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.

Outlines

00:00

📈 Hyperlocal Marketing Strategy for New Startups

The speaker emphasizes the importance of micromarketing and hyperlocal strategies for new businesses, especially during challenging economic times. They recount their personal experience starting a business in 2009 and how focusing on a specific development led to success. The strategy involves being visible in a single area, building relationships with local businesses like landscapers, and understanding the numbers game in sales and marketing. The speaker also discusses the value of direct mail during a specific epidemic of insects, which resulted in significant revenue and customer acquisition. They stress the importance of persistence, numbers, and the reality of rejection in sales.

05:01

🚀 Targeted Marketing and Prospecting Techniques

This paragraph delves into targeted marketing, suggesting that businesses should focus on affluent neighborhoods and use platforms like Facebook ads and Nextdoor for localized advertising. The speaker recommends offering free services as a marketing hook, comparing it to the strategies used by restaurants to attract customers. They also discuss the importance of prospecting, akin to mining for gold, and the necessity of identifying needs and wants through direct interaction. The speaker encourages businesses to be persistent, creative with marketing, and to leverage social media for live demonstrations of solving pest problems in the community.

10:02

🎯 Concentrated Marketing Efforts in Specific Territories

The speaker argues against the idea of spreading marketing efforts too thin and instead advocates for concentrating efforts within a five-mile radius of a business's location. They emphasize the importance of becoming the most knowledgeable service provider in that area and building a strong local presence. The speaker shares their own strategy of being highly visible in affluent neighborhoods, which led to higher-paying customers due to the perceived value of their service. They also discuss the importance of reinvesting profits into targeted marketing campaigns and the benefits of being both gentle and shrewd in business practices.

15:02

🛠 The Importance of Focusing on Quality and Proximity

In the final paragraph, the speaker stresses the importance of focusing on quality over quantity and the benefits of servicing clients who are geographically close to minimize travel time. They argue against the common mistake of chasing clients who are far away, which can be inefficient and unproductive. The speaker shares their own experience, stating that their methods are duplicable and have consistently worked. They encourage businesses to exhaust their local market before considering expansion and to understand the value of深耕ing a specific area to build a strong client base.

Keywords

💡Micromarketing

Micromarketing refers to a marketing strategy that focuses on a very specific, localized area or demographic. In the video, the speaker emphasizes the importance of a hyper-local strategy by naming his company 'Nature Pest of Dr' to target a specific city and development, illustrating how a concentrated marketing effort can create a strong local presence and brand recognition.

💡Prospecting

Prospecting is the process of searching for potential customers or clients. The speaker uses the term to describe the need for persistent outreach and sales efforts, even when faced with numerous rejections. It is likened to mining for gold, where one must sift through many possibilities to find valuable prospects, as illustrated by the speaker's strategy of knocking on doors and talking to potential clients daily.

💡Numbers Game

The 'numbers game' in sales refers to the idea that success is often a matter of making a large number of attempts, with the expectation that a certain percentage will result in sales. The speaker mentions that selling is all about numbers, emphasizing the need to accept the reality of high rejection rates and to focus on the quantity of interactions to increase the chances of success.

💡Referral Marketing

Referral marketing is a strategy where existing customers refer new clients to a business. The speaker discusses offering payment to landscapers for referrals, highlighting the cost-effectiveness of this method compared to traditional advertising. It underscores the value of leveraging existing relationships to acquire new clients.

💡Direct Mail Marketing

Direct mail marketing involves sending promotional materials directly to potential customers' homes. The speaker recounts a successful direct mail campaign that targeted a specific insect epidemic in a neighborhood, resulting in significant revenue. This example demonstrates the power of timing and relevance in marketing campaigns.

💡Facebook Ads

Facebook Ads are a form of online advertising that allows businesses to target specific demographics. The speaker recommends using Facebook ads within a five-mile radius of the business's target area, taking advantage of the platform's competitive pricing and targeting capabilities to reach potential customers effectively.

💡Free Offer

A 'free offer' is a marketing technique where a service or product is given without charge to attract new customers. The speaker suggests offering free services, like a one-time spray for pest control, to entice new clients. This strategy is compared to the practices of restaurants offering free desserts or drinks to attract customers, emphasizing the allure of 'free' in marketing.

💡Nextdoor

Nextdoor is a social networking platform for neighborhoods. The speaker proposes using Nextdoor to advertise a free weekly service to build trust and visibility within the community. This approach leverages the platform's local focus to create a direct connection with potential customers in the immediate area.

