You might not be in manufacturing, but no matter what you do, you’re still in the business of changing something or someone.
And whether you process plastic pellets or sell exotic travel packages, the following is always true:
If you set no standards for your raw material, you can make no promises about your finished product.
A girl that sleeps with anything in jeans gets no respect. A college that accepts just anyone can never become a Harvard or MIT. And a company that has no intake requirements can make no results guarantees.
This is why all my best programs have admission requirements:
- You can’t get into Bobsled Run unless you’re spending a bare minimum of $500/month on AdWords.
- You can’t go to Maui unless you’re spending $5K a month on advertising, preferably online.
- You can’t join Roundtable unless your sales are at least in the low to mid six figures.
- You can’t come to a 4-Man Intensive if you’re a rank beginner.
Why?
Initially it was simply because I prefer working with estudiantes who know what they’re doing. Roundtable is a total blast because everyone has hard-core, in-the-trenches business experience and the smell of battle on ’em.
We’ve found that if when we make stipulations about the raw material, our students get much more consistent results and bigger success stories. We weed out the whiners in advance. Everyone’s happier.
I mentioned this to one guru and I watched the gears grinding in his head when I told him that we turn away 25-30% of our applicants. He couldn’t imagine that we’d just walk away from that money. But you can’t attract money or people, if you’re not willing to repel money and people.
The other day John Mendocha pointed out that I’m very nearly the only Internet guru who does this. I said, “Dang, you’re right. Never realized that before.”
I just wouldn’t have it any other way. Look, if you come to an event or join a coaching group, do you want to figure out 2 hours after you arrived that you’re the smartest guy in the room? I don’t think so.
Even our Mastermind Online Forum – whose only entrance requirement is the $99/month – is filled with such high quality people, I dare say it’s the best forum in the world of its kind. MM club members post questions and get extremely qualified answers, often only minutes later.
I LOVE my culture of high performers. I love the fact that an achievement in Planet Perry really does mean something. I love being surrounded by sharp people who love to contribute and who deserve to be heard.
I love the iron-sharpens-iron nature of people who truly want to improve their game.
YOUR customers will love that too.
Raise your standards. Be willing to turn away those you really can’t help, those who really don’t qualify.
Figure out who you know you can help and select THEM.
Those customers will be more expensive to acquire but I promise you, in the long run, you’ll have a much happier and prosperous following.
Perry Marshall
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About the Author
Perry Marshall has launched two revolutions in sales and marketing. In Pay-Per-Click advertising, he pioneered best practices and wrote the world's best selling book on Google advertising. And he's driven the 80/20 Principle deeper than any other author, creating a new movement in business.
He is referenced across the Internet and by Harvard Business Review, The New York Times, INC and Forbes Magazine.
13 Comments on “Standards. It's time to raise 'em. Here's why.”
Perry – I couldn’t agree more with this post. No matter what you do for a living or what your passions are in life it is so important to not waste the precious time you have on this earth with people or companies who don’t see the value in what you have to offer as an individual or in business. Plus, its a whole lot more fun to work with people who appreciate what you have to offer and are also willing to recognize your value (whether financially, socially or otherwise). Life is too short to work with negative people and non-believers; focus all your attention on those who share your passions in life and business.
BTW, this ties in perfectly with your post on the 80/20 rule.
Great post. This is something I never did in my web design business but after being burnt a few times by clients not paying I’ve started doing a much better job at qualifying customers.
One of the things I do is give priority treatment and reduced rates to clients who are only a ‘monthly support plan’ I know if people are turned off by the idea of paying each month they are probably just after the cheapest service and aren’t really looking for an ongoing relationship. Those who are should be rewarded and those who aren’t can pay 30% more if they are that keen.
I helped and supported a friend for many years in his
business. He’s a nice enough person and has a lot of good qualities – but he shouldn’t be in business.
In the end, I had to “fire” him because I was getting held back and my credibility was at stake.
I would assume that taking this approach also helps reduce customer service issues since you’re effectively pre-qualifying customers and ensuring they’re purchasing something they can get benefit from, and perhaps creates a stronger bond with your customers because of that which helps facilitate repeat business.
I believe franchises have a somewhat similar model in that the potential customer must fill in a questionnaire beforehand to ensure that he qualifies.
I’ve also seen this used selling information products – a questionnaire checking whether the candidate is suitable. I don’t think they turned anyone away in that example but it may well increase response, since doesn’t everyone want to prove they’ve got what it takes to be part of an exclusive club.
I read your book for my job. I learnt a lot however, we would never qualify for your courses due to the sheer small size of our market. Headsets in NZ. Google definitely favours products which have higher margins.
