|Chapters Links||Summary Text||
Chapter 1: How 80/20 Works and Why
Chapter 2: Racking The Shotgun
Chapter 3: You Can Do Better
Chapter 4: 80/20 Traffic, where you go to get customers
Chapter 5: How to Use the “Invisible Money” Finder at www.8020curve.com
Chapter 6: Simplify Your Life With the Power Triangle
Chapter 7: 80/20 Conversion: Now that you’ve Racked the Shotgun, Make ‘em MOVE
Chapter 8: Your USP (see cheat sheet also attached)
Chapter 9: It’s Not Failure. It’s Testing
Chapter 10: Scale Up – Massively
Chapter 11: Expand, Diversify, and Conquer Planet Earth
Chapter 12: Make More From Every Customer – 80/20 Economics
Chapter 13: Power Guarantees
Chapter 14: 80/20 = Harnessing Natural Forces
Chapter 15: Do You Wanna Make $10 Per Hour? Or $100, $1000, or $10000?
Chapter 16: Make $1000 Per Hour Doing What You Love
Chapter 17: 80/20 Hiring and Outsourcing
Chapter 18: How to Get More $1000/hr Work Done with a Personal Assistant
Chapter 19: Fire the Bottom 10 Percent!
Chapter 20: 80/20 Controversy – Get famous by Polarizing your Market
Chapter 21: 80/20 Market Research in a Single Afternoon
Chapter 22: 1,000 Things to Pay Attention to – Only Three or Four Matter Right Now
Chapter 23: RFM: The 3-D 80/20 of Profitable Marketing
Chapter 24: “My Latte’s Too Foamy!”
80/20 and 80/20 squared are true of almost anything you can measure in a business, meaning 80% of your revenue will come from 20% of your customers. And of those 20%, 80% of those will come from just 4% of your overall customers. It also works cubed.
Shift your business thinking – business is not about increments; it’s about the Richter scale and powers of 10.
Send 1 calculated signal that most ignore, but a few respond.
Before spending precious time/money on any sales, marketing, or business endeavor, you need to rack the shotgun.
People are self-identifying as the right targets or the wrong targets for you 24 hours a day.
It’s not just about customers; it’s about everything that makes money change hands: product lines you choose to sell, web pages you optimize, systems, etc.
If you can spend 80 percent of your time in front of the right people, you can triple your income.
Direct marketing, if he spent his time and money on racking the shotgun and paying attention to whose head whipped around, and rejected cold calling, he’d
Laser focus on prospects that already understand what you do, have problems you can solve, and believe in your way of solving them.
A company he visited as a salesman was educating their customers with a book, and advertise it and give it away.
Got to have a mechanism for turning publicity into a sales funnel.
7 Cardinal Rules Of An 80/20 Sales Pro
As a marketer or salesperson, you must thoroughly master at least one form of advertising media. Until you do, you’ll be at the mercy of whatever comes along.
Don’t picture a single marketing problem without this tool in mind.
If you don’t offer a higher ticket item (with commensurate value) for the smaller number of customers, they will go somewhere else to get it.
One of your highest aspirations as a marketer is craft endlessly irresistible offers, such that people spend a disproportionate amount of money with you.
Almost everybody has at least one passion, one interest, one obsession where they’ll gleefully spend irrational amounts of money.
Wherever there are rabid, obsessive customers, there’s a great business
80/20 is everywhere you look; you can’t do anything about it because it’s a law of nature.
Traffic and Conversion and Economics with 80/20 in the center
80/20 is in the center since there are multiple layers of 80/20, and within each piece of the triangle.
Four questions to ask for Marketing 101:
The next thing to notice is you need to go counterclockwise to decide how to sell something
Advanced marketers don’t start with the invention – they start with “What would people buy”. Then create it or find it.
And there’s a power triangle in each element of the Triangle
Every move you make comes down to
The core essence of marketing is how much you are willing to pay to acquire a customer.
Capitalize on the willingness of the top shelf customer to spend money.
Imagine what your customers would happily part money for.
Sales is a disqualification process! The more junk you can eliminate before you spend money and effort, the more effective you are.
With a list, most people dive right into persuasion an salesmanship; that’s a mistake
The 5 power Disqualifiers
The most important thing of these 5?
If you’re talking to your prospect on the phone, you need to start with your USP.
For copywriting, you can go through the above disqualifiers
As long as you’re reading a page in their own diary and speaking to them about the most painful things in their life, you’re racking the shotgun.
Headline Test: If your headline were a classified ad, would it make the phone ring? Don’t focus on your product – focus on the urgent problem, the bleeding neck.
Best sales formula ever: Problem – Agitate – Solve. Most people don’t spend enough time on the “Agitate” part.
