you email the customer do you have their email address do you you can't send them a letter because it already came back right so the the address it must be no good so you know what what do you do you've already charged their credit card so you you want to get them their product so what do you do generally a call or an email or there's some type of recapture method the second type of return is somebody
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who returns and wants a refund they don't want the product anymore we get products back completely unopened just the box is just your return to shipper it's never opened call buyer's remorse you know they buy the product and they want a refund I'll give you the rule here's some important rules one of the things that goes unnoticed except with
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my customers which is the only thing that really matters the customers who brought products for me over the years not just in America or Canada but all around the world they know that if they want a refund they get a refund there's never ever been a customer who said I asked for a refund for a Kevin Trudeau product or a Kevin Trudeau enterprise and didn't get a refund everyone always gets a refund years ago I learned that there are two
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rule to rules and business rule one the customer is always right rule 2 if the customer is ever wrong go back and read rule 1 again the customer is always right customer wants a refund give a refund I remember one one guy said that a letter saying I bought mega memory but my house burnt with mega memory inside it so I can't send it back to you please
48:44
send me a refund we sent them a refund we had another guy who bought mega memory sent a box back and I opened the box in the Box had copies of mega memory a copy of the mega memory workbook and a copy of the cassettes he had duplicated he had photocopied the workbook and he
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had made copies of the cassettes and he had told his wife to send back the mega memory for a refund because he figured he could just copy it and get a refund and still have mega memory but his wife sent back the copies not the original it was a no saying please give us a refund we sent him a refund with a note saying please keep mega memory as a gift for me actually two months later that customer sent me a check I think it was four at
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the time maybe two or three hundred dollars and he said what happened he said you know he explained that his wife made the copies and you sent me a check and I couldn't believe it and I went through the course and felt so guilty because the value was so amazing that I I'm sending you a check now for you know what I think it was three or four times what the price of the product was but treat the customer always give refunds never question a refund give the money back refund refund refund if somebody
50:23
wants a refund I've been in business with a whole bunch of various companies and different organizations but selling things through direct marketing since 1989 on television the people forget I started Direct Marketing say he's 75 selling stuff through direct mail so I have a long history in Australia the Department of Fair Trading did a big investigation years ago because I was involved with a guy named Rene Rifkin who wound up gonna be suicide sadly enough he was kind of the Donald Trump
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of Australia and we had infomercials running and I was on the world master of the business program back then with Bob Rene Rifkin with general Norman Schwarzkopf and President Gorbachev and we traveled around and and we got good press and bad press and we were on infomercials doing a lot with MECA memory and and the Rifkin report which was a stop trading report and so the Department of Fair Trading because of Rene and me did the big investigation
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you know what's going on and at the end they investigated all the direct marketing companies in Australia and this report came out and it said the number one company the number one organization in direct response marketing that has the highest customer satisfaction rate was our organization we had the number one highest customer satisfaction rate nobody came close and I believe in the u.s. we have the highest or one of the highest customer
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satisfaction rates of all time when we based on a couple statistics number one the return rate of products that I've sold is if not the lowest certainly one of the lowest in the industry's history which means people like the products we sell and don't feel misled in the advertising government thinks otherwise but the fact of the matter is people who buy the product they like the product it's really annoys them but it's true we've actually liked the product and secondly the number of repeat customers
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we have so when a person buys mega memory for example or the natural cures book will they buy something else that that has my name on it and the answer is it's one of the highest repeat customer rates in the industry which means people liked the product and they liked the way it was presented and they feel that they got good value from it so there's a high repeat rate and these are factually documented you know pieces of statistic which you know makes me feel really good but it also is something that's
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important so if you know this is all saying if you want to stay in business deliver what you promised if you want to prosper in business deliver more than you promised and sometimes that's impossible to do based on circumstances beyond your control and different factors that come up I mean sometimes things just come up that you just don't anticipate and with all the best intentions things just don't work out and when that's the case and you can't make it you know can keep an agreement just take responsibility and try to work it out and you'll find that people are generally very understanding and will
