Mega Partnering

JayAbrahamsRelationalCapitalSeminarwithJTFoxx

I'm going to tell you why I'm here, what I hope to do, what's cool about it, what's
flawedaboutit,whatyoushouldgetoutofit,andalittleinsightonme.

Idon'tdoalotofseminarsanymore.Idon'tdoalotofpublicspeaking.Mostofmylife
isnowworkingwithoperatingbusinesses.It'swhatIusedtodo.Idoitagainnow.

Inthecourseofmylifework(thosethatknowaboutme,thosethatdon't)I'veworked
withabout465industriesandI'vehadthegoodfortuneofdoingitaroundtheworldand
being able to look at a myriad of different ways of being strategic: business models,
marketing, selling, value adding, preemptiveness, preeminence, etc., etc., etc. But its
probablyI don't know$3 billion or $4 billion of the transactions. I've helped business,
partners,clientseffecthavebeenthroughveryinventivealliances,jointventures,allkinds
ofwaysthattookethicaladvantageofsomebody'sassets,access,brandcurrency,etc.

I've never been a good daytoday manager. I'm basically a marketing and strategic
savant.Iwasinterviewedbythepressmanyyearsago,andtheysaid,"What'syourstrategy
of business?" I said, "There's two different conflicting ones, but they integrate. One is I'd
liketohavetherightstoeverythingintheworldandfigureoutwhattodowiththemlater.
Andthensecondly,mymanagementstyleistofindsomeothercompanythathashundreds
or thousands of employees, payroll, overhead, structure, good will, and needs more cash
flowtoputthroughitandmakethemmyprofitpartner."So,theevolutionofwhatyou're
abouttoexperienceneedstobesetupforyouthenI'lljustgetintoit.

Myrealloveisbeingonthefrontlinesofcapitalism.I'mveryimpressedwithanybody
whocanteachothers,andI'vedoneitforthirtyyears.Butifyoureallyhaveitinyourblood
todoit,it'smorefun, soIbasicallydothatallthetime.ButJ.T.'sbeentryingtofindthe
magicresonatingpoint,andhehitonitacoupleofmonthsago.BecauseI'vebeendoing
workwithlotsofotherpeopleandputtingallkindsofdealstogether,andI'vebeensortof
sharingdialoguewithhim.

J.T. said, "What if we created a business to help other people with business and
products,tryingtomakeconnectionswithotherbusinesses,influences,distribution,media;
wheretheycouldleverageuptheotherperson'sresources,sales,anddistribution?"AndI
likedthatalot.I'vedonetransactionslikethatallmylife,andI'vetaughtittoclientsallmy
life,butI'veneverreallytriedtocreateanentity.

Isaid,"Okay.Ifwe'regoingtodothat,we'vegottoarticulatethepremise,firstofall,in
ameaningfulenoughwaytowhereitmakessensetootherssoitmakessensetous."So,
youareallhopefullythebeneficialguineapigs.You'regoingtolistenandwatchsomestuff,
andI'mgoingtotrytoexplainit.Andwhereappropriate,I'lltellastory.
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Howmanyofyouareincommercialretail/wholesaletypebusinesses,andrealestateis
asecondaryactivity?Okay,aboutathirdofyou.Howmanyisrealestateaprimaryactivity?
Howmanythatsayit'saprimaryactivityactuallyhaveajob,aswell?Okay,cool.

WhatI'mgoingtodoisexplainamacroconcept.Then,IhopeIblowyourmindwithall
thederivativewaysthatconceptcouldbeharnessed,monetized,minedandmaximizedby
somebody, whether you own a business, you work for the business, you want to put
yourselfinthetollposition,oryouwanttobasicallymakeajointventurewithsomebody.
I'mgoingtotrytohaveoutofbodycommentaries,occasionally,whereIdemonstratethe
different implications. I'm going to preface by saying two things. This may or may not be
readyforprimetimebecauseit'sthefirsttimeI'veeverpresentedthisinthisform.

This doesn't mean I haven't done power partnering and strategic alliances, joint
venturing and endorsement, and referral (I mean, I teach that all day long) but I'm
integratingitinadifferentway.So,theconceptisleveragingotherbusinesses'resources
thatistheconcept.

Mytakeonthisisitreallyistheultimatebusinessmaximizingandmultiplyingsuccess
strategyanybodycouldmake.

Theworkingpurposeishowtouserelationalcapitalmaximizingstrategiestomultiply
thesuccess,theprofitabilityofanybusinessyourun,anyproductorserviceyoucurrently
or ever own, sell, develop, get introduced to, gain control ofand you've got to think in
terms of everything I'm going to talk about, about a twoway value. Because everything I
explain, that can be capitalized on through other people's businesses, distribution,
association, media, can have the reverse effect. If you've got a big enough company with
enoughdistribution,enoughbrandcurrency,youcandotheoppositeandbringitthrough
yours.

Its just a declaratory statement, but it's true. Whether you know it or not, the world's
changed.Nothingworksaswell.Advertisinginthecoldmarketishard.Gettingcredibilityis
hard. Generating prospects, converting prospects, building trustit's hard. It takes a long
time.Salespeopledon'tgetasmanyappointments,closes,etc.

So, your probability is down dramatically. The probability of an ad working, the

probabilityofasalesmansellingrightaway,theprobabilityofanewproductbeingviableto
the marketprobably anything you try to do on your own, as an island, is harder and
harder.Thesuccessislessandless;thus,theriskcostandopportunitycost,isgoingtobe
higher,andtheviabilityandprobabilitylower.

Youplayawonderfullybettergameplanthananyoneelse.Youcangaininfinitelymore
marketing,selling,distribution,andbuyerpower.Thisissortofjustalitanyofwhatthisis
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goingtogiveyouifyouuserelationalcapitalmaximizingleverage.AndI'vegottoexplainit.
Idon'tlikethephrase,butIdon'thaveabetteronerightnow.

When J.T. talks about it, and if you look at all the definitions in the book, what
everyone'ssayingrelationalcapitalis,istherelationshipacompanyhaswiththeirvendors,
or with their buyers, or with their team members, or with their community. I'm saying
maximizingandleveragingisyourabilitytoethicallytakefullesteconomicadvantageofall
thoserelationshipsforthebenefitofanotherproduct,company,service,ethicalagenda
andethosalwaysplaysintoit.So,I'mgoingtoberuggedherebecauseIhaven'tlookedat
thisslide,andIdon'tlikeit,butI'llcleanitup.

So,ifyoucanlearnhowtoleverageoffofotherbusinesses,otherorganizations,other
entities,othermedias'relationshipwiththeirreaders,theirmembers,theirmarkets,their
distributorsthe world is your oyster. You can play a better game. You can gain more
marketing,selling,distributionpower.YoucanhaveHerculeanleveragestrength.Youcan
countervirtuallyanynegativeissuethatassailsyou.Gotnocredibility,gotnomoney,got
no sales force, got no advertising budget, got no R&D, got no storage, and got no
manufacturingcapacity,equipment.Noneofthoseareproblemswhenyouunderstandthis,
soyouroddsofwinning,andwinningreallybig,increasebyordersofmagnitude.

Okay.AndI'mjustgoingtogothroughalitanyofreasonswhyIwantyoutorecognize
theinherent,combined,multifacetedpower,andtheeconomicimpact,andwhat'sgoingto
comeaftertheselittlebullets.

Thisisthesecretofgettingpeopletobuyfromyoufromalmostaninfinitenumberof
sources.Andanybodythatknowsmybodyofworkknowsthatmybiggestfrustrationwith
most businesses is all their revenue, all their success is dependent on one source, one
sellingapproach,andonemarket.Well,thisgivesyounearinfiniteaccesstoallthemarkets
youeverwanttopenetrate.

Number two. The mistake that costs most startups everything (most small and
mediumsized businesses all their upside potential) is first of all, they try to do it
themselves.Second,theyhaveaselfdeludedrealitywheretheydon'thaveenoughcapital,
enoughresources,andtheybelievethey'relimited.Startupstrytodoitallwithabeautiful
idea or a crazy idea. A little capital. None of this is necessary if you use these relational
capitalmaximizinglevers.

