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Special Report
Instant Distribution Empires
The Expert Guide to Under-The-Radar Fortunes for Microbrands &
Product Managers
10 Ways to....
Outwit
Outmaneuver &
Outsell
...your competition during any economic climate
J. Kennedy
Editor: Y.B. Adam
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Contents
Unconscious incompetence................................................................................17-18
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Comments@nextbigthings.org ….........................................................................38-39
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energy towards 5.
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thing as a recession.
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For many years, in one way or another I've operated in an ownership and leadership
capacity in what I refer to as a “Designer of product or service Distribution models”.
I tend to have a habit of seeing cracks or gaps within existing Distribution models, cracks
which are usually worth millions in revenue and brand extension opportunities if properly
managed and executed. Often times companies are profitable under their current
operating profile, more often than not however their profit models are under- developed.
My definition of an underdeveloped profit model is any model that leaves at least $500,000
uncollected dollars in profits on the table so to speak. And it's shocking to see how many
small companies, microbrands, and handmade artisans neatly fit this profile.
Not surprisingly I've noticed that a lot of microbrands of all design disciplines have a very
underdeveloped sense or narrow view of profit modelling. Most of it is due to their native
lack of interest in all things business. Creative types tend to be more focused and
interested in well... creative things. Natural of course, but detrimental to the business side
of well... their business. Often an even larger problem exist with creative types in that
their lack of business sophistication prevents them from seeking professional help from
someone who can actually transform their profit modelling. It's a classic case of
unconscious incompetence. You don't know what you don't know.
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Unconscious incompetence
During my 20 years as a Distributionist, I've noticed that business owners and brand
managers fall into 1 of 4 categories as far as their competence and skill in marketing &
distribution is concerned.
By recognizing which category you reside in & taking the action steps suggested below,
you can move up to the next level and significantly increase your profit from your
marketing initiatives.
You may even think you are a pretty astute marketer, even though to others, that is clearly
not the case. Egotistical small business owners who star in their own TV commercials and
entry level employees in "creative" positions at Madison Avenue ad agencies can easily fall
into this category.
Do you think you are highly educated or great marketer or brand manager, and blame the
lack of sales action derived by your marketing always on external forces or factors out of
your control, such as bad timing, a bad economy, or badluck? If you do, you are probably
guilty of dwelling within the unconscious incompetence zone. Hopefully you will find a
quick way out.
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With design and creative professionals often you are dealing with a tricky mix of Ego &
their destructive inclination to micromanage aspects of business that they don't fully
understand. It's just the nature of things, yet if many would simply idle their egos and
focus on what they do best which usually involves CREATING, they could develop
amazingly lean and highly profitable successful microbrands, some could even transition
into global megabrands.
My experience and observation within the design world has repeatedly proven that the
biggest commercial opportunities exist as a result of the good old fashion mantra of
“That's not how it's done in our industry”. It's also shockingly ironic how in an industry
which is so pregnant with creativity, the idea of wildly profitable distribution makeover
opportunities are sometimes treated as if you are trying to deliver stinky explosive
diareah!
It reminds me of how in the book “The Ultimate Success Secret” Dan Kennedy instructed,
“don't waste your time trying to present these materials to the people who need it the
most. They won't buy it. You should focus on selling to successful people who want to get
even better”.
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Admittedly I have a soft spot for all things design and a big part of my outreach inclines
towards smaller indie designers or microbrands, in a sense the design world takes me back
to my roots.
When I was in my early teens I wanted to pursue a career in fashion design and fashion
merchandising, but my father absolutely did not support my design inclinations and
aspirations. He was ultra homophobic and whenever he attended any function of mine
which was artistic or design oriented he noticed the presence of my teachers and many of
my design peers who had a little “too much sugar in their tanks” so to speak. That was
not the influence that my dad wanted me to surround myself in, it didn't matter that I was
a card carrying skirt chaser, it was the environment that was undesirable to him, plus
“God” and my mother were on his side, so I was outvoted, and I ended up in business and
trade.
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Larger companies are not immune from maximizing their profit models either,
knowledge gaps and cracks abound within companies with teams of highly educated and
experienced commercial minds. Regretfully from one of my larger clients, I've
professionally witnessed some of the coolest Distribution ideas, executed in the worse
possible way, all because of entrenched corporate egos and a stubborn and fatal resistance
towards unconventional change, more of that “That's not how it's done in our industry”
mindset.
