1
00:00:00,160 --> 00:00:04,680
Speaker 1: Most people think that when they acquire wealth, success, getting

2
00:00:05,040 --> 00:00:09,160
Speaker 1: the biggest house, the fastest growing company, you know, the

3
00:00:09,200 --> 00:00:14,400
Speaker 1: prettiest wife, whatever, you know, the distinction in Forbes, that's

4
00:00:14,480 --> 00:00:17,040
Speaker 1: going to transform them. The heavens are going to open,

5
00:00:17,160 --> 00:00:19,000
Speaker 1: the angels are going to sing you four is going

6
00:00:19,079 --> 00:00:21,400
Speaker 1: to happen. All their warriors are going to get anti climactic.

7
00:00:21,440 --> 00:00:23,639
Speaker 1: Ain't gonna change anything. The meaning of life is the

8
00:00:23,680 --> 00:00:27,800
Speaker 1: process this conversation. If we're talking to the weight person

9
00:00:27,920 --> 00:00:31,160
Speaker 1: or the janitor or somebody important, that's as good as

10
00:00:31,200 --> 00:00:34,880
Speaker 1: it gets. So you better enjoy the moment.

11
00:00:35,520 --> 00:00:38,200
Speaker 2: What if I told you there was more to the

12
00:00:38,240 --> 00:00:43,360
Speaker 2: story behind game changing events? Get ready for my new podcast,

13
00:00:43,360 --> 00:00:47,400
Speaker 2: That Moment with Damon John will jump into the personal

14
00:00:47,440 --> 00:00:51,240
Speaker 2: stories of some of the most influential people on the planet,

15
00:00:51,520 --> 00:00:56,480
Speaker 2: from business mobiles and celebrities to athletes and artisans. Mister

16
00:00:56,560 --> 00:01:00,720
Speaker 2: j Abraham, who's actually my mentor, a legendary marketer. Jay

17
00:01:00,880 --> 00:01:05,280
Speaker 2: has He's attributed to what they say, creating nine billion

18
00:01:05,360 --> 00:01:10,240
Speaker 2: dollars worth of revenue in regards to advising companies. He's

19
00:01:10,280 --> 00:01:13,760
Speaker 2: worked with everybody from Tony Robbinson the Nasdaq to Icy

20
00:01:13,800 --> 00:01:18,399
Speaker 2: Hot to probably about three hundred different industries and it's

21
00:01:18,440 --> 00:01:20,839
Speaker 2: my pleasure to interview him today. Thank you for coming, Jacob,

22
00:01:21,120 --> 00:01:25,560
Speaker 2: Thank you as always. How did you really initially get

23
00:01:25,600 --> 00:01:29,400
Speaker 2: started in the concept of marketing which today everybody believes

24
00:01:29,440 --> 00:01:32,840
Speaker 2: they're marketing their brand, But you sawt off a little

25
00:01:33,280 --> 00:01:35,960
Speaker 2: what a little time behind you when it wasn't as easy.

26
00:01:36,160 --> 00:01:38,240
Speaker 1: Yeah, no, no, it's very simple. I got married the

27
00:01:38,280 --> 00:01:41,040
Speaker 1: first time at eighteen, I had two kids at twenty,

28
00:01:41,680 --> 00:01:44,120
Speaker 1: I had the needs of twenty of somebody forty at

29
00:01:44,120 --> 00:01:46,960
Speaker 1: twenty in the world didn't care. The only people who

30
00:01:47,000 --> 00:01:48,840
Speaker 1: would give me a job didn't give me a job.

31
00:01:48,920 --> 00:01:51,040
Speaker 1: They said, I'll give you a desk and you can

32
00:01:51,080 --> 00:01:54,520
Speaker 1: help either sell more people, set up deals and I'll

33
00:01:54,560 --> 00:01:56,400
Speaker 1: give you a piece, or I'll give you a commission.

34
00:01:56,840 --> 00:02:00,640
Speaker 1: And when you only eat if you're and you figure

35
00:02:00,640 --> 00:02:03,040
Speaker 1: out very quickly what works and what doesn't, and what

36
00:02:03,120 --> 00:02:05,960
Speaker 1: works better and what doesn't. And that was the origins

37
00:02:05,960 --> 00:02:08,080
Speaker 1: of my marketing education.

38
00:02:08,400 --> 00:02:11,120
Speaker 2: But but did you have a formal education. Did you

39
00:02:11,160 --> 00:02:14,919
Speaker 2: come from a middle class family, a wealthy family, a

40
00:02:15,600 --> 00:02:16,800
Speaker 2: lower income family.

41
00:02:17,200 --> 00:02:22,120
Speaker 1: My background was I was born in Indianapolis. My parents

42
00:02:22,200 --> 00:02:26,080
Speaker 1: were not poverty struck, but I would call them lower income.

43
00:02:26,160 --> 00:02:29,600
Speaker 1: We lived in a decent, little three bedroom house that

44
00:02:29,760 --> 00:02:32,960
Speaker 1: had a gravel driveway in no garage, and I had

45
00:02:32,960 --> 00:02:38,679
Speaker 1: to walk twenty blocks to school. And my education is

46
00:02:38,760 --> 00:02:40,480
Speaker 1: high school, okay.

47
00:02:40,520 --> 00:02:43,360
Speaker 2: And so now you get to this point where, like

48
00:02:43,400 --> 00:02:45,160
Speaker 2: you said, you have two kids, you have the response

49
00:02:45,160 --> 00:02:47,920
Speaker 2: you're twenty, but the responsibility of a forty year old,

50
00:02:48,360 --> 00:02:50,120
Speaker 2: and you get a job and a desk and I

51
00:02:50,120 --> 00:02:51,840
Speaker 2: don't even know it's called a job. You get a desk.

52
00:02:51,919 --> 00:02:53,240
Speaker 2: I got a desk, and you basically get it.

53
00:02:53,400 --> 00:02:54,799
Speaker 1: No, they didn't get a desk. I got a chair.

54
00:02:54,919 --> 00:02:59,080
Speaker 2: You gotta eat what you kill situation exactly. Now, what

55
00:02:59,280 --> 00:03:01,360
Speaker 2: happened at that point point? How did you start to

56
00:03:01,880 --> 00:03:04,640
Speaker 2: monetize it? Or maybe you didn't, maybe you got fired.

57
00:03:04,840 --> 00:03:06,840
Speaker 1: You know, well I got both of those. I got

58
00:03:06,960 --> 00:03:10,440
Speaker 1: monetizing and I also got fired, So different experiences. But

59
00:03:10,760 --> 00:03:13,360
Speaker 1: what happens is I learned, and I didn't realize at

60
00:03:13,400 --> 00:03:17,120
Speaker 1: the time, but I learned the art science of testing,

61
00:03:17,280 --> 00:03:22,800
Speaker 1: testing different approaches, testing different propositions, testing different ways of

62
00:03:22,840 --> 00:03:26,840
Speaker 1: not just selling direct but getting access to people. And

63
00:03:27,200 --> 00:03:30,360
Speaker 1: what I faulted towards very quickly was the sixth degree

64
00:03:30,360 --> 00:03:33,760
Speaker 1: of separation. The turning point in my career was I

65
00:03:33,800 --> 00:03:37,640
Speaker 1: worked for a product called Icyocht, which today is a

66
00:03:37,680 --> 00:03:40,560
Speaker 1: mainstay arthritis product, but back then it was a mail

67
00:03:40,640 --> 00:03:41,400
Speaker 1: order Icy Hot.

68
00:03:41,640 --> 00:03:42,480
Speaker 2: Icy.

69
00:03:42,680 --> 00:03:44,680
Speaker 1: Yeah. When we started, it was a little tiny twenty

70
00:03:44,760 --> 00:03:48,480
Speaker 1: thousand dollars a year company. We bought out of bankruptcy

71
00:03:49,400 --> 00:03:52,320
Speaker 1: and I had to go We had no money. I

72
00:03:52,320 --> 00:03:56,960
Speaker 1: had to go to radio stations, television stations, magazines, newspapers

73
00:03:56,960 --> 00:03:59,920
Speaker 1: and persuade them to run ads for us on the

74
00:04:00,600 --> 00:04:04,200
Speaker 1: where we didn't pay for them. We gave them all

75
00:04:04,280 --> 00:04:06,760
Speaker 1: of the revenue on the first sale, and even that

76
00:04:06,960 --> 00:04:08,840
Speaker 1: was a very hard challenge.

77
00:04:09,280 --> 00:04:12,080
Speaker 2: So, okay, so this is you're basically saying, you know,

78
00:04:12,120 --> 00:04:14,119
Speaker 2: and we always say that you're never going to create

79
00:04:14,160 --> 00:04:16,840
Speaker 2: anything new. This is basically affiliate marketing.

80
00:04:17,120 --> 00:04:19,520
Speaker 1: Oh yeah, but if the highest magnitude in a direct

81
00:04:19,600 --> 00:04:22,160
Speaker 1: way way way way pre internet.

82
00:04:22,360 --> 00:04:24,520
Speaker 2: Right. So, now, all of a sudden, there is something

83
00:04:24,600 --> 00:04:27,400
Speaker 2: that it's a cream. It's called icy Hot. Nobody's heard

84
00:04:27,440 --> 00:04:29,400
Speaker 2: of it. For the most part, you have to go

85
00:04:29,440 --> 00:04:30,880
Speaker 2: out there. You don't have any money, so you have

86
00:04:30,880 --> 00:04:33,080
Speaker 2: to go out there now and look for outlets for

87
00:04:33,440 --> 00:04:38,320
Speaker 2: advertising publications. There's no Twitter, Instagram, Internet, cell phones, there's

88
00:04:38,400 --> 00:04:42,960
Speaker 2: nothing like that, right alutely, And so they start to

89
00:04:43,200 --> 00:04:47,640
Speaker 2: advertise this, and you start to see them monetize the

90
00:04:47,680 --> 00:04:49,040
Speaker 2: advertisement of this. Correct.

91
00:04:49,480 --> 00:04:51,479
Speaker 1: Well, there's a little bit more, and it goes to

92
00:04:52,000 --> 00:04:56,480
Speaker 1: it goes to understanding motivation. I didn't realize it until afterwards.

93
00:04:56,520 --> 00:05:02,880
Speaker 1: But I had to establish credibility. I had to establish

94
00:05:03,760 --> 00:05:07,320
Speaker 1: prioritization because they had nine million people wanting access to

95
00:05:07,920 --> 00:05:11,480
Speaker 1: you to unsold time. I had to cover all the

96
00:05:11,520 --> 00:05:15,520
Speaker 1: negatives that they were worried about before I could even

97
00:05:15,560 --> 00:05:18,359
Speaker 1: get him to say yes, I'll try it. So I

98
00:05:18,360 --> 00:05:19,960
Speaker 1: had to learn all those things at the same time.

99
00:05:20,320 --> 00:05:23,159
Speaker 2: So you basically had to punch holes in every one

100
00:05:23,200 --> 00:05:26,200
Speaker 2: of your pitches because you knew that.

101
00:05:26,040 --> 00:05:28,480
Speaker 1: I got a better deal. I'll give you more money,

102
00:05:28,680 --> 00:05:29,400
Speaker 1: mine's cleaner.

103
00:05:30,520 --> 00:05:31,599
Speaker 2: So how do you convince them?

104
00:05:31,640 --> 00:05:36,480
Speaker 1: I'll tell you exactly three things. Number One, I try

105
00:05:36,480 --> 00:05:38,839
Speaker 1: to start with what's what's the problem. I always want

106
00:05:38,839 --> 00:05:41,360
Speaker 1: to know what the negatives are before I start, Well,

107
00:05:41,360 --> 00:05:45,760
Speaker 1: the negatives are. Number One, they didn't know they would

108
00:05:45,800 --> 00:05:47,719
Speaker 1: do mail order products, but they were always worried they

109
00:05:47,760 --> 00:05:50,640
Speaker 1: wouldn't get fulfilled by the mail order company or the

110
00:05:50,680 --> 00:05:54,760
Speaker 1: product wouldn't deliver. The promise or they wouldn't get paid.

