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Hi, this is Rajat from Startup Frat. Today I wanna share with you a story. This is the story of the media industry or the cinema industry. Back in the old days 200 – 300 years back. What used to happen was? Small natak companies or small in the US like mine companies in India were called the Natak Company or whatever or it is. Natak company (Drama company) goes from village to village every two to three weeks and they would have a showing of a particular play for 3 nights a week or 1 week for 3 nights per week or two weeks. And then people would actually go and pay and actually watch the natak. In those times basically, the people who could actually pay money to watch natak, you know only the upper-middle class or the Richard people because everybody did not have that kind of money for entertainment.

Then maybe the poor people would be sitting on the outskirts just watching from a distance because they could not pay money to get inside the arena. There was no arena, it was just a field and they would setup like this little stage with some curtains and then they would have the natak in there. So, the rich people are buying and the people who were doing the natak were typically either migratory kind of people like gypsies or something or they would be you know people are not very you know that’s why they got a follow lifestyle where they literally live on the road. The whole natak company with his 5 – 10 actors would actually go from town to town to town and 2- 6 months or 9 months of this stuff. Much like the rock bands of later years.

So, that’s how they would do this stuff. They were the poor people and the people who had actually afforded to watch were the rich people. Now what happened over a period of time was cinema halls came in. So, you could actually record natak and then take that fill and literally play in different different theatres. So over a period of time whoever had the rights to that film, Whoever own that film, the producer of the film, or if there were certain actors who had that and of brand value, they over a period of time got richer and richer. If you look at some of the interviews of old Bollywood actors, back in Dilip Kumar’s time and all of these you will realize that they were not really very rich at that time but they were much better off than the natak companies. So, you’ll never hear them saying I am and I was driving all the beautiful cars and all that because in those times distribution had not reached a scale that it later reached later years you know during Rajesh Khanna time or something like that.

What happened was these people were better off they could live in Bombay which is very good and then they got their roles in the movie. There were supposed to be no great shakes at that time. But over a period of time as theatre started getting built all over the place and more and more people started getting the access they became more famous over time. Then came you know the nationwide distribution through PVR through INOX and things like that. You know the Anil Ambani company and all that. All of the nation by a distribution which means if you produced a movie, the unit would get nationwide distribution and the producers could really get very rich and especially the actors started getting a little bit stake in the movies just to put their brand on it and then over a period of time the smarter actors they started producing their own movies.

So, they had access to all of this distribution network all over the country, and whoever owned the product that was being distributed you know they would get very rich. The smartest of these actors actually started their own production and distribution companies so what they could do they could actually be produced some movie create a movie that would start and it themselves they didn’t have to pay anybody else. Then they would go ahead and distribute you know the whole thing in there you know in their span of control. While also tying up with the big National level company like PVR like you know Anil Ambani company and all of that. Basically, have nature invite distribution.

Rows of red seats in a theater

The smartest of them said hey we have the huge Indian diaspora that lives in the middle east we have this huge Indian diaspora that lives in the US we have this huge you know we have we could have demand for Indian movies lets in China because you know Chinese were consuming entertainment at that time a lot. And they had their own types of movies, but if you release a Bollywood movie over there with all kinds of action and kinds of song and dance in all of that requires like a new thing for them. So, you know we got a lot of distribution in China. The smartest of these people you know are people like Aamir Khan and you know people like Salman Khan and Shahrukh Khan, people who had more control over their own distribution. They became hundreds of crorepatis. Fast forward to today, if you see the average person who goes to a theatre maybe they are not even upper middle class not all of them. Very well done a lot of them were literally like students they have no money a lot of them are actually lower middle class but you know they just need the entertainment so they go and watch a movie even though they may not be able to afford the 150 bucks ticket all the time.

So you see the mixed crowd inside the theatre. At any level regardless of their middle-class rich people poor people whatever all-inclusive. Who is the richest of them all is the person on the screen the “Natak Wala”. Natak wala becomes richer and richer and richer to a point that they are now worth 100 crore Rupees. Did you know, In fact they pay like 40 50 crore rupees in income taxes? So you can just imagine the amount of scale that they have. The best part of the worst part is if you compare the quality of these movies with actual Hollywood-level movies. The quad is mediocre at best, That’s what I would like to say. Mediocre, you see some of these movies the graphic editing is terrible as compared to Hollywood movie. The storyline is literally non-existent as compared to any Hollywood movie.

Real creativity is, I would like to say again this is my personal opinion and I don’t wanna bit anyone down. But we are not the best product in the market. Some of these people are among the richest people in that industry globally there are richer than the Americans Starts and all of that. Why is that so that brings me to the billion-dollar secret, my friend? The billion-dollar secret is your product doesn’t need to be like the best you don’t need to focus on the product to the point that it becomes the best and basically you know just a waste of time doing that. Your product needs to be good enough to be in the market. And then what you need to do my friend is the distribution you need to focus on distribution. You need to get to as many people as possible as fast as possible that you got a focus on. Now imagine if we add a little product and instead of going through the entire sales process manually and figuring out your best customers and pandering to them and negotiating with on the rates and dealing with all the customer issues etc.

Assuming the product by self is good or not the best but good. So there should be no customer issues but sometimes when customers know, they can wound their little finger, they probably will. What if you could bypass this whole thing or short circuit this learning process and get to the global level distribution today. With your product marketing, services, or whatever it is. Chances are whoever plays this game most efficiently today will be the Aamir khan of tomorrow.

You know in whatever Industry you are in that is the billion-dollar secret. Distribution my friend is the billion-dollar secret. Now in the old day, people who did not even produce products became the biggest companies on the planet. People like Walmart didn’t produce anything on their own. They just make sure they built the biggest distribution channel here on planet earth. Today it is Amazon even in the movie business you know you have the movie distributors and all of that. So, people who invest in distribution, grow bigger than the people who create the best possible product.

If you have your own product and you build your own distribution you will be absolutely unbeatable in the market of tomorrow my friend. That is the billion-dollar secret. If this interests you and you would like to know more about it. What I would like to do is, I would like to go to startupfrat.club/live. I am having a live session where I am teaching people how this can be done in different different industries and how we have been able to do this so the past 6 to 8 months and literally every possible industry you can hear of. In travel in hospitality, food in art in logistics in creative work. If you have a nice idea to have a passion or if you have a product that needs to be taken to the market in a big way. how do you can re-engineer this whole process? and do it for yourself and how you can be the dominant force in your market of tomorrow? ok so if this interests you hit that link and come and see my life bye-bye.

Hi there, Rajat here from Startup Frat. Today we’re gonna talk about is the price of success. First of all, thank you very much for the people who have been sending in questions comments. via the comments column and via emails to me. Saying, hey man congratulation to Ritu’s export collection, Ritus business, etc. Well, she has been doing classes for a while now. We just thought that on the occasion of the release of the export collection would be like the best time to showcase a story and struggles and all of that. But thank you for your comments and for the people who want to know hey what all went behind like the mechanics and all of this. You know how she was able to make the change etc.

I just want to share this information with all of you. For the people who have been asking him what does it take. I want to see you, you know I want to see the journey. So, why I can mentally adjust to it. I don’t want any surprises so you know I don’t wanna lose the team halfway through the journey. So, you know since you’ve seen the journey and would you be able to tell me what the journey is like. As usual, I am gonna just tell you through the means of a story, If that is ok with you. So, what’s the story, I went to a shopping mall once and I was shopping for some essentials and everything you know stuff that you need to run your daily households like groceries and things like that. And I just found a couple of things that I really really like, let us call them item – A, item – B and then item – A price was not written, they had the barcode things sometimes they don’t have the price on it. You got to get all the way to the IL to find out the price on it. And then the item is you know the price was written. I think he was a box of like this we have these new Havmor chocolate cake ice cream it’s like cake and they got ice cream over it and got chocolate nudges and all. It’s really nice item.

So, this thing was like 499 or something like somewhere in that range, and the other thing I forget what it was. But it didn’t have the price written on it. And then basically I got in line I thought this other thing. I think this other thing was also like some sweet biscuits. I love a sweet man. I just absolutely love sweet. So, I thought this must be in the price same price range 400-500 bucks. I got both of these in my cart had some household essentials and all of that and then I went to pay for it and there was a long line so I was like you know how to get in line? I hate getting in line. So, I have to wait in line for a while and you know it took longer I thought maybe it’s gonna take 20 min and you know it took like 30 – 32 minutes. And by the time my chance came to pay for the stuff in my cart. I realized 2 things. Item – A is more like 1200 bucks way more expensive than I had imagined and another item – B is for of course 499 bucks. but then I realize man you know I want the item – A and then you know I said this Item – B means Ice Cream Sandwich is not really something that you know that I want to have right now. Because like too loaded with sugar is too rich and you know I am gonna get a scolding from my wife and I get home. So, I decided not to take item – B.

I did have to decide as at ok I am will take this item – A and that take the Danish and then I unite to go to the side of Danish pay 1200 bucks for it now went home. Now, why I am telling you this story? Life my friend is like a trip to the shopping mall. Everything you want is available everything you need is available and sometimes you see things that you think didn’t think you need are you want and there are also available. Everything is available in a shopping mall. What do you have to do in order to get them? There are things that you need on a daily basis you know what the cost you pay the price for them your move out, life is good there is no problem.

Sometimes you see things that you like that you haven’t seen before. You put them in your cart and you go to the checkout counter and it takes longer than you expected to show up on the other side. Lake takes longer than you expected to show up on the other side. Now you have two choices. What you can do is, leave the cart over there and leave the shopping mall in half which I do sometimes, you know I hate still standing in line at the shopping mall also something I just leave it and I walk off. So, you got us you can stand in line and you got await your turn and then when you reach the cash counter you gotta be ready to pay the price. you gotta willing to sell the price out again sometimes the price is not written on the label. You just gotta stand in line, wait your turn and sometimes it takes longer than expected and sometimes the price is higher than expected and then if you bide your time, you know to wait your turn and the pay the full price you show up on the other side and you will have whatever it is that you wanted. But then again, the price to be paid is very simple.

Somebody said, hey what’s the price to be paid I would like to know right now. I will tell you now for sure. You have to bide your time, You got a stand-in line which is patience and the third is the price has to be paid. The price again is paid in time which means you didn’t have to bide your time it is paid in focus. Because these days you can achieve whatever you want the difference between you and the first generation billionaires of today that we are lucky to be sharing the planet with because we can see the stories we can see the people we can see them on YouTube every day.

People like Bill Gates, Elon Musk, Jeff Bezos people like this on YouTube literally every day. You can learn from them you can see it happening in front of your eyes you can see the greatness being born and established in front of your eyes. With people that you didn’t know yesterday and boom 8 years 10 years you know the world’s richest people in all that right. So, time focus on the difference between them and us the difference between people watching billionaire status at a speed of 10 years 20 years whatever. Ask we have been on the planet for 20 years plus, the difference between them and us is the focus. And the third thing definitely is effort. All of us are doing the same effort. I pretty much can bet I worked harder than Bill Gates man.

I am putting on 12 to 14 hours a day. I can bet you know. Maybe he works a little harder than me, I don’t know. All of us have 24 hours in a day. It’s a question of what we do with it? They are putting it in efforts, in a focus passion towards their goal. The only difference between billionaires and us is line longer with the same resolve than we do sometimes we get in half. We drop the cart and say ok I don’t want this I am heading out. Sometimes we reach the cash counter and we find the price to be paid is higher than what we expected. There is a choice at that time, you can drop the thing or you can still choose to pay the higher price. You got abide your time, you got a wait in line. When you reach the cash counter the price has to be paid in full and sometimes the price is not written on the label.

So, that was my short and sweet lesson on some of your questions. I would definitely love to answer in a lot greater detail.

This is Rajat from Startup Frat. Today I have a very special blog very different from the usual blog that we do when we talk about tips and techniques and you know Strategies and all for sales and marketing for growing your business. But today I have a different kind of content. I hope it resonates with you. If it doesn’t resonate with you, it will improve your understanding of the market guaranteed as usual. But there are a lot of chances you may not understand humans do not resonate with this content. This is not about any tips and tricks any strategies whatsoever. I just wanted to address some questions and all that I’ve been getting over the last 3-to 4 days. I just wanted to put things in perspective because our discussions may be going in a kind of a direction where I cannot support you.

So lots of people have sent me different questions saying, hey I have this kind of a business. What do I need to do this kind of business? What do I need to do to become successful? and those questions are very very welcome. I always respond to emails and I usually try to make videos or respond to your comments individually giving your certain tips and techniques. However, whether these tips or techniques, or strategies will work for you are not or in your industry or not. There is no guarantee. Whether your industry will survive in the next 5 years or 10 years or not. There is no guarantee. This is a very dynamic marketplace, what is going to work tomorrow? what is not going to work tomorrow? is very disbalance.

So, today I just want to help you to understand, how the market works? and how to align with respect to money? Before that I start with I will tell you two store in one story of myself. Many of you are new to the group and all that may not know the story but I studied very hard in my 11th and 12th I got a National level gold medal on the CBSE board for topping subjects and all of that. Then I found my way into India’s number two rank medical college MBBS. You know not the other streams of medicine but the allopathic stream. Now when I was inside my course, when I was learning, I just realize the basic principle of demand and supply. I am very thankful for you know to the superior power for giving me that brain. “Sad Buddhi” you know to understand that caused me to change my life.

