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www.getwsodownload.

com

THE SOURCE CODE TO


BUSINESS SUCCESS AND
ADVANCED WEALTH
ATTRACTION

29 Systems, Strategies & Secrets for


Rapidly Transforming Your Business,
Getting Rich & Living a Life of Freedom

Module 6

With Dan Kennedy

www.gkic.com
THE SOURCE CODE TO BUSINESS SUCCESS AND ADVANCED WEALTH ATTRACTION
www.getwsodownload.com
© 2015 Glazer-Kennedy Insider’s Circle, LLC. All Rights Reserved.

Published under the United States Copyright laws by Glazer-Kennedy Insider’s Circle, LLC. No portion of
these materials may be reproduced in any manner whatsoever (whether electronic, mechanical or
otherwise and including photocopy, recording or any information storage and retrieval system) without
the express written consent of the publisher. Any unauthorized use, sharing, reproduction or distribution
of these materials by any means is strictly prohibited. Requests for permission to reproduce content
contained herein shall be sent via email to our Permissions Department via email (support@gkic.com) or
facsimile (312) 880-1201.

This Presentation (“Presentation”) has been prepared No representation or warranty is given as to the
by or on behalf of Glazer-Kennedy Insider’s Circle, LLC achievement or reasonableness of, and no reliance
and/or its affiliated companies (“GKIC”) for the should be placed on, any projections, estimates,
purpose of setting out certain confidential information forecasts, analyses or forward-looking statements
regarding GKIC’s business activities, plans and contained in this Presentation which involve by their
strategy. References to “Presentation” include any nature a number of risks, uncertainties or
information which has been or may be supplied in assumptions that could cause actual results or
writing or orally by or on behalf of GKIC in connection events to differ materially from those expressed or
with the Presentation or in response to any follow-up implied in this Presentation. Except to the extent
inquiries from the Presentation. otherwise indicated, this Presentation presents
information as of the date hereof. The delivery of
This Presentation and the information contained this Presentation shall not, under any circumstances,
herein are confidential. In addition to the terms of any create any implication that there will be no change
confidentiality agreement you may sign with GKIC, by in the affairs of GKIC after the date hereof. In
viewing the Presentation you agree that you and each furnishing this Presentation, GKIC reserves the right
of your agents, representatives, advisors, directors or to amend or replace this Presentation at any time
employees (collectively, “Representatives”) will not, and undertakes no obligation to update any of the
and will not permit any third party to, copy, reproduce information contained in the Presentation or to
or distribute to others this Presentation, in whole or in correct any inaccuracies that may become apparent.
part, at any time without the prior written consent of
GKIC, and that you and all Representatives will keep This Presentation shall remain the property of GKIC.
confidential all information contained herein not GKIC may, at any time, request that you and/or your
already in the public domain and will use this Representatives promptly deliver to GKIC or, if
Presentation for the sole purpose of familiarizing directed in writing by GKIC, destroy all confidential
yourself with certain limited background information information relating to this Presentation received in
concerning GKIC and its business strategy, plans and written, electronic or other tangible form
activities. If you have signed a confidentiality whatsoever, including without limitation all copies,
agreement with GKIC, this Presentation constitutes reproductions, computer diskettes or written
Confidential Information for the purposes of such materials which contain such confidential
agreement. If you do not agree to the terms of this information. At such time, all other notes, analyses
Notice, you may NOT view, copy or distribute any or compilations constituting or containing
portion of this Presentation. confidential information in your or your
Representatives’, possession shall be destroyed. You
While the information contained in this Presentation is may be required to certify such destruction to GKIC
believed to be accurate, GKIC has not conducted any in writing.
investigation with respect to such information. GKIC
expressly disclaims any and all liability for
representations or warranties, expressed or implied,
contained in, or for omissions from, this Presentation
or any other written or oral communication
transmitted to any interested party in connection with
this Presentation, so far as is permitted by law.

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CONTENTS

The Source Code to Business Success and Advanced Wealth Attraction: Module 6 ......................................4

Approach to Wealth Creation .....................................................................................................................4

Control = Power = Wealth ........................................................................................................................11

Control of Yourself ................................................................................................................................12

Control of Product .................................................................................................................................14

Control of Information Dissemination ..................................................................................................15

Control of Distribution Channels ...........................................................................................................19

Control of Customers ............................................................................................................................23

Control of Organization .........................................................................................................................24

Control of Finances ...............................................................................................................................25

Control of Vulnerabilities ......................................................................................................................26

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THE SOURCE CODE TO BUSINESS SUCCESS AND ADVANCED WEALTH
ATTRACTION: MODULE 6

APPROACH TO WEALTH CREATION


I have had a question, “What have you done that is unique and different
from most people in your approach to wealth creation?

