WEBVTT 1 00:00:00.000 --> 00:00:06.880 You guys want to hear something absolutely insane. I was able to take home more than a year than the CEOs of McDonald's Ikea 2 00:00:07.440 --> 00:00:10.440 Ford motorola and Yahoo 3 00:00:11.440 --> 00:00:17.000 combined as a kid in his 20s and I have continued to for over half a decade 4 00:00:17.560 --> 00:00:24.980 Which results in a $200 per year portfolio and a $100 net worth by age 32 and no one is more surprised than me 5 00:00:25.500 --> 00:00:29.980 Me expressing that fact will create and be in some anger at others 6 00:00:30.820 --> 00:00:33.940 Skepticism in most confusion in old people and 7 00:00:34.460 --> 00:00:36.300 Inspire a select few 8 00:00:36.300 --> 00:00:38.300 But before I dive in 9 00:00:38.300 --> 00:00:40.540 Raise your hand if you'd like any of the following things to happen 10 00:00:40.940 --> 00:00:47.980 To be able to charge two times five times ten times more than your competition for the exact same thing like Yeti 11 00:00:48.340 --> 00:00:55.020 We have basically identical cops and somehow they're able to charge forty dollars versus ten dollars simply because of what's on the cup 12 00:00:55.020 --> 00:00:59.980 If you'd like to be able to have customers buy from you over and over and over again without 13 00:01:00.420 --> 00:01:06.460 Considering competition like Harley once you're a Harley guy you stay a Harley guy for life 14 00:01:06.460 --> 00:01:13.620 And if you'd like to virtually guarantee sales in any new business or product that you launched like Apple a lot of people 15 00:01:13.620 --> 00:01:17.780 Just wait in line. They say just leave my credit card. Just bill me and send whatever you're gonna come out with 16 00:01:17.780 --> 00:01:23.300 And that's more or less how a lot of Apple buyers are once they become an Apple person they become an Apple person for life 17 00:01:24.060 --> 00:01:25.820 So if you like that stuff 18 00:01:25.820 --> 00:01:33.180 Great because that's what this talk is about and so I couldn't figure out how these brands these companies were able to do this 19 00:01:33.420 --> 00:01:36.900 Demand these prices get people to stay loyal for a really long time and 20 00:01:37.900 --> 00:01:44.260 I felt like for me I always had to like big borrow and steal and I had to squeeze and push so hard just to get people to buy 21 00:01:44.740 --> 00:01:50.340 Whereas these companies made it look effortless and it's because I didn't understand this one thing 22 00:01:50.340 --> 00:01:52.340 And that's the subject of the talk today 23 00:01:52.340 --> 00:02:00.500 Brand and the thing is even people who claim to understand it often don't and the few who do understand it do a terrible 24 00:02:00.500 --> 00:02:06.420 Stop teaching it. So this definitely is gonna be marketing one-on-one class on branding presentation colors and logos 25 00:02:07.060 --> 00:02:12.100 And this definitely isn't going to be about feelings, presence, intuition or whatever 26 00:02:12.740 --> 00:02:14.740 This is about making money 27 00:02:14.900 --> 00:02:20.580 And this concept that I'm going to explain to you is how I built a 7.8 million person audience across all these platforms 28 00:02:21.140 --> 00:02:24.660 In the past 40 months or so. I sold over a million copies of my last two books 29 00:02:25.460 --> 00:02:28.340 And your deals worth hundreds of million dollars in our holding company acquisition.com 30 00:02:29.220 --> 00:02:32.420 That is why you build a brand or at least that's why I built mine 31 00:02:33.060 --> 00:02:35.060 So let's start with the first one what branding is 32 00:02:35.780 --> 00:02:40.420 So when I decided to build a brand I looked at what many popular marketers said about it 33 00:02:41.140 --> 00:02:44.820 Here are some popular definitions that I have removed the marketers from them 34 00:02:45.380 --> 00:02:47.380 This is not throwing shade so I'm just saying them 35 00:02:47.860 --> 00:02:50.980 A brand is a person's gut feeling about a product service or organization 36 00:02:51.140 --> 00:02:53.620 A brand is not what you say it is. It's