Where People Say It Doesn't Work, We Stay Optimistic! Infomercial Secrets Revealed Disc 16

Where People Say It Doesn't Work, We Stay Optimistic! Infomercial Secrets Revealed Disc 16

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00:00
[Music] so we check our calls per thousand then we run our next test where we actually have our product we have our merchant account we have our bank account set up we have our fulfillment setup we have our call center set up whether it's us or someone else we have our script written we run that test we're looking at closing rate we're on our third test which includes our upsells and now we're pretty much evaluating this whole campaign do we have something as viable
00:33
at this point because we're still tweaking we're still running a bigger test and we're always keeping optimistic we're always looking for everybody else shuts their eyes and oh it doesn't work I go hold on calm down maybe you're right but let's just you know not close the door yet let's not nail the coffin shut just yet maybe there's something here and so we look at what are the calls for a thousand because I sit down with people they go it's dead look at the P&L look at the P&L no good I go I
01:05
go what were the calls per thousand well I don't know who cares look at the P&L what was the closing rate I don't know look at the P&L I go what was the closing rate of the of the first upsell the second episode the priority I don't know what would the prices for these things it doesn't matter look at the P&L sure we lost money I understand but let's look at the closing rate so let's look at these things and when we look at these things maybe we say wait a minute what if we can what if we doubled the calls per thousand and everything else
01:36
stayed the same would we have made money yes okay well we have a winner all we have to do is get media cheaper without doing anything else maybe I can't buy a lot of media but if I can get media and half price buy get buying remnant I have it already works but if my closing rate is really low what can I do to increase it or can I increase the price if they upsell closing rates are bad the next thing I can look at there's a couple other things you can look at and here are
02:06
other things you can evaluate number one you can write them down number one is the upsell something that needs to be changed sometimes you pick an upsell number one and two an upsell product well maybe the upsell products no good so maybe that needs to be changed when we talk about the closing rates going up
02:37
the real question is that do the scripts need to be changed does the sales presentation need to be changed or don't you understand what that means the way you increase closing rate is to either reduce price or change the script so the way to increase a closing rate is either reduce price or change the script so the other questions I would ask is the upsell product what is it well maybe we should change the upsell product maybe
03:08
that product doesn't really go with this particular customer oh the guys buying mega memory and what are we selling them well we're sending them an anti-aging cream as an upsell well maybe that customer is not interested in me at the aging cream maybe they're interested in something else so maybe we change the product we talked about increasing the price increasing this increasing calls per thousand closing rates or raising the price to increase profitability next
03:38
I mentioned is that is the upsell itself the right product very important next factor is what we call demographics and here's what you look at if you ran ten different media buys was there any buy that did well and if so is that different than the buys that did bad in other words his were you looking for
04:17
does your infomercial work only in the south or in a certain region maybe you have an infomercial and the spokesperson you have is from Yazoo City Mississippi and maybe when that plays up in New England no one buys but when it plays in Mississippi and Alabama and Georgia and Florida everyone buys so maybe your infomercial only works in a certain region next maybe it works only during a
04:54
certain time slot at 2:00 o'clock or three o'clock in the morning it doesn't work but it's six a.m. or 7:00 a.m. it does work for some magical reason maybe there's a demographic an age demographic that is buying your product maybe there's a gender demographic that's buying your product so this age this gender next maybe there's an income demographic and next maybe there's an
05:37
educational demographic these are something you could evaluate these are fine tune adjustments they're not going to make or break anything really but there's something to consider because maybe your particular product works really well on a station or a channel like CNN or CNBC because of the demographic that watches that channel but doesn't work really well on MTV or
06:13
vh1 which is a different demographic with a younger demographic maybe not as educated and things like that so you have to look at some of the demographics yeah good question the question is I got a product and I get an infomercial I really think my audience is women so shouldn't I just test with my media buyer where you know likes done de parts and and and channels that have that demographic sure I wouldn't be opposed to testing it on some others as well because you never know and then once you
06:55
get that data as you continue to run bigger tests you may find certain market to do better than others and so forth yes yes absolutely I'm glad you brought that up on short form TV in short form radio remember your calls per thousand will always go up as high as two to three times from your initial test so if I have a short form radio and I call up by my station my local station yeah well I want to run one 60-second ad next
07:32
Monday morning and the guy's going you're insane because I know whatever I run whatever number it is it's gonna be a hell of a lot higher than that so I don't have to I don't have to run it for two weeks to know that so if I run it and I get ten calls per thousand well let me go to twenty you can even go to thirty and if I need 20 or 30 calls to make something work plus I can probably get better meteorites I get a home run see I know that how quick I know that
08:02
