01-Workbook 'The Six Magic Steps'

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How to Win in
Online Direct
Response
WORKBOOK: The Six Magic Steps to
Lasting Success Online

With Frank Kern


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HOW TO WIN IN ONLINE DIRECT RESPONSE PAGE 2

How to Win in Online Direct Response: The Six Magic Steps

I've titled this training, "How to Win in Online Direct Response," which I
know isn't a fancy or flashy title.

But, at the end of the day, how to win in online direct response doesn't actually
have anything to do with being fancy or flashy.

Instead there are six magic steps to lasting success online. I'm going to walk
you through the six individually and then we'll go through them in detail.

1. Embrace the Gospel According to Kern. Can we get more narcissistic


than that? But as you're going to see here in a minute, this is a very, very
important step.
2. Stop Thinking Like a Marketer. I'll explain what that means in a minute
but it might be the single most important step.
3. Understand Reality.
4. Know Your Real Numbers.
5. Decide, Commit, Obsess.
6. Expand Your Thinking and Your Skills.

This is about the ingredients you must have to succeed specifically in the art
and science of selling things online.

© 2016 Frank Kern


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HOW TO WIN IN ONLINE DIRECT RESPONSE PAGE 3

Step #1: Embrace the Gospel According to Kern

I really believe that this is the core fundamental key to all success… the
most predictable and efficient way to generate wealth is to turn advertising
into profit consistently.

I know there's other


stuff you could do… invest
in real estate, invest in the
stock market, have
affiliates mail your stuff.
But that's cash flow.

Here's why this is true:

Reason #1: Advertising is Never Going to Go Away.

Imagine a nuclear apocalypse has occurred. Mankind has been reduced to a


thousand people and we're just starting to get back on our feet. You know there's
going to be somebody wanting to put ads for their bison burgers or whatever in
front of the other 999 people.

We will never stop having the ability to advertise. It's not going to go away;
it's only going to get better; we’re going to have more and more opportunities.

Reason #2: It’s a Transferable Skill.

If you have the ability to turn advertising into profit you're set for life.

© 2016 Frank Kern


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HOW TO WIN IN ONLINE DIRECT RESPONSE PAGE 4

Here's why: if a product stops selling, the same principles could be applied to
a new offer that can be scaled quickly in an entirely different area. Let me give
you an example in reason number three.

Reason #3: It Can Increase the Value of Existing Assets.

Let's say that you've got an internet business and it's doing great and
everything's cool. Then you want to take the same advertising skills and use those
advertising skills to increase the value of an existing asset.

For example, if you own an apartment complex you can raise the rents and
eliminate vacancy by deploying effective advertising.

You can literally change the value of that asset through advertising.

Reason #4: It Funds Its Own Growth Without Debt.

Advertising when done properly funds its own growth without debt. That
means, if you can put $1 into advertising today and get $1 back out today, then
every other $1 you make is pure profit. In some cases, you can put $1 in today and
get $1.50 back out today.

Reason #5: The MATH.

The math is what I want to illustrate for you in a minute, but first let me give
you step two.

© 2016 Frank Kern


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HOW TO WIN IN ONLINE DIRECT RESPONSE PAGE 5

Step #2: Stop Thinking Like an Internet Marketer and Start


Thinking Like a Billionaire

Next step is to stop thinking like an internet marketer and start thinking
like a billionaire.

That may be a weird thing to say, because a lot of people reading this identify
as internet marketers. But internet marketers are immensely popular nowhere.
Everyone else thinks we're all terrible people and we kind of deserve it. We have
brought it on ourselves.

The term typically


means someone who uses
the internet to make short
term money with no long
term plan for
sustainability. I know
that's probably not you, but that's what that term has come to mean.

If you think about all the stuff you see promoted and talked about in the
“internet marketing” community, 99% of it is about some sort of an easy button.

Internet marketers have literally celebrated doing as little as possible and


contributing as little value as we possibly can to success.

