Perry Marshall is one of the most expensive business strategists in the world. He is endorsed in FORBES and INC Magazine and has authored ten books. At London’s Royal Society he announced the world’s largest science research challenge, the $10 million Evolution 2.0 Prize. His reinvention of the Pareto Principle is published in Harvard Business Review, and his Google book laid the foundations for the $400B digital advertising industry. He has a degree in Engineering and lives with his family in Chicago.

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Guest Resources

Perry’s Website – Sign up for the Perry Marshall Minute on his website.

Detox, Declutter, Dominate – Get a copy of Perry’s book on Amazon.

3 Value Bombs

1) The Network Effect is the most powerful moat you could possibly have around your castle (business).

2) The “If If or else guarantee” recognizes that in every transaction, somebody is taking the risk and it should not be the customer.

3) The only way to succeed is in the high end. A superior product for which you can command for a higher price with a good margin is literally the only way to make a lot of money for a small business.

Show Notes

**Click the time stamp to jump directly to that point in the episode.

Today’s Audio MASTERCLASS: 10 Ways To Turn $1 Million dollar Businesses into $10 Million dollar Businesses

[1:36] – Perry talks about the “Network Effect for Mere Mortals”.

The Network Effect is the most powerful moat you could possibly have around your castle that most people think is only applicable for Silicon Valley.
They invented their version of this so-called “Network Effect for Mere Mortals”. It’s layering in service and brick and mortar businesses with digital feedback loops that don’t cost a lot of money to build but once its built, it will become a motor around the castle.
An example of this is was when they worked with a roofing company, their process was to get 5 star reviews , they got their act together and got 200+ Google reviews in Washington DC. The first day they opened in Houston, they got 200 5 star Google reviews that meant every new customer cost them less to acquire. That is one example of Network Effect.

[4:16] – Perry talks about the most important tool they can ever discover in business. It was invented in the 1960s and yet 99% of entrepreneurs have never seen it.

The Star Principle – the 20% of companies that make 80% of the profit is a star business.
The business in any market that is growing 10% or more per year is the No. 1. If you are not a star business, you are not growing and not the No. 1 in the market, you need to do something else.
This applies to any kind of business and in any market. Its better to be the big fish in a tiny little pond.

[6:34] – Perry talks about The AI opportunity that consultants and subject matter experts are completely missing.

They are afraid to talk to it as a human, either they resist it , fear it or they roll in capitulate to it.
When you use AI, you have to remain in charge because you are in charge.
You have to use AI because you have something as a human being that AI doesn’t have , don’t compete with it.

[8:22] – Perry tells more about the formula for risk reversal that nails our killer Unique Selling Proposition.

He calls is the “If If or else guarantee” where it recognizes that in every transaction, somebody is taking the risk and it should not be the customer.
If you are the right customer in the first place and if your customer cooperates with the processes which have been outlined for them then they will get a definitive guaranteed results or else there is a penalty to the vendor if it doesn’t work. All four stipulations really have to be concrete.
You have to make it good on that guarantee and consider it as a marketing expense.
It will cause your company to be meticulous in every system and to deliver a quality product and force you to identifyevery possibility that could go wrong. 98% of B2B will never make a guarantee like this.

[12:48] – A timeout to thank our sponsors!

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[15:15] – Perry talks about real life cases.

When Covid hit , he noticed that his coaching groups with a higher level and expensive coaching , the faster the students are chopping and cutting their overhead. The less sophisticated clients procrastinated but the ones who were sharp took those measures really fast, when the world started adjusting to Covid they started growing.
The worst business you can have during that time was trade shows. His business whent from 25 employees to 8 and only had corporate clients that are renewing their contract. He cut his business to the bare minimum but when the trade show businesses, he used all that leaness to dial in his systems better and somebody came along and scoop his business for 8 figure.

[17:20] – Perry talsk about the client who eliminated friction and spiked growth from 22% to 56%.

A client in a slow moving traditional industry asked him a year ago how long does it take to onboard a client and he said 180 days. Nobody was asking for it to be shorter than 6 months. He told him if he can cut it from 180 to 90 days to make a 50% rate in business growth. He did what he told him and created an efficiency . A year later they achieve a 56% growth in their business.
You need to double the speed at which the customers get their results.

[20:18] – Perry talks about the absolute curse-sinkhole-of being “a little better and a little cheaper”.

There are two kinds of really successful companies in the world. The one with premium priced products like Apple or like McDonald’s or IKEA that deliver an acceptable product at a really low price. They have two different cultures and mentalities and most people try to do both but, there is no money in being a little nit better and a little bit cheaper. You either have to pick one or the other.
The only way to succeed is in the high end. A superior product for which you can command for a higher price with a good margin is literally the only way to make a lot of money for a small business.

[22:11] – Perry gives his final take away.

Enjoy freedom to create, invent and re-invent every single day.
Your best ideas and insights will come when you are in a flow state. You need to carve out things in your life and put things that you enjoy and put you in that flow state. The solution you are looking for is going to come when you are having fun.

[23:39] – Call to action.

Perry’s Website – Sign up for the Perry Marshall Minute on his website.
Detox, Declutter, Dominate – Get a copy of Perry’s book on Amazon.

[26:23] – Thank you to our Sponsors!

Shopify: Be ready to sell wherever your customers are scrolling or strolling — on the web, in your store, in their feed, and everywhere in between! Sign up for your $1 per month trial period at Shopify.com/onfire!
NetSuite: Over 41,000 businesses have future-proofed their business with NetSuite, by Oracle – THE number one cloud E.R.P. Download the CFO’s Guide to AI and Machine Learning for free at NetSuite.com/fire!

Killer Resources!

1) The Common Path to Uncommon Success: JLD’s 1st traditionally published book! Over 3000 interviews with the world’s most successful Entrepreneurs compiled into a 17-step roadmap to financial freedom and fulfillment!

2) Free Podcast Course: Learn from JLD how to create and launch your podcast!

3) Podcasters’ Paradise: The #1 podcasting community in the world!