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work it out with because they understand things happen you know there's no hard feelings and as long as things get resolved things get resolved sometimes things don't get resolved I remember Eastern Airlines anyone here remember Eastern Airlines hey I had friends who bought tickets on Eastern Airlines shut up at the airport one day and they had filed bankruptcy and their tickets for their vacation of a lifetime were worthless it couldn't be redeemed on any other airline the airline went out of business and so the purchase was hey you can't
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sue the airline they're out of business they I mean things sometimes don't work out no no bad intention but in that case I always said there was bad intention they were selling tickets the day before they file bankruptcy they knew they were filing because they had the attorneys working on it I mean what's the scam there I mean come on that but I mean there was bad intention they knew that those people were you were stealing those people's money they knew it you
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know but what could but the other side is quick what could you do oh we're gonna be filing bankruptcy in a month you couldn't do that either cuz then you put the company out of business before you fight you follow me so it's really a catch-22 and unfortunately those people got hurt the point is in business the customer the customer the customer it's always about the customer and you try your best work it out try to go slow sometimes you go a little too fast things get a little sideways be honest
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upfront and address it and everything will be fine as long as your intention to are pure and correct okay so ship the product you get returns you get the two types of returns return number one is bad address or return number two is the customer wants a refund and you always refund on the money it doesn't matter I had one guy send me Tony Robbins product and he said I want a refund we said this is not our
55:47
product I mean we called the guy I'm sorry this is not our product I demand a refund how much did you pay did you pay by credit card a check check we'll send you a check and we send our free mega memory I mean to me it's like what are you arguing for you you with me to me it's like this is a good opportunity to make a new customer he'll figure it out maybe and if he isn't well he's you know you know we have had
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customers say I lost my mega memory can I hit please have a refund and generally when you when you process a refund if you paid by credit card we have to give you a refund via that same credit card because you could charge it back so we have to give you you know if you pay by a credit card you get a credit card refund if you buy pet check you get a check refund if you paid by credit card we have to issue the credit to that credit card that used so a guy says I lost my mega memory I want a refund we said fine did you pay by check her credit card I can't remember okay you
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remember how much you paid I can't remember I'm thinking you need the mega memory more than anybody it's true story okay remember and how did you lose it I forgot right buddy true I'm not making it up I'm making it up I said fine let's just send the guy a free mega memory send him a check for whatever the highest price we've ever sold it for and call it a day I mean don't you think that's just good
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business it's just it's good business just I I give away just on the guy free book right right Tina setting send I'm afraid crazy and give his money back to him to keep it you know just ten I'm a free one I'll sign one and send it to him you know I mean just you know anybody wants to read because it's such a small percentage is it investment in goodwill yeah but the point here is you know it's really about the customer and you're never gonna be a hundred percent perfect and you're never gonna please all the people all the time you're kind
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of someone's gonna think you're a bad person there's nothing you can do nothing except the best you can do and always try to do a little better than that so you ship the product next now you think you're done you ship the product well this we're not done yet there's a few little things here it's called database marketing because now you have a customer you have the
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name and address maybe an email address of a customer and you have the ability to market products to this customer via database marketing what kind of database marketing well the simplest method the least profitable no risk is simply rent the mains there's what's called there's there's houses that specialize in
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mailing lists these are mailing lists houses that call them and they specialize in mailing lists because if you want to produce a direct mail piece you need to buy a mailing list so you'll call one of these houses and go look I have a product called mega memory so I'm looking for a list of people that are interested in self-improvement or personal development oh sure we have a list we have a list of people that have purchased other self-improvement courses
01:00:00
so that's a list you may want to buy to sell mega memory so if you sold a mega memory to a customer and you have a thousand names you could go to this mailing list house and say hey I get a thousand names here of customers who bought the product mega memory you may have some customers who are interested in renting this cell some month type of self approval of course they go yeah let us manage your mailing list and we'll rent it out and we'll pay you a certain
01:00:30
amount of money when we rent it out it's not huge money you can do this through a brokerage house they take a big commission or you can get on the phone and be your own broker and figure out you know who out there may be interested and say hey I got a list of names and you'd be interested in getting the names because if you do it that way you get more money but it takes more time and effort again it's not huge money but you
01:01:02
have to know that it's a dare next you can direct-mail the list which means you have names of people that bought mega memory and I'm using that an example it could be any product for those watching me the video any product that you have you have names who bought your product so you can now develop a direct mail piece for another product that you own or are you control or you mark it and you can mail it to that list and you can take the orders and chip the
