Dan Kennedy has had more influence in my business than anyone else. I consider him my best mentor and personal business hero, even though I have never met him in person. He’s taught me so much about marketing, specifically direct marketing, that it has literally transformed my business.
Listed below, I want to share 10 valuable business lessons I learned from Dan Kennedy. What you see in parentheses is the book I learned the lesson(s) from. These are listed in no particular order.
# 1 It is a Myth That Any Sale is Better Than No Sale (NO BS Price Strategy)
My Take: You have to be smart about your pricing and sales strategy. You need to make sure that every sale puts profits in your cash register. Never sell a product or service and lose money doing it. More importantly, don’t think that more sales are the answer to your cash flow problems. It’s much better to make fewer sales, but have higher profit margins than make more sales with very low profit margins.
# 2 No Other Business Offers You The Kinds of Fascinating and Lucrative Opportunities as Information Marketing Does (Get Rich Guide to Information Marketing)
My Take: Information marketing is a very lucrative business model. It is quite perhaps the only industry that lets you mark up your products 7 to 20 times the cost (or more). More importantly, people are always hungry for good information that will teach them something new or help them solve a problem. You can take the knowledge and expertise that you have and turn it into profitable information products. I’ve followed his advice and built my own successful information marketing business.
# 3 Leadership is Not About Outworking Everybody (NO BS Time Management)
My Take: As the business owner you have to work smart. Putting in long hours does not guarantee your success. You have to spend most of your working hours on tasks that produce income. This includes sales, marketing, lead generation and customer acquisition. All other tasks are inferior to these tasks and should be delegated to employees or independent contractors, or done during your non-productive time. Simply put, work smart. If you have to put in long hours, do so. But by all means analyze how you are spending your time and make sure you are getting a good return on investment for your time.
# 4 The Entrepreneur’s Responsibility is This: Maximum Profit and Wealth to His Shareholders (No BS Wealth Attraction)
My Take: Companies do not exist to pay taxes or create jobs. That is what most people think the purpose of a business is. The truth is, the only purpose of a business is to make money for the people who own the business. If you own a business, do not feel entitled to your employees. Pay them well, treat them well, and always pay your taxes, but remember that your top responsibility is to make money for YOU. If that means you have to layoff employees, so be it! Never forget your true purpose. You are not in the welfare business. You are in the making a profit business.
# 5 It is Your Job to Align Your Offering with a Group of People Who Love What You are Selling And Are Willing to Pay for It (NO BS Price Strategy)
My Take: Not everyone is a potential customer. Well, maybe if you are selling toilet paper everyone might be a customer. Your job is to determine your target market: the people who want your product and have the money to buy it at the price you sell it for. Spend your time figuring out who your target market is BEFORE you create a product or service to sell. Learn everything you can about your target market. Once you start marketing the product or service, make sure you focus on marketing exclusively to people in your target market, through direct response marketing. Simply put, find the people who will want what you have to offer.
# 6 Income is Temporary and Perishable. Value and Equity Can Be Built to Last (No BS Wealth Attraction)
My Take: Cash flow goes up and down in any business. There are always business cycles. Your goal is to create equity in your business, so you can cash out one day for a huge profit. Yes, you need sales to pay the bills and keep the business going, but never forget the big goal, to create a business that you can sell for six, seven or even eight figures when you want to get done the business.
# 7 Weight Loss, Skin Care and Beauty, Kitchen Gadgets, and Moneymaking Opportunities Have Been Proven Very Reliable (Make Millions with Your Ideas)
My Take: These are all great industries to get involved in. People are always buying products and services in these niches. The products and services may come and go, but the market stays strong. Make sure that you pick a strong target market BEFORE you start looking (or creating) products and services to sell.
# 8 It is Very Difficult to Make a Profit by Direct Marketing a $19, $29, $39 or even $49 item these days. Personally, I Would Not Undertake a Campaign for Anything Priced Below $99, and I’d Prefer Something Priced Higher (Make Millions with Your Ideas)
My Take: This is something it took me YEARS to figure out. It’s just as easy to sell a $497 product as it is a $27 product. When you have low prices you really don’t have much money for marketing. And that creates huge problems. You need to make sure your products and services have high enough margins so you can afford to advertise. Otherwise, you will spend yourself broke trying to make sales.
# 9 Determine to Build a Salable Asset, Not Just a Business (Make Millions with Your Ideas)
My Take: This tip goes hand in hand with number six. The bottom line is that equity is more important than cash flow. Yes, you need both to survive. But # 1 goal with a business is to build an asset that has equity and income, which puts you in a great position when you want to sell your business one day.
# 10 Sell the Same Information In a Number of Different Formats, At a Variety of Different Prices (Make Millions with Your Ideas)
My Take: People learn in different ways. You need to make sure that you offer your products and services in different formats. For instance, turn your book or manual into audio, video, seminars and coaching. Some people will purchase one format and others will purchase every format you offer. This puts more money in your pocket and helps your business make more money from the same customers.
These are the top 10 business lessons I’ve learned from Dan Kennedy. If I was to list everything I learned from the guy, I could build a whole website about it. If you are looking to take your business to the next level, or if you simply want to improve your marketing skills, I can’t think of a better person to study than Dan Kennedy.
What are your thoughts? What business lessons have you learned from Dan Kennedy? Leave a comment and let us know. I look forward to hearing from you. Have a great day.