Referral Marketing

How to get me to refer your stuff (or vice versa)

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I’ll tell you in just a second. But first, for greater impact, let me illustrate what I have to tell you with a little anecdote from this morning:

This morning, I prepared my usual breakfast — a can of sardines and some salad from a bag — and I sat down to my usual breakfast reading.

My usual breakfast reading is the latest New Yorker. ​​Today, it happened to be an article abut the hottest restaurant in France, a €52.99/person, all-you-can-eat buffet called Les Grands Buffets.

Les Grands Buffets is in a town called Narbonne, in the south of France, less than 100km from the Spanish border, and a 2-hour drive from Barcelona, where I live.

“Interesting,” I said.

And without knowing what I was doing, I got out my phone.

I opened up the WhatsApp group I have with two friends who visited me in Barcelona two years ago. They both have some interest in the south of France. So I forwarded them the article and joked, “Maybe for the next time you visit.”

Then I thought of my ex-girlfriend.

After 9 months of cohabitation after our breakup, we finally stopped living together last month. But she’s still in Barcelona and we’re still on good terms.

Since she’s a big foodie, I also forwarded her the same article about Les Grands Buffets. (Immediately, she wrote back, “Maybe you would like to go for a road trip ?😂❤️”)

So the point I want to share with you is a simple two-step formula for getting referrals.

It’s right there in my experience from this morning, in the way I unthinkingly forwarded this New Yorker article to two sets of people. The formula:

1. Something interesting, potentially valuable, which I was willing to share

2. Specific details that made it easy to think of the right people to share it with

This is something you can do consciously, if you want to encourage me (or others) to refer you or your brand or content or offers.

Let me give you an example:

Last night, I sent out a very brief email to my list. The email asked my readers if they 1) write Facebook ads, and 2) have clients who pay them for it.

I promised my readers that if they satisfy these two conditions, I have something that might help them get paid more.

So far, I’ve had a few dozen people respond.

But… maybe you know somebody else? Somebody who fits the two criteria above? Somebody who writes Facebook ads… and who has paying clients?

If so, consider forwarding them this email. Maybe you can benefit this person, and they’ll be grateful to you.

And if somebody forwarded this email to you, and you fit the criteria above, and you’re interested in what I have, then hit reply.

The seedy underbelly of every industry ever

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This past Wednesday, the BBC ran an article with the headline:

“The seedy underbelly of the life coaching industry”

The article features the story of a woman named Angela Lauria, age 50. Lauria went in search of weight loss and she wound up with a life coach who charged her $100k and got her to spend thousands more on trainings by other life coaches.

We don’t actually find out what happened to Angela in the end, but presumably she did not make her $100k back via new and bigger successes in her life.

I guess the BBC published this article because life coaching is a booming industry and because it’s still relatively new.

The point, the article says, is not to discourage people from seeking a life coach’s services — because there are good life coaches. But it’s the Wild West out there.

I personally think it’s the Wild West everywhere, and always has been.

My estimate — based on having seen behind the curtain at hundreds of businesses while I was a for-hire copywriter — is that 80% of people doing any job are at best mediocre, and more likely, they are actively bad.

Only 20% of people in any industry are genuinely dedicated, skilled, and get good results on any kind of consistent basis.

So what to do? Well, if you’re looking for a life coach, the BBC article has the following good advice:

“Ask the coach how much of their business is referral, call at least three former clients and don’t buy from anyone who won’t do a call with you directly beforehand. And don’t buy from anyone who needs an answer now – scarcity and urgency is made up.”

Meanwhile, if you want to write a personal email newsletter — to distinguish yourself, to prove your credibility, to promote your products and services — then look at my Simple Money Emails program.

​​Most of the sales for that program came via referrals. And if you’d like to see what a few previous customers had to say, take a look here:

https://bejakovic.com/sme/

Gift-box theory of marketing

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A few days ago, I bought the ticket for my second-ever Sean D’Souza meetup, this coming April, in Lisbon, Portugal.

Sean, as you might know, is an old-school online marketer who has been selling info courses about marketing since 2002.