what they say it is 37 00:02:53.620 --> 00:02:57.940 A brand is a set of expectations memory stories and relations to that take it together the count for our customers 38 00:02:58.500 --> 00:03:00.660 Decision to choose one product or service over another 39 00:03:01.220 --> 00:03:04.500 A brand is emotional shorthand for accumulated and assumed information 40 00:03:04.660 --> 00:03:10.740 A brand is present in the value of what the product service or personality means to its audience is greater than what it does for the audience 41 00:03:11.220 --> 00:03:15.140 A brand is a product service or concept that is publicly distinguished for other product services or concepts 42 00:03:15.300 --> 00:03:17.540 So it can be easily communicated and usually marketed 43 00:03:18.100 --> 00:03:21.940 Branding is the process of creating and disseminating the brand name its qualities and personality 44 00:03:22.500 --> 00:03:26.340 The promotion of a particular product or company by means of advertising distinctive design 45 00:03:27.060 --> 00:03:30.900 If these sound vague and confusing it's because 46 00:03:31.780 --> 00:03:32.900 They are 47 00:03:32.900 --> 00:03:35.060 And I was just as confused as you when I was trying to figure this out 48 00:03:35.620 --> 00:03:37.620 Because none of them told me what to do 49 00:03:38.340 --> 00:03:42.260 And so after looking all these marketers words I think I pieced it together 50 00:03:42.900 --> 00:03:46.980 At least enough that once I started thinking about this way in a different way than about sure with you 51 00:03:47.460 --> 00:03:49.460 My brand grew and it grew fast 52 00:03:50.180 --> 00:03:54.180 And the reason this is so important is that if you don't know what to do nothing's going to change fundamentally 53 00:03:54.180 --> 00:03:56.900 If you don't change your behavior obviously nothing's going to change the result 54 00:03:57.380 --> 00:03:59.300 It's only to find this one term before we get going 55 00:03:59.940 --> 00:04:01.140 learning 56 00:04:01.140 --> 00:04:04.900 So learning means same condition new behavior 57 00:04:05.460 --> 00:04:07.540 And so if I wanted to teach someone a phone script 58 00:04:08.420 --> 00:04:11.460 Then after teaching you the phone rings again 59 00:04:12.260 --> 00:04:15.700 And you say the new script you learned learning occurred 60 00:04:16.420 --> 00:04:17.700 On the other hand 61 00:04:17.700 --> 00:04:20.980 If I tried to teach you the script and then the phone rings again 62 00:04:21.700 --> 00:04:22.900 And then you change nothing 63 00:04:23.700 --> 00:04:25.060 No learning occurred 64 00:04:25.060 --> 00:04:25.940 You learned nothing 65 00:04:26.740 --> 00:04:31.540 And that's why none of this stuff that these guys said helped me because I didn't know what I could do 66 00:04:31.540 --> 00:04:33.940 I didn't know what behavior I had to change as a result of this 67 00:04:34.820 --> 00:04:36.340 So I did not adapt 68 00:04:36.340 --> 00:04:38.020 And so here's how branding happens 69 00:04:38.900 --> 00:04:41.060 Branding is a deliberate pairing of things 70 00:04:41.940 --> 00:04:43.460 Through an outcome 71 00:04:43.460 --> 00:04:44.660 So I'll say that again 72 00:04:44.740 --> 00:04:46.980 Burning is a deliberate pairing of things 73 00:04:47.540 --> 00:04:48.740 Through an outcome 74 00:04:49.300 --> 00:04:51.700 So let's use Coca-Cola drinking it 75 00:04:51.700 --> 00:04:53.380 And liking it as our example 76 00:04:54.100 --> 00:04:56.260 The yum aka the outcome 77 00:04:56.260 --> 00:04:57.060 That's what people get 78 00:04:57.780 --> 00:05:00.900 They pair that with drinking the action 79 00:05:00.900 --> 00:05:01.940 So they do to get it 80 00:05:02.580 --> 00:05:04.260 With Coca-Cola the product 81 00:05:05.220 --> 00:05:07.060 So the next time you want some yum 82 00:05:07.700 --> 00:05:08.900 You're probably going to reach for 83 00:05:09.700 --> 00:05:10.740 A Coca-Cola 84 00:05:10.740 --> 00:05:12.260 If that was paired for you successfully 85 00:05:12.900 --> 00:05:15.540 And so branding is a deliberate pairing of things through an outcome 86 