111
00:05:55,000 --> 00:05:56,720
Speaker 1: So I started with those three things, and I said,

112
00:05:56,720 --> 00:05:59,200
Speaker 1: here's the deal. We wouldn't even let you sell this

113
00:05:59,400 --> 00:06:01,920
Speaker 1: until we say, and you a dozen jars to have

114
00:06:01,960 --> 00:06:03,680
Speaker 1: on hand. You're welcome to give it to anybody with

115
00:06:03,800 --> 00:06:06,360
Speaker 1: arthritis and try it first on it. Also, you have

116
00:06:06,400 --> 00:06:09,840
Speaker 1: a backup if anybody has a problem. Second, we'll let

117
00:06:09,880 --> 00:06:13,520
Speaker 1: you keep one hundred percent of the sale. You can

118
00:06:13,520 --> 00:06:15,520
Speaker 1: put it in your bank account. We don't want it.

119
00:06:15,520 --> 00:06:17,880
Speaker 1: We'll even send you forty five cents more, which was

120
00:06:17,920 --> 00:06:21,240
Speaker 1: fifteen percent more was a three dollars sale, and we said,

121
00:06:21,320 --> 00:06:24,239
Speaker 1: think about it. Why would we not make a dime,

122
00:06:24,520 --> 00:06:27,040
Speaker 1: give you an extra forty five cents and incur the

123
00:06:27,080 --> 00:06:30,200
Speaker 1: costs unless the product at least deliver the promise and

124
00:06:30,279 --> 00:06:33,560
Speaker 1: we're going to get a reorder. Third, we said that

125
00:06:34,680 --> 00:06:36,760
Speaker 1: we would back them up with anything. I mean, we

126
00:06:36,839 --> 00:06:38,360
Speaker 1: let them keep them. We had a bunch of things

127
00:06:38,400 --> 00:06:41,640
Speaker 1: like that, and I was able to out position, out

128
00:06:41,760 --> 00:06:48,359
Speaker 1: overcome out, not out sell, but just outthink all the

129
00:06:48,440 --> 00:06:51,679
Speaker 1: issues and fast forward. We got a thousand radio stations,

130
00:06:51,680 --> 00:06:56,720
Speaker 1: thousand television stations, magazines, and what happened was very interesting.

131
00:06:57,040 --> 00:07:01,240
Speaker 1: None of them were terribly great, but the economies are

132
00:07:01,320 --> 00:07:03,320
Speaker 1: the or the just the law of numbers. We were

133
00:07:03,360 --> 00:07:09,000
Speaker 1: getting as many as fifty to one hundred orders a day,

134
00:07:09,000 --> 00:07:10,920
Speaker 1: and then we got doubled, and then it doubled and

135
00:07:10,920 --> 00:07:13,840
Speaker 1: we got five hundred thousand orders, but we got twenty

136
00:07:13,880 --> 00:07:16,800
Speaker 1: five million dollars worth of free advertiser we didn't pay for.

137
00:07:17,280 --> 00:07:19,200
Speaker 1: We forced retail distribution.

138
00:07:19,600 --> 00:07:19,720
Speaker 2: Right.

139
00:07:19,840 --> 00:07:23,720
Speaker 1: The product got purchased for about sixty million dollars from

140
00:07:23,800 --> 00:07:27,000
Speaker 1: gd Serle and I was on.

141
00:07:27,440 --> 00:07:29,800
Speaker 2: Off and running to really break that down for those

142
00:07:29,880 --> 00:07:31,880
Speaker 2: who may have missed some of those points. And you know,

143
00:07:31,880 --> 00:07:37,240
Speaker 2: we're gonna find obviously common denominated between every story. It was.

144
00:07:37,760 --> 00:07:40,480
Speaker 2: You know, you wanted to go to individuals and you

145
00:07:40,520 --> 00:07:44,080
Speaker 2: wanted to downsize their risk because they didn't believe in you,

146
00:07:44,200 --> 00:07:46,920
Speaker 2: just like they didn't believe in discreators of people right risk.

147
00:07:46,960 --> 00:07:51,800
Speaker 2: So by doing that, you basically said, hey, I can

148
00:07:52,240 --> 00:07:55,800
Speaker 2: distribute the product. Because often entrepreneurs, they get themselves in

149
00:07:55,840 --> 00:07:58,840
Speaker 2: a buying, they get themselves in the advertising marketing, and

150
00:07:58,880 --> 00:08:01,000
Speaker 2: then all of a sudden, now how do I make

151
00:08:01,040 --> 00:08:03,600
Speaker 2: it all? And then you know, the retailers or even

152
00:08:03,600 --> 00:08:07,800
Speaker 2: the customer lose faith in those individuals. So to avoid that,

153
00:08:08,120 --> 00:08:11,480
Speaker 2: you gave them the product. Here you go. Proof evidence

154
00:08:11,640 --> 00:08:14,760
Speaker 2: is here, right all right. Number two is people always

155
00:08:14,800 --> 00:08:16,640
Speaker 2: want to get paid, and they want to get paid

156
00:08:16,640 --> 00:08:19,640
Speaker 2: because you know, the time they're allocating on their station

157
00:08:19,800 --> 00:08:24,160
Speaker 2: or their in their magazine. They call that their inventory exactly.

158
00:08:24,160 --> 00:08:27,080
Speaker 2: And if they don't get paid, somebody's out of a job.

159
00:08:26,960 --> 00:08:27,680
Speaker 1: Their opportunity.

160
00:08:27,880 --> 00:08:29,400
Speaker 2: So what do you say, You say, you know what,

161
00:08:29,480 --> 00:08:32,200
Speaker 2: I'm going to let you take all the profits off

162
00:08:32,240 --> 00:08:34,559
Speaker 2: of this product here, so basically and put it in

163
00:08:34,600 --> 00:08:36,520
Speaker 2: your bank, and you handed them a check. At the

164
00:08:36,520 --> 00:08:39,040
Speaker 2: most part, when you gave them the product, I was handing.

165
00:08:38,840 --> 00:08:40,240
Speaker 1: Them a check and I don't put the money in

166
00:08:40,280 --> 00:08:40,600
Speaker 1: the bank.

167
00:08:40,920 --> 00:08:42,720
Speaker 2: Now all of a sudden, you got the needle in

168
00:08:42,760 --> 00:08:44,400
Speaker 2: the vein a little bit. They know, Hey, this is

169
00:08:44,400 --> 00:08:46,920
Speaker 2: somebody who's going to deliver, and this is somebody who

170
00:08:47,000 --> 00:08:49,640
Speaker 2: we're going to be able to monetize. And now they

171
00:08:49,679 --> 00:08:53,679
Speaker 2: start to sell. So proof of concept happens at this point.

172
00:08:54,280 --> 00:08:57,040
Speaker 2: Number one, we can distribute. Number two, we can pay.

173
00:08:57,280 --> 00:08:59,840
Speaker 2: Now we get to the part of can they sell

174
00:09:00,040 --> 00:09:02,680
Speaker 2: will somebody like it? Because with both of those aspects,

175
00:09:02,679 --> 00:09:05,480
Speaker 2: it doesn't mean that you priced it right. It doesn't

176
00:09:05,520 --> 00:09:08,880
Speaker 2: mean that the product works. It doesn't mean that the

177
00:09:08,960 --> 00:09:11,880
Speaker 2: person wants it again. How does this start to sell?

178
00:09:11,920 --> 00:09:15,040
Speaker 2: Does it sell mediocre to the cell grade?

179
00:09:15,160 --> 00:09:19,760
Speaker 1: Well, I should probably give you a real quickly the backstory. Okay,

180
00:09:20,240 --> 00:09:22,319
Speaker 1: so we bought this product, and we bought it for

181
00:09:22,400 --> 00:09:25,160
Speaker 1: another reason. It was old. And when we stopped making

182
00:09:25,160 --> 00:09:27,480
Speaker 1: it originally, we started getting letters from little old men

183
00:09:27,520 --> 00:09:29,320
Speaker 1: and women. I shouldn't say that because I'm becoming a

184
00:09:29,320 --> 00:09:32,720
Speaker 1: little old man and woman too. They would say, please

185
00:09:32,760 --> 00:09:35,360
Speaker 1: start making it again. It's the only thing I can

186
00:09:35,440 --> 00:09:37,480
Speaker 1: use so I can walk to church on Sunday, the

187
00:09:37,480 --> 00:09:39,560
Speaker 1: only thing I can use to sit up and watch TV.

188
00:09:39,640 --> 00:09:42,280
Speaker 1: And we thought, wow, and then we made a realization

189
00:09:42,920 --> 00:09:46,160
Speaker 1: in our world is still today until somebody comes up

190
00:09:46,200 --> 00:09:50,840
Speaker 1: with a cure for arthritis, preseidis, rheumatism, eggs and pains.

191
00:09:51,240 --> 00:09:54,439
Speaker 1: It's a recurring it's reconsumptive reconsumption. So a lot of

192
00:09:54,480 --> 00:09:56,160
Speaker 1: lessons I learned that I was too young to know

193
00:09:56,200 --> 00:09:59,520
Speaker 1: I was learning back then. And then what happened was

194
00:09:59,559 --> 00:10:04,680
Speaker 1: we saw that the here's what happened. I learned lifetime value,

195
00:10:04,720 --> 00:10:08,840
Speaker 1: marginal networth. So the product costs US back then forty

196
00:10:08,880 --> 00:10:12,760
Speaker 1: five cents to make and ship bulk great chemicals, Glaba

197
00:10:13,000 --> 00:10:18,720
Speaker 1: goop and menthol menthols less late, it's basically chemicals. We

198
00:10:18,760 --> 00:10:21,320
Speaker 1: sold it for three dollars. We let the station keep

199
00:10:21,320 --> 00:10:23,200
Speaker 1: the full fee dollars, and we actually sent them an

200
00:10:23,200 --> 00:10:26,320
Speaker 1: extra forty five cents to blow their mind. So now

201
00:10:26,360 --> 00:10:29,760
Speaker 1: we're negative forty five cents plus the forty five cents

202
00:10:29,760 --> 00:10:34,240
Speaker 1: it costs. Got it okay, So we're negative basically tinty cents.

203
00:10:34,480 --> 00:10:36,920
Speaker 1: We found that out of very ten people that bought,

204
00:10:37,280 --> 00:10:43,000
Speaker 1: eight repurchased within the first month, and most of those

205
00:10:43,040 --> 00:10:47,320
Speaker 1: eight repurchased every month or in aggregate, over and over

206
00:10:47,400 --> 00:10:51,719
Speaker 1: and over again, almost infinitely. But it got better. Of

207
00:10:51,720 --> 00:10:55,360
Speaker 1: the eight that repurchased, we found that about four bought

208
00:10:55,440 --> 00:10:58,319
Speaker 1: at least two other products from us. And make a

209
00:10:58,360 --> 00:11:01,600
Speaker 1: long story short, every time we lost ninety cents, we

210
00:11:01,600 --> 00:11:05,920
Speaker 1: were accruing about forty dollars a year in profit net net.

211
00:11:07,000 --> 00:11:09,560
Speaker 2: Now that's amazing because what happens so it looks like

212
00:11:10,320 --> 00:11:12,240
Speaker 2: you had proof of concept because you had a customer

213
00:11:12,280 --> 00:11:15,240
Speaker 2: base that you knew already, you studied, and they needed it,

214
00:11:15,559 --> 00:11:18,480
Speaker 2: and they needed it more than from an emotional standpoint

215
00:11:18,520 --> 00:11:22,200
Speaker 2: or brand standpoint. They needed for a cure or medicals.

216
00:11:22,040 --> 00:11:25,720
Speaker 1: Like life for sustaining their lifestyle comfort.

217
00:11:25,960 --> 00:11:27,880
Speaker 2: Right, So now all of a sudden it goes out,

218
00:11:27,960 --> 00:11:31,200
Speaker 2: it starts to sell. Now take me from where that

219
00:11:31,240 --> 00:11:34,160
Speaker 2: proof of concept was with ten stations, and then obviously

220
00:11:34,200 --> 00:11:36,800
Speaker 2: you replicated that to one hundred and two hundred and

221
00:11:36,840 --> 00:11:39,480
Speaker 2: five hundred, whatever the case may be. Now, what did

222
00:11:39,520 --> 00:11:43,040
Speaker 2: you do with those customers? Were they did those customers

223
00:11:43,040 --> 00:11:46,720
Speaker 2: belong to the station or did they come in and

224
00:11:46,720 --> 00:11:50,640
Speaker 2: insightfulm how sure their names and then they belonged to you?