but I like to run smaller tests I don't like to you know just spend money for two weeks to see so that my next test maybe over a week with radio with short-form radio and TV you know testing is a little bit different but then I run it for a little longer to see what if the calls per thousand holdout still knowing that actor a month or two in the same markets if I'm on that one station you know where let's say Rush Limbaugh broadcasts and I say I want to sixty
08:33
seconds during the Rush Limbaugh's show Monday through Friday for a whole month I know that the fourth week I'm gonna be getting more calls per thousand in that week than I did in the first week because the same people are hearing the ad over and over and over again through spaced repetition and it could be two times higher three times higher even four or five times higher over time they have a lot of a lot of juice there yeah hobbies recreation religion those really
09:14
aren't demographics now you're getting into an area of what we call target marketing now you're really fine-tuning ok I have a golf product and I'm gonna be hitting golfers well golfers again that's a specific target market yeah I'm hitting people who want to play golf where people want to play tennis or or the conservative Republicans or Liberal Democrats I'm hitting a specific target but that's a really even though it's technically a demographic I call it target marketing to me I'm dealing with just general demographics that relate
09:44
specifically to mass media I can't be really hitting golfers on television with the exception of running on the Golf Channel but everything else it's impossible to know who golfers are so I just have to go with you is it me is it a male buyer is it a female buyer and is there an age of group and and is it is it really having a specific impact on the sales again these are only fine-tuned adjustments during this test phase just fine-tune adjustments okay now you have
10:15
your you bought your media you're taking your order and you're getting your results remember at the taking the order section here we have our upsells we're also collecting information for literature requests if we're running a software off offer in which case then we're developing a direct mail piece and within 24 hours you want to send your literature if you're doing literature requests and that means you're running a soft offer infomercial or shot a soft
10:45
offer campaign they call they do not buy and you ask would you like some free literature and get their name address city state zip phone number and ideally email address then within 24 hours ideally you want to be sending them a direct mail kit or letter with information about the product and it could be as simple as this is sitting next to your desk when you take the literature request order
11:17
they're already sealed and all you do is you grab this and you address it and you pop it in the mail it could be as easy as that or you could go and have it professionally laser done where when you take the literature request it's electronically sent to the mailing house who then punches it into their computer and generates a laser customized letter folds it puts it in the envelope with a with a window with
11:49
the person's address right there when they open it it's customized to them pretty slick and fancy cost a little money but that's how I did it in the beginning when we did lit requests I wrote a one-page letter that talked about mega memory and I developed a order form and we called the company that did these type of things and I said when we take the literature request at our call center they'll email you at the end of the day all the peoples names and
12:19
information who want literature you'll then print a customized letter dear Marjorie and it had your name in it two or three times in the letter and it was laser printed folded put in an envelope with a window with your name on it stamp put on mailed so when you got it it was and it said this is the information you requested urgent time-sensitive because it said the offer was 50 percent off and you didn't take
12:51
it I'm going to extend it for the next seven days but you have seven days to send this in and sometimes people just need to have something physical in their hand like a one-page piece of paper that's going to help them make the decision they have no additional information about mega memory they had none but they just had this physical piece of paper they filled out the order and there was also an 800 number there they could call them by and we got a huge response 30% of those
13:21
people I think it was and I could be wrong but it was in that range that actually got that letter Wanda buying the product there was a huge amount of additional revenue so lit requests stats at the order taking you have to know your stats you have to know every single by what the stats were so if I'm working with you in a project and you say yeah I
13:49
ran ten media buys yesterday oh good what are the stats you say well the first media Buy and you need to know everything about it it ran at 8 o'clock in the morning Jacksonville Florida WABC it's the NBC affiliate we paid $550 for the time we got 28 phone calls we generated of the 28 phone calls 18 sales
14:22
of the 18 sales we had 15 buy upsell number 112 buy upsell number 218 take priority and here's our P&L and you have one of these sheets for that buy here's our ROI here's our ratio here's what we did you have to have the numbers you got to have the stats you've got to focus on the numbers you can't be guessing there's one thing that nobody knows is
14:54
it just don't know the numbers and they don't even know what numbers to ask if you're if you're in direct response you're running short form radio you have a radio commercial 60-second radio commercial and the guy sits now as we go we ran our radio test last week oh good yeah terrible No good yeah what are the stats well we only did you know 1800 and sales yeah that sounds terrible
15:25
by the way how much media did we spend I mean a guy's giving me stats like this and well I don't know exactly how much money ran oh but you know the results were terrible do you understand and I'm saying this because this will be you you've got to know the numbers the guy didn't know how much media the only thing he knew with
15:56
the sales gross sales didn't know how many people bought didn't know what percentage didn't know the calls so here anytime you are running direct response media if you're running print if you're running radio television long-form or short form if you're running Direct Mail you got to know the numbers so here's what the numbers are we were in a test last week yeah tell me about it with short form radio really short form radio great
