Chapter 4: Why You MUST Develop What NetFlix, Blockbuster, McDonalds And Thousands Of Other Successful Business Have: Revenue Generating Back-End Systems!

Chapter 4: Why You MUST Develop What

NetFlix, Blockbuster, McDonalds And Thousands Of Other Successful Business Have: Revenue

Generating Back-End Systems!

I am convinced that there are two primary reasons we have such a high drop out and failure rate in this business:

#1…failure to learn the science of marketing!

#2 …is the failure to implement back-end up-sell “systems”!

Like mentioned earlier, failure in these two areas alone is why most guys in this business totally end up washing out!

Think about it, think about ANY really successful business for a moment. What you will find in practically every case is a business that has mastered both the art and science of these two points.

Your business is NO exception!

So, mastering the science of marketing is mission critical.

And the up-sell or the back-end is an absolute must, in as far as the largest share of your long term profitability and survivability is concerned.

However, as I mentioned earlier, mastering the science of marketing is beyond the scope of this course since it is that this course very narrowly focuses on the implementation of a very powerful back-end system – your up-sell!

 However, since the subject of marketing is very much passion of mine, we will visit the subject here and there throughout this course.

 So at this point, allow me to begin by saying this fundamental truth:

Achieving a much higher level of prosperity and lasting success in your business means that you need to do much more than just constantly chase after the next new client!

If it is that this is pretty much all you’ve been doing, then what’s happened is you’ve likely missed out on 80-90% of what could be!

So if you want a bright, exciting and lasting future in this business, you’ve need to develop what Blockbuster, what NetFlix, what Ford and what McDonalds have all figured out — and that is your up-sell — your back end processes and systems!

This is an area that industry wide, is terribly underdeveloped in fact, practically nonexistent in the typical agent and advisors business!

And I think there’s several reasons this may be the case.

One may be because of the inherent, independent nature of “US”, and this business. Many of us are “independent agents and advisors” and as a result we have this MAVERICK kind of mind set and because of this “maverickness”, we get isolated and end up with a huge void when it comes to developing “business systems”, and systems is an area where significant HUGE leverage is found.

(Thus the reason for the Asset Transformation Club… the brainstorming hangout for maverick financial services agents and advisros.)

And so your “business systems” and implementing such is what I want to talk to you about at this point.

Specifically what were going to look at here is the Asset Transformation “System” which allows you to INSTANTLY develop a very powerful up-sell back-end revenue model — with and though your existing client relationships.

So, the “mind-set” shift to make here is to realize that this area – the back-end –  is where the REAL treasure is in any successful business.

And do allow me to add this thought:

There is no better new business candidate or prospect to go see than those who have already purchased from you!

I mean think about it.

Consider, every single one of your existing clients and what it is you have already put behind you in as far as the front-end heavy lifting is concerned:

1. New client acquisition costs.

1. Relationship building.

1. Trust.

1. Product or service purchase.

1. Initial round of post-sale service.

Every one of these points are great things that you have already accomplished, which has netted you a proven buyer. But, all of these are very costly in both time and resource, and in all reality a significant “investment” on your behalf.

So what we typically do after all of this accomplishment and hard work is we go back and work hard and we repeat this “costly and time consuming” process all over again, again and again.

Producing new client after new client after new client…

And that is needed and that is a very good thing.

And if you are a MASTER at this – congratulations! Because you have mastered the most difficult part of any business.

But you have only begun to scratch the surface and crack the code as far as potential revenue is concerned.

What you have done is you have made a significant time and resource investment in each of these relationships. But it is likely is NOT being leveraged! And if you’re like the typical agent and advisor, you’re not leveraging that investment AT ALL!

Again, there is no better prospect to go see than someone who has already purchased from you!

There is no one easier to up-sell than an already proven buyer simply because all of the heavy front-end relational issues are already behind you.

This is the activity that EVERY successful business maximizes in order to establish maximum profitability and longevity. Which includes your product vendors!