You know life later, Which was that the government was re-strategizing. They were saying that there are way too less doctors in the economy so we need to create more doctors. How do we do that? So, they were bringing different streams of medicine on part with each other. Which is homeopathy, ayurvedic, and all the different scenes of medicine on each other. So, the supplier doctor basically increased overnight. This happened in 1998 day the year that I started my medical course.

So, suddenly there was an oversupply of doctors in the economy which made me feel I am not so special anymore. This is nothing to do with whether the policy is good or bad, whether there are different things of medicine one is the better one is not. None of that, All I am saying is that I thought I was special because I had cleared competitive exam across lacs of people to you know to get all India rank within the top 100 and get my seat in the number two rank medical college of India. Which is still today is the number two rank medical college in India. I suddenly realize that there is an oversupply of medical you know people with the same skill set into the economy.

Also, there was this person in my class, class 12th in school. Back in Delhi and this guy never got any good marks, he never studied, He never did anything extraordinary in terms of studies. Then he showed up in Pune which is where I was studying and he said I am doing MBBS and I am like, how are doing MBBS? Because the thing was these private medical colleges opening up where, If you have right kind of money, your father could pay for some you know 10 – 15 lacs. You know paid seats. This is also fair I think?

If you have money, should be able to buy whatever education you want. But I suddenly realize and you know what? I did this hard work in order to come here in order to be in an industry. Because it is considered exclusive and now, I am realizing that this industry is getting oversupply. So, if you are a doctor, lawyer, charted accountant, or architect. I don’t agree with me or not, today in 2022 which is 24 years after I had this realization. We are glutted. In India we are over-supplied. If you are a doctor, lawyer, charted accountant, the architect you will probably agree with this.

You don’t feel so special more because today we’ve glutted it with an oversupply of doctors, lawyers, charted accountants, architects, in fact, people who are doing MBA and all this is an oversupply of MBA colleges. Because anything that knows you the viral things in India so much faster. The virality of things in India is so much faster than in many other countries. So, anything that becomes the trend very suddenly you love. You know you connect your avenue when you have oversupply and I need to do something. How does the demand-supply situation work?

The supply of something is limited the price will go up. There is the fulcrum, there is price. Price will go up if supplies are limited. If the supply is higher for that particular industry for that particular business line or whatever it is, the price will automatically come down. That is a basic demand-supply equation. If you are in a business, I will happily give you marketing tips, tools, techniques, etc. I will respond to emails and all. Just remember one thing that you are missing in this whole game. Tips, tricks, and techniques will automatically not make you successful.

They could make your relative success against people who do not upgrade themselves with time or do not invest in their own continuing education. But if you are in an industry where the supplies are glutted. There is no point being in that industry just because that in the industry you know that is the Industry that your parents have known, that is the business that is handed down to you from your previous generation, that is the degree that you have, that is the work experience you have, whatever the hell it is. It does not matter.

Now fast forward to my story, I made the changes in my career every seven to ten years. As soon as an industry became glutted or oversupplied, I moved out of that industry. These were all tough decisions and their tough decisions for you. I don’t want all of you to just start you know quitting your job and doing crazy things. But I am just saying, however you want to spend the next seven to ten years of your life. You are very cognizant of the demand-supply situation in that market. The demand-supply situation in that market. Now, what is the Startups Frat Mantra? What is the Mantra? You learn demand generation. So, once again like I said, you do need to learn demand generation.

Which is sales and marketing in creating a constant stream of customers for your product and service and absolutely we will help you out with tips and tricks and techniques and all that. You do need to master demand generation but this thing works the best in an under-supplied industry. Now there is a problem with undersupplied Industries that the opportunities in an under-supplied industry are not immediately apparent. So, you are faced with problems because the industry is in an infantile state the demand is not yet there. For the demand would be there tomorrow and that’s where the industrial under-supplied. The other thing is there are failures. The industry does not exist and you’re trying to create something that does not exist, but when you actually go through the failure and come out to the other side. You will be the only person supplying that industry. So, you will be the amazon or apple of the industry.

So, there are failures problems of failures. There is a lot of sweat and tears involved in reinventing yourself. But either you will reinvent yourself by choice or you will be four to reinvent yourself in a situation which will not feel very comfortable. You will let me say that you will be probably forced to invent reinvent yourself in a situation where you would prefer to have reinvented by choice. So, either you will do it on your own or you will wish you have done it on your own. So, that is pretty much the thing. Now let me give you a couple of examples, What are these problems and failures in industries that could be new, that could have the secret? The secret to 10X your income. 10x you know, quantum increments in your income. At least 3 times your income. Maybe 10 times your income in a couple of years.

Let us talk about Thomas Edison, Thomas Edison created this light bulb and always lights the whole planet today. He tried 10000 times and he failed 10000 times. And then people ask you fail 10000 times, He says no I just learn 10000 times not to invent the lightbulb. Then he finally succeeded you are the only player in that industry. The person who invented the motor was not trying to fight in the same values, not trying to build a faster horse. He or she doesn’t even know you whether he or she. But he or she will not try to build faster horses, they were trying to create something in an industry which needed faster locomotion but did not realize that they need faster locomotion. Now that does not mean you drop everything and start creating.

Trying to create a spaceship or something. Bring me to the story of the spaceship, Elon Musk. He failed 5 times in launching and re-landing the same spaceship. Because launch and re-land rocket or whatever. Then the cost of actually launching was doing because they don’t have to recreate the rocket every time. So, I want to launch and bring the thing back, so I can keep using it, and thus space flight becomes cheaper. Now he failed 5 times and he actually failed multiple times, because he was trying to build a rocket from scratch. He had no degree in that area, he had no experience in that area but he was trying to do it. The reason became a multi-millionaire in the industry, is he is already a multi-millionaire.

The reason people funded his company and today he has become you know multi-millionaire or whatever. Is because people invested in his failure. Thomas Alva Edison invested in his own failure and the people who have invested in Elon Musk’s failure especially Tesla and things like that. SpaceX, I think it’s his own funded company. But I am sure there are some other investors for sure. So why are people investing this kind of money in other people’s failures? If you see Shark Tank ok mark Cuban the richest of the Sharks. He has a net worth of 4 billion and he says, my target is to invest in at least 100 new ideas every year. Every time they ask these questions to the candidates, they ask them and say, what is your model? you know where are you feeling? and where can we help you? and all that their very critical about this business model. But at the end of the day when they put their money or they are not putting their money on the sure success. They are putting their money on failure.

Routinely when you see Shark Tank, when one shark says I want to put money, the other sharks are not even interested in that. They like Ok, I am not gonna touch this thing. Why? Because 1% thing that this failure is worth spending your time and money with. So, fortune will result only if you understand, what the market wants? However, the market needs but does not realize what it wants. Money will only come from embracing failure. There are no cool tips and trick techniques that will guarantee work for you. Show that the principles of marketing or the principal sales, the principle of entrepreneurship will stay the same throughout. But the biggest principle of entrepreneurship and sales and marketing is what? Is risk my friend? The risk of failure. Now in today’s market, we are not encumbered with the risk of losing money because it doesn’t take a lot of money to run a business, to build business today.

Laser Target Marketing

The risk of losing face today doesn’t take a lot of risk of losing face. If you do the right kind of marketing, which is laser target marketing. Which we teach in our academic programs. Nobody will come to know what you doing unless you want them to know. So, you can literally laser targeted like you know one of these American drone bombs. If you are you say go into that particular window from 3000 miles away you can target it to one particular window. So it’s like one of these hyper-targeted laser bombs. So that’s how you can laser target your marketing. Nobody will come to know what you’re doing. The risk of losing face is zero. The risk of losing money is zero. But the risk of failure is the risk of micro failure that you’ve got a go through. And then come out on the other side stronger and richer is always there. Because that is the fundamental funda of any kind of entrepreneurship.

So, do not think that any tip or trick, technique even if it is coming from me, will make you a success. Because I run two other businesses and every day I wake up I have no guarantee that what I tried yesterday and worked will mark will work for me today. May it won’t. So, that is pretty much I think the message that doesn’t think there is a Mantra of success. There is no mantra to success. The mantra of success is you got a try and you got a try and you got a try and at the end, you got a try again till you succussed. When you succussed, you got a built fort around it that protects that well from where the water is coming. You build a fort around it and you reinvest all that money into you know fortifying that fort. And getting the aid of your competition, because today you know like I told you that private medical college is in jiffy man. They were not a one day and soon they were all there. So, the competition coming is faster and faster. Especially in India, whether virality of things is so much faster.

Now let me come back to money. Where is all the money? What happened is? Money is neither created nor destroyed. So there is a marketplace, let us say this is where people come to transact and this is where they live. All those people living in their homes all of these investors in their offices and then there is the marketplace. In the marketplace, the money is playing. Money is playing with each other. So, money is circulating in the marketplace is playing with each other. So, let’s say there is money. What typically happens in a slowdown is that the money disappears from the marketplace but has not been destroyed. Money is not created nor destroyed it only changes hands.

Now, where is the money? It’s not there in the Marketplace. People are not interacting, transacting so much. People don’t trust each other so much. People don’t buy so much. If you want to buy the government says, you can go there, you can’t go to the cinema hall, you can’t go to a restaurant, things like that. Whatever the situation is nobody should blame. I am just saying whether the money is lying somewhere. Where is the money lying? Either the individual people have the money and they don’t wanna spend it on something they spent yesterday on or large investors have the money and its waiting for the right kind of risk-taker, or the right kind of failures, Mark Cuban says, I am gonna invest in 100 new opportunities and know that 80 to 90 of them will fail. Because failure is the essence of entrepreneurship. But the one or two that will succeed will increase my net worth.

So, they looking for people to start businesses, where the money will be invested in you. If you prove that you are willing to take the risk, you willing to take the failure, and you’re willing to build on that failure. Pursue that failure to the point of success like how again Elon Musk did to create the reusable spaceship. All I can do whatever for did to create the assembly line for a cheaper car or whatever it is like Thomas Alva Edison went on failing till he did actually create a light bulb. So, the money is waiting for you. Doesn’t matter who’s pocket it is, customer pocket, investors pocket, or whatever. It doesn’t matter, you don’t need to worry about this thing. The money is there. The money is to find you and you have to find the money and it is only through the pursuit of a goal.

Through that darkness of failure. The money will find you that is the journey. It has always been for the last thousands of years. Now when I talk about all the stories of this invention, etc. That doesn’t mean that all of us go out and try to create like some new crazy invention or something like that, No. The answer is no. So, where is the secret of wealth to be found? Where is the secret of events to be found? Where is the risk of failure to eat without investing a whole lot of money? Without investing a whole lot of you know this thing a whole lot of personality. You know you don’t want to boss to know that you’re thinking of something. You don’t want your colleagues to know, maybe you don’t want your friends or co-workers and family to know. Because you know you don’t want to different people to know. So, the answer is new. An existing trend in a new market. A new trend in an existing market. A new invention like I already told you about, like you already talked about or a new way of doing old things just 40x better.

What is Delta4?

There is a serial entrepreneur called Kunal Shah, who talks about Delta4. What is the concept of delta4? He says, every time you see a new way of doing old things better, the difference is to let us see on a scale of 1 to 10. Let us look at a difference between an electronic payment gateway versus standing Infront of MSCB or the electricity board every month, in like to pay your electricity bill versus paying it through PayPal or Paytm or something. Where is Paytm on a scale of 1 to 10? 10 is being the best quality and the lowest preference is 1. I would say, I don’t like to stand in MSEB like to pay my electricity bill every month regardless.

So, the old electricity board is over here on 1st number and the new electricity board is at seven or eight. Why 7 or 8? Because there is still some risk of you know your Paytm account getting hacked and all of that so. I don’t know what all that but definitely the risk of definitely the ease of doing of making payment through Paytm versus going and standing in line is at least 8 if not a 10. Let us talk about Paytm vs Phone pay. I don’t even know, maybe Paytm is 8 so Phone Pay will be there and 9 or 10. So this one is the old one a phone pay 9 or 10 or whatever. Between the among different tools which one is to be tried or not. Very close together, I don’t know even that difference. What about the difference between Airtel and Vodafone? I don’t know. I don’t even know the difference. I think they are both equally good bad or probably they are both at 7th position on 1 to 10th scale.

What is the difference between Jio fiber net and that little tablet internet that you had? Tablet internet is at 3rd position of scale and Jio fiber net is 8. So, this person call Kunal Shah says that every time you ask a hundred different people and consistently the difference between the rating is more than 4 which is called Delta 4. You have a sure-shot winner. Now you may still have problems, you may still have a failure, you may still have sweat and tears but when you get after that task. You know it’s worth spending. A few years of your life in order to solve that problem and show off at the other end of the winner. And in most cases, you show of very rich.

