Wizard of Ads Monday Morning Memo

I look in the mirror and see the person I believe myself to be. You look at me and see the person you believe me to be. We don’t see the same person.Businesses, too, see themselves differently than their customers do.A flatterer disguised as a branding consultant will help you create an idealized self-portrait and tell you it’s your brand. I say “idealized” because we businesspeople judge ourselves by our intentions. Customers judge us by our actions.Peace of mind comes from liking the person you see in the mirror.But brand attraction happens when the customer looks at your company and sees a reflection of themselves.We are attracted to brands that stand for something we believe in. Likewise, we are attracted to television shows, movies, books, websites, podcasts, newscasts and songs that confirm what we believe. This is known in psychology as “confirmation bias.”Let me say this plainly: If you challenge a person’s core beliefs, they will avoid you. Agree with those beliefs and they will like you. This is the essence of brand building.But not everyone believes the same things. This is why a brand-builder must choose who to lose. There is no message, no belief system, that appeals to everyone.The Democratic party and the Republican party dominate American politics even though just fifty-eight percent of Americans align themselves with either of these two brands.In a survey of self-identified “Liberal Democrats” and self-identified “Conservative Republicans,” Experian Simmons identified the Top 15 favorite television shows of each group.Not a single show was on both lists.Not one.Liberals prefer shows of moral ambiguity like Mad Men, Dexter, 90210 and Breaking Bad, where the good people aren’t entirely good and the bad people aren’t entirely bad. “I don’t mean to make light of it, but Democrats seem to like shows about damaged people,” said John Fetto, senior marketing manager at Experian Simmons. “Those are the kind of shows Republicans just stay away from.”Conservatives prefer shows where hard work and talent are clearly rewarded. Reality shows and contests like American Idol, Dancing with the Stars, Survivor and The Bachelor scored high with this group.Interesting information, right? But not really surprising when you think about it. Narcissus saw his reflection in a pool of water and fell in love with the person he saw.Confirmation bias strikes again.How can you use this information to make money?1. Quit trying to change your customer’s mind.2. Tell them they’re right.3. Confirm their suspicions.4. Demonize their enemies.5. Let them see themselves when they look at you. Do these things and you’ll make more money. Usually, a lot more money.But a strange thing happens when you“go along to get along,” when youagree with people you don’t respect, when youfail to speak out against injustice, when youallow etiquette and expediency to quietly replacecompassion and courage:You look in the mirror and no longer like who you see.How do we remain open to seeing things from a new perspective without losing clarity of self in the process?If I ever figure it out, I’ll let you know.Roy H. Williams

A cafe owner, famous for his soup, was told by his accountant that he could boost his profit significantly if he would add just 5 percent more water to the recipe. The accountant was right. The water was added and no one noticed. Months later, the cafe added 5 percent more water and still no one noticed. Later, more water was added. And then a little more, but never more than 5 percent because they had now “proven” that customers cannot detect just 5 percent more added water.As you suspected, the cafe owner didn’t lose his customers incrementally, but all at once. “The soup here just isn’t as good as it used to be.”I was told that story by a multimillionaire Wall Street speculator. He says American businesspeople have a peculiar blind spot to the all-at-once backlash that comes from watering the soup. He said American businesses expect to see incremental declines when they are incrementally abusive, but that’s never how it works. When the wife packs up to leave, she takes the kids and leaves all at once.The central belief of a cost-cutter is that profits rise when costs are lowered. And on paper, this argument is insurmountable because the cost-cutter’s forecast doesn’t project a decline in business.In the short term, the cost-cutter looks like a genius.Later, when customers quit buying soup and the business begins to circle the drain, the silly little cost-cutter becomes an even taller hero:“See how smart I am? If I hadn’t reduced expenses, we’d really be in trouble right now. But with our new, lower overhead, we’re still profitable. I’ve saved the company.”Don’t laugh. I’m watching it happen to a friend’s business right now and it makes