Finally, internet marketers typically think in terms of promotions and


launches.

© 2016 Frank Kern


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HOW TO WIN IN ONLINE DIRECT RESPONSE PAGE 6

Granted I have probably beaten up the stereotypical internet marketer a little


more than necessary in this illustration, but I wanted to drive the point home.

The internet 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 an easy
button. They think about
multiplying money
through leveraging
assets.

Check out these two


fellows. I went to this
website called WiseBread.com to look at who the most successful investors were
and who the biggest billionaire folks were. According to that website Warren
Buffet grows his stock and his revenue and stuff by about 20% annually.

Another one, Carl Icahn, grows his stuff by around 31% annually. That means
he sticks $1 in, and at the end of the year he's getting $1.31 back.

They are multiplying money by leveraging assets. In this case, those assets are
publicly traded companies.

© 2016 Frank Kern


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HOW TO WIN IN ONLINE DIRECT RESPONSE PAGE 7

Thinking Like Them


In terms of our business, I want you to think like them.

This is a screenshot from my Facebook Ads account. It's showing a random


month, March 1st through March 31st 2016. You might not be able to read all the
small print but the total shows I spent $28,583.

That's not a
particularly large fortune
but let's have a look at this.

What you see below is


a screenshot from within
Infusionsoft, where I'm
tracking all of these campaigns by lead source.

In Facebook I was
advertising multiple
campaigns for products
such as my Info Business
Blueprint and Ultimate
Webinar Blueprint. The
revenue is $80,164.

Overall picture:

Revenue: $80,164

Ad spend: $28,583

Net after Advertising: $51,581

© 2016 Frank Kern


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HOW TO WIN IN ONLINE DIRECT RESPONSE PAGE 8

I put $28,000 in, I got $80,000 back, my net was $51,581.

That is a 180.46% return on investment in 30 days.

Warren Buffet and Carl Icahn would put $1 in and get $1.20 or $1.31 out,
respectively, and that would take a year. I just got this return on investment in 30
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 is pretty cool.

As a matter of fact, if we were able to consistently get that same return every
month, the annual return would be 2,232% per year.

Here's what I want to tell you, this is attainable. It is attainable, but notice I'm
not telling you it's easy. It's difficult, but it's attainable.

Now let me ask you a question.

Would you buy this little house for $4.06?

Maybe yes, maybe no.

But would you buy this house for $4.06 if you could
rent it out for $11.40 this month?

Probably you'd be like, "Yeah dude, of course I'd buy the house for $4.06
because I'm going to get more than that back this month."

 That house is an asset


 You bought it for $4.06
 You rented it for a month for $11.40
 Your profit is $7.34

© 2016 Frank Kern


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HOW TO WIN IN ONLINE DIRECT RESPONSE PAGE 9

The cool thing is, now you own the house free and clear. Even if you rent it
next month for just $1, you're still making a profit. In fact, that entire dollar is
profit.

So, why am I talking about a $4 house?

In the campaign, I just showed you:

 I invested $28,582.90
 It generated 7,030 opt-ins to my list
 Each opt-in cost me $4.06 each – just like that little rental property
 Each opt-in for that one-month period produced $11.40 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 those emails 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 high stake style upward growth curve.

By the way, it's not all roses. The downside is I can't really sell that list and
that list has a shelf life. But still it's really good, especially if I can continue to do
this over and over and over again.

Cash Producing Assets


What we're really doing in this example is I'm creating and I'm leveraging cash
producing assets:

© 2016 Frank Kern


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 Cash Producing Asset #1 – Product and Marketing System: This is


the thing I'm selling… the product… 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 online than your typical internet marketing mindset.

My job is to help you create as many of these cash producing assets as


humanly possible in your business, and to do that in a way that's systematic and
formulaic and process driven so it won't be overwhelming.

But I cannot help you do that until I get you to understand reality, and that's
step number three.

© 2016 Frank Kern


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HOW TO WIN IN ONLINE DIRECT RESPONSE PAGE 11

Step #3: Accept Reality

The third step is to accept reality and there are four parts to that.