So, what is the difference between the old and the new over here? Payment gateway versus electricity board. Definitely, Delta 4 difference 8 – 1 is more than 4. Among the different payment gateways, I don’t know there is not very much of the difference. The difference among the previous telecom providers one or the other they are all the same. What is the distance between fiber net and old technology? The huge difference is there. Ambani, I don’t know whether people like him or hate him but money was many years underground to figure out this thing before even he launched it, and even when did he launch it? He served it free to everybody for more than a year. You can have it free. Why? Because the new technology works then nobody ever will get rid of it. Because the thing is so father ahead of all these tableted internet technologies and all that SIM-based technology.

So, how much did he risk? While going underground, fixing all of this before launching the SIM service and when he launches, he said Just use it free for a year. Because he knows there is no risk. You want to take away the risk from customer. Use it. So, a new way of doing old things, a new invention of course like the light bulb and the motor car or whatever. New trends, new trends in an old market, or old trends in a new market. Or better way of doing whatever your competition is doing by doing at least a delta4. Now, this is where the 10x thinking comes to play. If you do everything 10 times better or 10 times harder than your competitor, you will anyway bite your competitor.

There is no question about it. We teach a lot of the tips, tricks for free in this forum. We teach a lot of them ninja-level stuff in our academy program. But truth be told, tomorrow when I wake up, what is the guarantee that what we tried today that works from our business will work tomorrow. The guarantee is zero. Every day you wake up, you face the risk of failure and that is where the wealth is made and that is where the fun in life is. They are projecting that in 7 to 10 years everything that is being done by human beings today will be done by robots. It means you won’t have a job any which way. So, you might as well try newer and newer things. Because the current job is to go away soon later. So, I don’t know whether is of any interest or not. This happens to open any windows in your mind or not. I will be happy to take feedback in below comment section.

Hi, there this is Rajat from Startup Frat. Today we are gonna talk about marketing footprint. and what I am gonna talk about is a lot of different comments and outreach I receive on my email and all of that. And usually when I say hey man it’s become easier and easier to market your business even if you are a small business owner. You can market like a big brand and all of that. A lot of people have started thinking that maybe by easier, I mean you’ll be able to do set in your little cubby hole and not spending on your marketing. You are able to do it for free. So, two big mistakes that the average business owner makes if you are in this community. First of all, we are the lowest-cost provider. We actually provide the cheapest products in our space and the second is till now I have only got business through word of mouth marketing. A very proudly you know, we are the cheapest provider in space and will how have you been selling sofa well all of our business till now has come from word of mouth.

Big mistake in the numbers for you, I will give you the match. But before that let me outline if you are a business owner or a wanna be a business owner of corporate professionals who want to get into you know business and you want to be the cheapest provided that people default custom risk and basically default to run the numbers and see that’s a good idea. But long story short everybody does business for one reason only and that is total net profit in terms of dollars in rupees per year. The only goal as a business owner is to expand that figure which is total net profit which is the total number of rupees per year or Dollars per year.

A quick reference to notes now, the most businesses are structured in India is that the product cost which is how much money takes to produce your product let us say 70 rupees and let us say the margin that you charge on top of it which is your profit is let say 30 rupees and then MRP which is what you charge the customer will let us say100 rupees. So, 70 + 30 = 100. We don’t do any marketing because word of mouth reference we are so good and you know we are nice and try to keep it cheapest for the customer all are marketing comes from word of mouth.

Are you gonna get killed in the market?

Are you gonna get killed in the market? Because when I say it’s becoming easier and easier to become a business owner that means that does not mean it’s becoming easier and easier to set up shops and just get into business and make all the money etc. If you want to collect a net profit of total let says ranging from 10 to 20 Lakh rupees per year. Every single day that you don’t get the word out to your customers a potential customer as far as possible as far out and as deep into your market is possible every single day that you’ll lose. Not getting the word out to your customers somebody else who starting a new business who could be smaller than you whatever is able to capture those customers away from you.

So let me give your scenario. What is the scenario? Let us say so you now have zero marketing cost. Let us say I add marketing to it. Marketing 0 + 70. Let us say In a scenario you do 70 rupees per piece of marketing and you add 70 rupees per piece of product and you sell your product at a 60 rupee mark up which means the total MRP to the customer is 200 rupees. The total MRP to the customer is 200 rupees, because of this marketing let us say instead of selling 10 pieces a month you are able to sell 20 pieces a month. So, over here your total net profit is 100 x 30 is about 10 X 30 is about 300 rupees. Over here because of marketing you are able to get to more customers you know probably have double the customer base etc. You are able to do 16 x 10 = 600 rupees, 16 x 20 = 1200 rupees 20 pieces 1200 rupees.

The total net profit by investing into your marketing is why I’m using the same figure 70 + 70 the cost of getting a product shifted and in the hands of your customers 70. You need to add approximately another 70 to the marketing and you will easily quadruple your current net profit in terms of rupees per month or rupees per year. Now you may say why should I charge my customers more when I don’t want to and all of this marketing causes paid for the customer. Yes, my friend when you buy 20 rupees Coca-Cola that was made for 1.2 rupees essentially the 19 rupees going to some sports celebrity or whatever that marketing.

The whole marketing engine which they have. Which is the free refrigerator they gift your Kiranawala in order to store the coke. You know that the money they paid celebrities and things like that. So the customer definitely pays for all the marketing everything you buy as a consumer. You paid marketing dollars to the company. So, if you have even the nicest of brands and all of that you buy soap shampoo whatever it is. Basically, there is a 30 to 40% problem 60% of the price that you paid was the marketing cost.

Now how does that and for the customarily you know why should I do that to the customer you know it’s unfair to the customer etc. My friend, you will be able to supply the customer for long periods of time and provide this value for long periods of time and improve the value that you’re providing to the customer over long periods of time. Does having a much bigger footprint on this planet which is valuable to the customer.

If you survive for 10 years and constantly grow this footprint. Think Apple versus Nokia. Nokia was providing great value to the customers very cheap etc. But after a certain point, Nokia was useless for the average consumer. When Apple came it was at an average 4 to 6 times more expensive than a Nokia. But the value that they provide since then is so immense that today an Apple customer or regular Apple customer can not live without Apple because that device does so much more for the customer than a regular Nokia.

Today if you are given a Nokia phone for 4000 rupees to 4000 rupees down the tube it would be a waste of your 4000 rupees. But if you buy a Oneplus for 30000 rupees it’s 10 times that price for a Nokia, Apple for 60 to 80000 rupees 20 to 30 times price the value that little device provides today makes an acute change in your life. ok, Steve Jobs changed the world and all of that stuff. So don’t think in terms of lowering the price, think about increasing the value not loading a price increase in the value. If people love you and like you and you fail to survive if failed to survive for the next five years you would have done a great disservice to the customer and to the market. Think about all the beautiful little Indian brands that used to be there 20 years back when we were in childhood and they just failed to sustain. They had a better product they had everything they just fail to sustain the plane failed to sustain. They are not there anymore and all of that has been taken away by the Global MNCs and all.

It’s not a problem Global MNC is that they do they are not, nobody is coming by force to India and having their stuff down your throat it is just that they have better marketing they have better distribution they can get their product down to the exact last person on this planet that I have no access to anything else. Think Pepsi and Coke, Even you go to the smallest village they will have it. They will supply the Kiranawala with the Free fridge and enable them to supply you with Coke and Pepsi or whatever. You know the last person on this planet who probably doesn’t have connectivity doesn’t have good roads that have anything Coke make a show that product reaches the absolute last person in the country and on the planet as well. So they are able to utilize all these marketing dollars to make sure that there are able to impact more people for longer periods of time which is the definition my friend of customer values.

You will over a period of time with this model reduce the overall price for the customer because of something called batch processing. The principle of batch processing. Study this principle as much as you can because this my friend the 8 biggest wonder of the world is compound interest than the 9th biggest wonder of the world is batch processing. I learned this from my customers back in 2007 – 2008, When I Consulting manufacturing companies in Pimpri Chinchwad who were essential making auto parts and things like that and if they got a big order you know what they would do? They would Run 3 shifts Sunday. The factory would be running 24x7x365 and why not? Because the factory 60% of the cost was infrastructure cost. 20%, 30% of the cost is product cost.

These 70 rupees 30% of the cost was material raw material cost, and labor cost for let’s say 30% of labor. So, there are three ships instead of 1, let’s say their overall cost of getting the product out was not 70 in this case a 100. Then if they run 3 shifts only, things would triple. But infrastructure cost would remain the same then price the same. So, you talking about three pieces instead of one piece coming for 60 + 90 + 30 which is 180 and 180/3 = 60. So, the total price of the product to get into the hands of the customer is not a hundred anymore but 60. You just reduced the price to the customer simply by tripling your production. How do you triple your production? You just market more, you will get more orders that can triple your production. So, You need to understand this because if you cannot invest in your marketing, you wasting your time and you will be out of the business guaranteed.

Because every individual today can go to maybe social media for want of a better word of probably has a graphics and branding done for cheaper than the court area and probably produce videos and run the more the 200 MBPS internet the day have access to today that did not have access to two years of five years back. They are taking away your customers as you sit around with quilling thumbs and wind wondering you know how to improve your sale sitting in a little cubby hole and waiting for the word of mouth to communicate not a good strategy will go out of business batch processing will bring the price down over a period of time.

This is why if you see a relative to Income growth which has improved 20 times in the last five to eight years. The price of products and services are not grown which gives a lot more disposable income to customers today than they did back in 2000 than back in 1980. Compare the prices rise the salary rise from your parents to you it has increased almost 100 times or probably, even more, a thousand times. The price of products and services increased only five-time or ten times you know something like that. So lot more disposable income why because increased batch processing has reduced the effective rate of every product and service on the market.

That’s what people like Steve Jobs and Bill Gates counted on when they said I am gonna build a computer so small and so affordable that every desk will have a computer. Not only in the office but also in the home. In times when the computer is to cost a million dollars and would fill up an entire room. Batch processing the second thing is product packaging you want to get more profit. You say I am gonna increase the overall price then my competitors charge lower and they are gonna take away all the customers anyway. So, what’s you do is something called product packaging. All successful products today which have competitional marketer sold as a package. You think about health services. You can compare doctors depending on their consultation rates throwing on their annual healthcare package, will do 40 tests and will do your thyroid and cholesterol and sugar and then will throw a diet plan, etc.

Then over across the whole product portfolio, the profit remains constant. Think about insurance services, why don’t people just come and tell you we have you know you want to book yourself for a 50-lakh rupee cover any cost 15000 rupees a year that’s it. If you wanna book it yourself for a 50 Lakh rupee cover will cost you 15000 rupees a year. But why do they charge you 50000? They say, hey man you know you can also get your money back. So there is another component in there which is basically going straight into the mutual fund on which the company makes a 2% brokerage every time they switched the trade which you never come to know about because they never send you a letter every time they do that. So, they package it. The package the money back along with the insurance security along with a bunch of locking, etc. Then they give you this beautiful picture which can work for some people who don’t wanna apply the brain.

You know the average customer said that is it I am getting everything I will pay you 50 grand instead of 15. So you do product packaging over across the entire portfolio of products, your profit will remain constant and may even increase. The third thing my friend is total lifetime value if you have a bunch of different products and services that help a customer solve one problem and one problem only. You will quickly grow outside of competition regardless of who charging more whose charging less. Think Apple again, would you agree with me if I told you that regardless of whether you come 6 ft near an apple watch an Apple iPhone, or an Apple iMac, or an iPad, or whatever it is. Whichever level of the devices is described, try them once or you borrowed from your friend or somebody gift your device are you buy one for yourself.

If you buy only even one of these devices today, in the next five years you would have spent a minimum of 300000 Rupees with the same company again and again for the other devices. Why because they provide so much value to the average consumer that once you get into the iCloud you don’t want to come back to Windows you don’t come back to Android and keep buying these devices each of which is price more than their counterparts in Android and Windows. But by the end of you get into the Apple environment and become an apple person. You would spend 3 lacs, 4 lacs, 5 lacs. You know the total lifetime of your relationship which could be many many years. So, that is the entry point. If you get me an Apple device which is why I am scared because I know I am gonna do it, which is why I am staying away from Apple.

Because I know the moment I start using the iPod am gonna want to get the iPhone the moment I get the iPhone I want to get the iPad. You know no holds barred. So, the total lifetime value of a customer for Apple is roughly rupees 10 lakh rupees. Compare that with Nokia compare that with any Android device or any Windows device. You get by one laptop on Windows you can I use it for three years then probably you gonna get another one you can I use it for another three years. In 10 years you will spend no more than 1.2 lakh Rupees with Windows. But in 5 years you will spend up to maybe 6 lacs or 8 lacs, 10 lacs.

The total lifetime value of the customer will increase if you are a better marketer you get it into the hands of more people. You supply them with better need launch more products and served them better across a wider range on this planet. Your footprint is wider across this planet. You will be more valuable by virtue of the law of industry or the law of business. It’s a Universal law. You know people are not a one versus the other situation. Companies that charge more provide more value guaranteed.

