With MEGA MEMORY, I Didn't Know That I Am Gonna Make Billions! Branding Kevin Trudeau Disc 12

With MEGA MEMORY, I Didn't Know That I Am Gonna Make Billions! Branding Kevin Trudeau Disc 12

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00:00
[Music] first off any questions comments or observations yes and see that like it's better if one person good question question is about branding and this is a really long-term thinking question which
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back in the day nobody even thought about no one even knew anything about branding because we were all entrepreneurs we weren't corporate guys trying to establish a brand we were just trying to sell a product and make a lot of money I mean that's really what we did we didn't think about branding we didn't think that this had we had no idea how long this would last so when we get out there and do a product like with mega memory I didn't have any idea that this was gonna be a 25 year career and billions and billions of dollars in in sales and companies that I've been
01:06
affiliated with all around the world you know and the products that I've done I had no idea I thought mega memory good I hope this lasts a long time well you know and when it's over boy would arrive but it's good brand I never thought about a Kevin Trudeau brand or a mega memory brand or any of that stuff now we know and so everybody's trying to brand got the renter is trying to brand so what do you brand the thing that branding is a consideration for is if you're running
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an infomercial you're spending potentially hundreds of thousands or millions of dollars in advertising and since you're advertising you might as well get the best bang for that advertising dollar so you try to use the advertising to establish a brand and what is a brand a brand is something that is recognizable by the public that has some type of either credibility or attachment to something so Trump has a brand
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he's recognizable and his general attachment is Trump his quality or Trump is very high-end or Trump is luxury so the brand is his picture his face himself his name and that brand is associated with luxury or affluence or high quality or real estate or casinos it's it's kind of a group right Virgen is a brand that Richard Branson developed initially nobody knew who
02:37
Richard Branson was it wasn't until recently that his name became known he built a brand called virgin it wasn't around him it wasn't Richard Branson's Virgin it was just virgin and that was the brand and that brand is associated with cool hip new high tech that's the brand Virgin Airlines is different than old stodgy British Airways because when you go to virgin airline they're playing you know cool hip music in the lounge right when you
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walk on their planes it's like a discotheque it's all dark purple lights and you know when you walk if you walk on a Virgin America planes like you're walking into a discotheque and over the day so it's cool young hip Virgin Mobile Virgin Records that's why it's that's why that brand is that way because Virgin Records was about you know music right and cool hip young right so there's that brand so when you're running any type of advertising the question is do you want to establish
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your brand or not and I will I will tell you if you focus on branding instead of making money you will go broke and a lot of guys have so don't focus on branding and I'll give you the example here's a guy that has no brand who's been in business since the 70s bench Ora's and I don't know if he's still alive but I'm telling you that's that's his line well
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somebody stole it and that's his address he's in Ohio he used to be in Canton Ohio or Akron he was always using addresses in that area so I'm assuming it's him almost assumed that it is this product image health cures and the product here is health secrets it's a book and it's only 1295 plus $2 shipping and handling that's what he sells information there's no brand his company isn't branded on
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this ad there's no branding he's selling a product he's making money when this ad stops working he'll sell another product you won't know that the other product comes from the same company that this product came from so he's not branding he's just selling a product there's nothing wrong with that and that's always a good focus branding is when you're establishing or developing
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something either a company or a person with something so Billy Mays is a brand sully Anthony Sullivan great guy is a brand gut the rancor their beer company is a brand so it's like oh if that product comes from Guffey ranker people today generally know I feel safe buying because they're a reputable company right Sears Roebuck is a brand Walmart
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is a brand Nordstrom's is a brand if you look at a brand of a product from the makers of crest oh okay I trust that brand so they now have a mouthwash and it's from crest crest made toothpaste but now crest makes mouthwash and therefore it's probably good so sometimes you establish a brand that way so when you're doing infomercials I
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would I would suggest don't focus on branding make sure you got something that works first okay now what could you brand you could brand the person let's say you're going to be in the infomercial and you become the brand you're either a pitch person now for example I'm a brand well if you look at my branding excited I was the memory guy well how did the memory guy all sudden become the coral calcium guy who
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became the natural cures guy you with me we what we don't what what it and now they're the the katie of a daily the supplement guy the exposure of what they don't want you to know about guy you know is there any continuity there it's really a hard thread to connect sure personal improvement personal development health exposure of corporate and government corruption
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it's a tough kind of thread if there's one brand here's a guy who promotes things that he really feels improves the quality of people's lives so that's kind of the brand that's again it's kind of a tough tough thread so you can either brand the person who's in the infomercial you can brand your company you can brand a product name that you think I can establish more for example I'm in the process of branding Kevin
