There are two basic reasons why people go into business, one is because it’s their passion, and two is to be successful in life. The wealth formula is a four-step process that can assist and guide you in the creation of your ideal future. In this episode, Alex Mandossian talks about these four steps in detail and how it can be implemented in life by using his own experience as examples. He shares the story of how he turned his annual income into a monthly income with only two-thirds of his expected time by utilizing the wealth formula along with his ascension model.
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Wealth Creation Formula
In this episode, you’ll discover number one, what the wealth creation formula is. It’s a four-step process. You’ll also learn how I converted my annual income in 2001 into a monthly income in 2003, utilizing a vision board strategy with the Wealth Creation Formula.
You’ll also discover why revising two of the four-step wealth creation formula is necessary to succeed as your business grows and goes to another stage in business growth.
How It Began
It was December in the year 2000 and I produced my first information product to sell online. It was called Marketing With Postcards and I was selling it for $247. The reason that was a breakthrough for me anyway is that this environment, the ecosystem that I was in back then in the early days of the internet, is the time when people were selling $20 eBooks, all-digital. Mine was physical. It was four-color and it was $247.
I was selling enough to make a good living but I didn’t want to have my lead product to be my primary offer as it relates to the wealth formula. The cost of that three-ring binder with all the color pages was about $55 and I was selling it for $247. That’s about a $200 profit but in the arena of info marketing, usually, the profit level is much more than that.
I decided to have a secondary offer. My primary offer ended up becoming the consultations that came from the people who purchased the Marketing With Postcards course because I figured that if I could get someone to buy a $247 course on how to make postcard marketing work. What was different about my course is I would teach them how to utilize postcards not only to generate leads through snail mail but through email, which was just starting.
Remember, these are the days of AOL and the dot-com bust. The year 2000, just past the 21st century. I decided to have a $5,000 coaching program and it would last somewhere around 90 to 120 days. It would be based on a rhythm that was comfortable for the client. If any questions came up from the course or they wanted additional consulting, then I would provide that and I charge them $5,000 even. I didn’t play games at $4,997. I figured I deserve the extra $3.
One side got a $247 client then I would offer consulting for $5,000. How did I do that? Inside the sleeve of the three-ring binder, I put two three-minute free consultations. If you’re in the world of digital marketing, you would be shocked to know who purchased that Marketing With Postcards course. Many of these people are now my teachers. Ryan Deiss of DigitalMarketer comes to mind and many others.
If you go to MarketingOnline.com and click on the pointing finger pointing down, you’ll see the testimonials there and many of them purchased the Marketing With Postcards course. What I would do is I had a tight strategy not to bait and switch but to deliver value and to give useful but yet incomplete consulting on the 30-minute consultation. It wasn’t a discovery or strategy session. It wasn’t a clarity call. It was a consultation after they had consumed the course.
[bctt tweet=”The strategy to make $1 million is different than the strategy to make $100,000. ” username=”AlexMandossian”]
I knew that based on the questions they were asking then I would consult them, make an offer and see if they wanted to continue. There were some payment options as well if the $5,000 all at once was too much. What was astounding is about 35% of the people renewed for another $5,000 so I’m showing $247 in a climate that’s selling $20 eBooks. I was mocked by many of the internet marketers of that day because I came from infomercial marketing.
I was an electronic marketer. I was good at anything with a battery or a plug, by phone or electronically through the internet. We had fax broadcasting back then and voice broadcasting. We didn’t have mobile texting like we do but they did in Asia back then so I dabbled in that as well. I was one of the first to teach in Asia, Singapore specifically, as an American. Imagine you’re showing $247. They’re purchasing it. You have a pre-qualified client and I would make an offer for two free consultations.
The Wealth Formula
I figured that twice was better than once. I would offer $5,000 for 90 days or a payment plan and over 1/3 would renew for another session for another 90 days. What is the wealth formula? That’s my story. That’s the way it began but what’s the wealth formula that I utilize to turn my annual income into a monthly income? It’s four parts. Part one is the intention. What’s your intention? You’ve got to start with, “What’s my point B?” “What do I want?” That’s the first part of the wealth formula.
The second element is purpose, and purpose is all about the heart. “Why do I want it?” Number three is strategy. Strategy is, “How am I going to get there?” If step one, intention, is the steering wheel of the car, step two is the accelerator of the car, purpose. What and why. Head and heart. Strategy is how which is all about the hands. “How am I going to do this?”
Step four, which most people forget about with these formulas of execution, and I call it execution. Execution is about who’s going to do it and by when? It’s not necessarily you. If you have a business that’s going to be scaled then you have to assign other people.
