PipemanRadio Discusses The Conversion Formula With Michael Barbarita

0:04 Hi, you love done too? Sure? Why create young? This is the pipe Man here on the Adventures pipe Man W four C Y Radio, and once again we have one of my favorite expert guests on this segment. Positively Pipe Man here every Monday and Man, if you have a business, you need to listen to Michael Barbarita because he has a wealth of advice and strategies that are specific to.

0:46 Your industry, your business. And on today's show, he's going to talk to us about the conversion formula. Now, I happen to love algebra and was very good at it, so I like formulas. Okay. So, but there's probably a lot of you say, oh, I didn't like algebra or I love the people that said, hey, I'm never gonna have to use algebra in my life. I don't agree with that. I don't know if this is algebra, but this is the conversion formula for success in your business. So take it away, Michael. Thank you very much, Dan, thank you again for having me. You know, when we were doing research for our book, nothing resonated with us in terms of helping the business owner improve their messaging. We look at we were researching all over the place. We had to go all the way back to nineteen thirty one.

1:43 Wow, and yeah, and. We found something that finally resonated with us that we could work with. And it was what we found is that it was stated that the keys to successful marketing is that you have to get into the mind of the conversation that's taking place in the mind of the customer. Now you know that's he's just said, then done, and but but the point is is that that's what resonated with us, and it also to expand on it further to enter that conversation that's taking place in the mind of the prospect. It's based on two emotional issues. Number one is the problem they have that the customer has that they don't want. They got this problem, they don't want it, they got they want to get rid of it.

2:33 And two, the solution that they want that they can't find. So the problem that the customer has that doesn't want solution they want they can't find, that's how you can enter the conversation that's taking place in the mind of the customer. So what we did is we took it one step further and we created what is called the conversion formula. Now, the convert formula is a four step formula that converts prospects into your into whether it's prospects into your sales process or prospects into your closing process.

3:13 It works the same way, but it is a convergent technique and it's a messaging strategy, which is in my view one of the most important things is messaging, not what platform you're on and all that. So the formula is a four pot formula. It needs to be done in the right order, otherwise it doesn't work like any other you know formula, and it's you know, if you have water, water is H two O two pots hydrogen, one pot oxygen. If I give you one pot hydrogen, one pot oxygen, you don't. I don't know what you have, but you know water. No, So the formula has to be followed in the exact order, and the formula stops with what we call captivate. And captivate is that problem that the customer has and doesn't want that if that emotional first hot button, it's a headline, or it's the first thing that you say in your networking group. It's the first thing that your customer comes in a prospect comes in contact with when they come in contact with your company. So if that first thing, second step of the formula is called fast fascinate, and that's the solution they want that they can't find. So you captivate them with the problem. You fascinate them with the solution. And then the third step is what we call educate. You see, because you use those two emotional hot buttons. The problem

4:47 they have, they don't want. The solution they want they can't find. Now you get their attention, because it's hard to get people's attention. But once you utilize those two emotional hot buttons and you do it correctly, you now have their attention where you can actually explain why your solution to that problem is superior to the competition. And if you look at the first three parts of the conversion formula, and if you understand that people buy based on emotion and then back up that emotion logically. The first two components are the emotional components to captivate, fascinate problem solution. The third is the logical component where you educate them on why your product is superior to the your solution is superior to the competition. So the conversion formula follows the way people buy based on emotion and backed up logically and then finally you hit them with the offer. And the offer needs to be very compelling.

5:45 And I know that we're going to be covering the compelling offer in the future show I think the next show. But that that is where, you know, it's easy for me to say a compelling offer, but we have five components to a compelling offer that talk about in another show. But I wanted to focus strictly on the conversion formula. So that's that's our conversion formula, and this is what we use on squeeze Pa every every form of communication and including your incoming voicemail. So so. What made you come up with this formula? Like, what what studies did you find out that told you these are the components they are necessary?