This supersized ego joined with a committed refusal to adjust properly cost this one
corporate client over 2 million dollars which can never be recovered from that specific
Distribution model again, a Distribution model which I co developed from the ground up,
not to mention millions lost in future earnings. Luckily for the client, the loss was barely
noticeable. Note to self: It's more pleasant to work with smaller companies, less
entrenched dysfunctional egos, plus microbrands cannot afford to “write off”, over 2
million dollars in Research & Development at the behest of the almighty ego.
Sometimes even when someone makes an investment in your information assets, for
whatever reason they ignore your recommendations and “strategery”. I'm not
complaining I'm just explaining. In life the truth is you get the good and the bad, the
successes and the failure, the important aspect is finding the positive beyond the negative.
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Plus failure is a great teacher, when you experience failure your entire thought process
becomes atypically superior, si.nce you obsess over not repeating the emotion of failure.
The flip side to that negative client experience is that I've been involved with another client
who trusted me to design and implement a strategic int'l Distribution strategy which
increased his sales by over 300%.
This was a Distribution Strategy & Zone which never crossed his mind, nor entered the
thoughts of his management team, yet within 90 days this single & ignored under-the
radar Distribution Zone matured to represent 70% of his companies entire sales volume.
Did I mention within 90 days!
This represents just one example and the power and possibilities of how a lean elite
Distribution Strategy Zone can increase your profitability when a fresh set of experienced
eyes or unconventional thinking is involved.
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Below:
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1) Cruise Lines: Through a client engagement which included a retainer and share
ownership, I've made a lot of money in this market segment, and I would wager
that I learned more about successful global operations than any London or
Wharton Business School graduate could hope for in such a compressed amount
of time. Like all other disciplines of business, winning the game requires a skill
that is metaphorically equivalent to swimming in a pool of sharks without being
eaten alive.
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steady and profitable. And what would a thriving city be like without it's
endemic politics? This industry is hyper political, as are most industries with
massively profitable opportunities. Aligning yourself with the right political
dimensions is the only way to gain access to, succeed and to avoid regrettable
outcomes. A true sleeping giant, under-the-radar absolute money while you
sleep cash cow. The authentic epitome of profit autopilot.
2) International Chain Retailers: The top 250 world-wide retail chains account for
over $3 Trillion of sales, that's Trillion with a “T”. Approx 1/3 of the estimated $9.0
Trillion retail sales world-wide. The largest retailers outside the US tend to cover
many categories and are multi channel and multinational. US companies account
for 36% of the number of companies on the list and 44% of the sales.
3) Joint Ventures: (with any other type of company who currently sells a product or
service to your market are well worth considering if you have experience and
know how.) There is a strategic approach to succeeding in joint ventures and with
few exceptions most of what I've seen published online is outdated and materially
misleading.
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4) Resorts: These are worldwide and highly segmented many by affinity interest,
another true under-the-radar gem if you know what you are doing.
5) Hotels: These are worldwide and highly segmented, another true under-the-
radar gem if you know what you are doing. Rinse and Repeat, sound familiar.
6) Credit Card Inserts: Have any idea how many people receive and respond to
solicitations within credit card inserts, there is a HUGE % of people who purchase
goods and services via the convenience of Credit Card Inserts. There are over 600
million Credit Cards in circulation in America alone. 1 in 7 Americans hold 10
cards. Have you ever put together a lucrative targeted residual sales campaign with
a credit card services provider? I have.
7) Infomercials & Direct Response Television: I'm sure it comes to a complete shock
to you that there is in fact a very good reason why infomercials and DRTV never
seems to go away, “if it aint broke don't fix it” comes to mind. A multichannel,
multibillion dollar Global industry hungry and constantly on the prowl for
innovation for the sole purpose of creating Distribution Blockbusters and a lot of
profit for the DRTV investors.
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The top most desireable catalogue retailers distribute millions upon millions of
mail order catalogues annually, for a microbrand using this method, the value of
succeeding with this one strategy alone can very rapidly convert a low revenue
producing microbrand into a lean massive under-the-radar low maintenance
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cash cow.
Given the optimal choice, which microbrand or product developer wants their
product to be buried between the pages of other vendor's products within a
major retail catalogue or magazine of proven buyers , when you could
strategically guarantee landing the cover and optimize your brand recognition
and sales output! Moreover theres an added benefit in sales trajectory and
distribution echo when your product or service is “profiled” by the magazine or
catalogue in editorial format instead of just being placed along with other
products.