The question is really interesting for two reasons. One is that the list of “from
most people” is the whole seminar and then some.

Because, most people, pretty much everything they do about money is wrong
and the old Earl Nightingale thing, if you didn't know anything to do, you could
pretty much look around at what everybody else did and at least not do that;
because, the statistics about money have not changed since 1953.

Many of you have heard me say this before, but it is really important to imprint
it.
Most people, pretty
The Social Security Administration started to track in
much everything
1953, the year before I was born, based on the old
paradigm of course and they are still tracking based they do about money
on the old paradigm of a 40 year work career. is wrong.

They track adult males… because, in the 1950s


obviously a lot of women were not in the workplace. They have since amended
it to male and female. It hasn't made any difference in the stats.

Women, I know you think you're smarter than we are. You may be, but not
about money. Everybody is apparently equally dysfunctional.

They started to track it in '53. They tracked people for their 40 year career and
where they wind up in money at the end of the 40 years.

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The pyramid in 1953 was 1% wealthy, 4% financially secure, 15% able to retire
and then the rest of the 80 was somewhere between almost broke, so broke
they're depending on family, friends, relatives, churches, etc. for part of their
support in addition to government benefits… all the way down to so broke that,
even government benefits, they're still having to decide between a pill and a
meal and they're sitting down with their cat and sharing a can of cat food for
dinner.

That was in 1953. The last set of statistics from 2012, zero change.

Now obviously individuals move up and down and all that.

The only percentage that has changed is the percentage who are dead. There's
less dead. We live longer. They're in the bottom of the pyramid. They've lived
long enough to be broke, that's what they've achieved. That's the only stat that's
changed.

Now think of everything else that has changed since 1953. Everything.

Think of how much easier it is to do well financially than it was in 1953. You've
got that computer in front of you. For one thing, you've got access to endless
amounts of information.

If you're going to go now and make money, let's not say selling from the
platform; let's say you've got an item you're going to go sell as a demo guy at
state fairs.

In 1953 to learn how to do that you had to go work for somebody for slave
wages until you learned it. You had to starve while you did it badly or you had to
travel around to state fairs to watch people do it.

YouTube. Everybody that's ever done it is right there on YouTube. Ed McMahon


is on there pitching a Slicer Dicer on the Atlantic Boardwalk, Ron Popeil is on
there; every Ron Popeil infomercial that's ever been done selling stuff is on
there.

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The Amazing Exploding Carwash shit from Mike Levey, Amazing Discoveries is
on there.

You don't have to leave your little chair and you can learn how to do this with
everything.

All this information's there. 1953, how did you buy stock? How did the little guy
buy stock? How did you buy one share of Apple or whatever was Apple… I guess
IBM maybe… In 1953 how do you buy one share for $72? You can't.

Today you don't have to put the money in a wealth account and wait until
there's five grand to invest it. You can actually invest $72 and you can do it
yourself with your computer.
Today you don't
Charles Schwab, open an account for free. Your first
have to put the
50 trades are free for God's sakes. They don't even
money in a wealth
charge you anything. Think of everything that has
changed since 1953 to make this easier.
account and wait
until there's five
Enormously higher percentage of people go to
grand to invest it.
college, than went in 1953. A whole lot of people
stayed on the farm in 1953. A whole lot of people
went right to work in the Goodyear tire plant in 1953. Think of this.

Interstate highway system, think of how much better it is. Air fare in inflation
adjusted dollars is a lot cheaper. If you want to get on an airplane and go sell
something, it's a lot cheaper today. It's cheaper today than it was the first time I
got on an airplane to go sell anything in 1973.

In inflation adjusted dollars, it cost me more than it does a guy today.

Think of all this. It hasn't changed these numbers one lick.

That means what at least 80%, if you want to be kind, or 95% or, if you want to
think wealth, 99% think, believe, say and do about money is wrong.

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It's indefensible. The facts speak for themselves.

The facts even prove that making it easier doesn't change anything.

I mean how much easier could it be?

You know how to knit stuff and you're going to go sell it… When I was a kid for a
couple of years my mother was knitting Barbie clothes and selling them. How do
you sell them? Friends, neighbors and relatives of course, but you've only got so
many of those.

Then you've got to try to get a store to take them on consignment or you've got
to go to the swap meet.

What have you got today? Etsy, set up a website tomorrow. Sell them. eBay, set
up a website tomorrow, sell them. Set up an Amazon store. Sell them. Search
engines so people looking for Barbie clothes can find you.

None of that shit existed, so it's all here now. How much easier could it be?

Back the money truck up to the door? I mean that's about the only way to make
it easier now.

The only way for a guy like me to make money, when I started you had to do it
live. This was the only choice. You got your butt in a car, on a bus or on an
airplane and you went somewhere and somebody either put people in a room
for you or you put people in a room and you got up on stage and sold them stuff.