me want to cry.Shortly after we bought the plateau on which Wizard Academy proudly sits, the Chicago Tribune ran a fascinating story. These are the opening lines:Fred Turner did not need to look at financial statements to know McDonald’s was in trouble. He could taste it.The man who worked alongside founder Ray Kroc to turn McDonald’s Corp. into a global colossus, Turner noticed when penny pinchers at corporate headquarters changed recipes to cut costs. So when McDonald’s cheapened the famed “special sauce” on its flagship Big Mac sandwich, Turner knew.But it wasn’t until a new CEO brought him back from retirement 18 months ago to help lead a turnaround at McDonald’s that the now 71-year-old Turner learned just how deep the trouble ran…McDonald’s was a magical corporation when it was in the hands of entrepreneurs. But then the conniving little accountants took over.I did not say that all accountants are idiots. My own accountant, Adrian Van Zelfden famously says, “It’s usually easier to increase revenues than to cut costs. Don’t try to shrink your way to profits.”Jean Backus, another CPA, was recently elected to serve as Chairman of the Board at Wizard Academy. Jean doesn’t believe in shrinking things either. Jean believes in growing them.Your accountant may be one of the good ones, too. What are they telling you to do? Are they suggesting that you grow your company? Or are they suggesting that you shrivel into something else?A cost-cutter buys grapes and makes raisins.An entrepreneur buys grapes and makes wine.You’ll never see a person arrive to a celebrationcarrying a box of raisins.Roy H. Williams

Contrary to what my headline might suggest, this is actually an upbeat message.Guilt is about what you have done.Shame is about who you are.Failure in business has no connection to either of these.Failures are footlights along the dark pathway to success.One of the defining characteristics of Wizard Academy alumni is that we are people of action. Failure does not frighten us.The author of Peter Pan, J. M Barrie, would have been one of us if Wizard Academy had existed back then. He said, “We are all failures – at least the best of us are.”Thomas John Watson, the early President of IBM who turned that company into a household word, said, “If you want to increase your success rate, double your failure rate.”Roger Van Oech, a consultant to Apple, Disney, Sony and IBM echoes, “Remember the two benefits of failure. First, if you do fail, you learn what doesn’t work; and second, the failure gives you the opportunity to try a new approach.”Warren G. Bennis had a failure epiphany that changed his life. He says, “The leaders I met, whatever walk of life they were from, whatever institutions they were presiding over, always referred back to some failure: something that happened to them that was personally difficult, even traumatic, something that made them feel that desperate sense of hitting bottom — as something they thought was almost a necessity. It’s as if, at that moment, the iron entered their soul; that moment created the resilience that leaders need.”Failure, it seems, is valuable and important and necessary to your success.Here’s how to do it right:Fail cheaply. Always ask, “What is the minimum viable experiment?”Fail forward. Be sure to learn something you didn’t know before you failed.Fail quickly. The primary goal is to prove or disprove your concept.This education by experience can be expensive. But ignorance is even more expensive.I’m in the middle of what appears – right now – to be a failure of epic proportions.But I’m not frightened by it, ashamed of it, or even confused.“Amazed” is the word I would use.Back on November 4th I announced a $10,000 Quixote’s Windmill Prize. Only 4 people, so far, have entered that contest.Think of it this way: would you accept a free lottery ticket to win a $10,000 cash prize if your chances of winning were 1 in 4? That’s right. There is nothing to buy, no entry fee, and anyone can enter. The prize is cash.The deeply insightful Jean Vanier says, “I am struck by how sharing our weakness and difficulties is more nourishing to others than sharing our qualities and successes.” The name of Vanier’s book is Community and Growth.Community: you’re part of the community of Wizard Academy and the Monday Morning Memo.Growth: It’s the goal of our coming together.I’m going to say something hard now. I hope you will forgive me: If you want to stand before others as a sparkling example of what is possible if a person works hard enough, is disciplined and determined enough, and makes all the right decisions, well, you seem to have a need to be worshipped.If you actually want to benefit the people around you… if you want to help them avoid the mistakes you made and the difficulties you endured as a result… you must share those mistakes and describe those difficulties. This is how we grow. This is how we have community.I want you to enter Quixote’s Windmill contest because it’s important for you to laugh about your failures. If you try to keep them secret, you give them power over you.Don’t wear the handcuffs of the past.Roy H. Williams