Imagine for a second if you have that killer design, product or service that you
just know would sell, and imagine what impact it would have on your life and
your brand if your creation was on the cover of one of the worlds most
prestigious catalogues , a publication where more than 18 million women use as
an absolute “must have” shopping guide! Close your eyes for 20 seconds and
imagine howthis level of FREE exposure would change your life.
The Magazine Cover Strategy Method can be used to target any industry
publication traditional or digital, and is very adaptable to any design discipline
and product invention. All that is required is an easy change to a small part of
your operating pardigm. It's the ultimate inside information guide that could
genuinely and quickly change your life forever.
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The natural transition for a designer or product owner or marketer armed with
the caliber of inside information presented within the Magazine Cover Strategy
Method is a plush and happy life, filled with more lifestyle options and
liberating opportunities.
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The Magazine Cover Strategy that I developed and have never seen used before
or since, was really a cross -pollinated idea repurposed from another industry,
(the DRTV industry to be exact) and it worked every time I used it without fail!
Their was a bit of important “side irony” involved with this product in the few
weeks before I had my private meeting with Guthy Renker and subsequently
a different meeting regarding the same prodcut with Kodak corp.
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Before that event, another Private Equity company contacted me and offered
to partner with me for 51% of the company. In short, for controlling interest
in the company, the offer was for them to supply the cash and sales
vehicle and to acquire dominant control of the company. I injected this “side
irony”into the mix because I want all of you to understand something.
There are plenty of ways a deal can be cut, Angel Investors, Solo efforts,
Private Equity, Complete buyouts, Licensing deals, JV's etc. But if you have
a hit product which is properly protected, stick to your guns and always
retain the controlling interest in your company. Some people don't agree
with that positition for various reasons, and sure there are exceptions to my
advice, but in a broad sense you're better off maintaining control of your
product. I ended up shifting my original marketing focus and distributed
the product through a cartel of top PMC (Private Military Company)
suppliers.
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Another essential point is, by following my instincts I didn't accept a deal that
would erode my majority ownership with this amazing product, and shortly
afterwards I developed my own proprietary method for lazer targeting and
attracting the exact caliber of partner that I wanted to do business with for ANY
product or service that I'm attracted to. Even better, I managed the entire process
where the deals are fair, risk free, and non predatory.
One time I used the Magazine Cover Strategy for another one of my
products which was not even a product at the time, in all honesty it was an
IDEA for a product / a product concept that excited me after watching a movie!
Gotta love that Hollywood inspiration.
Using my personal Magazine Cover Strategy, the President of one of the worlds
largest national catalogue merchandisers rang me within 20 minutes of receiving
my message, his intent was to place an order worth $70,000 in profit to me on a
$300,000 Prepaid Purchase Order. Not too shabby for a product design
idea which I developed in only two hours time and after watching a movie.
Anyone who has ever done business with a major national retail
catalogue merchant knows that the idea of a company President ringing you is
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abnormal, since there are many subordinates who deal with the likes of buying
and product evaluation. The idea of the company ignoring their standard
industry mantra of 30 or 60 days net (on ready-to-ship warehoused inventory)
as their accounting rule is even more unheard of. After that experience the
President of that company and I developed a direct friendship and commercial
relationship.
10) Licensing: Accounts for over 100 Billion dollars annually worldwide.
Ok so maybe you've thought of this already, but the reality is less than 10%
of entreprenuers get products licensed. According to the USPTO 2009 report,
about 2% of inventors succeed in licensing inventions. Licensing is great if you
have the right approach. Do keep your eyes open for opportunities which
might fall beyond your comfort zone because that's probably where your
most success will come from.
Naturally the 10 Distribution Zones mentioned above are highly lucrative and
highly competitive. Most of these Distribution Zones use vendor qualification
methods which most microbrands don't even qualify for, or the sheer amount
of paperwork presents a barrier of bureaucratic impediments. For these
reasons, we have established Nextbigthings.org. A Free access platform for
strengthening Distribution and sales profitability within unexpected under-the-
radar profit zones. If we love what you do we can do a deal, cut through all of
the high level bureacracy and get your product a lot of sales and profit velocity.
No matter how you slice it, no one is in “business” to lose money. You might
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not have grand Distribution ambitions but chances are if you are ready this
report, you at least recognize that there is room for improvement for your
existing Distribution strategery.
Often the catalyst that can deliver the most positive outcome takes nothing
more than a little bit of extra effort, or small baby steps towards the right
Distribution direction.
