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Thursday, 09.02.2010 |
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| Seven Years to Seven Figures |
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Product Details
Notes
CHAPTER 1 - WHAT THE HECK DO I KNOW?
Dale Carnegie - most people fail because they don't have clearly defined goals
but some people fail to make progress because they have too many goals
if you're ambitious, it's important to establish priorities and narrow down goals
having one single clear goal helps you make decisions based on that goal
CHAPTER 2 - ARE YOU READY FOR WEALTH?
natural resources are in limited supply, but human resources are infinite
wealth is created out of thin air by through intelligence, creativity and skill
let your audience tell you what they want, don't try to outsmart the market
if you're not sure what to do, ask yourself what will make the most money
be careful about getting fixated on your net worth, thinking it's not enough
most wealthy people will say they want twice as much as they have
pick a target now and understand why it's enough
being content with your wealth is harder than getting wealthy
USA Today - the average American household had $84,454 debt in 2003
CHAPTER 3 - AUDREY MAXWELL
one way to value a business is sum of 3 years net earnings * (factor of 4/3)
so a company is worth roughly 4 times the profits of an average year
in a partnership, you need to have a way to value your private shares
choose equity and profit-sharing in a business rather than employee status
also present the benefits to others instead of why something would benefit you
if you're starting out in a job, look for four things:
1) a smart, experienced boss who is going places and can teach you
2) a department or division that is oriented toward sales
3) a company with high potential for growth
4) an industry with high growth potential
generally opt for a smaller, faster-growing company over a large, steady one
make yourself invaluable to the company by doing the following:
1) work longer hours, prove your commitment
2) understand your responsibilities, the specific way you can add value
3) work harder than others, show your motivation
4) work smarter, ask questions, constantly study and learn more
5) help your boss do better, he'll help you in return
use the fact that you're closer to the action than your boss, help him see the details
make people aware of the value you are creating for the company
the most important thing is to show that you can increase sales and profits
gain as much useful experience as possible as an employee
then apply this knowledge and experience to your own business later on
if you think your company is going to be successful, try to use self-funding
if you want a raise, don't bother showing how good on an employee you are
that focuses on you, not them, show them how you increased company profits
the specific steps in a great self-promotion presentation:
1) let your prospect know that you know his goals, problems, objectives
2) make the claim that you are the person to solve or achieve them
3) prove that you are that person to do it
4) request a specific action
elasticity of demand - demand increases by the same percent price decreases
continuity payment plan - drop the immediate price but not the total price
sell new back-end products to your existing customer base
this increases the lifetime value of each customer
the first sale is always the most expensive sale, successive sales are easier
talk to your customers regularly to build familiarity, trust, and response rates
give your customers more of what they are already getting
for example, offer a higher level of service, or a deluxe version of a product
home values go up by 4-6% per year on average
but factoring in leverage on an 80% mortgage, that's a 20-30% ROI
calculate the average price per square foot for houses in a target neighborhood
CHAPTER 4 - ALAN SILVER
most people don't want to understand why they are sick, they just want solutions
target your advertising toward solving problems, not just providing information
work to achieve "success through successive failures"
write in simple terms, focus on promises and claims, not adverbs and adjectives
real wealth is being happy with what you have and not worried about the future
"chicken entrepreneurship" - test your business without quitting your day job yet
don't be shy about asking for help from successful people, they want to give back
test your idea by partnering with a business on a back-end, shared-risk basis
coattail marketing is tagging onto an established business and adding value
once your idea is tested, you need to generate new customers in an open market
you really have to study your market inside out and know all the subtle details
great ideas often fail because the entrepreneur sees the market from the outside
so they miss some of the crucial needs of the market that may be counterintuitive
the emotional "buying frenzy" is what makes back-end marketing so effective
don't allow "reverse delegation" - someone asks for help and you do it yourself
also avoid trying to solve every problem yourself, let employees find solutions
ask your employee to think of 3 possible solutions, then you'll choose together
CHAPTER 5 - BRUCE BUFFER
know how to sell, how to make cold calls, and how to handle rejection
protect your brand and trademarks and build a strong licensing business
work on products you have a passion for, with people you really like
target any ads to a specific audience and directly address the benefits to them
learn how to deal with different types of personalities, and adjust your approach
CHAPTER 6 - JUSTIN FORD
for import/export, specialize in one product to one country first, then expand
being happy with a job is more about your expectations than the job itself
expect to work hard for a high-paying job, and always look for opportunities
don't worry about how much you make today, think of the long term potential
for optimal performance, plan to invest about 500 hours in an ideal job search
evaluate a job based on learning opportunities, not salary or position
ask questions all the time of your boss and everyone, always be learning
most people fail because they don't have a plan, or they don't take action
CHAPTER 7 - KEN MORRIS