Any entrepreneur, CEO, or P&L oriented business manager who doesn't have all the
capital,whodoesn'thavealltheresources,whodoesn'thavealltheexpertise,whodoesn't
have all the skill sets they need heretoforeyou eitherwould hope and pray, or wish, or
say,"Okay.Whenwemakesomemoremoney,we'llreinvestitininfrastructure.Whenwe
makesomemoremoney,we'llbuysomeequipment.Whenwemakesomemoremoney,
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we'llhiresalespeople.Whenwemakesomemoremoney,orwegetaninvestor,orIhitthe
lottery,we'llcreateanewproduct."

Well,nowwhatI'vejustsaidisyoudon'thavetoworryaboutthat.You'vealwayshad,
you have today, you have any time in the future, the infinite capacity to acquire any
resource,anyskillset,anythingthatcapitalwouldbuyaslongasyouunderstandhowto
makethepropositiontowhoeverhasit,andthatgetsveryexciting.

Now,ifyou'reupagainstawalltryingtofigureoutnewwaystogrowyourbusiness
because those of you who raised your hand are in businessany of you may struggle
because you get stuck? You can't really get past a certain point. Your ads aren't working.
Yoursalesapproachismarginal.You'vebeenmarginalized,commoditizedbyotherpeople
doingthesamethingoffline,online,inyourmarket,outside.Doesthatrelatetoanybody?

Well, now it's not a problem, because you can have advantage. You can have
preemptiveadvantage,literallyinaheartbeat,when youunderstandhowtodothis.And
I'mdoingnothingrightnowmorethantryingtogetyoutoappreciatethebenefit,because
ifyoudon'tunderstandthebenefit,youwon'tgetjustgiddy,excited,orintoxicatedonthe
poweroftheprocesses.

Youcanwintonsmorebuyers,influencemonumentallymorepeople,andfavoryour
company, product, or service over everyone else. Some examples. And I'm going to date
myself;I'vebeenaroundalongtime.

Firstexample,wewentinthirteenmonthsfrom$20,000to$13millionandfrom200
buyersto500,000,withoutspendingadimeusingaderivativeofwhatI'mgoingtotellyou.
The business got so successful; we sold it for $80 million to a public pharmaceutical
company.

Anothertime,Itookaservicecompanywhowasdoing$300,000,andtwoyearslater,
we had aggregated $2 billion. And we didn't risk a dime, because we utilized everybody
else's infrastructure, everybody else's distribution channel, everybody else's good will,
everybody else's brand currency. And I'll try to be specific, but I want to see how this
resonatestoday,andwe'reprobablygoingtorepeatitagaintomorrow,soifIdontdoit
perfectly,I'lltrytodoitdifferentlytomorrow.

You can stop competing with everyone else in your market, and start lapping and
leaping.Thekeytoeverythingisthereisadelusionalfallacyinourinherentbeliefsystem.
Thatwebelieveforsomedeludingintoxicatedreason.Idon'tknowwhy.It'sananalbelief.
Nodisrespectifyouhaveharboredit,butyouthinkthatyouarerelegatedtohavetogrow
in slow, incremental, linear steps. And you've got to do it alone. And you've got to build

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yourbrandbyyourself.Andyou'vegottoreinvest.Andyouhavenoalternative.Andthat's
aboutascrazyascanbe.

I'dliketosharewithyouwhatIcallthe"IndianaJonesSchoolofBusiness."Theyoung
onesheremaynotrememberthefirstIndianaJones,butthosemyageorolderwill.

So,IndianaJones.Rememberwhenhe'sbeingchaseddownthebazaarbythebadguys
withtheturbans,andhe'stryingtoescape?Hejumpsintoanalley,andhe'srunning.Andit
turnsouttobeadeadendalley,andthere'sthisgodawfullytallgiant.Thegiant'sspinning
thesetwoswords.ItlookslikeIndi'sagonerandmaybethegiantisgoingtolopoffIndi's
head.Andforonepensivemomentwethink,Gosh!It'sonlytwentyminutesinthemovie.
Is it over already? Then after this moment of eerie, scary contemplation, Indi basically
says,"Screwit,"andpullsouthisgunandshootshim.

Well,youcanchangethewayyouplaybusiness,ifyouplaybusiness.Youcanchange
thewayyoubuildabusinessifyou'regoingtostartabusiness.Youcanchangethewayyou
relatetoyouremployer,evenifrightnowyou'resubordinateoryou'vebeenmarginalized
to being just another whatever. Your role is when you grasp the power of the
methodologieswe'regoingtotalkabout.

The biggest mistake that most people make in building businesses and trying to be
competitiveedgeisfirstofall,theydon'thaveanadvantage.Imean,Ithinkthatit'sdumb
toplayanygameonanequalsettingifyoucanethicallyandlegallyandhonorablyplayit
and control all the advantages, don't you? So why do people do it? What's a great
advantage?

Well,letmetellyouwhataterribleadvantageis.Aterribleadvantageissaying,"Oh,
boy!I'mgoingtostartabusinessfromscratch.Oh,boy!I'mgoingtotakeallmylifesavings.
Oh,boy!I'mgoingtouseitall.I'mgoingtoputitall,investitinafacilityandmaybehirea
salespersonandtrytofigureoutasalesapproach.Andoh,boy!I'mgoingtotrytopayall
that I've got left, or go on my credit and get an advertisement. Oh, boy! I'm going to
negotiatetheworstratepossiblewiththemagazineornewspaper.Andoh,boy!I'mgoing
torunanadthatprobablydoesn'twork.Andoh,boy!I'mgoingtobefrustratedandscratch
myhead.But,I'manentrepreneur.

Whenthesametimeandeffort(andalmostnoneofthatcapital)couldgotoabunchof
different companies that have been in business for ten, twenty, thirty, fifty, a hundred
years, they could have already gained the trust of the market, have powerful influence,
havedistribution,havesalespeople,emaillists,mailinglists,distributionlists,distributors,
retailers. And you can generate strategic alliances with them which, first of all, already
guaranteeprovidingalltheresourcesyoudon'thave.Second,inherentlymakethemarket

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many times more receptive, because it's coming through somebody they already trust.
Third,itgivesyouleveragegaloreontheupside.

I mean, why do anything dumb if the same effort or less, the same time or less,
infinitelylessrisk,capital,cangetyoumanytimesthesuccess,overnight,andyoucandoit
and compensate any business weakness, resource gap, or skill set void you have? Am I
beingtooabstract?I'mgoingtogetdeeper,butI'mtryingtogetyouexcited,andthenI'll
trytotranslateit.I'mstillonthebullets.Ihaven'tevengottenintothemethodology.

Most people work their asses off. There's no argument that you don't work hard.
There'snoargumentthatmosteverybodyinbusinessisn'tpassionate.There'snoargument
thatyoudon'twanttoaddvalue.Bytheway,I'maposterboyforadultattentiondeficit,so
bearwithme.IwanttoamendsomethingthatJ.T.said,becauseIwasthinkingaboutiton
theplane,andifIdon'tspititout,I'llforgetit.

In life, we are rewarded mostly for two things, and the third thing is the vehicle that
gives us the reward. The things we are rewarded for are the quality, complexity, and
consistency of problems we solve for others, or the quality of opportunities we make
possibleforothers.

Now,theproblemwiththatismostpeopledon'tknowtheyhavetheproblems.Most
people don't know they want theopportunities. So, wehave to become very adroit, very
masterfulatbeingabletoidentify,articulate,demonstrate,verbalize,andcommunicateto
peoplethatweseewhattheywantinadeeper,richer,moretangiblewaythantheyeven
do, and that we can verbalize what it is, and it's the solution to this problem, and the
converseistheachievementofthisopportunity.

Thekeytoaddingvalue(whichisthebridgethatmakesthatpossible)isthataprospect
seesthatyounotonlyseetheirneedinadeeperwaythantheydo,youseetheirdesired
positive outcome with clearer clarity than they do. You believe it's real, and you are,
perhaps, the only person, entity, product or service that has the capacity or capability of
makingitpossible.

Andyourabilitytomakeitpossible(eitherbyfacilitatingit,ifyou'retransactionalorby
explainingit,ifyou'reatrainerorateacher)isthevalueadded.Doesthatmakesense?So,
problemsolving,opportunityfulfillment,thebridge,isreallythevalueyouadd.Ithasalot
todowiththis,butit'stotallytangential.ButIthought,Whatthehell.I'llshareitanyhow.