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Trudeau approved that brand so this label which is on KP daily my vitamin supplements has now magically appeared on mega memory well it'll start appearing on any product that I'm associated with because that is the brand like Paul Newman you go to the store and you're looking for dog food and you're walking over and you see Paul Newman Newman's Own wait a minute Newman's Own you know he made like cookies Oreo cookies and so organic
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stuff Paul Newman humans own organics dog food okay that's a good brand I trust that brand then you're over in the in the chocolate aisle Newman's Own organic chocolate Oh full of all these different choices greens du Boga Newman ah that's a brand I trust I'll buy Paul Newman's chocolate you with me and so that's what branding is it's when
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people are given a choice between a very similar product which one did they take Paul Newman Newman's Own I'll trust that that I know they're good so that's the idea of branding so I'm not sure if i 100% answered your question but I think the answer is don't focus too much on it especially initially any other questions comments or observations okay yes great question question is on Direct
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Mail do you personalize or not personalize if you personalize it's infinitely better now sometimes you you can't always personalize I want to see if this one is or not this one is not here's a direct mail piece that's not personalized at all it doesn't have the person's name it was cheaper to produce and test because if I if I paid for the personalization I knew the results would not go down but they could potentially go up so that's like kind of the next level of a test so
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if it worked like this which it did now if I tweak and personalize on the next test I should get at least a little better I also have what's called a Control Number so I know did the extra expense to personalize justify itself the recap here this is important and it's hard to get people to realize this is what I did and what I have done and
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what I continue to do I find something that already works and I just don't I don't really change it that much so if you look at my very first direct mail piece I simply saw somebody who was doing something and it was working and I duplicated success I didn't plagiarize do you think Burger King duplicated or tried to duplicate McDonald's and do you think Wendy's tried to duplicate Burger
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King McDonald's of course they did they saw something that was working hamburger joint okay french fries shake I mean McDonald's Burger King Wendy's hamburger french fries shake couple of tweaks differently but they just duplicated each other right so when I produce my first direct mail piece that's all I did and when I did my second third fourth that's all I was doing I wasn't plagiarize I wasn't doing anything wrong I was
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simply duplicating success the first retailer I think was Sears Roebuck and I think Kmart came afterwards correct they'll knew each other okay so they all basically we're kind of duplicating each other was doing right yeah so that again that's what successful people do he duplicate success when I did my first infomercial my first infomercial the way I did it was this and you have to
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understand this story because you have to understand this is how I did it I told you the story about me being in New York City when I was in New York City I spoke at a Chamber of Commerce meeting and I got booked on the radio show I told you that story the other day and when I did the radio show I simply told my stories and asked to answer their questions and the key was he told me now remember you're not here to sell your course I said okay I am NOT going to try
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to sell my course when I did that interview I was told you can't sell your course fine I am NOT gonna even try to sell my course I'm just happy to be here on the radio and I'm nervous as hell anyway so I'm just going to talk about memory a subject I love I'm not gonna try to sell my course and that's how I gave the presentation I wasn't trying to sell my course if you're speaking in
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front of a group of people and want people to buy something consider not trying to sell it at all if you're doing an interview for a long-form TV or if you're doing an interview for a radio and you want to sell your product and make a lot of money consider trying not to sell it your energy will be different and again there are guys who go in there I'm selling and they do very very well so I know that works but I'm giving you
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what I did so my idea was I'm not gonna sell mega memory and I talked for an hour and at the end he said out of courtesy because he was mesmerised that the demonstrations I did he said if people want to go to your how did I get ahold of you I said oh I guess I can call the number on you know two one two four 72 or 600 that's all I did I sold a lot so then I continued to do live radio and then as I told you the
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story was I was in going away for two years and I said let me record an interview on radio and that's how I got Radio infomercials I recorded a 30-minute interview and again I wasn't trying to sell because every time I did a radio show the host would say we're gonna interview you but you can't sell your program oh no problem you know if you ask me with my phone number at the end I'd really appreciate it so I didn't try to sell and then at the end he would say yeah if people want
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more information about your course how did it get ahold of you call 1-800 remember thank you for asking and I didn't try to sell and I sold huge and then I did a recording and I had been on a radio infomercial when I came out I said okay I got my radio infomercial been running for two years I made all this money I should get back on television how am I gonna produce it infomercial the last infomercial I did