That's how you made money. Zig didn't have a choice. I didn't have a choice.

That last little webcast we just did for the Ultimate Referral Machine… just to
our list, no affiliates, no cabal, no nothing. One postcard, email, $90 grand.

To sell $90 grand worth of crap, I had to get on an airplane. I had to go sleep in a
motel room. I had to go to the UPS Depot at midnight, dragging a supervisor
with me to find my boxes. I had to get up the next day. I had to go sit and wait

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until whoever was on before me finished and then I had to get on stage and then
I had to pitch. Then I had to get the last flight out.

Now I can drive over to the studio which is 20 minutes from here and I can do it
sitting on a chair with Dave.

Has it improved these statistics? No. it hasn't had any effect on them
whatsoever.

The biggest webcast launch we've done is $200,000. Internal list only again. No
cabal, no affiliates, no nothing. That's two Peter Lowe dates for me. That's
Tuesday and Thursday. Now, four hours in a studio.

Now there's other work, but they do it. I don't have to do it. I show up in the
studio. I don't even have to wear pants. Seriously, I don't have to wear pants. Put
the suit jacket on but leave the jeans on.

Think about this. It hasn't changed these numbers at all and it won't.

We can back the money truck up to the door and dump it and it won't change
it; because, their behavior, their thinking will still be all wrong.

So my first answer to the question is everything. If your question has the words
“most people” in it, then the answer to it is everything different. Everything.

I almost always carry a bunch of money. Hardly anybody carries cash. They
don't have cash. They've got cards. Cash… because, every once in a while you
might want to do something that you still can't do without cash.

I haven't been caught in ages, I got caught last week. I forgot to refill my wallet
out of the drawer. I keep my wallet in the glove compartment of the car and I
forgot to refill it.

I drive all the way to Akron, which sounds worse than it is, but still, for a guy
that doesn't want to go anywhere, this is a big thing. I drive all the way to the
mall to go to get a massage at the Chinese guy’s place in the mall and then I'm

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going to have myself a nice lunch and then I'm going to go to the bookstore and
I'm going to have a good three hours.

I drive all the way down there. There's a thunderstorm by the way. Pouring rain.
There's a moron in front of me at the traffic light texting.

This is not just like transport yourself through the Star Trek device. I had to kill
dragons and shit to get there.

I get there completely forgetting these guys only take cash. I don't need to
remember it because I always have cash… except, for the first time in two years,
I don't have cash.

So now I don't get my massage and I ruined my whole day because, I don't have
cash. Sometimes you can only use cash.
Before they went
Also you feel different if you have cash. Before they
away, we used to
went away, we used to make everybody carry
make everybody
thousand dollar bills.
carry thousand
Now they're collectible items. Right now you can still
dollar bills.
get hundreds. If you can't get them anyplace else,
you can get them at a casino because, that's where criminals launder their
money.

You can get them at a casino. You can take in four $50s and trade them for
hundreds if you want to, they don't give a shit.

So cash. If you didn't have any other reason for doing it. If there was no
metaphysical argument for doing it and there was no practical argument for
doing it, but everybody around you had no cash… that tells you carry cash.

You don't need a reason other than this is what everybody else does not do.

Now we intellectually get this, but so few people practice it.

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I catch smart business people all the time. “What are you doing?” “I'm doing
this.” “Why?” “That's what everybody on our deal is doing now.”

It's the best reason not to do it. 99% of them are either broke or they're going to
be broke. Don't follow them. Don't walk with them.

Don't embrace their behavior; because, they're wrong.

People intellectually will buy into this, but they will not buy into it actually.

Now the other part of the question… if you take “most people” out and you put
in “What have you done that is unique and different from most people who
become wealthy,” the answer is not one damn thing.

I've done the version of the Hansen “chase down the 100 bestselling authors”
my entire life.

I've studied people who got wealthy, try and figure out what the hell they do…
what they think, but more importantly what they do… and especially if I can find
that 8, 10, 12, 20 of them are all doing that... little nuance differences, but they're
all doing that… then that tells you…

The reason I got in the newsletter business in the first place, I'm not some
genius… I just saw that a crap load of wealthy people all had a media. I said,
“Hmm, Hefner's got a media. Disney's got a media. This guy's got a media. This
guy's got a media. Guess you've got to have a media.”

Akron by the way is the birthplace… so the opposite of Hefner is Larry Flynt.
Akron, Ohio is the birthplace of Hustler Magazine. It's one of our claims to fame.

Larry's an interesting guy in many respects. Larry started Hustler as the


antithesis to Playboy. If you've never seen Hustler, you don't want to, but it's the
antithesis of Playboy.