So,whatIwasgoingtosaywasIhaveabeliefsystem,andreallyit'saderivative.Some
ofyouwhohavebeeninfluencedbylotsofbusinessbooksknowaguythatIknow,Michael
Gerber.AndMichaelGerberhasabookcalledTheEMyth,andit'sagoodbook.Butit'sgot
aphrasethathasresonatedwitheverybody.Hesays,"Stopworkinginthebusiness.Start
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workingonthebusiness."Everyonegoes,"Iwanttostopworkinginthebusiness.Iwantto
startworkingonit."Greatphrase.Notonepersonknowswhatthehellitmeans,butit'sa
greatmantra.

I'mgoingtogiveyouanotherphrasewhichyoucanstartarticulating,butyou'llknow
whatitmeansbecauseafterIgiveyouthesebullets,I'mgoingtogiveyousubstanceand
content,andI'mgoingtogiveyoudirectives,andI'mgoingtogiveyouactionableideas.But
the phrases you want to replace are, "Stop working harder for your business. Figure out
howtogetyourbusinesstoworkharderforyou."Andtherearetworeasons.

One. There's five or six (and this isn't in my presentation. I'm going back to old Jay
Abrahamseminars)butthere'sfiveorsixformsofwealthcreation.Oneiscurrentincome.
Secondisfutureincome.Thirdispsychicincome.Forthcouldbe(Imightbeoutoftheway).
It'sthefulfillmentyougetbyknowingyou'reincontrol.It'snotcontrollingyou.

Thefourthoneisasset,likethewealthyou'recreating.AndifyoudowhatI'mgoingto
teach you today, you will create distribution channels that are recurring income streams
thatyoucanuseforyourproduct,service,andcompanyforeverbutyoucanalsouseitto
put all kinds of other products and services through it, and it's an asset. It's a revenue
generating mechanism that can be quantified. It can be monetized. It can be sold or
borrowedagainst.Youcansellequityinit.It'sgotallkindsofcoolpossibilities.

And again, I'm not trying to be particularly lucid. I'm trying to be a big (right now)
umbrella. What I try to do whenever I'm introducing a new concept is not worry terribly
aboutyouunderstandingeveryfacetbutIwanttohauntyoumercilesslyandruthlesslyin
apositiveway,fortherestofyourlife,tothinkabouthowtodoitbecausemasteringthe
transactional process is important, but understanding the macro dynamic, right now, is
muchmorecriticalforyou.Makesense?

So, if you want to hit the ball out of the park, again I'm going to try to tell you
something. I'm going to give you an example. I went into the seminar business so many
years ago, I don't remember. All of my friends were selling $495 seminars. They were
runningadsinthemagazines,andtheywererunningadsinthenewspaper,andtheywould
have people do previews. You've all probably seen previews where you get a 90minute
titillationandthentheytrytosellyousomething.AndIsaid,"Screwallthat."

IwenttoallthepeopleI'deverhelped.Iwenttoeveryinvestmentnewsletter.Iwent
to Tony Robbins. I went to Success magazine, Entrepreneur magazine, and a bunch of
peopleI'dhelped.AndIbasicallyhadthemsendout(thiswasbeforetheInternet)aletter,
or had them create a separate, internal, supplemental newsletter telling everybody who
readtheirnewsletterseverybodywhowasoneoftheirclients,everybodywhowasoneof
theirstudentsthatifyou'reanentrepreneuroreverwanttobe,ifyou'reaprofessionalin
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business,ifyouareaP&LorientedmanagerandyouwantyourP&Ltobebigger,andyou
wantyoursalestoincrease,andyourprofitstomultiply,there'sonepersonwhocandoit.
He'smyfriend,andhe'sdoneitforme,andifyoudon'ttakeadvantage,prayhedoesn'tdo
itforyourcompetitor.

Wesold$15,000seminars,andwesold$250million.ThemaximumIeverhadatrisk
overthethreeorfouryearswediditbigtimewas$300,000,andthatwasonlybecauseI
funded,inthebeginning,acoupleofmailings.ButIcouldhavehadthreegrand,butIdid
$250millionandstopped,really,becauseIgotbored.Idon'thaveanyfriendsthatdidthat,
evenwithallthemoneytheyspent.Thatisthepower.

My biggest clientback in the old days, I had five clients in the investment services
business. Most people would run an ad in the Wall Street Journal or they'd run radio
commercials.Ijustsaid,"Screwthatstuff."Iwenttoeveryfinancialadvisoryletter.Iwent
toeverybodywhohadeverbeenanauthorofabookonanyspecificformofinvestment
thateverrelatedtomyclients'interests,andwemadejointventures.Wemadestrategic
alliances.Wemadeendorsementdeals.

AndImadeoneperson$25millionthefirstyear.Imadeanotherperson$33million.I
mademyself,onjustmyoverride,$4millionayearandwedidn'triskapenny.That'sthe
power of not looking inside at what I can do as an island, but instead saying, how I can
leverage,allthegoodwill,alltheassets,allthedistribution,allthecompoundOkay,I'm
goingtogiveyouadifferenttake.Isn'tthisfun?

So, you guys are here for partnering, but all of you have, I guess, some prejudice
towards understanding real estate, return on investment, yield, capital, and all that stuff.
So,ifIsaidtoyou,Notonlyisitpossible,butitsprobablethateveryoneofyou,nomatter
whatyoudonow(nomatterifyoudoityourself,don'tdoityourself,doitforothers,don't
have any product or service) could, in the next year, gain functional control over at least
many millions (probably many tens of millions, conceivably hundreds of millions and
potentiallybillions)ofdollarsworthoftangible,intangibleassets,goodwill,brandcurrency,
without risking a dimeand you could leverage off of it. And even if I only gave you a
pathetic,crappy(excusemyvulgarity)leverageof3or4or5percentyield,itwouldstillbe
prettygood,wouldn'tit?

Well, that's what happens when you use leveraging techniques to take advantage of
other businesses. Ethical advantage. Strategic advantage. Other businesses' distribution.
Otherbusinesses'buyers.Otherbusinesses'salesforce.Otherbusinesses'goodwill.Other
businesses' delivery. Other businesses' distributors. Other businesses' brand currency. Do
youunderstandthat?

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Exceptinrealestate,unlessyou'reextremelybrilliant(Iknowthat'swhatpartneringis
all about) but in the partnering, it's not like musical chairsbut ultimately somebody is
puttingupthemoney.You'vegottoeitherbeverycompellingandyou'vegottogetherto
putupthemoney,oryou'vegottogetthebanktoputupthemoney,oryou'vegottogeta
group of investors and a syndicate to put up the money, but somebody's holding the
money.

With what I'm teaching, you never put up the money. It's already been put up. Its
cumulativecompound andyougettoaccess.Yougettoleverageoff.Yougetafirstclass
ride without paying for the ticket. That's sort of interesting, isn't it? Am I frustrating?
Confusing?Intriguing?Alloftheabove?Noneoftheabove?

AsIsaid,youguysareguineapigs.I'mjustplayingwithhowtoexpressthis,because
thisisthegenesisofabusiness.Therewillprobablybeatrainingelement,onlybecausethe
majorityofpeoplearen'treallybigenoughtobetransactionalclients.ButthegamethatI
play,andI wanttoplay,istobasicallygetcontrolofpeople'sbusinesses,controloftheir
assets, control of theirproducts, make some money just to keep them in the game as an
advisor,andalsotakethepiecesofthedealandbuildallkindsofassetstreams.

It's sort of like Mark McCormack figured out (I can't remember the name of his
businessinCleveland).Whatisit?He'sdeadnow,buthewasthefirstpersonthatfigured
out that somebody like (it was either Arnold Palmer or Jack Nicklaus) they could lend his
namebytheway,that'sanotherformofrelationalcapitalleveragetheycouldlendhis
name to products, services, and developments. It would add sales viability, but also they
couldgetapieceofthedeal,anditturnedintoamultibilliondollarprocessandcompany.

Andyou'reontheprecipice,today,inlearningoratleastindiscoveringorgrasping
something very powerful that can be applied about any way you want, for anyone you
want,anytimeyouwant.