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and beckley did it I'm gonna start a company and I'm gonna produce my own infomercial how do I do it and then I sat down and I said well I should do it just like I did before with that Beckley I'll just do exactly what I did I'll stand up I'll have a studio there with people I'll film testimonials I'll do exactly I do with that Beckley then I thought to myself wait a minute that's a lot of work I got this radio infomercial
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that's working like crazy and I was home one night and I watched Larry King and I thought if I was on Larry King and he said you can't sell your course and he interviewed me for a half hour I would do the same thing that I do on radio and at the end I'd give up my 800 number I bet you that would work I don't have to show the product I don't have to mention the price because that's what I'm doing on radio so that's when I said phonebook sound video impressions hi I'm looking to do
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shoot a 30 minute infomercial sure this is Paul Sneed how can I help you I said well let me tell you what I want to do I want you to produce a set that looks like Larry King I'm gonna bring in a guy he's gonna interview me we're gonna film it through it okay and that's how I came up with that idea I knew the anchoring technique so that's why I picked that set I sat down and he interviewed me and if you watch that interview I'm not trying to sell mega memory and you can feel it not there's other infomercials where I do but so
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there's not only one technique but I wasn't trying to sell mega memory I was just using the energy giving the stories and I put it together and again the call to action was as soft as possible if people want more information they can call the 800 number on the screen soft offer sale so the point is all these ads all I ever did was simply just duplicate what was effectively working I just duplicated what was working already
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that's all I did I didn't really try to create something new Wow that style of infomercial no one did but it was an interview which is being done on television so the point is if you want to really become successful in these techniques one of the simplest ways for you to do that is find a successful anything and just duplicate it find a
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successful short form television commercial and record it and then basically just change the words and make it look very similar you're not plagiarizing same thing with short form radio or direct mail or email or space ads or classifieds and again if this is an industry you like get into the habit I rip out ads all the times in magazines when I get direct mint and I try to get it I try to get on mailing lists
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people are trying to get off mailing list I try to get on mailing list cuz I want to see whose mailing so I buy stuff you know I'll buy I'll buy a vitamin from a company now I'm on every every vitamin mailing list so I'll buy something online for you know 50 bucks and then I'm on everybody's mailing list for vitamins so I see all their pieces so if you want you know to get information look at the ones that come in and just really just duplicate their efforts now I want to talk about
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internet internet is some yes good question the question is like Valpak and there's a couple other companies they have like card decks where they take ads from a bunch of companies put them together and mail them out I've never used any of those so I can't give you any advice my feeling was always have I ever bought anything for any of those no do I know people that have I don't know how do those companies stay in business is it because of the sales generated or is it because they're getting money from the
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advertisers I don't know I'd be advertisers the same all the time or do they change I'm not sure I just never went down that road it may be something that you can consider evaluating but I'm not too sure one thing they'll never do anything that requires a big investment of capital to do a test you always want to test small small small small small you never want to put your capital at risk your money your capital is there
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because if your hard work your efforts don't risk don't put it at risk too easy you worked hard for it you earned it that the good news is if you have the mentality that money is a renewable resource you'll have a lot less at version 2 risking because it's like who cares I can make more so kind of be in that balance okay so I want to talk about internet marketing which is the final phase here producing an ad and then I want to talk about how these are integrated and when they should be
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integrated so internet marketing as I mentioned first revolves around a website or a landing page now some of you know infinitely more about internet marketing than me and I'm going to talk in very simple terms the difference between a landing page and a website is a landing page is one page generally speaking and that one page tells a little bit about the product and has
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ordering information or that one page has information about the product and there may be one or two buttons across the one with maybe more information about the product like the ingredients or something another tab or another button could have testimonials there could be a video on that landing page with either testimonials or somebody giving a descriptive about the product and there could be a separate button that you push to order which gives you ordering information and on some landing pages is
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even an 800 number on some landing pages when you go to it it's just print and it's long there's sometimes hyperlinks on there where you can click for more information about the product or what other people have to say some of them when you hit that landing page whether you like it or not video magically starts running and it could actually be in a video box or some of you have seen like the whole page is almost like a video that when you go to that landing page somebody kind of walks on the page
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and like the whole page is a video it starts talking to you thanks for coming to our page to learn about the ABC magic cream and there's a person kind of telling you about it so there's a lot of different ways to develop a landing page or a website the real difference between a landing page and a website at least from my viewpoint is a website has a lot more data on it a lot more buttons a lot more tabs as it's a lot more in-depth and and a website is generally not about one product but generally maybe about a