1. This is not easy: If I wanted to use this metaphor of the rental house to tell
a story to get you to buy something and tell you how easy it is, I could certainly
make that sale. But the fact is, this isn't easy. It's a pain in the ass. It's always going
to be a pain in the ass, even if you have a system that's creating revenue passively.
Eventually something is going to break, you're going to have to fix it.

2. It almost never works as planned at first: When you do this stuff, even if
you're a seasoned veteran like me, something's always going to go wrong,
especially at first. Usually you've got to fix something, you've got to tinker with it
and tweak it. It's normal.

If you're caught up in
the internet marketing
hype, then you're going to
quit at the first sign of
trouble. I want you to
know there's going to be trouble, but it’s not going to be that bad and you're going
to be able to overcome it.

3. This takes risk: So much stuff in “internet marketing” is, "Finally a risk-
free way to get guaranteed revenue with absolutely no work," that we are
somehow blinded to the fact that all business entails risk, especially advertising.

You could run an ad and no one might buy. It happens all the time. It happens
to me all the time.

© 2016 Frank Kern


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HOW TO WIN IN ONLINE DIRECT RESPONSE PAGE 12

But you know what protects you? You don't spend a lot of money. You don't
want to bet the farm ever. I usually start out spending $20 or $30 a day on a
campaign and watch it for a couple of days.

If it doesn't work I'm only out a little bit of money and I haven't risked too
much. But nonetheless it still takes risk.

Embrace the risk, manage it and reap the rewards that I'm showing you.

4. You've always got to be messing with it: You've always got to be


tweaking it. Eventually something's going to break. You're going to change some
ad copy. Something's going to happen.

As long as you're selling things online you're always going to be tweaking


things, and that's okay.

Why Am I Telling You This?


The answer to why I’m telling you how hard this is going to be lies within
these folks from the United States army. They are Rangers in a company called
Dog Company. It’s a shot
of them storming the
beach on D-Day.

Imagine that these


folks were recruited into
the military by someone
at the recruiting office
saying, "US Army Rangers, anyone can do it."

What do you think would have happened when they were getting shot at
here? They'd all be dead.
© 2016 Frank Kern
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HOW TO WIN IN ONLINE DIRECT RESPONSE PAGE 13

We would probably have had a completely different outcome in United States


history.

What if they were like, "I'm going to get you to join the Army Rangers because
you're going to learn a quick and easy way to win in combat." Of course not.

"No training? No ammo? No problem." What do you think would happen if


those folks would have heard that? They'd be dead. It would have never
happened.

What do you think would happen if they didn't understand that the mission
was going to be dangerous and difficult and they weren't prepared for it?

The whole reason I'm telling you this is to have you mentally prepared for the
inevitable problem that's really not that bad but, if you're not prepared for it, it
will freak you out.

These folks from Dog Company missed the landing zone by miles. There was
all kinds of fog on D-Day. They don't know where they are. They find themselves
miles away from their landing zone, separated from everybody else, miles into
enemy territory.

What do you think happened? Do you think they were like, "Dang Sarge. We
missed the drop zone by miles and we're surrounded by the SS. Let's just quit and
go home."

What do you think our country would be like if those gentlemen would have
said that? I'm pretty sure it would have been a totally different country.

This is funny… when I was doing my research for this, I Googled “Dog
Company” and I found a picture of a band called Dog Company.

© 2016 Frank Kern


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HOW TO WIN IN ONLINE DIRECT RESPONSE PAGE 14

My question to you is, as you go into this journey… that you might already be
on, you might be a seasoned veteran… as you go into this business and you really
commit yourself to it, which Dog Company are you going to be a member of?

Because the choice is yours right now, and I'm telling you, if you're going to
join the band you're dead. Your business isn't going to work.

Understand reality. Understand you're going to have challenges. Understand


this takes risks. Understand this is not easy. Finally understand it's worth it.

