Gary Halbert · whole document (51)
2005 - 10-27-05
Basically what the casinos in Las Vegas are doing are taking bets from people who are betting against the sun coming up tomorrow.
What you want to do in this life is everything possible to put the odds on your side. Once you get the odds on your side, if you are anything other than a pathetic loser, you will go full-steam ahead.
Now let's talk about all those hard money lenders who won't consider helping anyone with a loan unless the would-be borrower has hard assets (preferably real estate) to use as collateral. What if you were able to spend some time with these guys and after talking to a couple hundred of them you found a few with half a brain? And you explained to them how they could get a lot more bang for their buck by investing in reputable, reliable and ethical direct marketing promotions. And suppose one of these guys decided to financially back your direct marketing endeavors. For this he would receive a return of 10% monthly on the money he had lent to you. That would be a bonanza for him. He would be making about 800% more per year on his money as opposed to the approximate 15% he would be making otherwise.
And, it would be a terrific deal for you also.
Let's go back to the way the 30-day hold most typically works. It is common for this technique to triple your results and double your refunds. In the first illustration I gave in this newsletter, it increased your contribution to overhead from $800 to $3,800.
Now suppose the $1,000 in advertising came from your savvy lender instead of out of your own pocket. And suppose you would pay him 10% per month (that's $100 for those of you who are really brain dead). Therefore, by using outside financing, you would have decreased your contribution to overhead from $3,800 to $3,700.
What this means for you who are mathematically savvy is, by using the 30-day hold, you would have decreased your profits from 475% greater than you would have without the 30-day hold... all the way down to... only 422% greater.