225
00:11:50,800 --> 00:11:53,880
Speaker 1: Okay, so very cool. And there's another there's a parallel

226
00:11:53,960 --> 00:11:56,040
Speaker 1: universe that you aren't asking because you don't know what.

227
00:11:56,080 --> 00:11:58,200
Speaker 1: I'm going to tell you that answer as well, So

228
00:11:58,320 --> 00:12:02,560
Speaker 1: let me address yours first. So the deal was station

229
00:12:02,720 --> 00:12:06,600
Speaker 1: gets to keep the check, the money. They've got backup inventory.

230
00:12:07,160 --> 00:12:10,200
Speaker 1: We fulfill the order, but if anybody complained, they had

231
00:12:10,240 --> 00:12:12,480
Speaker 1: plenty of to give them another bottle. So that was

232
00:12:12,520 --> 00:12:16,160
Speaker 1: what the backup was. They gave us. Our only deal

233
00:12:16,240 --> 00:12:18,280
Speaker 1: was you keep the money, but you have to transship

234
00:12:18,400 --> 00:12:20,840
Speaker 1: to us, send to us immediately the order so we

235
00:12:20,840 --> 00:12:23,200
Speaker 1: can get it out. It was our name, We owned it,

236
00:12:23,240 --> 00:12:25,880
Speaker 1: We owned the residual. They had no piece of anything

237
00:12:25,920 --> 00:12:28,400
Speaker 1: but the front end. We had the names for not

238
00:12:28,679 --> 00:12:32,360
Speaker 1: only our product, but because of the profile, which happened

239
00:12:32,400 --> 00:12:34,800
Speaker 1: to be that they were fifty five and older and

240
00:12:34,880 --> 00:12:37,920
Speaker 1: had a lot of aches, pains, arthritis, presidise, we were

241
00:12:38,000 --> 00:12:42,000
Speaker 1: able to monetize them for a multitude of other products

242
00:12:42,040 --> 00:12:46,000
Speaker 1: and services. The way I rolled it out after the

243
00:12:46,040 --> 00:13:09,360
Speaker 1: beginning and we got validation was I used letter. I

244
00:13:09,440 --> 00:13:12,719
Speaker 1: found people that had I always believe in this will

245
00:13:12,760 --> 00:13:16,400
Speaker 1: be integral to any question you asked me. I always

246
00:13:16,520 --> 00:13:18,920
Speaker 1: want to know who when we're trying. When I have

247
00:13:18,960 --> 00:13:22,440
Speaker 1: a problem in marketing for myself or a client, what

248
00:13:23,200 --> 00:13:28,080
Speaker 1: bigger problem is our problem going to solve if it

249
00:13:28,120 --> 00:13:30,040
Speaker 1: gets uh that's so if I can say it right,

250
00:13:30,080 --> 00:13:33,000
Speaker 1: if it gets embraced by somebody else. Our problem was,

251
00:13:33,040 --> 00:13:34,959
Speaker 1: how in the world do we get a thousand radio stations?

252
00:13:35,040 --> 00:13:37,400
Speaker 1: How in the world do we get a thousand publications?

253
00:13:37,400 --> 00:13:39,640
Speaker 1: Me calling one on one. But there were a lot

254
00:13:39,679 --> 00:13:44,600
Speaker 1: of people that had relationships with all those radio stations, syndicators,

255
00:13:44,720 --> 00:13:50,600
Speaker 1: jingle people, independent ad reps, and they had one trick

256
00:13:50,679 --> 00:13:53,800
Speaker 1: pony and sometimes they'd already sold everything they had. So

257
00:13:53,880 --> 00:13:56,080
Speaker 1: I got a hold of all of them and we

258
00:13:56,200 --> 00:14:00,160
Speaker 1: gave them. Because we only gave away three dollars, and

259
00:14:00,200 --> 00:14:04,320
Speaker 1: that forty five cents. We're making forty five dollars a

260
00:14:04,400 --> 00:14:09,160
Speaker 1: year every year forever on really a ninety cent investment.

261
00:14:09,240 --> 00:14:11,480
Speaker 1: So if you look at that, we had enough cash

262
00:14:11,520 --> 00:14:12,760
Speaker 1: flow to do it. I could have gone to any

263
00:14:12,800 --> 00:14:16,760
Speaker 1: investor to get money. But we gave more money again

264
00:14:17,280 --> 00:14:20,440
Speaker 1: to people that had networks. If you were a syndicator

265
00:14:20,480 --> 00:14:23,240
Speaker 1: and you had fifty stations, you get me the fifty

266
00:14:23,280 --> 00:14:27,520
Speaker 1: stations and you get an override. If you're a rep

267
00:14:27,560 --> 00:14:30,840
Speaker 1: for Blair and you've got a bunch of radio or me.

268
00:14:30,960 --> 00:14:33,240
Speaker 1: And so I was able to leverage the leverage to

269
00:14:33,240 --> 00:14:35,760
Speaker 1: get all that because we could have paid I mean,

270
00:14:35,800 --> 00:14:38,440
Speaker 1: if we went to the bank, we could have literally

271
00:14:38,480 --> 00:14:41,360
Speaker 1: paid one hundred percent of the forty dollars in year

272
00:14:41,400 --> 00:14:43,280
Speaker 1: one and made out like a bandit because we had

273
00:14:43,320 --> 00:14:45,720
Speaker 1: year two and three and four and forever. But when

274
00:14:45,760 --> 00:14:50,040
Speaker 1: we sold the business, if I said this, we accidentally

275
00:14:50,080 --> 00:14:53,800
Speaker 1: forced retail. It became on the shelves, but we got

276
00:14:53,800 --> 00:14:57,880
Speaker 1: to keep the five hundred thousand repeat buyers in the transaction.

277
00:14:59,160 --> 00:15:02,320
Speaker 1: A consumer broughtut company back then. Today they've wanted for

278
00:15:03,040 --> 00:15:05,160
Speaker 1: social media they didn't have it. It was not even

279
00:15:05,160 --> 00:15:06,080
Speaker 1: a balance sheet item.

280
00:15:06,120 --> 00:15:08,960
Speaker 2: It was nothing right, And I get it because you

281
00:15:08,960 --> 00:15:13,600
Speaker 2: know basically to you know, to bring to narrow down.

282
00:15:13,680 --> 00:15:16,400
Speaker 2: Here's what you were doing. You have your amazons of

283
00:15:16,400 --> 00:15:19,120
Speaker 2: the world. Today, if you happen to sell on Amazon,

284
00:15:19,680 --> 00:15:22,240
Speaker 2: they are not going to tell you who purchased that

285
00:15:22,320 --> 00:15:24,840
Speaker 2: product because they don't want to give you that information.

286
00:15:24,960 --> 00:15:28,440
Speaker 2: So what you were doing was basically utilizing the papers

287
00:15:28,960 --> 00:15:31,600
Speaker 2: and they were sending out the information to people. People

288
00:15:31,640 --> 00:15:34,200
Speaker 2: were now ordering from you. You were capturing that name

289
00:15:34,280 --> 00:15:37,880
Speaker 2: and you were creating that database. Number one. Number two

290
00:15:37,960 --> 00:15:40,640
Speaker 2: was once you created that database, you then went and

291
00:15:40,640 --> 00:15:44,320
Speaker 2: got other products. Because there's always it's twenty times easier

292
00:15:44,320 --> 00:15:46,800
Speaker 2: to upsell a current customer than it is to acquire

293
00:15:46,800 --> 00:15:49,600
Speaker 2: a new one. So if you like this Authortis cream

294
00:15:49,680 --> 00:15:52,280
Speaker 2: and you're at that age, you may want this multi

295
00:15:52,360 --> 00:15:54,840
Speaker 2: vitamin or whatever the case is. So now you were

296
00:15:55,440 --> 00:16:00,120
Speaker 2: gaining more profits from the same individuals, and simultaneously you

297
00:16:00,200 --> 00:16:03,200
Speaker 2: were going out and doing what today everybody would call

298
00:16:03,240 --> 00:16:07,200
Speaker 2: a collaboration. But you were going out to people who

299
00:16:07,240 --> 00:16:10,760
Speaker 2: were also selling maybe multivitamins and something else, saying, hey,

300
00:16:10,800 --> 00:16:14,840
Speaker 2: give them this arthritis cream, and you were then capturing

301
00:16:15,080 --> 00:16:16,920
Speaker 2: their cust We did it both the same We.

302
00:16:16,840 --> 00:16:19,160
Speaker 1: Did it both ways. We did it external, but we

303
00:16:19,200 --> 00:16:22,280
Speaker 1: had five hundred thousand buyers, so we could get other

304
00:16:22,320 --> 00:16:25,200
Speaker 1: people's products and do the same thing. We could say, Okay,

305
00:16:25,200 --> 00:16:26,840
Speaker 1: we're going to sell your product to ours. We're going

306
00:16:26,880 --> 00:16:28,520
Speaker 1: to keep one hundred percent of the first sale. But

307
00:16:28,520 --> 00:16:31,800
Speaker 1: instead of we were smart enough to say, we're not

308
00:16:31,840 --> 00:16:33,480
Speaker 1: going to give you all the back end. We want

309
00:16:33,600 --> 00:16:36,200
Speaker 1: fifty percent of all the repeat forever, so you would

310
00:16:36,240 --> 00:16:38,880
Speaker 1: create all these other annuities out of it. It was

311
00:16:38,920 --> 00:16:41,200
Speaker 1: a very cool deal that we were able to cascading

312
00:16:41,280 --> 00:16:44,120
Speaker 1: leverage the thing, and even even when we pilled, when

313
00:16:44,200 --> 00:16:46,480
Speaker 1: we peel, it's gonna be peeled off the main business,

314
00:16:46,480 --> 00:16:47,360
Speaker 1: we still had the ask.

315
00:16:48,000 --> 00:16:50,640
Speaker 2: And that's what I think that people don't understand the value.

316
00:16:50,680 --> 00:16:53,320
Speaker 2: You know, there's people out there with ten twenty or

317
00:16:53,440 --> 00:16:55,760
Speaker 2: you know, even a million people that follow them on

318
00:16:55,800 --> 00:16:58,040
Speaker 2: social media and they just want to talk, but they

319
00:16:58,040 --> 00:17:02,359
Speaker 2: don't understand the inherent value if you get those people's

320
00:17:02,960 --> 00:17:06,480
Speaker 2: emails and mailing address. Because everybody thinks right now that

321
00:17:06,520 --> 00:17:11,360
Speaker 2: social media is new and it's a new form of delivery. Yes,

322
00:17:11,720 --> 00:17:14,600
Speaker 2: but if you really look at social media and brands online.

323
00:17:15,040 --> 00:17:19,560
Speaker 2: If they sell something, they're fortunate to get maybe one

324
00:17:20,240 --> 00:17:23,560
Speaker 2: or a half of one percent to convert into buying. Yes,

325
00:17:24,480 --> 00:17:27,040
Speaker 2: that model is not new, because there was something called

326
00:17:27,080 --> 00:17:29,679
Speaker 2: direct mail, or some people called the junk mail or

327
00:17:29,720 --> 00:17:33,399
Speaker 2: whatever the case, the publishers clearinghouse or it was you know,

328
00:17:34,080 --> 00:17:37,600
Speaker 2: you know the one where you get the records Columbia Records.

329
00:17:37,640 --> 00:17:40,879
Speaker 2: Now tell me about the direct mail model, because people

330
00:17:41,000 --> 00:17:44,080
Speaker 2: all of a sudden think this Twitter and Instagram and

331
00:17:44,200 --> 00:17:45,320
Speaker 2: whatever it is is new.

332
00:17:45,440 --> 00:17:49,040
Speaker 1: I'll tell you three derivatives, and I could tell you

333
00:17:49,080 --> 00:17:51,720
Speaker 1: a million because I had a lot of experience. So

334
00:17:51,720 --> 00:17:55,560
Speaker 1: so the next thing was I did enormous amounts of

335
00:17:55,640 --> 00:17:58,960
Speaker 1: direct mail generated not not space, we did space, but

336
00:17:58,960 --> 00:18:01,240
Speaker 1: direct mail because there were a list you could slice.