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company or bunches of products so it's it's it's a much larger thing it's like like a website it's almost like a like a department store where a landing page is more like a little kiosk so it says it's smaller there's less tabs or less buttons or less pages and the landing page is about one product generally where a website usually is about a bunch of products they all have ways to order and they all give information about the
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product some of them have online ordering only some of them have 800 numbers so many questions come up about what makes a good landing page or a good website versus a bad one and it's very similar to an ad or direct mail piece what makes a good landing page today a maybe different 12 months from now because maybe the space has changed technology has changed people's tastes may have changed so in terms of designing a web page or a landing page
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again you don't have to reinvent the wheel just find products that are being successfully marketed on the Internet click on sponsored links and ads when you see ads and look at other people's landing pages or if you see a product on television like ShamWow or be flying lore or the banjo minnow those are fishing products that I happen to think of because I'm going fishing with Archie and Mike Siegel and the mortars pretty
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soon they have landing pages so you can go to them and if you like one perfect that's the one you duplicate you get the layout done so instead of having the banjo minnow or the flying lure you put your product name there you get you get the template already done I mean really they're already done there's no reason to reinvent the wheel if you like it if you feel good about it it feels good to you there you go you get something that's pretty effective they've done all the research they've spent tens of thousands of dollars and in some cases
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hundreds of thousands of dollars doing focus group market research looking at statistics tweaking changing good well they sell the banjo minnow and you're selling something else there's not a competitive product they did they did the template they got the template just duplicate the template there's and there's a there's a thousand different templates out there so it's not a problem so that is kind of important that that building that internet webpage with ordering information and so forth
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and then how do you get people to go there the three basic ways to get people to go one by buying banner ads these are ads that are placed on websites that get a lot of traffic ideally traffic with the demographic cool buy your product and they click on that and it goes to your web site the second way is with search engine optimization when you have your website
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or a landing page by doing certain things to get you closer to the front page and up the list if somebody's hitting in a keyword if you're selling a fishing lure and somebody punches in fishing lure where does your where does your landing page come up it should come up hopefully higher so search engine optimization and there are firms you can hire to do that and there's some people that probably know a lot more than some
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of the firms next is by doing sponsored links if you're on Facebook or social media or AOL or on some websites in addition to having a banner ad that you can buy you could buy AdWords like Google AdWords so that you'll have a sponsored link ad come up on these websites as well as when somebody punches in a keyword you get right at the top and so some of them can click on
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that and go to your web page the web page can be used to generate sales from people on the internet or you can always use that web address on other forms of advertising as we talked about you could put it in a direct mail piece you can put it in a print ad you can put it in a classified ad you can put it in a short form radio or TV or a long form radio TV and drive people to your website and the website does the ordering for you does a lot of the selling for you as well so
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it's something that's certainly a consideration now how are these integrated I'm going to go through each one of these and tell you if they're standalone and this is kind of an important piece of data to know because as surprising as it is to me there are a lot of people in our industry that make money not based on your success but
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based on you spending money with their firm so if it's a production company and I'm producing infomercials I want you to spend as much money as you can in this infomercial because quite frankly I know that the chance of you succeeding with this infomercial are next to nothing so I got one shot and there's a saying the saying is you can shear a sheep every year but you can only skin it once and the idea of this industry is you're
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a sheep but they're never gonna see you again they can't share you every year they can't so they have to skin you now so they're gonna take advantage of you okay they're gonna take full advantage of you and what I mean by that is they will say stupid things such as oh you're gonna produce a long-form TV infomercial you need to have big production has to have high-quality all good informations have high good quality production and they'll try to milk you for this huge
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amount of money to produce this beautiful infomercial that will never generate profits or if you're going to produce a short form television commercial they'll say yes you need to run the ads for a full month before you'll know whether it works or not or if you have a long-form television now I've been around the industry a little bit so I called the media buy at one
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time and and said hi my name is Joe Smith and I have an infomercial I want to test what is a good test like how do you test an infomercial and I was told by this guy who I know that I had to spend around $25,000 at least six weeks before I got every week for six weeks before I really had a good handle on it