So I hope this opens some window in your brain, which might have been closed and which might have some junk and some of you guys probably need some like a wake-up call. So, I am just kind of being very honest upfront for a short 5, 7 mins video. Whatever your takeaways from this, whatever your questions put it in the comment section. And I will be sure to answer them. If you want to send me an email it’s rajat@startupfrat.com. I will be sure to answer your emails.

Hey, there this is Rajat from Startup Frat. I got a couple of emails saying, hey man what are we talking about submission? Put your head down and understand. So, what is all of this? So, the game is very simple. This forum is especially for new, I just go into a little bit more details. This forum is all about financial Independence our getting more financial options than you have currently. I will tell you a little secret. The different kinds of economic elements like you have the stocks, bonds have the metals and commodities like gold silver and in other commodities. And then the way you have but things like real estate the way you think have government-backed things like pensions and all that.

The way all of this is going is coming to consolidation. So, you can make a good amount of financial gains and protect your retirement by literally any means. There are hundred different ways to get financially solid compound your money make money whatever it is. But in downtime, the key difference happens this who is closest to the action. So, if the action is over here goods production services being exchanged in the market which constituted the economy and then you have certain instruments. This instrument could be real estate this instrument could be mutual funds, stocks, retirement funds, etc. What typically happens is? You are here and that layers, certain layers that a separating you from the action. Layers separate you from the action.

These layers are also formed by people. Layers of people lives of people processes you know and legal speak and all of that. Separating you from the real action from the real economy goods and services are being exchanged for money on a daily basis. Now the economy is there it may be slowed down but it is still there. There is money being exchanged not typically happen is all these layers are formed by people, so when a contraction happens while the going is good life is good everybody is winning. When a contraction happens all of these layers that a separating you from the action. Contraction happens people realize there is not enough to go around. The people who control your access over here. Who are they gonna take care of first? Are they gonna take care of you? Are they going to take care of themselves?

I just give you 2 or 3 examples. If you are in a job that you thought or in a career industry where you thought, hey man I am gonna float for life and this is good, money is good. I am working for a company that makes money and let’s say Dollars and Pounds. So, income levels are better than the next person. It’s a 5 day work week. Life is good. Now what is happening is this company that is formed of layers and layers of people. These layers are going to protect themselves first ok and not you. If you’re into Mutual Funds or stock these are for organizations formed by people if you invest in a particular company, the management is who are they going to take care of first, themselves. Then you have the primary big investors. The big investors are the accredited investors. Who are they going to take care of first you are them?

They gonna take care of them first. Then if there is something left maybe a 1% return something you get it. If nothing is left you get nothing. Mutual funds, the organizations who are they going to take care of first? You or them. they gonna take care of themselves. So when the market is growing at 16% you get only an 11% return out of it. The average market is growing at 16% your fund is giving your 11% why does it take care of itself first. The market tanks at 10% ok you make a negative 15% return because it takes care of themselves first. So the market is tanking at 10% and you are saying a mutual fund goes down by 15%. Hold on investment is a long-term game etc. You are separated from the action by layers and these layers don’t have your best interest at heart. In real estate, you invest in a property or whatever builder has a cash crunch. What does the builder do? Do they pay you a penalty? They don’t. Let you deal with the banks yourself once you finance the house you have to pay the EMI regardless of where you get the position of the house or not the shop or whatever maybe commercial property are not.

If you thought you were an investor you suddenly realize that you are the sacrificial goat. Now, what are you gonna do next? What’s the next point? So, the main point is the number one thing you need to submit at this time is the realization that you need to be dealing in the market yourself. It needs to be you, your name, your brand, control over what you do control over your cash flow, and all of that. Direct access to the action is the only thing this can work at this time. as long as you submit to that realization you are a majority of the way there because opening the window of the mind is the biggest challenge. So, you need to do this.

Sign thing is people say, hey man there are many reasons why that ideas do not accommodate in my mind and I am just going look for another job, another industry, If I am an investor instead of investing in stock I will go to gold and silver. Because gold is doing well, silver is doing well, diamonds are doing well, etc. All of that other site technical stuff. There are some mental blocks when it comes to people who think about their own brand, their own access to the market. Doing something that you know they control themselves. This is a scary thought because he hasn’t controlled anything in a long way long time. So, it’s a scary thought and I am there with you. When I say, hey man gone go into all these social with myself in my little dingy boat, it’s scary. I am there with you. Let me pull away the layers scared today and see if I can help you to take that step.

What are the different things?

So, what are the different things? First of all, mental block. You think it is complicated, that’s why I can’t do it. The second thing is, you think when I go to the market, I will definitely have to sell the products or service. This completes building a business, how product and services the and second this is complicated sell. It’s very difficult and you know traditionally If you see some of the movies around sells and all that they involve lots of hard-selling, lot of running around and all of that. A lot of high adrenally action. So, people think hey man I don’t know If I will be able to do that. The third thing is personality types. You may have seen successful business people but looking at them and their personality type, It seems that they are descended from another planet. They don’t swim like me, they don’t talk like me, then don’t walk like me. They seem different. They seem that they are like some major Greek Gods who have descended from some other planet. Personality that doesn’t jealous of you like I don’t know if I will be able to be that person you know.

The Fourth thing is the fear of Hurt. Which is, if hey man what if I don’t do well? There are two kinds of Hurt that you are scared about the scared of losing money and the scared of being a wrong, failure. Scared of being wrong, scared of failure, losing money. Both of these are deep-seated into your DNA. There are DNA-level fears that are not a problem we have helped you. What are the things that you have to submit and these are the hard roots? By making this problem easy for you, I am also going to make it difficult for you because there’s nothing left standing between you and your potential success.

Setting up of the business house and building your own products and services is not complicated. In fact, it can be done literally over a weekend. The whole concept plan in the blueprinting can be done literally over a weekend. You don’t need to build a whole lot of stuff yourself, there is already a glut of production services in the market. All you need to do is figure out who needs a man at what price and then you can create value. What is value? The only thing you can do to solve this confusion is, there are people with money who are willing to solve a problem for them in their mind. They are willing to let’s say pay 100 rupees to solve a problem. You find an easy way to solve their problem and you are able to get it over to them at let’s say less than 100 bucks let’s say 80. The moment you are able to provide a solution to People’s problems at a price point less than what they thought they would have to pay for it, is when value is created.

So, all of this stuff about building out complex business hours are you know production machinery office AC employees, etc. It goes out the window its by-products are not even something to think about. It’s not something you think about. What you gotta be thinking about is? What is it that people need? Ok, and what is it that they willing to pay? and can I provide to them even if the product is not my own, even If I get it from somewhere? and can I provide to them at a price point that whatever price finder is willing to pay for and provide them lower values instantly created? A complicated thing goes out the window and the sell goes out the window. Seriously that is zero heart sell involved over here.

The second thing is people, understand there are certain people obviously people who been in business long enough, etc. Who understands the different ins and outs of the business comes. They may be five or ten different variables. They understand but they don’t talk about it. All you see outside is you know factories, officers and employees and big boards and big brands and all that. You don’t see that the inside stuff which is there understand maybe five or ten of the microprocessor that going to building a business. Little more than you. Fun fact most of the knowledge that they have knowledge is changing so fast today in today’s economy changing so fast. Most of the knowledge that they have can be broken down 80% of the edge that they have into maybe 3 skill sets.

This is not something I invented. If you go on the Internet to find you know people talking about here at the max 3 skill sets away from bringing building your dream life. You are at the max 3 skill sets away from building your dream life. For different businesses, different industries, etc this could be different skill sets. I don’t know because I haven’t been involved and worked in every industry. But I worked in quite a few. Anyway, you are the max 3 skill sets away from building a dream Life. Now the fun part is that there are certain options opening up in the market. How many maybe around a hundred options opening up in the market? Where chances are that you can build this learning in 100 different combinations over a period of maybe two to three months. 100 different opportunity areas, not 1, 2, 5,7, 10, no 100 different opportunity areas that are opening up where you can build the skill set in a period of 60 to 90 days.

Then you can be at this level in one of those 100 areas. You want me Superhuman you won’t be agreeing God were descended from astern and all of that. But it is a certain area where money is being exchanged you can become as good or bad as the next guy within a period of 2 to 3 months. Why is that? Because These areas and you’re constantly evolving and some other tools and techniques that are available today to be able to improve yourself or not available five years back or two years back or four years back. So the game is changing, the game is improving and you have a window of opportunity.

The window of opportunity is opening up. Now, what about this man what about being wrong and losing money in all of that the fear the hurt. See it’s like driving a bicycle. You driving a bicycle and let me just go back little there was a time when you could do without knowing how to drive a vehicle. Because you know private vehicles were super and affordable and all of that and even to get a Bajaj scooter to take 10 years of waiting etc. So, if you didn’t know how to ride, no matter for using public transport anyway. Then came the 1990s everybody had their own bike or at least their own car or bike or something they had at least one vehicle in the house. Which they owned and with somebody in the house know how to drive.

So you have to learn it because the time demanded it. Then came 2000-2010 then however many people are there in the house as long as they added they must know how to drive. Maybe a bike or a car and usually household you’re find maybe 2 cars or a couple of bikes, two cars and bikes, or one car and two bikes. We have a minimum of three vehicles in every household. It is imperative today for everybody to be able to drive if they wanna get around and take advantage of the economy or even do things like Monday shopping and all that they people there is not enough time to do all of this. So, you need to be able to drive around yourself and get stuff done otherwise the world is moving too fast you’ll get left behind. So you had to submit any had to learn that skill of driving.

Let us say a bike or a bicycle or whatever and that’s where the journey started that is the skill set. Now, what about getting hurt sometimes you did get hurt you and all the above that shop you. Did that stop you? People stopped learning about a bicycle because they got hurt a couple of times. They are the ones today you probably will not be able to manage regardless the how much Uber and Ola run in this country. They will not be able to manage and not be to run at a speed, not be able to enjoy themselves in an economy that is running at top speed. Now what you can do is your side wheel things that are there for the bicycle ride, so driving you don’t really fall but that little Wheel on either side can help sure. So I will be able to provide you with some of these wheels with a couple of conditions.

I will be able to provide you with some of these wheels so that you don’t fall directly. So there is some protection and you can actually learn how to drive straight, how to ride that bike straight without the use of these wheels. The condition is that slowly what I would like you to do is keep racing these wheels so that you’re not dependent on them anymore.

So, we have a program and incubation program which takes the heart out of the equation. Now, why my telling you all this if you are the right kind of person, corporate professional looking out for options, certified professional like doctor, lawyer, architecture, who is lost in an ocean of other doctors, lawyers, charted accountants. You don’t feel secure anymore or your small business owner is sick and tired of getting hurt in the market. With every little political, social, economic, or health-related issue like covid of something turns around the first thing your business is out of order. Then I have some options for you but like I said the good news is the bad news. Once I am through with you, nothing will be standing in the way of your success except you yourself.

A question that has been asked last week regarding, how to market carwash? I want to be the best known in my area with the Best service provider in my area. How do I do that? How do I get customers? So today I am gonna go very deep into two or three concepts. So just put on your seatbelts and everything. This could be a long video. So we are going to discuss two or three things over here. We are going to discuss, how to be the best? And we are going to discuss how to be the richest? So how do you kind of be the Best service provider in your area? First of all, you gonna understand, what kind of a service provider or a product provider you are? Just to make it very simple, I am going to divide product providers in to let’s say, you are a product provider. What can a product provider you are? Are you hard products or traditional products that can be sold, delivered things like that? Or you are a soft product. Soft products are things like digital products and all of that. So digital products can be downloaded or can be delivered via the internet. So that’s hard products or soft products and then in services, you have two types of services local and global.

For example, in services, if you are a car wash owner, if you wanna a car wash regardless even if you become like the world’s best car wash the world’s cheapest in the world highest quality car wash. People who are not in your town or not gonna drive into your town to come to you. People are not into your locality and living 40 km away from your traditionally not going to try out all the way over just to get the car wash. Even if you like the best cash wash services provider.

So you are essentially a local service to understand you know what category I am, and then you would be the best in that category. So you can not be the best in the world in our help you long as you are the best in this category, which means local you are the best then your alright then you’re all set. Then the next thing comes to what type of customer do you have? So the customers that you have are they looking for a commodity or are they looking for a luxury experience. So for example, if you have let us say cooking oil, If you sell cooking regardless of how good cooking oil is. Another cooking oil is selling for 40 rupees you cannot sell your cooking oil for 400 rupees.

So essentially what you are right now is a commodity regardless of how well you wash the car people not gonna pay you 5000 rupees. So here is essentially a commodity and your thinking should always be how can I command luxury prices. Now finally being the richest also has to do with being the best all the. When I say best, a lot of business owners say, I need to be the best car wash, provider. No, you don’t need to be the best car wash provider you need to be the best fit for your customers who provides a bunch of products and services as we will see ahead.

So you are in the commodity segment where people are not gonna pay you more than 200 400-800 whatever it is for a car wash. Then you want to go into the luxury segment, so what is a commodity? and what is a luxury segment? loot at men versus women and young versus old. or middle east right young versus old I just write old like to be direct. So you can call 40 years old. So men versus women, young versus old. Men typically look at the car wash as a commodity which means they just wanted to be done.