337
00:18:01,280 --> 00:18:06,440
Speaker 1: You can dice by macro categories, by today's big data, and.

338
00:18:06,240 --> 00:18:09,080
Speaker 2: So the list meaning okay, well, somebody has a list

339
00:18:09,160 --> 00:18:11,040
Speaker 2: of a bunch of things I want to I want

340
00:18:11,040 --> 00:18:11,840
Speaker 2: to sell car parts.

341
00:18:11,880 --> 00:18:14,240
Speaker 1: Okay, great. So I can find people by any kind

342
00:18:14,240 --> 00:18:17,000
Speaker 1: of car. I can find people who are who were

343
00:18:17,520 --> 00:18:19,560
Speaker 1: do it yourself, as I can find people who buy

344
00:18:19,960 --> 00:18:23,080
Speaker 1: magazines and subscribe by that looks on that if I.

345
00:18:23,040 --> 00:18:26,080
Speaker 2: Had a magazine that was for auto parts and I

346
00:18:26,119 --> 00:18:28,080
Speaker 2: had a list of a million people, how much would

347
00:18:28,119 --> 00:18:29,720
Speaker 2: you pay for my list?

348
00:18:30,040 --> 00:18:32,680
Speaker 1: Back then, I'm going to give you an easy concept,

349
00:18:33,400 --> 00:18:36,000
Speaker 1: all all total, because I go through all the details,

350
00:18:36,000 --> 00:18:38,439
Speaker 1: but nobody would really grasp them. The total end the

351
00:18:38,440 --> 00:18:42,560
Speaker 1: mail costs was about sixty five cents, including a mailing,

352
00:18:42,600 --> 00:18:45,520
Speaker 1: including the printing, including the rental of the list, and

353
00:18:45,560 --> 00:18:48,960
Speaker 1: you were targeting it. Now, most people would just do that.

354
00:18:49,080 --> 00:18:52,800
Speaker 1: Every time we did it, I would pay a premium

355
00:18:52,840 --> 00:18:55,320
Speaker 1: to get you if that was your list to endorse me,

356
00:18:55,400 --> 00:18:58,600
Speaker 1: because that would triple or quadruple the yield, but most

357
00:18:58,600 --> 00:18:59,320
Speaker 1: people didn't think.

358
00:18:59,240 --> 00:19:01,639
Speaker 2: To do it. In today's today's term, that list means

359
00:19:02,600 --> 00:19:06,480
Speaker 2: your Twitter followers. Yes, my Twitter followers. And when you

360
00:19:06,560 --> 00:19:10,040
Speaker 2: basically said sixty five cents, when people see shark Tank,

361
00:19:10,119 --> 00:19:13,520
Speaker 2: they see mister wonderful, always go what is your customer

362
00:19:13,600 --> 00:19:14,600
Speaker 2: acquisition costs?

363
00:19:14,640 --> 00:19:14,960
Speaker 1: Sure?

364
00:19:15,280 --> 00:19:18,359
Speaker 2: And basically the sixty five cents was a customer acquisition

365
00:19:18,440 --> 00:19:21,119
Speaker 2: costs or your customer acquisition costs was more than that

366
00:19:21,200 --> 00:19:23,720
Speaker 2: because obviously less would reply to the ones.

367
00:19:23,880 --> 00:19:25,679
Speaker 1: So it depends on what you were doing. In the

368
00:19:25,720 --> 00:19:28,280
Speaker 1: newsletter business. We did a lot. We had different models.

369
00:19:28,320 --> 00:19:31,120
Speaker 1: It was expensive ones, there were trials. So I'm gonna

370
00:19:31,119 --> 00:19:32,600
Speaker 1: give you I'm not going to try to confuse you,

371
00:19:33,119 --> 00:19:36,679
Speaker 1: but you would your goal would try to be to

372
00:19:36,800 --> 00:19:41,200
Speaker 1: break even on acquisition, including and I when you use

373
00:19:41,400 --> 00:19:45,760
Speaker 1: you'll be my interpreter for the un including imputing the

374
00:19:45,920 --> 00:19:49,840
Speaker 1: marketing and fulfillment costs. So if you spent sixty five cents,

375
00:19:49,920 --> 00:19:51,520
Speaker 1: I'm gonna tell you a fabulous story in a minute.

376
00:19:51,560 --> 00:19:53,320
Speaker 1: If you want to hear it, you would hope to

377
00:19:53,320 --> 00:19:57,200
Speaker 1: get back sixty five cents plus whatever the twenty cents

378
00:19:57,880 --> 00:20:00,240
Speaker 1: or whatever it would cost to fulfill it. Right, you'd

379
00:20:00,280 --> 00:20:03,879
Speaker 1: want to break even, including your fulfillment costs because you

380
00:20:04,000 --> 00:20:07,040
Speaker 1: make all your money on Ancillaris.

381
00:20:06,280 --> 00:20:07,160
Speaker 2: On the duels.

382
00:20:07,240 --> 00:20:09,440
Speaker 1: Yeah, and all that. That was the goal, and that's

383
00:20:09,440 --> 00:20:13,040
Speaker 1: what our target was and what people didn't realize. In

384
00:20:13,080 --> 00:20:15,879
Speaker 1: direct response, everybody was really screwed. It still is today.

385
00:20:16,080 --> 00:20:18,920
Speaker 1: They have allocated budgets. In direct response, you have an

386
00:20:19,000 --> 00:20:22,800
Speaker 1: infinite budget. You have an allowable acquisition cost, and that

387
00:20:22,880 --> 00:20:26,560
Speaker 1: has to do with leads, conversions, sales. The more you

388
00:20:26,640 --> 00:20:31,399
Speaker 1: know about the additional revenue that flows from the first sale,

389
00:20:32,040 --> 00:20:35,840
Speaker 1: the more allowable cost you've got and so most people say, oh,

390
00:20:35,840 --> 00:20:38,080
Speaker 1: I got a five thousand dollar budget or I got

391
00:20:38,680 --> 00:20:41,040
Speaker 1: you know whatever, either spending too much or too little.

392
00:20:41,080 --> 00:20:42,880
Speaker 1: You've got so much a sale if I can buy

393
00:20:42,880 --> 00:20:46,040
Speaker 1: a sale for break even, I've got an infinite budget

394
00:20:46,240 --> 00:20:48,160
Speaker 1: as long as I as long as my overhead's being

395
00:20:48,160 --> 00:20:51,080
Speaker 1: covered by something else. But most people didn't see.

396
00:20:51,119 --> 00:20:52,560
Speaker 2: I saw that, you know, and I get it because

397
00:20:52,560 --> 00:20:54,639
Speaker 2: you were using the power broke you know. You know,

398
00:20:54,880 --> 00:20:56,960
Speaker 2: initially you were trying to find a way to go

399
00:20:57,000 --> 00:20:59,520
Speaker 2: out there and market with nothing and make sure everybody

400
00:20:59,520 --> 00:21:01,879
Speaker 2: else is happy, and you would take care of yourself later.

401
00:21:01,920 --> 00:21:03,639
Speaker 2: But you are very confident on the product and the

402
00:21:03,640 --> 00:21:06,439
Speaker 2: way you can deliver. Now, all of a sudden, icy

403
00:21:06,560 --> 00:21:08,639
Speaker 2: hot has a hit, moves on, and you move on

404
00:21:08,680 --> 00:21:11,680
Speaker 2: in your career. Now I know that you've advised everybody

405
00:21:11,720 --> 00:21:16,040
Speaker 2: from the NASDAC to brands that every one of us

406
00:21:16,119 --> 00:21:19,680
Speaker 2: use every single day. How did you get to that level?

407
00:21:19,720 --> 00:21:23,159
Speaker 1: It's a great story. It's a great story. So and

408
00:21:23,200 --> 00:21:25,520
Speaker 1: it's a sad story, but it's a funny one. So

409
00:21:26,840 --> 00:21:32,560
Speaker 1: I spent ten years helping financial advisors direct response and

410
00:21:32,600 --> 00:21:34,600
Speaker 1: I made a lot of money. Then I met my

411
00:21:34,880 --> 00:21:37,360
Speaker 1: current wife, who you know, because I was going through

412
00:21:37,359 --> 00:21:40,040
Speaker 1: divorce and the divorce costs me thirty five million dollars.

413
00:21:40,600 --> 00:21:43,119
Speaker 1: And I went from making a lot of money to

414
00:21:43,240 --> 00:21:46,160
Speaker 1: owing a lot of money. And when I met my wife,

415
00:21:46,600 --> 00:21:47,800
Speaker 1: she's model material.

416
00:21:48,359 --> 00:21:52,680
Speaker 2: But you understand that this was when what year eighty six?

417
00:21:53,080 --> 00:21:55,160
Speaker 2: So let's go to eighty six. Right now you have

418
00:21:55,560 --> 00:21:58,879
Speaker 2: unfortunately going through life is happening, and you know, a

419
00:21:59,000 --> 00:22:02,240
Speaker 2: change of your family, and this thing costs you thirty

420
00:22:02,240 --> 00:22:05,680
Speaker 2: five million dollars, but thirty five million dollars then it

421
00:22:05,680 --> 00:22:08,600
Speaker 2: would probably be about two hundred and fifty million. Now,

422
00:22:09,040 --> 00:22:11,240
Speaker 2: how did great pain? How did you get to that

423
00:22:11,280 --> 00:22:15,520
Speaker 2: point though? To go from puttson around with some icy

424
00:22:15,600 --> 00:22:19,000
Speaker 2: hot at the beginning stages to having thirty five million

425
00:22:19,080 --> 00:22:19,680
Speaker 2: dollars worth?

426
00:22:19,680 --> 00:22:24,600
Speaker 1: Great story, Great story. So from Icy Hot I went

427
00:22:24,640 --> 00:22:27,160
Speaker 1: to Entrepreneur magazine and it was a wonderful time. Nobody

428
00:22:27,200 --> 00:22:29,320
Speaker 1: knew an entrepreneur was as guy had a vision. We

429
00:22:29,359 --> 00:22:32,399
Speaker 1: had to send out marketing pieces that actually had the

430
00:22:32,440 --> 00:22:36,159
Speaker 1: Webster's definition of marketing excuse me, an entrepreneur on it,

431
00:22:36,160 --> 00:22:38,840
Speaker 1: because nobody even knew what the word meant. But I

432
00:22:39,000 --> 00:22:41,240
Speaker 1: was gifted with the opportunity and we grew that business

433
00:22:41,240 --> 00:22:43,480
Speaker 1: about nine hundred percent in one year. And I was

434
00:22:43,480 --> 00:22:47,560
Speaker 1: this fair haired, brown haired little Jewish boy, but everybody

435
00:22:47,640 --> 00:22:50,560
Speaker 1: was really taking interest in me. And I met all

436
00:22:50,680 --> 00:22:55,760
Speaker 1: these financial newsletter publishers who were brilliant thinkers in investment,

437
00:22:55,840 --> 00:22:59,119
Speaker 1: in gold, investment, stocks, economy, but they couldn't market their

438
00:22:59,160 --> 00:23:01,040
Speaker 1: way out of a paper. But they didn't have a

439
00:23:01,080 --> 00:23:04,240
Speaker 1: lot of money. So I saw I always inherently could

440
00:23:04,240 --> 00:23:10,840
Speaker 1: see underperforming opportunities, under utilized assets, underperforming activities, under value

441
00:23:10,920 --> 00:23:13,800
Speaker 1: distribution or relationships. So I would go to them and say, hey,

442
00:23:13,800 --> 00:23:17,840
Speaker 1: what I'll take the responsibility of making whatever you're doing

443
00:23:18,440 --> 00:23:21,240
Speaker 1: perform better and whatever you're not doing get done. And

444
00:23:21,280 --> 00:23:24,640
Speaker 1: all I want is twenty five percent of the increase.

