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Customer lifetime value is something
that is important for a number

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of reasons in your business,

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not the least of which is that it improves
the overall worth of your business.

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But there's two things that I'm going to
harp on that I want you to think about

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when it comes to customer lifetime
value and the loyalty of your customer

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base. The first thing is,

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if you know what your
customer lifetime value is,

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you know what you can spend
to acquire a customer.

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Now, Paula and Michael
will tell you a lot about

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customer acquisition costs because
they spend a lot of time talking to

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their clients because they're
in the online lead generation

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business.

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They spend a lot of time talking to their
clients about how much it's going to

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cost to acquire a new customer.

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If you know what your
client lifetime value is,

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if you know what your
customer lifetime value is,

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you know what you can spend
to attract a new customer.

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So I'm going to give you an example right
now from my business, my old business,

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not Exit Success lab, but
my old consulting business,

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my solo practice consulting business,
and we'll see if it resonates with you.

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So in my solo consulting business,
I started that business in 2008.

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We are now in 2024.

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I have five clients,

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five that have been with me from 2008

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to today,

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which when I tell people
that they find it amazing,

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I actually am incredibly
grateful for those five people.

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But those clients have a very,

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if I took what they spend
with me and I averaged it out,

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that would be my client lifetime value
if those were my only clients, right?

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But I also have clients that have been
with me for a year that were with me for

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two years in some cases,
thankfully, very few,

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six months or less,

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right? If I average what those folks
spend with me and put it all together,

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I would get a number as to
what my client lifetime value

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is.

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Let's say that the lifetime value
of a client for me in that business

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is for argument's sake,

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let's say it's about $25,000,

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which for that business is pretty close
to accurate because those people who've

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been with me for all of these years,

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it's a lot more the people who've been
with me for a shorter period of time,

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it's a lot less. But let's say my
average client lifetime value is

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$25,000.

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Is it worth it for me to spend $10,000 to

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acquire a new client?

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If my average client value is 25,000,

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is it worth it to me to spend 10,000?

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I would say yes. My metric is this.

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My goal is, now, let me
take you back one step.

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My goal is to break even on client
acquisition in the first year.

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So in that business,

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my goal was always to break even on
client acquisition in the first year.

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So I had different tiers of service,

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and the lowest tier of service in
that business was $12,000 a year.

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So I know that the average
client would stay with me about

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38, 39 months, a little over three years.

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So for me,

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my goal was to spend one
third of my client lifetime

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value maximum to acquire a client.

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So I can do a lot with
$12,000 in client acquisition.

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Why is this important? Well,

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it helps me understand what the
investment required will be to acquire

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a new client,

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but also the more I can spend
to acquire a new client,

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the higher my client lifetime value,

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the more I can spend to
acquire a new client,

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the harder it is to compete with me.

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So if you have significant recurring
revenue built into your business,

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it creates higher client lifetime value,

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and if you have higher
client lifetime value,

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you can spend more to
acquire a client. Randy,

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I'll get to your question in just one sec.

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You don't have to spend that amount of

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money. In fact, it's better to keep
customer acquisition costs down,

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but if you know what your
client lifetime value is,

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then you can set a target for
how much you will spend to

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acquire that new client
so that you can make

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sure that you're doing everything you
possibly can afford to do to acquire

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new clients. Randy, your question please?

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Yeah, so when I listen to
you, I get what you're saying,

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but it feels like, and you can correct me,

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it feels like that's making
a presumption that the

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average lifetime value is fairly

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stagnant,

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that each client has a
similar lifetime value.

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In my business, I have categories.

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So knowing the type of client you want,

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I know you've taught us that,

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but I'm going to spend less
time and effort on the lower

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categories.

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I might still bring them in as clients
than I am on the higher categories,

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if that makes sense.

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Okay.

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This is why we missed you so much because
you've taken right where we want go.

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I truncated what I was
saying to be very general.

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So if you break down
your clients by category,

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you need to have client
lifetime value by category.

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You can't do it overall for the entire
business because you're going to have

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different clients, different
categories of clients.

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So you do need to break it down by
category. Now, here's the thing.

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As your business becomes more complex,

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you need to find a way
for the cheaper clients.

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You need to find a way to
automate the attraction of those

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clients so that it doesn't require
as much of your time and so

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that you can manage the spend. Okay?

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So one of the things that Nicole and
I were talking about with Paula and

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Michael from Lead Smith is okay

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with online advertising,
for example, Randy,

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let's take the case of a
gateway product or service.

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So I'll use an example from our business,
so I don't pick on anybody here.

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So in our business for
the business owners,

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what we want to do is I want to do an
upfront market assessment for those

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business owners so that we
can determine what the market

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value for their business
might be an approximation.

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So let's say I met with
Paula and Michael and I said,

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here's what that market
assessment is worth.

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We'll do the market assessment for $3,000.

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So because I'm okay with just
attracting a new client at

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breakeven, I would say to them,

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here's our budget for
advertising plus your fees.

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It's $3,000 per client.

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I want to acquire 10 new clients a month.

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So our budget is $30,000 in
online advertising so that

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we acquire those clients
at breakeven. But Randy,

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that's just for acquiring
that specific type of client.

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Now, if I look then, and
if I pivot and I say,

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now attracting professionals
into our ESL ecosystem,

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the professionals pay a
thousand dollars enrollment fee,

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and that's what I want to
use as my breakeven number. I

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can't afford then to advertise
for professionals because I know

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advertising is a relatively
higher ticket proposition.

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So what I need to do with
professionals is I can hire a

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$25 an hour telemarketer
to bang the phones and

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call professionals, put
them in a breakfast,

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and I can get 50 of them in a breakfast,

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and I can close three or four or five.

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So I close five from that
breakfast, that's 5,000.

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So my cost of acquisition

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for one of those clients is a
thousand dollars. I acquire five.

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I can pay $5,000 for that
telemarketer for the month.

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So for that specific service line,

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my client lifetime value, let's say,

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is a thousand dollars,

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but my acquisition is going to be
a thousand dollars for that person.

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So I can spend, I'm going to close
five every time we run the breakfast,

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I can spend $5,000 a month
to acquire that client,

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but for the other client that
I'm working with Paula on,

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I can spend 30 because I know I'm
going to close 10 of those and they're

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going to be higher ticket
value. So you have to segment

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your focus on cost of acquisition
based on the client type.

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So that leads to your point,

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but the client lifetime value is what
should determine what you will spend.

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Paula, to you.

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I've been trying to play with that mute
button and waiting patiently for the

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moment. So yeah,

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I think to Dave's point on
how he's answering you, Randy,

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basically you're building
differently lead generation funnels.

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You're building one funnel
for a higher end ticket value,

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and you're going to spend potentially
a lot money in advertising,

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and then you're spending,

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you're building a lower end cost
type lead generation funnel.

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But it's really important to understand,

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just to Dave's point is
what do they cost me?

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Because then you can back into
what are you willing to pay for it?

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And then advertising is one piece,

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and there's so many other mechanisms
out there to be able to do this from

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marketing, from calling
and all those other pieces.

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But a lot of the times we encounter
is that many times our customers,

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they don't really know what it's worth.
They don't know what

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the cost to acquire first. They don't
know the cost to acquire customers.

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They don't know what
they're comfortable with,

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and the best way to do it is how
much is that customer worth to you?

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So a lot of times people will just
think, oh, I get X amount of money,

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let's say a thousand bucks a
month from them. So that's it.

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And sometimes the cost to get them
is going to be higher than a thousand

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dollars.

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So you really should think about it
from a lifetime value because you're

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probably, I don't know in your case,
but you don't get paid once a month.

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Maybe you get paid over a period of time.

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So it's really this idea of it's very
mathematical and what you can do,

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and if you can understand that really
well, then it's sort of like, why not?

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Why wouldn't I spend as much as I can
if I know that I'm going to get a return

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on investment? That's very healthy
for each one of these clients.

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The more the spend, the more clients
you get. So it's really a math number.

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This whole thing is all
a mathematical equation.

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And that's not. Thank you, Paula.
And today we're not doing math.

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I promise there'll be no math today.

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So today what we're going to do
is today what I want to focus on

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is I want to focus on the
time you're investing,

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and I want to think about the
lifetime value of your clients and

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your referral sources based on the
time you're investing. First. Randy,

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was that helpful? Did we answer
the question that you had or no?

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Yeah, absolutely.

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Okay.

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So our focus of the
presentation today is on the

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time you're investing.

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So let me share my screen
with you and quickly,

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not quickly, and bring this into context.

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And I want you to keep in mind that this
is not the only time we're ever going

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to talk about this, okay?

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This is such a foundational concept
that you'll hear me talk about this

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over and over and over again.

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So today we're talking about
how to build deep relationships,

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ask your clients and evangelists for
money and have them love you for it.

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So what do I mean by that? First, let
me explain what evangelists are, okay?

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So in my language, clients
are people who invest money.

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They pay us for services, okay?

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Evangelists are people who've never
experienced our services yet they still

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promote us. They've never
invested a dollar with us,

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yet they still promote us. And the
example I give all the time is a criminal

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defense attorney, right? Paul
knows one of my dear friends,

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one of my closest
friends, Brian Tanenbaum.

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Brian is a criminal defense attorney,

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but he's also a Florida
bar ethics attorney.

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And what an ethics attorney
does is when one or more of the

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90,000 plus lawyers here
in Florida runs afoul of

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the rules for practicing law,

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an ethics attorney is somebody
who specifically focuses on

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defending those knuckleheads from
either being disciplined or in

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worst case scenario, losing their
license, losing their law license.

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I'm not a lawyer,

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but I know a lot of lawyers and a
lot of lawyers come to me for help.

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So when lawyers do something stupid,

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like borrow money from their client's
escrow accounts to pay their own bills,

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and they get caught,

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I get that phone call a lot of
times and they tell me crying on the

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phone,

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I don't know what I'm going to do. I
introduce them to Brian because Brian is a

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Florida bar ethics attorney.
He can defend them,

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and he's a miracle worker.

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He's prevented a lot of really shitty
lawyers from losing their licenses, okay?

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That's what he does.
Well, I'm not a lawyer,

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so I can't help those people.

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00:14:37,870 --> 00:14:41,620
I've never used Brian's services either
on the criminal defense side or on the

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00:14:41,620 --> 00:14:45,310
ethics side, thank goodness.
But I refer Brian work.

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00:14:45,370 --> 00:14:48,280
I refer him five or six matters a year,

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00:14:49,180 --> 00:14:53,930
and so I'm an evangelist for Brian
because I'm telling you about him

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00:14:53,930 --> 00:14:58,490
right now. I believe in him.
He's fantastic at what he does,

240
00:14:58,850 --> 00:15:01,040
so I'm evangelizing for him.

241
00:15:01,580 --> 00:15:04,250
You have people in your business
who are evangelists for you.