Was it worth it for these gentlemen to scale that wall? Yeah, it was worth it.
Their wives and children were not murdered by the enemy as they invaded our
country. Of course it was worth it. You've got to get in touch with what is worth
it to you.

Here's the thing, I built this up to be really hard and horrible. Fact is, now that
we have that established clearly, the boogey man ain't so bad. No one's trying to
kill us.

I’ll show you what can go wrong in your business and that will make it where
it's not so scary. Because I know I might have freaked you out a little bit here.
We're going to get positive in a minute but I want to prepare you. I want you to
be tough so you can make it through all of this stuff we're going to do together.

There's really a few little components to our business:

 We've got traffic


 We've got opt-ins. You're sending traffic usually to an opt-in page
 Then you have engagement, that means are they reading your emails,
clicking on your emails?
 Then you've got conversion, are they buying your stuff?
© 2016 Frank Kern
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HOW TO WIN IN ONLINE DIRECT RESPONSE PAGE 15

These are really the only four areas where something can go wrong. Unlike
Dog Company, we're not
going to step on a
landmine and get killed.

No, the worst that's


going to happen to us is, "Hey, we might not be getting any traffic." Guess what?
If we're running ads and we're not getting any traffic, we're not spending a lot of
money anyway so it's not that bad.

You know how to fix it, change the copy. Pretty simple, we're typing, not too
bad. Typing and talking, a lot easier than scaling a cliff.

If they're not opting in, that's pretty easy to fix. We change the copy. We're
typing, not so bad. Pretty simple.

Engagement, are they reading our emails or not? If they're not, we'll know it
immediately. We know how to fix it.

Finally, conversion, they're going to your page but they're not buying. We
change the copy, we're typing, or we're talking on a video. It's simple.

The cure of any of the stuff… and one of these will definitely go wrong… is
readily, doable, and it's easy to implement.

I don't want to freak you too bad. I just want you to know going into all of this,
one of these four things is going to go wrong.

Half of getting really rich on the internet is knowing which one it is and
knowing how to fix it. That's what we're going to do together.

© 2016 Frank Kern


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HOW TO WIN IN ONLINE DIRECT RESPONSE PAGE 16

Step #4: Know Your Real Numbers

Let's say you want to make $1 million a month; if you want to actually
get there you've got to know the real number that it takes to get there.

For example:

$1 million per month = $12 million per year = $32,876.71 per day

Let me ask you point blank right now:

Do you know how much you need to earn per day


in order to hit your income goals?

Do you have income goals? If not, you need to get them and you have to know
the real numbers.

At the current rate of return, if my ads continue to get the return rate that I
just showed you in the earlier example from that campaign:

 I'm going to spend $18,218.28 per day on ads.


 After merchant fees and maybe a 10% refund rate, our gross sales total
is going to be $28,602.73.
 Subtract my ad cost, the net profit before overhead is $10,384.45 per
day.
 That is $3,790,324.20 per year.
 If we subtract miscellaneous expenses, like staff and stuff like that, my
annual expense in that regard is going to be around $465,000
 Net profit in this scenario would be $3,325,324.20.

© 2016 Frank Kern


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HOW TO WIN IN ONLINE DIRECT RESPONSE PAGE 17

By the way, these are terrible numbers. I'm not factoring in sales that are
made to new subscribers after month one. I'm just basing all of these numbers on
what would happen if we scaled out the ad campaigns I just gave you.

Why am I going through all of these numbers with you? Why am I saying,
"Look if you want to do $12 million a year, it's
really only going to be $3.3 million after all is
The reason I'm doing
said and done?"
this is because nobody
The reason I'm doing this is because nobody
else does.
else does.

They're like, "If you sell $1 million worth of


stuff, now you've got a million dollars," when you really don't. There's overhead,
and there's costs and there's refunds and there's merchant fees and there's
advertising costs.

In order to get where you're going, you have to accurately understand the lay
of the land.