In fact, many businesses intentionally plan on losing money and will go into the red while creating the customer — the first sale — knowing that profitability begins with sale 2 or 3.

Thus they focus their efforts on creating powerful back-end revenue generating business up-sell systems that keeps their initial front-end investment of time and capital producing revenue over and over and over.

Here’s the huge benefit to all of this: All of these additional sales that are made, are all made at very low, almost no cost in most cases!

And that is a proven business model that you will now be able to implement with what you are holding in your hands – the Asset Transformation system – and likely the only way you can do that in this business.

Again the “mind set” shift to make is to realize that having a system in place to leverage this area is where the REAL money is in your business.

All of this is stated very well by Michael Gerber – who wrote the book “The E Myth” and who is a leading authority in the area of business and business development.

He writes of the concept of what he calls the “Franchise Prototype”, and so he goes on to say in his book that 80% of independently owned businesses fail within the first five years — and that by the way is the category we find ourselves in — as compared to franchise operations where 75% of Franchise businesses actually succeed!

And the reason for this high level of success that franchise operations enjoy is what he refers to as this “Franchise Prototype”, and he goes on to say that what the Franchise Prototype is, is a tested, proven, working model that creates a disciplined working “system” out of what was essentially chaos. And once having the system or the prototype completed, the system then runs the business, and instead of running the business by the “seat of your pants”, the system becomes the solution to the problems that beset the business and transforms the business into a machine driven by the integrity of the parts of the system, all working together in concert toward a realized objective.

Essentially the system is a “proprietary” way of doing business that successfully and preferentially differentiates every extraordinary business from its lesser competitors…

The bottom line is the “System” … IS the strategic advantage!

He goes on to talk about how at Ray Kroc’s McDonald’s, every possible detail of the business was first tested, perfected and fine tuned in the prototype before rolled out to the franchisee’s.

And thus the name “turn-key operation”.

The franchisee acquires the rights to use the system, learns how to run it, and then “turns the key” and the system does the rest!

And the franchisee’s love it and as a result, they enjoy a HUGE 75% success rate in their businesses.

And that is what the “Franchise Prototype” is all about.

Unfortunately, the Franchise Prototype is almost a non-existent concept in the world of the independent agent and advisor, and is one of the most significant reasons for a lot of hardship and the high failure rate we see in this industry.

And so if you’re like most agents and advisors, not having what Michael Gerber talks about might very well be the reason you’re at a sticking point. This feeling of like “you’re being held back” might very well be because of lack of the “Prototype” the lack of “Systems” the lack of proven models in your business that actually work.

And so that’s what the Asset Transformation “SYSTEM” is all about and once you put the “Prototype” to work for you, you’ll be building on something that is already proven, that is much more predictable, that’s more profitable, something that will dramatically increase your odds of success and longevity, and something that gives you huge leverage and freedom so that you can live a fuller life!

And so basically what Michael Gerber goes on to say in his book The E-Myth is that the highest ROI thing in business, the highest ROI thing you can invest in universally is “Systems” and “Training.”

The more I thought about this the more I realized well …duhhh! Of course it is because look at what franchise operations enjoy as compared to what is lacking in typical agent and advisors business!

And so if we don’t install systems and better methods then were not going to work better and were going to stay stuck, or eventually run into serious trouble.

And the old days of trying to figure it out through trial and error, that’s the way to get left behind!

And so what I’ve done here with the Asset Transformation system is I’ve invested in the very best, creating the best “Prototype System” for agents and advisors that’s EVER been produced.

So you now have what all franchise operations enjoy – your very own back-end up-sell “prototype system”!

Again, as a reminder, here is what you can expect of “Asset Transformation”:

It is a “system” that by default and through the use of it, positions you to “Give” into the lives of others that which is of value. And by default, and through the use of it, positions you to “Be Given Unto”. Only because you first “Give”!