💡YouTube Live

YouTube Live is a feature that allows users to broadcast live video content. The speaker recommends using YouTube Live to demonstrate expertise by showcasing pest problems found in specific neighborhoods and offering solutions on the spot. This strategy aims to establish the speaker as an authority in his field while also marketing his services.

💡Territory

In the context of the video, 'territory' refers to the specific geographic area a business focuses on for its operations. The speaker advises against expanding too broadly and instead emphasizes深耕 a smaller, more manageable territory to build a strong client base and brand presence, as evidenced by his strategy of farming a five-mile radius intensively.

💡Quality Over Quantity

The concept of 'quality over quantity' suggests that it is better to have a smaller number of high-quality interactions or clients than a larger number of less valuable ones. The speaker argues for focusing on a smaller territory and providing excellent service to build a solid reputation, rather than spreading efforts too thin over a wider area.

Highlights

The speaker emphasizes the importance of micromarketing and hyper-local strategies for startups, particularly in challenging economic times.

A personal narrative is shared where the speaker named their company 'Nature Pest of Dr' to focus on a specific local area, gaining recognition and business through consistent presence.

The concept of 'numbers game' in sales is introduced, stating that persistence and the ability to handle rejection are key to success in sales.

A strategy of building relationships with local landscapers and offering them incentives for referrals is suggested as a cost-effective marketing approach.

The speaker advocates for the mental acceptance of the high volume of rejections as part of the sales process, comparing it to sports statistics.

The importance of targeting affluent neighborhoods for a higher potential return on investment in marketing efforts is highlighted.

A detailed strategy for door-to-door marketing is outlined, including the use of a segway for efficiency and the importance of consistent presence in a targeted area.

The ineffectiveness of generic marketing materials is critiqued, with the speaker advocating for strong offers and clear design in marketing materials.

A case study is presented where a targeted flyer campaign during an insect epidemic resulted in significant revenue and new customers.

The speaker emphasizes the importance of timing and relevance in marketing campaigns, using the example of a successful one-time flyer campaign.

A strategy for using Facebook ads within a five-mile radius is suggested, leveraging the current competitive pricing of the platform.

The concept of offering a free service as a marketing hook is discussed, drawing parallels to common practices in the restaurant industry.

The speaker encourages the use of platforms like Nextdoor and Facebook for localized marketing and community engagement.

A unique idea of live-streaming on-site pest control issues and solutions as a form of community education and marketing is introduced.

The importance of focusing on a small, manageable area for marketing and sales efforts is stressed, rather than spreading resources too thin.

A critique of the 'easy button' mentality in business is presented, with the speaker advocating for hard work and strategic marketing over wishful thinking.

The speaker shares insights on the importance of reinvesting profits into targeted marketing campaigns to grow a business sustainably.

A final emphasis on the need for shrewdness and strategic thinking in business, rather than just technical skills or good intentions.