242
00:15:04,250 --> 00:15:07,910
They've never used your services,
but they promote you like crazy.

243
00:15:08,090 --> 00:15:12,620
So our presentation today
is focused on how you

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00:15:12,620 --> 00:15:16,820
can build these deep relationships in
the most efficient and effective way

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00:15:16,820 --> 00:15:17,570
possible,

246
00:15:17,570 --> 00:15:22,340
both from a client perspective and from
an evangelist perspective. Your clients

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00:15:22,400 --> 00:15:25,940
who refer business to you,
they're still clients.

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00:15:26,720 --> 00:15:30,950
Anybody who's ever invested in you is
always going to be referred to by me as a

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00:15:30,950 --> 00:15:34,850
client. Even if they refer
20 people to you, in my mind,

250
00:15:34,850 --> 00:15:38,000
they're still a client because
they've experienced your offerings,

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00:15:38,000 --> 00:15:40,100
they've experienced your
products, your services.

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00:15:41,150 --> 00:15:45,980
So we're talking about lifetime loyalty
today. Why now? Why this? Why you?

253
00:15:46,190 --> 00:15:47,660
Well, there's three reasons, okay?

254
00:15:48,680 --> 00:15:52,670
I want you to make more money

255
00:15:53,690 --> 00:15:58,040
directly. So asking your
existing clients for more money.

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00:15:58,400 --> 00:16:02,120
I want to show you how to do that
in a way that's not intrusive.

257
00:16:02,600 --> 00:16:04,310
Second is more indirect money.

258
00:16:04,670 --> 00:16:08,930
I want you to be delivering
so much value to be so

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00:16:08,930 --> 00:16:13,400
remarkable that people talk
about you to other people,

260
00:16:13,460 --> 00:16:17,420
and those people fall out of the
sky into your lap to work with you.

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00:16:17,510 --> 00:16:18,740
That's indirect money.

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00:16:19,820 --> 00:16:23,420
And then I want to show you a way to do
exactly what Randy was talking about,

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00:16:23,420 --> 00:16:26,630
to lower your labor intensity so that

264
00:16:28,440 --> 00:16:33,200
you don't have to work as hard
to build the lifetime loyalty

265
00:16:33,320 --> 00:16:37,880
so that you can set up systems and
processes that will do that for you. So

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00:16:37,880 --> 00:16:39,260
that's our focus today.

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00:16:41,000 --> 00:16:45,860
So there's three ways that
everyone here gets more

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00:16:45,860 --> 00:16:49,130
direct money. This is it. This
is how we get more direct money.

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00:16:49,130 --> 00:16:52,790
We solve problems for people
and they give us money.

270
00:16:53,600 --> 00:16:58,520
We help people achieve their goals
and they give us money or we fill

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00:16:58,520 --> 00:17:03,200
a need and people give us money.
This is it. It's what we do.

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00:17:03,650 --> 00:17:06,290
Nothing else. You're
either solving problems,

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00:17:06,410 --> 00:17:09,800
helping people achieve
goals or filling needs.

274
00:17:11,240 --> 00:17:15,020
The indirect money to us
comes from more referrals,

275
00:17:16,430 --> 00:17:21,320
more introductions, or by
building a bigger brand. Now,

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00:17:21,320 --> 00:17:24,980
who wants to tell me wants to take a
guess at what the difference between a

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00:17:24,980 --> 00:17:26,990
referral and an introduction is?

278
00:17:29,390 --> 00:17:29,990
Shout it out.

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00:17:29,990 --> 00:17:33,050
If you think you know what's a
referral compared to an introduction.

280
00:17:34,220 --> 00:17:36,620
A referral includes a recommendation.

281
00:17:37,490 --> 00:17:39,770
Randy, thank you. Exactly right.

282
00:17:40,400 --> 00:17:43,850
A referral is me bringing somebody
to your office and saying,

283
00:17:43,850 --> 00:17:47,330
you need to work with Eileen.
If you don't work with Eileen,

284
00:17:47,330 --> 00:17:51,810
you're crazy and I'm not leaving you
work with Eileen. That's a referral.

285
00:17:52,110 --> 00:17:56,340
An introduction is Meet my friend
Eileen. She can help you get a job.

286
00:17:56,700 --> 00:17:59,460
Have a nice day. That's
an introduction, right?

287
00:18:00,000 --> 00:18:04,350
A referral is you doing everything you
can to help these two people get together

288
00:18:04,440 --> 00:18:07,530
because you passionately
believe they can solve a need.

289
00:18:08,310 --> 00:18:11,160
You want to get more clients on
LinkedIn, you got to work with Phil.

290
00:18:11,730 --> 00:18:13,290
There's no two ways about it. In fact,

291
00:18:13,290 --> 00:18:16,620
if you're a professional and you're on
LinkedIn, you got to work with Phil.

292
00:18:16,800 --> 00:18:20,340
If you're not working with Phil, you're
not taking full advantage of LinkedIn.

293
00:18:20,550 --> 00:18:22,770
If you want to learn
how Phil has helped me,

294
00:18:22,890 --> 00:18:26,340
I'm happy to tell you. I'm happy to set
up a meeting for the three of us and I

295
00:18:26,340 --> 00:18:27,960
will show you what Phil showed me,

296
00:18:28,050 --> 00:18:31,080
and then you should work with Phil
immediately after that, right?

297
00:18:31,200 --> 00:18:32,520
If you come to that meeting,

298
00:18:32,580 --> 00:18:35,220
I'm going to do everything I can
to make sure you work with Phil.

299
00:18:35,310 --> 00:18:38,310
That's a referral. If I just
say to you, this is Phil,

300
00:18:38,760 --> 00:18:42,000
he's great with LinkedIn Sales Navigator,
he can help you get some clients.

301
00:18:42,780 --> 00:18:47,760
I think that's an introduction.
If you are going to do a referral,

302
00:18:47,760 --> 00:18:49,860
you need to recommend the person.

303
00:18:50,040 --> 00:18:54,600
You need to do everything you can and
you shouldn't refer people who you're not

304
00:18:54,600 --> 00:18:58,320
passionate about. If I send you to Paul,

305
00:18:58,410 --> 00:19:00,900
Paul is going to take great
care of you, I promise,

306
00:19:01,170 --> 00:19:05,700
because I know I've seen Paul since 2008.

307
00:19:05,790 --> 00:19:09,120
I've seen Paul take care
of clients since 2008,

308
00:19:09,330 --> 00:19:11,520
solve all their telecommunications needs.

309
00:19:11,640 --> 00:19:14,310
I've seen Paul help people
that aren't even his customers.

310
00:19:14,670 --> 00:19:16,980
So I know Paul's going to
provide you with great service.

311
00:19:17,910 --> 00:19:20,610
I am passionate about
Paul and what Paul does.

312
00:19:20,640 --> 00:19:22,620
I'm passionate about
Phil and what Phil does.

313
00:19:22,830 --> 00:19:27,090
I am going to do everything I can to
make sure that you guys work with them.

314
00:19:27,090 --> 00:19:29,220
If I introduce you to
them, that's a referral.

315
00:19:29,850 --> 00:19:33,030
If I'm just sending you over
to somebody, that's valuable,

316
00:19:33,030 --> 00:19:35,010
but that's just an
introduction. Yes, Philip.

317
00:19:35,880 --> 00:19:39,060
There's another one called
a name drop where you,

318
00:19:40,710 --> 00:19:43,530
you're speaking to someone and

319
00:19:45,280 --> 00:19:48,840
they're sort of not massively comfortable
about doing an introduction or a

320
00:19:48,840 --> 00:19:53,220
referral, and you say something like, oh,

321
00:19:53,220 --> 00:19:55,080
we're speaking to Dave Lorenzo,

322
00:19:55,170 --> 00:19:59,100
and he thought it would be a good idea
to touch base and blah, blah, blah, blah,

323
00:19:59,100 --> 00:20:01,650
blah. So that's the third level.

324
00:20:02,910 --> 00:20:06,180
Right? Right. I think that's valid.

325
00:20:06,180 --> 00:20:11,010
I don't talk about a lot that a
lot with my clients because I don't

326
00:20:11,010 --> 00:20:13,890
place a lot of value on that,

327
00:20:14,220 --> 00:20:18,060
just like I don't place a lot of value
on. See if this resonates with you,

328
00:20:18,060 --> 00:20:21,270
and a lot of big firm people do
this, oh, you want a referral?

329
00:20:21,270 --> 00:20:22,560
I'm going to give you three names.

330
00:20:23,730 --> 00:20:28,440
Giving people three names is basically,
I'm going to date myself. Now.

331
00:20:28,440 --> 00:20:31,110
It's like basically giving them
the phone book, right? It's like,

332
00:20:31,530 --> 00:20:34,350
here's a list of people. Just call 'em.

333
00:20:35,760 --> 00:20:40,740
If you don't feel comfortable enough
to do a solid recommendation for

334
00:20:40,740 --> 00:20:44,130
someone, don't give them three
names. It's not helpful to you.

335
00:20:44,130 --> 00:20:45,960
It's not helpful to the other person.

336
00:20:46,260 --> 00:20:50,200
If you're concerned about betting
your reputation on someone,

337
00:20:50,200 --> 00:20:53,260
you shouldn't be putting their
name out there at all, right?

338
00:20:53,530 --> 00:20:55,600
So I would say, alright,

339
00:20:55,600 --> 00:21:00,100
here's what I need to do. I need to find
out your interests are what your needs

340
00:21:00,100 --> 00:21:00,730
are,

341
00:21:00,730 --> 00:21:04,570
and I will match you with the person that
I know that will best meet your needs

342
00:21:04,960 --> 00:21:09,640
depending on your personality type
and the type of work that you need.

343
00:21:09,820 --> 00:21:12,460
If I don't know someone,
I'm going to say, listen,

344
00:21:12,520 --> 00:21:15,100
I've never worked with this
person, but I've heard good things.

345
00:21:15,280 --> 00:21:18,760
Let me make an introduction.
But because I worked with Phil,

346
00:21:18,760 --> 00:21:20,230
because I've worked with Paul,

347
00:21:20,470 --> 00:21:24,910
I know these guys can do everything
they say they're going to do and

348
00:21:24,910 --> 00:21:28,270
more. I'm passionate about
referring them. So for me,

349
00:21:28,270 --> 00:21:31,870
the difference between a referral and
an introduction is exactly what Randy

350
00:21:31,870 --> 00:21:32,380
said.

351
00:21:32,380 --> 00:21:36,880
It's a recommendation and it's
a full-throated passionate

352
00:21:36,880 --> 00:21:40,060
recommendation. Alright?

353
00:21:42,190 --> 00:21:46,990
We're going to spend a lot of
time in ESL talking about lowering

354
00:21:46,990 --> 00:21:48,580
your labor intensity.

355
00:21:49,540 --> 00:21:54,280
So on your way to building
a company or building an

356
00:21:54,280 --> 00:21:57,760
organization, you need to think about

357
00:21:59,890 --> 00:22:02,530
the financial investment
you make in things.