I would be really interested in the a forum topic or article based on google adwords and market size. We sell telephone headsets in New Zealand. Geographic location restrictions and population size and limits to our level of growth – it would be nice to have a formula to determine optimal APC using such parameters as industry/marketsize $, average product value, visitor value and googles local search info.
You can always join AdWords boot camp; you can always take the “waiver” option with Bobsled; Mastermind Club http://www.perrymarshall.com/mastermind is a great place and has no minimums. We don’t neglect small advertisers.
Perry your articles and work are truly legendary. This is so true today. Thank you for sharing. In the next couple years I will end up coming to one of your workshops. Thank you for the countless powerful emails. Take care my friend.
An aspect of this that works extremely well for us is that has created a “success I like.” Allowing every part of your business to bow down to optimized response can lead you quickly to a place that has integrity issues – all different types of integrity issues.
It could certainly lead you to sell something to somebody you know you can’t help – as you mentioned Perry. It can also lead you to helping people in the short term, in a way that doesn’t really give them what they want in the long term.
Or for us, it started leading to a business that just didn’t have the artistic integrity that we wanted to maintain. We’re a lot smaller than we could be, but day to day, we embrace, explore, and champion boutique quality and uniqueness. That’s what we want to be.
There would be zero ethical issues if we went with a more mass produced product & service, but it just wouldn’t be as fulfilling for us.
There’s a price of entry to that however and it is that you have to have truly great products.
You’ll never get people to stop shopping at Wal-Mart and support local businesses. Why? Because in the vast majority of cases, the product you buy at Wal-Mart is the same or better for less.
A local bank runs with the saying “We never forget who keeps us in business.” How? They have the same products, fees, rates, and marginal customer service as Chase, BofA, and Wells Fargo. The only tangible difference to me is that they have 8 locations instead of 8,000.
It’s not enough just to be local, or to be the last of the little guys. There has to be real teeth to what that translates to for the customer.
However, if you have a true system for producing quality, unique products/services and a true economic advantage in the way you sell it – there’s a very fun, fulfilling, and profitable road ahead.
Completely on the flip side – I love playing guitar and have romanticized for years about creating & selling high end unique instruments. I’ve fantasized that all these marketing skills I’ve honed over the years were cosmically leading me up to fulfilling that dream.
This weekend, I found out from one of the “premier” manufacturers in that niche that he does $750K in gross sales per year with expensive machinery, a pricey lease on the warehouse, and an 8 person staff. That’s just bad math to me.
I’d have to love guitar craftsmanship about 10X more than I do to justify the risk/reward in that profit equation. For me, it’s much better to work in a business that allows me to enjoy that passion by buying guitars rather than make them.
As Dan Kennedy says, there’s no joy in a “building a success you don’t like.” There’s massive joy in many aspects of life if you systematically build one you love.
As always Perry – Thanks for being an integral part in my journey to know how that really happens and have the guts to do it.
-Nick Neilson
Very sage advice. I’ve seen this in all sorts of businesses. Folks at the top do not want to associate with those two or more rounds down the ladder. And the further down the ladder, the more difficult they are to help and generally the less able they are to afford your products/services.
People who are not terribly successful are not successful for a reason. You don’t need them dragging you and/or your clients down to their level.
Heed Perry’s advice – it will change your business.
Hello Perry,
Long time sojourner on Planet Perry -bought what I could over the years; worked on what I could over the years; yet, not really serious until recently.
I’ve gone back and forth on whether to comment -then thought, “What the heck!?!”
I was thinking recently, “Once I get a little business going, then I could do something more with Perry.” But after reading your posting on raising standards, honestly, I’m bummed…don’t get me wrong, I understand it -even agree with it. Just bummed with the thought of trying to figure more out as a newbie on the planet without a map, longing to be more of a citizen.
I know my character is one that can pull myself up by my bootstraps and figure things out…it may take a bit longer, but I’ll get there. I’m sure things would go a bit faster with mentor/guide who already knows the terrain.
Main questions:
“Where do I get a good map?”
“Who do you trust as a mentor/guide at my level?”
I’m after Pro. 16:16.
Sincerely,
A.T.
Mastermind Club http://www.perrymarshall.com/mastermind is a great place to start and has no minimums.
Honestly if you hunker down and read the Definitive Guide 3-5 times and implement absolutely everything in it, it’ll be almost impossible NOT to qualify for whatever else comes next.
Same with Renaissance and/or Mastermind Club. The people in the MM forum are gold.
You can always buy a $199 consult with Bryan Todd and in 30 minutes you’ll have a road map for the next 6 months.
Thank you, Perry. I’ll start there.
Blessings,
AT
Hi, Perry,
Your Posts are very nice and instructive. Thanks. Eva