Transcripts

my strategy for you I'm giving you a

strategy if you are starting

up I'm going to give you a strategy

right here of the strategy I

used 15 years ago in 2009 in the hardest

economy to hit this country in a long

time where most people folded I started

up and my strategy is a marketing is a

micromarketing

micromarket hyper local strategy

and here's what I did I literally named

my company nature Pest of Dr why because

I did all my business in one city and

literally 80% of my business was in one

development

alone people saw me there every single

day and they thought I had hundreds of

clients there because you're always here

I see you here every day if you have no

money and you've got 4050 clients why

are you going home until you've sold

something you should not be going

home to your to your family without

saying I talk to 50 60 100 people today

and 99 turned me down but I got

one you're you're quitting because

you're hoping it's going to be easier

than it really is and if you can come to

term with those numbers because selling

is All About Numbers marketing is All

About

Numbers it's a numbers game

and if you can play the numbers game and

understand it you can walk away from 99

Nos and say thank you for the 99 NOS

because it puts me closer to my one

yes and it's and and a lot of you can't

accept that you look at it as defeat I

said that's the

game that's the game how many shots are

taken in a basketball game and how many

shots actually make the

net how many how many times is the ball

rushed is the ball carried and how many

times did it actually go across the

Finish Line how many swings at a bat you

take to that one home

run their numbers are there the stats

are there for a

reason and and you have to just get

mentally it's not about even being

mentally tough it's just really about

accepting that reality so what did was I

was in a development and the way I got

started is I started developing

relationship because my specialty was

lawn and ornamental I built a

relationship with all the landscapers I

would offer to pay them 50 bucks a 100

bucks you saying I can't afford to pay

100 bucks listen it if you're looking at

the long-term value of a client a

hundred bucks to pay a

landscaper to start referring you their

clients is peanuts compared to the $150

to $400 you're going to pay in

advertising to get a conversion people

say $25 a click that's ridiculous that's

the reality you have to accept that

reality my cigar shut off on me so I

talk too d g

it and I'm too lazy right now to get up

and go get another lighter because I

didn't bring my

lighter um but if if you go into a

neighborhood and you pick look if you

haven't

gotten out of out of a five mile radius

let's say you're in the average

Metropolitan Cosmopolitan

City what I want you to do is I want you

to find where the money is you got to

follow the money you always have to

follow the

money you go to the neighborhoods where

you know the income is 100 100 to

150,000 plus a

year you map that area for five miles

you're probably going to have 5,000

homes in that area in a zip

and you farm that area every single day

if you're driving there for a client on

that day you should be hitting 50 60 70

houses I don't care if you have to buy a

segue on a credit card you put it on a

hitch attach it to the back of your

truck you park your truck and you go on

a segue around that entire neighborhood

knocking on every door I hate door

knockers I don't like it I don't care

what you like it isn't about what you

like I people don't like doors knocked

it doesn't matter what people don't like

being marketed to people don't like

being sold yet people are getting hit

with 50,000 pieces of marketing a day

and you think your flyer that you put

out that has no strong offer that has a

million words of text that nobody's

going to read has a crappy design and

you think that's going to get you a

conversion you're kidding

yourself I don't mean to piss on your

parade but that's reality

I've done Direct Mail

marketing but I knew when to hit when

that happened and I went ahead and did a

flyer and I sent it out to 5,000 homes

during a time where there was an

epidemic on one specific insect on

plants that everybody had in that

neighborhood and everybody was getting

and that one flyer which I spent I Must

Have Spent 5,000 made me over

$28,000 in new revenue and new

customers that was a one hit wonder I

cannot I tried to replicate that again

and I

couldn't but I was smart enough to know

hey I'm gonna do this right

now but that was it it's not going to

work every single time you you look at

the the mail companies when mail order

was big uh Bed Bath and Beyond was

sending out a flyer every two weeks to

my house I literally marked it then

offer an a coupon to me into that

store yeah it's not going to light up

up so what I say is don't come home if

you just started out in business and you

haven't prospecting prospecting is hard

the term prospecting if you if you know

history comes from mining for

gold and the average person never mined

enough gold to eat that day because you

had to move a lot of dirt you didn't

know how to mind for it you were panning

in a

river and you were prospecting what

you're doing every single day is finding

out who has an interest the problem is

until you knock on that door you don't

know if there's a need or a

want you have to know if there's a need

or a want the only way you're going to

do is to talk to people if you want to

do gas stations in restaurant you should

be driving by every single gas station

you drive by going in and talking to

them and saying hey let me write you up

a call we don't need a qu we got a come

I'm gonna write you up one anyway I

don't care it's a mindset I don't care

that you have no NE or one I'm going to

give you a quote right now I'm here that

ant Trail are you interested in taking

care of that ant Trail see if you take a

FIV mile radius folks I'm giving you

this for free you take a fivemile radius

around the area you want to

hit run Facebook ads around that F mod

area Facebook ads are the cheapest right

now they've ever been because there's so

much competition on Instagram Tik Tok

and all these other platforms and

they're cheap do it on a five M radius

now you take you do you do Facebook ads

on a FM radius and now you take you take

next door on a f mile radius and what

you tell people is listen every single

week because you're going to be there

automatically every day that week right

you're going to be on Thursdays because

you're doing one house in that territory

you said anybody who wants a free spray

I will give you a free onetime spray for

and control whatever it is you're trying

to control around your house on Thursday

everyone gets it for free you put put

that ad out on on on Facebook you put

the ad out on next door you're putting

out a flyer that says hey every Thursday