358
00:22:02,530 --> 00:22:06,880
And then you need to think about
the investment of your time

359
00:22:07,570 --> 00:22:11,890
and you as the CEO of your business
or your firm or your practice,

360
00:22:12,430 --> 00:22:14,860
whatever profession you're
in, whatever you want to say,

361
00:22:15,130 --> 00:22:19,660
you as the CEO of your business
need to think about the

362
00:22:19,660 --> 00:22:24,220
level of labor intensity that you're
putting into things and the return on

363
00:22:24,220 --> 00:22:26,980
investment of your labor intensity

364
00:22:28,660 --> 00:22:32,590
right now, because exit Success
Lab isn't even a year old.

365
00:22:32,590 --> 00:22:34,390
It's virtually a startup,

366
00:22:35,200 --> 00:22:39,430
and Nicola and I are doing all
the work in exit success lab.

367
00:22:40,180 --> 00:22:41,680
So for us,

368
00:22:41,800 --> 00:22:45,490
we're putting a lot of labor intensity
into things that other people will

369
00:22:45,490 --> 00:22:50,470
eventually be doing. For example, where
in the process now I'm putting together,

370
00:22:50,470 --> 00:22:55,030
I'm going to finalize today
a job description for an

371
00:22:55,030 --> 00:22:59,980
inside sales person because I am putting
way too much labor intensity on the

372
00:22:59,980 --> 00:23:02,530
inside sales aspect of ESL,

373
00:23:02,590 --> 00:23:06,910
and we're at a point now where we can
afford to bring on an inside salesperson.

374
00:23:06,910 --> 00:23:11,380
So I know that the labor intensity
that I'm investing in that inside sales

375
00:23:11,380 --> 00:23:14,980
process right now is too
high. I need to reduce it,

376
00:23:14,980 --> 00:23:18,700
and the way I'm going to reduce it is
by bringing somebody on board to do that

377
00:23:18,700 --> 00:23:22,960
part of the work that is
better suited for someone else.

378
00:23:23,500 --> 00:23:28,090
So you have to determine
where it's best for you to

379
00:23:28,090 --> 00:23:30,490
invest your labor intensity.

380
00:23:30,880 --> 00:23:33,490
We don't think about our time as CEOs.

381
00:23:33,490 --> 00:23:37,450
We don't think about our time as an
investment. We just think to ourselves,

382
00:23:37,450 --> 00:23:40,240
whether there's 24 hours in a day, I
really only need four hours of sleep,

383
00:23:40,240 --> 00:23:43,900
so I can spend 20 hours working.
Yeah, okay,

384
00:23:43,900 --> 00:23:45,530
you can do that for a little while,

385
00:23:45,530 --> 00:23:50,000
but that's a recipe for a heart attack
and disaster, right? You need to,

386
00:23:50,000 --> 00:23:52,280
and it's not the most
productive thing for you.

387
00:23:52,610 --> 00:23:54,740
If you are a detail oriented person,

388
00:23:54,740 --> 00:23:59,090
then your labor intensity is best
focused on running the systems and

389
00:23:59,090 --> 00:24:03,230
practices that keep your business moving
forward. If you're a creative person,

390
00:24:03,230 --> 00:24:07,520
your labor intensity is best spent on
doing the big picture things that will

391
00:24:07,520 --> 00:24:09,050
drive your business forward.

392
00:24:09,680 --> 00:24:14,420
So lowering your labor intensity in

393
00:24:14,420 --> 00:24:19,250
your practice will lead to a
greater perception of value for

394
00:24:19,250 --> 00:24:21,590
you from your business. So right now,

395
00:24:21,590 --> 00:24:26,360
if you're a sole practitioner and you
lower the labor intensity required to

396
00:24:26,360 --> 00:24:27,710
attract clients,

397
00:24:28,250 --> 00:24:32,390
your business will be providing
you with a lot more satisfaction.

398
00:24:32,840 --> 00:24:37,250
It'll be providing you with a lot more
opportunity to do probably what you want

399
00:24:37,250 --> 00:24:41,840
to law school to do if you are a lawyer.
So it'll provide you with a greater

400
00:24:41,840 --> 00:24:46,070
perception of value of your
business. It will also, by the way,

401
00:24:46,550 --> 00:24:51,200
if you also figure out how to develop
lead generation and business development

402
00:24:51,200 --> 00:24:52,033
systems,

403
00:24:52,160 --> 00:24:56,330
it will make your practice
worth more to someone else.

404
00:24:57,290 --> 00:24:58,280
So if you wanted to,

405
00:24:58,370 --> 00:25:02,960
if you're a lawyer or if you're a solo
consultant right now and you wanted to

406
00:25:02,960 --> 00:25:04,670
sell your practice to somebody,

407
00:25:05,690 --> 00:25:09,770
if the business development aspect of
your practice is dependent upon you,

408
00:25:09,770 --> 00:25:12,110
you got nothing to sell there. Okay?

409
00:25:12,680 --> 00:25:17,480
If you have a business development system
that brings prospects to your door and

410
00:25:17,480 --> 00:25:19,850
you close them, that's a different story.

411
00:25:20,150 --> 00:25:23,390
You can probably bring on another
lawyer, another consultant,

412
00:25:23,390 --> 00:25:25,190
teach them how to close the business,

413
00:25:25,340 --> 00:25:29,420
teach them how to fulfill the processes
and the perception of value of your

414
00:25:29,420 --> 00:25:33,050
business will be higher. If
you lower your labor intensity,

415
00:25:33,050 --> 00:25:37,850
you can command a fee premium
and you can also generate

416
00:25:37,850 --> 00:25:42,590
more opportunity for work
because you'll have more

417
00:25:42,590 --> 00:25:45,920
time to spend with your existing clients,

418
00:25:46,100 --> 00:25:50,660
and there's magic involved with spending
more time with existing clients.

419
00:25:50,660 --> 00:25:54,950
It results in more money to
your business, to your practice.

420
00:25:57,380 --> 00:26:02,330
What we're all going for when it comes
to the lead generation aspect of our

421
00:26:02,330 --> 00:26:05,570
business is we're all going for
love at first sight right now.

422
00:26:06,020 --> 00:26:10,430
We want people to hear us
speak, to read our content,

423
00:26:10,730 --> 00:26:13,490
to talk to us on the phone
and fall in love with us.

424
00:26:14,030 --> 00:26:15,800
And that's not what we
should be going for.

425
00:26:16,280 --> 00:26:20,420
What we should be going for
is attraction at first site,

426
00:26:20,870 --> 00:26:22,400
or put a better way.

427
00:26:22,640 --> 00:26:26,600
We should be going for generating
interest at first site.

428
00:26:27,350 --> 00:26:30,470
Nobody's going to fall in love with your
business or fall in love with you as

429
00:26:30,470 --> 00:26:35,300
their lawyer or fall in love with
you as their provider of exotic

430
00:26:35,300 --> 00:26:39,740
meat. Nobody's going to fall in love
with you the first time they meet you.

431
00:26:40,400 --> 00:26:43,340
They will if you do things correctly,

432
00:26:43,620 --> 00:26:47,160
become interested in you and what
you have to say and what you do.

433
00:26:48,120 --> 00:26:52,230
So I love this quote by Benjamin Franklin,

434
00:26:52,260 --> 00:26:55,140
if you would be loved,
love and be lovable,

435
00:26:55,560 --> 00:27:00,540
your goal for all the people
who you come in contact with

436
00:27:00,540 --> 00:27:05,160
who are leads, is for
you to generate goodwill,

437
00:27:05,340 --> 00:27:07,200
okay? That's the love part.

438
00:27:07,560 --> 00:27:11,580
And then be a benevolent,

439
00:27:11,850 --> 00:27:16,410
be a receptive, open person,
and that's the be lovable part,

440
00:27:17,280 --> 00:27:19,680
and that's what this is all about.

441
00:27:20,160 --> 00:27:23,190
That's what expanding the lifetime value,

442
00:27:23,190 --> 00:27:25,380
increasing the lifetime value,

443
00:27:25,560 --> 00:27:28,980
increasing lifetime loyalty is all about.

444
00:27:30,060 --> 00:27:32,400
So now we're going to get
into the how to do this.

445
00:27:33,450 --> 00:27:38,010
And this is all about communication.

446
00:27:39,150 --> 00:27:40,620
It's how you communicate with leads.

447
00:27:40,620 --> 00:27:43,380
It's how you communicate with the
people that you follow up with.

448
00:27:44,010 --> 00:27:46,590
So from a lead perspective in general,

449
00:27:48,620 --> 00:27:53,610
these are the foundational pillars of a

450
00:27:53,610 --> 00:27:58,410
message that you create
that will lead to loyalty

451
00:27:58,410 --> 00:27:59,730
from your clients,

452
00:28:00,180 --> 00:28:04,800
from your prospects who will become
clients. It will lead to loyalty from your

453
00:28:04,800 --> 00:28:09,750
current clients. It will lead to
loyalty from your evangelists,

454
00:28:09,750 --> 00:28:13,890
from your referral sources. So if you
want to think about this a different way,

455
00:28:15,120 --> 00:28:19,710
I want you to think about it from
the perspective of people that you

456
00:28:19,710 --> 00:28:22,080
meet in a networking setting.

457
00:28:23,580 --> 00:28:27,660
You meet these people and
you've generated some interest,

458
00:28:27,660 --> 00:28:29,370
some attraction from them,

459
00:28:30,120 --> 00:28:33,090
but they're not ready to do business
with you because they need to learn more.

460
00:28:33,090 --> 00:28:34,830
Here's how you're going
to communicate with them.

461
00:28:34,830 --> 00:28:38,850
Here are the tenants of communication
that will help you deepen those

462
00:28:38,850 --> 00:28:43,680
relationships. It's
primacy, recency, frequency,

463
00:28:44,190 --> 00:28:48,570
and emotional resonance. So
the first thing they hear,

464
00:28:48,570 --> 00:28:51,900
the last thing they hear,
something they hear often,

465
00:28:52,590 --> 00:28:57,090
something they hear that strikes
an emotional chord in them.

466
00:28:58,380 --> 00:28:59,850
If you want examples,

467
00:28:59,850 --> 00:29:04,290
if you've ever seen me speak in
front of an audience in my message,

468
00:29:04,350 --> 00:29:08,880
I incorporate the outcome I
want into the first thing I

469
00:29:08,880 --> 00:29:13,650
introduce to people into the last
thing they hear before I leave the

470
00:29:13,650 --> 00:29:15,540
stage or finish speaking,

471
00:29:16,170 --> 00:29:20,400
I repeat the message that I want them
to take home over and over again. That's

472
00:29:20,400 --> 00:29:21,233
the frequency.