everyone wants a good deal, find a way to give it to them and they'll love you
sell people more than one product, this is basically like back-end marketing
travel overseas and setup satellite manufacturing in other countries to save costs
be friendly, talk to people, and constantly look for new business opportunities
find ways to build effective partnerships, complement each other's resources
CHAPTER 8 - MONICA DAY
ask for help when you need it, actively look for a mentor
eliminate credit card debt, improve credit scores
setup a tax savings account to withhold money so you don't get hit at tax time
create a "just in case" fund to cover 3-6 months of living expenses
develop an investment plan to save for retirement and earn future passive income
copywriters have freedom of schedule, but it's still earned income, not passive
self-discipline is key, most copywriters are more productive in the mornings
have a regular schedule to manage your time effectively
study your target client well, then offer to write on spec first to prove yourself
combine other skills with copywriting to increase your value to a specific market
develop a network of both peers and mentors
study the most effective work of successful copywriters and learn from them
narrow your focus to a niche market and become an expert in that area
write a lot, when you're stuck try copying someone else's writing and you'll learn
Mozart, Aristotle, and Jack Welch all had mentors, try to find a mentor for yourself
you can learn everything yourself, but a good mentor can speed up your progress
CHAPTER 9 - DAVID KELLER
in the past 30 years, the practice of medicine has become a lot less profitable
this is due to increased government regulations, HMO reporting requirements,
malpractice insurance, and administrative obligations that have raised costs
adding the cost and time invested in education, the hourly rate is very low
postal mail costs about $0.50 per letter, internet email is about $0.005 per letter
the best way to achieve a major goal is to do something every day to get closer
focus on sales first, before other details like your office, accounting, or branding
don't just increase customers, that can mean increased workload or employees
find ways to combine work, the goal is increased profits, not just more work
also find ways to increase prices by improving quality without costing more
mentoring is about putting the protege's interests first, give before you receive
leverage your current knowledge to create additional income streams
you're an expert in your current career, you can be a speaker, author, consultant
to become recognized as an expert in your field:
1) narrow down your field of expertise
2) master your subject
3) promote yourself
it takes several thousand hours to become a true expert, so focus on one area
some general rules of thumb:
1) it takes about 1000 hours to become competent at any worthwhile skill
2) it takes about 5000 hours to master that skill
3) it takes between 25,000 and 35,000 hours to become a virtuoso
if you are really gifted and you have a great teacher, you may go 20-30% faster
but generally these numbers are statistically true across many fields
narrow down your focus by writing out details on paper
for example, draw a grid with stocks, bonds, and precious metals on one axis
and technical analysis, fundamental analysis, and industry experts on another
then you pick one square to focus on, such as fundamental analysis of stocks
you're more likely to become the world's best in one area than a general area
Bob Bly, "Become a Recognized Authority in Your Field in 60 Days or Less"
think about your own line of work:
1) who gets paid the most?
2) what kinds of problems cause the most trouble?
3) what kinds of opportunities result in the greatest profits?
cooperation is often better than competition, build good relationships
marketing is like medicine, there's no such thing as knowing it all
if you stay humble and never stop learning, your chances of success will grow
CHAPTER 10 - BRAD SOLOMON
things he did right:
1) quit his job and started his own business
2) focused on marketing and providing quality service in the first two years
3) took a limited risk in starting a second company, trusting his partner
4) made good choices in the people he surrounded himself with
5) kept improving every aspect of his businesses, customer service and marketing
6) built and worked with a support network
his one regret:
he didn't take full advantage of the help his mentor was offering
this was because of pride, he wanted to be an equal so he didn't ask questions
looking back, he would have asked for more help from his mentor
carefully choose what business you go into based on your talents and personality
personality types of businesspeople:
1) Self-Starter - good at starting new projects
2) Super-Salesperson - good at selling to people
3) Aggressor - not shy, good at approaching anyone
4) Big Thinker - big-picture person, breakthrough ideas but not details
5) Small Thinker - good at the details, very organized and accurate
6) Smarty Pants - intelligent and good at analyzing complex problems
7) Charmer - socially adept, people like you and you make people smile
8) Wily Coyote - gets things done behind the scenes, makes subtle moves
9) Connector - tons of friends and business associates, big Rolodex
10) Pusher - impatient, driving force behind achieving goals on schedule
11) Organizer - smoothes out chaos, plans ahead and in great detail
12) Artiste - creative, artistic, bored by convention, thinks new and different
based on your dominant traits, pick a business area:
1) Service Business Owner
self-starter, super-salesperson, connector, pusher, charmer
don't want smarty pants, wily coyote, big thinker, or artiste
2) Freelance Consultant
self-starter, smarty pants, big thinker, artiste
don't want pusher, charmer, or super-salesperson
3) Manufacturing Entrepreneur
self-starter, organizer, big thinker, connector, pusher
don't want aggressor, artiste, charmer, or wily coyote
4) Information Publishing Magnate
self-starter, big thinker, aggressor, organizer, connector
don't want small thinker, artiste, or smarty pants
5) Internet Marketer
self-starter, big thinker, aggressor, wily coyote, artiste, pusher
don't want organizer, smarty pants, or super-salesperson