16:29
we spent $2,000 in media that's the first number I always want to know would you spend 2,000 of media good we generated 1,000 dollars in sales bad calls per a thousand 40 good closing rate 10% bad up so closing rate 5% real bad upsell to closing rate the inbound
17:03
telemarketing company screwed up they didn't read it so zero okay priority closing rate 15% not great what do you think well obviously the campaign didn't work no no time out here we get low closing rates don't we we got decent calls per thousand and the next thing is it's short form radio you ran it for one week you know that if it continues to go out both the closing
17:34
rate and the calls per thousand I'm gonna go up let's reevaluate let's look at this a little bit further let's break it down that's the total now how many stations did you run it on oh well we ran it across 15 stations Jesus I mean nothing got any any play all right let's look at each station and when you look at each station I find out that two stations is it excruciating ly better than the rest okay so why don't we forget the rest of them let's focus on these two stations that
18:05
did well why don't we run a bigger test that's how we progress and that's how we turn things into winners that nobody else can see that's a winner so we take our order process the credit card credit card is processed the order is shipped to the customer you've already decided what your box looks like again initially it doesn't have to be fancy but you're thinking you know as you begin to approach keep going are there any bounce-backs in there
18:42
you're sending out a mega memory or whatever your product is are you putting a flier in for something else you may say hey Kati I worked out a deal with a company that sells a vitamin that helps improve memory alright put a flier in there your business your marketing this you can put fliers in there for other products you can put a CD or dvd selling something else what bounce back for fliers do you want to have in there you ship the product you get something sorted out for returns
19:16
where the returns gonna go customer service it goes out the door then there's this whole aspect of database database marketing which is what do you do with that customer do you rent their name do you send them direct mail pieces do you send them email marketing do you call them an outbound marketing at this point you have a customer that you bought a product from you and you can do
19:48
database marketing you can email them you can direct mail them you can call them for product or you could rent the list yes of course any time you do outbound yeah automatically yeah when you're doing outbound telemarketing in the United States and every country is different we have what's called to do not call us and it's provided so if you're going to do
20:28
an outbound campaign to your customers all you have to do is take those names and you just basically scrub it against the do-not-call list and whatever names pull out you don't call them as long as you get that updated and scrub it on a regular basis you're fine so every country is a little different in terms of of how that goes yes if you're going if you're gonna give the names to a company to outbound call
20:58
just make sure that they scrub it against the do not call us but pretty much everybody in this industry today it's following the legal you know regulations and protocols the penalties are are you know big enough to make sure everybody follows the rules so with the rare exception there's nobody out there really just blatantly breaking the rules yeah if you're gonna rent the list and you really only rent the list if you have a lot of names so if you have a couple hundred you're not renting a couple hundred names but if you got to the point where you had you know ten thousand names and you wanted to rent it
21:36
you go to a list rental agency or a list broker and you call a couple of them and you can either make an exclusive arrangement with one or you can give it to others and say I have this list and usually the list is managed by the call center they have it on some type of data file and then that broker then gets it what's called seeds it to make sure that when they rent it it's not being rear nted and so there's a few parameters there again it's just really the logistics of renting the lists and working out you know the logistics with that company
22:18
good question I'm not an expert in the legalities of the do-not-call listing but you know that if you're if you're going to get if it's your customer and you're calling I think that's perfectly okay perfect perfect perfect
22:50
so they updated here in the US and you have the relationship everything's good okay now let me just walk through these marketing methods because they're all very similar and all the same just a couple swipe psych tweaks so long form television produce the ad we know how it's you're going to either be a soft offer or hard offer or something in between how to buy the media we already
23:20
talked about that short form TV short form TV can be either a hard offer or a soft offer again in producing a short form TV watch television is a bunch of templates already there the templates the template for the commercial is there so if own commercial for a product can be produced do not reinvent the wheel the templates are already there it can be a soft offer with an 800 number call for more information you could put up a website or both it
23:53
could be a hard offer but if you noticed the hard offers hard offer meaning the price is given on television for short form generally the price is $39 or under and if you look at hard offers where the price is given there's generally a higher percentage of $29 another under and if you look at the hard offers even a higher percentage still are $19 a member so the point is the soft offer shows
24:24
it's for an inexpensive product how can they make money because they're not selling enough product via upsells so when you call to buy the nine dollar ninety five dollar product nine dollars and ninety five cents there you're being up selling a lot of stuff on that call and then they have what's called a revenue per call so we look at a number sometimes called revenue per call
24:57
what's the RPC what's the revenue per call and then we look at what was the revenue per sale because not every call is a sale so two other interesting numbers that you can look at when you're looking at statistics but I really don't pay very much attention to him is RPC and RPS revenue per call and in this