The first meetup of his I attended, in Seville in Spain last year, was great.

I met a Hungarian who runs a dental clinic in Budapest, Hungary. We bonded over the fact that I lived in Budapest for a long time and had only good things to say about the place.

I guess he was grateful. Because in return, he told me his story and opened my eyes as to what marketing really is and how powerful it can be.

I’m about to share a part of this guy’s very clever marketing strategy for his dental clinic.

I can’t overstate how valuable and cool it is, at least if you’re into marketing.

What I’m about to write is worth reading closely, and remembering, and pondering. Here goes:

For years, the Hungarian ran a highly successful dental clinic doing dental tourism. He built the business on Google ads. Swiss or Brits came in to get their teeth fixed at a discount while enjoying a fancy hotel in Budapest.

And then, corona came. Lockdowns. Travel shut down entirely, as did most businesses.

After a few weeks, dental clinics in Hungary were allowed to reopen. But international travel to Hungary remained closed, which meant dental tourism was out. The Hungarian’s dental clinic had all these fixed costs, and no patients.

So he paced the floor of his empty clinic… he paced… and paced… and he came up with a plan.

He decided to create an entirely new dental business serving only locals. And how.

Within six weeks, he filled the entire practice… without running any ads, which had become super expensive because all the other clinics were running them… without tapping any prior customers or network… without begging masked people on the street to come in for a free cleaning… without creating content… without becoming a social media influencer… without paying other such influencers to promote him.

Pause for a moment.

Ask yourself.

How would you do the same?

How would you get dozens or hundreds of new patients, ready to pay you large sums of money, within just a few weeks, starting with nothing, except the tools of actually delivering the service, and your knowledge of human psychology?

Here’s how the Hungarian did it:

He started approaching the offices up and down the busy street where his offices sat. He would ask to speak to the CEO or to some other top exec and say:

“I have a dental clinic nearby. I’m going to write an email to promote my clinic to your employees…”

So far, so bleh. But this next part is not:

“… and I want you to send it, in your own name. It’s a pandemic outside. People are scared. Even small infections could compromise their immune system, and could prove to be deadly. So I want you to say that you, Mr. CEO, were thinking about your employees, and you reached out to us, and fought to get us to offer a special deal, a huge discount, to your employees to check if they have any dental problems. This is about healthy teeth of course, but in the present moment, it can keep your employees from getting sick or dying. You are doing it because you care.”

Pretty good, right? ​​

​​Good, but not a sure shot. ​​Mr. CEO might want to look good to his employees, but he might also have bigger, more pressing problems to deal with.

​​So the dental clinic owner continued with his pitch to Mr. CEO:

“Because of the lockdowns, your business is not operating right now. You are not making money. The fact is, when your employees come to us for their checkup, most of them are sure to have dental problems that will require further work. We will charge them a fair price for this work. And we will give you 10% of these fees to help you out, so you have cash during this hard time, while your business is frozen.”

Result?

Like I said, an entirely new business, a full clinic, highly profitable, in just 6 weeks time.

After the Hungarian told me this, I marveled for a while. And I came up with what I call gift-box theory.

Imagine a collection of beautiful gift boxes. Imagine the small lump of coal you want to sell.

Your small lump of coal might not be very attractive on its own (“I want you to promote my business to your employees”).

So you put your lump in one gift box (“be a hero to your employees”). But no need to stop there. You can then put that gift box into a second gift box (“… and make money at it too”).

Each market has its own set of beautiful gift boxes that they care about, that mean something to them, that tap into their emotional responses.

Your small lump of coal probably means nothing to your prospects. So it is your job as marketer to identify the gift boxes that your market responds to, and then to stack a combination of them in such a way that the entire experience — lump of coal inside a sequence of gift boxes — thrills your prospect.

Actually, there was more to the Hungarian’s story — more gift boxes, more smart and clever and free marketing they continued to do after this initial effort, which grew their business even larger.

But I’ve already shared too much. I wouldn’t normally write so long or share this much how-to information. But I profited from that Sean D’Souza meetup. I’m sure to profit from the next one. And so I wanted to give you something valuable as well.