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now Tina when we when we test an infomercial approximately how much money over what period of time do we test that infomercial before we pretty much know whether it works or not one week actually it's two days Saturday and a Sunday and a couple thousand dollars right yeah twenty-five hundred bucks $2,500 two days Saturday and Sunday we know whether it works or not yeah yeah
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but we already know it's coming in so it's something that we know the numbers it's like we you know halfway in oh we got a winner I mean the minute it runs thank you the minute the show runs we know whether it works or whether it doesn't but they'll try to convince you that you have to run this forever big amount of money oh we didn't get a big enough test you need to reevaluate you know could have been a bad weekend spend more money spend more money spend more money so
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you're gonna get a lot of false data short-form radio I want to run an ad so I call up the radio station and I say I want to test this I have a short-form radio ad I want to test it oh great great great we'll put together a nice test schedule over the next 30 days oh no no no no I want to actually just test it in one day and I just want to one run one ad one time there's like silence on
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the other end of the phone you can't get any results from that I go I can get the results everything I need it's impossible for you to know whether it works or not no I get everything I need how much is one ad cost Oh 50 bucks perfect this guy's not my friend like me I want to run just once that's all I need to know you need space repetition no one's gonna call if they heard it
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once yeah yeah yeah I know just friend of ones I mean I and I'll tell you how I know and this is these are the tricks these are the secrets and nobody understands you're going to learn that so let's go through these long form television you can run that in one or two days you can spend around $2,000 and know whether it works or not
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yeah is that high or low low I know it's low well if I'm a media buyer it'll cost you at least fifty thousand if I'm if I'm selling the media oh you need to spend at least fifty but I'm telling you to in two thousand dollars you'll know whether it works or not in today Saturday and Sunday and that will be anywhere from six to eight pies right Tina yes six to eight pies oh I'll
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tell you I'll tell you I'll tell you that yet nope when I say six to eight buys what that means is it ran on six to eight different stations at six to eight different times so for about two thousand dollars so what's that not each total total you can take a half an hour infomercial and you can put it on the air for 30 minutes and pay as
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little as 50 bucks this is what nobody wants you to know yeah now if you spend 50 bucks for that media buy guess what your sales are gonna be you hope it's a hundred dollars it's not going to be a thousand it's gonna be a very small amount but you do that a bunch of times and you make money okay now the good news is your production on that long-form infomercial if you go to one of the guys in the book and I'm giving you that just for your
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edification they'll charge anywhere from you know hey the low-end 52 a million bucks if you do it yourself either with a local local access channel studio a local studio maybe there's a community college in your area and they have some kids doing you know stuff like that rent their studio or you can do it in your house with a little camera you can cost under a thousand dollars you can do it
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for a couple hundred bucks and in some cases you get it done for free if you go your local community college you can call me get some interns to do it for free because they want to they want to practice it depends if you go in your phone book and get some local guys who have you know video production they have an Apple computer and a high-definition camera this big they'll do it for like $150 in a case of beer maybe a pizza in there but you know they'll do extra work for that but you understand what I'm being facetious of course but the point is doesn't cost a
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lot to produce an infomercial so long-form infomercial production is pretty cheap and testing is pretty cheap and you know whether it works or not just like that short and by the way you don't need anything else you won long form television you will also hear oh well the long form TV you really can't tell if it works or not because you got to run it you know for at least a month and you should have some print ads going at the same time because you need to have an integrated marketing approach to get all this stuff together there is no
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one long form TV infomercial you run it six or eight times over a weekend you know whether it works or not you spend a fillip of about $2,000 in media short form TV it's the same you know in a day or two you spend around $2,000 in media you know whether it works or not long form radio same thing you run it one or two days you center of $2,000 in media you know whether it works or not short form radio same exact thing you run it over one or two or three days you
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spend a thousand to 2,000 and media maybe even 500 on radio you know whether it works or not it's a very good question question was when is the best time to run media I'll rephrase your question basically long-form television that's pretty much any time short form TV is any time long form radio is any time short form radio is during the week the best time - the best time for short form radio is during
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the week when people are in their cars the weekend is very bad for short form radio however it still works and I'm gonna show you how to make it work or get it to work okay for example how many people here would I mean it just makes sense at 3 o'clock in the morning that's probably not a good time to run an infomercial because everyone's asleep it's a great time to run an infomercial why not that everyone's asleep but the
