My friend, and consummate networker, Joe Polish, is about to show you the one thing you need to do in order to avoid being one of the 80% of new businesses that fail each year.
But more importantly, you’ll also discover the one simple piece of advice you need to follow in the top 5% of your marketplace.
Craig Ballantyne
“Life is really simple, but we insist on making it complicated.” – Confucius
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A New American Dream
Now a pioneer in “Outrageous Advertising That’s Outrageously Successful”, Bill is considered one of the most celebrated small business Marketing Gurus in the world, teaming up with the legendary Dan Kennedy to provide advice to over 130,000 small business entrepreneurs worldwide, in every possible industry and profession. But for over two decades, Bill eked out a respectable living as a retailer of fine menswear in Baltimore, Maryland.
In fact, it wasn’t until Bill attended a Dan Kennedy Seminar in 1995, and invested in all of Kennedy’s books and resources, that his life changed dramatically. With this new game-changing information, Bill began writing his own ads, sales letters, post cards, websites, emails, and as you can imagine, it wasn’t long before extraordinary success ensued.
Not only was Bill generously rewarded for his obsession with putting into practice what he had learned, but in 2002 he was also honored with the RAC Award, an equivalent in advertising and marketing. The award is the advertising industry’s equivalent to the Oscar’s. Today Bill is a consultant to some of the top names in the information marketing industry.
Discover how to achieve your American Dream and Financial Independence here
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Why 80% Of Businesses Fail… And How You Can Be Sure You Beat The Odds
By Joe Polish
You’ve probably seen that bleak statistic before…. “50% of businesses fail within the first 5 years and 80% within the first 10 years.” A Google search will bring up reports hovering anywhere from 60%-90% fail rate in the first 5-10 years. Whatever the case…there are a lot of businesses that fail. Period. So let’s just make sure you aren’t one of them.
Some people want to blame the poor economy, increased competition, and/or inflation for their failures. But there are plenty of people who have proven that success is possible in spite of these challenges. As I see it, there are three main reasons so many businesses meet with failure…
1. Lack of a good product or service.
2. Lack of good marketing.
3. Lack of buyers.
Your job is to simply not be “lacking” in those three areas and you can beat the odds and be successful… But in reality that’s easier said than done or we wouldn’t be looking at an 80% failure rate would we?
Offer A Good…No A Great…Product Or Service.
Pioneering business leader, Peter Drucker gave the simplest definition, and what he called the primary purpose of business… “To create (and keep) customers.”
One of the major roles of being a successful business owner is to actually learn how to fulfill the needs and wants of your marketplace. Offer a product or service…whether it’s something you conceive or represent…and deliver it so that your customers are so happy with the experience that they buy again and again.
Your job as a business owner is to exceed the expectations that clients have because every customer has expectations. And when you exceed those expectations they will do business with you over and over and over again. That’s how you “keep” those customers.
Marketing…The Producer Of Your Success (Or Failure)
Peter Drucker nailed it again with this quote, “Marketing and innovation produce results, all other business functions are cost.”
But I’m not just talking about throwing money at expensive advertising in hopes that you see a return on your investment or building an “image” or a “brand”. No. I’m talking about effective direct response style marketing. This is the kind of marketing that provides results you can track. If more businesses learned and practiced effective, proven marketing techniques the 80% fail rate would dramatically flip to success.
You rarely see someone go out of business because their prices were too high or because they had too many customers. It’s usually because they don’t have enough customers and they’re pricing themselves too low. Low prices squeeze margins and can render a business incapable of delivering a service or a product that meets or exceeds expectations. A lack of customers and competing by low price are the results of ineffective, uneducated marketing.
Buyers…Finding (And Keeping) Your Place In The Market.
What happens if your marketplace gets too competitive or “dries up?” When people get into the “trap” of major competition or find people no longer buying what it is they’re selling, they need to change their approach and what they offer to fit what the marketplace actually wants. That means keeping your finger on the pulse of your market so that your business and marketing can evolve and you can innovate.