“Once, there were 3 kittens named Murry, Furry and Wurry…”I’ll admit to fabricating Murry and Furry, but you and I both know that Wurry is often pampered and protected like a cherished pet. We talk about our Wurry and cuddle it. We share our Wurry with others, hoping they will choose to love our Wurry as we do.If you try to help a person eliminate their Wurry, they will rise ferociously to its defense.People who have all chosen to love the same Wurry form organizations and political parties, bound together by a shared anxiety.Would you like to have anxiety? It can be yours if you want it. All you have to do is craft a pessimistic interpretation of ambiguous events and voilà, anxiety is yours.Jesus makes a strong argument against worry in the 6th chapter of Matthew, then finishes his thoughts with these words: “Don’t worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own.”That’s a well-known Bible verse, but if you actually choose not to worry, most people will consider you to be foolish and naive.We are programmed from birth to give our attention to the snarling tiger on our left instead of the beautiful butterfly on our right. When face-to-face with imminent danger, fear gives us focus and clarity. It is a biological imperative that keeps us alive. This is why we give bad news the highest priority. But that doesn’t mean fear is always good.When was the last time you encountered a tiger?In the absence of snarling tigers, modern man has chosen to focus his need to fear beyond this moment, beyond his circumstances, beyond objective reality.Our fear about the future is called Worry.I do not love it.What would it feel like if we quit borrowing trouble from tomorrow?It sounds reckless, doesn’t it, not to worry about possibilities that might never happen? Would that mean the end of planning? Perhaps it would. But it would also trigger an explosion of improvisation.I seem to recall a writer who said that most plans are just inaccurate predictions anyway. I think he makes a good point.Am I seriously suggesting that we eliminate worry from our lives? No, it was Jesus who suggested that. I’m merely contemplating the implications of such a decision and walking you down a path of possibilities.Interesting scenery, don’t you think?Roy H. Williams

We could call this memo, “The Poodle and The Vamp, Part Two,” but we won’t. No one likes the sequel quite so much as they liked the original.Talent isn’t rare. Our world overflows with worthy talent that continues day-to-day unrecognized. I’ll wager that you possess such talent.There is something you’re capable of doing, I’ll bet, that could make you famous around the world. Your fame might even happen in a whoosh, the way it did for Billy, Tom, and Ted.Billy Graham started preaching in 1947. In 1949, Billy set up a circus tent in Los Angeles, certainly not the first to do so. So there he was, night after night, just another preacher with a tent, when two words forever altered the trajectory of his life: “Puff Graham.”William Randolph Hearst, the newspaper mogul who inspired the movie, Citizen Kane, sent that unexplained, 2-word telegram to every editor at every newspaper he owned in America. The next day, papers from coast to coast were glowing with stories about this Christian minister. Hearst never told the papers to quit puffing Graham.And they never did.In his book, Just as I Am, Billy Graham says he never learned why Hearst took an interest in him. “Hearst and I did not meet, talk by phone, or correspond as long as he lived.”Billy Graham was, and is, remarkably talented. But so are 10,000 other ministers.Every poodle needs a vamp.“Tom Clancy was an insurance salesman in Maryland when, in the early nineteen-eighties, he wrote a book, ‘The Hunt for Red October,’ that Ronald Reagan, with a handsome public mention, turned into a best-seller. Clancy’s career took off like, well, like one of his rockets. Too nearsighted to serve in the armed forces, Clancy, who kept a tank on his front lawn, was a military fantasist whose end-is-nigh concoctions spawned a franchise…”– David Denby, The New Yorker, Jan. 20, 2014, p. 78Reagan played vamp for Tom Clancy just as Hearst did for Billy Graham.But what about Teddy Roosevelt? Wasn’t he one of the most popular and beloved presidents in the history of the United States?Nope. Not really. His policies and decisions were as hotly debated as those of Barack Obama today. We think of Roosevelt as “one of the great ones” primarily because his monumental face watches over America from Mount