445
00:23:24,720 --> 00:23:27,439
Speaker 1: And I made millions and millions of dollars and it

446
00:23:27,480 --> 00:23:29,760
Speaker 1: was really wonderful because I had to work my ass

447
00:23:29,760 --> 00:23:32,360
Speaker 1: off to start, but my deal was residual. So once

448
00:23:32,400 --> 00:23:34,679
Speaker 1: I got it going, I would get checks from you know,

449
00:23:34,880 --> 00:23:37,800
Speaker 1: I'd be talking to you and twenty other newsletters are

450
00:23:37,840 --> 00:23:39,920
Speaker 1: sending me eighty thousand dollars a month and ninety But

451
00:23:39,960 --> 00:23:42,200
Speaker 1: it was always playing off of their assets. I understood

452
00:23:42,560 --> 00:23:45,760
Speaker 1: they had assets, like if you said here's here's land.

453
00:23:45,800 --> 00:23:49,200
Speaker 1: It doesn't been mined for diamonds or gold or water

454
00:23:49,480 --> 00:23:51,879
Speaker 1: or oil. And I said, okay, I'll mine it. And

455
00:23:51,920 --> 00:23:54,119
Speaker 1: if I didn't have the money, I'd say, hey, you

456
00:23:54,160 --> 00:23:55,800
Speaker 1: want to put your drillier. I already got the rights,

457
00:23:55,800 --> 00:23:57,800
Speaker 1: and I would end up getting a big piece of it.

458
00:23:58,280 --> 00:24:01,320
Speaker 2: So you basically look amusing. Absolutely. So you're looking at

459
00:24:01,320 --> 00:24:04,200
Speaker 2: a company and you're going E Harmony. You're going over

460
00:24:04,200 --> 00:24:06,320
Speaker 2: to e Harmony that creates the biggest dating site or

461
00:24:06,359 --> 00:24:09,040
Speaker 2: whatever the cases. You're saying, hey, e Harmony, what else

462
00:24:09,080 --> 00:24:10,439
Speaker 2: are you doing? They go, well, you know, we like

463
00:24:10,480 --> 00:24:12,199
Speaker 2: to put couples together and do this, and said and

464
00:24:12,200 --> 00:24:15,600
Speaker 2: you say, well can I can? I make greeting cards

465
00:24:15,720 --> 00:24:18,440
Speaker 2: and work with you and I anything I make, I'll

466
00:24:18,480 --> 00:24:20,480
Speaker 2: split fifty percent. And they go, yeah, who cares when

467
00:24:20,480 --> 00:24:21,240
Speaker 2: I'm making greeting cards.

468
00:24:21,280 --> 00:24:22,040
Speaker 1: But I knew how to do that.

469
00:24:22,119 --> 00:24:23,800
Speaker 2: Yes, So all of a sudden, now you're making greeting

470
00:24:23,840 --> 00:24:26,359
Speaker 2: cards with e Harmony and you're you're making it turned

471
00:24:26,400 --> 00:24:29,719
Speaker 2: into a fifty million dollar business. And they didn't realize

472
00:24:29,800 --> 00:24:31,560
Speaker 2: they just gave you twenty five million dollars for free

473
00:24:31,560 --> 00:24:34,160
Speaker 2: because you use their customer base. But you put something

474
00:24:34,160 --> 00:24:34,399
Speaker 2: else in.

475
00:24:34,440 --> 00:24:36,840
Speaker 1: I'll give you the most beautiful example, but I'm going

476
00:24:36,920 --> 00:24:39,159
Speaker 1: to I want to amend it. I did it two ways.

477
00:24:39,200 --> 00:24:41,439
Speaker 1: I would say okay, because I let me give you

478
00:24:41,680 --> 00:24:44,639
Speaker 1: an Internet example. People came to me when the Internet

479
00:24:44,640 --> 00:24:47,720
Speaker 1: SERTA and said, Jay, I'm getting twenty thousand visitors a

480
00:24:47,720 --> 00:24:49,919
Speaker 1: month and I'm getting a one percent conversion. How can

481
00:24:50,000 --> 00:24:52,480
Speaker 1: I get forty thousand? I'd say, you're crazy. Why do

482
00:24:52,600 --> 00:24:55,240
Speaker 1: you turn the one into three? The one percent into three.

483
00:24:55,240 --> 00:24:56,399
Speaker 1: It's a lot easier, isn't it.

484
00:24:56,440 --> 00:24:59,280
Speaker 2: I'll sell it customers easier than so acquiring.

485
00:24:59,280 --> 00:25:02,120
Speaker 1: What I would do be two things parallel universe. I'd say, okay,

486
00:25:02,200 --> 00:25:05,880
Speaker 1: if I can make your existing marketing or selling or

487
00:25:05,920 --> 00:25:10,359
Speaker 1: market or offer better, I want half of the delta.

488
00:25:10,840 --> 00:25:11,199
Speaker 2: Okay.

489
00:25:11,600 --> 00:25:15,080
Speaker 1: Plus if I can introduce either new products services, ways

490
00:25:15,119 --> 00:25:17,800
Speaker 1: to monetize it, ways to monetize people that didn't buy

491
00:25:17,920 --> 00:25:21,040
Speaker 1: or stop buying, or ways to penetrate new markets, I

492
00:25:21,080 --> 00:25:22,880
Speaker 1: want a third to half of that. And they didn't

493
00:25:22,920 --> 00:25:24,439
Speaker 1: care because they didn't have a clue what it was.

494
00:25:24,520 --> 00:25:27,520
Speaker 1: But I did, and so I own their asset for

495
00:25:27,680 --> 00:25:30,960
Speaker 1: no investment. That's one thing, the biggest coolest thing I

496
00:25:31,000 --> 00:25:34,840
Speaker 1: ever did, and it's very interesting. So in the newsletter business,

497
00:25:34,840 --> 00:25:38,000
Speaker 1: and this is a great exercise in critical thinking. When

498
00:25:38,040 --> 00:25:41,360
Speaker 1: the newsletter business direct mail was at its peak, there

499
00:25:41,400 --> 00:25:44,080
Speaker 1: were hundreds of newsletters and they made their money by

500
00:25:44,119 --> 00:25:47,080
Speaker 1: renting one another's list, and it was sort of incestuous.

501
00:25:47,080 --> 00:25:51,160
Speaker 1: So I'd rent Daemon's investment list and hopefully I would

502
00:25:51,200 --> 00:25:53,520
Speaker 1: break even, and Damon would rent Jay's list and he

503
00:25:53,560 --> 00:25:55,439
Speaker 1: would break even. And you're bringing even at sixty.

504
00:25:55,680 --> 00:25:59,560
Speaker 2: Whenever you say newsletter and direct mail, everybody else today's

505
00:25:59,560 --> 00:26:03,600
Speaker 2: generation should just think of it as tweets, Instagram pun

506
00:26:03,800 --> 00:26:04,840
Speaker 2: like that, right, So thank you.

507
00:26:05,400 --> 00:26:09,480
Speaker 1: Okay, So everyone's spending about sixty five summer worth seventy

508
00:26:09,480 --> 00:26:11,840
Speaker 1: five cents a piece to break even to get back

509
00:26:11,920 --> 00:26:16,240
Speaker 1: eighty or ninety cents because they're including the fulfillment. And

510
00:26:16,920 --> 00:26:21,280
Speaker 1: back then the newsletters never had anything in them. They

511
00:26:21,320 --> 00:26:23,440
Speaker 1: would just send you a newsletter, and they had very

512
00:26:23,480 --> 00:26:26,880
Speaker 1: preferential mail rates. It cost almost nothing because the mail

513
00:26:26,960 --> 00:26:31,720
Speaker 1: system was set up to nourish and support information type dissemination.

514
00:26:32,320 --> 00:26:35,000
Speaker 1: So I started thinking about and thinking, okay, if I

515
00:26:35,080 --> 00:26:38,119
Speaker 1: rent your list and it's sixty five cents a piece

516
00:26:38,240 --> 00:26:40,720
Speaker 1: in the mail, and it breaks even what if I

517
00:26:40,800 --> 00:26:43,600
Speaker 1: take the same mailing piece I would mail to the

518
00:26:43,640 --> 00:26:46,560
Speaker 1: outside market and I print it not And this was

519
00:26:46,560 --> 00:26:48,879
Speaker 1: the time when the extra letter was twelve pages. I

520
00:26:48,920 --> 00:26:52,160
Speaker 1: print eight pages smaller and I stick it in your

521
00:26:52,160 --> 00:26:55,800
Speaker 1: newsletter because it only costs five cents. It would seem

522
00:26:55,800 --> 00:26:58,520
Speaker 1: if it breaks even it's sixty five and I can

523
00:26:58,520 --> 00:27:01,240
Speaker 1: get it for five, I'm going to make sixty cents

524
00:27:01,280 --> 00:27:04,800
Speaker 1: every time I put it in. But whether you endorse

525
00:27:04,840 --> 00:27:06,800
Speaker 1: it or not, the fact that it comes in your

526
00:27:06,840 --> 00:27:08,560
Speaker 1: newsletter is implied to it.

527
00:27:09,119 --> 00:27:11,439
Speaker 2: It's a cod brand need, it's a recommendation.

528
00:27:11,560 --> 00:27:14,440
Speaker 1: Yes, even if you don't verbalize it, it's implied. It's implicit.

529
00:27:14,640 --> 00:27:17,120
Speaker 1: So I thought, well, that's going to double it. I thought,

530
00:27:17,119 --> 00:27:19,040
Speaker 1: what's wrong with this math? And nothing? So I went

531
00:27:19,040 --> 00:27:21,640
Speaker 1: out and I bought the rights to do that everywhere,

532
00:27:22,000 --> 00:27:24,479
Speaker 1: and the first week we made five hundred thousand dollars.

533
00:27:24,640 --> 00:27:26,320
Speaker 1: But it was even better because I didn't have any money,

534
00:27:26,320 --> 00:27:29,520
Speaker 1: and I guaranteed everybody you know, half million dollars a year,

535
00:27:29,520 --> 00:27:31,680
Speaker 1: because I figured if it didn't work, I had no assets.

536
00:27:31,720 --> 00:27:34,080
Speaker 1: If it did work, it wouldn't matter. But this is

537
00:27:34,119 --> 00:27:36,240
Speaker 1: what got really great. Because I had no money and

538
00:27:36,280 --> 00:27:39,080
Speaker 1: no credit. Back then, I would say, like, damon, let's

539
00:27:39,080 --> 00:27:41,719
Speaker 1: say you were a successful newsletter publisher. I'd say, okay,

540
00:27:41,840 --> 00:27:43,760
Speaker 1: I'm going to do this right, Okay, you don't mind

541
00:27:43,760 --> 00:27:47,720
Speaker 1: if I use your your your relationship with your publisher

542
00:27:47,800 --> 00:27:50,200
Speaker 1: or with your printer. Do you no, Well, these guys

543
00:27:50,200 --> 00:27:52,879
Speaker 1: had ninety one hundred and twenty days worth of credit.

544
00:27:53,200 --> 00:27:56,040
Speaker 1: So I'm getting five hundred thousand dollars a week and

545
00:27:56,119 --> 00:27:59,320
Speaker 1: not having to pay it for four months later. It

546
00:27:59,359 --> 00:28:00,000
Speaker 1: was hilarious.

547
00:28:00,119 --> 00:28:02,080
Speaker 2: So you were one of the ones that really kind

548
00:28:02,119 --> 00:28:05,200
Speaker 2: of spearhead the circular business. So now when I opened

549
00:28:05,280 --> 00:28:08,639
Speaker 2: up my nobody did that newspaper well, and it is

550
00:28:08,640 --> 00:28:11,359
Speaker 2: a bunch of those that make cards.

551
00:28:11,400 --> 00:28:12,320
Speaker 1: All that nobody was doing.

552
00:28:12,800 --> 00:28:14,320
Speaker 2: You helped kill a lot of trees, right.

553
00:28:15,040 --> 00:28:17,080
Speaker 1: Yeah, well I'll tell you something that I'll mean we

554
00:28:17,160 --> 00:28:19,119
Speaker 1: did well. I can go into market, which is different,

555
00:28:19,119 --> 00:28:21,639
Speaker 1: but they're different marketing stories as opposed to what you're

556
00:28:21,680 --> 00:28:24,920
Speaker 1: trying to do, which is bootstrapping and and power broke.

