The Three Key Principles Of The Amazing Formula That Changed My Life-Marlon Sanders

Tuesday, May 12th, 2009 at 1:00 am

What are the 3 key principles of Amazing Formula that changed my life? How can they be applied to your life? How do they work? These 3 key principles are used by the most successful online businesses of any type. They’re buried in the teachings of every prominent info product, yet not made explicit. Thousands around the world use these principles in every walk of life and type of business.

The First Key Principle:

The Money Is In The List! I said this years ago in Amazing Formula. It’s often quoted and often misunderstood. This means that you first understand WHERE money comes from online. And that source is selling products.

The only way you stop trading your time for dollars is to have something else to trade for dollars. And that other thing is products.

Just the other day I got an email from an online friend. He started in this business only two years ago.

And in my email conversations with him, he had his doubts and fears about his business. Yet, last month he pulled in $50,000 — without doing a big product launch. Just from selling products to his list and a nice cadre of small affiliates…exactly what I teach.

But without the list of customers he’s grown and cultivated, his products would be worth nothing.

Really, all he does is the basics. He creates helpful products and does a great job at communicating the value in them (principle two). Then he adds on back end items (principle three).

Basically, he’s just running a 3-step business.

My dad grew up on a small farm in Kingfisher, Oklahoma. Early every morning he’d wake up and go out to milk the cows.

Like clockwork the milk would be there.

Until one day the cattle caught a disease and died. There was no more milk.

Getting milk from a cow is like selling products to your list. The milk is what gives you trade for dollars. But the SOURCE is the cow.

People get all hung up on products. “Marlon, I got this product. Show me how to sell it.”

See,, they got it all backwards. Products are NOT your money source. It’s the customers. Products bought and sold are the byproduct of the customer list.

Some products will sell. Some won’t. But your customers will buy and keep buying if you serve them well.

The Second Key Principle:

People Buy According To The Value They Perceive

People buy what they want not what they need.

And they buy according to the value they perceive.This means they do NOT buy the best product. They buy what they PERCEIVE as the best product.

Another story about my dad. When he was a young man, he repaired washers and dryers for Maytag. So he knew quite a bit about what made a sturdy washer and dryer.

Well, over the years, my mom and dad had some friends they saw regularly.

We’ll call my dad’s friend Charlie. Charlie came over one day to visit my mom and dad. He was bragging about the new washer he’d bought.

It had some kind of mechanism that made it go up and down and in all kinds of gyrations. But the clincher to him was this magazine had rated it as the best buy.

He really thought he had a humdinger.

Later, my dad commented that all that washer had was stuff that was gonna break and did nothing to wash the clothes cleaner.

In other words, he bought gyrations that created perceived value but little actual value.

Marketing is the same.

Hopefully, you do sell the best product. But remember also that people buy what they PERCEIVE as the best product.

This is why people write books. You know that book “The Four Hour Work Week?” What are the chances the dude would be so famous if it was only an ebook?

He wouldn’t be. Even if it was the same content.

It’s the publicity and the fact that it’s at the bookstores that makes people perceive him as being more an expert than someone else.

In marketing we call it “signal value.” The value of a produce includes what you SIGNAL it to be. Not just the actual value.

Become really great at knowing the signals you can send that cost little but create a lot of perceived value.

Storytelling is one way you signal value. The book “The 7 Laws of Influence.” Those are all ways you signal value and they don’t cost a DIME!

You build your perceived value with WORDS. Whether they’re in a letter, a teleseminar, on a web page, or in a video — you build your perceived value with your words and your “messaging.”

In Amazing Formula, I called it the KSL for Killer Sales Letter. But really, it’s more than that. It’s your words and your messaging.

It’s creating the perception of value for what you sell.

The Third Key Principle:

The Money Is In The Back End

Not only is the money in the list. The money is in the back end, what you sell AFTER the initial sale to a customer.

In other words, in repeat business.

The manager of a boat shop hired a new sales person.

At the end of the day, he’s ringing up sales and this new sales person had sold $250,000 on his very first day.

The manager being duly impressed asked him if he got lucky and someone came in to buy a boat.

Here’s what the sales person said?

“Nope, story was empty. So I sent outside and saw a man standing around looking for a light for his cigarette. I walked up to him, offered him a light and said, “Looks like a nice day to go fishing, doesn’t it?”

We chit chatted, and I invited the guy to come in the store to see our new fishing rod. He decided to buy it.

As I started to ring up the order, I pointed out how it’d be a shame to have the rod and reel without a new tackle
box.

So after a bit of discussion, we added that on.

Then I said it’d be a shame to have a new fishing rod, and a new tackle box without a boat to take out on lake Pomawa, seeing how the bass there are plentiful and you need to be able to maneuver into crooks and crannies to find ‘em.

So that was it.

Basically, all I did was offer a favor to someone and say it looked like a nice day to go fishing.”

That’s what I mean.

The money isn’t in the rod and reel. It’s in the back end. Selling the boat to go with the rod and reel.

When I first got started selling Amazing Formula, my back end was called “Big Course.” It sold for $500 and was all digitally delivered.

I still talk to marketers today who are successful in this business and that was the first big ticket they bought.

So these are the 3 principles of Amazing Formula. They’ve made me a lot of money over the years and I they’ll work
for you also.

Marlon Sanders is the author of “The Amazing Formula That Sells Products Like Crazy.”

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