473
00:29:21,330 --> 00:29:25,740
And I tell stories that
connect my message with the

474
00:29:25,740 --> 00:29:30,300
emotions that I want them to feel. Okay?

475
00:29:31,290 --> 00:29:34,140
Let's take a look at each
of these real quick primacy

476
00:29:36,870 --> 00:29:37,860
being first,

477
00:29:38,820 --> 00:29:43,330
if you want to connect and develop
a relationship that will lead to

478
00:29:43,330 --> 00:29:45,880
lifetime loyalty, you want
to connect with an audience,

479
00:29:46,630 --> 00:29:49,780
you should deliver a new idea. Now,

480
00:29:49,780 --> 00:29:52,840
a new idea is something that the audience,

481
00:29:53,020 --> 00:29:55,480
the target client hasn't heard before.

482
00:29:55,480 --> 00:29:57,700
So your audience can
be an audience of one,

483
00:29:58,000 --> 00:30:00,130
or it can be an audience
of a thousand people.

484
00:30:00,670 --> 00:30:03,280
So if I'm sitting down and
I'm having lunch with Randy,

485
00:30:03,850 --> 00:30:08,050
and Randy says to me, she gives me
the whole load down on her practice.

486
00:30:08,050 --> 00:30:11,710
She gives me the whole load down on what's
going on and what she's interested in

487
00:30:11,710 --> 00:30:14,500
and what clients she wants to get more of.

488
00:30:14,830 --> 00:30:18,010
And I say to her, Randy,

489
00:30:18,520 --> 00:30:21,580
it strikes me that you're really good
at what you do and you could work with

490
00:30:21,580 --> 00:30:24,880
sophisticated clients. Do you enjoy
working with sophisticated clients?

491
00:30:24,880 --> 00:30:27,910
And she says, yes. And I say to her,

492
00:30:28,420 --> 00:30:31,840
why are you working with so
many of these smaller clients?

493
00:30:31,840 --> 00:30:35,500
Why aren't you working with Fortune
500 clients? And she says, well,

494
00:30:35,500 --> 00:30:39,850
because I built my business going to
Chamber of Commerce meetings and I meet a

495
00:30:39,850 --> 00:30:42,520
lot of these smaller
clients and they have money.

496
00:30:42,520 --> 00:30:44,440
So I took the money and
I'm working with them,

497
00:30:44,440 --> 00:30:48,430
and now I'm so busy working with these
smaller clients that I don't know how to

498
00:30:48,430 --> 00:30:52,330
get back to working with bigger
clients. And I say to her, okay, Randy,

499
00:30:52,330 --> 00:30:53,260
what if you did this?

500
00:30:53,260 --> 00:30:58,090
What if you spent initially carve out five

501
00:30:58,090 --> 00:31:00,580
hours a week, block it on your calendar,

502
00:31:00,910 --> 00:31:05,320
and you just spend that five
hours targeting the fortune 500

503
00:31:05,680 --> 00:31:10,540
clients that you can do work for
based on past work that you've done?

504
00:31:10,990 --> 00:31:15,520
And here are the five steps that you
could take to do this. That to Randy is a

505
00:31:15,520 --> 00:31:19,570
brand new idea to the dozens of
other clients that work with me.

506
00:31:19,570 --> 00:31:22,720
It's not a new idea to them
because they've heard it
before and to other people

507
00:31:22,720 --> 00:31:26,170
in the world, it's not a new idea.
But to Randy, it's a new idea.

508
00:31:27,460 --> 00:31:31,000
So I'm the first person that
shared this idea with her,

509
00:31:31,000 --> 00:31:34,090
and this may or may not be true, so
don't go to Randy and go, really?

510
00:31:34,090 --> 00:31:37,030
You didn't know that? So this may
or may not be true with Randy.

511
00:31:37,030 --> 00:31:41,410
I'm just giving you an example. So
that idea is a new idea to Randy,

512
00:31:41,740 --> 00:31:45,490
right? So that new idea is
going to stick with Randy,

513
00:31:45,490 --> 00:31:49,840
and while she's making dinner and while
she's relaxing and having a cup of

514
00:31:49,840 --> 00:31:53,950
coffee with her friend, she's going to
say, I heard this idea from this guy.

515
00:31:53,950 --> 00:31:56,800
What do you think about this? And she's
going to talk about it and the friend's

516
00:31:56,800 --> 00:32:00,340
going to go, that's interesting.
Who's the guy that gave you that idea?

517
00:32:00,550 --> 00:32:04,720
So because I gave the new
idea, I stay top of mind.

518
00:32:06,070 --> 00:32:10,720
Then Randy and I start working together,
and Randy has success with that idea.

519
00:32:11,140 --> 00:32:15,340
So she comes back to me and she
says, that worked really great.

520
00:32:15,430 --> 00:32:16,750
I got this other problem,

521
00:32:17,140 --> 00:32:21,280
and she comes to me for the other problem
because I'm the new idea guy in her

522
00:32:21,280 --> 00:32:22,113
mind.

523
00:32:23,440 --> 00:32:28,090
So being first with a new idea can

524
00:32:28,090 --> 00:32:30,070
lead to lifetime loyalty,

525
00:32:30,790 --> 00:32:35,590
also being the known
person in a niche market.

526
00:32:35,590 --> 00:32:38,470
If Nicola was here, she would
say niche market, right?

527
00:32:38,780 --> 00:32:43,040
Being the person who
dominates a niche market

528
00:32:43,520 --> 00:32:46,280
also is an example of primacy.

529
00:32:46,280 --> 00:32:49,370
When I started my solo
consulting business,

530
00:32:49,520 --> 00:32:52,820
I worked exclusively with
lawyers. Why did I do that?

531
00:32:53,120 --> 00:32:55,250
Because in one year,

532
00:32:55,250 --> 00:33:00,140
I was able to dominate the law
firm market in South Florida and

533
00:33:00,140 --> 00:33:05,060
become known by a lot of lawyers as
the go-to guy for business development

534
00:33:05,060 --> 00:33:08,420
help for lawyers and law firms.
It was 2008.

535
00:33:08,420 --> 00:33:12,290
There were a lot fewer of the business
development people for law firms back

536
00:33:12,290 --> 00:33:15,200
then. I was able to
dominate that niche market.

537
00:33:15,800 --> 00:33:20,270
So I was the first person that
they had heard of who was just

538
00:33:20,600 --> 00:33:23,000
focused on helping lawyers
grow their business.

539
00:33:23,540 --> 00:33:28,520
I knew the bar rules related to
advertising and marketing for

540
00:33:28,520 --> 00:33:29,630
lawyers in Florida.

541
00:33:29,630 --> 00:33:34,190
I could navigate them and I was the

542
00:33:34,190 --> 00:33:38,900
person that they thought of first because
I was dominant in that niche market.

543
00:33:40,010 --> 00:33:44,750
Being a contrarian is a
fantastic way to establish

544
00:33:44,750 --> 00:33:48,770
primacy in people's minds. Now, here's
the thing about being a contrarian.

545
00:33:49,340 --> 00:33:52,580
You can't be a contrarian
and be a complete jerk.

546
00:33:53,750 --> 00:33:58,160
You can be a contrarian and
be known as a contrarian,

547
00:33:58,160 --> 00:34:00,620
but still be a likable contrarian.

548
00:34:00,830 --> 00:34:03,560
So the example of a contrarian
who's a complete jerk,

549
00:34:03,590 --> 00:34:05,570
anybody familiar with Andrew Tate?

550
00:34:06,110 --> 00:34:08,690
You know who Andrew Tate is?
If you're not familiar with him,

551
00:34:09,110 --> 00:34:13,760
spend two minutes looking him up.
He's a ridiculously misogynistic.

552
00:34:14,570 --> 00:34:19,370
I mean like bordering on
criminal guy who has a

553
00:34:19,370 --> 00:34:23,180
bazillion followers on YouTube
and TikTok and everything.

554
00:34:23,600 --> 00:34:25,970
He is a horrible, horrible person,

555
00:34:26,450 --> 00:34:31,070
but he sells stuff left and
right to an audience because

556
00:34:31,340 --> 00:34:36,200
his contrarian point of view
resonates with a bunch of misogynistic

557
00:34:36,620 --> 00:34:38,870
jerks who will give him money.

558
00:34:40,130 --> 00:34:41,720
That's not what I want you to be.

559
00:34:42,170 --> 00:34:46,910
I want you to be the contrarian who goes
out and says things like I used to say

560
00:34:47,180 --> 00:34:51,800
hourly billing is something
that all lawyers should

561
00:34:51,800 --> 00:34:56,420
avoid because it creates disalignment
between the interests of the

562
00:34:56,420 --> 00:34:59,450
lawyer and the interests of the client.

563
00:35:00,020 --> 00:35:03,170
I don't work with people
who bill on an hourly basis.

564
00:35:03,200 --> 00:35:05,900
I don't want to work with people
who bill on an hourly basis.

565
00:35:06,170 --> 00:35:10,640
I help lawyers quit hourly
billing like Alcoholics

566
00:35:10,640 --> 00:35:15,380
Anonymous helps drunks quit alcohol.
That's a contrarian

567
00:35:15,380 --> 00:35:19,940
point of view, but I'm
not trying to be a jerk.

568
00:35:20,570 --> 00:35:23,270
I'm not saying that you
lawyers who are hourly billing,

569
00:35:23,270 --> 00:35:25,280
you're all a bunch of
criminals. I'm not saying that.

570
00:35:25,430 --> 00:35:29,750
I'm saying there's a better way and you'll
be more attractive to your clients if

571
00:35:29,750 --> 00:35:34,670
you figure out a way to bill
on a value-based fee basis

572
00:35:34,670 --> 00:35:36,290
versus an hourly fee basis.

573
00:35:36,320 --> 00:35:39,750
And I don't want a questions in the
chat about what I just said. So please,

574
00:35:41,280 --> 00:35:43,830
I don't want to turn this into
an hourly billing conversation.

575
00:35:43,980 --> 00:35:46,620
We can have that over a
beer at an event sometime.

576
00:35:46,740 --> 00:35:49,290
It's just an example of
being contrarian, okay?

577
00:35:50,580 --> 00:35:53,280
Also commitment to something,

578
00:35:53,790 --> 00:35:57,990
sticking with something is a great
way to make sure you're first. Now,

579
00:35:58,380 --> 00:36:00,270
that seems like there's
some dissonance there.

580
00:36:00,780 --> 00:36:04,110
How can you be committed to
something and still be first?

581
00:36:04,110 --> 00:36:07,560
How can you be in something for the
long term and still be first? Well,

582
00:36:09,000 --> 00:36:13,410
I made a statement at breakfast in
Miami last month in Hallandale Beach,

583
00:36:13,470 --> 00:36:15,810
and I said, the minute you quit,

584
00:36:15,870 --> 00:36:18,660
you realize that you were very
close to being successful.