00:05:15.540 --> 00:05:16.020 That's it 87 00:05:16.660 --> 00:05:17.540 But sometimes 88 00:05:18.100 --> 00:05:19.620 Businesses pair stuff 89 00:05:19.620 --> 00:05:21.860 pair their stuff with things that people don't like 90 00:05:22.740 --> 00:05:24.100 That's bad branding 91 00:05:24.820 --> 00:05:26.900 This leads to losses for the business 92 00:05:27.780 --> 00:05:29.540 Now some of you guys may have seen this 93 00:05:29.540 --> 00:05:32.100 This is Dylan Mulvaney doing a collaboration with Bud Light 94 00:05:32.820 --> 00:05:34.500 There's a lot of press around this advertisement 95 00:05:35.060 --> 00:05:37.860 This advertisement was actually a great advertisement 96 00:05:38.340 --> 00:05:39.780 And you might think I'm crazy 97 00:05:39.780 --> 00:05:40.580 But it was 98 00:05:40.580 --> 00:05:41.300 Let me explain 99 00:05:41.940 --> 00:05:43.300 It's just not the way you might think it was 100 00:05:43.940 --> 00:05:45.460 This is a great advertisement because 101 00:05:45.460 --> 00:05:47.300 It let a lot of people know about their stuff 102 00:05:47.860 --> 00:05:50.340 It let a lot of people know about the product about Bud Light 103 00:05:50.980 --> 00:05:51.700 By the way 104 00:05:51.700 --> 00:05:52.660 To your curious 105 00:05:52.660 --> 00:05:54.660 That is the definition of advertising 106 00:05:54.660 --> 00:05:55.620 Not branding 107 00:05:55.620 --> 00:05:57.540 Advertising is letting people know about your stuff 108 00:05:58.100 --> 00:05:59.940 Branding is the pairing that occurs as a result 109 00:06:00.580 --> 00:06:02.180 So it was good advertising 110 00:06:02.180 --> 00:06:03.140 But bad branding 111 00:06:03.860 --> 00:06:05.940 Many customers hated this pairing 112 00:06:05.940 --> 00:06:07.220 Lots of people found out 113 00:06:07.220 --> 00:06:08.420 But a lot of people hated it 114 00:06:08.420 --> 00:06:09.460 Good advertising 115 00:06:09.460 --> 00:06:10.180 Bad branding 116 00:06:10.820 --> 00:06:13.060 And so as a result of this bad branding 117 00:06:13.060 --> 00:06:14.660 People not liking the pairing 118 00:06:14.660 --> 00:06:15.860 Fewer people bought the product 119 00:06:16.660 --> 00:06:18.260 Which netted a loss for the business 120 00:06:19.060 --> 00:06:19.940 And so to fix this 121 00:06:20.660 --> 00:06:22.980 Bud Light paired the product with stuff the audience liked 122 00:06:23.940 --> 00:06:25.140 Like Shane Gillis 123 00:06:25.140 --> 00:06:26.660 Who is a man's man comedian 124 00:06:27.220 --> 00:06:28.740 And the UFC 125 00:06:28.740 --> 00:06:30.260 A man's man of sports 126 00:06:30.260 --> 00:06:30.740 If you will 127 00:06:31.380 --> 00:06:32.660 And sales begin to recover 128 00:06:33.620 --> 00:06:36.740 So that's the one-on-one explanation of branding 129 00:06:37.220 --> 00:06:38.100 Let's go into the one 130 00:06:38.740 --> 00:06:39.940 So do it a little deeper 131 00:06:39.940 --> 00:06:41.300 Because the better you get at this 132 00:06:41.300 --> 00:06:42.180 The more money you will make 133 00:06:42.180 --> 00:06:43.380 Like the more nuanced you can understand 134 00:06:43.380 --> 00:06:45.540 How to brand and build a brand for yourself 135 00:06:45.540 --> 00:06:46.340 The more money you will make 136 00:06:46.340 --> 00:06:47.380 I promise you that 137 00:06:47.700 --> 00:06:49.220 And so to some people 138 00:06:49.220 --> 00:06:50.260 The deal more than 139 00:06:50.260 --> 00:06:52.340 More vanity pairing was actually good 140 00:06:52.340 --> 00:06:52.900 In general 141 00:06:52.900 --> 00:06:54.180 Both good advertising 142 00:06:54.180 --> 00:06:55.060 And good branding 143 00:06:55.540 --> 00:06:56.180 Here we are 144 00:06:56.660 --> 00:06:58.020 For others it was bad 145 00:06:58.020 --> 00:06:58.500 Obviously 146 00:06:59.300 --> 00:07:00.500 All parries 147 00:07:00.500 --> 00:07:02.740 Have positive and negative results 148 00:07:02.740 --> 00:07:03.700 And that's because 149 00:07:03.700 --> 00:07:04.820 Everyone's different 150 00:07:04.820 --> 00:07:06.020 Everyone has different preferences 151 00:07:06.820 --> 00:07:08.260 But for a business 152 