Some industrial designers and microbrands are attracted to Dawanda, Shopflick, Gnr8,
Unicahome, Etsy, BigCartel, Artfire, Yanko Design, Trendyindie, Ponoko, Bonanzle, etc as
a Distribution platform, and these are excellent Distribution platforms. But the reality is,
creative types of all stripes can profit substantially from their own creativity and land
lucrative distribution contracts if they know what they are doing. Most could honestly
profit enormously by simply having a more academic approach to their online marketing
strategies.
And regarding handmade stuff. Just because something is “handmade” does not mean
that it cannot be “mass produced” in a hand made manner, by your handmade standards,
and Distributed on a mass scale. Sure some things are just too intricate to mass produce,
but the majority of handmade gear that I've seen in many category classes can be more
aggressively distributed in any number of under-the-radar Distribution Zones, and at a
substantial profit to the product creator. And who doesn't prefer more profits for less
work; at the end of the day you are in business to be successful.
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Winding down:
I personally am of the view that there are a lot of progressive things that can be done for
most microbrands, designers, and product innovators. Lucrative Distribution Zones which
are being completely ignored by traditional thinking, the redundancy of boring “me too”
marketing, institutionalized tunnel vision & suboptimized Distribution concepts. These
are Distribution Zones that can advantage your brand extension or product line with
noticeable and often times under-the-radar profitability, and any idea that you shouldn't
pursue them I think would be unwise.
In this report I've listed 10 Distribution Zones, however over 50 exist that I'm aware of,
my 2 favourite Distribution Zones I have not even list here, I'll save them for another
occasion. During a 20 year active leadership role in designing and managing profitable
Distribution strategies, I have a clear sense of what will work with your product or service.
Invest quality time in examining these alternative Distribution Zones strategically, I'm
certain you will discover compatability with your product line or service, better yet find
an amazing Distribution Zone that you would like to access and develop a product which
is compatible with that specific Distribution Zone.
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J. Kennedy, MBA*
Editor: Y.B. Adam
A Direct Impact Ventures Ltd. Publication
Copyright © All rights reserved.
The factory of the future will have only two employees, a man and a dog. The man will be there to feed
the dog. The dog will be there to keep the man from touching the equipment.
-Warren G. Bennis, University of Southern California Professor of Business Administration; advisor
to Ronald Regan and John F. Kennedy. The 4-Hour Work Week, Timothy Ferris.
Most interdisciplinary microbrands, entrepreneurs, designers, brand managers, product creators, and
self representing artisans don't start out with automation as a goal. This leaves them open for mass
confusion in a world where business gurus rarely agree. Consider the following:
“A company is stronger if it is bound by love rather than by fear... If the employees come first, then
Your Free Unlimited Product Reviews are Only A Click Away, Just Visit:
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J. Kennedy
Editor: Y.B. Adam
http://www.youtube.com/watch?v=dCagoLeoMx8
© A Direct Impact Ventures Ltd. Publication
Profitable Distribution Systems via Land, Air, and Sea!
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they're happy.!
-Herb Kelleher, cofounder Southwest Airlines.
“Look, kiddie. I built this business by being a bastard. I run it by being a bastard. I'll always be a
bastard, and don't you ever try to change me.”
-Charles Revson, founder of Revlon, to a senior executive within his company.
After reading the aforementioned ideologies, define which you incline more towards. The conflicting
advice rampant in many current publications normally applies to managing people or employees,
managing the “human element”. Herb recommends a tree hugger approach to employees, Revson tells
you to mash their nuts and show them no mercy, Miranda is an absolute uncompromising beyaaach,
but I'm suggesting that you solve the problem by diminishing the human element.
Once you have a product that sells profitably, it is wise to design a self-correcting business architecture
that runs itself. Ideally the architecture will be a hybrid model which involves offline and online profit
centers.
Self-correcting a business architecture is really not as hard as it may seem. In today's world automation
enables intelligent microbrands to operate at peak efficiency and with the productive force of an entire
traditional physical staff, yet with greatly reduced administrative cost, and at an accelerated production
rate. From my experience working with clients in various businesses, I've learned that as a result of
knowledge-gaps, microbrands especially are inadvertently standing in the way of their own optimal
success and profitability.
