In my Amazing Formula That Sells Products Like Crazy, I introduced you to Walter "Itsy Bitsy" Hailey and Steve Anderson (head honcho at Walter's company, Planned Marketing).

Walter and Steve call this "overhear psychology"...which means that people attribute more credibility to statements made by a third party than those made directly by you.

My magic show business boomed because I used the power of endorsement (at a very basic, rudimentary level). When the kids got home, they raved to their parents about the show. Their parents, in turn, called the host or hostess and asked about my mystical talents. Before long, my phone would ring with another booking.

Of course, it helped that the kids took home my magic trick, so my name and phone number were instantly available.

Here's why I call this the greatest marketing secret in the world .. .

1. One of the biggest selling challenges you face is that people don't believe what you say. Think about it. Every week on TV we see stories about companies ripping the public off. Our potential customers are scared they're going to be the next victim telling a sob story on TV.

That's why they often doubt that your product or service will perform as promised.

But when a credible person or organization endorses you or your products and services, your prospects set aside their distrust and listen openly to what you have to say. While you don't have a guaranteed sale, your odds of success certainly skyrocket.

Elsewhere, I've told you how Walter Hailey increased his ratio of converting prospects to sales from 20% to 80% using the endorsement method. While every business has its own numbers, you'll no doubt experience profound results using this method.

You have two choices: You can sell the easy way or the hard way. The hard way is approaching prospects who don't know or trust you. The easy way is getting others to introduce you to their own customers who know and love them, and therefore, by association, know and love you.

Here's why .. .

You've heard the expression, "guilt by association." This puts a new twist on that saying, "credibility by association."

2. Obtaining new customers through traditional advertising (or even direct mail) puts a big fat hole in your wallet. If you're uncommonly fortunate, you'll make a profit on your first sale to a customer you snag through advertising. If you're average, you'll break even or lose money.

To make a profit, you count on repeat sales and referrals, which limits your growth because you have to first recoup your advertising outlay before re-investing your profits. In short, you're stuck in a cash flow crunch while waiting to recoup your advertising dollars.

If you're new in business, the picture looks even dimmer. You have bills to pay. If you have to wait for repeat business, you may not be IN business to reap the rewards.

Before the clock strikes 12, you're broke. But what if there were a way to turn the tables and greatly increase the odds of making a profit up front? First of all, you'd have a gigantic advantage over competitors who are stuck in the cash flow rut. Second, you'd be able to expand more rapidly. Third, you'd have a cushion to absorb the cost of occasional bad judgment without putting yourself in a bind.

Let's be realistic. Everyone in business makes mistakes. And if you don't have a profit cushion to fall back on, the uncomfortable thump can leave you wishing you were still working at a "real" job.

Not so with endorsements. You can almost instantaneously access a slew of prospects in a single mailing with maximum credibility. Let's say a business has 5,000 active customers. How long would it take you to acquire that many customers through traditional advertising? If you convert 20% of your leads or prospects to sales, that means you'd first have to generate 25,000 ad responses. My friends, that requires a substantial investment.

In contrast, consider this: When you joint venture with a business with 5,000 customers, you get to access those customers ALL AT ONCE. You don't have to advertise for a year or two to get that many customers. And your cash investment is zero. I'll repeat that...