No B.S. Marketing to the Affluent by Dan Kennedy Summary

Most businesses target middle-class, middle-income customers. This is wrong. Dan argues that the middle class was booming after WWII but it’s gone now. Now we should market to the affluent.

No B.S. Marketing to the Affluent by Dan Kennedy Summary
Source: Dan Kennedy

Key Takeaways

  1. Most businesses target middle-class, middle-income customers. This is wrong.
  2. Dan argues that the middle class was booming after WWII but it’s gone now. Now we should market to the affluent.
  3. In good times, reinvest into your business and target more affluent customers so that you still make money in bad times.
  4. When selling, the affluent want to know how much work you put in to get your position. Your rags to riches story sells them on your product more than a list of features.
  5. Make a 'status' option for your products. Think of it as a VIP option. You can do tiered pricing.
  6. LGBTQ people are more affluent and spend more. It's worth it to directly target them.
  7. Boomers are the wealthiest age demographic. It's worth it to directly target them.
  8. The affluent that you are marketing to are the hustlers like you. They went from nothing to something. Their values are what you want to show in your copy.
  9. Boomers care about having traditional media appearances and dressing in a suit and not using slang.
  10. You can make one product ridiculously high priced just to make people perceive you as a luxury company. Like the $7000 monitor stand that Apple sells.
  11. Use packaging, pricing, and celebrities to sell. Make nice packaging. Price higher than the competition. Pay celebrities and influencers a lot to promote your products.  
  12. The affluent buy things for other people. They buy things for grandkids, girlfriends, wives, and pets.
  13. Part of a business is learning about your (affluent) customers. Get inside their head. What is it like to be them? What are their problems?
  14. 1 in 5 houses makes 50% of all the money. It makes sense to avoid the 4/5 and only market to the 1/5.
  15. "Affluent people have big libraries. Poor people have big TVs." - Dan S. Kennedy
  16. You need to write a book to win over the affluent. Your book is your business card.
  17. Make a personal brand. People are more drawn to individuals than businesses and corporate brands. Write a book, be a guest on popular YouTube channels, and make your own content.
  18. Content marketing: Make valuable information content for your target audience. Write a book. Make YouTube videos. Special reports/white papers. Blogs. Podcasts.
  19. Business power comes from profit. If you make more profit than your competitors, you can dominate. This allows you to give generous perks, amenities, and guarantees. Increase your prices.
  20. The affluent want NO hassles.
  21. The affluent want 24/7 human support.

Notes

Most businesses target middle-class, middle-income customers. This is wrong.

Dan argues that the middle class was booming after WWII but it’s gone now. Now we should market to the affluent.

In good times, reinvest into your business and target more affluent customers so that you still make money in bad times.

Most millionaires are in the US, Japan, Germany, and China.

Most of the top 400 list from Forbes went to non-Ivy league colleges or didn't go to college.

People who came from nothing and made it on their own will be against all handouts. (Except in severe circumstances like fires, hurricanes, or floods.)

The most successful men work their way to the top. When selling, the affluent want to know how much work you put in to get your position. Your rags to riches story sells them on your product more than a list of features.

The most successful women get rich through marriage, divorce, and inheritance.

Make a 'status' option for your products. Think of it as a VIP option. You can do tiered pricing.

LGBTQ people are more affluent and spend more. It's worth it to directly target them.

Boomers are the wealthiest. It's worth it to directly target them.

The affluent that you are marketing to are the hustlers like you. They went from nothing to something. Their values are what you want to show in your copy.

Boomers care about having traditional media appearances and dressing in a suit and not using slang.

Be an optimist. Always sell good news.

The rich are (sometimes even delusionally) optimistic. The poor are always pessimistic. The rich read Napoleon Hill and The Magic of Thinking BIG.

The rich are segregationists. They may claim to be progressive but they really want to feel superior to the poor.

The rich want to be in an elite and exclusive tribe.

The affluent believe that they are inherently superior to all others.

  • They want recognition of their superiority. Like kings and queens. They want products, services, and places that are only accessible by 'kings' and 'queens'.

The affluent are insecure in many ways. They are worried about going backward–losing status and money.

