Good Carnival Monday Morning all, gasp! Yes I’m doing a podcast analysis on a day that I am supposed to be grinding on a woman behind a big truck shout “Like ah boss!”. Regrettably no, I’m the unlucky bastard who chooses to spend his time here with the handful of you reading this post about topics that may or may not appeal to you. Anyway enough about my wonderful life back to the work at hand, this blog post will relate to a name that kept popping up in the books I read as well as the podcast episodes I had to choose from on my go to sites. His name is Ramit Sethi and he will be teaching you how to become rich but unfortunately only by the rate of a dollar at a time. Yeah I know at very slow rate but for us Trini’s its $6.45 dollars at a time give or take a few cents, so be grateful. Ramit is a financial Guru and is the author of the New York times best-selling book I Will Teach You To Be Rich also has a blog on many other topics. Today I will be joining his interview on Entrepreneur on Fire and see what I can learn instead of reveling in the streets next to some drunks.
Here’s the podcast – http://www.entrepreneuronfire.com/podcast/ramit-sethi/
- Ramit mini back story – 1:33
(3:17) Systems over everything
- Success Quote – 4:17
- A series of experiments – 6:01
(6:45) The failed online course
(9:18) There will be critics
- Packaging value and neglecting those in debt – 11:02
(12:20) Who are you really serving?
- Dont look for quick results – 14:17
(15:58) AHA Moment
- Some tactics when building a brand – 18:26
(23:29) “People are most motivated to take action when they have just taken action”
(24:50) Webinars for higher price points
- Proudest Entrepreneurial Moment – 28:56
- I want students for life – 32:17
- What was holding you back from becoming an Entrepreneur? – 36:22
- Whats the best advice you’ve ever received – 36:52
- One of his personal habits that contributes to his success – 37:39
- His personal favorite resource – 38:12
- His favorite book – 39:01
- Final question in the lightning round – 41:44
- Parting words of Advice – 43:24
Key Points Taken
Ramit mini back story – 1:33
Back in college around 99-2000 Ramit invested half of his scholarship money in the stock market and promptly lost it, this loss made him want to learn about investing. Along with that he was learning at the time about human behavior, social influence and persuasion, which slowly lead him realize what the masses were telling you do such as keep a budget, stop spending money on latte’s etc to save on money was not working. Being the systems guy he is decided to create some around personal finance, entrepreneurship, negotiating your salary or even finding your dream job added with the psychological aspect of it on his site.
(3:17) Systems over everything – Scott adams says “losers have goals and winners have systems.” In the end of it all we want to know that our money goes where it supposed to go, you want to know how to act in social situations, if you want to start a business how to get about doing that and his site shows your how to do so with the systems that he developed.
Success Quote – 4:17
“We are stubborn on vision. We are flexible on details….” – Jeff Bezos. This boils down to the focus on long-term goals and not being expectant on results immediately, being steadfast and when challenges appear along the way be flexible and change course but with the vision in mind. Put in the time to become a true master at what ever you seek out to be.
A series of experiments – 6:01
Ramit thinks of failures as a way to experiment to see how he can improve, he even has a system for it in his Gmail inbox which is a tab dedicated to failures and if he doesn’t add 5 or more failures a month, he thinks he hasn’t failed enough. An example of this is you asking someone out for coffee and they said no or it could be as big as we did a major product launch and we under performed by 72%.
(6:45) The failed online course – Before writing his best seller book, he had written an ebook which was for 4.95c which now is laughable because one of his recent courses was 12thousand dollars. His sales copy was horrible, check it here, for the 3 years his site was up the content on it was free, he never wanted to do it for money, he just wanted to have the best psychology money website on the internet. When he put this book out for sale on the site, the hate comments came out of the woodwork, claiming he was a sellout, that the build up was just to get money out of his members, which really hurt him. It was so damaging to his self-esteem that he didn’t even bother to properly set up a processing system, he just waited until paypal notified him of payment and he would manually email it to them. Note he eventually got sales coming in so he had to email hundreds of these ebooks.
(9:18) There will be critics – But you have to differentiate between the freeloaders and the ones who want to invest in themselves. Doesn’t matter if you charge 5 dollars or 10,000 dollars, students will be able to multiply that hundreds of times over in their lifetime. Also be aware of the people who genuinely care about you, for example your mentors, if they say they think you are charging too much and it’s not a good product, take it to heart. Pricing will not matter to the ones who you are out there to serve and they will get the most help from it in the long run.
Packaging value and neglecting those in debt – 11:02
Ramit had one of his courses on sale and 1 million people viewed it and less than 5 people complained about the cost, he says that is the result of years of knowing how to properly package a product to the market. One thing he does as well is inform customers if they are in debt he will be not accepting their credit cards, if they neglect the warning and join his course he refunds them their money and permanently bans them from doing any others. The reason for this is that he wants them to need that money to clear off their debt far more than taking his course.