25:24
example here if you got 100 calls to generate a seven thousand six hundred and forty dollars in sales your revenue per call is 76.46 of those calls if only 50 people actually bought then your revenue per sale would be double this times to 150 280 so you have
25:59
revenue per call and revenue per sale if some interesting numbers to have I don't pay too much attention to them because they're really irrelevant sometimes I use these only as numbers to know that if I'm at this revenue per call or revenue per sale or above I'm making money so sometimes it's a super easy number just to look at to make sure that you're you know in the in the black yes the reason that those numbers used as Tina pointed out really were for the
26:42
salesperson when you have people answering the phone for you then there's two numbers that you do need and that's revenue per call and revenue per sale of the salesperson because if I have five guys answering the phone and I'm paying a commission this guy is blowing through calls he's like you know at the end of the day he gives me $10,000 in sales he's a superstar right but he basically says hi can I take your order well I have information nope I only talked to
27:13
people who want to buy hi can I take your order so he's blowing through calls because he doesn't want to waste time because he's not paid to talk to people he's paid to make sales he's given a percentage of the sales so this guy's stealing from me because he's just blowing through calls so he brings in a lot of sales at the end of the day he's the sales leader so he made the most money but he cost me the most money because he blew through all these calls so his revenue per call is really low his revenue per sale is good but his revenue per call was low
27:44
now this guy is the exact opposite if you call him he Yuki won't let you off the phone he spends 20 minutes on every customer he just really really works hard so his revenue per sale is extremely good and his revenue per call is is is really high too because he just but his sales are low he doesn't sell a lot in a day so he doesn't make a lot of money makes me good money but not himself so you look at revenue per call
28:15
and revenue per sale when you're dealing with salespeople answering the telephone okay so short form television and short firm radio remember when you're running that media that the calls per thousand and the closing rates will get better over time so if you're running short film television and tour from radio as long as you're on the same station in the same market hitting the same customers same people if you run it repetition for
28:45
one week two week three or four why wait your call for a thousand will go up and your and your your your ratio and closing rate and we'll all get better so if you run it one day and you have only 10 or 20 calls per thousand you're you're in pretty good shape there because if you continue to run it your calls per thousand they're going to go up and you're closing rates are going to go up over time yeah how big of a database you
29:20
know if you're gonna spend time and money talking to somebody about doing some type of JV marking I would say at least a thousand names yeah I'd say but you know you could start even if you have 500 because you know there's not going to be a big percentage of those people are buying so you get if you get a 10 percent conversion rate a five hundred fifty orders if you if your net profit is ten dollars an order you know that you're splitting so you made five hundred dollars how much time is it taken to get involved in doing the JV and all this other stuff you follow me
29:52
because putting the deal together takes the same amount of time with the f5 or the names or 50,000 names and the next thing cutie takes about the same amount of time as well Direct Mail your media in direct mail is the quality of the mailing list so your media in direct mail is mailing list and with direct mail the price of a mailing
30:21
list it's really not that big of a deal so we direct mail if you buy a mailing list or actually rent a mailing list the price that you pay for the mailing list which is your media isn't going to change a lot and the price of the kit is really not going to change a lot so direct mail either works or it doesn't work there's there's not a lot of tweaking you can do in terms of media to get your calls per thousand up it's just
30:53
it is what it is you can tweak the actual sales presentation in here but you produce the kit and you do it's a test you can test 2,000 names 5,000 names 10,000 names and get it and get a closing rate but you use the exact same form the only difference is where it says media what number do you put in
31:24
there you could put the cost of the mailing list but you're missing a column here and that column that you're missing this is all the orders right so you're gonna have list the cost of the list and then you also can say number of pieces mailed times X per piece and that's postage and that's printing and that's how I do it I just say what does it cost
31:57
to send one of these out the printing cost the postage and the fulfillment what's the cost a dollar ten fine we sent out ten thousand pieces my cost is $10,100 what were the orders number of orders and it's the same same thing what would the total sales what are the cost of the orders I have all my cost and I can see if it worked or not yeah ah very
32:30
good question what is the waiting time when you send out a direct mail piece remember I said an all call to actions you have to have a sense of urgency which is a which is a secret that quite frankly few people really talk about if you get this direct mail piece and open this up or any of these they almost all have some type of sense of urgency I want to see what the call-to-action is here okay this one here for example I'm
33:14
noticing for the first time doesn't have the sense of urgency and the call to action that should be in here which is this offer is only good for seven days or you put a specific date in here notice to take advantage of this special opportunity you must order within seven days so I say now seven days from what so but you have to put some type of urgency and what's that know if I mail
33:50
this out today I'm usually thinking all my orders are coming in within thirty days I have a 30 day window so I know that I got and I'll get a little trickle I'd give myself from the day I mail it I got 30 days before I look at the whole whole Direct Mail program and I'll give you a secret about mailing you mail it on Saturday and you take August off