Playboy used to be airbrushed and Hustler light bulb hung on a string, shoot
them in real light. He was paying $50 bucks for the picture, so these are mostly

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strippers and biker girls with tattoos and one foot bent in the wrong direction,
gold tooth. Not pretty.

Larry's original publication was a four-page black and white thing with ugly
naked black and white stripper, biker chic in the middle and some copy on the
front and the back.

They were sold here in Akron out of the first Hustler Club which Larry put in a
really small place. It had one go-go girl, which is depressing by the way for
everybody, but nevertheless…. and it was right downtown between the
Goodyear factory and the Firestone factory.

Larry's deal was, “We cash your paycheck with a 10% bonus.” You brought your
$500 paycheck in and endorsed it over to the Hustler Club. He gave you $550.

Stupak. They'll stay, they'll spend it, all of it and then they'll go to the ATM
machine. That's literally what built Hustler.

The very first thing he did is he got media. It was pretty crappy media, so was
mine early, but I looked at all these people and I said, they all got media. This
one's in the sex business. This one's in the kid toy business. This one's in
corporate B2B.

They’ve all got media. Okay, got to have media. Now how do I do media?

So I haven't done one damn thing different. I’ve just cobbled together what
wealthy people do.

Today we will tackle in many cases some more elaborate and sophisticated stuff
I think.

CONTROL = POWER = WEALTH


The first principle, it kind of piggybacks on discipline, but it goes broader, is that
control equals power, equals wealth.

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A really good question is always how much control do I have over X
and how can I exert more control over X?

You know the guy at all the boxing matches who does “Let's get ready to
rumble”… Michael Buffer.

The licensing revenues from that trademarked phrase so far top $80 million. His
brother runs the company.

They trademarked the phrase. They license it for everything – t-shirts,


merchandise, bobble-head dolls, toothpaste. There's a “Let's Get Ready to
Rumble” toothpaste. It is only sold in Japan. The Japanese people love it.

$80 million in licensing from a phrase – and they are litigious. You say it about
three times, you're getting sued. If you say it, you
owe a royalty. What can we control

The brother says he spends 30% of his time sending and how much
people “cease and desist” letters, suing them and control can we
collecting royalties they should have paid for two or possibly exercise?
three years for using the phrase in one way or
another.

$80 million, control of a phrase.

How many people do you think have a phrase and never really think about
controlling it?

It's a really good question, what can we control and how much control can we
possibly exercise?

CONTROL OF YOURSELF
One of the things we can control is us. A good place to start is a lot better control
over yourself than you've ever imposed before.

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The movie stars started to get rich when they moved out of the studio system
where they were under exclusive contract to one studio and basically paid
wages. The old movie stars… Bogart, that era… they signed with RKO or they
signed with Columbia like a three year contract and they got X dollars a year
and/or X dollars a picture, period, flat.

They made whatever picture they were told to do, good, bad or ugly.

Their wealth all changed when they got control of themselves.

Same thing happened much more recently in the porn industry. Porn actors and
actresses started to get rich when they got control of themselves, because, it was
a studio system up until about 1975.

There are now porn stars doing $10, $20, $30 million dollars a year in personal
compensation. Before, they were in a studio system.

Wrestling changed; Hulk Hogan changed it… much against Vince McMahon's
preference for obvious reasons.

They got control of themselves. They got out of a studio system and they started
to get a piece of everything. The t-shirts, the websites, they got the rights to do
independent websites.

Guys who were under contract before that… as I told you earlier, McMahon
owns the name “The Rock.” My client, he owned the name “The Ultimate
Warrior.” The guy couldn't go use it.

It's like Adam West can't go do a supermarket opening and put a Batman suit on.
He's not allowed to do it. The Lone Ranger, Clayton Moore wasn't allowed to
wear the mask.

All of us can go to the costume shop and buy the mask, but he wasn't allowed to
wear it; because, he was under a contract that restricted him from appearing

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anywhere as the Lone Ranger. Today, whole different system for all these
people.

We can certainly exercise more control over ourselves, the way we conduct
business, the way we position ourselves. We can do all of that.

CONTROL OF PRODUCT
We can exercise control over product. Disney's made
the mistake twice… they made the mistake with We can exercise
Disney stores. They established a model that worked more control over
and then they decided they really didn't want to be our products.
in the retail business and so they licensed it all out
and a mess got made of it.

They had to go in and buy them all back and now Disney runs Disney stores.

They made the mistake the second time with Celebration, the community in
Orlando, which they now admit was a horrible mistake.

They set it up from the very beginning to have control gradually transferred to
homeowners’ association, for Disney to create it and organize it and then
gradually take themselves out of it.

Of course the more they took themselves out of it, the more screwed up it got.

Now it's still better than most communities, but it’s got its problems.