You can make one product ridiculously high priced just to make people perceive you as a luxury company. Like the $7000 monitor stand that Apple sells.

Use packaging, pricing, and celebrities to sell. Make nice packaging. Price higher than the competition. Pay celebrities and influencers a lot to promote your products.  

The affluent buy things for other people. They buy things for grandkids, girlfriends, wives, and pets.

The number of children is falling. The number of pets is rising. People spend a lot on their pets.

Some people, like rappers, basketball players, and Kim K. celebrities spend a lot on jewelry/bling.

The affluent want peace of mind. They are always bombarded with people who want their time and money. They will spend money on a vacation home to get away. Or a chef to free up time.

Part of a business is learning about your (affluent) customers. Get inside their head. What is it like to be them? What are their problems?

1 in 5 houses makes 50% of all the money. It makes sense to avoid the 4/5 and only market to the 1/5.

If you have birthday info, you can send out a happy birthday email to get them to buy.

Simplify your business as much as possible, but having a complex system can dissuade competition from copying you.

The affluent respond to recommendations rather than advertisements.

Make good content on social media. Be active–reply to comments and DMs.

  • Post between 10:00am and 6:00pm.

Do interviews with popular people in your field.

Either post information about your passion or show that you are similar to your target audience.

You need to tell your background, story, and credentials.

"Affluent people have big libraries. Poor people have big TVs." - Dan S. Kennedy

You need to write a book to win over the affluent.

  • Your book is your business card. Carry around a copy and give it to people when they ask what you do.

You need to position yourself as a leader in your field. This will shine a spotlight on you that most people are deeply afraid of. But we do not chase the spotlight to build our ego, we do it to grow our business.

Authority = expertise * celebrity

You want your name to become synonymous with your field. (Like Knees Over Toes Guy or Dan Kennedy or Russell Brunson in marketing.)

7 Pillars of Authority Marketing

  1. Branding and omnipresence: People are more drawn to individuals than businesses and corporate brands. Make a personal brand. You want to be "everywhere" your target audience looks. Write a book, guest on popular YouTube channels, and make your own content.
  2. Content marketing: Make valuable information content for your target audience. Write a book. Make YouTube videos. Special reports/white papers. Blogs. Podcasts.
  3. PR and media: Get on big shows and traditional news outlets
  4. Speaking: Stories, passion, and knowledge. Public speaking.
  5. Target audience: When you are invited to speak at an event it is not the speaker’s fee that will make you money. It is being an authority speaking in front of your target audience that will get you new clients and more money.
  6. Referrals: Writing a book allows people to easily refer you.
  7. Lead demonstration: Offer people a free report in exchange for their email.

Use current hero stories. Tell the stories about how your product worked for other people. Tell the story of the customer: what did life look like before your product? What did it look like after? People want to be featured as success stories–it raises their status (if your brand is high status). You can share these stories in marketing, ads, podcasts, etc.

Your customer success stories need to fit your market. They should have the same career/background. You want to frame it as an interview about their accomplishments. Have pre-planned and well-thought-out questions. Send the questions to the person in advance so they can prepare. But You don't have to follow the script. If you find a good story from their past you can go down it. Ask if you can record the call to make sure that you quote them correctly and maybe feature it in social media ads.

You can admit things that make the person seem human: Bill admitted that he didn’t start the course until 8 months after buying it. After losing 50 pounds, Jane gained back 10 pounds and later lost another 15 pounds. Don’t just stop with the conclusion. Paint a picture of what their life is like now. Ex) John’s business doubled and he and his wife were able to move into their dream home. Working just 6 hours a week, they now go snowboarding every weekend. Last year they took off 2 months to travel to Africa, where helped set up a school in a small town.

Having a good brand will make people have a placebo. They will think your products are more likely to work and that the products are better.

You can use references that only people in your target generation will know. You can use biography references, book references, and big words that the affluent will understand.

Business power comes from profit. If you make more profit than your competitors, you can dominate. This allows you to give generous perks, amenities, and guarantees. Increase your prices.

The affluent want NO hassles. They want 24/7 human support.

Ask people if they want a copy of your book and then send them a copy whether they want it or not.