Sometime(I'mprobablynotgoingtodoittoday)butIwasgoingtolistalltheproblems
people have in business, and show you exactly how relational capital leveraging and
maximizingovercomesit,soIjustputithereforthat.Ialreadytalkedabouthowyoucan
gain control of $100 million, or a billion, and I can show you exactly. Let me give you an
example.

MyexampleaboutwhenIdidtheseminarbusiness.OneofthepeoplethatIusedas
my relational capital leverage was Tony Robbins. Now again, I've got to go back in time
becausetheworldkeepschanging.Someofyou youngpeoplewon'tknowthis.I'm sixty
three.Theonesthatarebetweenfortyandmyagewill.So,startintheage.

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There'sthiscompanycalledGuthyRenker.GuthyRenkerit'shilarious.Theycameto
mewhentheyweredoing$10millionandIwasdoing$20million,andtheywantedmeto
getinvolved,andIdidn'twantto.AndnowIthinktheyweredoing$2billion.Idon'tknow
iftheystillare.Butthey'retwoguys,GregRenkerandBillGuthy.Veryniceguys.

So,theymetthisguy,TonyRobbins,andtheythought,Wow!He'sgotthedynamism,
and the personality. So they put up their money, and they ran infomercials for Tony
Robbins.Andalltold,theyprobablyspentacoupleofhundredmilliondollars.

Now,they'reputtingthemoneyup.Tonybecamethepartner.GuthyRenkerputsthe
money up. Tony gets all the exposure for nothing. They sell Power Talk, Personal Power,
whateverhe'sselling.Tonygetshalftheprofit.Guthygetshalftheprofit.ButTonygotthe
name.Hegotthebuyeralreadypredisposedtohim,whoalreadypaidfixedmoneytostart
arelationship,andTonygottheentirebackendwithoutriskinganything.Itgetsbetter.

So, now, Tony gets a name. GuthyRenker is spending hundreds of millions of dollars
gettingallthisgoodwill.Tonygetsaname.TonygetshalftheprofitandTonygetsallthe
resales.ThoseofyouthathaveevergonetoTonytheUPWsandtheDateswithDestiny
andtheMasteriesandallthatstuffhe'smakingalotofmoney.

Now.IhelpTony.Tonymakesalotofmoneyfromme.TonyseesthatIcandoit.So,I
gotoTony,andIsay,"Well,Tony.You'vegotallthesepeoplethatwentthroughPersonal
Power.You'vegotallthesepeoplethatwentthroughUPW.You'vegotallthesepeoplethat
went through Date With Destiny. You've got all these people that went through Mastery.
You'vegotnothingelsetosellthem.So,nowit'sbasicallyastaticassetthatyou'vealready,
theoreticallysqueezedeverythingoutof.

"Howaboutifnomoneyoutofyourpocket,nolostopportunitycosthowaboutif
yousendalettertothemandsay,'Ifyou'reinbusiness,ifyou'reaprofessional,ifyou'rea
P&L oriented manager and you want to grow your profit, your success, your stock value,
youranything,youspendthreetofivedayswithmyadvisor,JayAbraham?'"

Isaid, "I'llsharerevenuewithyou,and I'lldoallthework.I'llcreatethearticulation.

You have total control over it. And we'll send it out only to the people that have been
througheverything.Onlythepeoplethathavenomoreworkforyou."Notaharddeal,is
it?ButIknewthatthosewerethetopofthepyramid.

Tomakealongstoryshort,thefirsttimewedidit,Imade$9million.Now,that'sgood,
butIgota$9millionreturnoffofGuthyRenker's$200millionor$300millioninvestment.
TonyRobbins'investmentofflyingallovertheworlddoinghis[thumpschest]allthatstuff
for eighteen hours, and not peeing for five days, and showing people the power of
concentration.
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AndallthatgoodwillIgottoleverageoffof,andmydownsidewasIfundedamailing
list(butIwassmartenoughtoknowthatbeforeIfundedthewholelist,I'dfundacoupleof
thousandpieces)andifitdidn'twork,Iwouldhavebeenout$2,000.Butitdidwork,soI
made$9million.DoesthatgiveyouaninsightintowhatI'mtalkingabout?[Applause]

My gift is I've been blessed enough that I've been in so many environments that I
understand leverage inside and outside. Cash leverage. Intangible leverage. Leverage you
can't believe. And today I'm trying to give you a little introduction. I haven't even gotten
started.I'mjustgivingyouthebullets.I'vegotseventyslidesifwegettothem.[Laughter]

So, we have identified (and I'll go through some of them quickly today) fortythree
differentwaysthatyoucanleverageoffofanybusiness.Letssayyou'restartingabusiness
and you don't have the money to even fund an office and buy the equipment. You go to
somebodywho'sgottoomuch,andyoumakeadealwiththem.Itcanbeanequitydeal.It
can be giving them a share of the revenue for the first year. You give them a share of
somethingelse.Youcanaskthemtogiveyouadeferredrentalnote.Youpayonlyifyou're
successful. It's like an infinite number of things, and we will get to those, but there are
fortythreeofthose.

I've identified twelve symptoms of what I call "performance implosion." That's when
your business isn't growing. You're stuck. That's when you're spending more and more
time, and your margins are going lower and lower. And you're trying more and more ads
thataren'tworking.Andyou'rethrowingmoremoneyagainstthewall,andgettinglessand
less.AndIbetthatafewofthosethatresonateswithrightnow,doesn'tit?

As J.T. was saying, when I met him, I saidand I'm saying this very clinically, not
arrogantlywhen I used to be in the training and the seminar business, we would sell
$15,000 [to] $25,000 programs around the world. I know how to do that, and I was very
good at it. But it's not a really sustainable business. It's basically an elongated promotion
whereyoumakealotofordinaryincome.

AndwhenIwastalkingtohisfriend,Isaid,"Youguysaren'tinbusiness.You'reabunch
of promoters. You're a bunch of promoters that, sooner or later, if you don't take your
brandcurrencyandyourcashflowandputitintosomethingsustainingandrepetitiveand
perpetual, you'll be a flash in the pan." The reason I don't do many seminars anymore is
thatIgotmybrandstatureuptothepointthatIcangethalfinterestinabusinessforno
cashinvestment.

Forexample,we'rejustlaunchingfoursocialmediamagazinestothemarketplace,and
I'vegotequityinallofthemforputtingnothingupbuttherelationalcapital.Ithinkwe're
doinganentrepreneurialchannelonSiriusSatellite,andI'llownhalfofitjustforbringingto
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thetablemybrandcurrency,myfollowing(whocouldbesubscribers)andmyrelationships
withtheStephenCoveysandtheTonyRobbinsandtheDaymondJohns.We'vegotRussell
Simmonsandthingslikethat.Well,thatstuffispowerfulcatalyticelementsthatifyoucan
understandhowtoharness(andyoudon'thavetostartuphere)butit'sinfinitelypowerful.
So,it'swhattodowhenyou'veexhaustedalltheotherbusinessgrowthsuccessoptions.

I mean, you can go to every seminar you want, and I can tell you how to sell better.
Therearealotofwaystosellbetter.Icantellyouhowtomarketbetter.Lotsofthem.I
onlyknowprobably500.Icantellyouhowtomakeyouradbetter.Icantellyouhowto
leadgeneratebetter,convertbetter,monetizebetter.Butthat'speanuts.That'slike,"Okay,
youwanttoplayinthesandboxordoyouwanttoownpropertyfor500or1,000feetin
Malibu?"

That's the difference. And if you understand that the key to everything is gaining
control, access, and assetsbut not owning it. You don't have to own it. All you have to
own is the power that they represent, the capital compounded that's been invested in
them.Theaccesstheygiveyou.Theinfluencetheymakeavailableandthecredibilitythey
instantlycreateforyou.

Youwanttogetfansravingeverywhere?Well,guesswhat.Youcantelleveryonehow
greatyouare.Or,ifyoutrustaJ.T.Foxx,andhetellsyouhowgreatyouare,guesswhat?
The room stands up and gives you an ovation. Isn't that interesting? I didn't tell you how
greatIwas.Youdon'tevenknowifI'mgreat.Butyouwerecaughtupinthewholeprocess.
That psychological phenomenon is an exact demonstration of what I'm talking about. Do
youunderstand?Anditcanbedoneininformation.We'redoingitwithbigcorporations.
We'redoingitintangiblefieldsandintangiblefields.