34:20
never mail anything don't tell anybody don't mail in August you know you get gets dropped off at the post office it gets mailed on Saturday gets processed and dropped off on Saturday mail first thing Saturday morning if you're going to the post office you go to the post office in Saturday morning you have a mail house it gets dropped Saturday they're gonna get it Monday Tuesday or
34:57
Wednesday trust me yeah yeah there's something about the weekend and the deadness and the energy I can't tell you drop it on Saturday it for some crazy reason there are certain things that when we test it always shows a result I don't know why I'm just telling you we get better results if you drop it on Saturday I don't know why what's that what because in August nothing works you just get poor results yeah if you if
35:32
you're if you're using directly on the month of August you're just gonna get poor results I can't tell you why Matt with with with Direct Mail ah very good question spaced repetition and Direct Mail well let me tell you a little secret about Direct Mail so you have a mailing list let's say you have 10,000 names and maybe you tested a thousand names just to be very cautious and it worked well so now you mail out ten thousand pieces
36:00
and ten thousand pieces let's walk through an example well let's just say 10,000 pieces cost $10,000 let's say you were selling one product mega memory for 150 dollars and I'm just gonna make this up because it's not gonna be the numbers but for ease
36:40
you got a three percent conversion rate which means three percent of the 10,000 people bought three percent of ten thousand is three hundred correct so three hundred people times a hundred and fifty dollars apiece it's forty five thousand dollars okay 300 orders times a
37:12
product cost of say fifteen fifty dollars is fifteen thousand that's thirty thousand thirty thousand less to ten thousand and postage is twenty thousand dollars in profits not going to happen but I'm just giving you the math okay the point is you spend ten thousand dollars you made twenty not gonna happen but you made money what do you do with that same list let me tell you 30 days later you mail it again the
37:46
exact same piece to the exact same list so here's here's kind of the math here with Direct Mail if you make money on the first mailing here's the math if you if you take out the people that bought and you mail that same list the exact same list again figure you'll get 30 percent or 70 percent reduction so if
38:21
you got if you got 1,000 people to buy the first time you mail the list you'll get 300 people to buy the second time you mail the list it's about 30% it could be as high as 50% so the question is you mailed 10,000 the first time but a thousand people bought so now you have 9,000 if you spent $9,000 and mailed
38:54
this and got 300 people to buy which is 30% of the thousand number would you make money and the answer is in this example yeah cuz you have $100 profit per right so you can still make money even if you get only 300 orders 300 orders so what's 30% of that 100 if you
39:28
had a hundred people buy and now you have eighty seven hundred mailed would you have made money yeah so you can mail it again in another thirty days and by the way if this number is different if it's fifty percent of this number then the next one's gonna be fifty percent as well so you can mail a list as many as three or four times and still make money on it same everything nothing changes that's why you get the same direct mail
40:13
piece or catalog over and over and over again spaced repetition and it works this is a very important significant secret which is multiple mailing the same list now I want to get fancy you can tweak the piece where it says we sent you this information a month ago but maybe it got lost in the mail because we didn't hear from you and we
40:48
heard from so many other people who were taking advantage of this program so I wanted to resend it to you so you could tweak it a little bit and you could even say maybe you didn't think this was a good enough offer the first time I sent it to you so I'm gonna sweeten the pot I'm gonna do something even better so you can try that as well and for some of you you you you you know you like getting fancy and quite frankly it could
41:18
be very effective how do you know you don't get a guess some tests and again some people just love doing this and love figuring this out like a code and it is fun I used to do this I used to be fanatical about coming up with every little idea or tweak or different and testing 50 different offers and 50 different things and man I loved it it was insanity then I got a life no I'm kidding
41:49
because I didn't get a life no the point is it can be really really fun and it's also fun when you when you know you're this close to cracking the code but it's also fun just to just to repeat the activity and just do it over and over again and then the money just keeps coming in - that's a lot of fun ah very good question if I rent the list once and I mail it do I have to rear enten yes because
42:22
you're renting it for one-time use remember they have it seated which means see if it means they put in fake names in there would you go to their office address or through their PA boxes so if you take that names and photocopy them and mail them once and then without paying that mailed it again they're gonna get your second mailing and they're gonna call you up not very happy so yeah you're renting it again correct once you have the order but you're not mailing those people because they're you know they're now your customer because they purchase from you and so you can mail them something else
43:00
correct however if you're doing a direct mail to your customers for a different product you know you're not renting it you're not renting those names okay classifieds print space direct mail short foam radio TV producing the ads is lots of fun it's an exciting process and it's exciting to take an ad that already we already have one for example a short form commercial for mega memory that generates a certain number of calls per thousand well quite frankly maybe you'll do a better job maybe you can come up with something a bit more creative it's
43:34