Rushmore along with Washington, Jefferson and Lincoln, the undisputed big boys of American history.Roosevelt’s vamp was Gutzon Borglum.Borglum was not commissioned by the government to create Mount Rushmore. It was a private work begun by a private individual.And that individual was a buddy of Ted Roosevelt back when Teddy was still alive. Roosevelt had been gone for only 8 years when Borglum began his carving.If Gutzon Borglum was only just now beginning to carve that granite in South Dakota, he might chose Washington, Jefferson, Lincoln and Carter because Gutzon answered to no one but himself.That is the power of a vamp.Do you believe in someone? Vamp for them.The Wizard of Ads partners are known throughout the Engish-speaking world because we have agreed upon a covenant: Never boast of your own accomplishments but only those of your partners.“You vamp for me. I’ll vamp for you.”It’s called “third party credibility,” or at least it used to be. Today they call it “feedback,” “comments” and “customer reviews.”Billy, Tom and Ted went viral before it had a name. But one thing remains the same: A poodle needs a vamp.Every business is a poodle.Every ad writer is a vamp.How good is yours?Roy H. Williams

Type “business plan” into Google and you’ll see an impressive array of articles from BusinessWeek, The Wall Street Journal, Inc., Forbes, Entrepreneur and SBA.gov.Everyone has a business plan.Almost no one has an advertising plan.And we are coming to a critical fork in the road.I want you to choose your fork consciously rather than unconsciously. And choose you most definitely will.I’m talking about your choice between brand-building and direct response advertising.When you sell a product or service with a long purchase cycle – something purchased only once every several years – your business will be best served by brand building. Do everything in your power to become the company that people will think of first and feel the best about when they finally need what you sell. Good brand-building also stimulates word-of-mouth, the original “viral.” But brand building requires patience, confidence and courage.If you sell a product or service with a short purchase cycle – something that most people will purchase every few days, weeks or months – your business will be best served by direct-response ads. Create an extremely attractive, limited-time offer, then add an additional incentive for those who act now. Then add a third incentive. This is called “benefit stacking” and it makes a massive difference. Direct-response ads are exciting but to be really successful you need a big-gap offer.The goal is to create a big gap between the perceived value and the asking price. The more impressive that gap, the more attractive your direct-response offer. Big-gap offers are most easily made when the public has no ability to shop and compare.Companies that make money with big-gap offers are the ones that can sell products with a perceived value that is at least 10 times their actual cost. I’m betting you don’t have that kind of profit margin. Am I right?Write a direct-response ad for a product with a widely known price and the public won’t be impressed unless you’re selling that product below your cost. This is known as a “loss leader.” The idea behind a loss leader is that it can drive customers into your store who might make additional purchases while they’re there. Grocery stores have used this technique since the dawn of time.Direct response is not a style of ad writing. It is a style of offer packaging.Businesses with short purchase cycles can jump from offer to offer, item to item, incentive to incentive indefinitely. But may God have mercy on the ad writer who is expected to generate immediate response for a product or service with a long purchase cycle.There are times when it’s possible to run a direct-response offer within a brand-building ad campaign for a product or service that has a long purchase cycle. An example of this would be for a jewelry store to make an enticing offer to finance engagement rings right before Valentines Day. Add the additional incentives of a romantic dinner and a limousine filled with 12 dozen roses and you might see a bump in engagement ring sales.Google’s ability to identify customers who are immediately in the market for products and services with long purchase cycles has all but eliminated the Yellow Pages and it is rapidly eroding the public’s need for in-store “experts” as well. Google’s unique ability to do this has caused many business owners to believe they have a right to expect immediate results from traditional mass media.Business owner, the fork in the road is before you: brand building or direct response.If you sell a product or service that at least 50 percent of the public will purchase within the next 12 months, you might do well to consider running direct response ads in mass media. But please be careful to make a highly impressive offer or you’ll be horribly disappointed.If you sell a product or service with a long purchase cycle – roofing, HVAC, jewelry, boats, major appliances, etc. – you must use extreme caution when applying direct response techniques or you’ll just be teaching your customers to wait for your next “sale.”Or you could just bet the farm on your ability to stay at the top of Google search results.I’ll be intrigued to see what you choose.Roy H. Williams