With Golden Oaks, they are not making that mistake. The contract, if you buy
there, specifies that at a bare minimum Disney will completely run the place for
100 years. They ain't giving up nothing.

They will be telling you how high a blade of grass has to be; but the good news
is, no neighbor will have a '56 Plymouth up on jacks in the front yard of his
house across from your $2½ million McMansion. So pros and cons. But control
of product.

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Schultz left Starbucks, had to come back. The main thing that got screwed up in
Starbucks was the product. They had to bring him back.

So we can exercise more control over our products.

CONTROL OF INFORMATION DISSEMINATION


How information is disseminated about us. We can exercise some control there.

It seems to me it would be a very good idea for CEOs and athletes to stay off of
Twitter. This seems to me to be significantly unhelpful to one after another,
after another, after another.

At bare minimum, it would be good if they had some people screening it before
they tweet it.

If you don't control the story being told about you, you probably
won't get a story told that you like.

Now, in today's media environment, nobody can exercise total control, but
obviously some people are much better at this than others.

You can take people in any field and you can Google ten of them, eight of them
are a complete disaster and two of them, not too bad.

You study them, the two are fighting to exercise control over what is said about
them, how their story is told and who it is told by.

One thing I will tell you, having taken a lot of clients through media over the
years, a lot of clients are arrogant about it and they think either that they're
going to be treated well because, they're a “good guy”

That's another point to the “how to stay out of trouble” question I was asked
earlier. Don't assume because, you're a good guy that you're not going to get in
trouble.

Goodness doesn't have a great deal to do with it. Real evil maybe worsens it, but
saintly behavior won't necessarily keep you out of it.

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The same is true with the media. I've had five clients over the years do 60
Minutes. All five of them for no good reason. They had a choice.

Mike Wallace didn't show up in a parking lot in the morning. They actually
asked to do a story. The correct answer to that is, “No thank you.” That's the
correct answer to that.

If you understand what 60 Minutes is, why on earth…?

Now, occasionally somebody pulls it off, I'll grant you and it's softer today than
it was a decade ago, but still, if you want to play the odds and you are really
concerned about controlling your message, this is a place where you don't have
a lot of control.

They shoot four or five hours of stuff. They take it back into post-production and
edit it and you don't get to sit in post.

You are engaged in conversation. You don't have a


Don't assume
prompter. They’ve got a prompter. You don't have a
prompter. You are engaged in four or five hours of because you're a
conversation. good guy that you're

My client brought them for two days, the one guy.


not going to get in
Mike Wallace in your life for two days with a camera trouble.
crew – out on the yacht, out to dinner, in the living
room.

Really, you're that disciplined that you're not going to give him something that
he can take back to post and make you look stupid or evil with? I don't think so.

I’ve met and spent some time with Dan Quayle and I have met Sarah Palin and
I've spent a little time with Sarah Palin. Neither one of them is anywhere near as
dumb as they look. Quayle actually is pretty intelligent, but all you've got to do is
misspell potato once, if the media doesn't like you.

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Now, if they like you, you can think there's 53 states and that we can solve our
energy crisis by properly inflating our tires and everybody is kind of going to go
“Okay.” It's not like you're going to get equal treatment either.

But 60 Minutes, really? We had 60 Minutes come and do the Peter Lowe events.
Peter says, “60 minutes called. They want to come to cover the event. They're
coming on Thursday to Seattle and they're coming next Tuesday…”

I said, “Are you insane? Explain to me how this helps? Where's the benefit to this
and where's the control?”

They come. They're there for two events. In front, backstage, talking to anybody
they want to, filming whatever they film. There's 20 speakers on this program.

They aren't all the smartest pencils in the box. They aren't all the most
disciplined people in the world. Zig is going to say gay people are satanic. He
can't help himself. Now this was a while ago, but today… and he's wrong. But
that's neither here nor there.

Somebody is going to say all poor people are stupid. Boom, there's your sound
bite. No control. Then they take it all to post-production. If you've never done
post-production… for a 28½ minute infomercial, there's about 18 hours of post-
production.

There's a bunch of us in a room with old pizza boxes who grow to hate each
other over time making micro-decisions about words.

We can make you say shit you never said; because, three cameras, we’ve got
cover stuff. I can fix stuff and I can create stuff, so no control.

In the case of Peter Lowe, for whatever reason, it turned out only mediocre. The
basic 60 Minutes take, if you've never seen it, was most of the media we got
which is, “This appears relatively harmless. It's basically taking money from
stupid people, but not taking much.” That's sort of the tone of the coverage.

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Now 60 Minutes for example missed, and I don't know how they missed it in
two days… because, they would have jumped on it if they saw it… they missed
the evangelical Christian call to arms in the middle of the event. They missed
that.