Four questions your USP Can and Should Answer
What can you make unique about you?
Each Product you sell should have it’s own USP, but you can have a personal USP that stands distinct from your product or business.
If you want to be a successful marketer:
Whenever you have something in your sales funnel that’s not working, just break it down into pieces and make the 1st piece work.
If you can’t sell a product, see if you can give it away. Or part of it. If they won’t take the free item, find out why.
Split test every stage in the purchase pipeline
How fast can you go from zero to dominating a market? As fast as you can split test.
Secret of banner ads? Test 50 ads. One of them’s going to be a crazy winner. So you write 50 ads, and one will produce as much as the other 49 put together.
To get a world class sales funnel:
As for perfection: 80/20 inherently means that “good enough is good enough.” When you embrace 80/20 there’s always going to be some unfinished detail. Sometimes this will bother you
There will always be something in your success formula that demands perfection.
Accept imperfection and move on to higher value tasks.
To see if Facebook is right for you, go to isFBforme.com. But generally, get google adwords or FB advertising right before doing anything else.
But how you expand: start with the place of highest leverage (people don’t buy brake pads on FB) and test with consistent traffic, which is highly targeted paid advertising. And expand from there.
You can optimize most of your sales funnel by optimizing a handful of vitally important web pages. The rest can just be “good enough”, at least for now.
The expanding universe theory of market domination says you build out your advertising strategy in this order:
How you prioritize social media varies hugely depending on the type of business you’re in. Get your “Social Media Compatibility Score” at www.isFBforme.com
Expanding Universe: small, highly targeted audiences are on the right; large mass markets are on the left.
The Y axis measures focus and efficiency.
Countless startups have gone to early graves because they tried to “get their name out there.” They failed because they got egocentric and put branding and exposure ahead of building a solid, reliable sales funnel.
You never want your sales partners to be blind test subjects for your experiments. Friends come and go but enemies accumulate.
All you’re going to do is split-test a couple of things at each step of the process, one time per month.
Economics: it’s 80/20 all the way up and down.
Memorize this handy rule: 80/20 says 20 percent of the people will spend 4 times the money. And 4 percent of the people will spend 16 times the money.
Power curve shows you the almost limitless capacity of the top 1 percent.
The Principle of the $2700 Expresso Machine
When you look at your past buyers, the Power Curve appeals to:
The principle of the $2700 expresso machine applies to almost anything you choose to sell
You can’t sell the same cup of coffee for $1 to some and $10 to others. But the point of the Power Curve is if coffee is the itch, the range of expense they’ll go to scratch it is huge.
80/20 says if 10 people will pay $1 for a cup of coffee, two of the 10 will pay $4 for a better cup of coffee. (assuming they see it as “just as good a deal”.)
The core question people ask when they pay money is “What problem can you solve that nobody else can solve?”
Starbucks transformed hokum coffee into an experience
If it doesn’t make your stomach churn, it’s probably not an awesome guarantee.
Master Formula for a Power USP
Sell results, not procedures.
Positive feedback is when past action reinforces future action in the same direction. (Reinforcement)
Negative feedback corrects errors, like a missile guidance system. (Correction)
Positive feedback is the root cause of chaos.
When you zoom in or zoom out 10X, 100X, and 1000X, you see the same pattern over and over.
Positive Feedback is Pheonminally Powerful
You get good at 80/20 by learning to identify the leverage points.
By looking at the power curve and using hours or minutes as the “people” on the x axis, and plugging in total output of 8 times the dollar amount per hour, it shows the most valuable hour of your day is very high, and least relatively low.
All of this means we MUST work towards getting to the most valuable minutes/hours of our day
There’s a great list of tasks
If you’re just starting out, seriously get someone to do household tasks like washing clothes, cooking, cleaning, shopping, putting gas in the car.
Begin every day with a question: “What items on my to-do list can I hand off to my personal assistant?”
It seems very strange to have someone coming over to your house, doing stuff that your mother used to pay your allowance for. It may go against everything you’re taught.
The only way to ever do your big contributions is by shedding a whole bunch of utterly forgettable, trivial, uninteresting tasks.
Somebody will WANT that job.
It’s not actually that hard to be worth $100/hr. You just need to get competent. But to be worth $1,000 or $10,000 per hour, you must be excellent
Take the Marketing DNA test to see how you most naturally persuade.
One person can’t cover all the marketing bases, so do this:
The test recognizes that everyone has to sell some time or another.
Unique Capability Survey
Your UCS with some other tools, should help you form you LOVE LIST.
80/20 rule applies to hiring – never assume you can find serious talent without serious disqualification.