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media rates can be so low so at 3 o'clock in the morning if you spend $50 for the half hour time and you're selling a $300 product you just need one sale and you've made a nice profit so it doesn't make a difference how many sales come in it doesn't make a difference what the media cost what matters is how many sales you got versus the media cost but was the gross sales versus the media cause it's called ratio but you're going
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to show you direct mails a little different if you're going to test direct mail and the reason I'm giving you this data is so that you know time and you know investment short form TV let's go back there how long does it take to make a short for I'm sorry long form TV how long does it take to make a long form TV infomercial well you could do it tomorrow you're probably need a little more time
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than that you got to get your product you got to figure out your stories you have to get your studio so realistically if you were to jump on this tomorrow within 30 days you could have a show shot maybe 60 days maybe 90 days to shoot a show short form television that's a little easier but same thing maybe 30 60 days long form radio that can be done very quickly the key is what
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takes time is not shooting this stuff it's doing this that's what takes a little bit of time direct mail you make a Direct Mail kit this could take a week could take a month it could take two days depending on you you need to mail around 10,000 of these you could
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mail as long as five thousand for a test so in order to get an accurate determination of whether this is profitable or not you probably have to nail a minimum of 5,000 to 10,000 and this kit right here that I'm holding in my hands cost total printing and postage about $1 to send out so you get a little bit more investment that doesn't include the production cost which if you went to somebody local without you know and a
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laptop that could do this out they cost you a couple hundred a couple thousand dollars maximum for production so you're testing on Direct Mail is always a little higher plus you have to buy the mailing list which is a few hundred dollars as well Direct Mail is a little higher email if you have a website built or if you're not using a website that you're just putting the printing in the email you can buy an email list and send it
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out this is very tricky because not only you're dealing with the quality of a list you're buying and in the email space that can become very suspect but where is it going out from what server and that can determine whether it goes to spam filters whether it's blocked by you know AOL or Gmail or whatever and this this is changing absolutely rapidly and I am NOT an expert all I know is it's changing a lot how many pieces do you have to send out to test email I
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can't really tell you but I can tell you it's generally very inexpensive even to send out ten thousand or fifty thousand or a hundred thousand it isn't that expensive print space you're going to have to run around a thousand dollars to determine whether a print space ad works this by the way print space I'm going to give you there it breaks down into two
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primary areas newspapers and magazines newspapers you can call the newspaper today and be in their paper tomorrow a magazine you call them today you're in two months from now so the lead time in a magazine is much longer than a newspaper but total of around $2,000 well I'm gonna show you how actually to buy print and what's the best way to do it I'm just giving you the dollar amounts now so you have an idea of timing classified ads that's in
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newspapers primarily and you can know whether they work or not in a couple days for about a thousand to two thousand dollars you'll notice that it's very consistent in terms of the amount of money you spend on media direct mails the higher one in the Internet this is a complete variable based on how much it's going to cost you to actually build the website whether you do it yourself whether you just go to GoDaddy calm and get a URL and do it yourself whether you get you know this is again a space I am
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NOT an expert and it's changing so rapidly and this the horror stories that people have you know I went to this firm to building a website three months later it still doesn't work that's not up I gave them this money they keep saying they need more you know it's not my area of expertise about building it building web sites and I think it's just changed things so rapidly but I do know that there are lots of places you can go and get a a what's called a good enough
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website or a good enough landing page that can take orders that can process the credit card interview via PayPal account or a merchant account that you have here's the point the point is you don't need to integrate any of these to determine whether they work they're all stand-alone if you do direct mail and nothing else direct mail either works or doesn't work
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if you do a short form radio commercial it either works or it doesn't work well wouldn't work better if you had print ads going at the same time in short form TV in long-form television the answer is yeah it could work better you understand this I'll make sure you get this short form radio it has to be
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able to work on its own the question is if you're running short form radio and you have long form radio short form TV long form television and print ads all running at the same time for the same product would the short form radio work even better the answer is probably but it's irrelevant it has to work on its own marketing guys are selling these services are selling the advertising space want you to believe just keep putting some more money in you're
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getting closer to getting closer you're getting closer and I'm telling you don't waste your money it either works or it doesn't work the integrated approach is fine but it either works or it doesn't work by the way you may notice that I'm struggling a little bit with my teeth because I had my adjustment on my braces and the good news is in a few weeks I'm told unless I am being lied to that I'm