They missed the fact that the whole thing operated as a non-profit evangelical
association because of that 25-minute Christian call to arms optional session,
“What the Bible has to say about your sales career,” in the middle of the event.
Therefore, all the postage is non-profit postage and all the newspaper rates are
non-profit.

They missed all that and they really didn't make a big deal out of the product
sales. Amazing to me.
In this day and age,
It was bad enough, but it wasn't deadly, but my
question is how many people could it have possibly something to
caused to buy tickets? consider is it's pretty
hard to hide
The one they did on my practice management client
was brutal, I mean brutal. anything.

The dental guys just did this, ClearChoice. 20/20 whacked them about six
months ago. It was either 20/20 or PBS. Bill Moyers’ show on PBS. Oh my God,
why anybody would volunteer for this. It's ugly. You can probably find it on
YouTube.

They secret cameraed the sales presentation, the case presentation. It ain’t
pretty, but at least they did it as a secret surveillance. Don't invite them in.

You've got to exercise a lot of control over your story and how it's told.

In this day and age, something to consider, it's pretty hard to hide anything. All
the closets are made out of glass. But even many years ago I made that decision.

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If somebody is going to tell everybody about me having gone through a
bankruptcy, who would I prefer to have tell that story? Me.

I'd rather tell it and have a record of how it's told and actually tell it a lot, rather
than leave it to somebody else to tell it.

So you've got to think about what the ugly stuff is. By the way, it usually does
not get in your way.

There’s an example in the archives collection of an order form I created for a


client that had in big print, not small print, an 8½ x 11 page of disclaimers that
completely told of prison convictions, felonies, FTC investigations, every
horrible thing leading up to this moment.

Before you could buy the course you had to initial every one of the paragraphs
that you had read.

It made no difference whatsoever in conversions. No difference whatsoever.

Everybody in the infomercial world had a crap fit when they started to lean all
these disclaimer rules on us. It made no difference. None, zero, nada.

People dumb enough to think they were watching real television, are still dumb
enough to think they're watching real television, when it says “Paid
Advertisement” on it. “Uh, it looks like TV. It's TV right?”

People who really want to buy this thing. They don't care. Paid advertisement,
not paid advertisement. No effect whatsoever.

Why not tell it? Better you control your message than leave it up to somebody
else.

CONTROL OF DISTRIBUTION CHANNELS


Big one, distribution channels. Here's what happens, for example, if Mark Victor
Hansen doesn't sell little miniature Chicken Soup for the Soul books in all the
crappy dollar stores all across the country.

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Here’s what happens. All books eventually go to remnant.

Chicken Soup for the Soul series has 16,212 titles. Chicken Soup for the Soul for
the Rabid Dog that has Killed a Child Lover's Soul. There's a Chicken Soup for
the Soul book for everything.

Most of them are not really made for bookstore distribution. They're subsidized
by some of the authors. They're marketed into niches, etc.

There's a lot of secrets to that business, some of which are visible, some of
which are not. But a bunch of them die. None of those books live forever.

Whatever is left in the warehouse, the publisher sells to remnant houses, who
put them all in big pallets, mixed book. So you can go to the Book Expo and you
can go to the section where the remnant guys are or you can go to ASD which
sells to the dollar stores and you can buy books by the pallet.

You don't get to pick titles. You don't get to pick


content. Everything is in there. Cookbooks, self-help The books are going
books, business books, fiction. You just buy a pallet.
to wind up in the
You're basically buying it by the pound. Cheap, dollar stores at some
cheap, cheap, cheap. The dollar stores do this. The point anyway.
books are going to wind up in the dollar stores at
some point anyway. The only difference is he's not going to get the money, that's
the only difference.

Who would you rather have control of, what's going on in all the dollar stores
across the country? You or nobody? Me.

So control of distribution, double edged sword. There's what you would like to
have as distribution. There's also what will we have that we can't control?

You can be as mad as you want to in our business and it irritates the crap out of
me. eBay. I hate them. They're a giant criminal enterprise.

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If a pawn shop sells stolen goods, the guy goes to jail. eBay is a giant pawn shop
selling stolen and purloined goods.

A lot of it is intellectual property theft and they don't care about it one whit. You
can get as mad about that as you like, but a crap load of people are going to take
my stuff and they're going to make bad copies of it and they're going to sell it on
eBay.

I know this because of the flow that comes from it. There's both good and bad
flow.

There's people who are like, “I got this thing and it's missing three CDs.” “Well,
where'd you get it?” “eBay.” “Who'd you get it from on eBay?” “I don't know,
Babozabebabakabawoo.” “I've got bad news for you, you're not getting the CDs.”

But I’ve changed my attitude about that over the years; because, every once in a
while you get the guy who comes and says, “I bought this stuff on eBay and I
know I shouldn't have, but I did and now here I am.” Let's look at his customer
record. Oh crap, he spent $20 grand with us.