Usually, they will employ somebody the society to clean the car and all of that, and that is pretty much it. Women on the other hand usually are not interested in taking care of the car and they are not very convergent of the kind of different things that you know that need to be done to take care of the car. So they are more likely to outsource all that headache.

Remember if you’re selling something inside the house, primarily you know women are very smart at comparing, bargaining. Because they are a much better understanding of the market. If you’re talking about something outside the house like a car or any kind of a machine or something men typically get their fingers dirty get the hang hands dirty over it and women are more likely to stay away from it and just outsource the headache. Now somebody who outsourcing the headache is a luxury customer. Somebody wants to get into integrities and understand the market and wants to price compare you and knows 20 of your competitors and then you know is basically thinking like that. They are not a luxury customer.

You want to move from commodity to luxury because that helps you to charge more. So men are in the commodity segment and women are in the luxury segment. In terms of young age anybody who’s less than 27 years of age over here, usually they will treat the car very important part of their life. They are very interested in keeping it clean, they are interested in keeping it shiny and things like that age group less than 27. Commodities more than 27 years old. Usually, you know they will they either have a drive or you know the car is not that much of an important thing in their life, because they have spouse, kids and bunch of other things like careers hitting new highs, taking a family vacation are more important things for them.

Keeping you know the car shiniest and best probably is not the most important thing. So now I just give a word of 4 letters. Old uncles are not your best audience. Young men and women of all age groups are your best audience. Ladies over any age group are your best audience and if there are men preferably lower than 27 years old are your ideal audience. This is where you are able to charge luxury prices. Now does that mean you overcharge your customers? They can get the same service for the same price in the next locality will you charge them two times the price and all that. I am not saying any of that. How do you provide the maximum value in order to charge the best price? There is no value and being the cheapest or second-cheapest. How do you go about charging or finding? Finding this customer and charging something that you deserve. So let’s go into two secrets.

2 Secrets of Successful Business

If you understand these two secrets, your life is set for the next five years. Especially if you are into products and services especially traditional services or hard products. Showcase traditional services and products. The first secret is marketing and the second secret is budget. Now there are two types of marketing.

Two types of marketing

1 Feed Based Marketing
2 Search-Based Marketing

Very important to understand the feed-based or search base. What is field-based versus search-based? Search-based is a traditional old type of marketing that exists in India. I want to have a business card you know put it everywhere. I want to have a website, I want to have a banner you know these are the sort of things. Which is more you know people should know about me. People should know about me so that when they see my banner or you know when they see my visiting card when they visit my website you know they are interested I’ll put some nice videos photo whatever and they will be interested in buying my service. What is a feed base? I am gonna invest money upfront get the word out to a predictable number of people in a predictable amount of time. I am gonna invest money upfront in paid marketing. All of this stuff is paid marketing. Search-based marketing is organic marketing. Paid marketing and organic marketing.

I am gonna invest money upfront, I am gonna catch holder the local newspaper vendor who supplies the newspaper in my area, I pay them 5000 rupees to carry my pamphlets to 5000 households in a day. A predictable number of outputs which is a predictable number of people will see in a predictable number of times. Newspaper means same, they gonna see it. Facebook and Instagram come over here, any kind of SMS you get that agency come over here, telemarketing agency to make calls in your local area and some that come in feed-based marketing. What is search-based marketing? Any kind to do with your website, anything you have to do with local SEO anything publishing an ad in the magazine or something like that. This sort of thing comes over here in search-based marketing.

Feed base and search-based, so feed-based typically said I want to pay 5000 rupees to get this word in front of 5,000 people right then and there. Now what they want to do is they gonna see something and I am gonna have a call to action. Which says call over here to get a 50% discount and I gonna have a nice image over there. Call this number I have a 50% discount nice image or you can say visit my website, this website is a special website which is called a landing page. This landing page reads the number of people that are visiting on a daily basis.

It also says if you want to know more if you want to sign up or if you want to get this coupon to give us your email address, put in your telephone number and allowance to WhatsApp this coupon code to you allow us to e-mail this coupon code over to you. Field-based and there is search-based. Now very very important thing understand this. If you understand this part of life is set for the next five years because this is the type of marketing that is growing right now in India and it is already 20 years behind the US which means in the next five to 10 years India gonna catch up to the US is a lot of activity in this area and you need to align your business even if it is traditional products, traditional marketing, hard services traditional services, traditional marketing to this.

Remember that customers will always pay more in feed-based marketing. Let me give an example LIC is more search-based. LIC is India’s largest and the best insurance provider. LIC has developed a reputation over the last 30 40 50 years whatever I don’t know. So many many years LIC has developed this reputation. So, somebody knows you know searches what is a number one insurance company in India you pretty much come to know and it is LIC. Then you got the LIC you will find that for 27-year-old, 25-year-old whatever it is you’re starting out in that they want to buy the life insurance update latest 50 lakh rupees for a period of 30 years the premium is you know let us say 10,000 rupees. So, you pay 10000 rupees for a period of 30 years anytime anything happens to you, you got 50 lacs in the bag for survivors can get it whatever it is. But then you got the different companies, private companies which are giving ads. You see their ads on Facebook, you see their ads everywhere you see telling marketing agencies of people calling you to want life insurance.

These people summary comes in meet you at your home they talk about your they say ok starting off you want to be in 20 years 30 years etc. They talk to you about insurance, they talk to you about cash bags, they talk to you about investments, etc. They bundle everything together and they charge for the same type of insurance cover of maybe 40 50 lacs for a period of 30 years. They will charge a premier let’s say 54000 rupees they will charge at something like 54000. They will charge 4 to 5 times as much 5 times OK that is the game 5x that is the average. People who do feed-based marketing able to charge at an average of 5x.

They do everything like the one to be different pieces in here there are able to charge 5 times higher. Why? Because I am not thinking of something, somebody calls me and tell me he would you like to build your investment portfolio about 50 lac rupees in 20 years or something I will say you know broadly I will say some people say Yes some people say No. Then they will say, I will executive come in and explain it to you. The executive comes talks to me about this, this 2-way interaction they talk to me about some things, they get me sold an idea and then they say this will give you all of this you know at 50 grand. If I have 50 grand you know they will probably profile me for first and they have 50 grand.

I am not saying they are overcharging; I am saying they provide more value for a person of my age group because they have the chance to have two-way interaction. Because they have the chance to do two interactions, they are able to provide more value. Search-Based is pretty simple. People who go to Google remember people who go to Google are not buyers they are browsers. People who go to Amazon are not buyers they are browsers, people who go to Just Dial are not buyers they are browsers. What is the difference between buyers and browsers? A browser does not have a painful immediate need and you do not have a two-way interaction with a browser.

What does a browser do? What do you do on Amazon? You want to look for let’s say screwdriver. You go to the screwdriver and then what you see is what is the highest amount, Stars for the lowest amount of price. That’s what happens when Justdial, you list your business on just dial and then Just Dial will give them 20 options on different-different car wash providers and automated cars versus all the beautiful machines and waxing and all of that and there is another person down the road who got this like a basic hose you know who is kind of more of a low and provider and their charging 200 bucks and you charging 800 you are never gonna get the business.

So, remember people who do search-based marketing those days in India are over because you are getting price compared you know somebody just getting compared like vegetable prices. Here on these search-based engines which are Google, Amazon, Just Dial any of these engine’s list. For doctors, you have this thing called Practo. What is it? It is basically a price comparison tool for people to find out the different providers in the area. Now doctors are still highly specialized but traditional businesses are not that specialized. So, you never wanna do search-based marketing but you want to do feed-based marketing.

This brings me to the other thing you need to have something called a marketing budget. As a consulting agency is this what we specialize in helping our students and our customers to do. So have got 2 kinds of customers corporate customers, corporate clients and then we got individuals who are starting their businesses and all that. All of them we teach this, How do you have started with a small budget? Which could be in 10000 rupees a month and how do you get 30000 all of it? You put 10000 and 30,000 comes out of the tailpipe. Better than putting money in the stock market better than putting money into real estate and all of that.

You can triple your money literally within 30 days. To start with 10 grand and 30 grand come out of the tailpipe provided. You have a good part of the services and you know car wash is a pretty good product service. Then how do we get this money out? which brings me to the second secret. The first secret is you need to have paid marketing and hence you need to have paid marketing budget. What are you gonna pay to the newspaper vendor? What amount you wanna pay Facebook. What you wanna pay to the Instagram influencer.

A car wash or car is a very visual item, if you are the right kind of Instagram influencer you can pay them. You can do a little bit of geo-searching soap. You can find people in your own city and things like that. Anyway, all of this takes money but the money converts into two or three x. If you have a good business. You know car wash is pretty good business. Now how do you get this money out? You build your customers. Remember this second secret. If you understand the first secret, next five years you are bulletproof. Remember these golden words Billing. ACV average cart value. Big Bazar makes more money than any other vegetable vendor or any other Kirana store. Not because they charge more because they provide more value under the same roof.

Big Bazaar is a big company any Kirana provider or local vegetable vendor, not because they charged more because they provide more value to the customer and the same roof that means every customer passes through that cash counter at average spending between 2000 and 5000 rupees. Probably more 2000 5000 rupees compare that to an average Sabjiwala or a Kiranawala whatever. People call, hey man can you send me milk, bread, egg, etc. The bill is never 2000 5000 bucks. When you go to the Big Bazaar, my friend. The average cart value of everybody walks in is 2 to 5 grand. I will give you 1 or 2 examples and then I’m gonna give you a resource where you can find more information around this.

So, how do you increase the average cart value when people walk to your car wash? First of all, don’t make people walk into your car wash. No buddy has time. So, If you have bright little pamphlets or circulating to the local newspaper vendors, hello we have a great car wash Nobody’s gonna come in. Make it easy for people to pay you. Make sure they want to pay you more money than they would usually spend at the car wash. So what do you do is? You say we have a nice photo, we got car wash done by our proprietor polish lasts 3 times longer and what is the customer? They are not interested in watching their car. What about audio pros customers not interested in watching their car. Use improves the resale value of your car. What are the two things that people are interested in and life? Two things people are interested in the life money and love.

This thing hits your first need. What is the first need? The resale value of your car is increased if looks better. Plain and simple. Now any car wash person can say that. So, how do you get head of a competition to make sure that when the thing you only of you and never anybody else. You see people with the spray cans on the petrol pump that are saying, Hey man I will get your scratch removed, I will do this, I will remove your scratch and all and they will give you a little demo then they will sell you a product for 450 rupees. If you negotiate with them, they will sell it to you for 250 rupees.

That little thing that removes the scratches. That is direct marketing by the way. That is feed-based marketing. They approach you it’s paid marketing because they have been paid to approach by that company. Either they have their own salespeople or the sales who do thins telemarketing or frontend marketing for you. So, they are doing paid marketing to push their product. That’s what you are doing.

So, what you do is, you go to this company’s, you go to different petrol pumps and you’ll find different companies, local companies doing this little spray thing that the evens out the paint. You buy all of these products, which will cost you may be one or two thousand rupees to test out all of their products. You find which one is the best. Most of these companies are very small companies most of them have a listing on Amazon and the people on the petrol pumps pushing you to the 250 rupees products.

To make that product costs 80 rupees and what you gonna do is you gonna test out all these different products in the market place. You buy from them to earn 250 bucks each, you will test out the different brands and then you’ll find out the one that is the best. Then what you gonna do is, you gonna place a bulk order with them you gonna say to get 1000 pieces, 2000 pieces, 5000 pieces, etc., and what I want is a good price which is 80 rupees and then what I want to do is instead of putting your label, I wanted to put my designer label. Give it to them in a digital copy and then what they gonna do is instead of their label they will put your label.

Figure out, where the factory is? This difficulty getting it from a chemical factory and putting the label on it. you go to the factory say I want this exact thing but I want my label on it. So, the factory will say, well I won’t give it to you 80 bucks a piece or 100 whatever it is. No problem. Buy it at let’s say 80 to 100 bucks apiece. Now you got 2 products. What are the two products you have? You have the car wash and you have the scratch remover. Then what you have is something called a consultation product.

3 little things, you create a little printed book out of it like a booklet out of it or a pamphlet of it. It should have at least 10 pages and at least 20 different images. Three little things, five little things, seven little things that you can do in order to keep the paint on your car stick in span for the next five years why because somebody is driving a car today chances are they now give that car for resale for the next 2 years, 3years 4 years, 5 years. So, what you have done is? You lock down that customer for 5 years. You wanna save, If you want to sell your car, when did you get the car Sir/ Mam and man says I got the car 1 year ago.

