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But the longer you delay the ask, the bigger the ask can be.

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Welcome to the game where we talk about how to get more customers, how to make more

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customers, how to keep them longer, and the many failures and lessons we have learned along

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the way. I hope you enjoy and subscribe. In this video I want to break down the difference between

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branding and direct response marketing and why not deeply understanding the differences,

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costing you millions and millions of dollars in ultimately the amount of money that you

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probably want to make. And if you don't know who I am, my name is Alex Mosey, I own acquisition.com.

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It's a portfolio of companies that is about 85 million dollars a year in revenue and I have nothing

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to sell you. All right, I make these videos because I was once broke and I've learned a lot of

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lessons along the way and I don't want the pain that I experienced to be in vain. All right, that's why

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I make these. So that being said, branding versus direct response. I think this is one of the more

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interesting topics that I have dove into over the last year or so and it's come from a variety of

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different conversations I've had with top marketers. In this morning, I had a conversation with Dean

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Grassy O.C. who is a phenomenal world class marketer and we talked for like an hour this morning,

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just about this concept of the difference between branding and direct response. And I thought I

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would share some of the lessons or discussion points that we had with you so that you can hopefully

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benefit. And so the first point is that you may have heard this in in my book, kind of really

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all our offers, but the longer you delay the ask, the bigger the ask can be. So for example,

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if you're, if you can use this in any situation, whether you're, you know, courting a lady or a guy

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or whatever, you know, in the first five seconds, you're like, hey, let's go on together. It's like,

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well, you might have some audience that be willing to do that, but the vast majority of people would

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not be willing to do that. But if you date for, you know, six months, then that might be something

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that would be almost everybody would be willing to do that after six months, depending on whatever

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relief beliefs. That's not my point here, but you can get the idea that a higher and higher percentage

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people would be willing to take you up on the offer if they had spent more and more time with you.

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And so the longer the delay, the bigger the ask and the visual that I like to describe to this is

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the longer the runway, the bigger the plan that can take off. And so the bigger the payload you can

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get based on the amount you delay to the same degree. If you've seen Gary Vee, he's, he's,

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he's an influencer and he owns a marketing agency out of New York. And he spent, I want to say,

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10 years or 12 years, building his personal brand. And then he finally had his ask, which was,

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hey, by my NFT. And then within this band of, you know, six months ended up making like a hundred

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million dollars from that NFT launch, right? Now, I would make the argument that the NFT launch

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itself was actually a director towards marketing play, whereas everything prior to that was really

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about brick building the brand, right? And so different examples of this that I think would be

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important to drive the point home and why I think that the many, many, many marketers start in

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direct response and that end up in branding is because of what I'm about to share with you. So

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please listen closely to this if you are trying to make more money. If you look at most big consumer

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brands, you look at, you know, Colgate or Crest or, you know, shampoo brands, right? That have been

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here for a very long time. They're not offering two for one deals. They're not like, hey, go buy this

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toothpaste for 50% off, right? That's not actually what they're doing. They're just talking about the

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products. And if you look at some of these bigger celebrities that exist, you look at Dwayne Johnson,

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the rock, built his huge brand and then said, hey, I'm, I'm offering, I'm, I'm starting to

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you guys should check it out. Colin McGregor, Colin McGregor built up, you know, his personal brand

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that said, hey, check out proper 12 Kylie Jenner was like, hey, built up a brand and then she did

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her lip kits. And so what's interesting is that brand people are now realizing is an amazing

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arbitrage opportunity for maximizing value. And I think part of the reason behind this is that

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goodwill compounds faster than revenue does. And so hear me out, think through this with me.

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If you've seen somebody who's consistently been selling in this maybe you, what happens is you

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provide value in some way and then you extract the value that you've, the equity in the relationship

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through monetizing it through an ask or some sort of right hook as they say, just getting them to

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try and buy something, right? And the thing is is that whenever you make an ask, you decrease your

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goodwill, right? And so you kind of have to start over at zero again and then you build up goodwill

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and then you ask and then it goes back to zero again, right? And so you're constantly depositing

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and extracting capital in the relationship and the hope is that it costs you less to deposit than

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you make on the extraction, right? Like that's fundamentally what like traditional direct response

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marketing is at at its most basic form, right? And the reason it is direct response is that we are

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actively requesting a direct reply or immediate action as a result of seeing our advertisement,

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right? Of any kind. To contrast that with branding, what we're doing with branding is that we

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are reinforcing the values and the stories that people tell about our products and services,

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all right? So we're reinforcing stories versus asking for actions. And you might be like, well,

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branding doesn't make sense. And I want to tell you this because when I started out my career,

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I thought that every single company that did branding was retarded. I was like, you guys are idiots.

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If you guys understood how direct response worked, you guys would make more money. I'm such a genius,

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blah, blah, blah. And I was wrong as I often am. And the more I study these massive companies,

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I was like, okay, so all of these companies all do this type of marketing, whereas little old me is

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doing this quick jab, right hook, whatever. Mark of just give-ass, give-ass, give-ass, give-ass,

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and always just deposit it in a value in order to extract the value later. And the thing is,

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is people get it. People have seen it. They know the game. And yes, it does work to a limited

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degree, right? But it's very, very rare to find a massive, massive direct response company.