for the next year whatever offer expires

every month and you just redo the

offer and you say but I'm not going to

give it away I'm not going to give

initial away why not think about this

right now you're sitting in your truck

with your thumb up your butt running

around getting no

clients you have no money Fork marketing

which cost you 150 to 400 when you

factor in how many clicks it takes to

get a conversion how many calls it takes

to get a conversion then how many people

drop off and cancel on

you and you don't have the bandwidth you

don't have the networks you don't have

the

connections why wouldn't you just give

away the service to get someone to try

it to get them hooked on it like a crack

dealer I mean they do it all the time

why can't you learn from a drug

dealer I don't get some of them in

mentality that I hear from people I'm

not going to give my

service I said restaurants do it all the

time get a free dessert if you buy a

meal come in for a free drink to get you

in the door the the the number one

marketing word in marketing for the last

one million years has been

free I will do a free inspection I will

do a free service around your house only

on

Thursdays when I'm in that territory and

now that truck is there every single

running around people see you running

around with a segue they have to be

curious of what is a grown ass man with

a tablet in his hand doing with a shirt

that has on the back plastered Pest

Control running around a neighborhood

and if you're there every single

week you're already going there knock on

50 doors you have nothing else to do you

have nothing else to do but go home put

your head on your pillow and cry about

how hard it

is instead of just doing something

eating that frog biting the bullet

getting it done because that's going to

be your only

way well all these pest control

companies that are doing all this they

don't even know what they're talking

about great so if you know what you're

talking about why aren't you doing it I

would be doing a a a a YouTube video

with a YouTube

channel with your company name and the

City and a

playlist of that City every single week

of the pest problem you find in that

neighborhood and I would be doing it

right there on site live like I'm doing

here now Frank the PES geek is live Joe

the PES in you know Bentley whatever bun

whatever City you're in is now live and

you do no editing you don't have to go

back I don't have time to go to a studio

what's software should I use

dingdong you're there you have a phone

you buy a software like this that cost

you I think this cost 25 bucks a month

and you go live on Facebook you go live

on Twitter you go live on all of these

platforms from your phone and saying

this is the problem I'm finding in this

community and this is how you solve it

Mr

customer this is the product you use

this is what you use this what and you

know what those people who are making

$150,000 a year in that neighborhood

ain't never going to do

it you have no you have nothing but time

on your

hands and you're sitting there going I

wish there was an easy budy there is no

easy Buton nobody's coming to save you

there's nothing no amount of prayer is

ever going to do the work for

[Music]

you farm that one five mile area for a

year and if you can't bring in five 00

clients if you don't until you've

exhausted 10% of that market of that

neighborhood and 10% and kicked

everybody there and went ruthless on

everybody and

Cutthroat because you're going there

you're saving the time I was the I was

so high priced it didn't matter to me

because I was in a I was in a

neighborhood where houses were going for

a million dollars while everybody else

was selling there for

$200,000 they would spend the money with

me they would see my truck this is when

you're done I see you here every day

when you're done spraying his lawn come

and spray my

lawn because they see you there every

day that's your marketing strategy stop

wanting to go everywhere all over God's

creation because somehow a FIV mile

radius with 5,000 houses isn't big

enough for you when you haven't even

closed 1% of that when you've exhausted

50 houses in that neighborhood in that

five M radius then come and talk to me

about how you need to expand your

territory when I talk to people about

franch es and I said I'm limiting you

500,000

people they're like no no I want to be

able to go anywhere I want I say you're

an idiot because you don't have the

money to do all that marketing to go

into two counties you just want to have

the freedom to say if somebody calls me

from two hours away I'm going to go

drive two hours because I need to eat

today I said that is the mentality that

is killing all of

you that you do not understand business

you don't understand sales

you don't understand marketing you

understand how to be a good technician

you're a great person people love you

you're a good human being you have a

great heart but that isn't enough to cut

it in business you have to be gentle as

a dove and shrewd as a snake see the

Commandment is

dual you don't want to be shrewd as a

snake but I'd be going in there and

saying every Thursday you got five

neighborhoods that you have five clients

in and you're going out for two to three

clients in a day when you're just

starting out every it would be like

Fridays I'm doing this and I'm doing

this marketing campaign and on Wednesday

I'm doing this marketing campaign and on

Thursday I'm doing this marketing

campaign and I'm hitting everybody here

in this area and then when you start

making money and you got $500,000 dollar

a month you keep putting it back into

those Facebook ads you can you can do

I'm doing right now Google AdWords okay

folks Google AdWords in a very tight

area with 400

keywords and I'm paying 40 something

cents 12 to 40 something cents a

click yes it will take 10 15 clicks to

my side who cares I paid $15 for that

lead where are you going to get a lead

for

$15 but you're thinking too big instead

of thinking less less is more quality is

better than quantity give quality

be the most knowledgeable guy in those

five neighborhoods and focus on those

five neighborhoods that you have five

clients in that is the closest to your

house where you leave here and you're

going 15 minutes this way 15 minutes

this way 15 minutes this way 15 minutes

this way you spend most of your time

chasing good clients than chasing 45

minutes an hour you're going out for two

clients spending three hours a day on

two clients that's

asinine I mean you you guys ought to get

your head examined because it's crazy to

do that that's because you don't get

it I this when I first started I'm not

telling I'm not trying to sell you on

something I didn't do it's all

duplicatable it's not like it's oh he

had a I had a one hit wonder one time

that I've never been able to duplicate

but every time I've done this it works