6) Freelance Copywriter and/or Graphic Designer
self-starter, aggressor, smarty pants, connector, super-salesperson
don't want charmer, big thinker, artiste, or wily coyote
four categories of business
1) Retail
2) Service
3) Wholesale
4) Manufacturing
note that manufacturing includes creating anything that's of value to the end user
find a mentor by looking for successful businesspeople who recently retired
generally 2-5 years after retiring is optimal, they know enough and are bored
don't pay your mentor anything at first, but later on offer them compensation
try to get multiple mentors to compare advice and take the best of everything
don't separate customer service and sales, combine them to leverage both
Brian Tracy, "The Power of Charm: How to Win Anyone Over in Any Situation"
1) show acceptance - give them unconditional positive regard, smile
2) show admiration - make a specific compliment, internalize it then voice it
3) show approval - notice good things, again be specific with your praise
4) show appreciation - say thank you, make eye contact and use tone of voice
5) give attention - listen carefully and show that you are interested in them
specific strategies for charming:
1) listen attentively, don't be distracted by other things
2) pause for a moment before replying (to show you're thinking of their words)
3) ask questions when you need clarification
4) paraphrase their complicated words in a simple way before replying
5) face the person you are talking to
6) make direct eye contact
7) move your gaze from one to another of the speaker's eyes as they talk
8) nod appropriately
9) provide verbal clues that you are interested ("yes, i see what you mean")
10) tilt your head occasionally
11) be quick to smile, laugh and compliment when it's appropriate
12) act as if you really like the other person
a great partner is someone who you can work with over the long term
make sure they will be capable if the company grows by ten times
partners and employees should share your vision for the company
look for partners who complement your weaknesses with their strengths
make sure you both like the product or service
think about hypothetical situations and how your partner would act
develop a small second stream of income, then see if it grows past your day job
one option is to hire someone to do the actual work
you will make a very small profit at first, since you pay your employee most of it
but it lets you test the business idea on a small scale and see if it grows over time
the key as a business owner will be to find customers and build sales
the actual work can be done by someone else, your job is sales and growth
CHAPTER 11 - THE BABY BOOMER CHALLENGE
for a period of 2 generations, end of World War I to 1970s, retirement was good
but there are now 80 million baby boomers (born between 1946-1964)
the "three pillars" are crumbling - Social Security, Medicare, private pensions
typical retiree in 2005 received $1002 per month in Social Security
but the average rent was $940 per month in 2005
groceries average $92 per week, utilities were $234.25 per month in 2003
expenses to drive a small car 10k miles a year were $473 per month in 2004
by 2017, the Social Security Administration will pay out more than it receives
all of the funds will be depleted by 2041
baby boomers aged 50 to 64 are spending twice as much on health expenses
the average remaining life expectancy for 65-yr-olds is 18.2 years
this is up from 13.9 years back in 1950, and still increasing
healthcare costs have risen 40% since 1988, and will reach $3.6 trillion by 2013
the Pension Benefit Guaranty Corporation (PBGC) insures pensions
this organization was in a deficit in 2002, and had a deficit of $23 billion in 2004
there were failed pension plans in the steel industry, bankrupt airlines and utilities
U.S. companies are underfunded on their pensions by $450 billion
the PBGC will run out of funds in about 15 years
note that lower interest rates make long-term obligations seem larger
the PBGC has about $73 billion in liabilities, this affects all defined benefit plans
depend on yourself for your retirement, not your company or the government
CHAPTER 12 - LESSONS FROM LIFE:
WHAT I'VE LEARNED ABOUT BUILDING WEALTH QUICKLY
three things that are often common to quick wealth building:
1) earn high income
2) build equity in a business
3) invest in real estate
strive to become a high income, high net worth, independent businessperson
each core customer is worth between $100 and $250
use the internet to precisely target potential customers worldwide
talk and sell to your customers on a regular basis for free through email
pick a topic you love, make a marketing plan, figure out what you can sell
focus on selling first, everything else can come later, sales is the key
Frank Lloyd Wright - "The secret to success is dedication, hard work,
and an unremitting devotion to the things you want to see happen."
three things to reach success:
1) a plan of action
2) making the time to follow the plan
3) the willpower to do the work
AFTERWORD
it's almost impossible to get rich quickly by investing passively
compound interest works great, but only over a long period of time
passive investing in stocks or options generally won't work
you need to actively research and work hard to really make a lot
if you want to create massive wealth quickly, you have to actively work hard
the single most effective way to become wealthy fast is to increase your income
1) do what you're currently doing for a living, but do it better
2) develop a financially valued skill, sales, marketing, something profit-driven
3) augment your income, multiple streams, side business, consulting
once you have high income, you have to get better-than-average returns
this isn't going to come easy by just picking the right stock and sitting back
you have to find the right investment vehicle, and then actively work it
learn how the investment works, learn every detail of how to increase growth
1) invest in the business you work for by getting profit-sharing compensation
2) invest in another business on the side that you or someone else runs
3) invest in real estate
you can't just be a passive investor in any of these, you must actively work them |
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