“Normalization” begins with an idealized norm of conduct – for example, the way a soldier should ideally stand, march, and present arms, with each of these actions defined in minute detail. Individuals are then rewarded for conforming to this ideal or punished for deviating from it.Normalization allows a leader to exert maximum social control with the minimum expenditure of force. This idea of “disciplinary power” emerged over the course of the 19th century, came to be used extensively in military barracks, schools, factories and offices in the 20th century, and has since became a crucial aspect of modern societies. I blame the British.Curious to know more? Read Discipline and Punish by Michel Foucault“We all know bad things are happening to our political and social universe; we know that business is colonizing ever larger chunks of American culture; and we know that advertising tells lies. We are all sick to death of the consumer culture. We all want to resist conformity. We all want to be our own dog.”– Thomas Frank, Conglomerates and the Media, 1997“The reward for conformity is that everyone likes you but yourself.”– Rita Mae Brown, Venus Envy, 1994“Education either functions (1.) as an instrument which is used to facilitate integration of the younger generation into the logic of the present system and bring about conformity or (2.) it becomes the practice of freedom, the means by which men and women deal critically and creatively with reality and discover how to participate in the transformation of their world.”– Paulo Freire, Pedagogy of the Oppressed, 1968Paolo Freire was a miraculous educator who used unapproved methods to teach thousands of illiterate Brazilian farmworkers to read and write in just 45 days. He was later put in jail.I believe Paolo would have loved Wizard Academy, a school for the imaginative, the courageous and the ambitious. We resist rigid rules and rely instead on universal principles.Laid side-by-side, a stick and a rope have a similar profile. Likewise, rules and principles look alike even though they have little in common.Rules are like sticks. You can prod people with them. You can threaten people with them. You can beat people with them. But you cannot lead people with them. When a rule doesn’t fit the circumstance, your only choice is to break it.Principles are like rope, able to be wrapped around even the most weirdly shaped problems. They are less brittle than rules, and stronger. Principles whisper priceless advice and people are happily led by them.A rule requires obedience.A principle requires contemplation.Simple people living in a push-button society demand simple rules.Wise men and women understand and apply universal laws.There. I have said it.Roy H. Williams

A brief summary of this episode

The Eye of the Storm is what we call the classroom in the tower at Wizard Academy. This name is doubly appropriate; not only is The Eye of the Storm a momentary escape from the buffeting winds of business, it was funded by Tim Storm, a wildly successful entrepreneur.It was the third day of a 3-day class. A hand went up in the second row.“Yes?”“What’s the next big thing?”The answer leapt from my mouth before he had even finished the question.“YouTube.”Everyone laughed. This confused me until I realized the class thought I was trying to be funny. Yes, of course, YouTube was already big.But not in the way I meant.Chad Hurley, Steve Chen and Jawed Karim founded YouTube in February 2005. Google purchased it the following year (2006) for $1.65 billion.YouTube was an idea whose time had come.During the 365 calendar days of 2011, YouTube delivered more than 1 trillion views. Viewership in 2012 was up by more than 40 percent: 1.46 trillion views. I mentioned that to you exactly 52 weeks ago. You might remember how I pointed out that one million seconds is about 12 days.One billion seconds is nearly 32 years.One trillion seconds is 31,688 years.A trillion is a lot.The statistics page at YouTube currently says the number of views delivered in 2013 was “50 percent more than last year.” This means they’ve jumped from 1 trillion views to 2 trillion views is just 24 months. It seems that you and I and the rest of the world are watching a lot of online video.Advertising begins a conversation