That means you want to try it for at least two years more so that the resale value is gonna be realized two years later so the longer it is better it is for you. So what you say is, Mam/ Sir would you agree with me? What if your car looks better then chances are it will get a better resale value. Let me ask you a question, I have a very nice photo of a beautiful car from my pamphlets which made you come to me or whatever, right? That the thing is attractive. They will be like ya it means everything, looks mean everything. So you say now, you going to potentially sell your car when it gets old 2 or 3 from now and single most important thing that’s gonna affect how much you can charge? Is the date of purchase, model number which is the data of manufacturing, and how does it look? They probably agree with your say, yes. So what do we have is? We do 7 things If you tie-up with us. This means we can buy our annual membership with us which will give you access to 6 car washes and annual membership. 6 or 12 car washes per year and we use our own proprietary scratch remover. We gonna use our own proprietary scratch remover, for which we will give you 12 cans and we do a car wash. You don’t need to come to us; we will come to you pick your car up. Do the whole thing, video the whole thing.

The whole thing will be done on live video, so you know how the car is being washed. We will apply the proprietary scratch remover, which is the best scratch remover available in the market. Also, we will do 7 little things over a period of 1 year. You can get 3 years subscription or 2 years subscription or etc. Get 3 years subscription that costs, let us say 42000 rupees the whole thing. As long as you live in this house, which is we are local but if you shift house is 20Km away or 30km away, what you do is, I am gonna send my guy over and he will pick up the car for next year every month. We are gonna do your car wash and this upkeep job, pain upkeep a job. What you do is lock in that customer. You created a city-wide customer and not only a local customer base, because they know even if I shift my house they will pick up the car for me.

The second thing is you increase the cart value. So instead of 400 rupees now you’re pitching a 40000 rupee product. Instead of them washing the car with you today and somebody else tomorrow you lock them in. Continuity my friend ok. Now a lot of this concept I am just pulling from our academic programs and the services that we give to people. I won’t be able to explain everything in great detail here. So I am just throwing out this term that you need to add to your vocabulary if you are a business person continuity is very important. This means how do you get a customer to keep coming to you every month and keep paying you. Without doing anything manipulate, there is nothing manipulate over here. You just giving them an option or a service under the same roof which increases the average cart value just like Big Bazaar.

Big Bazaar before you pass out to that graded till also give you magazines, chewing gums, key chains, things that you may not think about. Nobody goes Big Bazaar because their key chain is broken, but when they check out that little thing is hanging over there and they realize, Oh my God I need a new key chain because my other car key chain has broken. And by the little things that nobody thinks about but they need them. That’s why Big Bazaar is such a big company and small Kirana is not a big company. Why? They provide more value under the same roof.

What you have done over here is provide more value on the same roof. Now, what to do? If you throw in a little CD. 7 little things that you do to keep your car speaking and span and you say, you can have this CD today. If you pay me 1700 rupees. I’ll do your car wash ok I’ll give you two of these can the scratch remover for 250 bucks each ok that’s 500 rupees value and I’ll give you the CD which is let’s 1000 rupees value to 2000 value. Because if you learn, how to do the seven steps that we do at our car wash learn to do by yourself. 2 years later or 3 years later, you will be more worth you know more resale value. Now if you have a youngster, people who are less than 27 years old. They want to buy that CD why because they were the very very car is an adventure ride they bought this not like a product is not conveyancer, it’s a part of their culture.

So young people will typically buy this CD. Older people may not buy this CD because they are like I don’t have time to watch this long CD but as long as you put this together in a package, you can charge 1700 bucks. Now suddenly from 800 rupees, you double your cart value to 1700. You do this in 36 months that cost you up to 70000 rupees and you say, why don’t you sign up with us for three years or two years and we are giving a 50% discount or 40% discount. and we are gonna charge 42000 and this whole thing you own this whole thing.

Not only that, even if you ever shift from here to there in the same Town or something like that, we will basically pick up your car or even if you shift houses the family grows bigger you know something like that, we will pick up your car from anywhere in town. That’s what you’ve done is, you suddenly turned to spend five thousand rupees only newspaper vendor and the thing went out to 5,000 people even if you convert 1 customer like that one customer like that at 1% conversion rate which usually takes you from convert 25 to 50 customers but even if you convert 1 hi ticket customer pays you 40 Grand upfront on your credit card machine, you all set.

You just converted 5 grand of advertising money into 40 Grand and I am not talking about the other customers who will take the pure. No, just give me an 800 rupee car wash or give me the 1700 thing. Just give me the varnishing products. You can say If you just want to the scratch remover does 500 rupees because that’s the market rate. You can check on Amazon whatever. As long as it has your brand name on it and not some third-party brand name it cannot be compared. So, basically stand up in the competition, you get your own local customers at least city-wide customer and you build continuity into the program which means that every time person comes into your store you have a plan, lot of them will not buy but you have a plan to lock them for 3 years.

That’s how the insurance people operate. Everything that up that this insurance person comes to your house will sell you will be three years lock-in but they will say, hey not only will you invest with us for your insurance will also get to the money back in three years and after that, but all of the premiums that you are basically paying will also go into an index mutual fund plan that savings will grow at 10% so basically at after 30 years even if you’re not dead you basically get 50 lakh rupees in your bank and the insurance policy will still be in force. Till you actually die or something like that. So, they will create a package like that which is the customer is a headache of.

Even if I live I make money, even if I die I make the money. And then I get cashback on all other premiums that I had paid and basically, all I need to do is don’t worry about it for 3 years. So, let’s just do this is to this. That’s why any ICICI Prudential person, Kotak person you know any Yes bank mutual fund guy, you know any HDFC mutual fund guy, insurance guy any of this guy ever shows up to your place, they will always pitch you 3-year lock-in the product. Remember that LIC very simple is going to the website by any insurance you want boom its done 10000 boxes of premium. But they are not able to charge very much. It’s just they’ve been around forever so they’ll real life is good. Similarly, if you like Maruti Suzuki you have been around forever then you are you all said but if your local business you are getting smarter about this.

Two Secret you got remember is your marketing budget to do this and you got to figure out how to improve the average card value and make it easier for your customer to pay you. ok now with Instamojo in the game is a very simple man, free book a free consultation, pre-book a free car wash at 50% off and you can come in any time during the next 90 days. You know boom, You can just charge them 350 bucks straight of Instamojo. The moment they see your ad or the moment to see the pamphlet it says hey an Instamojo pay a 350 pre-book etc, call this number we will put you on the chat. You can come in any time you have you want you can call us prebook pay us 350 bucks and call us will get your car pick up for you.

So make it easy for the customer and provide everything that they will need in regard to that product line for the next three years within one roof and you are off to the races nobody can compete with my friend. Using these secrets we have helped our customer’s travel agency to charge and keep the building up during lockdown when it was illegal to travel agencies we got customers travel agency. Billing customers during the lockdown by rolling out membership programs? We got commoditized businesses like photographers there is a rate for photographers. Per day is 2000 bucks regardless of what you do. To triple the average deals to triple their rates. We had the people who are businesses in construction and all of this business has been totally down during the lockdown, slow down we help them reinvent and create products that are you know braining from 2 to 500000 rupees a piece instead of 5000000 rupees. And keep the billing up during the slow down.

Boosting your sales training, whatever you do now whatever we do speak about the express highway, we spoke about the express highway concept, we spoke about not being cheap and not being throwing all your stone or not throwing all your tricks and tips and doing all the convincing to 1 prospect but rather using prospects you know using the prospect’s attention as the variable in front of your defined offer. How do we do this? How do we create this? So what do we do? And how do we do it?

Get a prospect to agree to your product

What we do is, to get a prospect to agree to your product or to even pay attention to your product has to break a bunch of different barriers. Getting a prospect to agree or even to consider you as worth spending the 1% half percent of their mind the tension is you know has to break three or four barriers. What are these barriers? Is this idea something that interests me? How much time is going to take for me to? What are the barriers? How much time is going to take for me to look at this? If it takes somebody to call, Hey sir we have good investment options if you give us 30 minutes of your time. I don’t have 30 minutes of my time to look at investment options.

Plain and simple, what are the barriers? What is it that I am gonna have to pay out in terms of time, energy, mind space, etc? The third thing, belief systems, is this something that agrees or disagrees with my belief. If there is a person who has a mindset that says, you know these finance people, investment consultants, they are only out to get my money. Then that’s a belief system, you cannot move. So ideally that’s not a kind of prospect issue you should be talking about too. If you like a multi-level marketing guy and some people say, this MLM doesn’t want to hear about it and you still like hey man. What do you know about MLM? Let me come over to your house and you know just talk to you out of it. That is not going to happen.

So belief systems and The Fourth thing of course definitely is the price and the engagement. Once again, if I wanted to have this benefit you know how much it’s going to cost etc. Now, if your prospect comes over to you, if your prospect cuts your cross half with your patience says ok let’s come to the point, what’s the price? Then that means you have not thought about these beliefs and you presented some information that brings them out here. Please bring them out here straight, and even if you talk about the price the discount even if you give it away for free. If these other three items are not taken care of, then you’re not on solid ground, you are not gonna close the deal.

How to solve this problem?

We solve this problem by using the express highway approach. What we do is we create a box out of it. At the bottom is your product inside. Just like Egyptians used to hide the dead bodies of the emperors right inside the crypt. So you have to break through six or seven layers of the pyramids in order to get to the real thing which was the real bejeweled. They put on all kinds of gold and everything is put on them on the bodies and then they were engraved over there.

What we do is, use a three-stage process in order to create this box. What is the three-stage process? The first stage is an interest or idea, what is the big Idea? We talk about one Idea, we say this is our idea if this interests you hit the link below. You know come to my webinar or call me, WhatsApp me. Just get the obtained. Which is, hey can I call you? Can I message you? Would you like to come here? Would you like to hit my web link?

The first thing is the interest or the idea. They are interested in your idea of achieving a certain result. Now subconsciously we have been a commercial species for the last five thousand eight thousand years, which means trade brought us together. This is why we are not killing each other and we’re not becoming extinct like the other species. We can coordinate on basic principles like trade.

So psychologically everybody knows that there is gonna be a trade at the end. What you do is you need to get them, open up their barriers and if they want this idea and they do the obtained which is the hit your link, they give you the WhatsApp number, they give you the email. Then the next stage is, you give them something that brings them closer, give them a reward, something that brings them closer to their goal.

How to do it?

You give them how-to information that helps them achieve that goal without your product. You give them how to 6 points, 7 points, 10 points on how to achieve these things. What people are doing in all the different directions. You know in order to achieve the same result that you want, If you want to impact nature in a better way you know 10 ways how you can do it. If you want to increase your income in 10 ways, how do you do it? how to do it?

If you want to become a better pair and better guitar player, etc. There are 10 ways to do it. 7 ways, 6 ways 5 ways 3 ways where any number will do. This should not include your product but all of these ways should be encapsulated in your product so make sure you name only the items that are later that your product is gone enable or enforce or accelerate. Then you are the same for another micro commitment which is to come and meet me over here or whatever come to meet me in my webinar.

The third micro commitment you know they achieve all these seven or 10 results that you mentioned earlier. With one single solution that costs them one time does not take too much headache to maintain. People only look for three or four things: how much time, how many headaches, how much effort, and how much money is it gonna cost for me to achieve my desired result. Now, this my friend is what you call the hot box. This is your express highway. It’s got all the tools and everything built-in. What should do is once this hot box is ready, all you do is the entrance to this box to keep bringing more and more people and asking them only one question. We have this idea. Does this idea interest you?

If the idea interests them, then they perform an action which is they pay some toll by doing the WhatsApp obtain that I spoke about earlier the email obtains. Something that allows you to connect with them with their permission, and then you say, hey we have this something really cool thing where you can achieve this result that we spoke about 10 different ways, none of those 10 ways cost money or non of those 10 ways cost efforts, or non of those 10 ways cost time, any of the above. Then you present them 10 ways, 5 ways, 3 ways, 7 ways on how they can achieve that result. Except that now you are doing the work of Google if you have provided them your product they would have gonna Google duo and then they would have gotten lost.

What you are doing is you providing all the Googling to them upfront, then you say, hey by the way we have something coming up you know will be able to showcase something that could help you. You know would you like to join us at this place for a tea party, for a webinar, for a meeting and you know they come over there and then you showcase your product to sell him and you remember all those 10 things you talk about.

We thought won’t it be great if you could encapsulate all those 10 little benefits into one product. This is the product and this is the price. That’s how you help them close on the product. Now there are things called advance negotiating and closing which means for anything that cost of crore or lakh of rupees, people gonna ask for a discount. How do you build the message around? This whole thing works on your messaging. how do you build the message around your lean startup?

What is a lean startup? The first layer is the message the second layer is outreach. How do you get the word out? Outreach ok. The third is your business house, which contains not one but many products. A business house should contain not one but many products.

I just like to get you to clarify, nobody is getting a bunch of customers and throwing them against the polls. It’s all about customer retention. Ok so what you are doing is in the morning a customer wakes up and their mind is immediately invaded by newspapers, TV, kids have to be dropped to school, have to get ready to be at the office on time for the 9:30 meeting. Oh my God, I forgot my mask at home. Oh my God, this thing is happening on Facebook this thing is happening on YouTube. Oh, driving let me utilize my time listening to some podcast. 20 different things are in their mind at all times. You are just less than half percent of their customer attention.

Customer Retention

What do you need to do, in order to get customer retention? Hold customer retention, harness customer retention, and maximize customer retention. You need different steps of the process. You can’t just sit in front of somebody and try all the tricks in the book to convince them and become like the salesperson. You will run out of fuel and you will run out of motivation. Another question somebody asks me is a man you know I put all my passion into my product, why do you say that I should get rid of my product?