a lot of fun something you can try or a short form TV you know maybe you see a TV ad that you like the template and you you know kind of want to produce one for yourself exclusively fantastic you know go for it maybe an infomercial maybe maybe you'd like to sell it and and produce an infomercial for mega memory you know that's fine you know go for it and and and maybe you can be a person just like when I was selling Dalton McCreary straight-shooting golf you know instead of Dalton selling it I
44:05
was talking about it you know that's an option Amy product there's a lot of great products out there yes [Music] now that's the key thing was and I called it now I test everything so we had I don't know how many eight hundred members what did I do well I'm sitting there on a Saturday morning calling every single number on
44:47
the sheet because I want to make sure that they work you put up an 800 number and people just assume that it's working or you assume it's going to the right it's being answered by the right script if you're using a call center oh yes what happens when they call this number oh it's answered thanks for calling mega memory really really mr. Khan executive hold on one second let's put this on speakerphone okay what you dial the 800 number thanks for calling Joe's pool
45:19
room really mega memory okay but how would I know that because I called it something can go wrong you have to look pay attention check verify so I always checked everything you have to check the 800 numbers make sure it's working if you have somebody buy media and they are actually running a media if you buy media at a radio station and they say
45:51
yes the media ran yesterday you know we didn't get any phone calls except one and that was my test call how do you how do I know it ran well I can guarantee it ran really how can I get how can you guarantee they send over an affidavit verifying that it ran now most of the affidavits are just stamped and signed off they lie but at least you get something so you can have to verify that stuff was run sometimes because
46:23
sometimes you bought media but there is no calls that phone number why didn't it run because the kid who was working there at the radio station put in the wrong tape and he played somebody else's infomercial well that's happened to my advantage too I'm sitting there all of a sudden BAM we get a slam with calls on some 800 number where did that come from well some idiot put my show in when they should have put tae-bo and they've ran
46:54
the wrong one now I didn't get charged and tae-bo got a refund and the kid got fired so that's what happens right that's what happens well when the infomercials running at 2:00 a.m. in the beginning I wasn't taking the calls because our show was so big right from the giddyup I went right to a call center so I personally didn't take the
47:25
calls at my house but I did go to the call centers and answer calls so I could hear what the customer was like and how I could tweak the script because I wanted to actually take the call and tweak the script and I wanted the call center staff to think this guy is you know is is real so when I was up there at the call center walking around and I said I want to be able to answer phone calls and I want to meet the people that are answering calls for my product they said well no one's ever done that before
47:56
I said well I find that odd but I'm here and so they had to check with clearance and security because they were like wait a minute maybe he's just trying to steal information about other people's campaigns you know because they didn't know what I was doing I was like no I want to answer calls and I want to talk to the reps who are answering my calls so they were really nervous well there's screens up there with tae-bo and with you know this and that and different products and you know they you know I go look all I have to do is call the number and I'm gonna get the script I mean it's
48:27
just you know not the CIA what's wrong with you people but they were really crazy so I finally got in answered phone calls and then talked to the reps and that weekend after I just was there and actually talked to some of the reps and phone calls the closing rates went up 15% because the belief level of the people they didn't change the script they read the same script but the fact that I was physically there just walking around and actually saw me the guy on
48:57
television and I shook some hands 15% increase in closing if there isn't evidence that energy and belief can affect sales and can affect results that example I think hits it and proves it more than anything they didn't change their words because they couldn't they had to read the script verbatim or they got fired so they didn't change a word
49:29
in the script what change was the energy they were putting forth to the customer the energy of belief that's the only thing that changed and it increased closing rate 15% that's how powerful it is makes sense good so this whole this whole procedure it's relatively walkthrough it's pretty much walk through the database marketing is
50:02
nothing more than this why database marketing is Direct Mail to the customer so if you develop a direct mail piece you're mailing it to your customer no difference email marketing if you're developing an e mail piece you're just emailing it to your customer the only thing that's different here is renting the list which you're not going to do in let's get really big anyway or outbound telemarketing outbound telemarketing is not here so let me tell you a little bit
50:34
about outbound telemarketing it's your customer so you can outbound them why would you outbound them and how would you outbound them you would call your customer and try to sell them another product if you have a good product to sell them why would you call the customer instead of just sending them an email or direct mail piece because sometimes a telephone call is going to produce better results
51:07
than an email or a direct mail piece and sometimes a telephone call made after you sent a direct mail piece or an email can be very very effective yes good
51:41
question question is if I sold a very expensive product to somebody would I do an outbound phone call just to see if everything is okay and you have any questions kind of like you know customer service quality control phone calls that were you saying you know this is not something that's used very frequently in
52:12
this industry on a very high ticket item maybe that's a good thing I don't know we've never done that but what we have done is if I sold you a product let's say and I'll just give you an example mega memory and then I happen to be putting on a mega memory seminar live and I send you a direct mail piece and saying hey I'm doing a live mega memory seminar would you like to come the tickets are two hundred and ninety seven dollars and then I also send you an email hey I'm doing a mega memory and