6:29 Well, it was a pop arat of studies. But but here's the thing. What what we were set what we set out to do is find a way, what we think is a relatively easy to understand way of explaining to the business owner the importance of messaging and here's how you do it. That I think was really that that's the crux of it. You know, we went deep into a lot of and like I said, I back to nineteen thirty one, I couldn't find anything that resonated. Wow. You know, with what with our thought process of trying to help a business owner understand that messaging is the critical component and how would they go about messaging? Is there a simple way to do it? And that's where we came up.

7:19 With the conversion for them. And how many people do you run into in your career that really don't even know what their messaging is? You know what we found, Dean, is that ninety five percent of business and financial strategies use today are identical to your competition and they don't work. So to answer your question, ninety five percent, it's really it's a very true and inaccurate number. And if you look at if anybody who's listening owns a business and they go to their competitives website, they're going to see the same stuff that they're doing, the same stuff, great quality, high lowest price, great location, great experience. You know, we're family owned, all that stuff that the customer really doesn't care about. They care about solving the problem.

8:14 Yeah. No, And you know it's funny you should say that because it amazes me how many people are the number one best bookseller. Like, have you noticed I've noticed that the other day I don't. I have not met and I've dealt with lots of authors through the years. I've never met an author that's not a number one best book and best seller. I'm it like boggles my mind how everybody's number one, you know, And I see it in this industry too. It's like people that claim that they're the number one podcaster and like according to who your your wife or your husband or you know, like I mean, because they don't have anything. But and what's interesting about that? I used to see it in the financial business too, you know. I would pick these money managers that were ranked number one for like the past fourteen years. A man I put my clients money in.

9:10 They lost money, but they never lost money before. And I was always even in that business where it's regulated, it's like, how do people get away with stuff? And what I found? Okay, it's gonna be interesting if you didn't know already. But in the investment business, there's actually a term that allows you to fluff it a little bit, and that's called puffery, and puffrey is not against regulations really. Yeah, So like if you do some yeah, So if you give something that's not factual, okay, that's against regulations. But some things can be subjectives that are puffery. Or if you add, okay, this is something you can do. You can add in my opinion. As you add in my opinion, it's like you didn't just give a fact ay, or it's just even here when we're doing podcasting, Okay, it's interesting.

10:09 So YouTube is very strict on what people say that maybe untrue, unfactual, violates certain things. And so basically when you read on YouTube how to avoid getting strikes or getting your stuff taken down, one of the big things it says is we won't take it down if it's your personal experience, your story, or in your opinion, and so it it's all over like that. So yet everybody in your industry is probably saying they're the number one bug killer to the number one car dealership, and maybe in some survey somewhere they are, and that's how they get away with it, you know, you know, it's like, but I think we have to dig deeper than that.

11:04 And the uniqueness, like you said, see, the fact is is if you're entering an industry and you're doing exactly the same units of your competition. Why do the people at your competition need to come to you if you're doing exactly the same they don't. That's right, that's right. And quick question I add to that. The word could in the investment world, like you could make a hundred times, is that it seems to be allowed too write. It is allowed as long as you balance it with risk. So it always used to be he always used to be like this, okay, So you invest ten thousand with me right now.

11:45 If this does this, you could make this okay. So you're adding these variables if it does this, okay. But then you also in that business have to go to the other side and say, but understand that you know, without risk there is no reward, and so you could also lose your. Money, you know. But going back to one of your steps, the offer, the offer, This applies to financial business, toy, because I did it a million times, okay. So if I could tell you that you could risk ten thousand dollars and you might lose it all, but you wouldn't lose more than ten thousand. But if this did this, you could make fifty thousand. Would it be worth it to you to risk the ten thousand to make the fifty thousand.