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coming down the homestretch so they should be off allegedly by July 1st which I'm very happy about I'm getting a little tired of this after over a year now but we're getting close getting close good question which is exactly where I'm going next okay so now the question is and we're getting you to the this is all mechanics okay but I want to show you the numbers first then we'll get into the mechanics so basically how do the
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numbers work in direct response and the numbers work like this you spend a thousand dollars in media and I use a thousand dollars because there's an easy round number to do the math so if a tire or lower it's all the same ratio and the question is what can you expect for sales if you spent $1,000 in media so let's say you took a long-form television commercial and you bought five buys which means that long-form
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commercial ran on one station and you paid $200 it ran on another station at a different time in a different state for another $200 in another station someplace else for $200 and someplace else for it never would be all 201 would be $75 one would be $425 one would be 375 dollars but let's just say they're all $200 each and you have five buys total of $1,000 in media with me and on those long form infomercials you give out your 800 number when the long-form
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infomercial was done within 10 minutes you know what the orders are you just call up and telemarketing company if you use one and say what are the orders and they're either there or they're not there if you got $2,000 in orders or $2,000 in sales you then have what we call a 2 ratio
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1000 of media 2,000 and sales sales to media is a 2 to 2 ratio if you generated $3,000 in sales what would your ratio be 3 if you spent $1000 in media and you generated $4,000 in sales what's your ratio for okay so make sure you get this it's better if
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you get it quick if you did a thousand dollars in media and you did a thousand dollars in sales what's your ratio 1 if you did a thousand dollars in media and you did 500 dollars in sales what's your ratio 0.5 or 1/2 exactly so the answer is what ratio do you want and the answer is whatever ratio is gonna make you money and whatever that is a
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bigger number that's what you want for a ratio it varies I'll give you kind of the ballpark you're always shooting for a 2 or higher you're always shooting for a 2 or higher now here's how I did the math and Tina who's been around now the industry knows everybody can tell you that there wasn't a person who does the math this way and the way I do the math was real simple I did it by hand I didn't use computers I didn't use spreadsheets I used a piece of paper
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I took it eight-and-a-half by 11 piece of paper I took a nap by 11 piece of paper one day and I said we need to figure out the profitability so I basically went through hmm so the first thing I put was gross sales so if I was looking at a day I want to say did I make money today well today I'm looking at yesterday's business okay so I said did I make money yesterday what were the gross sales and I got that
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number by calling the telemarketing company what do we generate and gross sales $2,000 how much media ringing yesterday what do they spend for media 1000 great next question is how many orders did I get what were the number of orders so let's say I was selling a product for and I'll just make it up here because I got to do the math easy let's say my
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product that I'm selling is $400 so I generated $2,000 in sales my product I sold for 400 all each that means I got five orders my product cost is $50 pour per order so five times 50 is 250 next number of orders five times x-4 shipping and postage I had five orders and it
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cost me $10 each for shipping and postage I have three percent credit card times $2,000 is $60 for credit card processing then they had telemarketing and I'll show you how to get the exact number here but I'm gonna use 10% of $2,000 for telemarketing that's $200
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those are my costs so I have my gross sales and now I have my cost correct all right we'll just add up the cost so we have two hundred two hundred and sixty three ten three four five sixty fifteen hundred and sixty dollars so fifteen hundred and sixty dollars in total costs in this example we have two thousand
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dollars in gross sales that leaves four hundred and forty dollars in profit so our profit yesterday was 440 dollars and there's a very important number down here and that's called ROI what was my return on investment and this is where it gets exciting when you understand a return on investment this is one of the reasons people like real estate because I had a friend one time he was talking about real estate he goes look I bought
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a million dollar piece of property last year I sold it for a million won I said oh so he made 10% on your money he says no I made a hundred percent of my money I said I didn't a million dollar piece of property goes up to a million won that's ten percent 10 percent of a million is a hundred thousand you made a hundred thousand in a year a million dollar piece of property you bought a million dollar piece of property a year later you sold it for a million won and you know after all the expenses and commissions you netted a hundred thousand dollars you had a million
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dollar property you netted a hundred thousand you made ten percent of your money he says no last year when I bought the million dollar piece of property I bought it with $100,000 down my cashout was a hundred thousand I had a guy in there who was paying the mortgage so that didn't cost me anything I sold it for a million won I made a hundred percent of my money I invested $100,000 I made a hundred thousand I doubled my money understand our role I see people
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miss this so what here's a question yesterday we did 2,000 and sales we spent $1,000 in media yesterday we made four hundred and forty dollars first question is how much money did we invest yesterday one thousand dollars our investment was our media with me that's what the investment amount was we invested $1,000 yesterday so our return on that investment in this particular
