Getting Everything You Can Out of All You've Got
21 Ways You Can Out-Think, Out-Perform, and Out-Earn the Competition
By Jay Abraham
St. Martin's Press Copyright © 2000 Jay Abraham
All rights reserved.
Your Flight Plan
An amazing thing, the human brain. Capable of understanding incredibly complex and intricate concepts. Yet at times unable to recognize the obvious and simple.
Some true examples:
Ice cream was invented in 2000 B.C. Yet it was thirty-nine hundred years later before someone figured out the ice-cream cone.
Meat was on the planet before humans. Bread was baked in 2600 B.C. Nevertheless, it took another forty-three hundred years for somebody to put them together and create the sandwich.
And the modern flush toilet was invented in 1775, but it wasn't until 1857 that somebody thought up toilet paper.
Once these obvious connections have been made, they seem so obvious. So evident. We can't believe we didn't see them sooner.
An endless number of these unmade connections exist to this day, especially in the business world. You are surrounded by simple, obvious solutions that can dramatically increase your income, power, influence, and success. The problem is, you just don't see them.
I'm going to show you how to recognize the income- and success-increasing connections that are all around you. I will give you proven strategies and detailed examples of how to leverage those strategies so you can turn them into greater income, respect, power, and success. And when you do, your life will never be the same.
Much of this book is focused on how you can improve your business life and career. But the strategies also work in virtually any area of your life where you need to persuade others to accept your position or ideas.
They show you how to become a leader. A person who holds a position of respect and influence.
They show you how to get what you want. And how to get what you want in a totally ethical and honorable way.
I have included over two hundred specific examples of how people have successfully implemented these strategies into their business lives and careers. Several of these examples are outside the business world. But it is important that when you read these strategies and examples, you focus on how they can be successfully applied to all areas of your life.
You're about to begin a wonderful journey. You're going to learn that you have hidden assets, untapped opportunities, and overlooked possibilities that are not producing maximum results for you. That is going to change.
You'll be shocked at how truly easy this is going to be. Too good to be true? It's not. Let me take just one seemingly huge, complicated, income-increasing problem and show you how truly easy and simple it is to solve.
Did you ever wonder how many ways there are to increase your business? One hundred ways? Two hundred ways? Five hundred ways? It can be intimidating to merely figure out where to start.
I have good news—there are only three ways to increase your business:
1. Increase the number of clients.
2. Increase the average size of the sale per client.
3. Increase the number of times clients return and buy again.
Only three. It's significantly less daunting if you only have to focus on three categories. In fact, it's easy. Let's take a simple example.
Calculate your number of clients.
Figure the average amount they spend on each transaction or sale.
Determine how often they make a purchase in a year.
Let's say you have one thousand clients. They average $100 per transaction or sale. And they make two purchases in a year.
But look what happens if you increase these three numbers by just 10 percent.
A mere 10 percent increase across the board expands your income by 33.1 percent.
A 25 percent increase in these categories nearly doubles your income to $390,625. Very simple. But the results can be overwhelming. Focusing on this simple formula is just one small way people easily do increase their incomes or grow their businesses by 100 percent, 200 percent, or more.
But my simple geometric growth formula works just as well on nonfinancial goals. My good friend, a famous peak performance coach, used a version of it to propel the Los Angeles Kings hockey team to a stunning 9–1 victory over their competitors. How'd he do it? He got the Kings players to break down each key element of the game into an identifiable process. They then rated on a scale of 1–10 based on how they performed each successive period. At the break the coach would target two or three different processes like power plays and challenge the player to improve his rating performance that next quarter. On the chalkboard he demonstrated to them how much-improved their performance efficiency among two or three existing points in enough different categories produced exponential compounded overall impact. Once the Kings realized how to use the power of geometry to maximum competitive advantage, they went wild with it and trounced the competition.
So you see, it works for business, sports, all areas of your life, when you apply it.
Let's get a little more specific. Here are a few examples of how various companies have increased their numbers in these three vital categories.
How to Increase Your Number of Clients
I have a client whose income curve was stagnant. It doesn't matter what they sold. Pretend it's your product or service. This company had a compensation program that paid the salespeople 10 percent of the profit. So, if the company made a $1,000 profit on a sale, the salesperson would get $100 and the company would get $900.