00:07:08.260 --> 00:07:10.100 You can objectively see if a pairing was good 153 00:07:10.100 --> 00:07:12.020 Or bad whether it netted you more money 154 00:07:12.900 --> 00:07:13.220 So 155 00:07:14.020 --> 00:07:16.020 More people dislike the deal more than 156 00:07:16.020 --> 00:07:16.820 Much 157 00:07:16.820 --> 00:07:17.700 Tough name 158 00:07:17.700 --> 00:07:18.900 Delimovani pairing 159 00:07:18.900 --> 00:07:20.100 So sales suffered 160 00:07:20.100 --> 00:07:21.620 Making it a bad pairing 161 00:07:21.620 --> 00:07:22.740 So this isn't 162 00:07:22.740 --> 00:07:23.540 Opinion 163 00:07:23.540 --> 00:07:25.220 They objectively made less money 164 00:07:25.220 --> 00:07:26.820 And so this pairing was a bad 165 00:07:27.460 --> 00:07:29.700 For their ideal audience 166 00:07:29.700 --> 00:07:31.700 Now the three-on-one version of this is 167 00:07:31.700 --> 00:07:32.740 Is there a company 168 00:07:32.740 --> 00:07:33.380 Or a product 169 00:07:33.460 --> 00:07:34.420 Where the deal more than 170 00:07:34.420 --> 00:07:34.660 A pairing 171 00:07:34.660 --> 00:07:35.460 could have been 172 00:07:35.460 --> 00:07:40.020 both good advertising and good branding so that the majority of people would have bought. 173 00:07:40.020 --> 00:07:43.220 I think the answer is yes. It just doesn't necessarily mean it's Bud Light 174 00:07:43.220 --> 00:07:47.140 for conservative males as the primary audience. And on the other hand, 175 00:07:47.140 --> 00:07:54.340 some people love the New Gillis and UFC pairings, and some hated it. But more of the audience 176 00:07:54.340 --> 00:07:59.460 that is their ideal customer liked it, saw it as good, and so the business netted sales 177 00:07:59.460 --> 00:08:04.740 a result, and they made more money. Good branding. And so for Budweiser, and I just want to 178 00:08:04.740 --> 00:08:08.420 call this out, this is specifically for Budweiser in their customer base. It's not that 179 00:08:08.420 --> 00:08:13.380 shingular so the UFC is magic in some way, or Dylan Mulvaney is unmagic in some way, 180 00:08:13.380 --> 00:08:18.900 before that specific audience, yes, the pairing mattered and how much of the base liked it or 181 00:08:18.900 --> 00:08:24.820 disliked it. So if you're anything like me, making money is the point. So let's drive this home. 182 00:08:25.460 --> 00:08:31.140 If you made a pairing of your thing and your customer, and you got to choose which outcome you 183 00:08:31.140 --> 00:08:37.140 had happened, so you have your product and they drink it. There's an outcome that happens afterwards, 184 00:08:37.140 --> 00:08:42.900 right? That pairs with it. On one hand, 75% like it and 25 hate it. Or on the other hand, 185 00:08:42.900 --> 00:08:48.020 25% like it, and 75% hate it, which would be the bottom example. Which would you choose? 186 00:08:48.900 --> 00:08:54.580 More money good, the big green one. Yes, of course. The top one. Because it would make you 187 00:08:54.580 --> 00:09:00.660 the most money. It's going to be clear for the 201 level of understanding, branding always 188 00:09:00.660 --> 00:09:08.980 happens. Branding always occurs, but our goal is good branding. And good branding is a deliberate 189 00:09:08.980 --> 00:09:15.060 pairing of our business with good outcomes for our ideal customers. And so what you pair your 190 00:09:15.060 --> 00:09:20.980 business with determines two key things. One, who pays attention to your business, and two, 191 00:09:20.980 --> 00:09:26.100 whether they go towards your business, like the UFC example, or away from your business, 192 00:09:26.100 --> 00:09:30.180 like the Delano Movede example. And so at the beginning of this, I said I was going to cover three 193 00:09:30.180 --> 00:09:34.820 things. The first thing I said is what is branding. But now that we have gone through that, 194 00:09:35.380 --> 00:09:41.700 I want to reset what I walked us through, which is what good branding is. Ideally, what we're 195 00:09:41.700 --> 00:09:45.940 shooting for. So now that we covered that, let's talk about why it makes you money. Like good branding 