(12:20) Who are you really serving? – Ramit challenges everyone to target the right people for your product or service, don’t try to serve everyone. Because what you are selling will not apply to everyone, for example if you go to Louis Vuitton to purchase a bag and ask what can i get for $10 dollars, you will get laughed out that store because their market is for high-end customers. Now if you go to a store with bags for low-end customers and have 10 thousand dollars they may have something for the most at 100 but they will still look at you wondering why are you looking for a product in this store.
Dont look for quick results – 14:17
Ramit built 2 online courses one that was a bit of an introductory version taking about 6 months that yes did very well and made enough sales but then he and his team decided to work a bit longer about a two years on another course which took more research time and investments and this one did extremely well. The second course despite the long prep time did 1000 times better than the first, he calls this disproportionary results, where you work 2 times as hard and get ten times the results.
(15:58) AHA Moment – His friend comes to him a day and tells him I got a lot of traffic coming to my site and i wanna make money off of it. He showed his friend an example of data recovered from the two projects like before, the easy one and the hard one, then explained you can do it the easy way and get easy results or do it the hard way and get disproportionary results. The thing is everyone is doing it the easy way, why not take the extra time and invest into bringing something to the market that no one has ever seen before and charge appropriately for its value.
Some tactics when building a brand – 18:26
1) Survey more – Get into the heads of your potential customers based on the proper questions around your product.
2) Beta Test your programme – Get ten people and show them through power point your bare bones product and then have them fill out a questionnaire. Tell them that you will give them the programme for free when it launches.
3) Pricing – Hold the line on pricing your final product, if your product is good, price would not be an issue for the people who know it will solve a problem in their life, those are the people who prefer value over cost any day.
(23:29) “People are most motivated to take action when they have just taken action” – Here is how you can apply this to your business. Right at the bottom of a blog post or after they have bought something from you ask them if they want to take more action by offering them to sign up for your mailing list so you can share more value and at the same time you have another potential customer for later products.
(24:50) Webinars for higher price points – Ramit’s suggested prices based on value:
Ebook – $47 – $97.
Ebook with Video – $97 – $297.
Video Course – $297 – $497.
Beyond just video – $1000+.
The higher you go the more interaction you need to sell the product.
Proudest Entrepreneurial Moment – 28:56
Ramit launched a course about a year and a half ago and despite the team thinking it was good, it under performed with the public. People were refunding within 1 hour which never happens with his courses which made them put the course on hold and Ramit put together a team to find out what went wrong. While doing their inquiries they found out that there were very subtle things that the research team did not expect that caused such a response. So they spent 2 – 3 weeks fixing the product based on what they learnt and relaunched it to a new group and the numbers skyrocket. The thing that he is proudest about is that they took a failing product and invested the time to resolve the problems and put it back out to the public and received successful results.
I want students for life – 32:17
He doesn’t want a one time relationship with his customers, he wants a life long relationship where he can provide for that customer not only in a financial way but in any aspect in their life they may have problems. When he changed his mindset to wanting to be their ally for the next 40years, it changed the way he interacted with them. If you join one of his courses you get a call personally from a real person, if you want a reminder they have someone text you. His aim to dig deeper and provide support on a personal level with all his members.
What was holding you back from becoming an Entrepreneur? – 36:22
He was offered a job at Google and accepted it.
Whats the best advice you’ve ever received – 36:52
A year from now you’re gonna be a year older, what you gonna do? – his parents, This advice is means you need to take action on the tasks you want to accomplish so that when that year reaches you would have much to look back on than just wondering what could have been.
One of his personal habits that contributes to his success – 37:39
If it doesn’t exist on his calendar it doesn’t exist at all, for example the gym is on his calendar so for the past 3 years he only has missed the gym about 3 times. He puts time for writing, he puts time phone calls and he puts time to go out with friends.
His favorite book – 39:01
Getting Everything You Can Out of All You’ve Got by Jay Abraham – It’s a book on Business Strategy, putting your clients first and how you can serve them more than thinking about earning money.
Final question in the lightning round – 41:44
His advice is to write passionate emails to people who you admire for example I loved what you wrote about in wired, I especially liked when you mentioned x but I think you forgot about y and here are some interesting points for your next article. This is to impress them and build a relationship, when you have built enough of relationship invite them out to coffee or lunch. Over time they would become allies, mentors, advisers and they would introduce you to their network.
Parting words of Advice – 43:24
Dont think of yourself as the kind of person who can do something. It takes a lot of hard work, a lot of luck and a lot of time but its possible, also be sure to ignore the noise and negativity.
Nice podcast, Ramit was entertaining also he was able to give good advice. How he prefers to work the hard long way and get disproportionary results than doing the easy short way and getting ok results. How he has a failure tab in his email inbox and not failing enough is a bad sign 5 to 10 is a month. Learning to differentiate the critics into two categories the ones who are negative and the ones who care, also the price of a product will never matter to the ones who value what it will do for them in the long run over the money. Targeting the right people for your product and service and tactics for building your brand. Growing relationships with people you admire through email and coffee. Finally dont downplay yourself you are capable of anything it just takes time, luck and hard work along with a positive mindset. Thanks for reading, see you tomorrow.