585
00:36:18,840 --> 00:36:21,870
We always quit right before
we're successful at something,

586
00:36:22,050 --> 00:36:26,730
right before the process
kicks in and we're successful.

587
00:36:26,730 --> 00:36:28,920
That seems to be the moment
where most people quit.

588
00:36:29,520 --> 00:36:31,500
The longer you stay at something,

589
00:36:31,500 --> 00:36:35,880
the more chance you give yourself to be
introduced to someone who could be your

590
00:36:35,880 --> 00:36:36,780
next big client.

591
00:36:37,230 --> 00:36:41,520
So if you are focused on giving
speeches as a lead generation

592
00:36:41,520 --> 00:36:42,480
methodology,

593
00:36:42,960 --> 00:36:46,980
the day you stop giving speeches is the
day before you are going to meet your

594
00:36:46,980 --> 00:36:51,570
next big client, right? So if you
remain committed to a process,

595
00:36:52,080 --> 00:36:55,620
you will be first to someone. Eventually,

596
00:36:57,600 --> 00:37:01,500
Joe Diaggio had a saying,
and it was actually

597
00:37:03,420 --> 00:37:08,130
the first time he was quoted about
this was during a game where the

598
00:37:08,130 --> 00:37:12,360
Yankees were up by 11 runs and Diaggio
was still playing center field,

599
00:37:12,900 --> 00:37:17,310
and a line drive was hitting to the gap.
DiMaggio went on a full out sprint,

600
00:37:17,670 --> 00:37:20,430
laid out dove, and made a diving catch,

601
00:37:20,910 --> 00:37:25,320
and he caught the ball as he was diving
toward the left field side of center

602
00:37:25,320 --> 00:37:28,740
field, and he stood up and dusted
himself off. The crowd went nuts.

603
00:37:29,100 --> 00:37:33,780
The left fielder came over
and congratulated him on a
great catch and said, Hey,

604
00:37:33,780 --> 00:37:38,250
listen, you know we're up by 11 runs.
You don't have to kill yourself.

605
00:37:38,250 --> 00:37:42,300
Why would you kill yourself and lay
out like that and risk an injury?

606
00:37:42,990 --> 00:37:45,510
And he turned to the
left fielder and he said,

607
00:37:46,200 --> 00:37:50,070
there's somebody in the stands
who's never seen me play before,

608
00:37:50,370 --> 00:37:52,620
and this'll be their
first impression of me.

609
00:37:53,040 --> 00:37:56,370
I want them to understand
how I play the game.

610
00:37:57,930 --> 00:38:01,770
That's the level of commitment that we
need to have to what we do because every

611
00:38:01,770 --> 00:38:02,850
time we're in front of somebody,

612
00:38:02,850 --> 00:38:05,280
even though it's our hundredth
time of doing something,

613
00:38:05,670 --> 00:38:07,680
it's the first time
somebody's going to see us.

614
00:38:07,680 --> 00:38:11,640
So commitment can also help you be first.

615
00:38:12,480 --> 00:38:15,030
Commitment can also help you with primacy.

616
00:38:17,850 --> 00:38:18,683
Alright, recency.

617
00:38:21,150 --> 00:38:24,510
So there's an expression,

618
00:38:25,140 --> 00:38:28,110
I think it's a Buddhist expression
that when the student is ready,

619
00:38:28,110 --> 00:38:31,290
the teacher will arrive. Here's the thing.

620
00:38:32,190 --> 00:38:36,130
Anybody who's had kids or who has
a spouse or who's had a spouse,

621
00:38:38,050 --> 00:38:42,610
that repetition is your friend if you
want to make something happen, right?

622
00:38:42,940 --> 00:38:47,740
So your ability to say something over
and over again to people maybe in

623
00:38:47,740 --> 00:38:49,600
different ways, maybe the same way,

624
00:38:49,810 --> 00:38:52,300
is critical to your
ability to influence them.

625
00:38:52,510 --> 00:38:54,730
So if you want to
increase lifetime loyalty,

626
00:38:54,730 --> 00:38:59,710
what you need is you need to be able
to deliver your message over and over

627
00:38:59,710 --> 00:39:03,760
again. Here are the things you need
to do in order to do that. First,

628
00:39:03,760 --> 00:39:05,320
you need access to the person.

629
00:39:06,100 --> 00:39:10,180
You need to be able to be
considered a trusted advisor.

630
00:39:10,480 --> 00:39:15,250
You need to be able to connect
with them at a level where

631
00:39:15,280 --> 00:39:19,570
you can give them advice
on a regular basis,

632
00:39:19,600 --> 00:39:21,880
on a frequent basis.
So

633
00:39:24,410 --> 00:39:28,360
I was a trusted advisor to
a gentleman named Tim Lynch,

634
00:39:28,420 --> 00:39:32,350
who's the president of Offit Kerman,

635
00:39:32,350 --> 00:39:35,380
which is a good size
Mid-Atlantic based law firm.

636
00:39:36,310 --> 00:39:40,990
They're actually in LA too now,
but they're pretty much Maryland,

637
00:39:41,020 --> 00:39:42,850
Delaware, Virginia.

638
00:39:42,850 --> 00:39:45,340
They have an office in New York
and North and South Carolina.

639
00:39:45,850 --> 00:39:47,860
And Tim was my client.

640
00:39:48,160 --> 00:39:53,050
And what I told Tim over and over
again from the day that I met him

641
00:39:53,050 --> 00:39:57,730
was that the lawyer compensation
program that they had set

642
00:39:57,730 --> 00:40:02,560
up was not in alignment
with what their goals were.

643
00:40:02,590 --> 00:40:06,100
Their goals were to have
every lawyer develop business,

644
00:40:06,100 --> 00:40:09,430
and they wanted every lawyer to develop
at least enough business to cover the

645
00:40:09,430 --> 00:40:12,220
cost of that lawyer being in the law firm.

646
00:40:12,220 --> 00:40:14,530
So even quote unquote service partners,

647
00:40:14,770 --> 00:40:19,540
partners who were lawyers who just
worked on things that other people

648
00:40:19,540 --> 00:40:22,120
gave them, we wanted the service partners,

649
00:40:22,180 --> 00:40:26,410
even them to be productive and generate
enough business to make them profitable.

650
00:40:26,710 --> 00:40:27,940
So at the time,

651
00:40:28,360 --> 00:40:33,250
the dollar amount that each lawyer
costs the firm in hard costs

652
00:40:33,250 --> 00:40:36,280
was about $150,000, give or take.

653
00:40:37,360 --> 00:40:40,720
So they wanted each lawyer in the
firm to be able to generate at least

654
00:40:40,720 --> 00:40:45,640
$150,000 in new business so
that each lawyer would cover

655
00:40:45,640 --> 00:40:50,560
their own costs and then those that
were generating 3 million would provide

656
00:40:50,560 --> 00:40:53,680
profit to the firm. Those that
were service partners, at least,

657
00:40:53,680 --> 00:40:57,760
they would still be cost neutral and
they would be profit centers as well.

658
00:40:58,540 --> 00:41:02,800
What I said to Tim was, I said, listen,
you are not rewarding these people.

659
00:41:02,800 --> 00:41:03,430
There's no,

660
00:41:03,430 --> 00:41:08,290
everybody's paid on a flat
salary and their bonuses

661
00:41:08,290 --> 00:41:11,320
are based on hours billed. I said,

662
00:41:11,320 --> 00:41:15,400
there's no incentive structure for
these people. To develop new business,

663
00:41:15,970 --> 00:41:19,240
you have to do one of two things or both.

664
00:41:19,600 --> 00:41:24,160
You have to either set a floor where
if they don't generate $150,000 in

665
00:41:24,160 --> 00:41:27,460
business, at a minimum,
they'll be fired or

666
00:41:29,170 --> 00:41:33,920
set an incentive program where
those who generate $150,000 or

667
00:41:33,920 --> 00:41:38,750
more unlock a secondary incentive
where everything they bring

668
00:41:38,750 --> 00:41:42,740
in over and above that they get X
number of dollars or it unlocks a bonus

669
00:41:42,740 --> 00:41:47,510
structure. I said this to him when he
first brought me in to develop a business

670
00:41:47,510 --> 00:41:49,970
development training program for
the people in the firm. I said,

671
00:41:49,970 --> 00:41:53,990
if we don't tie compensation to this
business development training program,

672
00:41:54,170 --> 00:41:56,090
it's not going to be as effective.

673
00:41:56,210 --> 00:41:58,790
It's not going to achieve the
goals you want it to achieve.

674
00:41:59,030 --> 00:42:01,250
I said it to him on
day one, he ignored me.

675
00:42:02,720 --> 00:42:04,850
I had exposure to him on a monthly basis.

676
00:42:04,850 --> 00:42:08,450
We met face-to-face in his
office on a monthly basis.

677
00:42:08,600 --> 00:42:10,280
And over time,

678
00:42:10,280 --> 00:42:15,140
I started tailoring the message and
different ways, delivering the message,

679
00:42:15,320 --> 00:42:19,550
using examples over and over
again, different ways it took,

680
00:42:19,580 --> 00:42:20,840
delivering that message.

681
00:42:20,930 --> 00:42:25,610
No fewer than 18 times before he

682
00:42:25,610 --> 00:42:30,170
decided to change the compensation
structure. And he said to me,

683
00:42:30,170 --> 00:42:32,330
when he made the decision
to do it, he said,

684
00:42:32,330 --> 00:42:35,540
I know you've said this to me
a couple of times. He said,

685
00:42:35,600 --> 00:42:39,890
it's finally starting to resonate.
I had said it to him 18 times,

686
00:42:40,250 --> 00:42:43,610
and in his mind it was
only a couple of times.

687
00:42:44,090 --> 00:42:47,240
So the recency effect,

688
00:42:47,390 --> 00:42:52,370
the repetition effect
is a function of first

689
00:42:52,580 --> 00:42:57,380
having access to that person to
be able to deliver the message

690
00:42:57,380 --> 00:43:00,020
over and over again. Then second,

691
00:43:00,170 --> 00:43:03,710
having the credibility for them
to take the message seriously.

692
00:43:04,070 --> 00:43:06,260
So in the Tim Lynch example,

693
00:43:06,800 --> 00:43:09,890
I mentioned it to him the first
time when I first met him,

694
00:43:10,100 --> 00:43:14,180
I hadn't built up enough credibility for
him to take me seriously with regard to

695
00:43:14,180 --> 00:43:15,170
that message,

696
00:43:15,170 --> 00:43:19,280
yet I had credibility in the business
development space because he had seen me

697
00:43:19,280 --> 00:43:21,080
develop business for other firms,

698
00:43:21,350 --> 00:43:26,030
but I didn't have enough credibility
in the compensation space yet he had to

699
00:43:27,550 --> 00:43:30,410
see me do that, spend time with me.

700
00:43:30,980 --> 00:43:35,900
He had to realize that it was
practically possible to do this. So I

701
00:43:35,900 --> 00:43:38,690
had to demonstrate to him
that other firms had done it.

