- There's this famous guy, I've read about him,
I don't know, at least a dozen times, he's quoted
in a lot of different places, he's rather famous,
a guy named John Wanamaker.
He said this famous quote, and I think he actually
said it in the 60's.
I've seen a couple different references to it.
He famously said, "Half the money I spend on
"advertising is wasted, the trouble is,
"I don't know which half."
That's what he's known for that.
And I'm gonna say John here is being an optimist.
Very optimistic when he said that quote,
because in all my experience,
and I've literally probably spent close to
a million dollars of clients' advertising money
in over my 10-year period of time, myself,
that I've had the authority and signed off on.
And I'm gonna say that he was even more wasteful
than half, because I'm gonna say in the reality,
a ton of advertising, 80% of it's wasted.
See, the point that John didn't know is by
not being able to identify which half was
of any value to him, he was wasting it all.
One of the biggest keys you want to do,
is you want to find out who your clients are,
and then you want to take 80% of your money and resources,
and you want to pour it back into that 20%.
If you can do that, then what happens is,
is you can improve your ROI, not just four times,
if you look at the math and everything,
you can actually improve it 16 times,
by focusing on the right clients.
And those clients are the quality clients.
At the end of the day, John's famous quote here was,
he was missing out on 96% of the opportunity.
Just by what he was doing.
When you think about it, this ties back in,
you need to focus 80% of your time and energy
on the top 20%, and this will increase your ROI
by 16 times.
So if you're writing notes, this is one
of the key points to write down.
It's another one of those, I know it,
but are you doing it?
Is selling to the right person,
or building the relationship with the right person,
is the most important thing.
It overrides every sales method,
every marketing technique, every social media technique,
every negotiating technique.
It is the foundation.
You need to figure out and start selling
to the right people or building the relationships
with the right people.
That is the key.
You need to identify and find out if they're
a good fit for you.
And then what you need to do is spend that 80%
of your time, your energy and your resources
building a relationship or doing business with them.
Don't get distracted.
In our modern day and age you can get distracted so easily.
If John had known, you know that quote from before,
if he had know that, if he had focused 80% of his money
on the right 20%, he would have been improving
his return 16 times.
What he should have done, which he wasn't doing,
is he should have done some sort of advertising
where he was getting people to put up their hands
in some sort of way, and say hey, I'm a prospect.
In some sort of format or another.
And then, from then, he would need to create
his own qualifying process, whatever it was.
I have to look at what his situation was,
it's different for everybody.
And then once he qualified them, the higher-level clients,
then he should have been focusing the majority
of his energy on his clients there,
and his resources.
And what we say as a rule, is if you can focus on that
top 20%, that's where you're gonna get your 16 times return.
That' what I do.
Most of the times I only work with, on average,
two, three, five clients at the most.
And I'm looking for those top clients.
That's why I can work with those clients for 10 years.
Because they are part of my top 20% of clients,
that's the key.
There's just that line again just saying there
what you're seeing, that's just the key.
Reality, you can triple your income when you spend
80% of your time in front of the right people.
Most of the people I talk to and everything else,
and the reality, they are spending just way
too much time with the wrong people
and they're not spending any time figuring out
how to qualify, come up with a process,
or anything else, that will actually put them
in front of their right clients.
Let me tell you a quick story.
One of my clients sells a product or program.
It sells between $1,000 and $2,000 depending
when he's selling it, where he's selling it.
What we find out, is 20% or less of his prospects
ever buy this program.
The bottom line is they're voting with their wallet
and their credit card.
They are qualifying themselves.
You notice that process or pattern,
they got to be able to qualify themselves,
they are qualifying themselves of the program.
What he does, or what I've taught him,
and he's not perfect, his team focuses 40 to 50%
of the time, it's not 80, but 40 to 50% of the time,
focusing and working on those 20% of clients.
They'll talk to them, they'll call them,
they'll build relationships,
they'll do whatever they do.
A lot of those clients do not buy another program
for a minimum of one year.
Sometimes, two years.
But when you look at the mathematics
and everything else, it is completely worth it,
because what they've done, or what we've figured out,
is that we will focus 50 to 80% of our energy
on the right 20% of the clients,
and those are the right 20% of the clients.
You've got to figure out your own process,
but you need to identify who are your right 20%.
That is the key from that standpoint,
is figuring out which ones are those.
And then, at that point, you can start figuring out
how to deliver more value to them.
Now, do you see, if you're a product pusher,
how this can be a challenge?
Because the reality is, you haven't built a relationship
with a client.
You're not differentiating those clients
in any form or any way.
How you gonna be able to identify
who your top 20% clients are?
And then when you've been a product pusher,
how you gonna switch from a product pusher,
all of sudden into a relationship?
It's very challenging.
You've got to start from day one taking
the relationship, and just a sifting,
or a filtering process, so you can find out
who your top 20% are.