12:39 They'd say, yes, great, let's get started. And basically, you know, what you're saying to them is you're making a much better offer that is tempting to them. That doesn't necessarily have to be. It's factual if the if. Happens, but whether that if happens, yeah, and you never know too, because like you look at gold right now. I was I had people in gold at one hundred and fifty dollars an ounce. Would I have ever believed in a million years it would be at thirty three hundred bucks an ounce? Never in a million years. I was like, I remember, it was like fifty two was the old time high. That's because the Hunt Brothers cornered the market. But and so I used to pitch that, but I'm like, but it's never going to get to fifty two because that was an anomaly. But I'm sure you'd agree that from one hundred between one hundred and fifty and fifty are not fifty two. That was a silver gold eight hundred, I mean eight hundred ounce, you know between you know, one hundred and fifty and eight hundred, I'm sure you'd agree that you'd have a pretty good chance of making money, right, you know, stuff like that, and so yeah, it's interesting, like you make the offer has to definitely outweigh the risk is the first thing I think.

14:00 Of, right, absolutely, And you know, one of the things that we do a dean is inside reality versus outside perception. The inside reality of most companies is that they're fantastic yeah all right, and that they they really do some really great things. But the outside perception is it's just like everyone else because of their messaging. Yeah, you know how I prove that one By the way, go ahead, people that want to be a guest on your show or my show or any show on this network. Because when I get guest requests, I say, so, why should you be on my show? And the number one answer survey said is because I have great content?

14:45 Do you know what? Do you know what? My response to them when they say that is. So did everybody else? Yeah? I'm like, so do eight million other podcasters? Now what do you got? And that's where they need your help because they can't answer that second question because they're so focused on they have great content, right, and you know. Believe it or not. Where I really noticed where This really woke me up. The inside perception of the inside reality versus the outside perception is in the food business, you you would be amazed if you went to a food show, you would be amazed at the deliciousness of all these unknown food brands. It's unbelievable, unbelievable. The greatest sausage in the world is not in your grocery choice.

15:38 It's a small little mom and chop, mom and pop companies. And when I said, the inside reality there is that they got something fantastic, but the outside perception is that like every other sausage or whatever. Exactly. So, how do people reach out to you to find out more about this aspect of it and basically how they can talk to you to strategize for them to have the things that they need in their business. In other words, present you with the problem and you help them find a solution. Excellent. Yes, So what we do is a little different than most we help.

16:19 We ask. People to participate in a book interview because we're always updating our book because business is always changing. You know, a couple of months ago we were talking about high interest rates and inflation, and we still have to a degree, but we're also adding tariffs to the mix. So because of that, we believe our strategies work in any economic environment. But we'd like to constantly get industry information to prove what we already know. So we ask people to I'd love to interview any business owners that's listening for the next edition of my book. Just go to NEXTSTEPCFO dot net, forward slash contact and fill out the contact form and in the message section just put book interview and I'll send you a calendar link. And the way the book interview goes is it's sixty minutes on zoom. I present strategies from my book. I ask you what impact that strategy would have for business owners who would implement it in your industry, mostly an industry perspective, and then I document it to the book and that's it. And I promise you this, you'll learn business and financial strategies through that book interview that your competition isn't doing.

17:32 I love it. I love it, and you even have a free the current version of the book free to download for people and free advice on your podcast radio show. Tell everybody about that. CONNECTCFO dot net to download the book. It's free. Also, my podcast is sitting at Powerful Business Strategies dot com and our show is on Mondays at newn Eastern on w C four y dot com and uh uh my co host and I Chucky Obio uh run that show. And I'm gonna add something because you did. When I go and I interview like rock stars and I have them to do it a station, I d they do something you just did. What's that?

18:20 It's W four c y dot com. That's right, you said w C four y, which a lot of did you did? I say, I'm dyslexics. Everybody does it and that, but I think now people are paying attention more on that. Definitely gonna go to W four c y dot com for your show the same place day all right now so they'll remember it well. Thanks again for a great episode, great talk, and thanks for being on the Adventures of pipe Man. I'd love to be here. Thank you for listening to the Adventures of pipe Man on w for c u I Radio.