702
00:43:39,080 --> 00:43:41,030
It had to be practical advice.

703
00:43:41,150 --> 00:43:44,750
He had to understand that it
was possible for him to do it,

704
00:43:45,110 --> 00:43:49,940
and then I had to be bold
enough to ask him to make

705
00:43:49,940 --> 00:43:54,770
the change over and over
and over again as trusted

706
00:43:54,770 --> 00:43:55,700
advisors.

707
00:43:55,910 --> 00:43:59,690
We do that when we want our clients
to do something that's good for them.

708
00:43:59,840 --> 00:44:04,670
We also need to do it with business
development initiatives that are good for

709
00:44:04,670 --> 00:44:05,503
us.

710
00:44:06,230 --> 00:44:10,910
So there's a host of services you could
deliver for your clients that would be

711
00:44:10,910 --> 00:44:14,000
beneficial and you could get
paid for delivering them.

712
00:44:15,050 --> 00:44:18,560
Your clients don't know
about these services,

713
00:44:18,560 --> 00:44:20,060
so you need to start mentioning them.

714
00:44:20,720 --> 00:44:24,500
When I started consulting engagement
and when you onboard new clients,

715
00:44:24,620 --> 00:44:29,420
there should be a list of things those
clients should do. It should be 1, 2, 3,

716
00:44:29,420 --> 00:44:31,920
4, and five, and we're only
going to work on one right now,

717
00:44:32,160 --> 00:44:35,460
but you're going to need to do two,
three, and four eventually. Well,

718
00:44:35,460 --> 00:44:39,180
as you're working on one, you need
to continuously mention two, three,

719
00:44:39,180 --> 00:44:42,930
and four because that's what
you're going to work on next.

720
00:44:43,050 --> 00:44:45,720
It's good for the client, and
you're also going to get paid on it.

721
00:44:46,560 --> 00:44:50,730
So those of you who are IP attorneys,
you're out there, you onboard the client,

722
00:44:51,120 --> 00:44:54,390
and the client comes to you because let's
say they have a trademark they want to

723
00:44:54,390 --> 00:44:59,190
protect, right? And you're working
with them. You do the trademark search,

724
00:45:00,270 --> 00:45:03,090
they decide it's worth protecting.
You decide they can protect it.

725
00:45:03,090 --> 00:45:06,810
It's a good mark. You select the
categories, you protect it, you begin.

726
00:45:06,840 --> 00:45:08,940
You begin the process of protecting it.

727
00:45:10,410 --> 00:45:13,800
As you are talking to them
about protecting the trademark,

728
00:45:14,010 --> 00:45:18,360
you should be asking them what
their goals are for using the mark,

729
00:45:18,930 --> 00:45:23,760
because that could lead to
licensing down the road and

730
00:45:24,270 --> 00:45:25,770
who can do the licensing for them,

731
00:45:26,010 --> 00:45:29,820
why you as their trademark attorney?
And you can get paid for doing the

732
00:45:29,820 --> 00:45:30,540
licensing.

733
00:45:30,540 --> 00:45:35,310
And you should also talk to them about
monitoring the mark after it's protected.

734
00:45:35,880 --> 00:45:38,850
Why? Because if there's an infringement,

735
00:45:39,150 --> 00:45:42,540
you can write a cease and desist
letter, and if you do litigation,

736
00:45:42,720 --> 00:45:47,190
you can be involved in making
sure the infringement stops.

737
00:45:47,190 --> 00:45:50,460
And you can do that either through
licensing or through filing suit,

738
00:45:51,030 --> 00:45:55,050
all of which you can get paid
for. But in order to do that,

739
00:45:55,290 --> 00:46:00,030
you need the repetition of mentioning
these things to them over and over

740
00:46:00,030 --> 00:46:03,420
again as part of their business strategy.

741
00:46:03,960 --> 00:46:08,550
And that's where the recency
element comes into providing that

742
00:46:08,550 --> 00:46:10,470
message over and over again.

743
00:46:15,660 --> 00:46:17,940
Now, let's talk about emotional resonance.

744
00:46:19,670 --> 00:46:23,850
When you're delivering a
message to your clients,

745
00:46:24,750 --> 00:46:29,160
there needs to be emotional
resonance associated with it.

746
00:46:30,720 --> 00:46:35,070
You need to make the
folks feel a certain way,

747
00:46:36,180 --> 00:46:41,010
and the way you make 'em feel a
certain way is through making a genuine

748
00:46:41,010 --> 00:46:43,770
connection on a human level,

749
00:46:45,390 --> 00:46:50,190
differentiating yourself
and your services and by

750
00:46:50,250 --> 00:46:54,360
being intriguing. So
these are the elements.

751
00:46:54,360 --> 00:46:59,310
Now I'm going to stop the
screen share and I'll spend a

752
00:46:59,310 --> 00:47:00,960
couple of minutes talking about this,

753
00:47:00,960 --> 00:47:04,590
and then I'll take your questions about
everything that we've talked about

754
00:47:04,590 --> 00:47:05,370
today.

755
00:47:05,370 --> 00:47:08,940
And this is an ongoing discussion that
we're going to have continue to have.

756
00:47:09,810 --> 00:47:14,640
When you are delivering a message to your

757
00:47:14,640 --> 00:47:17,160
clients, to your prospective clients,

758
00:47:18,270 --> 00:47:21,870
and there's emotional
resonance associated with it,

759
00:47:22,650 --> 00:47:24,450
the clients are going to do two things.

760
00:47:25,200 --> 00:47:29,770
They're going to associate
you with the emotion that they

761
00:47:29,770 --> 00:47:30,603
feel,

762
00:47:31,120 --> 00:47:35,920
and they're going to associate the
potential outcome you can provide with the

763
00:47:36,250 --> 00:47:41,200
emotion that they feel.
So I'll give you a couple of examples

764
00:47:41,260 --> 00:47:45,520
and we can talk about what this means
to you and your business as you are

765
00:47:45,550 --> 00:47:49,420
thinking about developing your business
development strategies moving forward.

766
00:47:51,070 --> 00:47:55,660
If you want the easiest way to
motivate somebody to do something,

767
00:47:56,320 --> 00:47:57,610
you can scare the crap out of 'em.

768
00:47:59,350 --> 00:48:03,310
So scaring the crap out of
people works for certain things.

769
00:48:03,880 --> 00:48:06,100
So for example, you're going to see,

770
00:48:06,100 --> 00:48:08,530
and you're probably already seeing
a lot of political messaging,

771
00:48:08,530 --> 00:48:13,510
now we're going through the
most consequential election

772
00:48:14,020 --> 00:48:15,220
of our lifetime.

773
00:48:16,540 --> 00:48:19,210
I've been voting for 20 some odd years,

774
00:48:19,570 --> 00:48:24,250
and there wasn't ever an election that
wasn't the most consequential election of

775
00:48:24,250 --> 00:48:28,990
my lifetime. Now listen, you can
tell me, Hey, for these reasons,

776
00:48:28,990 --> 00:48:31,390
this election is more
important and that's fine.

777
00:48:32,230 --> 00:48:36,100
But the messaging of all political

778
00:48:36,100 --> 00:48:40,690
advertising these days is based on fear.

779
00:48:41,200 --> 00:48:45,730
They want you to act to move away from
something. Doesn't matter what side of

780
00:48:45,730 --> 00:48:46,930
the aisle you are on.

781
00:48:48,460 --> 00:48:52,960
Contrast that with the
messaging you get from a

782
00:48:52,960 --> 00:48:55,540
gym or a personal trainer.

783
00:48:56,170 --> 00:49:01,120
That message is all about
moving you toward a goal,

784
00:49:01,900 --> 00:49:04,870
moving you towards something
that's good for you,

785
00:49:05,020 --> 00:49:08,530
moving you towards something
that's beneficial for you.

786
00:49:09,760 --> 00:49:14,470
The way to make a real
connection with people is not

787
00:49:16,030 --> 00:49:20,650
to just throw those emotions out there
and hope that you can herd the cats

788
00:49:20,800 --> 00:49:24,280
in that direction because they're
all going to feel something.

789
00:49:25,090 --> 00:49:29,860
The way for us to do it in a business
development setting is for us to make that

790
00:49:29,860 --> 00:49:34,510
personal connection and for
people to be able to put

791
00:49:34,510 --> 00:49:39,370
themselves in our shoes and
move forward because they

792
00:49:39,370 --> 00:49:44,350
see themselves being driven by
the emotions that are created.

793
00:49:44,830 --> 00:49:45,940
Here is an example.

794
00:49:46,810 --> 00:49:51,070
You've all heard the reason why
I started my own business, well,

795
00:49:51,310 --> 00:49:54,070
most of you have. If you haven't,
I'll tell it in a truncated way.

796
00:49:54,370 --> 00:49:58,990
So I was a big ticket consultant
for gallops consulting business.

797
00:49:59,650 --> 00:50:04,570
The bulk of my job was to develop
new relationships with Fortune 100

798
00:50:04,570 --> 00:50:07,450
clients, scope out consulting engagements,

799
00:50:07,630 --> 00:50:12,010
and get senior level executives
to sign on the dotted line.

800
00:50:12,340 --> 00:50:14,890
Our minimum engagement fee
was a million dollars a year.

801
00:50:14,890 --> 00:50:19,150
I carried a book of business of 20
million bucks myself year over year,

802
00:50:19,270 --> 00:50:23,890
my team did over $250 million in annual

803
00:50:23,890 --> 00:50:24,723
revenue,

804
00:50:24,820 --> 00:50:29,570
and I was in the middle of doing an
engagement for Pfizer that was worth $10

805
00:50:29,570 --> 00:50:31,100
million for our firm.

806
00:50:31,640 --> 00:50:35,810
When I was going to a meeting at Pfizer's
office, it was a command performance.

807
00:50:35,810 --> 00:50:37,970
The CEO of Pfizer demanded to see me.

808
00:50:38,270 --> 00:50:42,050
I went out into the street to walk
the five blocks between my office and

809
00:50:42,050 --> 00:50:43,700
Pfizer's office in New York City,

810
00:50:44,000 --> 00:50:48,500
and I was struck by a taxi cab.
I was paralyzed from the armpits down.

811
00:50:48,860 --> 00:50:50,060
And at that moment,

812
00:50:50,120 --> 00:50:53,930
as I was strapped to a backboard
being wheeled down the hall of St.

813
00:50:53,930 --> 00:50:58,130
Vincent's Hospital on a gurney,
I realized that I was divorced.

814
00:50:58,130 --> 00:51:02,420
I was overweight. I was making a shit
ton of money, but my life was a shambles.

815
00:51:03,050 --> 00:51:06,680
I was miserable. And I thought to myself,

816
00:51:07,430 --> 00:51:10,730
what am I going to do if this is the
way my life is going to be from now on?