196 00:09:46.020 --> 00:09:50.740 makes you money. Branding is how to find it happens everywhere all the time. But businesses use it 197 00:09:50.740 --> 00:09:55.300 for profit. So let's look at some of the earliest uses of branding to figure out how we can use it. 198 00:09:55.300 --> 00:09:58.580 The earliest version of branding that we can think of, or at least that I can think of, 199 00:09:59.220 --> 00:10:03.780 happened on livestock. It was literally a brand they would heat up metal. They'd seared 200 00:10:03.780 --> 00:10:07.940 into the side of a cattle and they would get a lovely little logo. Maybe we'll have a Nike 201 00:10:07.940 --> 00:10:13.380 swoosh cow someday. And so they literally burn these symbols into animals. And those symbols had a 202 00:10:13.380 --> 00:10:18.340 magical effect. So let's say you're walking around and you see a cow with no bread. You say, 203 00:10:18.340 --> 00:10:24.340 hello, cow. The cow says move back and it has nothing on it. This is just a cow. You might 204 00:10:24.340 --> 00:10:29.220 leave it alone. And that might be it. On the other hand, let's say the cow has a bread you 205 00:10:29.220 --> 00:10:35.460 recognize. Say it's your neighbors. You might be like, hey, that's Bill's cow. Now, if you like Bill, 206 00:10:36.100 --> 00:10:42.420 you might grab the cow and pull him by the whatever you pull cows by and probably return it to Bill. 207 00:10:43.140 --> 00:10:48.660 If you hate Bill, then the cow may stay lost in the wilderness forever and become lunch for your 208 00:10:48.660 --> 00:10:54.980 family for the next month or two in the form of delicious burgers. Move. But either way, 209 00:10:55.780 --> 00:11:02.260 for better or for worse, the brand affected what you did. It affected your behavior. 210 00:11:02.900 --> 00:11:08.340 And so to take this to the 201 level, what if you see a branded cow, but you don't recognize the 211 00:11:08.340 --> 00:11:13.300 brand? You know, I'd be like, who this? I see a logo, but I don't know anything about it. 212 00:11:13.860 --> 00:11:18.420 Well, then you would treat it how you treat branded animals in general in that you just know that 213 00:11:18.420 --> 00:11:23.220 it belongs to someone. And so you would treat it the way that you treat it as though it belonged 214 00:11:23.220 --> 00:11:28.660 to anybody else. And even if only a tiny bit, you would treat a wild cow different from a 215 00:11:28.660 --> 00:11:33.300 brand of cow in general. So if you had one that was wild and you had one that you didn't recognize, 216 00:11:33.300 --> 00:11:37.060 but was branded, you would still probably treat them differently. So that just shows you the power 217 00:11:37.060 --> 00:11:43.780 of brand as a concept because it dictates a tie during that cow and a human being or some complex animal 218 00:11:43.780 --> 00:11:48.820 that can brand cast. And so these are all effects of brand in general. So that's how it affects what 219 00:11:48.820 --> 00:11:53.540 people do. And so now I want to get tactical on how to get how we translate that concept and 220 00:11:53.540 --> 00:11:57.460 getting them to buy. So let's say we pair our brands. So this is where we get really tactile and 221 00:11:57.460 --> 00:12:02.900 this is like, okay, if you don't have a brand, this is the step by step right now. So you have a 222 00:12:02.900 --> 00:12:06.580 weak brand and we say it's a weak brand because it's starting out. You don't have a lot of association. 223 00:12:06.580 --> 00:12:12.180 Fantastic. So now you want to pair it with people experiences other other stuff that your ideal 224 00:12:12.180 --> 00:12:16.740 customer likes. So in this instance, I'm using little Nike pairing with LeBron and Tiger, 225 00:12:16.740 --> 00:12:22.260 who are champions or class goats, etc. And so people who like sports and competition would see 226 00:12:22.260 --> 00:12:28.340 that probably as a positive pairing. AKA good stuff. And so if we do that pairing, we make that 227 00:12:29.300 --> 00:12:34.500 for the majority of people, branding will occur and so the brand grows. And so