I am not saying you get rid of your product. Do not become so tied down to your product that even if the product becomes obsolete. You know you’re still wasting your time promoting. A product can change, customer basis can change, everything may change, the vision does not change. If you have a vision if you have a passion by all means stick to it. All it means is I stick to I water it, nurture it, put sunlight on it so that it grows from a little seed into a big tree.

How to Get Customer Attention?

How do you get this customer attention, hardness attention, and all of that? Nobody is thinking about what you are, how to sell or promote in the market. Nobody wants it, nobody likes it, nobody has money to buy it. What you do, you do something that scholar-stage-wise approach which in our community in the Startup Frat community we call the express highway approach.

How does that work? How does an Express Highway approach work? You have an entry point into the express highway to go down this road. It is said to express highway from Mumbai to Bangalore express highway, from Delhi to Chandigarh express highway. From where I am right from Chennai to Mahabalipuram. This is where the express highway starts.

Step – 1

Now at different points during the express highway, what do you have? You have toll plazas. 1 toll plaza, 2-Toll Plaza, 3 Toll Plaza. Let’s say after every 20, 30 km after every 50 km is a toll plaza. Now what happens is, you bring people into your communication. You don’t start telling them, hey this is my product you know, start buying it because they don’t have enough information, they don’t have mind space, they don’t know you, but you know who you are. They are like, Ok I will think about it, ask my wife. What should do is, take the journey and you talk to them about the idea you say I’m thinking that wouldn’t be great. Won’t it be great if XYZ could happen?

Which is a result that we spoke about yesterday. This thing you know results that potentially cause their pain now everybody doesn’t have the same pain that your product solves. What you’re doing is, you’re trying to Swift and sought to how many people are in pain, that your product can solve to say something about an idea. What if this would happen would be interesting and if the other person said yes or no if they say yes that’s great if they say no they are out. What is out? I say ok ya ya and then they will tell me more about it, it will say no no we were just thinking but, you know you obviously came to the same conclusion that you are not interesting at all.

You just think about an idea about which is thinking about an idea. I came to the same conclusion. So that way you don’t give information to people who don’t want it. You are not giving free information to people who don’t want it. Long story short, you give them an idea and their ideas sound interesting. No traffic is gone over here, this is the no traffic will put the. Now the Yes traffic says yes I am interested in the hit what you call it Toll Plaza they gone pay toll to move ahead. What is the toll?

They have to take some action to prove that they are the right person for you to invest your time. They have to do something to prove, you’re reversing the situation over here, you’re not proving anything to anyone. That’s what happens when you run after a customer you are trying to prove and you’ll run out of fuel, run out of your steam, you will run out of money, and run out of motivation. We don’t do that.

They have to do something to prove that they are the right customer for us. So we call it a small toll plaza, a small commitment, a micro-commitment. They say give me more information I am interested in, you said that’s great we don’t have a lot of information, we just started exploring but hey why don’t you do one thing, one should do one thing. Once you send me, this is my phone number, you give them a business card, just add it to your phone book, and send me Hi by WhatsApp.

But I am gonna do is, I am gonna save it and then you know whenever the information becomes available I am gonna send it immediately to you on this call you or something. You tell them, hey this is my WhatsApp number added send me a Hi. What are you doing? WhatsApp has an app called WhatsApp business which is free. It allows you to send mass mailers up to your 2000, 5000 people mass messages in all. But there’s a catch, you can’t send to unknown people.

You can only send it to people who know you and how does WhatsApp know that these people know you well. They have added your number to the phone books WhatsApp can see it, and they have sent you a message so WhatsApp can see that as well. So what you do is yeah that’s why you see a mutual fund salesman or somebody coming to your house and says hey just send me Hi from your WhatsApp number and I will send you a plan. WhatsApp needs to understand that you know them, they know you.

Whenever the information becomes available with a click of the button, you send it out 2000 people at a time all for free. The first toll plaza has been crossed. Let’s say, they say hey I will give you my WhatsApp number First toll plaza has been crossed.

Step – 2

Now there is the second zone, zone number 2. You could have 5 zones, 10 zones from Bombay to Bangalore. They like to help or something at the toll plaza. Every 20-30Km you have to pay a toll. Now you come over here, This traffic is coming over here when the information becomes available, you make it available to them and what do you do? You say, Hey man we set up a small meeting on Saturday. You know for all of you to get the information, will have some pretty cool offers for your, etc. This is gonna happen at this date, this time at this place.

Make it easy for them, but make sure that there is some effort involved for them too because they need to qualify for the second toll plaza. Hey man, you know you got to make yourself available, make it a Saturday evening. Most people are actually free. If they are very motivated then what you’re gonna do is, you know then you can send them something that makes it compelling for them to come on Saturday.

Let us say that they don’t come or don’t respond to this when I am not interested, now I’m going to make an effort to come to you. You need to send me all the information, call me, give me the best quotation, then they will know they are not the right customer for you. Any customer that says I know all the information gives me the best price. You don’t take them down the highway, you put them out. I have all the information and all that gives me the price. Nothing they go out, you don’t message them again.

Then maybe if they call you later and say I was waiting for your message, I didn’t get your message, Then you put them back into the machine. Otherwise broadly what they are saying is, they don’t have time for this and you interruption and you know you are not welcome. If they say I know all then just give me the price, Then you are not welcome, your information not welcome. No need to deal with those people. Don’t be cheap.

Step – 3

Now, what happens to the people who actually pass this toll plaza. They show up to your meeting, they show up somewhere to a coffee meeting. Over here, you’re gonna showcase your final product. You’re gonna make it compelling for them to go in and to chase. That is how the thing works. You can have one another toll plaza and it may be another qualifier. Rule of thumb: remember the higher the price of your product is the more toll plazas people need to cross. In order to get it.

If you ever go to a Mercedes Showroom, just remember that first go gonna call them and make an appointment. They don’t send the car to you, call them, and make an appointment to know who they are dealing with. Unless you’re already some eminent person of society that they already know, they’ll send a car for a test drive, but you have to call intake and appointment and you show up on time. Then they’re gonna ask you qualifying questions. What other car do you have right now? If you say I have a Maruti 800, They will probably say Mercedes is not the right fit for you.

Nobody wants to get into the hassle of how much it is, give him a test drive after that and what will the financing be like. I don’t have down payment money, your prices are too high, can you reduce interest rates, can have a lower down payment, nobody wants to get into that. So what they say, what car do you drive today sir/man, and if Mam says or sir says that I drive a Maruti 800 or maybe like a lower segment car. You know I had a Maruti 800, so if I ever went to the Mercedes showroom, they ask what car you drive. Let’s say a Maruti 800, I didn’t do that but as people told me that’s what happens.

I would suggest that you drive some other cars first and then you come back. Maybe you go there, They will say Ok, we will fix your test drive at your preferred time you gotta show up again. Then they will say put down a down payment, you know we talk about financing afterward. There are a bunch of hoops, a bunch of toll plazas, there you gotta go through in order for them to figure out that this is the right person. If you go there and say I want a yellow-colored CLK Roadster you don’t have that is stock, can you get me tomorrow? The answer is No. Everything can be done but only for the right person.

The answer will be no why don’t you take any one of these options that we have in mind they are thinking and describing driving a Maruti why does he want a yellow color CLK Roadster. He should be lucky to get Mercedes over it alright. So they are gonna have this qualification level to showcase smart salespeople. Good salespeople know how to sell better. Smart salespeople then know to sort better. Remember that a good salesperson sells better, smart salespeople sort better. Now that’s what we call an Express Highway.

What’s your current bet? We went through the lockdown, we went through the slowdown and there were some people who emerged and then said well you know thankfully my job is still secure, or thankfully my business is not hit as badly as other guys’ business. So I am still better off.

Then there are people who have taken some decisions, and they have repositioned their riveted careers or businesses and all of that. We’re still not out of the slowdown. You know the game is continuing, the game is still afoot. What I want to ask you is, what is your bet? What do you think is gonna happen? Why do I ask this is because, I truly believe that in the worst time of crisis the great opportunity to make money, and of course making money requires some sacrifice, sometimes it requires you to make difficult decisions and requires you to go all-in and all of that.

Back in the old days, there was no option except to go all-in. You had to take a risk with your entire self, so back in the post-9-11 slow down yeah I took a risk with my profession and I had a hospital job I gave it up and I went to marketing. Because I realize that the American market is going to come to India big time. Because the post-9-11 crash hit the American labor force pretty badly, I said if I have to make a killing in this market I have to reposition. Right now I didn’t have a degree, I still don’t have an MBA but I said you I learn whatever there is to learn. One Degree is as good as another.

Then later on in the post-2008, in the housing crash, I was working with the mentor who said that our company shares will triple in the next two years. If you are smart about this, this is at a time when in the US you know the papers were basically printing about people working jumping off buildings and their whole life saving the collapse of this type in the other housing put in the 2008 housing bubble crash. We are out here saying how do we triple our holdings in our company. How do we triple the value of our stockholding in a company by obviously helping the group company to grow 2x or 3x in the next two years?

That was my first experience of life seeing somebody literally rubbing their hands and saying and this killer opportunity we need to reposition and make sure that we make the best of it. Before that, I only heard people like Warren Buffett say that it’s only when the tide goes out that you realize who all are swimming naked. It basically means that when the down-market hits it’s only the very smart people who have been patient, who can reposition and make good.

These are typically the people who build the skills necessary for a down market, and then the other real estate investor Robert Kiyosaki you say is that enough when the supermarket as a sale people line up to go and buy but when the real markets which is the stock market to the real estate market when it hits the sale, which means you know this down market in people run away from it. So that’s the difference between rich and poor. So I’d heard all these big shots and these idols kind of talking. But the first time I saw it in real life, I was part of it and I was very grateful to be a part of such a story. I have been waiting for a recession for the last three years. People’s markets can repeat themselves every seven to ten years.

4 Type of People in Current Economy

Now, why am I telling you all this, there are four types of people as of this point in the economy. I can talk to you about them, I have some notes, I will listen, I will watch them as well.

The first Kind of People

I want to do something for myself, I want to do something for my family’s financial future, etc. But I have too little information. I don’t know what to do, I don’t know how to do it, So I need to learn about it, etc., so I am not sure right now.

The Second Kind of People

There are people who say, hey man this thing is too much happening, too much information. Doesn’t seem like too much information. It is called too good to be true. Lots of people are saying hey man, I made a fortune, I repositioned, I did this, etc. seems too good to be true.

The Third Kind of People

There are people who say hey man I want to test it out. I am interested, I want to test. What do I need to do? What step do I need to take? As long as it doesn’t involve me, you are putting too much at risk. I want to test; I want to do something in this market. Because you know it seems to be a good opportunity. T

The Fourth Kind of People

There’s a fourth type. What is number 4? man I need to do something because I already missed a couple of opportunities in the past. I have to do something. What is to be done, tell me? What needs to be done, tell me? I wanna test it, I wanna try it. And then there are people, I have to do it. Now if you are in the first or second segment, there is nothing wrong with that. If you say, hey I have too little information. It doesn’t seem to be something that is my cup of tea that is fair.

That is a risk that you know definitely is a risk and you want to cover your race, and then there are people who say there is too much information. You know I don’t know it seems “Daal Mein Kuchh Kala Hai” yah, doesn’t seem all right.

Too Good To Be True

I remember my own situation, I bought this bitcoin keep key, I think in 2018 or something. Just that day I was gonna buy, I was gonna put like 2.50 or 3 lac rupees in Bitcoin, the very next day, the day I received my keep key, I ordered it from the US. The day I received it thankfully the shipment was 3 days. Bitcoin fell by like some 25% or something and since then he’s never regained that value and that saved me a lot of money. It seems too good to be true, but I had to do it. So thankful I got to save a little bit of money. I know there are some Bitcoin enthusiasts in this community as well. I keep seeing your post attempts and all but that’s fine, but we don’t need to believe in the same things to be able to work together.

Later I figured out that Bitcoin’s inheritance value was kind of not supported, which is why you know that poor currency is still not finding its footing. Maybe someday it will but not today. Now let me just give you a little sample of why I believe that recessions hold the key to our future fortunes. Why is that? Back in 1999, India was at an all-time bottom in terms of foreign exchange balances, and all of that the reason was that they had followed communism. More communist or socialistic policy which is kind of more like Russia, China life policies and India was like we are over here in Asia, neighbors are Russia & China.

We are gonna follow policies like those and on the other side of the world like America was promoting capitalism which is that everybody needs to do something for themself. Don’t expect the state don’t expect the employer, don’t expect your family, don’t respect your elders to watch out for you. You got a watch out for yourself. That’s the essence of capitalism. Get into the market, figure out what the market needs. Try to provide it to the market and there is a space for everybody to play.

