In a recent article written for a Legal Publication on how lawyers can effectively market their practice, I mentioned one of my favorite books, The E-Myth as it pertained to systemizing one’s business operation. In both my writing and live presentations, I often refer to systems, and personally define a system as, “The process of predictably achieving a goal based on a logical and specific set of how-to principles.” As E-Myth author, Michael Gerber says, “Systems permit ordinary people to achieve extraordinary results, predictably.”

The key is predictable results.

The following is a question I received from a reader of that article and below that, my response:

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“Mr. Burg – In your recent article, you refer to E-Myth principles but then talk about the importance of my referral sources knowing, liking and trusting “Me” and that’s why they refer. As I understand, The E-Myth is all about systems and that the system we develop is what our referral sources need to fall in love with so that the business can succeed and grow without me.

“Now, maybe that system is built around principles that would make a referral source want to refer to me such as trust, competency, etc. but it is the system that must embody those traits and, if it does, it makes the question of “who” is serving the client irrelevant. As I understand The E-Myth idea, it is that the systemization of my law practice frees me up to work more on the business development side of the business or to go fishing.

“We are struggling with this right now as a new firm trying to apply E-myth principles and build a firm the right way. I think a law firm does have special circumstances because, as you point out in your article, the attorney themselves have traditionally been what attracts and retains the clients. However, I still believe E-myth principles can and should be applied to a law firm trying to go somewhere. I am most anxious to hear your thoughts on this matter.

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My response: My reference to The E-Myth (a book I believe is outstanding) was in terms of pointing out the benefits of having a system. I wasn’t really referring to any of Mr. Gerber’s teachings, aside from that.

In the case of my article, the “System” I’m talking about is, what I call, the Endless Referrals System. And, the Endless Referrals system is — by its very nature — used by individuals. So, to take the “person equation” out of it would be to simply render it unusable.

While I believe that Mr. Gerber is absolutely, positively 100 percent correct in the importance of utilizing a system, I don’t believe that it is any contradiction in terms to say that plugging good people into your system in also important.

I’d go back to, what I call, “The Golden Rule of Networking/Business” which is: “All things being equal, people do business with, and refer business to, those people they know, like and trust.” A person can “go through the motions” of using my system but they — as a person — being good at what they do, being true to their word, being a person who truly adds to the life of others, is what makes the system work.

One challenge (and, this is just my opinion, of course) is that sometimes, when we are exposed to some absolutely tremendous teachings such as those shared in The E-Myth, we are tempted to take certain concepts to an extreme. Again, in my opinion, to leave the “people equation” out of the issue would be absolutely counter-productive. And, that is never suggested by Mr. Gerber.

Now, with that said, I believe you are totally correct that E-myth principles can and should be applied to a law firm trying to go somewhere. And, that the systemization of your law practice will free you up to work more on the business development side of the business or spend more time doing those non-work activities you might prefer doing, such as fishing or being with family.

All that is true. And so you’ll work with the different people/positions in the firm to make that happen. Remember, however, he also says that, early on, you might have to do a lot of those things yourself. Possibly (and, of course I don’t know your particular situation) you need to begin at first being the rainmaker; perhaps the Endless Referrals System being one method for doing that.

As you see great results, you can teach the system to the new associates you eventually bring on, and they’ll be doing that more and more themselves (and you’ll begin to go fishing more and more). Of course, the other aspects of running your firm will need to be systematized, as well.

I hope that helps, and I wish you the very best of success.

So, friends, let me ask you for your feedback. How do you see the relationship between the system and the people within the system? Do you agree with my thoughts? Disagree? Let me know.

In Part 1 we discussed how important it is to be able to define a term. This is really for two reasons:

1. So you truly understand it yourself. You’d be surprised how many people tell me they are absolutely, totally and undeniably against Socialism . . . and then in the next sentence tell me their socialistic program that is going to fix our country.
2. So you can logically discuss an issue with another person. If the two of you are discussing a certain concept — such as the one in this article — which you both define in different ways (without each other knowing it) than there is simply no way you can ever come to a legitimate agreement.

Remember the phrase, “Even the most logical argument — if based on a false premise — can never lead to a correct conclusion.”

And a correct premise begins with a correct definition.

So, let’s define Capitalism and Socialism:

Capitalism: An economic system in which land, labor, capital and other resources are owned, operated and traded by private individuals as opposed to through government control and/or central economic planning. Property is privately owned and goods are privately produced. Also referred as the Free Enterprise System. The individual has all rights to his/her possessions.

Socialism: An economic system in which labor, capital and other resources are owned, operated and traded by a central government and/or central economic planning as opposed to private individuals. Property is publicly owned (italics Burg’s) and goods are publicly produced. The individual has no rights to any possessions because he/she doesn’t actually own anything.

The italic is because “publicly owned” means the government actually owns and controls it 100 percent. The “public” (individuals who supposedly are the owners) have no say in the matter in any way, shape or form.

*Before we go on, please recall the fact from Part One of this series that the U.S., while at one time relatively close to being a pure capitalist society, is no longer such.