I had them calculate:
What the average new client is worth to them in dollars each time they buy
How many times that client will buy from them each year
How many years the average client will be with them
It turned out the first sale, on average, resulted in about a $200 profit for the company. Of that, $20 went to the salesman or saleswoman, $180 to the company. On average, the client bought five times a year for three years. So basically, each time that company got a new client, they were receiving $3,000 in cumulative profits.
My solution: Instead of giving the salespeople 10 percent of the profit on a sale to a new, firsttime client, give them 100 percent of the profit on the first sale.
The company management's response: "You're insane!"
I smiled pleasantly and went on to explain that as long as their salespeople maintain sales from existing clients at past levels or above, give them 100 percent of the profit on the first sale for every new client they bring in. They'll be ten times more motivated to sell new clients. And every time they bring in a new client, the salesperson makes an additional $200, but the company makes an additional $2,800.
The company implemented the plan and sales tripled in nine months.
... and they said they were sorry for calling me insane.
How to Increase the Size of the Sale per Client
General Motors, Honda, Ford, etc., will sell you a new car for $24,995. Have you ever paid just the advertised price? Or do you buy a few extra items, like a radio, air-conditioning, security system, sunroof, warranty package, or financing?
Despite our good intentions, when we go out to dinner many of us up the value of our transaction when the waiter shows us the wine list, and later that damned dessert tray.
How to Increase the Number of Sales per Client
Stockbrokers offer occasional IPOs to select clients.
Clothing stores, auction houses, jewelry stores, and others hold private "by invitation only" sales events for preferred clients.
Airlines offer frequent-flyer miles.
Miles Laboratories published a small cookbook filled exclusively with hot and spicy recipes, and they gave it away for free. Why? Miles Laboratories is the maker of Alka-Seltzer.
These aren't just random, unrelated business-increasing anecdotes. Each example represents a well-thought-out, documented, income-increasing principle or leveraging strategy. And you are about to learn them all.
But I'm Not in Sales and Don't Have Clients
You might be thinking, "My business responsibilities don't include clients and selling. I'm in the accounting/human resources/quality-control/MIS/production department."
Think again. The fact is, everyone is in sales. Whatever area you work in, you do have "clients" and you do need to "sell." They are frequently referred to as internal clients.
Your internal client might be the head of your department, and you need to sell him or her on your project, your proposal, your promotion, your perspective, your value, or your raise. Your clients might be the people who work under you, and you need to sell them on giving you their best, focused, thoughtful work. Your clients might be people in other departments who could aid you in your area of responsibility. Or vendors, other complementary companies, or future employers.
When you read the phrase "selling your product or service," don't just think in terms of the product or service your company sells, but also your individual and intangible personal product or service—you. And understand that you need to sell you and your ideas in order to advance your career, gain more respect, and increase your success, influence, and income.
And these strategies can be applied to areas not considered traditional business activities. For instance, if you're a teacher and you need to persuade the principal or school board to accept your proposal or plan, these strategies apply.
These strategies can be used to increase the success in your personal life. If you work with charity groups, community organizations, or service clubs, you frequently need to convince others that your approach, program, or solution is the correct one and should be implemented. These strategies will help you make that "sale." They will enable you to reach your persuasion or selling goals in many areas of your life. You will gain confidence by knowing the best and most effective ways to cause people to follow your lead.
These strategies are designed to raise you above your competition no matter who your competition is. If you work for a corporation, you have your company's competition—another corporation. But you also have your personal competition—the person in the office down the hall whom you are competing against for the next big promotion. Or the guy who just sent his resume in to Personnel and wants your job.
Recognition, Respect, and a Big Office
Understanding and applying the strategies you are about to learn will lead to increased company revenues and increased personal success and income for you.
But there will also be other rewards along the way.
Realize this hard fact: The people above you (bosses, management, and organization leaders) want one thing most of all—they want solutions to problems. Solutions that make them look good and help them achieve their goals. They want the people who report to them to be problem solvers. These strategies will give you those solutions and turn you into a problem solver. Employers will kill for problem solvers.
A good idea is a good idea no matter where it comes from. And when you come up with that good idea you will be rewarded, perhaps not with an immediate increase in income, but with greater recognition, respect, more influence, a promotion, a title, or a larger office. All of which lead to ... increased income.