Youcandoit,too,andI'lltrytogetmoregranular.Andifnottoday,I'mgoingtotrya
differentversionofthistomorrow,becauseIdidn'trealizethatyouweren'tallgoingtobe
inthisroom.AndI'lltakequestionsandstuff,butI'mjusttryingtohauntyouprovocatively
withthepossibility.

Therearedifferentkindsofmaximizercandidates.Oneisacompanythatisnationalor
international,anddoesn'tbegintoexploiteverythingthey'vegot.Maybeyou'vegotoneor
twoproductsandyoudon'tdoeverythingwithyourbrand,yourad,yoursalesforce,your
distribution.Theotherisalimitedcompanythatwantstobebigger.Theotherisacompany
that'sgotaproductorservicethatcouldberepurposedlotsofplacesandonandonand
on. But there's all these different scenarios that if I were doing this in its full majesty, I
would,butI'mjuststillinthebulletstage,soIdon'twanttospendalotoftime.It'show
youcanaddten,ahundredthousand,andamilliondollarsmoreamonth.

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And again, anybody who knows me knows two things. One, my hype is real. It's very
unbelievable that I got started when I was eighteen. I've been married three times. I've
beenaroundtheworldprobablyahundredtimes,andIreallyhavedoneallthisstuff.And
when you've done all this stuff on the front lines of capitalism, you have a context of
understandingwhichisscary.So,whenIsayabusinesscanadd$10,000or$100,000or$1
milliondollarsamonthrecurring,it'snotB.S.hypethatyou'dseeonasiteontheInternet.

Now, you're not going to do it in your underwear watching reruns of Oprah in the
afternoon,andspendingaminuteaweekdoingit,butyoucanaffirmativelydoitwithout
addingalotofrisk.Youcanaffirmativelydoitwithouthavingalotofreadycapital.Youcan
do it by understanding how to harness, mine and control what J.T. is calling relational
capital, and what I'm using right now (but it's a sloppy phrase [and] I want something
better)"relationalcapitalmaximizingleverage."Alotofwords,butaverycoolconcept.

Okay.So,Ibelievemostbusinessesarestagnant.MylastbookwascalledTheSticking
PointSolution.Thewholekeywasmostbusinessesarestuck,anddon'tevenknowit,and
they'restucklotsofdifferentways.Ithinktodaymostpeoplearestuck.

Now, I'm going to make a point, and I'm so sorry that I'm not organized, but I really
wasn't intent on being organized, because I didn't come here to bedazzle you with my
eloquentsilverytongue.Icameheretointroducethisconcept,andplayaroundwithit,and
giveittoyouinbenevolence,butactuallyworkitthroughformyownmind.So,you'rethe
recipientwhileI'mbasicallyplayingwithitmyself;but,I'mgoingtotellanotherstory.

A couple of years ago, a guy that I helped when he was first getting startedI don't
evenknowifhedoesalotanymorehisnameisBobAllen,andhewasinrealestatealot.I
don'tknowifheisanymore.Buthewasalwayscomingupwithsomeveryinteresting(not
necessarily cutting edge) but inventive concepts. He'd call and say, "Jay. I've got a new
concept. It's called "Cracking theMillionaireCode." And I'd say, "Okay." And he did some
nicethingsformewhenwestarted.

Hesaid,"Ineedyoutodosomethingtoreciprocate."Isaid,"Yeah,whatdoyouwant
me to do?" He said, "Would you mind, in two hours or less, telling people that have no
money,noproduct,noservice,nobusinessskill,nocapital,howtheycanmake$1million
legitimately in a year? Oh, yeah. With no risk?" And I said, "You're serious?" He goes,
"Yeah." I said, "Okay." And I did. I'm going to tell you what I told everyone, because it
relatestowhatI'mtalkingabouthere.

Ididaboutfortyfiveminutes.Ittookmefortyfiveminutestoexplainit.AndallIsaid
was,"Allyou'vegottodoisgotoGoogleandseeallthehottopics.Idon'tcarewhatthey
are.Weightloss.Moneymakingbusinessopportunity.Realestate.Doesn'tmatter.Don'tgo
tothefirsttenortwentylistings.ForyouSEOguys,I'mgoingtogivetheopposite.Goto
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pagetenorfifteen.Findallthepeoplewhohavecreatedonelopsidedpartofthepuzzle,
because there tends to be an infinitely larger number of people who are nonstrategic in
theworldthanoneswhoarestrategic.

"Therearetonsofpeoplethatwriteabookaboutsomethingandgetexcitedaboutthe
book because they went to somebody's seminar who tells them they're going to make a
trilliondollarswritingthebook.Thebookdoesn'tsell.Thebookisintheirbasement,orit's
in their computer, and they're exasperated. They've got a website, and they're trying to
stop.

"There'satonofpeoplewhoareconsultants,orseminargivers,ortrainerswhodon't
have a book. This is going to sound funny, but all you have to do is find the people who
havethebooksonthesubjectanddon'thavethebackend;orpeoplewhohavetheback
endonthesubjectanddon'thavethefrontend.Andyoudontbeamatchmaker.Youtake
controlofitandgivethembothasmallroyalty,andputthemtogether,andyoukeepthe
bigpartofthemiddle."

AndItaughtthatto300people,andIgavethembunchesofexamples,andoneperson
believed it. And there's an axiom in life (and it's pretty trite), but whatever you believe,
you'reright.Ifyoubelievethat'scrap,it'scrap.Ifyoubelieveitwillwork,itwillwork.One
womandidit,andmade$1.2 millionin sixandahalf months. And 299 peoplethoughtit
wascrazy,andtheydidn'tmakeadime.Butthat'sanexampleofwhatI'mtalkingabout.
Isn'tthatinteresting?Isn'tthisfun?

I always viewed myself as an ethical opportunist. I don't want to spend a lifetime if I

canspendaheartbeat.Idon'twanttospendamilliondollarsifIcantakeadvantageofa
milliondollarssomebodyelsehasspent,aslongasit'sethicalandhonorable.Idon'twant
tohavetoworktomanagepeopleifsomebodyelsehasgotabigproblem.They'vegot500
peoplethey'vegottomanage,andtheyneedmorecashflow.

So, I want to know where the leverage opportunity is in every situation, and then I
want to figure out how I can mine it by helping them solve a problem, or achieve an
opportunitythattheyneverrealizedtheyweretryingtoaccomplish.AndImayormaynot
getintothisdeeply,becauseIhavetodoasession,butI'vegotareallygoodtranscription
ofahotseatwedidonetimetoshowatelephoneserviceproviderhowtodothiswitha
bunchofassociations.AndifJ.T.remindsme,I'llhavesomebodyfinditandsendittohim.
Hecanputituponawebsiteforyouguys.Iwon'tsendittoyou,becauseIdon'tevenknow
whereitis,butyou'llremindmeandsomebodywillsendittoyou.

Some examples. You can get other businesses, organizations, associations, media,
influencers,orenterprisesalltosellyourproductorbrandtotheiraffinitygroups.I'veonly
donethisforalongtime,butI'llgiveyoutwoexamples.
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Sears started Allstate with one simple idea. Now, Sears today is a fragment of their
stature, but there was a time (those my age or older who know) it used to be highly
respected.Everyonewouldgothere.Andtheysaid,"Let'sstartaninsurancecompany."And
somebody said, "Hey! Let's send agents in the field knocking on doors and cold calling."
Somebodyelsesaid,"Whydothat?Whydon'twejuststickakioskrightinthemiddleofall
ourtraffic,andhavepeoplegivethemquotes,andjustletthelawofaveragesworkforus?"
Andtheybuiltamultibilliondollarcompanythatway.

There's a fascinating, fascinating story that I'll tell a couple of different ways. I'm
probablygoingtobeoutoforderbecausethere'saslideremindingmeofthislater,butit's
on my mind now. Years and years ago, there was a company that was in the business of
creatingaffinitygroupinsuranceprograms,andtheywerehavingtroublegettinggroupsto
buytheirpolicies.Andsomeverybrightpersonsaid,"Wow!Whydon'twejustcreateour
own group?" And so, they created AARP for one reason, to have a client who would buy
theirinsurance.Ican'trememberwhattheinsurancecompanyis,buttheyultimatelyhad
todivestofitbecausetheyhadbillionsandbillionsofdollars.