817
00:51:11,270 --> 00:51:14,660
And I did what most people do in that
moment. I made a deal with God and I said,

818
00:51:14,660 --> 00:51:16,490
if you let me out of this,
I'm going to make a change.

819
00:51:16,760 --> 00:51:19,850
And the change that I'm going to make
is I'm going to take control of my life

820
00:51:19,940 --> 00:51:22,820
and I am going to work to live.
I am not going to live to work.

821
00:51:22,820 --> 00:51:25,370
I'm going to do what I'm really passionate
about. I'm going to say no to any

822
00:51:25,370 --> 00:51:26,720
client at any time.

823
00:51:27,110 --> 00:51:31,940
I will structure my
business around my life so

824
00:51:31,940 --> 00:51:35,000
that I can live a life that's meaningful.

825
00:51:35,300 --> 00:51:40,280
I can live a life that
is one that will make me

826
00:51:40,280 --> 00:51:44,930
fulfilled personally. So that's
why I started my own business,

827
00:51:45,320 --> 00:51:49,310
and that's what I live
to help people do. Now,

828
00:51:49,730 --> 00:51:53,390
I live to help people build businesses
that will enable their lifestyle.

829
00:51:53,720 --> 00:51:57,290
Whether that means growing a huge business
or growing a business that's just big

830
00:51:57,290 --> 00:51:59,960
enough to give you what
you want out of life.

831
00:52:00,800 --> 00:52:04,820
So I tell that story in
every presentation I give.

832
00:52:04,910 --> 00:52:09,560
And what happens is people
attach the emotion that I

833
00:52:09,560 --> 00:52:14,480
convey in that story to
themselves and their journey

834
00:52:14,480 --> 00:52:17,570
in business. And what does that do?

835
00:52:18,020 --> 00:52:21,740
They project onto that story, whatever
they want from their business.

836
00:52:22,280 --> 00:52:25,310
So some CEOs project onto that.

837
00:52:25,340 --> 00:52:29,750
I want to have a hundred million dollars
business so that I can sell it and then

838
00:52:29,750 --> 00:52:34,610
start a foundation and
give desks to school kids

839
00:52:34,610 --> 00:52:38,180
in Kenya.
Some CEOs will project onto that.

840
00:52:38,180 --> 00:52:41,030
I want to do $2 million a
year in a lifestyle business,

841
00:52:41,090 --> 00:52:44,330
take every Friday off and coach
my kids' little league team,

842
00:52:46,220 --> 00:52:50,060
some CEOs project onto that shit.
I'm in the wrong business altogether.

843
00:52:50,120 --> 00:52:54,380
I don't need to get hit by a cab like
this guy did to figure out what I want to

844
00:52:54,560 --> 00:52:58,580
do with my life. I got to go figure that
out now because life is too important.

845
00:52:58,700 --> 00:53:02,630
Time is too short. I don't
want to waste that time, right?

846
00:53:03,080 --> 00:53:07,940
Three different people taking three
different messages away from the

847
00:53:07,940 --> 00:53:11,840
emotion that I projected. So I can
help all three of those people.

848
00:53:12,650 --> 00:53:17,330
But what they've taken away
from my story is the emotion,

849
00:53:17,540 --> 00:53:19,010
the emotional resonance.

850
00:53:19,190 --> 00:53:24,140
And as long as I continue
to be that person and

851
00:53:24,140 --> 00:53:26,310
have that emotional
connection with my client,

852
00:53:26,310 --> 00:53:30,240
that client will stay with me because my
mission and their mission are aligned.

853
00:53:31,290 --> 00:53:36,150
That's what emotional resonance
in the messaging is all about.

854
00:53:36,990 --> 00:53:41,640
Why did I share all of this with you
within the context of lifetime loyalty?

855
00:53:42,540 --> 00:53:47,460
I want you to think about primacy.
I want you to think about recency.

856
00:53:47,460 --> 00:53:51,630
I want you to think about emotional
resonance as it relates to how you're

857
00:53:51,630 --> 00:53:53,940
communicating with your
current clients. Now,

858
00:53:54,840 --> 00:53:59,760
don't worry about how to
communicate this in this way

859
00:53:59,850 --> 00:54:03,420
with prospects just yet.
I'll help you get there,

860
00:54:03,960 --> 00:54:08,910
but I want you to pick two or
three clients in your business and

861
00:54:08,910 --> 00:54:11,910
think about how you're
communicating with them,

862
00:54:12,270 --> 00:54:17,190
using the things we talked about
today so that you can make a deeper

863
00:54:17,190 --> 00:54:18,300
connection with them.

864
00:54:18,690 --> 00:54:21,810
Because here's what happens when
you make that deeper connection,

865
00:54:22,200 --> 00:54:27,030
the clients will come to you when they
have a problem, a concern, or a need,

866
00:54:27,300 --> 00:54:29,820
and they'll say, Hey, you know what,

867
00:54:29,820 --> 00:54:34,590
Paul? I was thinking about how I
can incorporate AI into what I'm

868
00:54:34,590 --> 00:54:38,790
doing right now. And I heard you
talk about AI a couple of times.

869
00:54:39,210 --> 00:54:42,540
What does AI look like
in other businesses?

870
00:54:42,750 --> 00:54:47,580
They're going to ask you for advice that
seemingly is outside of what you do,

871
00:54:47,730 --> 00:54:52,620
but that you can eventually help them
with. It's about deepening relationships.

872
00:54:52,770 --> 00:54:57,150
And once you master the deepening of
relationships with your current clients,

873
00:54:57,330 --> 00:55:02,190
then you can develop relationships with
prospects that will be deep right from

874
00:55:02,190 --> 00:55:06,420
the beginning. Does that make sense? Yeah.

875
00:55:07,290 --> 00:55:07,800
Alright.

876
00:55:07,800 --> 00:55:12,390
Any thoughts or any questions
before we wrap up for today?

877
00:55:12,630 --> 00:55:15,030
This will be available

878
00:55:18,450 --> 00:55:22,920
in learning management system
afterwards. Unfortunately,

879
00:55:22,920 --> 00:55:25,650
Nicola is the person who manages
the learning management system.

880
00:55:25,650 --> 00:55:28,620
So I'm going to stumble and bumble my way
through and I'll send you all an email

881
00:55:28,620 --> 00:55:31,110
with how you can access
it. Yes, Randy, please.

882
00:55:33,600 --> 00:55:38,220
Oh, I love this. I have so many notes
I took for myself. So thank you.

883
00:55:38,220 --> 00:55:42,810
This was a great topic. I think
the one I struggle with the most,

884
00:55:42,810 --> 00:55:47,010
especially since I said earlier, I'm
pivoting to a different client base,

885
00:55:47,010 --> 00:55:47,843
is access.

886
00:55:49,230 --> 00:55:52,260
So when you know your avatar,

887
00:55:52,260 --> 00:55:56,700
you know where you want to go,
figuring out the messaging,

888
00:55:57,690 --> 00:56:02,520
giving the credibility, all that stuff
can be that's doable, that's tangible,

889
00:56:02,760 --> 00:56:05,400
but it's the access piece
that I'm struggling with.

890
00:56:06,810 --> 00:56:11,190
How do you get to the right people
and then not just get to them,

891
00:56:11,190 --> 00:56:15,930
but this continuous relationship
that you talk about. The frequency?

892
00:56:16,380 --> 00:56:18,600
Yeah. Okay, so great question.

893
00:56:19,920 --> 00:56:23,710
So access comes in a
couple of different ways.

894
00:56:24,790 --> 00:56:29,590
You can build a brand that makes you
the go-to person for something in a

895
00:56:29,590 --> 00:56:33,610
very narrow niche. So let's say, I dunno,

896
00:56:33,910 --> 00:56:37,540
let's say give me an esoteric patent area.

897
00:56:38,290 --> 00:56:38,980
What does it really.

898
00:56:38,980 --> 00:56:40,600
Mean? Well, I can tell you my brand is,

899
00:56:41,940 --> 00:56:45,370
my brand is sas platform
software-based platform.

900
00:56:46,030 --> 00:56:48,400
Perfect. So for you,

901
00:56:50,020 --> 00:56:51,340
playing the long game,

902
00:56:52,030 --> 00:56:56,590
the long game way of getting
access to people would be

903
00:56:57,700 --> 00:57:01,900
writing papers in a narrow
area related to SaaS.

904
00:57:01,900 --> 00:57:05,950
Patents would be giving speeches at

905
00:57:05,950 --> 00:57:10,870
conferences where you may have
to do breakout room talks,

906
00:57:11,020 --> 00:57:13,420
and there may only be 15
people in the breakout rooms,

907
00:57:13,420 --> 00:57:18,010
but those are the ideal 15 people who
would be interested in your topic of

908
00:57:18,010 --> 00:57:22,930
patents for software as a service
or whatever topic you want to talk

909
00:57:22,930 --> 00:57:26,440
about. Whatever the topic is, I'm
just pulling stuff out of thin air.

910
00:57:28,850 --> 00:57:33,460
Start with a narrow niche that you can
dominate and you can become the go-to

911
00:57:33,460 --> 00:57:36,850
person for that. And people
will call you and they'll say,

912
00:57:36,850 --> 00:57:39,430
I heard you were the person
that I had to talk to.

913
00:57:39,610 --> 00:57:43,600
And that's how you get the
access to start to start.

914
00:57:44,890 --> 00:57:49,030
There's a broad way to do that. The broad
way to do that is get interviewed on

915
00:57:49,030 --> 00:57:52,690
CNBC for a specific topic and then
share that interview everywhere.

916
00:57:52,690 --> 00:57:56,380
And then you're the expert and people
will recognize you as the expert and

917
00:57:56,380 --> 00:57:57,213
they'll come to you.

918
00:57:57,490 --> 00:58:02,170
But the access can come first
from building that brand,

919
00:58:02,170 --> 00:58:06,190
starting in as narrow a niche as possible
and then work your way out. Second,

920
00:58:06,430 --> 00:58:09,910
go to the people around you who already
know you like you and trust you.

921
00:58:09,910 --> 00:58:12,040
So the people who you've
already built a brand with,

922
00:58:12,490 --> 00:58:16,450
tell us who you want to meet.
And then we go to those,

923
00:58:16,450 --> 00:58:21,370
let's say it's the CEO of a
local SaaS that's not a startup,

924
00:58:21,370 --> 00:58:26,170
but they're five years down the road and
they're just about to explode and maybe

925
00:58:26,170 --> 00:58:29,710
they don't have all their IP
protected. And I say, Randy,

926
00:58:30,310 --> 00:58:31,510
I know the perfect people.

927
00:58:31,510 --> 00:58:36,220
I introduce you as the intellectual
property attorney who understands their

928
00:58:36,220 --> 00:58:40,780
technology as well as they do.
So then I'm the one who gives you access.

