I read The Iceberg Effect a couple months ago and recently read the book again after being asked to create a video promo from the author, Dean Holland. In this blog post, I will not review concept by concept and then try to paraphrase the chapters. To me, that is as boring as sitting through a presentation where the bullet points of a slide deck are read off the screen by a monotone voice with little commentary. Instead, I will highlight concepts that stuck out and try to relate those concepts into my real life examples. There are thousands of monthly searches for “make money online” or “start an online business”. This book review will offer you real insight into the those topics and more.
Reverse Engineer Your Desires
‘How Much Land Does a Man Need?’ was a great short story that never really impacted me until about 25 years after I read it in high school. If you don’t know the story and won’t bother to read it, the lesson is about a man named Pahom that grows his farming empire to amass a great lot of land. Pahom goes through many battles with others and internally in his pursuit of wealth. In the end, all he needs is a six foot deep plot. Needs vs. wants is the moral of the story.
I see the crazy ads of “successful” marketers that are standing next to their Ferrari in a mansion telling you all about the secrets they have for sale. For some, that gets the appetite worked up and gets their mouths salivating. How great would it be to finally achieve the life that affords that sports car we had as a poster when we were kids? Well, life might be great for some to have a sports car but, what do they really seek out of life? What do you seek out of life? For me, I would like to start by making the same amount in business as I do at my full time IT job.
One has to reverse engineer their life to understand how one could come up with such a definite number. For me, I look at the difference in taxes as an employee pays vs. what a corporation pays. In the US for example, about five months of my salary goes to taxes, then my expenses come in. In a corporation, your expenses come before taxes.
A Small Example
With the additional three plus months of income I could gain, I believe I would gain some lifestyle benefits. First, I would have more money for vacation because that money would not be going to the government. Second, I would not have to drive a long distance to a job every day, saving me money on fuel as well as wear and tear on a vehicle. The car payment would also go against the business as an equipment expense, so I could get me dream car but, I can almost guarantee, it won’t be a Ferrari or any lavish sports car.
Working backwards from the lifestyle you want will help establish your total life expenses and will help you set that goal of what you need to make every month to achieve that lifestyle. Without doing this exercise, you cannot really focus on a target goal because you haven’t established anything.
Many people will talk about the fear of failure and how that will prevent people from taking actions. Fear of failure can be paralyzing from over analysis, over thinking, and over planning. A person can find themselves putting off actions only to gain a little more training, to read one more book on a topic, etc. It’s not that the fear isn’t real. For example, without proper knowledge of running an effective ad campaign, you could easily run up your credit cards with zero results. That high balance on a credit card is an expensive lesson that can feed future fear. Don’t let fear win. Mistakes will be made, stay on top of your actionable learning and embrace the mistakes as they are made.
The other side of fear is the fear of success. People start forecasting what their lives would be like. It will be great to make more money, have freedom, do whatever you want, whenever. At times, those who fear failure will fear the hardships of what comes with success. Friendships can become strained, jealousy can set it with family members. Some of these loved ones might see you as their financial support. They may see your money and think, you can solve all their problems. These visions can be scary and some might just think, it’s not worth it and never get started.
The Tip Of The Iceberg
When I first learned about affiliate marketing as a way to make money online, the lessons from a weekend seminar were very vague. The session was general at best and mentioned a few places to sign up to prove yourself as a marketer then a few places to apply once you were established. It was like a college education where the professors teach you but not from a successful experience.
The fortunate thing was, I didn’t really get involved until I started following Dean Holland. Too bad that is not the case for others who probably had a lot of experiences good or bad. What really captured my attention, even before The Iceberg Effect was released was, there are affiliates that only pay you for upfront commissions. Kind of like a finders fee. These companies can go on to sell more products or services and they keep all the money.
Imagine if you were a sales person working for a company and you brought in a new client. You pitch the whole offering top to bottom with all the bells and whistles. The company decides your offering is great but, only has enough budget for the bottom tier option of your offering. Great, you get a win and continue to work with the customer. Then, in subsequent years they are now ready to upgrade to the next tier. You did a tremendous amount of work to close the deal. But now, all the company decides they will not pay a commission for the new sale. Now, you find out that you are only being paid for initial sales on new customers.
Sales Won’t Sustain For Either Party
I don’t believe any sales organization would survive long. Eventually, these companies will run out of suckers. Writing reviews like this and hyping organizations that have a moral foundation to reward affiliates for their work is what will eventually change the game. Joining these types of organizations and focusing your energy to promote their products will eventually overshadow those companies that only pay for the tip of the iceberg.
The reason getting paid on upsells and recurring commission is important is, the cost of new customer acquisition is the highest. It is hard to get someone’s attention and sell them why they should drop what they are doing and choose your offering. It is much easier to sell to existing customers due to an established trust and communication.
The Four Core Areas And The Path To Success
What I have learned in this book and from the constant repetition Dean Holland covers in his conference calls is the four core areas to focus on in this business. Please do not construe my comment on repetition as a negative. The mission is crystal clear. I learned by reading Jim Collins’ books that having a consistent message is key to executing vision.
To understand the four core areas, you will have to read the book. However, I mention them because they will be the differentiation in running a next level affiliate marketing business. Compared this to someone who just earns commissions here and there. To be completely frank, I truly believe this is missing in most businesses. This is because of the level of customer engagement and lack of systems the “core four” cover.
How many other affiliate marketing teachers do you know that want to show you how to level up your business? Did you know that there are phases to elevate your business? I did not know or understand how you can really grow your company and server others until I read The Iceberg Effect. Even though it was mentioned in a training, I don’t think it sunk in until I saw it in bold writing. I thought to myself, this is just another positive differentiation from those who teach a course on how to make money using ClickBank.
After reading The Iceberg Effect, I felt energized. I started taking more actions and wondering to myself why I wasn’t doing more with my time. But, I cannot focus on the past, I can only take present action for future results. This is why you are seeing blog posts and messages in your email. This is the system. It isn’t hard if you have the will to do it and put down your fears. This system, this company is here for you. All you have to do is pick up a copy to get started.
Please leave me a comment on what is holding you back or some possible fears you have. I would love to have a conversation. Take care and I wish you the best success.
Until next time,