Let’s now look at the defining characteristics of each of these terms:

Capitalism:

1. Voluntary trade as opposed to force. Business can only take place through cooperation since, in a truly capitalistic society, one person cannot be forced to buy from another.
2. Value rules. If the seller does not provide an equal or greater amount of value than the financial cost of whatever he or she is selling, the prospect probably will not buy.
3. Businesses will be rewarded (by the consumer) for doing things right and punished (by the consumer) for doing things wrong.
4. Government’s only legitimate functions are to protect the citizenry against force and fraud.

Socialism:

1. Force as opposed to cooperation. Since the government controls everything, they decide who buys from whom, what they buy, what they pay, etc.
2. Value is . . . well, not valued. It’s not important for a producer to focus on providing value when it’s not up to the consumer as to what they can or cannot consume.
3. Business will typically not be rewarded or punished by consumers; they will be dealt with by bureaucrats and politicians however they see fit. Good for the consumer and good for bureaucrats/politicians are not necessarily the same thing.
4. Government’s legitimate function is . . . everything. This, of course, probably means they are good at very little . . . except using force to keep the people in line.

Results:

1. In truly capitalistic societies the standard of living is far better for the masses. The poorest in a capitalistic society is considerably better off than their counterparts in socialistic societies.
2. There is a much larger middle class in a capitalistic society than in socialistic societies, where there tends to be, percentage-wise, a tiny amount of extremely wealthy people, a larger but still small middle class, and a huge amount of poor and desperately poor. (Unfortunately, this is exactly where our increasingly socialist society appears to be taking us.)

The key point — THE premise: Capitalism is based on cooperation while Socialism is based on force.

Sub-point — Any program (via legislation) that results in one person being forced to give up what he or she has earned in order to hand it to a centralized government which then re-distributes it to another is a socialistic program. Let’s not discuss here whether that is good or bad; let’s just agree that that is what it is, according to what you have read above.

In Part 3 we’ll look a bit deeper into this and see where some dangerous misunderstandings about these two concepts come into play.

One of the best things about co-authoring a book entitled The Go-Giver is that John David Mann and I constantly receive stories from people about Go-Givers they either know personally or have learned about. Such is the case with our friend and “Personal Walking Ambassador” Becci Hall, who sent us a link to a great story written by reporter Jared Strong that appeared in the Des Moines, IA newspaper, The Register. (Unfortunately the link to the story can only be accessed through membership to their site.)

Apparently, the Anderson family, which includes a Father and two sons, bought a dry-cleaning store so they could do something together as a family. Looking for ways to promote their new enterprise, Crown Cleaners, they asked themselves how they could provide immense value above and beyond simply doing a good job . . . dry-cleaning clothes.

Here’s what they came up with:

They randomly refunded dry cleaning bills for customers who promised to do an act of kindness with the money for those less fortunate within their community.

Yep. Simple as that. And, some of the patrons have done some very creative things, adding significant value to the lives of others greatly in need.

While it was promotion, it was also something totally in alignment with the Anderson Family values.

Business is great for the Family Anderson. Even in today’s business climate, they are expanding their operation with more stores.

What creative ways can you find to add value to your clientele that will also help you and your business to thrive? As the Anderson’s taught us, that value can even be helping your clients add value to others.

Share with us your thoughts.

I was recently asked, “Why do you and so many other authors on sales put so much emphasis on our using testimonial letters?”

Tell me; which will more effectively persuade you to buy my “widget” – If I, the salesperson, tell you how great it is? . . . or if your neighbor, or friend, or co-worker or anyone else you respect (personally or their position), tells you how great it is?

Exactly! (Well, “Exactly!” assuming you answered the way I wanted you to)

So, make it a point to obtain testimonial letters from every one of your ecstatic customers or clients. Then, during the presentation, volunteer to allow your prospect to read whichever letters you feel would be most appropriate.

Hint: Highlight certain key phrases to make it easier for your prospect to find the relevant phrases or information. Also, if you’ve been in your business for more than a week, you’ve
most likely heard every objection you’ll ever receive regarding your particular product or service. Let your testimonial letters help you overcome whatever objections you are given.

Example: When the prospect questions your company’s ability to deliver on the appointed date, gently show your prospect a testimonial letter expressing how delighted your client was at the expediency of the delivery process. Utilize this tool in order to handle all of your regular objections.

Keep in mind, with technology as it is, you can place video, audio and written testimonials right on your website.

Example: I do a limited number of engagements open to the pubic (as opposed to my presentations at corporate conventions) and, for these, where the audience is not “captive” and we are trying to persuade potential attendees who are not familiar with my work to attend, we have testimonial endorsements for them to see as soon as they arrive at the main page of the site. Notice the immediate audio testimonial, as well as the written ones. And, yes, they extend throughout the page, combining audio, written, and photos.

I encourage you (if I may) to find ways to use testimonials, testimonials and more testimonials in various forms to help you more effectively communicate the excellent value you can provide to your prospects, customers and clients.

It’s been said you can never have “too many” other people selling for you. Well, maybe at a certain point, but it would reeeeally have to border on the obnoxious for that to happen.

Remember what the great copywriter, Joe Polish says, “What others say about you {or your product/service} is infinitely more believable than what you say about you {or your product or service} . . . so let them say it.”

What are your thoughts on the value of utlizing testimonial letters? Feel free to share with us.