52:43
then a few days later anybody who ordered I pull those names out and the ones who haven't ordered yet I call and there's two ways to call actually through is to call the first way to call is your internal staff calls real people pick up the phone and call hi Joe this is Harry calling from the mega memory office we would sent you some mail and an email about an upcoming seminar for 297 dolls I want to see if you got it if you had any questions and you know obviously I wanted to call and courage you to go to
53:15
the memory seminar you're there to sell them the memory seminar the first type of call is your internal people the second type of call is you go to an outbound call center this is what they specialize in and you say you know I'm developing a hundred names a week and I want your company to call them thirty days after they buy our product to try to sell them a three thousand dollar personal coaching program okay fine
53:47
and your Commission's gonna be this and so when we work out a deal you're a professional you get your crew together you write a script and outbound script and we make a deal and then I'm hiring you you're calling you're selling some high-priced product you usually paid some high percent Commission I get the difference and one of us has to deliver the product that we're being sold that's method 2 method 3 is what's called a robo call and a robo call is an automated call and the automated call is
54:19
recorded and it could be you or it could be a professional voice-over person and it's designed to encourage the listener usually to go to a website or call a number to buy something and it could be just think of a robo call as a short form radio commercial that's all it is just think of a robo call as a short form radio commercial because that's all it is
54:51
hi Joe this is Kevin Trudeau you've purchased mega memory recently and the reason I'm calling is the advanced mega memory program is something I really want you to consider it includes names and faces even more than you have in the original mega memory but most importantly it covers a lot about cards now this program as you know normally goes for $199 but for the next 24 hours I'm gonna let you buy for just $97 plus I'm gonna throw in a CD called money-making secrets revealed absolutely free if you want to get the advanced mega memory program with the freeze
55:21
money-making secrets revealed I want you to go to this website right now in order or I'd say or just call this number within the next 24 hours and order and so I would do a robo call trying to sell them something question yeah good question on refunds if you hire a fulfillment company to handle your fulfilment they're gonna be the company that gets the refunds yeah basically
55:55
what happens is a refund is handled two ways a you get the product you don't like it you don't call you just mail it back with a request for a refund that's the most common because nobody calls it - they want a refund they just mail the product back and ask for one the second one which is not so common is somebody will call the number and saying I want a refund in which we say no problem ship the product back and where does that call go it'll go to the company that's handling customer service and refunds
56:25
either you guys internally or a fulfillment company that you hired they take that call they tell the person please send it back and if they're processing the credit card for you they'll also process the refund for you as well yes yeah in ballads and declines I'll give you the the couple ways to handle it the easiest simplest way in the world is when the person calls to order you say hold on let me get an approval code and you get an approval code now if you're taking the orders yourself you have the
57:03
ability to have what's called the Zaun machine or some point-of-sale terminal physically sitting right there with a keypad and you take the order and write it down on a piece of paper and I go hold on let me get an approval code okay perfect you're good to go or that just came up decline do you have a different card that's a simplest way if you go to an inbound call center they have the
57:34
ability in front of your computer when they go give me your name and address city state zip okay hold on let me get an authorization to have the computer authorize it right there and if it comes up invalid and the climb ask for new card that's what I recommend but it doesn't matter because some of those people that's the only card they have you're gonna lose the sale anyway so the other option is you just collect the card and then the next day try to charge it and you get a 5% or 10% in download or decline rate just what happens and
58:04
then what do you do well there's like a thousand things you could do option one is don't do anything two days later try it again two days later try it again next option pick up the phone and call them if you're a small operation pick up the phone and call the guy you took the guy to order right I mean you're on the phone right now his order all right we'll call him back hey so many times I'd call something online to buy something and Mary answers the phone and I know that she's in the supermarket or something because I can hear it went through her cell phone and I asked about
58:35
the product and say can i order she's old can you order online well not actually I like to order on the phone well can you call me back in an hour you know okay sure Mary you know and I call her back and oh now I'm at a place I can write that okay and then she'll call me back you know I tried to process this the card didn't go through well I gave you my shipping address maybe you need the billing address oh yeah building address no problem you know you're all and I go how how big is your business oh it's you know it's kind of small we only do about you know two or
59:06
three hundred thousand dollars a month you know yeah I know it's a small yeah yeah it's just me and my husband you know the lawn line business a little set you know sales and that's gross you know they get probably 50% product cost and everything else and overheads but they do okay right it's nice little business you know yeah I don't I don't send I
59:45