01:01:41
product so you can mail that list an offer on another product or you can joint-venture you can find somebody who has a product and saying I get a mailing list you want to rent the list or if you mail your item to mine I want to split the profits somehow so you can do joint ventures like that okay very effective takes some time to negotiate these deals and so forth but
01:02:13
it's there next email if you're selling these days you usually try to collect email addresses so you can also email these customers with an offer for a product that you have or you can join venture with somebody else and saying hey you got a product I have a list what if you email my list but we split the profits 50/50 that's very workable because if you had a product and I had a list and I said
01:02:55
hey I'll let you send an email to my list and we split the profits 50/50 why not the sum we're splitting the profits 50/50 right I mean it's a no-brainer right so let's look yeah happy day right so that can work so email there is no standard my personal standard my personal standard is I like 50/50 deals as long as it's 50/50 or pretty close
01:03:28
you know yeah I mean I'm not a big squeeze negotiator and Tina knows me probably you know longer in terms of you know I would like you to make a comment on this in terms of dealing with people in terms of am i hard negotiator am i generous with with sharing revenues and things how would you describe it everyone I they've actually people that see given their search don't you guys he just
01:05:10
spent some money along because everyone it would not see that maybe just bothers me so much because none of them have done what is done yet they time to take the credit they have done with partners well I I appreciate that that's okay I'll let you I got I got time okay thank you the the the point is there is no starting point and this is a very good point about negotiating I'm
01:06:11
not going to judge anyone or give you any direction I can just tell you what works for me and this Tina knows when I make deals with people it takes about 30 seconds to make a deal with somebody right it's like what works for you and I said that would be a blame and call them BA I go by KT when I sit down with Blaine it's like what do you guys want to do and about this fine if you want to change it later if it doesn't work we'll figure it out later I mean it's just like no big deal because there's so much money who cares you know we can make more tomorrow it's
01:06:41
a it's a renewable resource you know see people who don't think it's a renewable resource are always trying to steal and trying to grab and try to control and try to it's like no no we will just do it again tomorrow who cares you know it's not like you know I build something up it's like the ability to create it never goes away right if I just create more you know it's just create more if you don't like what we're doing then barks out your own gig you know I mean you're so good good start your own I mean what's the point
01:07:13
I mean fine well I try to steal this just golf into your own so I've never tried to steal somebody's product like mega memory mega memory is an interesting story by the way I went to Harry Lorayne the Dean of memory I had been brought into the memory training business by a guy by the name of michael van masters michael van masters was trained by billy burden who's another memory expert these guys go back to dr. Bruno first back in the 20s I have a book in my library from the 16th century on memory written in
01:07:45
France in French that was brought into the memory business by Michael van masters who was trained by Billy burden Billy burden was trained by Harry Lorayne and knew Jerry Lucas the ex Knicks basketball star and Ohio State star back in the cell who wrote the book had to have a superpower memory back in the 50s actually and then the memory book in the 70s so before I went on TV I was teaching live memory training seminars and I went to Harry Lorayne in New York go into his house in New York I called him and I said listen I want to
01:08:15
basically sell mega memory I want to produce a memory improvement course and I'd like to have you involved since you're the Dean of memory and I'm gonna be more than willing to pay you a 5% royalty to use your name and he said I want 50% of all the profits and I said that's not a this is not a 50/50 deal so I like 50/50 deals if it's 50/50 I said mr. Laraine I'm already I'm doing millions of dollars in memory seminars
01:08:45
now and I'm doing this memory business now I'm not starting it I'm doing it now I'm here almost out of like homage and pilgrimage to the Dean of memory who I've never met before I'm doing millions of you you with me I'm doing millions right now okay I'm sitting down I'm doing millions of dollars in bits right now I'd like to give you 5% royalty just because of who you are and he said I want 50% of the profits as for what well
01:09:19
you wouldn't have what you have if it wasn't for me huh I said well actually if you want to go back in time dr. Bruno firsts course it was before you so you learned your stuff from dr. Bruno first he was a fraud but your it's not your memory techniques the dr. Bruno first in the 20s wrote the book stop forgetting
01:09:49
and put together the Bruno first memory course which is where you learned it from you just happen to popularize it with the Johnny Carson show and I'm here just kind of want to pay you 5% you want 50% of the profits you're taking all the credit when you should be given the credit the Bruno first he's just happened to be dead otherwise I'd be giving him the five percent so that negotiation went nowhere he won't even talk to me today Harry Lorayne I tried to buy one of his courses just to add to my library he called me actually sent me an email said I'll
01:10:20
never sell you one of my courses but the point is negotiations with me are fair and I thought walking into a guy that I've never met before and say I'm just gonna give you 5% on business that I've already created before I ever met you just out of you know kind of an accommodation I thought the guy was gonna you know you know buy me dinner and be like over the moon thrilled steady you you with me so the point is about negotiation deals I like to be
01:10:50