That said, what I’ve just done is not a good sales email. It’s not what I recommend doing in my Simple Money Emails course. Therefore, I do not expect you to buy anything from me today. But if you want to prove me wrong, here’s more info on everything I offer right now:

https://bejakovic.com/showroom/

How to get drug-dealer levels of cash without selling drugs

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Last Monday, I wrote an email about Pinky Cole, the founder of Slutty Vegan, a fast-food brand with 11 locations, valued at $100M.

I’ve been traveling in the days since, so I didn’t get a chance to finish the New Yorker article where I first read about Pinky Cole.

I was reading that article again this morning. I found out that when Cole first launched Slutty Vegan back in 2018, she did so without a physical location, just on a bunch of food-delivery apps.

The first day, Cole sold exactly one slutty, meat-free hamburger.

Things inched and middled and crawled along at this pace until Cole hired Ludacris’s manager, Chaka Zulu. Zulu helped Cole get a bunch of rappers, including Snoop Dogg, to endorse Slutty Vegan. Result:

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From there, demand exploded. “I felt like a drug dealer,” Cole said. “We had, like, trash bags of money, because we only took cash.”

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Along with reading the New Yorker, today I’ve been preparing intensely for the live training that I will host this coming Monday, about how I write and profit from this newsletter.

I’ve been collecting ideas for that training over the past couple weeks, and today I also made a big brain dump.

I realized I will have to significantly pare back all the valuable ideas I could share, in order to have a training that makes sense and that doesn’t go on forever.

But one thing I’m sure to keep is the point of the Pinky Cole story above.

It should be obvious enough. But if you want me to spell it out, and show you how it fits into making money with a newsletter, particularly if you also work with clients at the same time, then join me for the training on Monday.

This training will be free.

It will happen on Monday January 22, 2024 at 8pm CET/2pm EST/11am PST. But you will have to be on my list first. Click here to sign up.

How to increase your average open rate by 1.95%

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My average daily open rate for the last week of February was 33.89%. My average daily open rate for the last week of March was 35.84%. That’s a staggering increase of 1.95%.

Well, it’s not really staggering. It’s not really anything.

Open rates don’t tell you much, and what they do tell you is often bad. I’ve written before how for one large list I was mailing with daily offers, I found a mild inverse relationship between open rates and sales — on average, each extra 1% of opens cost us $100 in sales.

But my sales are up as well. Like I wrote a few days ago, this past March was a record month for me. I made plenty of sales in that last week of March, many more than in the last week of February. I won’t say how much more, but it’s enough to go to Disneyland with.

What gives?

I can tell you my impressions. The jump in both open rates and sales very clearly came after March 6, when I ran an ad in Daniel Throssell’s newsletter. But — about that.

The staggering increase in open rates might be due to new subscribers who came via that ad. I don’t know, and ActiveCampaign gives me no easy way to figure it out.

But I do know that the bulk of new sales I saw in the whole of March compared to the whole of February did not come from new subscribers who came via the ad. The bulk came from my existing subscribers.

Many of those sales came from people buying new offers I had made in March, such as Insight Exposed and Copy Zone. That’s normal.

But one thing that struck me is how many existing subscribers, some of whom have been on my list for months or even years, decided this March to buy offers like Copy Riddles and Most Valuable Email, which I have offered dozens of times before. These readers successfully resisted all my previous pitches, but they found themselves curious and willing to buy now.

It wasn’t just one such person. It was lots. I asked myself what made the difference.

My best answer is this:

There’s a lot that goes into the success of email marketing beyond the actual email funnel and copy. At least if you’re doing something like I’m doing, which is a long-running, personal, relationship-based email newsletter.

I’ll leave you with that for today. And I’ll just remind you of my coaching program for email marketing and copywriting.

I have to include the email copywriting in the coaching program, because it’s what almost everybody wants to learn and believes is most important.

But in my experience, email copy is rarely the thing that really makes the biggest impact in the results of your emails. By results I mean sales, as well as soft stuff like retention, engagement, and influence.