In our case, in business, the lay of the land is always math. It's always going to
be our numbers.

© 2016 Frank Kern


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HOW TO WIN IN ONLINE DIRECT RESPONSE PAGE 18

Step #5: Decide, Commit, Obsess

Decision and Commitment


Decision and commitment is critical. Let's go back to Dog Company. Imagine
it’s D-Day, they're on the beach, machine guns blasting, everything. Then they're
like, "Those Germans seem pretty tough. Let's try really hard to win."

I don't think they said that. Do you? That's not commitment, "Let's just try
really hard." No, that's not commitment at all. There's no clear decision to win.

Instead they said, "We're going in there and we're going to do whatever it
takes to defeat this enemy, to protect my country and ultimately my family."
Because they knew if we lost the war all hope was lost. They were committed.
They had made the decision and they were committed.

Imagine right now as we have all of this bad news going on with ISIS, what do
you think is going on with the American Special Forces? They're about to deploy,
do you think they're saying to their wives, "Honey, we're going to go over there
and see if we can't get ISIS to not come over here and rape and torture you and
the kids. We're going to ask them not to."

Of course not. They're committed. They're going to go over there and they're
going to kill every single one of them until the threat is gone. That is commitment.

Imagine saying, "I've decided to succeed and I'm committed to it."

It's easy to say that, but it is meaningless without a reason to push you
forward.

© 2016 Frank Kern


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HOW TO WIN IN ONLINE DIRECT RESPONSE PAGE 19

As you go on this journey and you meet the inevitable challenges that you're
going to meet, you have to understand the real
reason you're doing things. You've got to figure out

You have to understand what's really your why and you've


driving you to success. got to commit right
now.
You've got to figure out your why and
you've got to make the conscious decision right
now, and you have to commit right now.

If you're not getting the results you want online in your business, or really in
anything, it is because:

1. You don't know how. If you've got that problem we're going to fix it.
2. You don't accurately know what's really going on. You haven't done
the math. You don't know the map.
3. You're not really committed. You give up in times of trouble, or you
only put forth a little bit of effort.

Look, what I want to help you do is build a significant business.

I don't want to help you make a couple of hundred extra dollars a month or
something like that. I want to help you change the financial future of your family.

I don't want you to impress your neighbors, I want you to


impress your great, great, grandchildren.

In order to do that we've got to play for real, we can't be as they say in the
South, half steppin'.

© 2016 Frank Kern


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HOW TO WIN IN ONLINE DIRECT RESPONSE PAGE 20

Obsess
The final thing is to obsess. You absolutely must be obsessed with this stuff.

Look, there's no such thing as “set it and forget it” when it comes to massive
success.

I've known a lot of people who've made a tremendous amount of money, and
everybody that is very, very successful is totally, passionately, almost
psychotically obsessed with their mission.

They wake up in the morning, they're working. They go to bed at night, and
they're thinking about working. It never feels like work, it's fun, it's a passion, it's
an obsession. They really, really like it.

If you're buying into the “set it and forget it” dream, you might be able to have
some of that on a very small scale, but if you really want to achieve success you've
got to obsess over it.

If you're obsessing over it and you're enjoying the process guess what? It's
not work. You're actually enjoying your life, you're obsessing over something you
really, really enjoy doing.

I know I've told you how hard it's going to be and how hard you have to work
and everything. I hope I've really made the point that it's fun work, especially
when we realize that the bad stuff's not that bad.

A big part of my job is helping you isolate problems and fixing them really
quickly so they're not a bad problem, it's not a big deal.

Yeah. It's hard. It's easier than watching Seinfeld or something.

But have a look at this.


© 2016 Frank Kern
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HOW TO WIN IN ONLINE DIRECT RESPONSE PAGE 21

This is a fifty-pound bag of shingles and a sledgehammer.

