In a recent Office Hours episode, I highlighted the importance of long-term business relationships. I also argued that combined with the right tools available today, digital marketing agencies can have a profit-sharing model with their clients based on the incremental revenue that is generated by applying the techniques taught in Office Hours.
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Investing in Long-Term Relationships for Business Success
Investing in long-term relationships is essential for success in business. Compound interest applies not only to financial investments but also to relationships. Warren Buffett called compound interest the eighth wonder of the world, and it certainly applies to the power of strong relationships. I’ve learned this firsthand by reflecting on the people, projects, and things that have made the most money for me in my career – they have all been the result of long-term relationships.
For example, my friend Warren Whitlock and I have been partners on an ebook site that receives a million visitors a month for 17 years. Our friendship has only grown stronger over the years, and so has the success of our partnership. It’s like the power of doubling a number repeatedly – after a certain amount of time, it becomes a huge number. The same applies to relationships – the longer and stronger they are, the more powerful they become.
Yesterday, a fitness influencer friend of mine coached me on how to improve my health, including how to do a muscle-up. I can do five pull-ups, but ten are required for a muscle-up. I’m taking direct action by doing exercises and adjusting my diet with the help of my coach, who has over 118,000 followers on Instagram and 78,000 on YouTube. I’m already seeing some initial results, and my coach checks in with me multiple times per day, which is amazing.
In return, I’ve helped my coach by connecting him with a video editor, which frees up his time to focus more on coaching and helping people like me. This mutual support is inspiring and empowering.
I admire and learn from people who have skills and values that I want to emulate. For instance, one of my favorite clients, Daryl Isaacs, recently expressed gratitude for our work launching websites. I replied to thank our web developer instead for fixing an important issue with the buy button, and Daryl replied, “No, thank you. I’m trying to be more like you.” This interaction exemplifies the reciprocal relationships I strive to build.
I believe that surrounding oneself with accomplished and inspiring people creates opportunities for growth and success. By learning from them, I can improve my own abilities, build my network, and share my knowledge with others.
As digital marketing becomes increasingly important, our ability to multiply our success through relationships is crucial. Whether we are business owners, agencies, or coaches, our success depends on our ability to foster and maintain strong, long-term relationships.
Our Approach: Amplifying Good Work
The Golden State Warriors were our client for five and a half years. Although everyone wanted to attend the games, I only had four tickets per game, which I reserved for clients who deserved a reward for their work. Occasionally, if a client couldn’t attend, we would allow team members who have done an exceptional job to fly in and watch the game.
We only work with clients whose values align with ours. Once, a random guy from Utah asked me to hook him up with tickets to the playoff game, claiming that he is a millionaire and might become a client. That’s an example of abuse. We value our clients not because they pay us money or give us gifts but because we believe in what they are doing and their values. As a digital marketing agency, we act as amplifiers, not prostitutes. We amplify the good work they are doing in their community.
We strive to have a good relationship with our clients, where we can grow and learn from each other. It’s not just about making money but making money with the right people. We don’t have to serve everyone, just the people who align with our values and beliefs.
This also applies to our team members, as the most important aspect of any business is hiring talented individuals, regardless of the industry.
Impact of Technology
Technology has always been a multiplier, as Bill Gates stated in his book ‘The Road Ahead.’ It can multiply both good and waste. It’s like a fire that can burn or cook. The forthcoming changes will impact everyone differently, and those who are not part of a good team with an advantage will suffer.
All the AI tools, processes, and changes are advantageous if we associate with the right people, share common values, and establish a framework to amplify our existing tools and processes.
ChatGPT is an intelligent tool that is not limited to one specific vertical. You don’t have to worry about syntax, semicolons, or compiling code. You only need to speak simple English to interact with it.
Previously, AI systems like Jarvis (Jasper) required the learning of specific syntax to interact with them. But today, all you need to do is talk to the system, and it understands what you want.
AI is evolving towards AGI, which stands for Artificial General Intelligence. Arthur C. Clark noted that the mark of advanced technology is that it appears to be indistinguishable from magic.
Currently, AI is generating content, but soon it will be integrated with all CRM tools to enable actions, and not just word generation. At that point, we need to consider how we can add value. We must establish our relationships now and provide stronger seeds, like through Google Photos or iPhones, so that AI can amplify what we have.
I recently spoke on Tom Ferry’s podcast about ChatGPT and its potential benefits for real estate agents. The top 10% of agents who use ChatGPT to enhance their location service pages will rank better on Google. However, this competitive advantage may hurt other agents who do not use ChatGPT, as SEO is a competitive game.
If you’re not in the top positions, it means that others are ahead of you, and winning in SEO means taking away potential business from your competitors. Therefore, it is essential for real estate agents as well as others to consider using ChatGPT to avoid losing potential clients.
How to Maximize the Potential of Technology
To make the most out of technology, it is important to first identify your assets, including your strengths, top relationships, and top products or services that you can multiply. Focus on amplifying these assets, such as by creating one-minute videos and promoting them with a low Dollar a Day budget. By doing so, you can effectively enhance your online presence and avoid being left behind in a competitive market.
The Key to Success
I mentioned above about creating one-minute videos. I used to believe that having the latest and best tools was the key to success. However, after getting in deep with the companies that make these tools, I’ve learned that having a 4K red camera versus an iPhone doesn’t make a difference in performance.
The best videos are often unedited, with no microphone, no fancy camera angle, and no script. They are impromptu and capture moments that are real and authentic. One of my clients, Daryl Isaacs, who has done several billion dollars as a personal injury attorney, has had great success with impromptu videos.
For example, there was a video where he was eating 10 hardboiled eggs, and we just happened to come upon him and say, “Hammer, what are you doing?” “Oh, I’m eating my eggs this morning.” “Really? Why are you eating all these eggs? Don’t you get bad breath?” “Well, it’s for my health.”
I find that keeping it real and authentic is crucial, not just because Gary Vaynerchuk says so, but because that’s what people connect with. In a world flooded with AI and auto-generated content, the craving for real and authentic content is ever more important. People will always crave the real thing.
Creating a Profit-Sharing Model: Amplifying Your Mission and Impact Through Social Media
If you have a clear mission and can back it up with what you do and what others have to say about you, you are creating a footprint that tools, available even today, can capture and multiply with social media as an amplifier.
Working with the right people and products can attract companies and brands that deserve to be amplified. Thus, social media amplifies all the good things, bringing more of those same kinds of people.
For example, I am on a mission to create a million jobs. In the past month, our productivity has reached an asymptotic curve due to our improved systems and people. This has led to a compounding effect, resulting in more clients and geometric progression in business growth.
We can 10x or even 100x what we already have. As we sit here in February 2023, we have many opportunities to share our stories and put our ideas out there.
If we use these techniques and apply them to your or someone else’s business, why not receive a percentage of the increase? Instead of charging an hourly rate or a monthly fee, measuring the impact of our efforts and earning a percentage of the profits could lead to greater rewards.
For instance, if we were able to increase someone’s business from 100 million to 150 million, we could receive 10% of that increase, which would amount to 5 million dollars.
If we think of ourselves as multipliers, we are not an expense, but rather, we get paid out of the profit.
A friend of mine, Sal Stefano, has a successful system for around 300 clients that are IV therapy med spas. He runs Facebook ads and has his own team of virtual assistants (VAs) to respond to and book calls. He measures everything, including the return on investment (ROI), and is now able to show that for the $2,000 to $3,000 monthly fee charged to each med spa, he generates an extra $20,000 to $30,000 in revenue.
Instead of just charging a monthly retainer, Sal Stefano now charges based on incremental revenue.
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