Anyways, if you are interested in my coaching program, you’ll also be interested to know this program is only open to two kinds of people:

1. Business owners who have an email list and want to use email to both build a relationship with their customers and to sell their products

2. Copywriters who manage a client’s email list, and who have a profit-share agreement for that work

If you fit into one of the two categories above and you’re interested in my coaching program, write me an email and say so. Also tell me who you are and what your current situation is, including which category above you fit into. We can then talk in more detail, and see if my coaching program might be a fit for you.

The Law of Reflection

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I expected some blowback to my email yesterday.

For one thing, I was writing about loaded topics — corona, Novak Djokovic, government lockdowns, Prince of Persia.

For another, in the hours after I wrote and scheduled yesterday’s email, the story I was writing about blew up. It went from being something only tennis fans and Australians might know about… to the number one international news items, with the predictable outrage and memery and fixed opinions.

So yes — I was expecting people to write in and tell me how stupid, flippant, and just clearly very wrong my email is.

I should have known better. Because what happened was this:

A bunch of people did write in. Some liked the email and the point I was making. Some offered to be my nemesis (the takeaway of yesterday’s email). Some told me personal stories of their own from the ground in Australia. Some disagreed with the email, in reasoned and civil tones.

But not one person was insulting, aggressive, outraged or seeking to outrage me.

In fact, the last time I can remember getting an outraged response to my emails was over six months ago. The same guy who wrote that outraged response had written me a few inflammatory emails before. So I unsubscribed him from my list, and wrote an email about it the next day.

Like I said, no outrage since. Maybe there’s a lesson in there. In any case, there’s definitely a lesson in here:

“The adversary mirrors you”

That’s from master negotiator Jim Camp. The adversary in Camp’s system is the person you are negotiating with, but it could just as well be a prospect you are looking to sell… a reader you are looking to influence… or a girl you are trying to get on a date.

In fact, Camp’s advice is almost the same as the advice of the late and great pickup coach Tom Torero. Tom used to tell guys that “the girl is your mirror.”

If she looks startled or scared when you approach her… if she won’t stick around to talk to you… if she doesn’t trust you with her phone number… then take a step back. And figure out exactly what you’re projecting into the world, and how you should change it.

In other words, this mirroring stuff isn’t my plea for the world to be civil and boring.

I’m just telling you to figure out how you want your adversaries to feel and act. Relaxed and confident? Fun and playful? Scared and outraged? Then you know what to do. Feel and act that same way yourself.

Or vice versa:

Figure out how you want to feel and act in your life and your business. Just be aware that those are the kinds of prospects you will attract.

If there are enough such prospects, then you’re well in the saddle. But if you don’t have enough prospects who want to feel and act the way you do…

Then you might benefit from the following referral advice from Jim Camp. It is a kind of corollary to Camp’s Law of Reflection above. Camp says:

“What’s the key to getting referrals? It’s simple. Give them.”

My prediction about the future of direct response hits

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“The next Tesla may even hire creators to evangelize the company or at least, serve as a paid marketing channel. Creators are essentially media companies now, which means that the creators of tomorrow will operate a lot like the New York based publications of yesteryear.”
— David Perell

My email yesterday looked at some fancy science, and made a simple point:

A hit product is the result of chance. The first few raindrops of popularity determine which spots in the product landscape become lakes, and which ones deserts.

I think this leads to a few conclusions. One is that, just because a product (or an offer) was successful before, this doesn’t necessarily mean it is worth studying. It might have become successful due to chance more than any intrinsic quality or real demand. And vice versa. You clearly cannot count on the quality of your product as your only key to success.

So what can we do about this?

One option is simply to put out lots more offers. This will increase your chances of getting at least one big hit.

And then there’s the fact that early buzz seems to be crucial to long-term success. Which to me suggests that street teams.. astroturfing… or influencer marketing are really where much of your marketing efforts should go.

And that’s what David Perell is saying in the quote above. Media-savvy businessmen like Elon Musk are already using creators as their main marketing channel. And the “next Tesla” will probably do more of the same.

But hold on a second. Tesla? That’s a whole other country from the direct response businesses I normally talk about.