Remember These Four “M’s”…
As a successful, high priced marketer for almost 20 years now, I’ve learned that there’s four things you need in business to be successful. I call them “The Four M’s”…Marketing…Margins…Management…and Model.
Model…Take A Look At The “Blueprint” Of Your Business…
What is your plan for generating revenues? This plan is your “model” or the “skeleton of your success”. Your model is the foundation that holds all of the other working parts. A solid model can lead to the success of your business likewise a weak model may lead to its demise.
Margins…. “I Can’t Believe It’s Not Better”
Don’t forget that you are in a numbers game. Most business owners make that mistake. Do you know your numbers? How much do you actually make on what it is you sell? If you don’t know your margins, you might not be around (in business) long enough to find out.
Marketing…Yes Again…From Packaging To Profits
How do you effectively position, offer and uniquely package your products or services? I already touched on marketing but it’s really so important to the success of a business that it deserves extra attention. Your marketing ultimately determines your paycheck. Get your marketing “dialed in” and you’re already two steps ahead of your competition.
Management…I’m not Talking About People
The word “management” often conjures up ideas of managing a staff, but it doesn’t necessarily mean managing people. Management is simply your ability to keep track of stuff. It can mean your ability to manage your staff, your products, your services, your marketing, your margins, and your profits. When you own a business you are managing everything that relates to making you money every day.
Your Weakest Link…
These four M’s feed into each other and some of them are more critical to the formula of success than others. For example, I have never considered myself a great manager but learned such effective marketing that I was able to make high enough margins and develop a business model where based on those alone, I could do really well.
Prioritize your skills. After all, you could be the best manager in the world but if you have a weak model, poor margins, and your marketing isn’t good, you are still not going to make enough money to survive in business.
Never forget what it is you’re really doing when you have your own business…
Solving Problems For A Profit.
That’s it. There is a lot of “problems” in the world. If you can solve them, you can make a lot of profits. If you don’t know what “problems” you can solve, then find out what people are interested in buying and learn how to deliver them a solution in a confident, profitable manner.
If you do “solve people’s problems” just a little bit better than all of the other competitors out there, not only will you beat the 80% failure rate, but you will most likely be one of the top 5% of your marketplace.
Simply because you are reading this article right now, you are probably already in that category….or very close. After all, I think the reason up to 80% of businesses fail (and this is my opinion) is because most people don’t take the time to learn how to make their business succeed. (So congratulations on being one of those people that do.)
Remember as long as you aren’t “lacking” in the three crucial areas of business, (product/service, marketing and marketplace) and as long as you have a good model, healthy margins, effective marketing, and capable management, you can go out there and “beat the odds”. You can succeed.
[Ed. Note: Joe Polish has been a long-time business success thanks to his study of direct marketing. He's also been a consultant to some of the biggest names in the nutrition supplement and information industries. If you want to learn how to become a master at effective marketing then listen to Joe Polish's free "I Love Marketing" Podcast at www.ilovemarketing.com]
This article appears courtesy of Early To Rise, a free newsletter dedicated to creating wealth and success through inspiration and practical, proven advice. For a complimentary subscription, visit http://www.earlytorise.com.



My Rules
Since sharing my rules with ETR readers last July, I’ve been able to “live real in the real world”, as Robert Ringer describes today.
Once you have your rules, you’ll have low-stress way of living how you want to live without dropping out of the mainstream. Robert Ringer explains why that is so important in the article below.
Craig Ballantyne
Not a fun one today…but an important one: “Ask yourself “Why?” you want to achieve something but you refuse to act in congruence with achieving it.” – Dan Kennedy
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A New American Dream
Described as the “Indiana Jones for the digital age”, author, entrepreneur, and public speaker, Tim Ferriss, has been featured in more than 100 media outlets, including The New York Times, The Economist, TIME, Fortune, CNN, and CBS, as well as being a popular guest lecturer at Princeton University since 2003, where he presents entrepreneurship as a tool for living the American Dream and world change.
