What Most Business People Need To Learn From Drug Dealers

Summary

The speaker shares a micromarketing strategy for starting a business in a tough economy, emphasizing the importance of hyper-local marketing. They recount their own experience of establishing a pest control business by focusing on one city and one development, building relationships with landscapers, and leveraging the numbers game inherent in sales. The script encourages persistence, direct marketing, and innovative advertising, like offering free services to hook customers, and suggests using social media and targeted ads to grow a business within a five-mile radius.

Takeaways

• 🚀 Start with a micromarketing, hyper-local strategy focusing on a small, specific area to build a strong presence and brand recognition.
• 📍 Name your company to reflect the local area to reinforce the idea that you are a constant, reliable presence in the community.
• 🔢 Embrace the reality that sales is a numbers game; be prepared to face many rejections before securing a sale.
• 💡 Develop relationships with local businesses, such as landscapers, and offer them incentives to refer clients to you.
• 🏘️ Target affluent neighborhoods where the potential for high-value clients is greater, and focus marketing efforts in these areas.
• 🛴 Utilize cost-effective transportation like a Segway to cover more ground and personally engage with potential clients in the neighborhood.
• 📚 Understand that marketing is about numbers and statistics; learn from the success rates of other industries like sports to improve your approach.
• 📝 Invest in direct mail marketing during times of high demand for your service, but ensure the offer is strong and the design is compelling.
• 📱 Leverage social media platforms, especially Facebook ads, to reach a targeted audience within a specific radius at a low cost.
• 🎯 Offer free services or inspections to attract new clients and build trust, using the 'free' marketing principle that has been effective for ages.
• 📹 Create content, such as YouTube videos or live streams, to demonstrate your expertise and provide solutions to common problems in your service area.

Q & A

What is the core strategy discussed in the transcript for starting a business in a tough economy?

The core strategy is micromarketing, focusing on a hyper-local approach where the business owner operates within a specific area, building visibility and relationships to establish a strong local presence.

Why did the speaker name his company 'Nature Pest of Dr.'?

The speaker named his company 'Nature Pest of Dr.' because he conducted most of his business in one city and specifically targeted one development, which helped him build a strong local brand presence.

What is the importance of numbers in the context of selling and marketing according to the transcript?

Numbers are important because selling and marketing are essentially a numbers game. The speaker emphasizes that understanding and accepting the numbers, such as the number of rejections before getting a 'yes', is crucial to success in sales.

How did the speaker utilize relationships with landscapers to grow his business?

The speaker built relationships with landscapers by offering to pay them for referrals. This was a strategic move as it was more cost-effective than traditional advertising and leveraged existing client relationships.

What is the significance of focusing on high-income neighborhoods in the speaker's strategy?

Focusing on high-income neighborhoods is significant because it increases the potential for higher-value clients. The speaker suggests mapping out areas with higher incomes and farming those areas consistently for business opportunities.

Why does the speaker advise against going home without selling something when starting a business?

The speaker advises against going home without selling something to instill a strong work ethic and persistence. This mindset is meant to push the business owner to continuously seek out opportunities and not give up easily.

What is the role of direct mail marketing in the speaker's strategy and why did it work for him?

Direct mail marketing played a role in the speaker's strategy by targeting specific neighborhoods during a time of need, such as an insect epidemic. The success was due to the timely and relevant offer, which led to significant revenue and new customers.

How does the speaker suggest using Facebook ads to support a local business?

The speaker suggests using Facebook ads within a five-mile radius of the business's target area. He emphasizes that Facebook ads are currently cost-effective and should be utilized to reach potential local customers.

What is the concept of 'free' in marketing and how does the speaker recommend using it?

The concept of 'free' in marketing is a powerful tool to attract customers. The speaker recommends offering free services, like a one-time spray for pest control, to get customers to try the service and potentially become long-term clients.

Why is consistency important in the speaker's marketing strategy?

Consistency is important because it builds brand recognition and trust. By being present in the same neighborhoods regularly, the business owner becomes a familiar face, which can lead to more business through referrals and word-of-mouth.

What is the speaker's view on expanding the business territory too early?

The speaker advises against expanding the business territory too early, as it can lead to inefficiencies and wasted resources. He suggests focusing on a smaller, manageable area first and only expanding once a significant portion of that market has been tapped.

How does the speaker recommend leveraging social media platforms for marketing?

The speaker recommends using social media platforms like Facebook, Twitter, and YouTube to go live and showcase the problems found in the community and how to solve them. This approach helps establish the business owner as an expert and builds credibility.