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I'm not saying they don't exist, but I would say the preponderance of enormous companies

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are not direct response-based companies. And so why is that? And I would pause it, and this is

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my theory, and this is what I talked to, Dean this morning about at length, is the difference between

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direct response and branding is not the ROI on the advertisement itself, but on the time horizon

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with which we measure it, all right? And so in direct response, you're always calculating your

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return on ad spend immediately. Rather than thinking, can I build up this brand and then look at

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the return you're getting on that brand overall over an extended period of time? And so I'll give you

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a classic example to illustrate the difference. If I were selling t-shirts, a direct response

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marketer might have a cool, funny meme thing, aggressively market it, have upsells of two of the

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same shirts, five of the same shirts, give them a continuity for each meme shirt every month,

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blah, blah, blah, blah, blah, blah, right? It would be a typical direct response market play,

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not see you can't make money doing it, you can. And that's this is the big exception I'm having

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here, right? Is that like you can become a millionaire doing small games, all right? So I'm not saying

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you can't do it, you absolutely can. It's just that what type of game would you prefer to play? And I

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can say that as I've aged or weathered in the game, I continue to shift more and more towards branding,

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but I do think there's a balance that needs to be struck, but from a from a branding perspective

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in that same example, it would be spending a year talking about what your values are, the stories

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that you want people to tell about you and your company. And then you can simply put your brand

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on a t-shirt and people will pay a hundred dollars for it, right? And so then what is the return on

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the advertising you did for that year? Well, if you can sell t-shirts for a hundred dollars rather

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trying to, rather than trying to arbitrage, you know, meme t-shirts and discounts and bundling and

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doing all sorts of more complex things and just simply saying, if you believe what we believe, vote

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with your dollars about the things that you care about, right? Align with us. And that's fundamentally

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what branding is. And the when branding works very well is when what you are saying about your

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brand clarifies what people are already saying. And so a lot of times people have a general

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gist of what your brand is. Hopefully it's what you want. Oftentimes it's not. And this is

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especially true in the direct response marketing community at large because people say terrible

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things about the people who are doing their direct response. And so their brand is the reputation

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and the things that other people say about you. Real quick guys, if you can think about how you

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found this podcast, somebody probably tweeted it, told you about it, shared it on Instagram or

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something like that. The only way this grows is through word of mouth. And so I don't run ads,

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I don't do sponsorships, I don't sell anything. My only ask is that you continue to pay it forward,

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do whoever showed you or however you found out about this podcast that you do the exact same thing.

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So if it was a review, if it was a post, if you do that, it would mean the world to me and you'll

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throw some good comment out there for another entrepreneur. Right, in an example that Elon Musk gave

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an interview, I can't remember where he gave it, he talked about how the consumer is the one

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that creates your brand. He said, if you look at, I think he gave the example of Toyota and Ford,

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but the point is not necessarily the brands, but more so the message, which is he said, listen,

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Ford talked about being reliable and being high quality, etc. He said, in Toyota,

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their marketing never set that. And yet Toyota is the company that's known for being reliable

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and high quality and things like that compared to the Ford's. Right, he said, so as much,

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you can say whatever you want in the marketing messaging, but it has to be true. And so to my

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interpretation of that is, what you want to do is give people the words to describe your brand

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that are true and just give them the words to say rather than trying to redefine the thoughts they

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have. And I think that that is really what comes to effect of branding and doing that deliberately.

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As an added point to that, this is something that I got from Grant Cardone, which has been one

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of the really deep and profound lessons I think I got from our two conversations we've had

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about marketing in general. But one, first off, the many people who don't like Grant, you have to

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appreciate how effective he is at promoting himself and his brand. Like, you have to respect that.

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All right, you can not like them in, but you can app, you must respect what his level of effort

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and the outcome and the output of his effort, right? I personally have had nothing but positive

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interactions with the grant, but my point is, is that you have to respect that. Now that being said,

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one of the things that he said that I have really taken with me is the one or two words

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that someone will associate with your brand. He said, when they think of me, I want them to think

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this, right? And that is not, you know, this massive declarative, you know, value statement or

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mission statement because people don't care, right? Nor do they remember hardly anything. And so

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if you can get the masses to just remember, oh, yeah, he's the real estate guy. He's the business

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builder guy, right? Which would be more aligned with what we do. We build businesses and we, you know,

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we buy interest in information, coaching, e-learning type businesses that are in a niche. And like,

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that's what I want people to associate. Now, they're not going to remember all the stuff that I just

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said. But if I can just, if they can just say like, he's a digital business builder, like he,

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or like digital business investor, right? Either of those things would be things that I would say,

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okay, that's a positive association. That's the type of association that I want people to make with

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my brand, right? And the thing is, is that if I can wait a longer time, which is why most people

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cannot do this and why I'm not saying you necessarily have to start branding day one. But if you can

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be cognizant of what the message that you were relaying in your content and in the advertising

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that you do, and I'm using advertising by the actual definition, which is to make known, right?