929
00:58:40,780 --> 00:58:45,550
So those are the two ways to start the
long game is build the brand so that you

930
00:58:45,550 --> 00:58:49,600
become the go-to person and that
person and then you'll have access.

931
00:58:49,630 --> 00:58:51,730
They will always take your phone call.

932
00:58:52,750 --> 00:58:57,040
The quicker way is through
referrals where somebody says,

933
00:58:57,040 --> 00:59:01,600
Randy is the person. And
then here's the second thing.

934
00:59:02,620 --> 00:59:03,880
Once you get that meeting,

935
00:59:04,600 --> 00:59:08,230
the very first meeting that so I can
get you in a room with the CEO O of the

936
00:59:08,230 --> 00:59:12,610
company, you got to figure
out how you stay there,

937
00:59:12,640 --> 00:59:14,620
how you get that continued access.

938
00:59:15,160 --> 00:59:19,210
And it's not being pigeonholed
as the technology attorney,

939
00:59:19,480 --> 00:59:21,770
it's not being pigeonholed
as an attorney at all.

940
00:59:22,310 --> 00:59:25,430
It's the hackneyed expression
of becoming a trusted advisor.

941
00:59:26,390 --> 00:59:31,280
And my trick for doing that is asking
business related questions that

942
00:59:31,280 --> 00:59:33,650
they don't know the answers
to but they struggle with.

943
00:59:36,200 --> 00:59:40,580
And there are tricks of the trade that
I can teach and that I will be teaching

944
00:59:40,580 --> 00:59:44,150
all of you. For example, when I was
working with publicly traded companies,

945
00:59:44,510 --> 00:59:47,960
I would listen to every analyst
interview that was done.

946
00:59:47,960 --> 00:59:50,510
If I had a meeting with A
CEO or a C-level executive,

947
00:59:50,570 --> 00:59:54,350
I would listen to every analyst
interview that was done with that C-level

948
00:59:54,350 --> 00:59:55,160
executive.

949
00:59:55,160 --> 00:59:59,420
I would read everything in the industry
publications that was written about that

950
00:59:59,420 --> 01:00:00,253
executive.

951
01:00:00,350 --> 01:00:04,640
I would listen to their speeches
or watch their speeches at

952
01:00:04,640 --> 01:00:09,440
shareholders meetings and I would figure
out what their goals were as a CEO.

953
01:00:09,710 --> 01:00:13,880
I would look at what board of
directors members had said about them,

954
01:00:13,940 --> 01:00:17,030
understanding what their
pressure points were,

955
01:00:17,030 --> 01:00:18,650
what they were supposed to deliver on.

956
01:00:18,920 --> 01:00:23,300
And then I would go into those meetings
having done countless hours of research,

957
01:00:23,300 --> 01:00:27,920
and this is in a sales
meeting, so I'm doing 150,

958
01:00:27,920 --> 01:00:32,720
200 hours of research before going into
a sales meeting. I got 20 minutes with

959
01:00:32,720 --> 01:00:37,610
this guy and in that 20 minutes I got to
ask him questions that get him to think

960
01:00:37,610 --> 01:00:41,090
that I understand him and his
struggle and his industry,

961
01:00:42,140 --> 01:00:46,070
and he's going to want me to come back
and talk about this with him again.

962
01:00:47,750 --> 01:00:52,730
So the magic questions that I asked
at Pfizer at that meeting where I

963
01:00:52,730 --> 01:00:55,970
got that $10 million deal, I said to him,

964
01:00:57,650 --> 01:00:59,150
so the meeting went fine.

965
01:00:59,150 --> 01:01:04,040
I went in to pitch a study on
Lipitor and keeping physicians

966
01:01:04,640 --> 01:01:08,060
writing scripts for Lipitor after
Lipitor went off of patent protection.

967
01:01:08,090 --> 01:01:12,110
And this was six years before Lipitor
was due to go off of patent protection,

968
01:01:12,680 --> 01:01:15,860
but I knew there was more we
could do. So I did a Colombo,

969
01:01:15,950 --> 01:01:19,580
those of you who've ever watched Colombo.
At the end of the meeting, I went, oh,

970
01:01:20,720 --> 01:01:23,210
CEO was Jeff Kinler. Oh, Jeff,
by the way, one more thing.

971
01:01:24,980 --> 01:01:29,450
I was listening to the analyst call You
were on last month and something came up

972
01:01:29,570 --> 01:01:34,460
that was concerning to me. And he Snickers
because he's such an arrogant guy,

973
01:01:34,760 --> 01:01:39,740
he Snickers and he says,
what was that? And I said,

974
01:01:40,280 --> 01:01:41,120
given

975
01:01:43,430 --> 01:01:48,410
the budget cuts and the lack of investment
that you guys are making in r and d

976
01:01:49,040 --> 01:01:50,780
in the upcoming three year window,

977
01:01:51,230 --> 01:01:53,300
how are you going to keep
your best scientists,

978
01:01:53,540 --> 01:01:56,180
your best r and d people
from walking out the door?

979
01:01:57,890 --> 01:01:59,420
And his jaw dropped.

980
01:02:03,350 --> 01:02:07,580
He's like, you asked me when we started
this meeting, what keeps me up at night?

981
01:02:07,610 --> 01:02:10,100
He's like, that's the thing
that keeps me up at night.

982
01:02:11,210 --> 01:02:14,330
And I'm literally leaving.
I got my partner James,

983
01:02:14,330 --> 01:02:16,250
and I got my briefcase in my hand.

984
01:02:16,460 --> 01:02:20,550
The assistant has my coat in her arm and
she's opening the door to the office.

985
01:02:21,030 --> 01:02:24,480
And I said, if you want some help
with that. We should talk some more.

986
01:02:25,140 --> 01:02:27,960
And I said, have a good weekend. This is
a Friday. I said, have a good weekend.

987
01:02:27,960 --> 01:02:31,470
And I turned and walked out the door
and we're walking down the hall and the

988
01:02:31,470 --> 01:02:34,410
assistant grabs us and she goes,
can you come back here for a minute?

989
01:02:35,790 --> 01:02:37,170
I go back in the office. He's like,

990
01:02:37,170 --> 01:02:39,210
what did you mean by we should
talk some more? I said, well,

991
01:02:40,380 --> 01:02:45,270
we build programs based
on high level talent

992
01:02:45,270 --> 01:02:47,730
retention.
I said, that's really what we do.

993
01:02:47,730 --> 01:02:52,020
We do studies on programs like
Lipitor and all that stuff. I said,

994
01:02:52,020 --> 01:02:56,760
but we do do things like help
people retain top talent.

995
01:02:56,970 --> 01:03:01,380
We also, by the way, help people
recruit and acquire top talent.

996
01:03:01,920 --> 01:03:05,070
I said, so if you're ever interested
in that, we could do that too. He said,

997
01:03:05,070 --> 01:03:07,980
we need to set up a separate meeting, and
he turns to his assistant and he says,

998
01:03:08,160 --> 01:03:11,910
will you go with Andrea and schedule
a separate meeting for that?

999
01:03:12,330 --> 01:03:17,280
The only reason I knew to ask that
was because I had done that like 200

1000
01:03:17,280 --> 01:03:19,710
hours of research in advance.

1001
01:03:20,640 --> 01:03:25,380
So anytime I had a conversation
with this guy after

1002
01:03:25,380 --> 01:03:28,770
that and I asked him a question,
he always paid attention,

1003
01:03:28,830 --> 01:03:31,890
and if I wanted a meeting with him,
I could get a meeting with him.

1004
01:03:31,890 --> 01:03:33,600
Sometimes it was two or three weeks,

1005
01:03:33,930 --> 01:03:38,850
but he's a CEO of a Fortune 50 company.
I was able to get that access

1006
01:03:38,850 --> 01:03:43,050
because he thought I
was an industry insider.

1007
01:03:43,200 --> 01:03:45,990
I had that specific knowledge,

1008
01:03:46,350 --> 01:03:50,130
I had that situational
expertise. We get intimidated.

1009
01:03:50,340 --> 01:03:54,480
Oftentimes we get intimidated because
the people that we're pitching to or the

1010
01:03:54,480 --> 01:03:58,290
people that we want to work with are
these sophisticated business people,

1011
01:03:58,380 --> 01:04:02,970
or they're high net worth people
or they're CEOs when the reality

1012
01:04:02,970 --> 01:04:07,860
is the reason that we're in front of
them is because we have situational

1013
01:04:07,860 --> 01:04:09,990
expertise that they need.

1014
01:04:11,670 --> 01:04:13,500
So for us,

1015
01:04:13,950 --> 01:04:17,730
we get access when they
have a problem in our area,

1016
01:04:17,880 --> 01:04:22,710
and the best that we can hope for is
where the name they think of when they

1017
01:04:22,710 --> 01:04:26,520
have a problem in that area and where
the only name they think of or where the

1018
01:04:26,520 --> 01:04:30,000
first name they think of or where
the most trusted name they think of.

1019
01:04:30,510 --> 01:04:34,200
So what I did in that moment is I took,

1020
01:04:35,040 --> 01:04:37,170
this guy has two problems
that he has to solve,

1021
01:04:37,170 --> 01:04:41,640
right? He needs to sell more
drugs and he needs to invent new

1022
01:04:41,640 --> 01:04:42,420
drugs,

1023
01:04:42,420 --> 01:04:47,160
and he just decided that he was going
to cut his r and d budget over the next

1024
01:04:47,160 --> 01:04:49,140
three years. Well,

1025
01:04:49,140 --> 01:04:52,620
or the company necessitated that he was
going to cut his r and d budget over the

1026
01:04:52,620 --> 01:04:53,453
next three years.

1027
01:04:53,640 --> 01:04:58,320
So how is he going to keep these
geniuses who are inventing stuff?

1028
01:04:59,430 --> 01:05:02,160
How are they going to keep inventing
stuff if he's not going to have enough

1029
01:05:02,160 --> 01:05:04,110
money to retain them?

1030
01:05:04,530 --> 01:05:07,230
I knew that was something that
was going to keep him up at night.

1031
01:05:07,230 --> 01:05:09,390
I asked the question,
it made me in his mind,

1032
01:05:09,390 --> 01:05:11,640
a situational expert in this topic.

1033
01:05:12,000 --> 01:05:15,420
So as long as he's interested
in that topic, I get access.

1034
01:05:15,420 --> 01:05:17,650
So long-winded way of saying,

1035
01:05:17,650 --> 01:05:22,360
use your situational expertise
to be the go-to person and

1036
01:05:22,360 --> 01:05:25,450
then get referred in the
short term. In the long term,

1037
01:05:25,450 --> 01:05:29,860
create a brand that
clearly defines you as the

1038
01:05:29,860 --> 01:05:31,180
situational expert.

1039
01:05:34,960 --> 01:05:35,793
Is that good?

1040
01:05:36,520 --> 01:05:37,360
That was great. Thank you.

1041
01:05:37,630 --> 01:05:38,360
Okay. Sure.