7 Cardinal Rules of a Profitable, Leveraged Business


Do you know the big difference between a network marketing distributor and a regular sales rep?


One word, “leverage!”


Sales reps usually make a sale and get paid once for that sale. In network marketing we can get paid over and over again for the sale and have the opportunity to create unlimited residual income from that person, through their distribution efforts. Thats leverage!


Leverage quite simply means doing more with less.


And in the digital age, we have the opportunity to do a lot more, with a lot less.


I’ve personally created single YouTube videos that have produced up to $50,000 in revenue for my business. It was a 90 second video that took me all of a few hours to create upload and distribute in a way that would get it exposure at the top of Google for a highly searched keyword. Thats leverage!


Internet marketing is a vehicle for creating more leverage because we can create systems and processes that filter people out. Online sales and marketing is a disqualification process.


We may put 100 people in front of a website to get 30 of them of them to “opt-in” and basically raise their hands and ask for more information. In this case we have disqualified 70 of them and started to communicate (usually with an automated email follow up series) with the 30 interested prospects.


Communicating only with people who have raised their hands and stated an interest is a way to create more leverage.


You could cold call all 100 prospects over a period of 3 days only to get 50% voicemails and 20 people to tell you something like,


“Who the hell are you and where did you get my phone number?”


But thats an example of NON leverage.


Do you see a fundamental difference?


So whats the answer? How do we create more leverage in our businesses so we can do more with less?


We have to get really good at getting people to raise their hands and request more information. Basically giving us permission to market to them over time, (again, usually via automated email follow up)


We call this “direct response marketing”


[Tweet “”In marketing there is no failure, only tests that didn’t work like you thought they would” -Perry Marshall”]


Perry Marshall is one of the best direct response that I know and I got this list from his book, “80/20 Sales and Marketing”

Its one of the best books I’ve ever read on the topic of direct response marketing.


Perry called this list his, “80/20 Sales Pro Rules”


I call it, “7 Cardinal Rules of A Profitable, Leveraged Business.”


Here they are….


#1.) No Cold Calling EVER


Cold calling is a complete waste of time and it is a very low leveraged activity


#2.) Before you sell anything you must know what you are willing to pay to get a new customer


Do you have any idea what a new customer is worth to you?


If you know that on average a customer is worth $500 and it takes 50 leads to get 1 new customer then on average, every lead is worth $10. If you can generate leads for $2 per lead, than you are essentially making $8 in profit for every single lead that you generate. 50 leads per day = $400 in profit per day.


This is an oversimplification for this example and in my experience the average lifetime value of a customer is WAY more than $500.


#3.) A prospect who finds you first is more likely to buy than if you find him


This comes down to authority positioning. When someone finds you, particularly when they are looking for a solution to a problem, they automatically perceive you as an authority which makes the selling process sooooo much easier. Essentially doing more with less. I.E. leverage!


#4.) You will dramatically enhance your ability as a sales person by authoring, publishing or speaking on your topic


Not at the point in your business where your speaking on stage, creating your own courses or writing your own books yet? Thats cool. Start where the rest of us did and start publishing your own blog posts, videos and social media content to position yourself as an authority.


We all have to start somewhere and this is non-negotiable for creating a leveraged business. You have to be doing things to position yourself as an authority if you want to be taken seriously enough to get a lot of business. Capisce?


#5.) Generate leads with information about solving problems, not about the product itself


People don’t buy a drill because they need a drill. They buy a drill because they need a hole. Therefore, if your selling drills, don’t create information about drills, create information about how to create holes. I.E solving the problem.


If you want to attract network marketers, don’t publish information about how your company is the greatest company in the world, like amateurs do, publish information about solving the biggest problems for network marketers, which is, without a doubt, lead generation. This system will help you solve this problem, both for yourself and for the network marketers you wish to attract.


#6.) You can attain the best negotiating position with customers only when your lead flow exceeds your capacity


If you only have 10 leads you very likely will become very attached to those leads and you may find yourself in a position where you are trying to beg and convince them out of desperation.


The lack of leads makes you attached to the outcome in each situation. If you have 1,000 leads you are less attached to the outcome of what any one of them might do, which puts you in a powerful position. When you have daily lead flow this business becomes so much easier and a heck of a lot more fun. And without daily lead flow you have no business and you end up running a non-profit organization from the DIS-comfort of your home. I can’t stress enough how important daily lead flow is to the health and success of you and your business…


Be sure and download your copy of my List Leverage Blueprint to discover the exact leveraged marketing strategies I used to recruit 166 reps into my business without even picking up the phone


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#7.) The best asset you can own is a well maintained customer database


It’s 10 times easier to sell to an existing customer than it is to attract a new customer. Therefor, if you are not creating a customer list, you are leaving a ton of money on the table. Not good!


I personally capture my customers contact information in my email list, (for email communication) my mobile list (for text messages) and via social media (for easy communication via Facebook etc.) Those are the big 3 communication modalities of a leveraged business. Email, mobile and social media.


If you’re building a team in network marketing or affiliate marketing, at the very least you should be inviting them into a private team Facebook group. Remember they not only did business with your company, but they also did business with you. So you should have systems to store, categorize and communicate with them if you want to create more leverage in your business. A team Facebook group is one of the easiest and fastest ways to accomplish this.


Did you find this post valuable? Do you think others would find it useful too? Use the share buttons at the top of this page to share these valuable insights with your friends and leave me a comment below to let me know your biggest “ahha moments” and takeaways, cool?



1 Comment

  • Matt Insardi

    Reply Reply September 18, 2015

    Hey Adam!

    Leverage is the key to massive success! #3 right on! I still see so many people chasing people online and offline when they could spend less time to attract more buyers if they just knew how to do it!

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