Warren Buffett doesn’t ask, “How am I going to run the company?” Or, “What company am I going to buy after this company?” Or, “Why am I buying the company?” The first question he asks, “Who is going to run it?” Because he wants CEOs who are batting 400 like GEICO and all the other properties he owns.
The bottom line is intention step 1, purpose step 2, strategy step 3, and execution step 4. Once your income is increased and you go through the different stages of growth. Let’s say stage 1 is $100,000, stage 2 is $300,000, stage 3 is $1 million and stage 4 is $3 million, then $10 million, $30 million, then $100 million.
The founder and CEO of Infusionsoft taught me those stages of growth. The bottom line is you need a different strategy once you leapfrog a couple of stages. The strategy to make $1 million is different than the strategy to make $100,000. Think about it. If you’re a massage therapist, you could probably make $100,000 if you’re doing your massage.
You’d have to work a lot. You’d have to do a lot of massages a day and you probably would have to be on the high end and in business for yourself. How can you make $1 million? Even if you netted over $100 per massage, you’d probably have to do between 13,000 to 14,000 massages a year. That’s 60 to 70 a day. It’s impossible so you don’t change your intention which is a lot of people do. You don’t change your purpose, which many people do. They just give up.
What you do is you change the how. You change the strategy and that’s where execution comes in in step four. Let’s start with my intention when I started as an information marketer. Prior to that, because I did start in 1995, I’m a BG digital marketer before Google, I was doing consulting because I knew a lot about marketing, direct response marketing and electronic through infomercials. I wrote spot TV ads and infomercials. I was good at writing ads for video but I hadn’t done internet marketing.
The reason I got in is I couldn’t believe I could go to a website, just hang out there for an hour and that would have been over $120,000 in media buys on some of the big super stations that were available back then like WOR and WGN and all the cable networks that were there. Thanks to a guy named Ted. My intention with my business in the year 2001 was to convert my annual income and I generated $63,700 in 2001.
I don’t know if that seems a lot or not, but in the year 2000, I made $300,000 because I was working for a company on Madison Avenue in New York City. After the birth of my son in October of 2000, we moved to California because all our family was here in Northern California. There’s nothing better than grandparents for free babysitting. I left that income and my income dropped but it was all mine.
It was a little scary because we were still spending at the $300,000 level with a new family but I decided to set the intention. What I wanted was to turn my annual income of $63,700 in 2001 into a monthly income by the end of 2004. That’s 36 months. What I did is I followed the counsel of Bob Proctor, who I’ve interviewed many times and he was in the movie The Secret.
If you know the guy with the white hair, the elderly gentleman, he’s read Think and Grow Rich over 60 times. He reads it every year. He said, “What if you could turn your annual income into a monthly income? What if you set that intention?” I did and I did it in 23 months. In November 2003, I generated over $64,000 so I got my intention in 23 months. I put up a vision board to remind me of it every single day on my wall.
It’s not the typical vision board with pictures, Ferrari’s, homes and all kinds of stuff. It had a bunch of columns. What was my purpose? The purpose to turn my annual income into a monthly income was to live a better lifestyle, have extra disposable income, and pre-fund my children’s college education. My second child came into the world in November of 2002. I had two kids and I figured, “I’ve got about 16 to 17 years to do this thing, why don’t I make a bunch of money so they don’t have to get student loans?”
[bctt tweet=”Every business is a marketing business. ” username=”AlexMandossian”]
That was my purpose. Never change your intention or purpose as many people do. They give up because they never change their strategy. That’s the problem. You want to change your strategy and you want to change your execution when you go to a new level or a new stage of business growth. The strategy at $100,000 is different than $1 million. The strategy at $1 million is different than at $10 million. I don’t know if these numbers seem astronomical to you but people do it.
There are massage therapists who have developed massage businesses and they change their strategy. Massage Envy comes to mind where you no longer are doing massage. You’re in the business of massage and you’re doing marketing because every business is a marketing business. My strategy as a part of the wealth formula and to turn my annual into a monthly income is I gave the two free consultation certificates inside the sleeve of the three-ring binder.
There was an invitation and many people took me up on it. Although the prospects to my consulting, which was $5,000, was a $247 purchase of the three-ring binder. The pre-qualified prospect was one who came on one of the consultations and then I’d make a soft offer. It was a small commitment. I wouldn’t strong-arm them at all. What was my execution plan? Who was going to do these consultations? Initially, it was me and then I had an assistant scheduling the appointments.