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When you, when you make your products and services known in the many ways that you do it,

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if you can reinforce the simple message in every single thing, people will begin as long as it's

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aligned with what's true to say the same things back to you. And that will reinforce the cycle of

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who you are in the marketplace and what you stand for. And so if branding is a higher ROI activity

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overall, I believe it is. And I think that there's the many massive companies that exist out there

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would be great testaments and evidence to that point is that they don't engage in direct response

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marketing for the most part or even at all. To the vast, like the vast majority of the time,

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they are talking much more about who they are and what they stand for, right? Why they do what they

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do, right? And then people then buy their products and service in accordance with their values.

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And they vote with their dollars about the things that they care about being the identity that they

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wish to associate with, right? And so I think that the reason Seth Godin started with direct response

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and then became and now talks exclusively about branding. The reason Simon Sandex started direct

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response and then talks way more about branding. The reason that I started in direct response and talk

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much more about branding stuff. Now, at least that's my belief in where I think it's because that's

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where you make more money just over a longer time horizon. And I think the reason that many

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direct response marketers burn out is because they don't like the brand that they are building for

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themselves, which is why most people leave the space over a long enough time horizon. And so

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that's why you don't see many, I'm not saying there aren't any, but the vast majority of direct

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response marketers tend to be younger. And one of the difficult things about this, and I was having

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a conversation with the friend about this, is that because it is such a young space,

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there are not many people who have old lessons. And so the predominant education that exists

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in the spaces, people who are new, the fact that someone can consider themselves a quote,

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OG in the internet marketing space after three years is laughable, right? It's laughable,

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hilarious, but it's true. In that space, it's very difficult to be an OG because most people burn

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out because their brand equity drops so much, right? And so if the only way that we can build very

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big things is doing them, the same thing over a long period of time, then it would create the

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the, I don't want to say obvious, but a natural conclusion that branding is the direction that more

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people end up going in once they have the ability to do so. And so if you can delay the ask,

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and you can have the resources, and you can have the patience to build something bigger,

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your goodwill will compound faster than your revenue will in a direct response marketing environment.

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And so this is the concept around give, give, give, rather than ask, give, give, give, comma,

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give, give, give, comma, give, give, give, get. And what's interesting is that I think most people

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in the prospects that are consuming your, your content and things like that, they are waiting for

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the other shoe to drop. They're waiting for you to make the ask. And so they have their guard up.

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But if you give, give, give, and then right when they're expecting you to ask, give again,

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and then again, and give even more, their guard begins to drop and then they start to think,

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man, this guy or this gal is awesome. I really like this person. And then something interesting

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happens, they start telling people about you because they don't believe that they're sacrificing

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their own brand equity by sharing your message. And so that is where the compounding effects of

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word of mouth start to take off. And so when I say that goodwill compounds faster than

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revenue, it's because in the traditional example, it would be give, give, ask, and this isn't me

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pooping area or anything like that. I mean, I think that very much at least establishing

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that cadence is useful for most people who are doing a direct response, at least give something

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before you ask, right? But if rather than asking, right, where you have to start over at zero

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because you build, you build equity, you build value in the relationship and then you're asking

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you back down to zero and then you build it and then you go back down to zero and then you basically

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always cap by the amount of value that you have in the relationship. That's the cap, right?

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But the alternative, if you were to look at this visually, would be give, give, give, give, give,

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give, give, give, and then it keeps going, the chart keeps going off. And then at a certain point,

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a certain percentage of that audience, because they have, they are reciprocal in nature type people,

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they will take steps towards you without you even asking simply because they believe so strongly

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in what you have and those the types of clients, right, that you want to be able to take on,

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it just takes patience to get there. But when you have those types of clients, they get better

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results, they pay bigger premiums and that also gives you implied scarcity within your products

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and services and you are always understanding your demand, which will essentially eliminate your

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bottleneck that you have in growing because you always have more demand than you can possibly handle

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and that is the benefit of building the brand over the long term rather than simply the, the,

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one, two punches in order to extract capital today. And so if you can delay the amount of time

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that you have between when you provide value and when you ask and ideally you never do,

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you simply allow the goodwill to continue to compound, allow the word of math to continue to grow,

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to the point where you start receiving money probably far, far further in the future than you

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are now and what you are accustomed to doing. But in that future state, you can then look at the

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minimal amount that you're spending, right, in order to distribute your message to advertise,

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right, to make known. And then you will see that you have significantly higher returns on your

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advertising efforts. It just took longer to get there. And so understanding that it's been

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branding in direct response and having a longer term perspective and looking at the OGs in the

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space or lack thereof, the people who have transitioned from direct response to branding,

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I think that there is a lot of lessons that we can take from it and this is just one of them

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that I wanted to share with you. And if you're new to the channel, Walk into Mosy Nation,

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I said this earlier, but our portfolio is about $85 million dollars a year. It's actually

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a little higher than that. I just tried to stay consistent, but I think it's probably over 100 now.

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But I make these videos because I struggled a lot coming up and I hope that the pain that I

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went through is not for nothing. And so that's why I make these videos. And yeah, so I just hope

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you like it. So anyways, keep being awesome and I'll see you guys in the next video. Bye!
