The 5 Sources of POWER in Business that Renegade Millionaires Continually Employ

SPEAKER_1 (0:00)

Two businesses with the same products and the same marketing. One thrives, one doesn't. The difference isn't what you'd guess. Dan Kennedy says it's five things, and most owners can't name one of them. Welcome to the Magnetic Marketing Podcast. In this episode, Dan Kennedy reveals the five sources of power that actually decide who wins. He shares why your balance sheet might be pointing you in the wrong direction. Let's get into it.

SPEAKER_2 (0:23)

I don't think there's anybody that has had a bigger impact in the field of direct response than Dan Kennedy.

SPEAKER_3 (0:30)

The legend of Dan Kennedy should be ignored at your own peril.

SPEAKER_4 (0:34)

They're not really the lessons, they're kind of laws that you live by.

SPEAKER_3 (0:37)

Dan opened my eyes to what small business marketing looks like.

SPEAKER_5 (0:43)

Dan teaches strategic direct response that is timeless.

SPEAKER_6 (0:47)

His ripple effect touches people who don't even know his name. The world as we know it was changed because Dan Kennedy became obsessed with marketing.

SPEAKER_4 (0:56)

Welcome to the Magnetic Marketing Podcast with your host, Dan Kennedy.

Bill Glazer (1:01)

Well, hello there, Diamond members. This is Bill Glazer and I'm joined by Dan Kennedy and this month's Diamond Call. The topic of this month's Diamond Call is the five sources of power in business that renegade millionaires continually employ. Who better to have on the call with me than Dan Kennedy, the creator of the renegade millionaire system. All right, so in the renegade millionaire system, you point out the five sources of power in a business.

And I would suspect that you would agree with me that these five sources of power aren't necessary in any, presented in an order of importance, but pretty much all five of them are equally important. And so we're going to jump right in to number one, but once again, don't assume that number one is number one. It's just one of the five. But number one, Dan, you've identified as lists and relationships. And so I'd like you to talk about that, and actually talk about that as two separate topics, because there is lists and then there's relationships that is so important to the list. So would you please go ahead and just be Dan Kennedy, explain that.

Dan Kennedy (2:23)

Well, I think first of all, it tells us what are not sources of power, that a lot of people, you know, when people list business assets and they think about equity that can be leveraged, they're often thinking in accountants' balance sheet terms. And so factories and buildings and machinery and equipment and copyrights, trademarks and patents and locations and secret sauces and, you know, all of those sorts of things. And they're all made valueless or made valuable only by the existence of customers and or prospects, and then relationships with those customers and prospects. And so as you say, there are lists and lists in and of themselves can certainly equate to power. We just came out of a whole day talking about list building, of course, at the summit. And there are, I mean, there are businesses now, online businesses, particularly, that are being bought and sold with absent any income or even any income model, but purely on the basis of the size, scope and nature of the list. And a business without lists, and an awful lot, as you know, retail businesses, service businesses, an awful lot of businesses exist without ever doing any data capture, any list building at all. Charlie runs his restaurant, and Mary runs her jewelry store, and whoever comes in comes in, and whoever doesn't doesn't, and somewhere in the recesses of the basement, they have cardboard boxes full of sales receipts and invoices that may have some of the customer information on it, but there's really no development and use of lists of either customers or unconverted leads, prospects, visitors, et cetera. Most auto dealerships still don't capture, create and use a list of everybody who comes in over the weekend to look at a car who doesn't buy. And so it's a real weakness in a lot of businesses, and pretty much all follow up, all direct marketing, all event and special occasion marketing, all of that is ruled out when lists that have been put together and maintained well don't exist. The bigger source of power, of course, is the relationship with the list, where you are, to use magnetic marketing language, you are a welcome guest when you arrive, however you arrive, by whatever media you arrive, rather than being an annoying pest or a stranger. And some people really get this in relationship to their customers, but don't grasp it in relationship to their prospects.