We didn’t have all the scheduling apps that we have now like Calendly, AppointmentCore, and all that fun stuff. We didn’t have video and we didn’t have Facebook. Google was just a thumb-sucking baby back then. This was 2001 to 2002. Google’s IPO was in 2004. There was no Twitter. I don’t know if LinkedIn was around or not, but I doubt it. I’d have to look into that. My strategy was two free consultation certificates and then the execution is, I’m doing them and my assistant is scheduling them.
The Key To Wealth
Here’s the key to the wealth formula. Honestly, I learned mostly from my good friend, T Harv Eker, and my training partner at several events, this strategy. He calls it the magic number but the psychology of it is counterintuitive and it works. When you put dollars up on a board and you’re looking at it, that’s emotional. It’s emotionally charged. “How am I going to make $63,000 in a month? How am I going to do that?”
I didn’t do that. What I did is I put in units and the units were $5,000 consultation units. All I needed to do is get thirteen clients in a month at $5,000 and that’s $65,000. I would have hit my goal. The key is just to do it one month and the key is to chunk it so that you take your total income for the year and chunk it into twelve. Better yet, you can even do it weekly because if you have twelve chances to hit your goal or 52 chances as in weeks to hit your goal, then you hit the goal.
Your mind and your heart will say, “I’m worthy. I can do this. The strategy is working.” Here is what I did. I created a vision board and this vision board was nothing more than 36 columns. Each column was a month, January, February, March, April, May, June all the way to December. That was year one, 2002 and then again, January, February, March, April, May, June, that was year two, that was 2003. I did the same for 2004.
As Tony Robbins says, “I did 36 months and at the top of each of those columns, like under January, February, March, I put thirteen clients.” That was the number of units I needed. That’s different psychology because thirteen is not emotionally charged for me but $63,700 was, and still is. Thirteen clients at $5,000 is $65,000. I wrote down thirteen at the top of each column and then at the end of each month, I would write the actual number underneath the thirteen.
If it were three then I would put ten in brackets, which means I was ten short. If it was, let’s say ten, which I did about ten months into it, then in brackets, I put three. “I only need to do three.” I kept my intention. I kept my purpose but I found out soon that I needed a different strategy because I was getting too many clients. That vision board was driving me to hit this glass ceiling. It was a glass ceiling of complexity and a lack of scaling. It’s what Dan Sullivan would call it of Strategic Coach.
What I did is I had to revise my wealth creation formula. I had to revise step 3 and 4. I had to revise the strategy, which is how and the execution, which is who and when. Intention, which is what and purpose which is why. What do I want and why do I want it? Head and heart. That stays the same. That is immutable. It never changes. Why should it? About nine months into year one, I doubled my income. In nine months, I made more than I did in the previous twelve months.
I made $130,000 but I didn’t reach my intention of annual into monthly. I was doing well but I didn’t hit my intention. I thought, “Did I overshoot it? Did I overdo it? I didn’t go ten times. I went twelve times.” Annual into monthly is twelve times your income. I thought, “What can I do to fulfill my intention?” I changed my strategy, step three and I changed my execution process, step four. By not changing my intention or my purpose, I still offered Marketing With Postcards consultations.
I started offering certification. In other words, I was certifying people to be a Marketing With Postcards coach so they can do the consultations and get paid. It was like a business opportunity. For that, I charged $10,000 since it was a business opportunity and I would give them the clients because I was getting more clients than I could possibly handle. There wasn’t much competition back then so it wasn’t that difficult to get the traffic and I was good at conversion, and I still am.
I would have group coaching and each person had given me $10,000. At one time I had fifteen people on a teleseminar. We didn’t have video back then. They were teleseminars and they ended up becoming my coaches to scale. I started in 2001 so 2002 was the first year I was doing it. I made $63,700 in 2001. In 2002, I didn’t do any months at $63,700 and November 2003, I did it. Thirteen months instead of 36. I did it in 2/3 the time. I was proud because I changed my strategy and my execution process.
The Ascension Model
I created a new offer called certification. I charged double the amount, $10,000 and these were going to be paid coaches. That way, I could scale. Something else happened that was magical. I had an ascension model. An ascension model is the goal of marketing. It’s not only conversion but converting with ascension. When people would come into a consultation, I would seed the ascension process so they would be thinking about it. I didn’t just spring it on them later on. I did it throughout.
You start the closing process. ABC isn’t always be closing. It’s always be connecting so always connected with the end in mind like The 7 Habits of Highly Effective People by the late Stephen Covey. I would tell them, “Phase one with Marketing With Postcards is your student. You’ll learn the process. Phase two, if you choose to accept it, is to get certified as a coach. Phase three is for us to partner and I give you clients.”