Thepointisifyoucanfindanorganizationthatalreadyhasdirectaccesstothesame
type, kind, generic profile of buyer you want, and that buyer trusts them, and that buyer
respects them, and that buyer will give them open access (which means that buyer is
infinitelymorefavorablydisposed,morepredisposedtowardsanythingofyoursthat,that
organization would say was worth trying) then that is such a great, powerful, basically
distribution opportunity for you. You have near infinite access to capital equipment.
Intellectualcapital.Highlyreceptivemarketsfornothing.Norisk.Noinvestment.

Let'ssee.I'mtryingtothinkofanevengreaterexamplethatwouldjustblowyourmind
ofsomethingveryinteresting.Well,there'sastoryI'mgoingtotelllater.Thestoryhasbeen
toldtendifferentways.OnewayissomebodywentuptoBaronRothschildinFranceand
wantedtoborrowmoney.TheotherstoryissomebodywentuptoBernardBaruch(those
ofyoumyageknowhewasafamousfinancier).Anotherversionis[somebody]wentupto
oneoftheKennedys.Itdoesn'tmatter.

Somebodygoesupandsays,"Iwanttoborrowmoney,"andtheysay,"Iwon'tlendyou
a dime, but I'll do something a hundred times more valuable." What they did was they
walkedarminarm,backandforth,fivetimesacrossthefloorofthestockexchange.They
said,"WhenIdothat,everyonewillloanyouorgiveyouallthemoneyyouwant."Thatis
the power of relational marketing leverage. You become regional, national, international
overnight.

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AnybodyhavetheircomputersortheiriPadswithyourightnow?Areyouonline?Put
in AbrahamRussia.com. You probably won't get a picture because I guess the graphics
don'twork.

IhavepartnershipsineightcountriesoftheformerSovietUnion.Ihavepartnershipsin
Israel. I have partnerships in Tokyo. I have partnerships in Beijing and Shanghai. I've had
partnershipsinAustralia.

Thedealistheyputupallthemoney.Theyputuptheirinfrastructure.Theyputupall
theirdistribution.Theyputupeverything.IbasicallyguidethemandIgethalftheprofits
andIownhalfoftheassets.That'sprettygood,isn'tit?Ialsogetallthedealflow,because
they'rejustsellingtraining,andtrainingtomeisminusculecomparedtoassets,accessand
equitiesinbusiness.Butit'snotthathardtodo.Youcantakeapersonwho'slocalandbe
regionalornational.Andyoucantakeabusiness,oryoucantakeanintangibleasset.Let
megiveyouanexample.

Let'ssaythatyouareaveryeffectivecosmeticsurgeonwhoworksinChicago,andthat
youhavereallygoodmarketingyouusein Chicago,butthat'stheonly placeyoumarket.
Andtherearetwoimplicationsaboutthat.Oneisyou'vegotgoodmarketing.Twoisyour
good marketing will wear out quickly, because all of the interlopers and rapscallion
competitorsaregoingtotrytoplagiarize,emulate,andmodelyouradvertising,right?So,
whenyou'redonewithit,it'sasunkenasset,isn'tit?Therefore,you'vegottocomeupwith
anotheroneorifit'sagoodad,goodmarketing,keeprunningit.

Butdoyouthinkthereareanyothercosmeticsurgeonsordermatologistsoranyother
GPs(becauseyoudon'thavetobeacosmeticsurgeon,obviously,todocosmeticsurgery)
outside of Chicago who might love to pay a royalty or a usage fee, or if it's ethical, case
sharing(Idon'tknowifitis)withsomeonewhohadmarketingthatcouldworkinSt.Louis
orKansasCityorToledoorClevelandorLosAngeles?I'vedonethatalldaylong.Iusedto
create renewal and subscription marketing for one newsletter, and make a share of the
profits,butI'dretainownership,andIwouldreuseitforfiftyotheronesandmakemillions
ofdollars.

TheconceptthatI'mtryingtointroduce(althoughnotnecessarilylinearandstructured
andintegrated)isunimaginablyrelevanttoeveryoneofyou,nomatterwhatyoudo.You
wanttohelpyouremployer?Youwanttoputyourwifeinbusiness?Youwanttoputafew
dollarsandgetcontrolofsomething?Youwanttodoajointventurewithsomebodyelse?
Youwanttobuyabusiness,butnotpayadimeforit?Orcreateanewprofitcenterfora
businessandownthatprofitcenterequallywiththebusinessbecauseyouunderstandhow
to monetize it using relational capital? It's sort of interesting, isn't it? I can't tell if you're
thinkingdeeplyornot.Okay,good.I'mjusttryingtoshowyouwhatyoucanget.

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Thinkaboutthis.Who'sgotareasonably(notahuge)butabusinesswithatleastover
a dozen employees? Raise your hand. How'd you like to be able to grow it infinitely? No
moreworriesaboutbenefits,insurance,retirement,litigation,personnel,anyofthatstuff,
andyetyougethalfofalltheupside.That'dbeprettyinteresting,wouldn'tit?

Justsoyouknowthisandbytheway,there'snotonethingthatItalkaboutIhaven't
done.Iwantyoutounderstand.Noneofthisistheoretical,andhe'sright.Formanyyears,
all I did was doing it. Then I taught it. And this is fun occasionally, but I don't have the
patiencetobeastheoretical.Ijustlikebeingdownanddirty,andsortofinthetrenches.
ButIwanttotrytopatientlyexplainit.

So, whatever your business might be in need of, that you need to grow, expand
prosperYouneedequipment?Somebody'sgotit,andyoucanfigureoutadealtogetthe
useofit.Onapercentage.Forthebusinessthatcomesfromamarket.Onadeferred.The
technology.Somebody'sgotit.Youcanaccessit.Thefacilities.Thestaff.Themarket.The
advertising. The retail location. The manufacturing. Their credit. Their influence. Their
distribution(meaningtheirsalesforce).Theirbuyers.Theirwebsite.Theirtraffic.

I've had people who had no money to show at a trade show, and I'd say, "Find
somebody who's got a huge booth, who's not competitive, give them equity, phantom
equity, all the profit from the first sales (because you get the repeat or you get the good
will)andhavethemletyouuseacorner.Theyspend$100,000tosendeverybodyanddo
theirdisplay.YougettherejustforstayingatMotel6.Butyoucandoalmostanythingthat
yourmindhasthecapabilityofbelieving.Marketplacesupremacyanddominance.

My brand currency in the entrepreneurial market is very strong. I don't believeand

maybe if you look it upin thirtyfive years, I don't think there's anything negative and
there's,Idon'tknow,900,000oramillionsearches.IwasgoingtoapresentationatSirius
andIwasabletomaketencalls.AndStephenCoveycalledandsaidhe'lldoashow.And
theguyfrom"SharkTank"saidhe'lldoashow.AndRussellSimmonssaidhe'lldoashow.
And the roving editor of Inc. magazine said he'll do a show. And the editorinchief for
fifteenyearsofEntrepreneursaidshe'lldoit.

Whenyouhavethatkindofaccess,youcanmakelotsofdeals.Buttheinverseisifyou
can figure out who has that kind of access; most people don't know how to monetize it.
Mostpeopledon'tknowhowtomaximizeit.Ifyoudo,youcanbetheirbenefactor.Youcan
betheircatalyst.Youcanbetheirpartner.CalvinKlein(Idon'tknowaboutRalphLauren)
they all had partners who knew how to maximize the catalytic value of their talent.

So,I'mtryingtoshowyou,unfortunatelyorfortunately,tothinkaboutamultifaceted
value.Youcandothisforyourcompanyoutside.Youcandoitforyourproductsoutside.
You can do it with other products or services inside. You can do it outside your business.
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You can do both. You can do all of the above. You're only limited by two thingshighest
andbestusetheory,whichyoudon'tevenhavetoimposeonyou.Andyouallshouldknow
whatthatmeansfromrealestate.Doyou?