557
00:28:24,960 --> 00:28:28,520
Speaker 1: But yeah, I always was able to see something that

558
00:28:28,560 --> 00:28:31,239
Speaker 1: no one else saw, or to see value that they

559
00:28:31,280 --> 00:28:33,520
Speaker 1: didn't see. Value it. If they didn't see it and

560
00:28:33,600 --> 00:28:37,040
Speaker 1: I saw it, it excited them. If they saw no value,

561
00:28:37,280 --> 00:28:39,720
Speaker 1: they didn't mind giving it giving it in mind giving

562
00:28:55,440 --> 00:28:58,200
Speaker 1: if they saw no value, they didn't mind giving it

563
00:28:58,200 --> 00:29:00,880
Speaker 1: to me. I'll tell you another one that's really so.

564
00:29:00,960 --> 00:29:04,360
Speaker 1: I was also in the eight track, which is it's

565
00:29:04,480 --> 00:29:08,360
Speaker 1: dating me with the eight track cassette tape business, and

566
00:29:08,400 --> 00:29:11,880
Speaker 1: I had no money. This is before so I've always

567
00:29:11,960 --> 00:29:16,640
Speaker 1: been taught by my by mentors, your problem is the

568
00:29:16,680 --> 00:29:20,400
Speaker 1: solution to somebody's bigger problem. So I lived in Indianapolis

569
00:29:20,800 --> 00:29:24,560
Speaker 1: and I found a chain of convenience stores like seven

570
00:29:24,600 --> 00:29:26,920
Speaker 1: to eleven, but was local, so they had fifty stores.

571
00:29:27,720 --> 00:29:31,479
Speaker 1: They weren't selling eight tapes in their store. So I

572
00:29:31,600 --> 00:29:33,360
Speaker 1: went and I said, if I can get eight track

573
00:29:33,520 --> 00:29:36,880
Speaker 1: tapes and cases on your counters and you don't pay

574
00:29:36,920 --> 00:29:39,480
Speaker 1: a cent, will you take a third of that and

575
00:29:39,480 --> 00:29:42,480
Speaker 1: give me two thirds? And I showed them that we

576
00:29:42,520 --> 00:29:43,760
Speaker 1: could test it and they could take it out, and

577
00:29:43,760 --> 00:29:45,880
Speaker 1: I got contracts verst all on hand paper and hand

578
00:29:45,960 --> 00:29:51,080
Speaker 1: sign Then I found a very large manufactured distributor of

579
00:29:51,160 --> 00:29:56,440
Speaker 1: eight track tapes in the Midwest who didn't have Indiana penstration.

580
00:29:57,240 --> 00:30:01,400
Speaker 1: I took my agreements and no money, and I got

581
00:30:01,440 --> 00:30:03,719
Speaker 1: them to send me two hundred thousand dollars worth of

582
00:30:03,800 --> 00:30:07,480
Speaker 1: cases and tapes that I put in my garage. Then

583
00:30:07,480 --> 00:30:09,720
Speaker 1: I got my brother and I bought him a five

584
00:30:09,800 --> 00:30:16,160
Speaker 1: hundred dollars Chevy Biscayne sixty seven beat up. It was

585
00:30:16,200 --> 00:30:17,200
Speaker 1: a station wagon.

586
00:30:17,280 --> 00:30:18,960
Speaker 2: So you bought a car for five hundred dollars.

587
00:30:19,080 --> 00:30:21,720
Speaker 1: Yeah, okay, that one day we drove around the corner

588
00:30:21,760 --> 00:30:23,400
Speaker 1: and the wheel fell off. But before that happened, it

589
00:30:23,440 --> 00:30:24,080
Speaker 1: was our delivery.

590
00:30:24,200 --> 00:30:25,160
Speaker 2: That is, the power broke.

591
00:30:25,920 --> 00:30:29,880
Speaker 1: And his job for five hundred dollars a week was

592
00:30:29,920 --> 00:30:36,120
Speaker 1: to take inventory, replace defective ones, and get an invoice

593
00:30:36,120 --> 00:30:38,440
Speaker 1: that he could send a corporate I was making four

594
00:30:38,480 --> 00:30:42,400
Speaker 1: thousand dollars a week from no capital, no.

595
00:30:42,440 --> 00:30:44,960
Speaker 2: A new leveraging. Yeah, and you know, and I say

596
00:30:45,000 --> 00:30:46,640
Speaker 2: that to people all the time. Everybody goes, you know

597
00:30:46,680 --> 00:30:48,840
Speaker 2: what I need a loan? I need I need or

598
00:30:48,880 --> 00:30:51,000
Speaker 2: I don't need a loan, I need an investment. And

599
00:30:51,040 --> 00:30:53,640
Speaker 2: you were the one who taught me that what is OPM?

600
00:30:53,960 --> 00:30:56,160
Speaker 2: Does OPM always have to be other people's money? No?

601
00:30:56,600 --> 00:30:57,720
Speaker 2: What is OPM? You have?

602
00:30:58,120 --> 00:31:00,840
Speaker 1: I got a list of one hundred OPM we'll give me, Okay,

603
00:31:00,920 --> 00:31:04,920
Speaker 1: other people's salesforce, other people's distribution, other people's non non

604
00:31:05,000 --> 00:31:08,600
Speaker 1: sold buyers, other people's buyers that have nothing else to buy.

605
00:31:08,680 --> 00:31:10,240
Speaker 2: You don't always need to investment.

606
00:31:10,320 --> 00:31:12,560
Speaker 1: Yeah I got I got three stories right away.

607
00:31:12,400 --> 00:31:15,280
Speaker 2: That well, you got other people's marketing, other people's manpower right,

608
00:31:15,320 --> 00:31:16,280
Speaker 2: other people's mind.

609
00:31:16,080 --> 00:31:20,600
Speaker 1: Power, research, other people's distribution shippings.

610
00:31:20,840 --> 00:31:22,240
Speaker 2: So you don't always have to give up a piece

611
00:31:22,240 --> 00:31:24,640
Speaker 2: of company because I tell people that the same thing

612
00:31:24,680 --> 00:31:26,840
Speaker 2: I did the exact same thing in my way. You know,

613
00:31:26,920 --> 00:31:28,920
Speaker 2: when I didn't have any money, I would go to

614
00:31:28,960 --> 00:31:30,600
Speaker 2: the stores and say do you want to buy these

615
00:31:30,640 --> 00:31:32,880
Speaker 2: T shirts? And they would say yeah, yes. I would

616
00:31:32,880 --> 00:31:35,080
Speaker 2: go to a screen printer. The screenprint would charge me

617
00:31:35,160 --> 00:31:37,840
Speaker 2: a dollar twenty five to print each T shirt. But

618
00:31:38,120 --> 00:31:40,760
Speaker 2: what I said is charge me two dollars to print

619
00:31:40,760 --> 00:31:43,920
Speaker 2: each T shirt, and when the store orders, you will

620
00:31:43,920 --> 00:31:46,640
Speaker 2: ship it directly to the store, and the store will

621
00:31:46,680 --> 00:31:50,240
Speaker 2: pay you directly, and then I will get my cut.

622
00:31:50,440 --> 00:31:52,280
Speaker 2: I didn't have to give up any of my company.

623
00:31:52,560 --> 00:31:55,240
Speaker 2: And the store now knew that it can get its

624
00:31:55,400 --> 00:31:59,280
Speaker 2: shirt from a reputable maker, and the maker knew that

625
00:31:59,360 --> 00:32:02,440
Speaker 2: it can can get its money from a reputable store.

626
00:32:02,720 --> 00:32:04,520
Speaker 2: And I didn't have to give up any of my profits.

627
00:32:04,560 --> 00:32:06,880
Speaker 2: So any of my company. So that was me leveraging.

628
00:32:06,920 --> 00:32:10,640
Speaker 2: Now I think we obviously have these things in common. Now,

629
00:32:10,680 --> 00:32:12,160
Speaker 2: all of a sudden, you move to the point in

630
00:32:12,200 --> 00:32:14,840
Speaker 2: your life where you've worked with everybody from Tony Robbins

631
00:32:14,840 --> 00:32:17,040
Speaker 2: as I said, to the Nasdak things of that nature,

632
00:32:17,880 --> 00:32:20,560
Speaker 2: and all those things happened, and you thought and work

633
00:32:20,640 --> 00:32:23,000
Speaker 2: with the power broke. But tell me, because I've made

634
00:32:23,000 --> 00:32:27,320
Speaker 2: this mistake when you did start having wealth, did that

635
00:32:27,560 --> 00:32:32,520
Speaker 2: Have you ever seen wealth solve or launch something? Because

636
00:32:32,720 --> 00:32:35,240
Speaker 2: I lost about three or four million dollars thinking that

637
00:32:35,320 --> 00:32:37,560
Speaker 2: now that I had money, I can just buy my

638
00:32:37,680 --> 00:32:40,880
Speaker 2: way into something. And sometimes that gives you a bigger ego.

639
00:32:42,240 --> 00:32:45,040
Speaker 1: I'll give you a very heartfelt true story. So I've

640
00:32:45,080 --> 00:32:47,719
Speaker 1: had three midlife crises, and I've had three of them

641
00:32:47,760 --> 00:32:50,880
Speaker 1: because I started much earlier than everybody. And I've been

642
00:32:50,880 --> 00:32:53,000
Speaker 1: married three times. It's hadn't been wiped.

643
00:32:52,760 --> 00:32:56,240
Speaker 2: Out, so well, that will give you the power broke

644
00:32:56,400 --> 00:32:58,040
Speaker 2: one way or another. Being married three times?

645
00:32:58,040 --> 00:33:00,320
Speaker 1: It does, say it does. But I did one thing

646
00:33:00,360 --> 00:33:02,560
Speaker 1: that was really cool after a couple of times, and

647
00:33:02,600 --> 00:33:05,720
Speaker 1: I'd go to therapists to try to figure out what's

648
00:33:05,760 --> 00:33:08,480
Speaker 1: the meaning of life, Alphie, And they'd say Okay, time's up.

649
00:33:08,520 --> 00:33:10,520
Speaker 1: I thought, screw that stuff, so I'd buy them for

650
00:33:10,560 --> 00:33:13,320
Speaker 1: a whole week. I'd buy somebody for a whole week,

651
00:33:13,360 --> 00:33:15,400
Speaker 1: and it was hilarious. If I couldn't go, i'd get

652
00:33:15,400 --> 00:33:17,360
Speaker 1: somebody who was screwed up in my office and send

653
00:33:17,440 --> 00:33:19,880
Speaker 1: them and surprise the therapist. But I would go and

654
00:33:19,920 --> 00:33:22,320
Speaker 1: just talk to them. And I found one that gave

655
00:33:22,400 --> 00:33:25,880
Speaker 1: me an answer to your question which was more profound

656
00:33:25,920 --> 00:33:28,480
Speaker 1: than ever, and it's redefined my life. It's very useful.

657
00:33:28,480 --> 00:33:30,440
Speaker 1: And I'll tell you what it is. Most people think

658
00:33:31,000 --> 00:33:35,280
Speaker 1: that when they acquire wealth, success, getting the biggest house,

659
00:33:35,320 --> 00:33:41,120
Speaker 1: the fastest growing company, you know, the prettiest wife, whatever,

660
00:33:41,400 --> 00:33:45,400
Speaker 1: you know, the distinction in Forbes, that's going to transform them.

661
00:33:45,480 --> 00:33:47,280
Speaker 1: The heavens are going to open, the angels are going

662
00:33:47,360 --> 00:33:49,400
Speaker 1: to sing you four is going to happen. All their

663
00:33:49,440 --> 00:33:52,880
Speaker 1: worries are going to anti climactic inc and change anything.

664
00:33:53,480 --> 00:33:56,600
Speaker 1: The meaning of life is the process this conversation. If

665
00:33:56,600 --> 00:34:00,160
Speaker 1: we're talking to the weight person or the chanitor or

666
00:34:00,280 --> 00:34:02,720
Speaker 1: somebody important, that's as good as it gets. So you

667
00:34:02,800 --> 00:34:06,840
Speaker 1: better enjoy the moment because everything else is a losory intentative.