with prospective customers that will be continued when they make contact with your company. This is why it’s important to educate your sales team about your advertising.Sometimes a customer calls to ask you a question. You answer. Sometimes they walk through your door. You greet them. But as Steve Wozniak wryly observed in 2010, “We used to ask a smart person a question. Now who do we ask? It starts with G-O, and it’s not God.”Your customers are gathering information through Google and YouTube. This means your website and your online videos are vital new half steps that fall between your advertising and your customer’s direct first contact with you. (You know I’m right because you’re doing this, too. You walk to your keyboard every time you have interest in a product or a service.)Are your customers finding the information they need?I’m not talking about Search Engine Optimization. I’m not talking about responding to customer queries made by email. I’m talking about crafting an informative answer to the question you believe your customer will ask and then posting that answer in a video on YouTube. You can also embed that video on your website. How many questions can you answer intelligently? That’s exactly how many YouTube videos you should create.Yes, I’m being serious.YouTube is often called “social media.” This is unfortunate because businesspeople tend to see “social media” as cotton candy that offers little real nutrition. Entertainment value is measured by the number of views a video receives. I am not suggesting that you should entertain the public, but rather that you should inform them. Information value is measured by how well you anticipate and answer your customer’s not-yet-asked question.YouTube delivers entertainment when we want to be distracted but it also delivers information when we are seeking answers. Google and YouTube give us unprecedented access to information, 24/7. This is changing the nature of sales training. As Steve Wozniak pointed out, we’re no longer seeking the opinions of experts face-to-face, we’re seeking them face-to-computer-screen. This is not how the world functioned a short decade ago.Welcome to 2014.Wizard Academy will soon be announcing the dates of our new online video classes. If you’d to receive advance notice of these class dates by email so that you can secure one of the 18 finely appointed, on-campus bedrooms at no additional charge, let Vice-Chancellor Daniel Whittington know of your interest and he’ll give you a 24-hour advance heads-up.Brother Whittington can be reached at 512-720-8801 or Daniel@WizardAcademy.org Capture the best you’ve got and make it available to your customer 24/7.We’ll show you how.It’s going to be a fabulous year.The future is here.Roy H. Williams

The official wedding count for Chapel Dulcinea in 2013 was 824 weddings. When I talk about the number of weddings performed each year at Chapel Dulcinea I usually say, “more than a thousand,” but it’s not because I’m lying.I’m just telling the truth prematurely. We’ll soon be at 1,000+ per year. I’m certain of it.If you make a declaration but you don’t believe it to be true, then you’re lying. But if you say a thing is true and you believe it to be true even though it hasn’t happened yet, “I’m there for you. I have your back, no matter what,” are you lying? Are you exaggerating? Or are you just telling the truth prematurely?Faith is the substance of things hoped for. Happy endings are made of it.Faith is the evidence of things not seen. It is proof of the invisible.Hope is optimistic expectation.Faith is hope with its sleeves rolled up.Faith is hope wearing working gloves.Faith is hope yanking the ripcord of a chainsaw.Faith is hope with a hammer in its hand.Faith speaks of that which is not yet as though it already were.Faith requires commitment.I have faith in the success of the companies for whom I write ads. I have faith in the abilities of my Wizard of Ads partners. I have faith that you will blossom like a rose when you visit Wizard Academy. I have faith that you will find what you need while you’re with us.Faith requires commitment and commitment is a choice. It’s not something that arises within you like courage. It’s not something that comes upon you like fear. Commitment is simply a choice.Are you willing to pay the price of commitment?The things to which you must say “no” are the price of your commitment.The things you must walk away from are the price of your commitment.The things you will deny yourself are the price of your commitment.Commitment comes at a price.Do you have hope for the future?Do you have faith in your plans?Does your faith have a hammer in its hand?Are you willing to pay the price of your commitment?If you can give me four yesses I’ll tell you your future:You’re going to have a fabulous 2014.Roy H. Williams