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case is 44% how many people here would like to make 44 percent on your money every single day okay it ain't gonna happen not in this business and this is just an example and this was this is a pretty nice example you're happy if you do in ten ten percent on your money every day you with me you're happy if you're doing ten every week you're happy if you're making ten percent in your hour away of
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every month be grateful it's a huge it's huge return and there's a mentality here I want to tell you about and that is this I was watching one of my my favorite shows Pawn Stars the other day I like the show it's about history and I it's about people and I enjoy learning about the guns and all the historical items that come in I find the you know the information about the I love history and we also like to see how people
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interact and it was a guy who had some item and this particular item he thought he was gonna sell for $10,000 and he came in he said I'm gonna sell this for $10,000 it's worth ten thousand it's worth ten thousand so he goes in there no it was fifty thousand sorry fifty thousand dollars on themselves for fifty thousand dollars so he goes in they find out that it's very valuable but it ain't worth fifty s worth five well it's actually worth more than five but he winds up negotiating and getting
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five he walks out and he says I got five thousand he says you know I'm going to the casino and I'm gonna turn this into 50 okay that's mentality number one now let's take the next guys mentality the next guys mentality he has $50,000 it says this month I'm gonna turn this into the 55,000 to see the difference in mentality one is the
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loser mentality one is the successful mentality the loser mentality says I'm going to turn this five thousand 250 he's a gambler he's taking risks he's unrealistic he always will lose it all which is why I was in the pawn shop because he was broke understand him he wanted money he needed money he's always trying to hit the score hit the score he doesn't understand slow and steady wins the race the successful person has $50,000 and says you know how can I
01:00:22
wisely make a 10 percent return on this money this month which is huge five thousand and he's thrilled does this make sense this is the difference between a successful person and not it's this understanding of return on investment slow and steady wins the race you're not going to invest a thousand dollars and make a hundred thousand if you invest a thousand dollars and have a bottom-line number of a hundred dollars
01:00:54
pop the champagne no here's what happens well then you have the interest cost so let's say that you borrowed the money or use the line of credit and so now you have an interest expense here so what is the amortized interest for that day or if it's outstanding I have to pay this month's interest a month on this thousand I'm using it every day so you eat the / 30 days and you put that line
01:01:29
in there and well you still have to look at it as an investment because this capital you're putting at risk but I understand what you're saying if you're basically borrowing the money and using other people's money then what is your investment the answer is you didn't invest anything so your ROI is you can't use an ROI but certainly you don't have any capital at risk but the reason we use this number ROI is because it gives us a gauge if we want to go where we want to be okay this really helps us yes
01:02:05
good question question is there's no returns on here and here's why I don't put returns in here you're gonna get returns it'll vary from 3% of the very low end depending on the price point up to 20% so you are gonna get returns however the reason I didn't factor this in is this analysis of in factored invalid than declines because when I got this gross sales number I'm assuming that that the call center took the order and if it was invalid or declined told the person give me another credit card
01:02:36
so I just factored that out also when people call in a certain people number of people want to send in a check so what I've always done is I always pretty much have a push in terms of checks versus returns so checks it come in the mail down the road versus returns I come later and so that kind of balances it out that may not in today's world so you may have to factor in a return factor here as well also if you're getting a gross sales number before in ballads and
01:03:07
the clients get pulled out you have to factor that in there as well good point yes what it means is if I call up and you answer the phone and I give you my credit card number and for some reason you punched in the wrong number so now when they go to run it this number is coming up as an invalid number it's like it's not my credit card so sometimes that just happens okay this is just the beginning there's a lot more to come and
01:03:38
plus I am going to be teaching you how to book yourself doing live speeches I mentioned and also how to book yourself on live radio shows and there's a lot more to come one of the most exciting things is about how to buy media and well there's so many things sir they're exciting because because every time every time I look at one of these I go nobody knows this this sheet right here Tina am i right I printed this up by hand and then I photocopied it I never even typed it and this was the
01:04:10
sheet that we use for our P and LS and we filled it in by hand because as you know if you don't know about Natick about do it by hand write it down don't punch it into a computer I need to know the numbers and I would do this and I knew them better than anybody good question what about the amortized cost of producing infomercial we also don't
01:04:41
put in cost of overheads for example no I just don't put that in because I'm looking at the show ok this number then when I'm looking at a different sheet what are my overheads my staff members I have an accountant working for me I have a secretary of it I have rent but this is this is does the show work well it does work if you stop having these 300 employees you don't need and working you're out of your kitchen table you with me so this is why I always said the show works you don't need all these
01:05:14
people the show makes money the cost of production we're talking a couple of thousand dollars it gets blown out in the first you know couple weeks [Music]

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