Tim is widely recognized for his application of both Pareto’s Principle (80/20 rule) and Parkinson’s Law (work expands so as to fill the time available for its completion), and in 2003 he released his first New York Times and USA Today bestseller, The Four Hour Workweek, in which he promotes “mini retirements” as an alternative to the “deferred life” career path one typically follows when working a 9-5 job into retirement.
Also a prominent angel investor, Tim was recently listed at #13 in the “100 Most Influential VCs, Angels & Investors”, funding social media giants, Facebook, Twitter, and StumbleUpon just to name a few. Nominated as one of Fast Company’s “Most Innovative Business People of 2007″ and Forbes Magazine’s “Names You Need to Know in 2011″, Tim Ferriss is pioneering the new American Dream.
Discover how to achieve your American Dream and Financial Independence here
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Here’s to You, Mrs. Robinson
By Robert Ringer
Regardless of your age, you’ve probably seen what is arguably the best and most successful cult film of all time, The Graduate. Today, with oversexed, deranged female teachers playing out the role of Mrs. Robinson with increasing frequency, it can’t help but bring back memories of the film that launched Dustin Hoffman’s career back in 1967.
The Graduate was the surprise hit of the year, with Mike Nichols winning an Oscar for best director. In addition, the movie was nominated for best picture, and Dustin Hoffman, Katharine Ross, and Anne Bancroft all earned Oscar nominations as well. And who can forget Simon and Garfunkel’s time-defying musical score, particularly the memorable song that defined the movie. Is there anyone in the civilized world who hasn’t heard the words:
And here’s to you, Mrs. Robinson,
Jesus loves you more than you will know,
Wo wo wo.
God bless you, please, Mrs. Robinson,
Heaven holds a place for those who pray,
Hey hey hey, hey hey hey.
As I recall, Hoffman received $5,000 for his starring role in The Graduate – the last time he would have to perform for chump change. Of course, some might argue that getting paid $5,000 to be romantically involved with Katharine Ross and sexually involved with her movie mother, the late Anne Bancroft, was the Hollywood deal of the century. The modern-day Mrs. Robinsons turned out by America’s teachers’ unions would have a tough time topping The Graduate when it comes to appealing to the fantasies of teenage boys.
Preceding the movie was the original novel, written by Charles Webb, first published in 1963. At the time, Webb was a young, privileged suburbanite who based his famous novel on what he saw as the valueless, hypocritical life of his parents and their country club friends.
In the movie, Hoffman’s character, Ben Braddock, is a young man just out of college who has no ambition or sense of adult responsibility. Clearly, Webb was depicting himself in the main character, but his own life has played out even more movie-like than Ben’s.
One would assume that the author of such a great American novel would normally move on to ever more fame and fortune. But not so with Charles Webb, who is now more than forty years removed from the year in which his famous novel was first published. Though Webb did write a few more forgettable novels, he dropped out of the limelight by choice, rejecting mainstream society. The Graduate has made buckets of money for publishers and producers, but not for Webb. Why? Because – hold onto your hat – he and his wife signed away the book’s copyright to charity.
Further, they renounced a materialistic life and consumerism and refused to accept their wealthy families’ money, choosing instead to move to England and live the life of classic Bohemians. Early in their relationship, they lived like vagabonds, doing everything from picking fruit to running nudist camps. Most bizarre of all, Webb’s wife of 45 years, Eve, shaved her head and changed her name to Fred (with no legal last name) in a show of support “for men named Fred who have low self-esteem.” On reading this, my first thought was to call the ACLU and file a discrimination suit against Fred for failing to show support for men named Robert.
The last I heard, Charles Webb and Fred were residing in a seaside resort in Brighton, England. At the time (2001), they were living in a one-bedroom apartment with no TV and just a few pieces of furniture.