668
00:34:06,840 --> 00:34:10,080
Speaker 1: And that transformed me. Also, your goal is to add

669
00:34:10,239 --> 00:34:12,799
Speaker 1: value anytime you interact with anybody. If you can get

670
00:34:12,840 --> 00:34:15,600
Speaker 1: that in alignment, everything else flows. But you can learn

671
00:34:15,640 --> 00:34:20,120
Speaker 1: to think about I mean, being without capital is one

672
00:34:20,160 --> 00:34:23,279
Speaker 1: of the greatest gifts you can be you can have

673
00:34:23,360 --> 00:34:26,399
Speaker 1: if you're an entrepreneur, because it forces you to think what.

674
00:34:27,719 --> 00:34:30,480
Speaker 1: It forces you to realize that capital. Oh, let me

675
00:34:30,480 --> 00:34:32,719
Speaker 1: give you a great story. It's fabulous story and it's

676
00:34:32,719 --> 00:34:35,160
Speaker 1: a true story. It's incredible. I can give you the

677
00:34:35,200 --> 00:34:40,320
Speaker 1: whole concept of using other people's resources in a beautiful story,

678
00:34:40,320 --> 00:34:42,799
Speaker 1: and it applies to everybody. This is I always want

679
00:34:42,840 --> 00:34:45,799
Speaker 1: to know who else has more to gain by what

680
00:34:45,800 --> 00:34:47,719
Speaker 1: you're trying to accomplish. So a guy came to one

681
00:34:47,760 --> 00:34:50,359
Speaker 1: of my seminars in China. He was heartfelt. He came

682
00:34:50,360 --> 00:34:52,399
Speaker 1: to the mic and said, Jay, what do you do

683
00:34:52,719 --> 00:34:54,600
Speaker 1: if the bank? If you're too small a bank, Wi'll

684
00:34:54,640 --> 00:34:56,560
Speaker 1: lend you money. And I said, well, what would you

685
00:34:56,600 --> 00:34:58,160
Speaker 1: do if you have the money? Because that's the big question,

686
00:34:58,160 --> 00:34:59,200
Speaker 1: what would you do if you have the MIC?

687
00:34:59,239 --> 00:35:00,760
Speaker 2: A lot of people don't know, they don't get it.

688
00:35:00,719 --> 00:35:03,200
Speaker 1: And they can't answer it. Even on chart take I'm marketing, well,

689
00:35:03,239 --> 00:35:04,600
Speaker 1: how you can do it? But I said, what are

690
00:35:04,640 --> 00:35:06,560
Speaker 1: you going to do? He said, well, I'm a small

691
00:35:06,560 --> 00:35:09,480
Speaker 1: motorcycle manufacturer in China and I would love to go

692
00:35:09,520 --> 00:35:13,480
Speaker 1: to Asia, set up a factory, get salespeople, distribution, retailers,

693
00:35:13,800 --> 00:35:16,520
Speaker 1: and get into all kinds of countries. And I said, okay, well,

694
00:35:16,520 --> 00:35:18,319
Speaker 1: why do you need all this money? Why don't you

695
00:35:18,320 --> 00:35:20,719
Speaker 1: just go find somebody who's got a bigger problem than you.

696
00:35:20,760 --> 00:35:24,440
Speaker 1: They sell something complimentary, not competitive. They have a factory,

697
00:35:24,440 --> 00:35:26,920
Speaker 1: they only have first shift, they're not using second they

698
00:35:26,920 --> 00:35:30,440
Speaker 1: already have distribution. They're only getting one product's turnout of it.

699
00:35:30,880 --> 00:35:32,879
Speaker 1: Why don't you do that? I came back a year later.

700
00:35:32,960 --> 00:35:35,719
Speaker 1: This guy is beaming from ear to ear. He said,

701
00:35:35,760 --> 00:35:37,520
Speaker 1: I did what he said. I went to Malaysia, went

702
00:35:37,560 --> 00:35:41,600
Speaker 1: to Kwalum, where I found a lawnmower manufacturer. You had

703
00:35:41,600 --> 00:35:46,200
Speaker 1: a big, big facility. One shift, he opened a second shift.

704
00:35:46,280 --> 00:35:48,120
Speaker 1: All I had to do was bring the tool and dies,

705
00:35:48,160 --> 00:35:50,960
Speaker 1: which are just the basic equipment for making the stuff.

706
00:35:50,960 --> 00:35:53,080
Speaker 1: He already had all the equipment. He had the salesman,

707
00:35:53,080 --> 00:35:56,560
Speaker 1: he had the distribution, He had lawnmower dealers in eight countries.

708
00:35:57,320 --> 00:35:59,600
Speaker 1: We split the deal. We both made ten million dollars this.

709
00:35:59,600 --> 00:36:03,279
Speaker 2: Year so he was basically leveraging the factory and the

710
00:36:03,320 --> 00:36:07,080
Speaker 2: resources and the distribution, the indangibles, and every single story

711
00:36:07,160 --> 00:36:09,160
Speaker 2: like that that you're going to say, I'm sure every

712
00:36:09,360 --> 00:36:12,120
Speaker 2: successful entrepreneur can relate to. You know, when I went

713
00:36:12,160 --> 00:36:16,400
Speaker 2: to my guys, they just made bubble coats for the winter,

714
00:36:16,920 --> 00:36:19,920
Speaker 2: and I brought in my denim and T shirts and said,

715
00:36:19,960 --> 00:36:21,960
Speaker 2: what are you doing with your factories during the summer?

716
00:36:22,000 --> 00:36:25,200
Speaker 2: They said nothing. I said, well, can I put these

717
00:36:25,520 --> 00:36:27,600
Speaker 2: you know, can you start making this denim and these

718
00:36:27,640 --> 00:36:30,200
Speaker 2: T shirts? And they said absolutely. But not only that,

719
00:36:30,680 --> 00:36:35,240
Speaker 2: because they only made bubble coats. They knew Macy's and Burlington,

720
00:36:35,280 --> 00:36:37,759
Speaker 2: they had the factory, they had the people, but all

721
00:36:37,800 --> 00:36:40,080
Speaker 2: they had to say to the coat buyer was, hey,

722
00:36:40,120 --> 00:36:42,120
Speaker 2: who's the T shirt and denim buyer? Because we have

723
00:36:42,280 --> 00:36:44,919
Speaker 2: this stuff. They were doing about forty million a year

724
00:36:44,960 --> 00:36:48,240
Speaker 2: in bubble coats and things of that nature. My business

725
00:36:48,360 --> 00:36:51,040
Speaker 2: ended up growing to three hundred and fifty four hundred million,

726
00:36:51,200 --> 00:36:53,160
Speaker 2: and they forgot all about the bubble coats at that time.

727
00:36:54,160 --> 00:36:56,719
Speaker 2: So so now all of a sudden, you know, we're

728
00:36:56,800 --> 00:36:59,840
Speaker 2: realizing all the things that really are in line with

729
00:37:00,200 --> 00:37:03,399
Speaker 2: the power broke and really making it's not about money. Now,

730
00:37:04,440 --> 00:37:06,319
Speaker 2: you and I both know that probably one of the

731
00:37:06,360 --> 00:37:10,520
Speaker 2: most one of the things that people attribute the most

732
00:37:10,520 --> 00:37:13,799
Speaker 2: to success is having a mentor. I sought you out

733
00:37:13,920 --> 00:37:17,200
Speaker 2: many years ago, right because I was fortunate enough to

734
00:37:17,239 --> 00:37:20,400
Speaker 2: know that you've worked with everybody in the world. Why

735
00:37:20,440 --> 00:37:23,480
Speaker 2: did you decide to mentor me? What was in it

736
00:37:23,719 --> 00:37:27,080
Speaker 2: for you? Because I didn't pay you. We've never exchanged

737
00:37:27,120 --> 00:37:31,319
Speaker 2: the dime in regards to our mentorship slash And it's

738
00:37:31,320 --> 00:37:33,920
Speaker 2: a loose relationship. It wasn't no formal Hey you're mentoring.

739
00:37:34,080 --> 00:37:34,920
Speaker 2: We just became friends.

740
00:37:35,120 --> 00:37:41,920
Speaker 1: Truthfully, from the moment I met you, you evoked profound authenticity,

741
00:37:42,800 --> 00:37:47,800
Speaker 1: and you were real, and you had enormous humility and respect,

742
00:37:48,320 --> 00:37:54,040
Speaker 1: and you had outrageous drive to accomplish something meaningful. And

743
00:37:54,080 --> 00:37:59,440
Speaker 1: you had the willingness to listen, open mindedly and seriously,

744
00:38:00,400 --> 00:38:05,240
Speaker 1: uh examine and reflect on ideas and advice that someone

745
00:38:05,320 --> 00:38:07,520
Speaker 1: offered you. And I was very impressed. I've helped a

746
00:38:07,560 --> 00:38:10,640
Speaker 1: lot of people who were arrogant. I've helped a lot

747
00:38:10,640 --> 00:38:13,520
Speaker 1: of people who sadly seek advice, but all they really

748
00:38:13,600 --> 00:38:15,800
Speaker 1: want is to be confirmed in whatever they want it.

749
00:38:16,320 --> 00:38:21,680
Speaker 1: They don't want to really hear what and you were impressive,

750
00:38:21,800 --> 00:38:25,520
Speaker 1: way before the show was massively successfully. You were impressive.

751
00:38:25,600 --> 00:38:27,480
Speaker 1: I appreciate it, and I enjoyed you, and I thought,

752
00:38:27,680 --> 00:38:34,920
Speaker 1: this is someone I really am am taken with that.

753
00:38:35,040 --> 00:38:37,279
Speaker 1: I was hoping that I could add value to you

754
00:38:37,360 --> 00:38:38,360
Speaker 1: that would be useful.

755
00:38:38,360 --> 00:38:42,800
Speaker 2: But but and I appreciate obviously those words are sniffle,

756
00:38:43,400 --> 00:38:46,160
Speaker 2: But there was nothing in it for you. No, you

757
00:38:46,200 --> 00:38:46,760
Speaker 2: see everything.

758
00:38:46,960 --> 00:38:47,440
Speaker 1: That's not true.

759
00:38:47,440 --> 00:38:48,120
Speaker 2: It was in it for me.

760
00:38:48,239 --> 00:38:51,520
Speaker 1: No, but that's not true. People don't understand, even people

761
00:38:51,560 --> 00:38:53,640
Speaker 1: that are altruistic, there's no such thing as that we

762
00:38:53,719 --> 00:38:58,320
Speaker 1: get back. I mean, if you see somebody, I'm obsessed

763
00:38:58,400 --> 00:39:03,319
Speaker 1: with two things. People who have value to offer society

764
00:39:03,360 --> 00:39:06,960
Speaker 1: in different forms. It's a tragedy for them to under

765
00:39:07,520 --> 00:39:11,520
Speaker 1: reach the potential to not make that value available to

766
00:39:11,600 --> 00:39:16,120
Speaker 1: everybody who deserves it. And I'm obsessed with helping people.

767
00:39:16,160 --> 00:39:19,400
Speaker 1: And very honestly, we don't do anything in our lives

768
00:39:19,400 --> 00:39:21,080
Speaker 1: we don't get back something.

769
00:39:20,760 --> 00:39:23,560
Speaker 2: From And I believe in that as much as you do.

770
00:39:23,719 --> 00:39:26,560
Speaker 2: But what about the people out there listening that you

771
00:39:26,600 --> 00:39:30,120
Speaker 2: know their theory of business from whether the media anything else,

772
00:39:30,200 --> 00:39:34,040
Speaker 2: is you know this cutthroat life. Everybody's like Kevin O'Leary,

773
00:39:34,160 --> 00:39:36,160
Speaker 2: Just what's in it for me? You know, there's no

774
00:39:36,640 --> 00:39:40,319
Speaker 2: emotion in business, it's cold. And why give to people? Hey,

775
00:39:40,400 --> 00:39:42,359
Speaker 2: I gave it the office. I wrote something to the

776
00:39:42,480 --> 00:39:45,920
Speaker 2: you know, Salvation Army. Why should people believe that they

777
00:39:45,960 --> 00:39:48,680
Speaker 2: should mentor others? That's one question, and the part two

778
00:39:48,760 --> 00:39:51,759
Speaker 2: to that is for those who do not have mentors,

779
00:39:52,040 --> 00:39:54,600
Speaker 2: where do you find them? And how do you find them?

