Jul 2, 2020
A marketing mindset is one that will ultimately lose. Instead, you need to think like a billionaire.
BILLIONAIRES THINK ABOUT MULTIPLYING MONEY THROUGH LEVERAGING ASSETS.
They don’t think about promotions, they don’t think about a shortcut, they don’t think about the cost of media placement. They think about multiplying money through leveraging assets.
Podcast Transcript
This may be a weird thing to say, because most of you are likely to be marketers.
But - You see, I know normal marketers typically think in terms of promotions and launches.
This marketing mindset is one that will ultimately lose. Instead, you need to think like a billionaire.
BILLIONAIRES THINK ABOUT MULTIPLYING MONEY THROUGH LEVERAGING ASSETS.
They don’t think about promotions, they don’t think about a shortcut, they don’t think about the cost of media placement. They think about multiplying money through leveraging assets.
According to Forbes, Gina Rinehart grew her wealth by 4%
last year, and Warren Buffet grows his stuff by around 20% annually. That means for Warren he puts in $1.00, and by the end of the year he’s getting $1.20 back.
They are multiplying money leveraging assets. In this case, those assets are a mix of private and publicly traded companies.
In terms of our various businesses, I want us to think like them as well
HERE IS ONE OF MY ATTEMPTS IN MY BUSINESS...
For a while now my Facebook campaigns have been lean, mean and scrappy. I don’t care overly about gaining fans nor followers. I don’t focus on anything other than doing right by my customers and turning a profit.
In my latest Facebook investment, I am using a not overly clever campaign to drive people to an opt-in page and then put recipients into an email sequence that offers to conduct a FREE critique of what should be their greatest marketing asset - “their website”.
This is a simple direct response technique... nothing earth-shattering, nothing fancy but I used paid ads to send traffic to my opt-in page.
Overall picture after 3 months:
Revenue: $16,750 Ad spend: $6,583
Net after advertising: $10,167
So, I put $6,583 in, I got $16,750 back and my net was $10,167.
That is a 154.44% return on investment in 90 days.
Gina Rinehart and Warren Buffet would put $1.00 in and get $1.04 and $1.20 out, respectively, and that would take a year.
I managed to get this return on investment in 90 days, which is awesome.
Now I know they’re doing it with billions of dollars and I’m doing it with thousands. The point being, this result is pretty cool.
As a matter of fact, if we were able to consistently get that same return every 90 days, the annual return would be circa 1,000% per year.
I want to tell you, this is attainable. I do it for myself and my clients regularly, month-on-month.
It is attainable, but notice, I’m not telling you it’s easy. It’s actually quite difficult, but it is attainable.
Now let me ask you a question.
Would you buy this tiny house for $8.01?
Maybe yes, maybe no. But would you buy this house for $8.01 if you could rent it out for $13.40 this month?
Probably you’d say “Yep, of course I’d buy the house for $8.01 because I’m getting more than that back this month.”
- That house is an asset
- You bought it for $8.01
- You rented it for a month for $13.40
- Your profit is $5.39
The cool thing is, now you own the house free and clear. Even if you rent it next month for $1.00, you’re still making a profit. In fact, the entire dollar is profit.
So, why am I talking about a $8.01 house?
In the campaign, I just talked about:
- I invested $6,583
- It generated 822 opt-ins to my list
- Each opt-in cost me $8.01 each – just like that little rental property
- Each optin for that 90-day period produced $20.37 in revenue
It’s the exact same principle as this rental property illustration that I’m giving you, and the upside is, every single dollar that comes from communicating with the people on my list, that result in revenue in the future, is going to be profit.
It’s an incredible thing to actually understand what can really be done through advertising. When you stop thinking about promotions and you start thinking about assets and the multiplication of money, your business can really, really grow and take an incredible upward growth curve.
So What we’re really doing in this example is I’m creating and I’m leveraging cash producing assets.
- Cash Producing Asset #1 - Product and Marketing System: This is the thing I’m selling... the product (or service) and the marketing system is the ads, the emails and the automated system that converts the traffic into initial revenue.
- Cash Producing Asset # 2 - The List: I’m using Cash Producing Asset #1 to create a second cash producing asset, and that’s the list. Each email address is just like a little rental property that I’m buying and getting monthly rent on.
- Cash Producing Asset #3 – Automated Systems and Campaigns: These continue to deliver value to the new leads, to strengthen my brand and produce additional revenue by selling more products.
I used Cash Producing Asset #1 to create Cash Producing Asset #2, which is the list.
Then I used Cash Producing Asset #3 to get even more revenue.
THIS IS A SIGNIFICANTLY DIFFERENT WAY OF THINKING ABOUT SELLING THINGS THAN YOUR TYPICAL MARKETING MINDSET.
As a sales and marketing strategist, my job is to help my clients create as many of these cash producing assets as humanly possible for their business, and to do that in a way that’s systematic, formulaic and process driven, so it won’t be overwhelming.