Webb likes to point out that when The Graduate was first published and became a modest success, his family (for obvious reasons) hated it. But when the movie became such a huge success that it catapulted the book into an equally huge bestseller, his family decided they loved it. As he puts it, “Success is what they (his family) related to.”
One of the reasons I find Charles Webb and Fred so fascinating is because, unlike most dropouts, they aren’t crusaders trying to save the world, and they at least claim they don’t begrudge the materialistic worship mentality of most of the other six billion people on our planet. In fact, The Wall Street Journal quoted Webb as saying, “There’s nothing wrong with wealth – it just didn’t work for us.”
Whenever I read unusual life stories, I try to draw meaningful lessons from them. But I had a hard time with this one. When I first read it years ago, it absolutely fascinated me. But I was cautious about drawing conclusions from the weird tale of Charles and Fred.
Because they don’t go around preaching revolution, harassing fishermen in an effort to save whales, or burning down houses to preserve the habitat of wild beasts, I have to respect their implied philosophy: Don’t tell us how to live, and we won’t tell you how to live. Hey, in America and the U.K., that’s a perfectly legitimate position to take.
But I also believe that what you don’t know can hurt you. It’s easy to say that Charles and Fred are doing what makes them happy, but I have to admit that when I first read about their strange travails, it saddened me. One part of me liked them because they were acting on their convictions, weren’t entrapped by the material world, and, above all, weren’t crusading to persuade others to give up their materialistic lifestyle.
I agree with them that Burbs Disease … rampant consumerism … keeping up with the corporate executive next door … whatever you want to call it, is an equally sad way to live. I believe Buddha was right when he said, “All unhappiness is caused by attachment.” And attachment to material things is the worst possible kind of attachment.
But completely dropping out of life – having no discernable purpose – seems like a gigantic waste of human resources. To live in the real world doesn’t mean you have to stay in step with everyone else. It doesn’t mean you have to be hypocritical. And it doesn’t mean you have to worship money or material things. You can be real, act real, and live real in the real world.
I hadn’t thought about Charles Webb and Fred for several years, but when a friend sent me an e-mail with the following words, these two rebels without a cause came to mind: “Life is not a journey to the grave with the intention of arriving safely in a pretty and well preserved body, but rather to skid in broadside, thoroughly used up, totally worn out, and loudly proclaiming … ‘Wow ! What a ride!’”
Life is meant to be lived, and I don’t believe it is possible to achieve one’s true potential by renouncing “mainstream” life in its entirety. Mainstream life is the ballpark. The players within that ballpark can be intense, goal-driven, and action-oriented or they can be dull, negative, and sedentary. But whatever kind of player you choose to be, you have to be inside the ballpark to play the game. If you want to be the ultimate risk-taker and break all the rules, fine. Just don’t leave the park. Those who have done so tend to become increasingly out of touch with reality.
[Ed. Note: If you're ready for a treasure chest of proven ideas, strategies, and techniques that are guaranteed to dramatically improve your dealmaking skills - and, in the process, increase your income many times over - you won't want to miss Robert Ringer's bestselling audio series, A Dealmaker's Dream.
Robert Ringer is a New York Times #1 bestselling author and host of the highly acclaimed Liberty Education Interview Series, which features interviews with top political, economic, and social leaders. His recently released work, Restoring the American Dream: The Defining Voice in the Movement for Liberty, is a clarion call to liberty-loving citizens to take back the country. Ringer has appeared on numerous national talk shows and has been the subject of feature articles in such major publications as Time, People, The Wall Street Journal, Fortune, Barron's, and The New York Times. To sign up for his e-letter, A Voice of Sanity in an Insane World, visit www.robertringer.com.]
This article appears courtesy of Early To Rise, a free newsletter dedicated to creating wealth and success through inspiration and practical, proven advice. For a complimentary subscription, visit http://www.earlytorise.com.