They’re my clients, but you get paid and I paid him 50% of the sale, which was generous at the time and many people were telling me I’m overpaying. Can you see when you revise steps 3 and 4, which are two of the four steps of the Wealth Creation Formula, you can hit your intention? Can you see how making an annual income into a monthly income is possible with a vision board and then changing the strategy and the execution? Can you see how the wealth creation formula, the four-step process works?
[bctt tweet=”Actions are better than words. Well done is better than well said. ” username=”AlexMandossian”]
Alexism: Actions More Than Words
Intention, purpose, strategy, execution is powerful, simple and elegant. The Alexism for this episode is that actions are better than words. Well-done is better than well-said. That second part is by Benjamin Franklin and that’s public domain so I borrowed it.
Here’s a review of the insights you and I have rediscovered in this episode. Did you like it? I want you to apply these insights. Number one, what the wealth creation formula is in four simple steps, intention, purpose, strategy and execution. That’s what, why, how and then who and when for execution. Number two, you learn how I converted my annual income into a monthly income with my vision board strategy of 36 columns, no pictures, just black and white on a whiteboard.
I put units instead of dollars. A tip of the hat goes to my good friend, T Harv Eker. Number three, you also learned why revising steps two steps 3 and 4, which are two of the four steps of the wealth creation formula. Change the strategy and change the execution once the business income is changing for the better. In other words, you’re going to a new stage of growth. I’ve utilized this ever since and my life has never been the same.
I do believe that I am blessed as a result of this insight because it’s created a wonderful lifestyle for my family and I. Remember, these insights can only work for you if you work them. Please make sure you execute and you have an execution strategy of what you’ve learned. Who is going to do this? I hope you. When are you going to do it? I hope the moment you stop reading.
It’s what you’ve learned here in this episode that will make a difference because unless the wealth creation formula is utilized, it won’t work for you. If you do work it, your future will be bigger, it will look brighter and you will create it on your own terms. Creating a future on your own terms is what’s most important to me because freedom is one of my core values.
Speaking of reviews, if you have already given me a review on iTunes, then just write down your biggest takeaway or a-ha moment on an index card. If you have more than one, then write more than one index card so you can go through them. If you haven’t given me a review on iTunes, then here’s my ask. Go to AllSellingAside.com/iTunes and write down your biggest a-ha in the review section.
iTunes doesn’t ask you for an a-ha moment or an insight but I’m asking you for a specific one because I don’t want a review for the entire podcast. I want one specifically for your favorite episode and hopefully, this is one of them. You can only do one review and it would mean much to me if you haven’t done one to put it up there because I want the truth to ascend so other people can see it.
I don’t have sponsors for this episode. You can consult and coach with me if there’s availability. This is not a paid podcast where I’m getting paid by a sponsor. I’m doing it as a public service. It’s 25 years of sales and marketing know-how and mistakes into 25 minutes week after week. Once you review it, I hope I’ve earned five stars from you because iTunes will ask you to rate it. Will you review and rate this episode for me if you haven’t done so?
It will take three minutes out of your day but what you declare could provide you and others reading your review of the valuable lesson. My final gift in honor of this episode is a physical copy of my Amazon bestselling book. You can write one. You can write your own isms book. Mine is called Alexisms. My good friend, Raymond Aaron, has Raymond-isms. My friend, Jack Wang, has Jack-isms. I’m sure your name is available. These are useful life lessons from a recovering serial entrepreneur.
I was a flashlight at one time. Flashlights do project light but they can’t burn a hole through a wall through focused and concentrated light. That’s called laser focus. I don’t mind being a serial entrepreneur at times but it’s not useful to me.
Some people can pull it off, but I can’t. You can get a free physical copy and pay for shipping and handling. There are some highly discounted other goodies along the way. There are how-to courses. They’re called one-time offers. Take a peek at some of them. They’re cool. There’re web communication secrets, productivity secrets, and push-button influence. Take a look at them as you go through that whole process.
You’ll also get free membership access to my $497 eCourse called Virtual book Tour Secrets 2.0. I did the 1.0 version back in 2007 and I retired in 2010 because I no longer did teleseminars. Nowadays, we do with Facebook Live and it practically guarantees Amazon bestseller status and reviews, which are difficult to get.
If you get the book then you’ll get free access to that as a result of this show. That does it for this episode. I hope our paths cross again. This is the show dedicated to making you an ethical influencer, which is a learnable skill and you’ll have more certainty in your personal and professional life. Please do whatever it takes to join me next episode because our topic is called the DELTA Selling Process. It was developed by Jerry Acuff and it’s in a book.
I teach it fairly well almost as good as he does. I encourage you to invite a friend or a colleague or just invite a study buddy. It’s free. I can’t wait to connect with you. It’s going to be a super fun episode and you’ll love it. I want you to join us with your study buddy.