Am I really going to obsess over the $300 bucks the pirate got on eBay? No, I'm
just going to make sure that we do a better job of putting pathways in the
product that lead people to us.

Some people in our business actually make product specifically to be pirated,


stolen and sold in these environments.

They actually have made a deliberate practice of it. So there's distribution you
want. There's distribution you don't want. But, if you're going to get it, you
might as well try and exercise as much control over it as you possibly can.

By and large who gets rich related to a product, related to a service,


related to intellectual property, has a great deal to do
with who controls the distribution.

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Products like toys manufactured in China, the kids who are knocking these
babies out certainly aren't getting the lion's share of the money. They're getting
a hundredth of one percent of the sale price maybe.

The guy running the factory in China, he's not getting the lion's share of the
money. He's barely squeezing out a little margin; because, these products are
sold in Walmart. Walmart dictates everything, so they squeeze it backwards.

The guy that owns the company, that owns the patents, that created the toys,
he's maybe squeezing out 6%, 7%, 8% margin; because Walmart keeps
squeezing and squeezing and squeezing.

Who gets the money? Walmart.


He can do five
Why? Because, they control the distribution.
hundred million
Even Disney, a ton of money comes through
dollars and he won't
licensing, but the licensing is a tiny little piece of the
money.
be rich.

The big part of the money is in the distribution. I just saw him recently
interviewed… Tony Little has sold over a hundred million dollars of stuff on QVC
and HSN.

He owns none of the customers. He can't sell to any of the customers.

He can't do anything on the back-end without the same split to QVC and HSN
that there is on the front end.

He freely admits that, after selling a hundred million dollars’ worth of stuff, he's
not well-to-do. A hundred million dollars!

How long has Tony Little been at this? A long time. He has yet to figure out
somewhere along the way, “I've got to take some of the money I'm getting and
not buy a house with it, and not buy a car with it, but figure out how to create

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another way to sell stuff to use my skills and talent and capability in a way that
allows me to control distribution and own customers.”

He hadn't figured it out. That's why he will never be rich. He can do five hundred
million dollars and he won't be rich. It won't make any difference.

Because he's creating no equity. Customers get us to that.

CONTROL OF CUSTOMERS
You know my saying, lists have money like cactuses in the desert have water.
Sometimes it's not entirely visible, but it is there.

Control of the customer and maybe more importantly the customer relationship.

Again, if you look at commonalities, you will find that control of the customer
and the customer relationship is often in the hands of the people who have the
most money.

Why did Bezos create Amazon Prime? To lock in


customers. To have members.
Control of the
As soon as they're a member, they are more likely
customer and the
to buy more from the thing they are a member of,
customer
than if they aren't a member of it.
relationship is often
People drive past grocery stores to go to Costco.
in the hands of the
They’ve got a card. They're a member, so control of
people who have the
the customer is extremely important.
most money.
My first question, if I were on Shark Tank, of
everybody and it would nearly be a litmus test… don't tell me about margins and
how many you sold. The first thing I want to know is tell me about your direct
relationship with your customer, how does that work?

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Many years ago in downtown Phoenix, there was a bookstore for sale which I
almost bought… which of course would have been a mistake, but nonetheless…
what queered the deal was no list.

Been there for 23 years. Big downtown bookstore, when downtown bookstores
were big deals. No list.

The guy said, what does that have to do with everything? I said, it has everything
to do with everything. They could not come tomorrow. I'm paying for future
earnings over which I have no control.

What happens if they rip up the street for two years? I have no means of doing
any business with all these customers, but you want me to pay for future
earnings over which I have no control, bad idea.

Dumb people will buy companies that way, but smart people won't.

They look for where the control factors are when they go to buy a company. You
have always got to be thinking:

• How can I get the list?


• How can I grow the list?
• How can I get the contact information?
• How can I get ALL the contact information?

CONTROL OF ORGANIZATION
Sixth, we can exercise control over how we
organize people, places and things.

I don't expect you to be able to see this by the


way, I'm just showing it to you for conceptually.
This is from 1957.

This is what Walt called our Theory of Business.


This is Disney in 1957, not Disney now. Disney in 1957.

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Every one of those lines says something and it hooks to something which hooks
to something else, which hooks to something else.

There's music. There's TV. There's TV commercials. There's business films –


we're in the business film business because we can promote Disney; there’s 16
mm films. There's re-issues. There's the distribution company. There's
publications, books and comic books. There's Walt Disney magazine media.
There's comic strips. They had syndicated comic strips in newspapers, I'm not
sure if there is one now, but it's dying anyway.

There's corner shops. There's of course Disneyland itself. There's merchandise


licensing and here's all these crisscrossed lines. This is pretty sophisticated for
1957.