After all, if some guy in 1995 got a sales letter from Gary Halbert about a book on killer orgasms… he probably didn’t go down to the local bar to ask his buddies if they knew anything about this orgasms book, and if it’s worth the $39.95 Halbert was charging for it.

In other words, people chose traditional direct response offers in a more independent way than they choose cars or movies.

But as I’ve written before, I feel that’s changing. In the same way that traditional brand businesses are becoming more direct response savvy… traditional direct response businesses are discovering the power of having a brand. So the same reality of what makes a big hit matters for modern DR businesses too.

The way I see it, that means you’ve got two options:

One is to become a creator yourself, because businesses will need you more and more.

The other is to hire creators or influencers to promote your offers, so you can create enough initial buzz to make it a hit.

That raises the question of who to hire and when and what they should say… All interesting questions. I’ll talk about that another day. And if by some strange circumstance you want to hear what I have to say then, you can subscribe to my email newsletter.

To freelance copywriters who can’t promote themselves

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Smartasses always say that if you’re a freelance copywriter worth a rusty nickel, you should be able to write and sell yourself.

Stupid, I think.

For one thing, it ignores the value of having an outside perspective. In fact, outside perspective is one of the main reasons to ever work with a freelancer, rather than do it in house. This holds for businesses. It holds for freelance copywriters too.

The above claim also ignores the facts of life. Such as the fact that the type of person who is likely to become a freelance copywriter is as afraid of self-promotion as a cat is afraid of water.

When you put those two together, you get the following:

You can be just great at marketing and copywriting overall… but terrible at applying that same knowledge to promoting yourself.

Case in point:

I read an email today from a marketer I follow and like very much. He has great content and a unique perspective and style.

But here’s the self-marketing mental block:

At the end of his email, he writes, “Can I ask for a tiny favor? Would you share this with one other person?”

From the side, it’s easy to point out problems with this.

It sounds needy. And why ask for a favor, when you can do a favor?

People refer stuff because they want to feel important, smart, and appreciated. So why not say something like,

“Do you know somebody who would benefit from reading what you just read? Why not be that cool friend, and forward them this email?”

As Claude Hopkins once wrote, “offer a privilege, not an inducement… appear as a benefactor, not as a salesman.”

Do you know anyone who might benefit from reading this? Then be a cool friend, and let them know about my email newsletter.

Stop asking your clients for referrals

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Stop asking your clients for referrals. At least until you’ve read through this article.

You’ve probably heard the Ben Franklin book-borrowing story:

Franklin had a political opponent he wanted to win over. But he didn’t want to butter the opponent up with flattery of tenderize him with gifts. Instead, Franklin used another tactic. He asked his opponent for a favor — the loan of a rare and curious book.

The opponent obliged. Ben Franklin returned the book a week later, with a note expressing his strong “sense of the favour.” After that, Franklin’s opponent opened up. The two eventually became great friends.

What does this have to do with referrals?

Well, as Franklin put it, “He that has once done you a kindness will be more ready to do you another.” it’s a matter of consistency, that fundamental human need. If I do you a favor, I have to justify it to myself somehow, and that will affect how I act in the future.

But it goes in the other direction, too. And that’s the connection to referrals.

If you ask a client for a referral — and he doesn’t oblige, for whatever reason — then he has to justify that decision to himself. And like Franklin says, “He that has once done you an unkindness will be more ready to do you another.”

Of course, not every book you borrow will make you a new friend… and not every referral you fail to get will lose you an old client.

But I want to raise the possibility that asking for a referral in a haphazard way can have its drawbacks.

“Just go ahead and ask, it can’t hurt.” Maybe. Or maybe it can.

So does that mean you should get paralyzed with fear and avoid referral marketing?

No. But it might make sense to have a smart system that works.

Such as the systems you can find in the following video. I’ve linked to it before, but I’ll do it again. It’s a recording from a Jay Abraham seminar where various clients of Jay’s shared 93 referral getting-strategies that actually worked for them.

Some of these methods are simple and obvious. Some are involved and very clever. But they’re all worth knowing about if you want more referrals:

https://www.youtube.com/watch?v=_13FI1zE94k