the question then 228 00:12:34.500 --> 00:12:41.300 follows, what's the benefit of a strong brand versus a weak brand? And so the weak brand is 229 00:12:41.300 --> 00:12:45.940 before the pairing, the strong brand is after the pair. So a strong brand turns commoditized 230 00:12:45.940 --> 00:12:52.820 products like a $5 white t-shirt plus the strong brand into a premium product, a higher value 231 00:12:52.820 --> 00:12:58.900 brand name product. And premium products with a strong brand, then get customers to want to pair 232 00:12:58.900 --> 00:13:06.020 themselves with the product so that they can associate the outcome themselves with the outcome 233 00:13:06.020 --> 00:13:11.220 of the brand delivers, which they do with their money. So how do they make that association? 234 00:13:11.220 --> 00:13:15.460 They give money, they get the shirt, the association happens based on what they've seen, 235 00:13:15.460 --> 00:13:20.500 where that logo has been elsewhere. And so then they go from I want to be a winner to exchanging 236 00:13:20.500 --> 00:13:25.940 money and saying, now I am a winner or I feel like a winner. That's how this works. And so this 237 00:13:25.940 --> 00:13:30.180 means that if the ideal customer likes for twinning and competition, et cetera, then they're more 238 00:13:30.180 --> 00:13:36.260 likely to buy stuff from a brand paired with those things. So let's lay it all out. Week brand, 239 00:13:37.060 --> 00:13:44.100 paired with stuff customers like creates a strong brand, strong brand gets put onto a winning product, 240 00:13:44.100 --> 00:13:49.940 transforms a generic to winning product, then the customers want to associate with that winning 241 00:13:49.940 --> 00:13:54.820 product. So they buy the products and they put money into your bank account in order to do it. 242 00:13:54.820 --> 00:14:00.500 And so as long as you net a positive between what it costs you to associate with Tiger and LeBron 243 00:14:01.140 --> 00:14:06.980 and how many t-shirts you can sell a result, you make money. And so here are some steps in words 244 00:14:06.980 --> 00:14:12.420 for those who are more word people. You start with a brand that means nothing. You have a logo 245 00:14:12.420 --> 00:14:15.780 just like the cow that the other person didn't recognize. People know that it is a brand, 246 00:14:15.780 --> 00:14:20.420 they just don't know what that brand means yet. So it means nothing right now. Then you pair 247 00:14:20.420 --> 00:14:25.620 that brand with something or someone that your customers ideally like. Third, your brand starts to 248 00:14:25.620 --> 00:14:31.620 mean the thing customer likes to them. Then they want to associate themselves with that thing they 249 00:14:31.620 --> 00:14:37.220 like or get more of it. But they can't buy that thing. But they can buy a tiny sliver of that 250 00:14:37.220 --> 00:14:43.060 association. So they buy the shirt with the logo that means that thing to them. And so they get 251 00:14:43.060 --> 00:14:46.820 the shirt, you get the money, and it all happened because you deliberately paired it with something 252 00:14:46.820 --> 00:14:52.580 they like. And this happens everywhere. So Dolce and Gabbana, classic example, they paired with 253 00:14:52.580 --> 00:14:59.060 Kim Kardashian. They made a line specifically for her. And so for a lady who wants to associate with 254 00:14:59.060 --> 00:15:06.500 fame, beauty, wealth, that would be a pairing that makes sense. And so that lady who wants other 255 00:15:06.500 --> 00:15:12.660 people to associate her with fame, high class, money, luxury, wealth will then buy Dolce and Gabbana 256 00:15:12.660 --> 00:15:16.660 and be like, I'm just like him. Now she might not say that directly because she might just associate 257 00:15:16.660 --> 00:15:22.580 with the values, but the transfer and still happens. And so when someone looks at two products that 258 00:15:22.580 --> 00:15:28.100 on the surface are generically the same. You've got two t-shirts. One that has a weak brand or no 259 00:15:28.100 --> 00:15:34.180 brand. And the other that