What does yours look like? Can you do one? Are you that well organized? It's a
relevant question.

CONTROL OF FINANCES
Seven, you can certainly exercise a lot of control over finances. You set prices.
You control margins, how people pay you, when people pay you.

I told you when I first started speaking in 1978, I said, “How do you guys get
paid?” “Well, we speak and then we send them an invoice.”

That was the stupidest thing I'd ever heard. Then I find out everybody is doing
it, which validates it’s stupid.

They kept doing it by the way. Long after I changed. I had this conversation with
Bill Brooks as recently as eight, nine years ago before he passed away. Bill's
doing stuff for big companies.

“Let me get this straight. You are not only waiting to be paid for 30, 60, 90 days
after you do the work for GM, for IBM, for Fortune 500 companies. You are
buying your airfare and hotel and food on your credit card which you have to

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pay in 30 days and you are invoicing them for it, with no profit margin on it.
How does this make any sense?”

“Well, that's the way everybody does it and GM won't pay in advance. IBM won't
pay in advance.”

I said, “IBM paid me in advance. I don't know what your problem is. They paid
me in advance, 50% upfront. Expenses billed 30 days before I get there. Better
be a check. I give a really lousy speech without a check.”

I reach up to my pocket a lot, if I don't feel paper, I skip the jokes. I end early. I
leave. The guy says, “We'll have a check.” I want to be clear that we'll have a
check.
92% of all burglar
We're IBM, we don't do this; we'll have a check, okay
alarms are bought
they get it.
after a home
CONTROL OF VULNERABILITIES
You can organize your finances and exercise control
burglary.
and last you can think about how much control you
are exercising over the vulnerabilities of your business.

A lot of people like none. They choose not to think about them, first of all. They
choose to live in denial of them.

In the burglar alarm and fire alarm business, the stat has gotten worse as the
bad practices to stimulate sales have gone away.

The last burglar alarm industry stats I saw is that 92% of all burglar alarms are
bought after a home burglary, after a home invasion, either of the customer or
an immediately adjacent neighbor.

All of their efforts to sell burglar alarms don't work unless somebody has first
been burgled; because, they all insist it's only going to happen to the other
person.

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The fire alarm stats are even worse. They're like 99% of all fire alarm sales.

That's why when you had sales crews out there… the fire guys didn't have a way
to do it, burglar alarm companies did have a way to do it.

When you sent sales teams into neighborhoods to sell burglar alarms, that
whole business revolved around somebody going in there in the dark of night
three weeks ahead of time, almost every night and leaving liquor bottles and
condoms and girly magazines in the bushes.

Then the sales crew went in. Because, as Cavett said, you can't sell life insurance
unless they see the hearse parked outside their door.

This was the standard operating procedure of the Most people pay no
burglar alarm business. Now that it’s all been attention to the
consolidated by big corporations like ADT, corporate
vulnerability of their
people tend to get squeamish about this sort of thing.
businesses.
When it was a bunch of entrepreneurs this is what
was done. Because, otherwise you couldn't sell them.

It's that simple. Now I can make an argument that it was okay; because, think
about it. Save one life… how willing are you to go scatter around some condoms
and liquor bottles to save a life?

That's how you can think about it if you choose to think about it, but most
people pay no attention to the vulnerability of their businesses.

What can be outlawed? Almost anything by the way and lots of things have
been, at least briefly.

Sometimes you see it coming. Sometimes you don't, but you can think about it.
There are people doing very well on Facebook and, in the short term they
should go get everything they can get from Facebook.

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If you think Facebook is going to operate like Facebook operates now, five
years from now, you are smoking crack.

This is an unregulated environment. No environment stays unregulated, none,


ever. Not in the history of the world. This one won't either.

Multilevel marketing until 1960 something… 1968, 1969… was completely


unregulated. Nobody paid any attention to it. Not the Feds, not AG's. There were
no laws. There were no marketing plan restrictions.

The pyramid laws all were put into effect to put Glenn Turner out of business in
1971, '72, '73 and '74. They didn't exist before that.

It was perfectly legal what he did until they made it illegal and then
retroactively clobbered him. It was an unregulated frontier.

When they descended, they really descended, which often happens; went from
no regulation to 500 regulations and everybody trying to regulate it.

And the cleanest pencils in the box… you can't run a cleaner operation in that
industry than Amway and Shaklee.

They're so clean it's almost impossible to make any money. That's how clean it
is. They both got whacked. They both had to sign FTC consent decrees that have
affected their business ever since. Let alone the bad guys.

The idea that Facebook is just going to merrily go along and you can tap every
kind of privacy you want and you can harvest data, you can download pictures
and use them. It's not going to happen.

So the vulnerabilities are there if you wish to pay attention to them. You want to
control them if you can.

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