As long as the competition is fair and as long as people have the right intention etc., that’s what America set. India did not follow it in 1990 they had the worst situation ever. Then the government decided, hey man this is the bottom-most point, there is no way to go but up. It was the worst financial period and then they said we are gonna figure out what is required and we are gonna make those changes. They make those changes and because of that you know people in our generation is especially you know people who turned 18 by the time, they were like in you know by the turn of the century those people got to see you know huge amounts of prosperity not only because of capitalism in general but also because of more open foreign trade and things like that.

Low Demand of Indian Employees

Now we are as a situation over here today, If you are a corporate professional whose second tired of their job to feel at risk because you’re not the coolest cat in the world you working for an MNC who makes money in euros or pounds or dollars and they were able to pay you hefty salary, but today people like you are available in Vietnam, people like you are available in the Philippines, I myself have run an outfit with 1600 employee out of which 800 Philippine so I was a pretty good experience of starting and running a company outfit over there.

So you are not the coolest cat in the world, that demand is shrinking for Indian employees especially overpaid Indian employees who get paid up to 40 lacs a year which is pretty much the pay range that they could get in the US also. An h-1b is employed typically 40-50 lakh per year in Tier 1 cities except for San Francisco and New York City as a kind of money that is paid.

You are pretty much in that segment so you are expensive, the demand is low and people like you are in plenty of demand-supply situations not good for you. If you are a doctor, lawyer, chartered accountant, architect, certified professional, you suddenly realize that you are in the one country on the planet with an oversupply of doctors, lawyers, accountants, and architects. You don’t feel so special anymore. You will like it; I work so hard. I myself have a professional degree, and you know I worked so hard.

You know, given all the all India exams I got myself a seat but myself you know the degree and you know I am in a place where there is an oversupply and under demand. If you are a small business owner who realizes that you know being a small business owner is not good enough because if you have a shop on the street every little band, there is every little social political-economic change there is every little health-related and a Covid the first business to be shut down forcibly is yours. And you’re sick and tired of it. Then you need to start figuring out if this is a good time for you to reposition. Are you gonna wait another 7-10 years for the next downturn?

Today we’re gonna talk about targeted marketing. How does targeted marketing work? What is the psychological difference between display marketing and targeted marketing? We are gonna go through that. I truly feel that a lot of Indian business owners need to start learning about these things. Because, like I keep mentioning, again and again, that supply-based marketing supply-based economy as you know kind of changes then we don’t have the kind of demand that is existing in the market for the last 20-30 years.

You need to start understanding how to generate the demand and for that there are two different kinds of marketing and you know one of them is something that I recommend one of them, something that I don’t recommend the decision is entirely yours. But if you’ve been doing one of these you will know exactly whether it works or not and then you will understand why I keep talking about the topics that I do.

So let me just quickly get into the subject matter. We have two types of marketing.

1. Display Marketing – which is geared more towards inbound inquiries
2. Outbound marketing – which is geared more towards I am gonna go out to get the customer’s attention and convert into business.

How does it work? Let me give you some examples that you have probably used in the past. TV ads, putting ads on the TV. If you are a big business you will probably put ads on the TV. They are very expensive. But with the number of channels that they are expanding has got a call from some companies saying, hey man we are a TV channel we just opened up, we have like 20000 subscribers and many of them are in your town. So if you would like to give the TV ad which starts with 20000 rupees or something like that. They can get very expensive because obviously TV by itself is a very expensive medium. Then you have something called a newspaper. Again they will start with a minimum of 10000 to 20000 rupees depending on what newspaper you go for. If you go for the Times of India and all they would get very very expensive. Then you have things like visiting cards, right people make visiting cards and they keep throwing out these visiting cards everywhere. Hey, man here is my card, here is my card.

Now if you are a corporate employee, ok what are the big questions that I get from students of the Startup Frat academy of corporate employees? Says I am already working in a job I have my boss, I have my colleague’s and you know I don’t do anything that puts my name out there with you know they may find it and they say it, Hey man, why are you trying to build your own business?” Because of the people’s crab mentality, right if you’re trying to do something nice for yourself there are people who try to kind of you know figure out how to hurt you, pull you down.

This is a very normal human nature, no problem about that, but obviously, if you are in a job, if you are a corporate employee or if you are some person who wants to keep the business activity different from their family. They wanted their family to know they wanted friends to know which is perfectly fine are highly recommended it. Then doing things like putting your name into the newspaper, throwing out a bunch of visiting cards everywhere, but you know the wrong kind of people may find it. People put stickers all over the place like they go to commercial buildings and you have the stickers you know this is what we do etc.

You have people put banners and hoardings knowing they could be very small like you have the small banners put up on tries and so on and then you have larger holdings and all. You have people doing spanning on the Facebook group, you join a Facebook group which is meant for like entrepreneur Facebook groups and then everybody puts up their post, Hey man I help people do GST, Planning, etc and here is my number and all that. That’s the display, then you have websites ok by now you must have figured out the website is a great thing to have but it’s not gonna get you business. In fact, in the Startupfrat academy, I have helped students to get up to six figures of income without even having a website.

Why because nobody at the time goes through our website and a website is the number one reason why the wrong kind of people find you. Anything to do with YouTube or Google SEO Right, especially your name, your face on a website.If you are doing Google SEO or if you are doing a bunch of YouTubing. None of this stuff can make you money. Let me just cut it short. All this YouTubing etc is not gonna make you money because all of these things are mint for big players.

For you to become big on YouTube will take an average of 800 days of video posting every single day. Means more than 2 years. Posting 800 days of video content probably makes you a YouTube sensation. But do not bet on it. Then you have people throwing up business names and addresses on Justdial & Yelp and other sites which is fair no problem. Freelancing websites and all of those networks are called yellow page networks. This is great, there is no problem with that but the point is you will either not get business or you will get a price compared with at least 10 people before I ever get a customer inquiry. Why? What does Justdial do? Have you ever gone and given an inquiry like an end customer on Justdial you say, Hey man I want an electrician. They are gonna send you the phone numbers of 10 electricians and you start getting calls from 10 different people before you ever make a decision as a consumer.

So the networks are in the business of providing the consumer the best possible choice. This is awesome, but as a business, if you are listed over there you are just one among many and you will be priced compared with hundred other people before you ever get a business sale. All of these are essential displays kind of advertising, where you are expecting a deal to come through the door. A paying customer came to the door. It doesn’t work like that and if you are a business owner you would have realized that by now. Even if you are a certified independent professional like a doctor, lawyer, chartered accountant architect you would realize that this stuff doesn’t get to the business. At least not the kind of customers that you want and not the kind of customers that you will get. You will make a tidy profit and you will be in a position to serve them to your best ability. you will get the price rates and all of those kinds of people you are unable to help them and serve them to the best of your capability because they don’t want to pay you anyway.

Outbound Marketing

Now we have something called outbound marketing. What is outbound marketing? Outbound marketing is highly targeted marketing that you can start with the investments in terms of money are a fraction of what you would pay for any of this type of marketing. Just to give you perspective, a good website will cost about 65000 rupees a year to maintain. If you can get a website for 5000 rupees, I will make you a website that is not gonna work. So a good website will cost you about 60000 to 65000 rupees a year just to maintain the website. If you get SEO services, If you get up the smart Alec person who knows Google SEO, Google keywords and kind of put you in the directories and all of that, it will cost you at least two and a half lakh rupees a year my friend.

If there is somebody who said I can do your SEO for 8000 rupees and all of that. trust me it’s not gonna happen. How do we do targeted marketing? I’ll give you different scenarios. All of these will work for you. The first one is instead of giving an ad in the newspaper which will cost you upward of 10000 to 20000 rupees. You could start by distributing pamphlets which have a deal on them. How do you work that? You go to the newspaper supplier who has a distribution in the 10 societies in your area or different area. Which is why it is targeted. You can find a newspaper supplier on the other end of town, you will find a newspaper supplier who is in a different town, etc and you pay them Rs. 1000 and they will put 1000 pamphlets or 500 pamphlets into 500 different newspapers. Put all these newspapers only in 1 society.

Now imagine you have a restaurant, you put Rs. 500 or Rs. 1000 in one society, you put another Rs.1000 worth pamphlets in another society. You put another Rs.1000 pamphlets in 4th society, you put another Rs. 1000 pamphlets in 5th society ok. in the kind of place where you don’t have your friends, colleagues, family members, etc. So you are really targeted really fine. Now you imagine you are a restaurant that serves nonvegetarians and one of these societies will have a lot more vegetarian people living there. So you are not gonna get any inquiry, not gonna get any business from this society.

Maybe there’s another society which may be a little low-income level where people don’t kind of afford the kind of dish prices, the price per dish that you are charging and you get a negative return on investment. This means you lost your thousand rupees in the first society. In the second society, you got only 2 orders from the whole housing society and the orders amounted to 800 rupees so you lost 200 rupees. In the third society what happens is you know you have your kind of customers may be the social or economic type etc. All those people are slightly better, you get let’s say 2000 rupees of business, in the third society get 4000 rupees of business and the last society let’s say you get 5000 rupees of business. Imagine you have a profit percentage of 30% of 5000 rupees a business, you make 1700 rupees profit. What does this pamphlet say? It says Friday night 30% off, If you order between the hours of 6 o’clock to 9 o’clock so we can serve a customer, provide timely deliveries. So after 30% of you are able to make let’s say 28 to 30% profit on your dish price. The restaurant business typically makes about 50% profit. Let’s say you collect Rs.1700 of profit on this Friday night, for a thousand rupees of investment.

Now, what should you do from next Friday onwards? Whenever you roll out a deal if you cut out all other social expenses and you focus on the 5th society, and then you add go society by society by till you have at least 4 or 5 societies that you know that you’re gonna make a tidy profit because the taste of the customer, the socio-economic status of the customer matches exactly what you providing. Imagine you start building a customer audience who are over a period of time they are loyal to you and you know they want to get the best service the best possible quality from you and you know that they are the kind of people who like to order out on Fridays and pay for it.

Telecalling

Now the 2nd model is called telecalling where you personally pick up the phone or you have a person pick up the phone you know you have an employee who picks up the phone make a hundred calls the day you get your appointment or you get your walking and your calling the kind of people that you want to call, again you follow the same exact model. You get a small database from somewhere, get another small database from somewhere and you call them and that’s how you run the model. Again you can make it very targeted, so you are not calling your own town, you are not calling the areas where you have your own colleagues, bosses living there, etc. If you are into B2B, which is you know calling a business or a company you can literally just exclude your current employer and have your telecalling guy call the companies he said that you intend to. This can be very very targeted.

Again upfront investment can be very low indeed the telecalling salary for a person will be 20000 rupees upfront. You can pay them some incentives and all. They perform well, but let’s say about Rs.20000 in any tier 2 city. If you are in a tier 1 city like Bombay or some other city, maybe the salary will be higher. So the spend is lower for Rs.20000 this guy will make 100 calls a day, 25 days a month that 2500 calls. Instead of just spending Rs.20000 on a newspaper ad and waiting for a customer to walk in.

The second thing is targeted ads. Anything to do with Facebook, Instagram, etc is a pay-for-play. This means regardless of how beautiful a Facebook profile you have and what nice business page you have and things like that. Nobody is ever going to find you on search. So you have to pay to play which means you have to either pay for ads or you have to do targeted marketing manually using a technique which is called the dollar 1.8 method which is the famous social media influencer Gary Vaynerchuk you know propagated. You can do it manually you can do it pay to play which is paid ads but all of these incidentally are not brand building ads. All of these ads are action ads which means they call us, message us, do this, you know put go on WhatsApp, put in an inquiry. Since the direct action ad that you tell customers you know.

If you like this you put out an ad that says If you want this discount or if you want this Friday offer, if you want something like this just message us, call us, send a WhatsApp message. These are targeted ads. Then you have something called SMS marketing which is again you can get your SMS agency to pay to send SMS only in a particular pin code you can send SMS is only in a particular City you can send SMS is only to people who are interested in you know financial products, only to the people who are interested in restaurant products, only to the people who are interested in Lifestyle products and things like that can be very very targeted. It will get you the necessary queries at the door. Now the key difference with this type of marketing can be highly predictable and the amount of profit or they want revenue to make from this activity will depend on whether you have a consistent system which we call in our community the Express Highway System. You have a consistent system to convert customer attention so what you’re doing is you literally buying customer attention by spending some money over here, by employing a guy over here. Then you’re buying customer attention, so you need to have a consistent predictable model of using this customer attention multiplying the customer attention harnessing, the customer attention, and making a profit from this customer attention. If you do not have a process like that then neither will this work for you, and I can guarantee you nor will this work for you. People think that, If I throw money at the problems suddenly I start getting business the answer is no not in this market. I can guarantee not in the future in India at least you can do this because this whole shift happened in the US about 50 years back and since then it’s never been the same again.

Demand Generation

So if you go to a supermarket and look for corn flakes they have so many irons full of conflicts of various prices, various varieties, various flavors, various brands. If you are one of those brands your guarantee to never make a profit if you’re depending on Supermarket walk-ins to sell your product. So that brings us to something called demand generation. Is this process called a predictable process of getting customer attention, harnessing customer attention, multiplying and maximizing customer attention, and then monitoring customer attention? So you make a profit this process is called demand generation.