Business Lyceum
e-Letter
Practical
Instruction in the Arts and Sciences of Making Money
APRIL 2000
Greetings & Salutations:
Last month's issue about "How To Really Get a Credit
Card Merchant Account" drew a very small bundle of comments
-- so -- before I get into other things, and because the majority
of the comments were along the same lines, let me respond en
masse to those comments.
Okay ... here we go.
YES, there are some consumers who use their credit cards to
defraud merchants - but - they are few and far between and, by
and large, they are only 'petty thieves.' -- Of the thousands
upon thousands of credit card orders we take each year, we only
get 5 or 6 charge backs PER YEAR.
charge backs are caused by products or services that do
not meet the expectations of the buyer. That is usually
the case when the merchant uses "hype" advertising
... promising the sun, moon & stars but delivering little
of real value.
Merchant accounts are essentially risk-free to the bank -
BUT - when a merchant fails, the failed merchant usually leaves
the bank with an overdrawn account and, in almost every case,
the merchant ... in an effort to survive ... has continued taking
credit card orders without fulfilling the orders which causes
the charges to be charged back to the bank against non-existent
funds. Con-men do it on purpose ... beginners do it with
all good intentions.
The 'risk' is in the PERSON of the merchant ... not in the
products they sell, or the method they use to sell those products.
I don't even have to guess why your banking connection told
you they would no longer handle sellers of "adult"
products. -- I know why. -- It's because, unfortunately, most
con-men see "adult" products as an easy mark because
of the nature of their customers. The customers' behind-closed-doors
mentality allows the con-man to collect a great deal of money
knowing most of their customers will never admit or even reveal
the loss - but - when the con-man leaves without filling the
orders, even those customers deny the credit card charges. --
"Real" business people ... even those selling "adult"
products ... can still get a merchant account from that same
bank.
Banks refer customers to you for the very reasons explained
in my article. They just don't want the hassle of working
with beginners.
For that one of you who was less than nice in his response
... telling me (in a rather unpleasant way) how his merchant
service was better than any local bank --
It would have been nicer if you had given a "positive"
response detailing how YOU are able to help those "beginners"
among us. -- Forty years ago, I was a "beginner," too.
Like the "beginners" of today, I was unable to avail
myself of some of the services utilized by more experienced businesses.
-- If YOU provide a needed service for those beginners ... that
is what you should have said in your comments, without getting
silly trying to counter my remarks. -- "Positives"
sell, "Negatives" only make you look foolish in the
eyes of those who really know.
Here's how Attendee John Colanzi
did it ... the right way. -- He simply said:
"Here's a service that allows small businesses
to accept payment on-line without needing a merchant account.
I didn't check out the site so, if you need that service,
check it out aces-high.
Now, let's get into some ...
Questions & Answers
Q: Attendee Dennis
Hessler wrote:
"I just enrolled in your Business Lyceum and I
was impressed with the information in your archives. As always,
great, solid, down-to-earth facts on how it is done. And I agree
with just about everything you said, except .. .In your first
issue, you related your adventures (mis-adventures, I guess,
would be more accurate) in Internet marketing and argued it is
not by your definition mailorder. I bow to your greater wisdom
on the definition but as one who is honest-to-god making cash
on the Internet I would argue that it is the method and not the
medium that is at fault.
In my own case, I have halted all advertising in print publications
(except in the Worldwide Business Exchange and a few other newsletters
that make consistent profits for me) and put all my efforts into
marketing on the 'Net. As a result, gross sales have gone up
25 per cent but my net has shot up 300 per cent last year and
even more this year. Why? No expenses.
I publish a bi-weekly import-export ezine for free to a growing
list of subscribers and include an ad for a page of my site in
every issue. This results in a twice-a-month sales bump for my
products. Annual cost? $99. I give away an e-book called "The
Exporting Entrepreneur's Primer" at my web page and it provides
basic start-up info and links to product pages. People download
this primer 'round the clock. Cost? Zip. I advertise in Internet
newsgroups every day. Cost? Nada. I publish articles in print
and online magazines. Cost? Goose egg.
Classifieds? Nope. Never use 'em. Not anymore. They are a
waste of time for biz op products -- but I did sell a 65-year
old trumpet through classifieds! If you have a very specialized
niche, they may work. Otherwise, I say forget about online
classifieds.
I broke some other rules and it has paid off for me handsomely.
For instance, the entry page on my web site goes on forever.
And people love it. I get very personal and ask people
to email and call me if they have questions. When they do, I
answer them right away. I can't believe how many people on the
Internet don't answer their email. How do they stay in business?
When I get back to folks who query me or when I take their call
in my office, I get the order 75 per cent of the time. Cost?