stupidly fair but that's just me other guys want to squeeze and win and that works for a lot of people as well Donald Trump for example is not ridiculously fair he's ridiculously hard in negotiation same thing with with Merv Griffin Merv Griffin was a hard negotiator nice guy hard negotiator and when the deal was done and not it didn't necessarily was a win-win it was a win it wasn't it you got screwed I made
01:11:23
money but you understand the difference so never ever go into a deal where you know the other guys getting screwed and you're winning but some of you may feel very comfortable going into deal where you win and they kind of do okay and there's nothing wrong with that I like to go into deals thinking look you're doing fine I'm doing fine there's enough to go around who cares because because I know I know my ability to create say
01:11:53
everybody else fears their ability to create and that's why they can't create they were going to milk another one thing because they think we'll never get it ever again and that's fear they think this is the last thing I better steal this I better grab on to this I better get as much as I can because there's nothing else nobody will ever put this together and my thing is what are you talking about there's gonna be a hundred million opportunities in the next 12 months this is not the last gig it's not the last deals not the last opportunist
01:12:26
way when even those of you who are here if when you heard me promote this and you know inner circle and different things I always say it's okay if you can't get in there's plenty of things coming down the road there's opportunities all over the world for everyone it's not the last opportunity of a lifetime you know there's plenty of opportunities bein are never-ending you know they're never-ending you think all opportunity stop you know it's like this there's good ones better ones greater
01:12:57
ones there's so many it's ridiculous there's never ever a need to worry about opportunities being presented in front of you the challenge you'll have when your mind sets right is picking one because there's so many it's just all over the place so in terms of negotiating deals I like things that are real simple and if you've got a product and I got a list and I say if you have a product and an email and you mail up to
01:13:28
my list let's just put the profit 5050 I think that's fair shake and if there were if it was the reverse and you have a list and I have a product what's wrong 50/50 I mean I think that's fair somebody else may say no it should be 75 25 I don't care that makes you feel better okay fine I mean who cares I get you know you you understand the difference you're squeezing as a matter
01:13:59
of fact if you do that I win even more because I think yeah my energy and my lack of fear of needing to make that money it's gonna make me so much more money than you it's ridiculous so you just made me more money by squeezing some more to me and me saying what do I care yeah let's say they put it in their flyer list and at the same time you put your
01:14:34
flyer well it could be a clash of egos but when you're when you're it's called cross promotion and it happens a lot of times and it can be very effective we have two products that are not the same but we're hitting in similar markets and let's just crash cross promote we caught it's called cross promotion you can cross promote in terms of upsells you have a product I'll upsell your product on on my campaign you up sell my product on yours it doesn't make a difference who sells more because we're just making
01:15:08
money correct it's a big advantage if yeah if it's yet if it's 50/50 but he's happy yes say that again I didn't do it Hooked on Phonics because at the time that happened they got sued by the Federal Trade Commission so by the time I was on with mega memory and I started doing some of these joint deals you know some before mega speed-reading a mega math I loved Hooked on Phonics and unfortunately they got into trouble so later we did a program called action
01:15:40
reading with Jeanne eller which was kind of a phonics based program as well so email and the last method here is outbound telemarketing you have your customers how do you sell them a product you can first rent the list you can send a direct mail piece you can do an email to the list or you can do an outbound telemarketing campaign how many of you bought a product from television let's
01:16:17
say a money-making course and all of a sudden you magically get a phone call from somebody says hi this is Joe Smith you would purchase carlton sheets how to buy real estate no money down course and I'm calling you to offer you some coaching or I'm calling you to offer you an additional seminar it's an outbound campaign where you tell a market or call the customer and offer them something to purchase usually it's a higher price product or service such
01:16:47
as coaching or an additional similar yes yeah yeah well here's the answer if it's being done it's working that's always a good indication if it's being done it's working so you can do outbound calls a couple ways these days number one a person actually physically calls hi this is Kevin how are you so you get a real person calling you second what's called a robo call a robo call is an automated call and the automated call is high you've been personally selected to
01:17:39
receive this call and this special offer please pay attention as this is urgent information and you get this message that says go to this website usually it's either go to a website or call this number and so the robo call is it's called a two-step and just kind of remember two-step I'll talk about two steps two steps are the Robo call isn't asking for the order the Robo call is kind of asking you to do something else
01:18:09
before you got the place to work so the robo calls another way outbound again you have to worry about this stuff right now because all I'm doing is I just want to give you kind of the whole flavor and flow of this then we're gonna break this down and here's the other good news when you start you are not going to be doing all of these circles when you start you're gonna be doing four of them that's how you start and you add one at a time if you choose and sometimes you don't add any of them because you're doing fine it's like I don't need to add
01:18:40
anything else I'm making plenty of money I'm very happy my time I got a nice schedule going everything's perfect I don't have to rent the list I'm gonna have to market that I don't have to do that everything is fine all right so this is the general overflow or overview of the direct response business [Music]

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