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Perry Marshalls 80/20 Seminar for Direct Marketing

80/20 is

Examples of 80/20 in Action

Biggest US Counties

Natural Gas Usage

Country Populations

Wealth in the U.S.

Wealth in the U.S. (Contd)

2001: Top 1% of households owned 33.4% of all privately held wealth Next 19% (managerial, professional, and small business) had 51% 20% of the people owned 84% Leaving only 16% of the wealth for the bottom 80% (wage and salary workers). Financial wealth: Top 1% of households had 39.7%.
http://sociology.ucsc.edu/whorulesamerica/power/wealth.html

Product Defects

Product Defects (contd)

Top Food & Drug Companies

Top Pharmaceutical Companies

Top Electronics Companies

Show of Hands
Model Trains Horses TVs Children Domain Names Customers Trips to Chiropractor in last 12 mos

80/20 is Chaos 80/20 is Fractal

Infinite Layers and Dimensions xnew = xold2 + c Infinite Fractal Zoom

Scalability in Nature

Scalability in Nature

Scalability in Nature

Scalability in Man-Made Things

Scalability in Man-Made Things

Scalability in Man-Made Things

80/20: From Rule of Thumb to Business Model

X-Ray Vision: Predicting the Future

Howies Katrina Relief Teleseminar Sheetrock - $25: Call + MP3 Paint A Room - $50: Call + MP3 + PDF Hang A Door - $100: Call + MP3 + PDF + Private Hot Seat Call Tile A Roof - $500: Call + MP3 + PDF + Private Hot Seat Call + Private Consult Fly To New Orleans - $100: Call + MP3 + PDF + Private Hot Seat Call + Private Consult + Live 1Day Seminar with Howie and Ken

Predicted vs. Actual

When I Return
Ill show you the Skew Curve and youll discover how to use it

Dr. Speedselling

John Paul Mendocha

The Bell Curve vs. The Skew Curve

Bell Curve: What Most People Do (Focus is Average-ness) Skew Curve: What Gets Done and Who Does It (Focus is Results)

The Skew Curve X-Ray Vision Tool

Elements of the Skew Curve

Infinite Scalability The left side The right side Median Mean

Elements of the Skew Curve (Continued)

Addition vs. Multiplication - 10X Multiplier Thinking Rule of Thumb: 1/5 the people will spend 4X as much 5X the people will spend 1/4 as much

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Dimensions of Customer Behavior That Obey The Skew Curve

R, F, M Likelihood to Take:
Upsells, Cross Sells Continuity Programs Which products they buy Which personalities they like Good Old Boy Clubs, Cartels and Jerry Meadows

Behaviors that follow the Skew Curve (Continued)

Customer service problems Spam complaints Returns & Refunds Email boxes Emails Opened Links clicked on Pages visited on your website

A 2nd look at the Katrina Promotion

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Customer & Prospect Lists

A list is by definition the right-most segment of the skew curve Compiled lists vs. Response lists Ascension Descension Retention Any Action: Drawing a Dotted Line

Ascension
Detailed Explanation Slow Fast Multiple Paths

Building The Maze

Spam filter strategy Auto adjusting content to responsiveness Good enough vs. Substantial improvement possible

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80/20 Philosophy
New Bag of Tricks Treadmill Well-Rounded vs. Sharp Robert Clark story Sales funnels should require people to jump through hoops People from the UK Immigrants

Additive Leverage: 16 + 16 + 16
Expanding Universe Theory
1. Google AdWords 2. Search Engine Optimization 3. Other PPC's like Yahoo and Business.com etc etc. 4. Email promotions 5. Affiliates 6. Press Releases 7. Direct Mail 8. Print Advertising

Multiplied Leverage: 16 x 16 x 16
Series of filters Cascading Relational Bigger transactions, more transactions, more often Unlimited Traffic Technique

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Visualizing High Leverage in a Complex Business

Tiny Number of Factors That Swing Response

Domain Names - John Wetherley story Bobsledder Melissa Murphy:
CrazyforBargains.com/Pajamas 2.28% [original] Fun-Pajamas.com 2.16% FunSleepWearShop.com 1.14% Fun-Sleepwear-Shop.com 3.54%

Tiny # of Factors (Continued)

Which keywords bring buyers Small number of landing pages (maybe 1!) Pie chart of desires (Livingston Handout) AdWords market: Rank beginner vs DMer vs. Corporate $ First 4 Seconds of a landing page First 1 Second: BLINK

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The Quest for ZERO

Person Zero Offer Zero Nirvana Utopia Superman

Offers and Copy

Elements of a Guarantee Sell Results, Not Procedures Fine Print Bobsled Run:
If you're accepted as a team member in my 12 week "Bobsled Run" and if you complete the homework assignments, then you'll recoup your tuition by May 2008 (through AdWords cost savings and increased sales), and you will make at least $25K more next year than you would have without my help, or your money back.

Whats Missing in B2B Distributing Risk

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Ballsy Guarantees: ASEPCO

Lifetime Free Replacement Of Any ASEPCO Tank Valve, No Matter Who Breaks It! Sometimes a tank is dropped sometimes a valve gets hit by a forklift. No matter how a valve is broken, or who's at fault, we will replace it free! No arguments. No excuses. Just a free replacement valve as fast as we can make it. Top-quality Product Or Its Free!