780
00:39:54,680 --> 00:39:56,480
Speaker 1: I'll tell you what I did. So let me try

781
00:39:56,480 --> 00:39:59,400
Speaker 1: to answer your question in a couple of ways. First

782
00:39:59,480 --> 00:40:01,840
Speaker 1: of all, why you do it? Well, I'm going to

783
00:40:01,840 --> 00:40:03,440
Speaker 1: give you an emotional answer. I'm going to give you

784
00:40:03,440 --> 00:40:06,759
Speaker 1: a clinical answer. I'll go to the clinical first. There's

785
00:40:06,800 --> 00:40:09,719
Speaker 1: a very fascinating study they did in Silicon Valley of

786
00:40:09,840 --> 00:40:13,440
Speaker 1: fifteen or eighteen hundred startups that were mentored or not mentored,

787
00:40:13,480 --> 00:40:15,719
Speaker 1: and they found that the ones that are mentored by

788
00:40:15,760 --> 00:40:19,200
Speaker 1: somebody who'd been there, done that and was willing to

789
00:40:19,280 --> 00:40:23,239
Speaker 1: be not a hard nosed but not patronized, take them

790
00:40:23,280 --> 00:40:28,480
Speaker 1: to task and be and not allow them to underperform

791
00:40:28,520 --> 00:40:32,400
Speaker 1: their potential outproduced on the success. It was like AE

792
00:40:32,640 --> 00:40:35,120
Speaker 1: is a three or three hundred percent more success, three

793
00:40:35,200 --> 00:40:37,480
Speaker 1: hundred percent more profit three hundred percent more inclined to

794
00:40:37,560 --> 00:40:39,920
Speaker 1: go public everything. So there's very well docuos.

795
00:40:40,000 --> 00:40:41,000
Speaker 2: Were the ones that were mentored?

796
00:40:41,080 --> 00:40:44,520
Speaker 1: Yeah, the ones that weren't underperformed. That's the first thing.

797
00:40:44,560 --> 00:40:49,600
Speaker 1: The second one is is I did a dissertation on this.

798
00:40:49,800 --> 00:40:56,080
Speaker 1: Most people's concept of challenge or frustration or restriction or

799
00:40:56,120 --> 00:41:01,080
Speaker 1: constraint is a function of their worldview. They've only experienced

800
00:41:01,120 --> 00:41:04,360
Speaker 1: a certain finite number of things. They've read books maybe,

801
00:41:04,400 --> 00:41:06,880
Speaker 1: and they've watched TV and in what shark tank. But

802
00:41:06,960 --> 00:41:08,840
Speaker 1: they only know what they've read, what they've seen, what

803
00:41:08,880 --> 00:41:12,600
Speaker 1: they've done, what they've experienced in their world. Well, as

804
00:41:12,640 --> 00:41:14,359
Speaker 1: I'm talking to you and you're talking to me, there

805
00:41:14,440 --> 00:41:18,040
Speaker 1: are a million worlds going on concurrently. The reason I'm

806
00:41:18,120 --> 00:41:21,680
Speaker 1: so powerful is I can take perspectives from four hundred

807
00:41:21,680 --> 00:41:25,120
Speaker 1: and sixty five different industries and how they think and

808
00:41:25,160 --> 00:41:29,360
Speaker 1: their strategies and their business models and their competitive approaches.

809
00:41:29,640 --> 00:41:31,640
Speaker 1: But most people know a few things. And if you

810
00:41:31,680 --> 00:41:34,920
Speaker 1: get a mentor who's been there and done that and

811
00:41:35,040 --> 00:41:36,920
Speaker 1: been there, done that means he or she has this

812
00:41:37,160 --> 00:41:44,800
Speaker 1: broad spectrum of context, they can accelerate. They can catapult

813
00:41:44,880 --> 00:41:49,680
Speaker 1: you to a rarefied place of learning. Curve without all

814
00:41:49,680 --> 00:41:51,560
Speaker 1: the suffering and pain. Why wouldn't you?

815
00:41:52,360 --> 00:41:55,120
Speaker 2: So I agree? So now where do I find them?

816
00:41:55,200 --> 00:41:56,680
Speaker 1: Okay, So there's many ways to do.

817
00:41:56,719 --> 00:42:00,120
Speaker 2: Because you know everybody wants you, and damon John and

818
00:42:00,200 --> 00:42:00,680
Speaker 2: Mark Cuban.

819
00:42:00,760 --> 00:42:02,960
Speaker 1: I'll tell you what I did in the beginning, and

820
00:42:03,480 --> 00:42:05,600
Speaker 1: it was painful, but you do what you have to do.

821
00:42:05,640 --> 00:42:08,400
Speaker 1: In the beginning, I worked a bunch I's going to

822
00:42:08,520 --> 00:42:11,640
Speaker 1: be vulgar of shitty jobs all night so that all

823
00:42:11,719 --> 00:42:15,920
Speaker 1: day I could go around and call upon prominent entrepreneurs

824
00:42:15,920 --> 00:42:20,200
Speaker 1: in Indianapolis. And I had a funny thing. I'll tell

825
00:42:20,200 --> 00:42:22,080
Speaker 1: you the story I had to sign. This is an

826
00:42:22,160 --> 00:42:27,120
Speaker 1: era when in the seventies most people were very formal,

827
00:42:27,160 --> 00:42:29,360
Speaker 1: and they had reception rooms with a glass counter, and

828
00:42:29,360 --> 00:42:31,920
Speaker 1: the glass counter it had a little hole to speak

829
00:42:31,960 --> 00:42:34,240
Speaker 1: with or put your business card. I had a business

830
00:42:34,239 --> 00:42:37,520
Speaker 1: card meant that was that big, and it said something

831
00:42:37,560 --> 00:42:43,320
Speaker 1: like j Abraham, poor young, struggling up and coming, aspiring

832
00:42:43,480 --> 00:42:50,319
Speaker 1: successful entrepreneur who suffers a cute sinus inflection infection. And

833
00:42:50,360 --> 00:42:53,120
Speaker 1: I would go to the go to the front desk

834
00:42:53,160 --> 00:42:54,960
Speaker 1: where there's a little hole, and I'd say, I do

835
00:42:55,000 --> 00:42:57,520
Speaker 1: who the owner was? Can I see damon John, and

836
00:42:57,880 --> 00:43:01,400
Speaker 1: they would say who are you with. I go, no,

837
00:43:01,520 --> 00:43:03,680
Speaker 1: what and they'd go and then they look a little bit,

838
00:43:03,760 --> 00:43:04,919
Speaker 1: well do you have a cart? And I go yes,

839
00:43:04,960 --> 00:43:06,799
Speaker 1: and I take this card up and it wouldn't fit

840
00:43:06,840 --> 00:43:10,759
Speaker 1: in the window and they would look at me and

841
00:43:11,080 --> 00:43:13,000
Speaker 1: they'd come out and take it to you. And if

842
00:43:13,000 --> 00:43:15,480
Speaker 1: you had a meeting going on, you wouldn't. But eighty

843
00:43:15,520 --> 00:43:17,560
Speaker 1: percent of the people would call me into the office

844
00:43:17,560 --> 00:43:20,319
Speaker 1: and I'd say, look, I'm trying to learn I.

845
00:43:20,600 --> 00:43:22,040
Speaker 2: So they would call you in because they would say

846
00:43:22,040 --> 00:43:23,520
Speaker 2: what all this big ass color.

847
00:43:24,000 --> 00:43:26,440
Speaker 1: Yeah, I'd say, look, I want to learn your business.

848
00:43:26,440 --> 00:43:26,880
Speaker 2: I would learn.

849
00:43:27,400 --> 00:43:30,319
Speaker 1: And many of them I was broke. They would this

850
00:43:30,440 --> 00:43:32,520
Speaker 1: was the most hilarious thing. I had five of them

851
00:43:32,520 --> 00:43:34,719
Speaker 1: to let me sit for two hours a day in

852
00:43:34,760 --> 00:43:37,480
Speaker 1: the corner and watch them do business. And at the

853
00:43:37,560 --> 00:43:39,359
Speaker 1: end of every transact and people would look and they

854
00:43:39,360 --> 00:43:41,160
Speaker 1: wouldn't eve introduce me. I'd just be in a corner

855
00:43:41,360 --> 00:43:43,879
Speaker 1: like this quiet and people would think, I'm like, they're

856
00:43:44,239 --> 00:43:47,200
Speaker 1: conciergra soth. Except I was a little young twenty two

857
00:43:47,280 --> 00:43:50,360
Speaker 1: year old. But at the end of every transaction they

858
00:43:50,440 --> 00:43:51,960
Speaker 1: cared enough about me they took it. Let me tell

859
00:43:52,000 --> 00:43:53,759
Speaker 1: you this happened. Let me tell you what I just did.

860
00:43:53,840 --> 00:43:55,920
Speaker 1: Let me tell you, and I soaked it up and

861
00:43:55,960 --> 00:43:58,680
Speaker 1: I worked all night. My wife, my first wife, thought

862
00:43:58,719 --> 00:44:02,640
Speaker 1: I was crazy and she laughed, but it paid off.

863
00:44:02,719 --> 00:44:04,960
Speaker 2: That's two forms of power are broke, though. So that

864
00:44:05,160 --> 00:44:07,280
Speaker 2: is I'm not gonna go and send them a Tiffany

865
00:44:07,360 --> 00:44:08,960
Speaker 2: pen and say, hey, all I want to do is

866
00:44:09,000 --> 00:44:11,000
Speaker 2: get one meeting with you. You just had a big

867
00:44:11,040 --> 00:44:13,799
Speaker 2: stupid card right to get in the door. And the

868
00:44:13,920 --> 00:44:16,239
Speaker 2: second form of it is for those who said they

869
00:44:16,239 --> 00:44:20,080
Speaker 2: can't get formal education they don't have the money they

870
00:44:20,200 --> 00:44:24,239
Speaker 2: normally would pay thirty forty thousand dollars a year to right,

871
00:44:24,480 --> 00:44:27,440
Speaker 2: yeah exactly, but you guys get it a lote free

872
00:44:27,560 --> 00:44:29,040
Speaker 2: and you got a lone, you got a ham sandwich,

873
00:44:29,080 --> 00:44:32,239
Speaker 2: then we'll not a ham sandwich. Tune is ound right? Well,

874
00:44:32,320 --> 00:44:34,520
Speaker 2: I appreciate it, Jay, Thank you for mentoring me, and

875
00:44:34,520 --> 00:44:36,719
Speaker 2: thank you for sharing this information with everybody else, and

876
00:44:36,719 --> 00:44:39,719
Speaker 2: hopefully they'll be able to apply all that information into

877
00:44:39,760 --> 00:44:43,680
Speaker 2: today's current technology. And because everything you're saying there is

878
00:44:43,719 --> 00:44:47,760
Speaker 2: about progressing with purely your mind, being creative, and it's

879
00:44:47,800 --> 00:44:49,319
Speaker 2: not money that will take you there.

880
00:44:49,440 --> 00:44:51,760
Speaker 1: I agree and thank you very much. I'm so impressed

881
00:44:51,800 --> 00:44:54,239
Speaker 1: with all you've done, all your door, thank you, thank you.

882
00:44:54,719 --> 00:45:02,960
Speaker 2: Sure That Moment with Damon John is a production of

883
00:45:03,080 --> 00:45:06,840
Speaker 2: the Black Effect Podcast Network. For more podcasts from the

884
00:45:06,880 --> 00:45:12,080
Speaker 2: Black Effect Podcast Network, visit the iHeartRadio app, Apple Podcasts,

885
00:45:12,160 --> 00:45:15,480
Speaker 2: or wherever you listen to your favorite show and don't

886
00:45:15,560 --> 00:45:20,080
Speaker 2: forget to subscribe to and rate the show. And of

887
00:45:20,080 --> 00:45:21,640
Speaker 2: course you can all connect with me on any of

888
00:45:21,640 --> 00:45:26,920
Speaker 2: my social media platforms. At the Shark, Damon spelled like Raymond,

889
00:45:26,960 --> 00:45:27,480
Speaker 2: but what a d