The Maths and Psychology of Profitable Businesses

by Mal Emery

The who is far more important than the what. We are all about the who, which of course allows us to niche market. Riches are in the niches, so we want to find a niche that is an inch wide but a mile deep.

We were doing some business in the cellulite niche. So then we sell our cellulite thing but then can we sell them all the other products once they’ve come in? Our back end services? Yeah. So we go out with a free report, a free DVD on the subject. Our competitors run an ad that says come to our salon today and we’ll have a look at your cellulite. We say, free report reveals…

We get 300 calls and they get 3. They get the 3 hot and heavy’s and we market to them for life. Which would you prefer folks economically? So most people in business are an inch deep and a mile wide. So it dramatically affects your economics, dramatically takes your message to market match. In fact, again any argument against niche is a poor argument.

So what we do is we look at what you’re doing and we focus in on the main thing where the money comes from. We know that 80% of your business comes from 20% of your products or services and maybe 95/5. So we might focus in on the 5% and that’s what produces 95% of your wealth. And that’s our marketing message. It’s born out of that process.

Losing economic model, you can’t win catering to the majority. It is simply impossible. It’s a losing model folks. If you’re doing it now I’d suggest you find a way to stop it.

The world’s best marketing message I know better than the world’s worst marketing message if it falls on deaf ears. So if we put our message into a cluttered environment where our prospect doesn’t show up, it won’t matter how good we are at this. If the people aren’t there it’s not going to happen.

Gary Halpert, the late great Gary Halpert, used to express it this way, he said we’re going to open a restaurant and you can have anything you can possibly conceive to make that restaurant successful. What would they be?

Here is what I want, here is what Gary Halpert says you want and he’s right, a starving crowd. Not a crowd but a starving crowd. That is why niche is so critically important. You want a bunch of starving people.

So math and psychology these are some of the core ingredients of what my clients will put everything through before they attempt any business. The psychology is the lass who might suffer from cellulite; the mathematics is what we can charge to cure that problem.

There is a thing called multiplying the zeroes. Most people who want to get rich are in a sense using a $2 product, whatever rich means. What I would rather do is have a $4,000 product because when you do the math on a $4,000 product, how many do you need to sell as opposed to a $2 product? Here is what else we know; we have to work just as hard to sell a $2 product as to sell a $4,000 product. So if you’re intent on creating wealth and success, which would you choose?

Put yourself in a position where it’s hard to lose. You can’t substitute great math for bad psychology.

And conversely you can’t substitute great marketing for bad mathematics. The most futile, wasteful thing you can do in marketing is 1-shot advertising. If you go grab the paper today, go grab it on the weekend you’ll see that everyone is essentially an advertising and marketing victim. They’re dependent upon that message arriving on the day and being seen through the clutter and getting in front of a prospect who is hot and heavy. Good luck!!

If you want impact you want strategic repetition. We would rather you have 100 sequenced then 1000 once. We know the money is in repetition.

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Dates and Locations:
Brisbane 31st August 2010
Sydney 2nd September 2010
Melbourne 6th September 2010
Perth 9th September 2010
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