Imean,withme,mylifeislikeabusstop.Icanlookatasituationandnormallyfigure
maybe not a million, but an infinite number of ways to monetize almost anything. So my
problembecomes,"DoIwanttodothisfor$100,000,ordoIwanttodothisformaybe$1
millionplusinterestinanassetthatmightbeworth$10million?"Atwhereveryouare
youmaybeaboveme.I'mnotsayingI'mthatmuchbetter.Youguysmaybe,withyournet
worthandyourresources,abletostepalloverme,andGodblessyou.I'mjusttryingtosay
that it doesn't matter where you are. What matters is the derivative of this can be
applicabletoanyone.

So,leveragingandmaximizingrelationalcapitalallowsanyIstoppedrightthereand
we quit. Wouldn't you be curious to know what follows? [Laughter] Now, I've got to tell
you. I sent over these terribly long (because I was on a trip) phrases, and they tried very
admirablytoturnitintoPowerPoints,andtheyweredisgusting.Anditwasn'ttheirfault.
So,Isaid,"Breakituphere.Breakitupthere."Idon'thaveacluewhatfollows.I'mgoingto
beassurprisedasyou.

Knowinghowtofullyleverageandmaximizerelationalcapital.Okay.Youcanharness,
minerelationalcapitalleverageamultiplenumberofways.Numberone.Ihaven'tlooked
at this so we're both discovering it together. Fortunately, it is the body of my knowledge
andworkandexpertise,soIcantapdanceandwingit,evenifIdon'tknowwhatI'mtalking
about.

You can take full ethical advantage of other people's entities, assets, access, brand
distribution,momentum,andcriticalmass.Whatdoesmomentumandcriticalmassmean?
ItmeansthatJ.T.mighthave(ohIdon'tknow)tenthousandpeoplehespeaksto.That'sa
lotofmomentuminayear,andIcangethimtotellpeopleaboutJayAbrahamifIwant.IfI
figureoutabusinessmodel,Icanhavehimgothroughallthechafflookingforthewheat.

Idon'tmean[tobe]thatdisrespectfulofyouasanirrelevanthumanbeing.ButifI'm
lookingforbusinessesthataredoing$10millionandhe'stalkingto10,000ofwhich100are
there,andIwantedtofind100myself,I'dhavetospendmoney.Travel.Call.Research.But
that'swhereyoucangetenormousleverage.

You can take economic and strategic advantage of your own company's unused
relationalcapitalleverage.Youmayhaveasalesforceandsellonething.I'lltellyouastory,
because I guess this is important. J.T. might have told you because he asked me to tell a
storyyoucoulduse,soifit'sredundantIapologizebutitmeanshestolemystory.

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YearsagoIhadsomebodybackwhen(andagain,I'mdatingmyself).Believeme,Ido
lotsofstufftoday,butI'mtryingtogiveyouaneasy,relativeexamplethat'sanobrainer.
So, I had a client that was making and selling aerobic, sort of cool designer clothes for
peoplewhodidaerobics.Theywereliketheleggingsandtightsandstufflikethat.Theyhad
threeorfourmajorleadproducts,andtheyweresellingitin5,000stores.Theywereselling
it in Target, Nordstrom, just a bunch of places. But the product was starting to burn out,
andotherpeoplehadknockedhimoff,andtheydidn'thaveanyotherproducts.

And they come to me wanting to know what to do, because they weren't really
creative.Theyhadstumbleduponcreatingthesethreeproducts.AndIsaid,"Youguysdon't
even have a clue. Your real asset isn't your three products. It's the fact that you've got
incredibly close relationships with the buyers at 5,000 outlets. You have a distribution
channelwithbuyerswhodon'tjustbuyleggings.Theybuyleotards.Andtheybuyhosiery.
And they buy whatever else goes along with that. Undergarments. And they buy fashion
things."

Isaid,"Youhavetwothingsyoucando.Goonaroadtripalloverthehotplacesinthe
country.GotoSantaFe.GotoL.A.GotoBeverlyHills.GotoSouthBeach.Gotothehot
aerobic studios, because they're all going to have a little, tiny store where they sell
Gatorade, and they sell Red Bull. And somebody locally, who is creative, has put some
designonasweatshirt,orontennisshoes,oronasweatband,andissellingfourofthem."

AndIsaid,"Makeadealwiththem."Andtheysaid,"Wedon'twanttobedistributors."
Isaid,"Don't.Tellthemtheycanhaveallthesalesfromtheirbigdistribution(theyprobably
sell six of them a year in that location) and give them 4 or 5 percent royalty, and put it
throughyourdistribution."Andtheydidthat,andtheymademillions.I'mgivingyouthatas
anexamplethatthebeginningpartofthisdiscussionwaspredicatedonwhatyoucoulddo
outsideharnessing,capitalizing,leveragingoffofotherpeople.

The same question is What do you have? And even if you don'tyou may have a
littlebusinessbutyou'vegotthetrustofsomebigbuyers,orsomeinfluentialpeople,or
peoplewhobuyalotofbigticketthings.Sowhatcanyoudointernallywithyourgoodwill?
Withyourrelationships?Withyourdistribution?

Number three. Utilize your company's personal contacts to mine thirdparty

opportunities.Whatcanwedo?I'llgiveyouagoodexample.I'mveryclosetofivedifferent
peoplewhoI'vehelpedandwehaddealstogether.Youknowthesixdegreesofseparation.
Youknowwhatthatis.So,Ihavethesefournewsocialmediamagazinesthatarecoming
out. They're coming out Monday. It's digitally online. You can get them for nothing, and
they'rereallycool.

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I used my relationship with Daymond John, and he became the first one who we
featured.WehaveoneonFacebook,andoneonLinkedIn.It'sabouthowtouseFacebook
inbusiness,LinkedIninbusiness,TwitterinbusinessandGoogleinbusiness.Hehadasetup
forMarkCubanforthismonth,butbecauseoftheNBA,we'renotdoingthat.Idon'tknow
MarkCuban,butIwassupposedtointerviewhimbecausehedidit.Itfellthrough,soIgot
onthephonelastnighttotwootherpeoplewhoIhavehelped.

One'sgot90percentAshtonKutcher,whoIdon'tknow,buthe'sverybigonTwitter.
Anotherone'sgottheheadsocialmediapersonforMTV(andI'mnotanMTVenthusiast)
butforStephenColbertandJonStewart.Anotherone'sgottheheadguyofTargetsocial
media.TheOlympicCommittee.Anotherone'sgotthetopguyfromLincolnPark.

It's what you can do when you have access to relational capital. You can help third
partiesuseitforotherpurposes.I'vehelpedallkindsofpeoplemonetizetheirinfluenceor
theirinfluencer'sinfluenceortheirthirdpartyinfluence.Itdependsonmyagenda,andit's
allalwaysfullydisclosed.

I'm attention deficit. When you're attention deficit, you can't remember a word you
said,acommitmentyou'vemade,astatementyou'vedeclared.So,you'vegottomakesure
youdealwithtotalintegrity.You'redealingwithtrustworthypeoplewhereyousay,"What
thehellisourdealagain?"You'vegottobeabletonever,everlie,cheatorsteal.

I'll do deals sometimes for the economic gain, sometimes for the stored value of the
reciprocity,sometimesfortheabilitytohelpathirdpartyutilizetheirinfluenceforanother
purpose.ButIplayamuchmorecomplexgame.I'mjusttellingyouthattoshowyouwhat's
possible.Iamnottellingyouthattointimidateoroverwhelmyou,becauseeveryonecan
startsmallandparlayup,andyoushouldalwaysstartsmall.

BecauseevenifyouunderstandeverywordIamexplainingmasterfully,Icanpromise
when you go out and try to execute, you'll screw it up. Not because you're incompetent,
anddefinitelynotbecauseitisn'tamonumentallypowerfulforce.It'sjustyoudon'thave
yoursealegsyet.

Is anybody here a pilot? Are you a professional pilot? Okay, it doesn't matter. When
you started pilot school, they didn't say, "Okay. Here's a book about it. Go watch the
simulatorforthreehours,andhere'sthekeytoa747.Tomorrowyou'retaking800people
toOrlyanddon'tcrash.Didthey?Youhadtodoitmethodically.