When I was in my
twenties, one of my first
jobs was a roofer. I lived
in Macon, Georgia where
it is ever so slightly hot in the summer time with a humidity index over a hundred
degrees. It's brutal. My job working on black asphalt roofs was to carry these fifty-
pound bags of shingles up a very steep ladder and not fall off and hurt myself, and
then apply these tiles which were hot all over the hot roof and not fall off the roof.

Another job I had when I was younger was to accompany a bunch of ex-
convicts, really delightful gentlemen. We all had sledgehammers and we would
smash giant pieces of military surplus airplane motors into bits. Then we would
pull the copper and the tin and the aluminum and the steel parts out and we
would separate all that metal.

It was me and all of these very nice people who I really miss dearly. We would
swing these sledgehammers all day and try not to get ourselves killed or
accidentally hit each other or get cut on these jagged pieces of metal. Those were
terrible jobs. That was very, very hard work.

At the end of the day, all we're doing is we're really typing and talking. When
we go to fix an ad that's not working, our job is to type. It ain't that hard, we're
going to be typing indoors in the AC, or out by the pool, or wherever you want to
be. It's not going to be that big of a deal.

I promise you, when things go wrong if you catch them early it's never going
to be a big deal. It's not going to be that bad.

© 2016 Frank Kern


www.imarketing.courses
www.imarketing.courses

HOW TO WIN IN ONLINE DIRECT RESPONSE PAGE 22

Step #6: Expand Your Thinking and Expand Your Skills

When I got started, I wanted to work from home. I wanted to not have to
have a job anymore.

At that time, I was a door to door credit card machine salesman. It was terrible
and I didn't want to do that anymore, I wanted to be able to work from home.

As my business became more successful my focus and my thinking became, "I


want to make a million dollars." Then I started to think about, "I want to make
multiple millions of dollars per year consistently."

Every phase of this thinking required different skills. When it was “work from
home,” I just needed to learn the basic skills. How to write an okay sales letter,
how to drive traffic to a website cheaper than what I'm acquiring the customer
for. Really simple skills.

When I came to how to make a million dollars in a year, my skills went from
writing sales copy that was pretty good to writing sales copy that was really good,
and learning how to generate really big buzzes and generate product launches
and do all of that kind of stuff.

When I went from ‘make a million dollars’ to ‘make multiple millions of dollars
per year consistently,’ I had to learn an entirely new skill set – how to manage
people, how to build processes, how to build systems, how to manage teams.

Now my thinking is to have a net worth of a hundred million by age 50. Do I


have to have different skills? Absolutely. I've got to learn about investing. I've got
to learn about tax law. I have to learn how to multiply money even more. New set
of skills. New set of thinking.
© 2016 Frank Kern
www.imarketing.courses
www.imarketing.courses

HOW TO WIN IN ONLINE DIRECT RESPONSE PAGE 23

Here's the thing, one of my teachers, Dan Sullivan, famously says, "The same
set of skills that got you out of Egypt will not get you to the Promised Land."

If you're at point A now and you want to go to point B, a big part of getting
from point A to point B is going to be your skills. It's going to be the way you think.
Big part of that shift for you is going to be stop thinking like an internet marketer,
start thinking like a billionaire.

These are the steps that it takes for you to be ultimately very, very successful
online. As we continue our journey together, of course I'm going to show you how
to tactically implement all of this.

 Am I going to show you how to write better copy? Of course.


 Am I going to show you how to build systems that convert strangers
into sales? Of course.
 Am I going to show you how to create campaigns that cause those new
customers to continue to buy from you? Of course.
 Am I going to show you how to increase your prices; how to sell more
frequently at a higher price to existing customers? Absolutely.
 Am I going to show you how to drive traffic from advertising? Yes.
 Am I going to show you how to generate leads? Of course.
 Am I going to show you how to lower your cost per lead while raising
your value per lead? Happy to. That's what we do.

But none of it is really going to be nearly as effective unless you adopt these
six principles that I just shared with you.

I really look forward to working with you and to help you grow your business.
I look forward to seeing you in our next trainings.

© 2016 Frank Kern

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