I'll discuss this in more detail soon. No fluff, no fillers just facts based on failed and successful
experience and observation. I got a bit off topic with that side rant about automation etc. The truth is
Your Free Unlimited Product Reviews are Only A Click Away, Just Visit:
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J. Kennedy
Editor: Y.B. Adam
http://www.youtube.com/watch?v=dCagoLeoMx8
© A Direct Impact Ventures Ltd. Publication
Profitable Distribution Systems via Land, Air, and Sea!
37
the automation approach is not for everyone. Some people require a lot of social interaction with
colleagues and people, and that's all good, you have to incline towards whatever works for you.
If you operate within the spirit of..“That's not how it's done in our undustry” It would not surprise me
if you are missing out on a Distribution opportunity gap which could treble your sales capacity, and it's
only a short matter of time before you get creamed in business by an enlighted competitor, then you will
wish you had paid attention to this Special Report, this is opportunity knocking.
If you require an extreme inspiration to take this Special Report seriously and to prioritize alternative
Distribution opportunities, just Google “The dumb ass who sold 10% of Apple Computers for $800”.
Short version of a long story... Ron Wayne, the co founder of Apple Computers didn't share the Vision of
Steve Jobs and Steve Wozniak, his then partners, and had Ron Wayne not sold his share of the
company for $800 bucks, that share would have been worth 22 Billion dollars today! I did note that it
was extreme inspiration.
Most of us have a set way of solving any problem, a tunnel vision of sorts, some entire industries
operate this way. So the solutions we come up with usually fall within a fairly narrow range and are not
as muscular as they could be.
Have a comment about Instant Distribution Empires, any comment? We value your
opinion and we aim to improve this report as we continue to grow our reader base.
Tell us what you think, just send your uncensored comment attn: “Sylvia” by emailing:
Your Free Unlimited Product Reviews are Only A Click Away, Just Visit:
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J. Kennedy
Editor: Y.B. Adam
http://www.youtube.com/watch?v=dCagoLeoMx8
© A Direct Impact Ventures Ltd. Publication
Profitable Distribution Systems via Land, Air, and Sea!
38
Comments@nextbigthings.org
As a special thank you and a blatant bribe, by entering your comment, I'll send you a free
copy of “Distribution Maverick: The Raw Like Sushi Guide To Explosive Profits For
Microbrands & Inventors
Like all of our Special Reports, this is a short concise publication. It also includes my
personal 2 favourite methods of Distribution which are not listed within this report.
Guranteed not to disappoint. If sky rocketing your microbrand and profiting during any
economy appeals to you, then you'll apprciate this report.
Your Free Unlimited Product Reviews are Only A Click Away, Just Visit:
http://nextbigthings.org/safeProductEvaluation.html
J. Kennedy
Editor: Y.B. Adam
http://www.youtube.com/watch?v=dCagoLeoMx8
© A Direct Impact Ventures Ltd. Publication
Profitable Distribution Systems via Land, Air, and Sea!
39
The strategies presented within Distribution Maverick can be applied to all Design
disciplines, product managers, and product owners, and will elevate your ambitions and
profits to a higher level.
Discover my 2 favorite Distribution Zones which were not mentioned here, and get your
free copy of Distribution Maverick: The Raw Like Sushi Guide To Explosive Profits For
Microbrands & Inventors.
Distribution Maverick is free for all members, Just send your uncensored comments to
Sylvia about the report you just read to: Comments@nextbigthings.org
Aloha,
Jon
Your Free Unlimited Product Reviews are Only A Click Away, Just Visit:
http://nextbigthings.org/safeProductEvaluation.html
J. Kennedy
Editor: Y.B. Adam
http://www.youtube.com/watch?v=dCagoLeoMx8
© A Direct Impact Ventures Ltd. Publication
Profitable Distribution Systems via Land, Air, and Sea!
40
Your Free Unlimited Product Reviews are Only A Click Away, Just Visit:
http://nextbigthings.org/safeProductEvaluation.html
J. Kennedy
Editor: Y.B. Adam
http://www.youtube.com/watch?v=dCagoLeoMx8
© A Direct Impact Ventures Ltd. Publication
Profitable Distribution Systems via Land, Air, and Sea!
41
Your Free Unlimited Product Reviews are Only A Click Away, Just Visit:
http://nextbigthings.org/safeProductEvaluation.html
J. Kennedy
Editor: Y.B. Adam
http://www.youtube.com/watch?v=dCagoLeoMx8
© A Direct Impact Ventures Ltd. Publication
Profitable Distribution Systems via Land, Air, and Sea!