Ialwaysrecommendthatfirstthingappreciatethemagnitude,becauseyoucankeep
leveraging it up. And when I say leverage, by the wayI mean, Jay Abraham has built a
career on a lot of different distinctions, and if you ask me what I stand for, it's probably
leverage,morethananything,butit'sacertainkindofleverage.Anybodyamedicaldoctor?
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Well,everybodyunderstandsthattherearetwokindsofcholesterol.There'sthegood
andthebad.Ifyou'vegottoomuchofthebad,youmaybasicallynothavebloodflowing.If
youhaveenoughofthegood,itcancompensate,right?

Well,therearetwokindsofleverage,too.IassumeJ.T.teachesit.Butthere'sthekind
ofleveragewhereyougetanasset,orabusiness,orsomephysicalorintangibleasset,and
youusefinancialleveragetogetcontrolofit.Youhopethateithertheappreciationinthe
flip or the cash flow will service it, or the investor has got deep enough pockets. And if
everythingworks,andtheworldstayseuphoric,it'scool;butifanythinggoeswrong,you're
screwed,right?

Well,Idon'tdealwithmuch,orany,downsideleverage.WhenItalkaboutleverage,it's
liberating.It'sexhilarating.It'sanimatingtoeconomicspirits.BecauseallIdealinistaking
the upside higher and higher, and having almost no downside. Any downside you have,
unlessyou'recrazy,inthestuffIdo,isalmostnothing.

Itsopportunitycost,sometimes,becauseyoucantestanything.Youcanallayanyone
else'sfears.Youcaneliminateanyguarantees,anyborrowings,anyequity,andanykindof
yokeofnegativity,obligatoryresponsibility,orliabilityeasily.Andagain,IknowI'mbeing
abstract,butI'mjusttryingtointroduceitandgetyouexcited.Areyouexcited?Good.

YoucanalreadyseewhatelseIdid.Youcanbeamatchmaker,dealmaker,finder,or
catalyst.Idoitall.I'lltellpeoplehowtodoit.I'lldoitforsomebody.I'lldoitwithmyown
assets.I'llgiveyouanexample.

I have relationships with a lot of people in the business opportunity field. I don't
personallydoanythinginitanymore.Notthatthere'sanythingrightorwrong.Mostpeople
don't do anything with it, and I don't like being intellectual entertainment. I like being a
catalystthatmakesthingshappen.ButIhavealotofpeople[who]havealotofpeoplein
theirlistwhospentalotofmoneyontrainingand[did]nothingwithit;alotofmoneyon
hopesanddreamsandnothingwithit.

IwentandIfoundapersonwhoisamerchantaccountserviceforretailers.Theyhave
abusiness.Igotthemtocreateathirdversionofthebusinesswhichwasaspecialversion
designedformerchantswhowantedtogrowtheirbusiness,whereweputmyintellectual
capitalin.Itwasourvalueadded.Everyoneelsesays,"We'llcutyourfeesbyamillortwo
tenthsofapoint."Wematchpeople,butwegivethembusinessgrowthassistanceasour
valueadded.IcreatedanentitythatIownedathirdof,forever,byconceptualizingit.

ThenIwenttoallmypartnersinthebusinessopmarketandIgotthemtogotoallof
theirfrustratedbusinessopportunityseekerswhospent$6,000or$10,000or$25,000for
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trainingandhaddonenothingwithit,andIsaidtothem,"Howaboutifacompanyinvests
inyou?We'llpaytotrainyoutobeourrepandsetupclients,andwe'llpayyouupfronta
bonuseverytimeyougetusamerchant,andwe'llgiveyouaresidualstreamforever."And
wegot600peoplethefirsttime.

Thepointisyoucancreateentitiesandequities,atwill,onceyou understandwhat's
possible.AndI'mnotdeludingyou.I'mtryingtoshowyouthatyoucandoincrediblethings.
I'm not trying to denigrate. I'm not trying to be arrogant or subjugate anybody. You guys
maybetentimesbiggerinyourbusinessthanIam.Ijustamgeneralizing.

Ifyouthinkyou'renotbigenough,you'rewrong.Anybodycanharnessderivativesof
this to start. And really, if you can grow a real estate business when you've got to
somewhereget(unlessyou'regoingtodoittotallywithnothingdownandsellerfinancing)
if you're going to have to get someone else to finance it, this is a million times easier to
integrate into business. And I haven't yet applied it to real estate, but I'm sure it has
derivativesthatarefine.

Whyfocusontheseleveragingmaximizingdeals?Why?Well,numberone,theymake
the businesses that successfully do them worth more, because you get more cash flow,
more perpetual, ongoing, repetitive income. That creates more brand currency and more
wealth, net worth, etc. They produce far higher average revenues, and you've got no
downside.

Andyoucankeepyourregularbusiness,dothese,andeverythingcomingfromthisis
incrementalinmostbusinessesthatI'velookedat,ornowhereclosetofullyoptimized.All
of you know this, and its Manufacturing 101, Business 101. If you've got underutilized
opportunitycostsorcapacity,thatcanbethree,fourorfivetimesmoreprofitablethanthe
businessyou'redoingrightnowtojustsortofcoveryournut.So,allthedealsyoumakecan
bemanytimesmoreprofitable,buttheycanbemuch,much,muchmoresustainable.

They make any business owner startup more productive, more effective, and more
efficientimmediatelyinstantly.Withtherightstructureddeal,youcanbuildabusiness.You
canbuildaclientele.Again,Idon'tdomuchwithmybizopportunityfriendsanymore,butI
rememberayearago,ortwo,somebodystartedabusinessandtheyusedalltherelational
capitaloftenpeoplewhohademaillists,andtheyhada$10millionbusinessfourmonths
later.Anditwasarecurring.

Itwassomekindofasoftwarebusinesswheretheywererebuilding.So,theyhada$10
million recurring business, and even if they had attrition (which they would) they had an
assetthat,atwhatevermultipleyou'retalkingabout,everyoneelsecreatedforthem,and
theygavethepartnerswhopromotedithalfofthefirstyearprofit.Soeverythingelsethat
accruedfromit
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AndI'vegottotellyouafunnystory.Thisishilarious.Yearsandyearsago,goingback,I
wasinthenewsletterbusiness.Ihadrelationshipswithallthesenewsletters.So,Icreated
newslettercontent.Iwouldgotoothernewsletterswherethecontentwasn'tcompetitive.
I would get them to promote my content in their newsletters. I would build 5,000
subscribersat$200.ThenI'dgetsomebodywhowantedtobuyabusiness,andIwouldsell
themtheliabilityandthesubscribers,andIwouldkeepthemoney,andIwouldgethalfof
theprofitontherenewal.Ididthatabouttentimes.

It's amazing what you can do. Am I being too abstract? I'm just trying to give you all
kindsofvariants,anditdoesn'tmatterwhatindustryyou'rein.AsIsaid,peoplethinkI'min
thetrainingbusiness.That'ssuchaminusculepartofwhatI'vedoneallmylife.I'vebeenin
retail,wholesale,manufacturing,andtechnology.Ihaveinterestsrightnowinthepodiatry
field. I've got interests in the publishing field. I've got interests in the social field. I've got
interestsinthefinancialservicefield.I'vehelpedmoredifferentpeopleinmoredifferent
industriesinmoredifferentpartsofthecountry.

I'mtellingyou.Whateveryoudo,ifyoudoityourselfWorkforsomebody.Youwant
to take over a business? I mean, my son (I've got many sons) but one of them always
wantedtobuyafranchise.Andthey'reneverlikeamajorfranchise.It'sasecondaryone.
AndIalwayssay,"Why?"

What I say is, "If you really want that business, why don't you get a Yellow Page
directoryofeverybodyineverymajorcitythat'sindependent,call themupandtellthem
youwanttoknowtwothings.Wouldtheygobackinthatbusinessagain?Dotheystilllike
thebusiness?Wouldtheybewillingtoteachyouthebusinessandletyoupaythemalittle
usagefeefortheirtechniques,theirads,andtheirtraininginyourmarket?Andiftheydon't
wanttogoanywhereelse,ifyouwanttorelicenseittopeopleeverywhereelseandshareit
withthem,wouldtheyletyou?"

It's just a way of thinking. Do you understand that? All it is, is a different way of
thinking.It'salimitlesswayofthinkinginsteadofalimitedwayofthinking.[Applause]

JayAbraham,ladiesandgentlemen.

Thankyou.

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