ASEPCO Continued
If your ASEPCO valve contains a manufacturing defect we will Fix or Replace Your Valve -- and We Will Not Bill You! Performance As Promised Or We Pay You! If it is proven that a properly assembled ASEPCO valve is not CIP/SIP in use: We'll buy back our valve for a full refund We'll buy you the replacement valve of your choice AND we will pay the cost of replacing it in your ASME tank! Note: We figure this is a safe bet, since we have not had a claim of contamination in our entire history. You can depend on ASEPCO products. And you can depend on US.

Leverage Points in Copy

Sales letter: 1. Offer 2. Price 3. Headline 4. Sub-head 5. Opening Paragraph 6. FAQ style PS

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Leverage Points for Physical Products

Photographs Delivery Details Shipping Cost Widgets

Fractal Elements in Copy

Internal Repetition Stories within stories Testimonials with recurring themes Scanning a sales letter: Dual Readership Path Thin slicing a book

Fractal Elements in Copy (Continued)

Highlighter Technique Plucking Elements of Sales Copy for Ads

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2 sentences that create the psychic connection

The Principle of 120

120 characters 120 words 120 sentences 120 paragraphs 120 pages 120 chapters 120 books
Long Copy vs. Short Copy?

DM Elements that Obey Skew Curve

Direct mail: Size, responsiveness, nixies Adwords, keyword lists Renting mailing lists

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Dividing Up Your Time

Hand-Written vs. Automated Manual Labor vs. Marketing on Autopilot

Why Many Flounder: InTech vs. Kennedy Newsletter

Why the info business is incestuous Why all industries are incestuous Like sells like Stories sell stories Desire for community and agreement Desire for Dissent and Antithesis

Positioning Strategies
Published author immediate top 20% status Turck story Publicity is the bottom 20% but Rarely works without Magazines: Treat editors like a top 10 customer

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Books
Way to blanket the 80% Every book in the bookstore represents a warehouse (small or big) Novels Health Pets Business Sports Enquirer Back End

Equal Time, Equal Results, Unequal Focus

If you divide your business into 5 equal parts 1. 0-80 (80%) four fifths 2. 80-97.5 (17.5%) one sixth 3. 97.5-99.9 (2.4%) one in forty 4. 99.9-99.999 (0.1%) one in a thousand 5. 99.999-100 (0.001%) one in a hundred thousand

The 5X Principle for Sales Funnels

Search Ad Landing Page Signup Action Sale 1 Sale 2 Continuity

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80/20 Market Research

Choosing a Profitable Market

Chronic Addictive Some peculiar, annoying barrier to entry Industrial buying cycle A sharp lever: Chipping in Unscratchable itches Irrational fantasies

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Characteristics of Profitable Markets

Speaker cables and bull semen Superstition Idiosyncrasies of Hyper-Responsive Customers Sales people Golfers Martial Arts Guys The 80% opt-in page

Signs of Profitable Markets (contd)

Dentists Chiropractors Insecurities Matching personalities in an info biz Mutually Attracting Wounds Existence of a Devil Rock band bootleg theory

Statistics from USA Today

Approval rating of the President How politicians exploit 80/20 Communism Socialism Alchemy The Average American Reads Readers are leaders

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Skew Curve applied to Market Share Cost

0 to 1% easy 1 to 10% hard 10 to 50% hard 50% to 80% easy

Firing Customers & Employees

Jack Welch Heckler story Story from this seminar Those who bite the hand that feeds them Abusers

Google and Web Traffic

Top 3% in AdWords get 50% of exposure Googles job: Enforce the 80/20 principle process of ELIMINATION A systematic difference in quality of marketing is the secret In a market where vendors break even, cost of click matches left side of skew curve

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Google & Web Traffic (Contd)

Traffic: Most people think its 80% of the battle, its really 20% The traffic conversion anvil, the 95/5 rule, and the Unlimited Traffic Technique Peel and Stick
www.perrymarshall.com/adwords/idealadgroup.htm

5% money making 5% money losing (Bryan)

Google and Web Traffic

Google, long-tail keywords, and distance formula Long tail: right way vs. wrong way to use it

From the Fringes to the Jet Stream

Prepare to be Shocked You may be younger than you think. Take the RealAge test and nd out. www.RealAge.com

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The Jet Stream

What Type of Mom You Are? www.AreYouASlackerMom.com - 15 fun question that will tell you what type of Parent you are!

The Jet Stream

Do You Understand Men? Learn "Secret Reason" Why You're Attracted To Jerks & Players TakeBackYourHeart.com

The Jet Stream

Photos: That's in my Gut? This site guarantees to remove really gross stuff from your gut. www.BlessedHerbs.com

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The Jet Stream

Teen Abandons Baby Teen gives away baby at bus stop Responsible? Read & share your view www.ResponsibilityProject.com

Why its impossible for Hillary to Win

Industries that will Hugely Profit if Hillary Gets Elected Thin Slicing and Blink and 80/20

The Amazon 3-Star Theory of Publicity & Controversy

Democrats / Republicans Atheists / Christians (not agnostics) Creation / Evolution Pro Life / Pro Choice

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Human institutions notions of equality

Tocqueville Taxes Public health care Public education

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