don't send them anything I don't think so you know the tree has to be fair it has to be an even exchange and in exchange in abundance but not an exchange where it's an uneven exchange now pay attention and listen and this is a real tricky area in business you have what's called an uneven exchange I give you $35 for a stake and you give me an a Salisbury steak that was frozen boiling
01:00:17
a bag I'm like I've got gaffed this is done this is not a $35 steak okay that's an unfair exchange right I gave more than I received a fair exchange I paid $35 for a steak and I get a Morton's $35 steak that's a fair exchange here's an exchange in abundance I paid $35 for a steak I get my Morton's steak plus I get a beautiful side of maybe some sauteed mushrooms or a
01:00:49
vegetable that goes with it or I get some mistakes sauce or and I get great service so I got my steak but maybe I got a great waiter and great service and the and the manager came over and said is everything okay that's an exchange in abundance not only did I get what I paid for but I got a little more another unning even exchange the watch this pay attention listen you give $35 for the steak you get the steak and the guy says I'll tell you what we're gonna do let me give you a bottle of wine to Ian
01:01:21
let me give you some hollandaise sauce and I'm gonna throw in some free french fries and some potatoes au gratin and the owner wants to give you a dessert absolutely free and we'll give you 50% off your next trip here how do you feel about this transaction what's wrong there's something wrong here you don't feel good about this transaction you feel a little bit guilty there's something wrong here why it's not a fair
01:01:50
exchange you have an uneven exchange on this side in which you got screwed you have an uneven exchange on this side where the other party got is getting screwed and then the good ones are an exchange of an equal exchange or an exchange in abundance if you have an uneven exchange where you give more than the person is going in barely this causes resentment and it causes a problem surprisingly enough this is why C's boy every time I do something good
01:02:23
for somebody it comes back to bite me in the butt you do something good for your best friend all of a sudden they resent you for it because if there's an even exchange that person feels animosity toward you it's an amazing phenomenon but this is why if somebody says can you loan me some money I'm homeless no but if you want to shine my shoes I'll pay
01:02:52
you $20 to understand the difference no I'm not gonna loan you any money but I'll tell you what if you sweets move out in front of my house I'll give you some money I'd be more than happy to do that and then they sweep twice well I swept it I go no you didn't you took that broom and moved it two times you ain't get nothing you want it you you want it it has to be a fair exchange it's good for them and it's good for you
01:03:24
if there's not it doesn't work and remember don't feel guilty about making a profit so a lot of times we almost feel guilty that we're making a profit so we want to continue to give more and more back right so don't don't fall you don't put yourself into that position it's a very good thing point to bring up so if a customer is screaming and hollering and unhappy and I say okay fine you know what could make you happy I want my money back plus the postage to handle me fine and I'll tell you what
01:03:57
you can keep the product - because she's so out of balance I'm bringing I'm trying to bring it back into balance but I don't want to throw out of balance the other way either - the difference question there's two basic kind of continuity products one is information and one is what's called a consumable
01:04:32
information or consumable those are your two continuities information or consumable and I'll give you two examples information a newsletter we send it out every month for 595 I highly encourage you to have newsletters as a continuity why because a newsletter which is mailed to your customers that they are paying for gives you the opportunity to send a solicitation for another product without paying any
01:05:04
additional postage you every month have a chance to put some mailing in to sell some product to all your customers posted tree if you didn't have that really uneven exchange or just somebody who tried it they didn't like it just say well we'd like to do business in the future here's a little something for your time it's not really uneven I don't think so because thing about it you go down to Nordstrom's you buy something you didn't like you bring them back and you get a refund they don't say and let me give you a
01:05:43
bonus just maybe but they probably give you a coupon if you bought five pairs of pants there right because you know words hey thanks for coming and on your next order you know I went down to my dentist I go there all the time to get my teeth clean and he goes you know you come here more than anybody you're like here every three or four weeks I go yeah get these damn braces I drive me crazy there you go so I'll tell you what let me give you an oral-b electric toothbrush on that on me and I yeah well I didn't feel bad I'm giving this guy so much business right and he tries you
01:06:16
know not cheap he's charging baby I mean so I feel no problem taking the oral-b it ain't it ain't cheap teeth cleaning okay so continuity number one information now when you send a selling your continuity somebody says well you could do an email newsletter yes and you'll get refunds and returns and people will cancel because it's junk if they're gonna if you're gonna charge $5.95 or $6.95 or seven or eight or nine
01:06:48
whatever you in a charge send them a physical newsletter in the mail plus it gives you the chance to put in something it's better that way nope I do next is consumables so information is number one the second one is a consumable and the most effective consumable is supplements vitamins or minerals something that needs to be taken all the time and should be taken all the time with Katie approved for example the
01:07:21
Katie Daly is a good product all over it's a premium price so in the process of putting together a much more inexpensive single bottle that can be taken certainly not as effective and complete as the base as the daily but something that maybe it's a real starter nutritional supplement that everybody can afford and so that's an option or you can come up with your own there's a lot of you know products out there good stuff so far good good [Applause]
01:07:53
[Music]

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