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He's known as the Red Rocker, the guy with the funny hair that wrote "I Can't Drive 55" and the singer that replaced David Lee Roth in Van Halen. He's sold over 28 million records spanning a thirty year career, and toured the world many times over. But his greatest success came not on stage or in the studio, but rather in the boardroom. On May 7, 2007 Sammy Hagar announced a deal with Skyy Spirits to sell an 80% stake in his Cabo Wabo tequila brand. Hagar's cut? A cool $80 million.
Read that number again. Eighty-Million Dollars. That's an eight, followed by a zero, followed by three zeroes, followed by three more zeroes. And he still owns 20% of the company!
So how did that come to be? How did this lazy rock star end create an $80 million company? Here's the story. Years ago, while Hagar was singing with Van Halen, he vacationed in a small Mexican coastal town called Cabo San Lucas. While there, he fell in love with the weather, the scenery, and the laid back lifestyle. Eventually opened a bar called the Cabo Wabo Cantina. Soon after, he began searching the area for a great tequila to serve at his bar. Eventually, he found a small, family run tequila factory and created a brand called Cabo Wabo tequila.
The high-end tequila, in its distinctive hand-painted blue bottles, sold for $50 a pop - more than triple the price of a typical tequila. Yet people paid, and the brand grew. Eventually, Hagar opened a second cantina, and even brought his show "on the road" with a concert tour dedicated to the "Cabo Lifestyle."
And it's in that detail - the Cabo Lifestyle - that we find our marketing lesson. While Cabo Wabo IS a very fine tequila, the money is not in having a great product. The money is in creating a compelling story around the great product. In this case, drinking Cabo is not just another margarita, but rather it is an experience - a slice of the beach lifestyle, and a mini-vacation. There are Cabo T-shirts, and sunglasses and hats. There are shot glasses, posters, and neon bar lights. Hagar has even written several songs about the brand (Cabo Wabo and Mas Tequila to name two). The Cabo lifestyle is fun and carefree, but certainly not free! And it's paid Hagar back to the tune of $80 million.
So how can we apply this information to our own business? Take a look at everything that displays your company name. Are you projecting an unified image of fun and prosperity? Do people WANT to be associated with you and your company? And are they willing to pay a premium price to be part of it?
Now might be a great time to re-invent your company and to give your image a facelift. Think creatively, and try to picture what you can do to increase the FUN factor in your business. Make your customers and clients feel that they are part of an exclusive club. Focus your marketing so that your product doesn't just solve a problem, but rather enhances their lifestyle.
Once you understand the information above, you may be ready for more. I just created a free video that reveals the #1 Secret for turning generic, boring writing into compelling text. This is a technique that even most pros don't know (and they are amazed when I show them how easy it is). Go to http://www.FictionSecrets.com right now to see for yourself.
Kevin Franz is a successful fiction author and online marketer. For more than twenty years he has made his living putting words to paper, and he has helped thousands create their first written works. He is currently showing internet marketers how to incorporate the techniques of great fiction into their online sales efforts. You can find the details on his blog - http://www.kevinfranzonline.com.
What Is On YouTube Today?
Sammy Hagar at the Cabo Wabo Pavilion (Sammy's home in Cabo San Lucas)!!
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