The Universal Solutions
Can these income-increasing strategies and principles really apply to all industries, all people, and virtually all situations? Absolutely.
Let me tell you about two people, each working in the same "industry." But only one of the two has discovered how to multiply and maximize his talents. A true, but very extreme, example.
Two men were mugged. Neither one was harmed.
Mugger number one took the man's wallet and all his cash—$85.
Mugger number two had a different approach toward his "business." Mugger number two took the other man's wallet and cash, $70, plus his watch and his Princeton class ring. The watch and ring were not expensive and had no real street value.
Ordinarily, that would be the end of the story.
But, two days later, man number two walks out of his New York City apartment on his way to the office. He hears someone calling his name. He turns, and there is the man who mugged him, smiling and not at all threatening.
Mugger number two asks the man if he would like his watch and Princeton ring back. As both items held great sentimental value to him, he said yes. The mugger offered to sell them back for $500. The man only had $90 with him. The mugger accepted the $90, but instead of returning the watch and ring, he gave the man a receipt from a pawnshop. Later that day the man went to the pawnshop and paid $80 to reclaim his watch and ring.
Mugger number one made $85 cash.
Mugger number two, applying simple income-increasing strategies and uncovering hidden assets, opportunities, and possibilities, made $70 on the mugging, $60 by pawning the watch and ring, and $90 by selling the pawn ticket to my friend. Total income: $220.
Yes, the income-increasing strategies you are about to learn can be used by all people in any industry.
(Mugger number two was never a client of mine. And I do not suggest that anyone go into this line of work. But whatever field you're in, at least get all you can out of it.)
Avoid the Costly Learning Curve
The philosophy of this book allows you to avoid the costly learning curve in almost everything you do. And that saves you time and money. It enables you to run rings around all of your competitors before they ever figure out what you did to them. It virtually guarantees you greater success and multiplied profits from every business-building step you ever take.
I'm referring to the process of borrowing success practices from other industries and applying them to yours.
Most people I meet have spent virtually their entire life in one basic business or industry. Maybe you've done that, too. But when you spend all your life in one industry, all you know well are the common success practices of just your industry. You only understand how people in your field market, sell, advertise, or promote. And almost everyone in your industry probably markets, sells, advertises, and persuades pretty much the same way as everyone else.
Industrial manufacturers primarily use a field sales force.
Retailers basically just put ads in newspapers and the Yellow Pages.
Stockbrokers do virtually all their business by telephone.
Doctors, dentists, and lawyers rely almost exclusively on referrals.
And so on, and so on, and so on.
When you limit your business to doing things the same way every other competitor of yours does, you can only produce modest, incremental gains—at best. At worst, you could easily lose ground.
By helping you study and identify the fundamental principles that drive the successes in hundreds of other industries, you'll be able to pick and choose the most powerful, effective, stateof-the-art, breakthrough approaches to introduce to your industry. An approach that's as common as dirt in one industry can have the power of an atomic bomb in an unrelated industry. I'll show you how to adapt those concepts to your own specific situation. And since you'll probably be one of the few competitors, or the only competitor, in your field using these breakthrough techniques, your results should multiply immediately. With little effort on your part, we should be able to engineer stunning advances for your business, career, and life, and leave everyone else in your dust.
Where Do These Strategies Come From?
Here are some examples where people took strategies from other industries.
Federal Express applied the banking industry's method of clearing checks overnight to the overnight delivery of packages. Banks send all checks to a central processing point, then out to the appropriate branch. FedEx adapted the hub-and-spoke concept where every package went to a central location (Memphis, Tennessee) and then was flown to its final destination.
A man named George Thomas was searching for an effective way for people to apply deodorant. He was very frustrated in his research for a solution until he realized he was holding the answer right in his hand. George borrowed the concept of the ballpoint pen and created roll-on deodorant.
Dave Liniger, founder of RE/MAX real estate, grew his company to a billion dollars in sales by using the "100 percent solution," which lets salespeople keep 100 percent of their commissions while charging them a monthly fee for office facilities and equipment. His agents were making so much money, they rarely left. (Continues...)
Excerpted from Getting Everything You Can Out of All You've Got by Jay Abraham. Copyright © 2000 Jay Abraham. Excerpted by permission of St. Martin's Press.
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.