has the strong brand, the person that has the strong brand, they're going to 260 00:15:34.180 --> 00:15:40.500 be more likely to buy and pay more for. And this happens because they actually buy the elements 261 00:15:40.500 --> 00:15:44.820 that we've deliberately paired with the brand which they identify with. And at this point 262 00:15:44.820 --> 00:15:50.100 of building a brand, you do this to change customer behavior. And that is a point of building a brand 263 00:15:50.100 --> 00:15:56.180 to change customer behavior in your favor when they see it with a product. And so this is a 264 00:15:56.180 --> 00:16:00.900 core from Warbuff that I like a lot kind of signifying some of the elements of the benefits of brand. 265 00:16:00.900 --> 00:16:05.380 So the single most important decision in evaluating business is pricing power. If you've got the 266 00:16:05.380 --> 00:16:09.060 power to raise prices without losing business to a competitor, you've got a very good business. 267 00:16:09.700 --> 00:16:13.860 And if you have to have a prayer session before raising the price by 10% then you've got a 268 00:16:13.860 --> 00:16:18.820 terrible business. And so if we have an unbridited t-shirt for $5 and we say you know what, 269 00:16:18.820 --> 00:16:22.820 we think we have a strong enough brand that we can raise the price. And then boom, we can raise 270 00:16:22.820 --> 00:16:29.620 the price and still not lose that many sales, but we, in this case, 12x the price, good branding 271 00:16:29.620 --> 00:16:36.580 drives that premium pricing. Good branding also improves advertising. So with the generic brand, 272 00:16:36.580 --> 00:16:40.100 if you're marketing this white t-shirt, you might get half a percent of people. There are many white 273 00:16:40.100 --> 00:16:45.220 t-shirts. There are many like it. This one is mine. Just get it. So the point for those of you 274 00:16:45.220 --> 00:16:49.940 got the reference. So if you have a 0.5% click through rate on something that's generic, 275 00:16:49.940 --> 00:16:55.060 there's nothing special about it. On the flip side, if you have a Nike brand t-shirt, 276 00:16:55.060 --> 00:16:59.220 same identical t-shirt and it has the swoosh, then you might get six times as many people click. 277 00:16:59.860 --> 00:17:05.380 And buy at a higher price. See how these things stack together. That is why these brands exist for 278 00:17:05.380 --> 00:17:11.140 such a long period of time and make so much money. So they get cheaper customers, they get higher 279 00:17:11.140 --> 00:17:16.340 returns and they have better response rates and advertising. And on top of that, if as if there 280 00:17:16.340 --> 00:17:22.980 weren't enough, good branding also drives customer loyalty. AKA they buy more stuff more times. 281 00:17:22.980 --> 00:17:27.700 And so like the Apple example I gave earlier, once you buy one Apple product, you tend to buy more 282 00:17:27.700 --> 00:17:33.060 and you tend to keep buying them. And so this also a good brand also protects your business from 283 00:17:33.060 --> 00:17:37.460 competitors stealing that customer in the future. And so as I promised them beginning, 284 00:17:37.460 --> 00:17:42.420 who's seeing how this all this stuff allows you to one, be able to charge 10 times more 285 00:17:42.420 --> 00:17:46.980 than your competition, two, get higher returns and advertising so you can scale that much more, 286 00:17:46.980 --> 00:17:51.140 that much faster. And then three, get people to keep buying for life, compounding your money, 287 00:17:51.140 --> 00:17:57.380 making skills for good. Okay, which is why building a brand will make you lots of money. 288 00:17:58.020 --> 00:18:03.620 It's also why brands outperform commodities in every single industry and give a lasting 289 00:18:03.620 --> 00:18:09.700 competitive edge that to be fair is theirs to lose. So here's another quote from Uncle Warren. 290 00:18:09.700 --> 00:18:13.620 It says 20 years to build a reputation in five minutes to ruin it. If you think about that, 291 00:18:13.620 --> 00:18:14.660 you'll do things differently.