I recently learned of a successful real estate guru who partners with you, even if you’re a scrub.
That means he teaches you what to do… provides you with office support… gives you tens of thousands of dollars to fund your deal… and then splits any profits with you.
Sounds good?
It is. But here’s the monkey wrench:
He also charges you a hefty upfront fee so you can become his partner.
I mentioned yesterday the idea of “success share” in direct response businesses. So far, this real estate guru is the closest I could find to that.
I thought about what a pure “success share” direct response business would look like, without a hungry hippopotamus of a fee up front.
I imagine it wouldn’t be recognizable as a direct response business any more.
Just to be concrete, let’s take the example of a business that trains would-be copywriters. How would that work if it were based on a share of results that customers get… rather than an upfront fee?
Well, instead of being a factory for constant new offers, I imagine it would look more like the startup incubator Y Combinator, or like Goldman Sachs. It would work to attract the highest performers, the people who would succeed regardless of which system they go through. And it would ignore everybody else.
In this hypothetical “success share” world, 99% of direct response businesses would vanish.
Because most direct response businesses need scrubs, just like most strippers need tips. It’s what pays the bills.
But like in a strip joint, this doesn’t mean the average direct response customer is getting nothing for his money. Keep this in mind if you’re trying to sell something. You’re selling hope… entertainment… even companionship. Results can be valuable, but they come after those more important things.
Speaking of important things: