Perceived Value

SHOW NOTES: The airlines’ major frequent flyer programs began with American Airlines back in 1981 (thought Texas International Airlines had one in 1979). Everyone quickly followed. Travelers fell in love because they were earning free trips without paying anything extra for the ticket. You may feel the travelers were and are silly. Well, the average major airline today has a liability of about $7-10 billion if these points were all cashed in. Although there are attempts to squelch this with blackout periods and restricted seats available, this is none the less a very real monster under the bed. However, many people never cash them in or they the points may expire. Airlines and hotels figure the points won’t all be used. This is called “breakage,” believe it or not, and it’s the monster-slayer. Another example of this is the US Postal Service, which prints about $14 billion in postage stamps each year. But it’s estimated that over half of this amount is never used for postage because it goes into collections so there’s no attendant labor involved. I provide “unlimited access” to me for my top clients, both corporate and individual. That seems like it can’t be fulfilled, and many people ask how I can do it. It’s simple, virtually no one abuses the privilege. In fact, many people apologize for “bothering me” or ask if they can have an appointment. One year I had 36 corporate clients, and these days I have hundreds of these top echelon clients globally. They call when there’s a need and, since they’re so successful, the needs are relatively few and reasonable. This is my monster multiplier. Even successful solo consultants don’t generally offer this, and I’m probably the most approachable and reachable person at my level in the world. Use your airline points. Collect stamps if you like. But provide unlimited access. Then go sit on the beach.