Fiver is the fastest way to rack the shotgun
He posted a couple of jobs on his site, and added a $25 application fee. It weeded out people who didn’t think they could win.
The easiest way to get a fast productivity boost is to hire someone who’s job is to do “anything I don’t want to do.”
The PA can hire other people
Method to hiring someone – a sales funnel in reverse, and they have to sell you:
It’s normal to feel uncomfortable and even guilty about making other people do stuff you could do. But it’s the only way to outgrow the limitations of your time constraints.
It’s OK to only do stuff you want to do! It’s OK to take a vacation day while your employees work for you.
If you do this right, you will discover that an entire ecosystem has been built around you, and it’s possible because you have created space where you can do several hours of $1,000/hour work every single day.
Most people’s quantum leaps in business are closely associated with making these kinds of changes – not just marketing breakthroughs but breakthroughs in delegation
One of the best ways to move energy and resources from the bottom of the Power Curve to the top is to fire a customer.
Fire the bottom 10 percent
80/20 says that we must always design mechanisms to sift prospects into categories:
Real profits come from levels 5, 6, 7.
The 80/20 Saddle curve shows you’re really dealing with two 20 percents – people that LOVE you, and people that HATE you
The two small, highly polarized groups control the majority of a conversation
Every market has a controversy
If you want to get love and adoration from raving fans, you almost certainly need to be willing to be reviled by others.
The rabid 5 percent are
The position you take in your industry may not be as primal as guns, but when you take that position and beat the drum, you build a powerful publicity platform.
People do things for emotional reasons, not rational, or based on facts, superior arguments, better logic.
If you can reach people at an emotional level, you can avoid having an argument in the first place
Triggering panic on the other side is the fastest way to raise your profile
Never go into a market unless you can write a page of your customer’s diary and be so spooky-accurate that they wonder: “Hey were you spying on me?”
Ask If you could advertise on only ONE keyword phrase online, what would it be?
Get the free ecourse on google adwords at perrymarshall.com/google.
Once you know your keyword
Gather all the relevant language and highlight the top 20 percent of it that seems longest, most engaged, and/or most passionate.
Send these 3 questions to prospects, customer list, or recruit people on twitter or forums or wherever else you meet them.
Throw the info in a spreadsheet and keep only the “very difficult” because those are the people who have the itch and can’t scratch.
Throw away the short answers
Short list of things to track are
Break your sales funnels into pieces
Every dimension of your sales machine has a disproportionate relationship between cause and effect
So obviously it’s the big squares that deserve the attention.
Example: One keyword might deserve its own landing page to track
But the point is at any one time, there are only 3-4 things you need to focus on to get your biz to the next level: keywords, pages on your site, a couple of critical steps in your sales funnel, a couple of products, one or two more key salespeople.
So if you’ve tweaked everything, here are some ideas for the Next Big Thing
To create the 3-D model, Rank customers from most recent to least recent, then in another column most frequent to least frequent, then most money to least money.
After you study this, you see that out of 400 customers, a few dozen are your best, and you don’t just send them a letter – you send them a FedEx package or gift at christmas or their birthday.
Can get more detailed info on your customers: http://kristalytics.com/database_dna.html
Email blast to a small number of people since it’s comparatively safe from spam filters, like 100 to 200 people.
Segment your list into at least six to a dozen categories according to what products or services and info/topics they’re interested in.
Fact: there are some people who, no matter how hard they try, will not be able to “make it” in the hard realities that inevitably flow from the 80/20 principle.
Fact: There are some people who, without seeming to even try all that hard, make more money than they can possibly spend. 80/20 sees to it that money keeps flowing their way
You can’t legislate 80/20 away or tax it away or educate it way or wish it away
You cannot fix the problem on the outside, because in the end, 80/20 still always wins. You can only fix it from the inside.
Every time you give, you make a statement of personal power of autonomy: “I am not a slave to money. Money is my slave. I believe I will always have enough, and more is coming my way.”
The generous 80/20 entrepreneur focuses on the top 20 percent of his customer base, giving maximum value and extracting maximum profit. That’s why he has enough money to build a school for AIDS orphans in Nairobi.
If he invested all his generosity on “average Americans” or low-value customers, or charged too little for his services and helped clients who couldn’t afford his fees, he wouldn’t have anything left for the weakest of the weak who really need the help.
80/20 can inform you only about physical material realities. But there are higher realities: curb your 80/20 appetites with a healthy dose of humility and spiritual sensitivity.
Ideas are the basis of all creative acts
You can’t change the 80/20 power curve, but you can push the whole thing upward.
True Marketing Maniacs and Economic Alchemists generate powerful ideas everywhere they go.