Nothing.
The point I'm making is the Internet works if you apply good
business practices to traditional ways of doing business. Credibility
and perceived value are important. And in an electronic age,
it's more important than ever to develop a personal relationship
with potential buyers.
Jim, I think your Lyceum is a great idea and I think you will
be pleased with the results. Maybe like me you'll decide to throw
your lot with the new medium but I know how much you love direct
mail! For me, sweating out the 1 - 2 per cent returns to determine
a profit are too risky now. I like the steady, cost-free, profits
in Internet marketing.
Hang on a minute. I just received a call from a man who wants
to order your Finder's Fee Course from me. I'll be sending that
up to you today. He read all about it at my site and was ready
to place the order online when he decided to call me to see if
I was "real."
Me? I think the Internet is real. It's not the automatic road
to riches. Not by a long shot. Like you, I believe most people
aren't make it profitable. But the same could be said for
traditional mailorder. I hope you give it a chance . . . and
thanks again for the great new sounding board!"
A: When I wrote the Oct'99
issue of the e-Letter, I had tried all the methods the Internet
Marketing Gurus teach ... and I was still trying them.
I still contend that Internet Marketing is NOT mailorder.
-- The BIG difference between mailorder marketing and Internet
marketing is ... in mailorder, you go into a possible customers
home or office, tell your story, and take their order ... Internet
marketing requires that your possible customer come into your
house, ask for your story, and give you an order. -- THAT is
a big, Big, BIG difference.
I could go on, and on, and on - but - suffice it to say, Internet
marketing is NOT mailorder marketing. The only similarities
are the similarities you find in ANY marketing method.
The end of Nov'99, I finally discovered that ALL of the info
about Internet Marketing was nothing more than the blind leading
the blind; with the blind mooches following the blind leader
paying him to lead them (that's where he is making his money).
Then, one after another, the blind mooches begin collecting their
own blind followers who pay them. -- I quit doing any of it.
Following my own lead, I began publishing my web address in
all my material. -- By the end of Dec'99, my web site had covered
ALL of its costs. -- Jan & Feb were both profitable and it
looks like March is going to be even better.
Looks like I'll make another fortune in Internet Marketing
- but - I'll have to do it my way.
To which Dennis replied:
"No doubt about it. On the Internet it's more
true than ever. People who have no idea how to market are
selling information on . . . how to market on the Internet.
I've even seen some of them bold enough to go on bulletin boards
like Tony Blake's posting a question about why their web site
isn't pulling in orders. Then you go there and you discover
it's a site pitching a product about how to sell on the Internet!
--Incredible."
Q: Along the same
lines, Robert M. Campbell wrote:
"Until I read a few of your excellent articles a few
days ago, I had never heard of you. -- You mention Dan Kennedy
. . . and I have some of his excellent materials. My question
to you. -- As far as promoting (making my web site sell like
Ken Evoys) . . . what materials can you offer me. -- And
as if you don't have a hundred better things to do with your
time, I would be grateful to you it if you would visit my web
site at www.SanDiegoRealEstateReport.com
(it's really good!) and give me your take and what materials
you sell that make my site an even stronger LEAD GENERATION,
selling site. Or maybe even some of your materials that
are real estate/finance related that are 100% on the up and up.
-- I'm like you Jim. I hate scams and hype. But I
do like good marketing!"
A: Sorry ... I ain't an
Internet person. As a matter of fact, my ol'friend Dan
Kennedy and I share much the same opinions about Internet Marketing.
So, I don't offer anything that will teach you about Internet
Marketing ... all of my books, reports, etc., are written from
my own hands-on, personal experience. I've done it, or
I don't write about it.
The only reason my web site produces a profit for me is because
it was constructed in response to requests from my newsletter
subscribers ("WorldWide Business Exchange") as a convenient
place for them to order my materials.
I tried marketing my web site ... online & off ... but
it didn't work (just like Dan & I originally surmised).
Then, I simply made my web site known to my customers in ALL
of my regular mailings. That did the trick. Customer who
weren't on the Internet simply mailed, or FAXed, their orders
to me. Those on the Internet, went to the web site to place
their orders and order other stuff, too.
In my humble opinion, the Internet is a "buying"
place ... NOT a "selling" place.
Your web site would probably work best the same way.
Since it is "local" in nature, simply include it in
all your normal advertising ... put it on your business cards
... etc.
Q: Attendee Buddy
Hickman wrote:
"After purchasing your Finder's Fee Material which I
have read and re-read, I have created a Temporary Internet Web
Site located at http://www.bhickman.com
which I would sincerely appreciate hearing Your Thoughts, Comments,
Critical Aspects on the PRESENT CONTENT. To date, we have Not
Registered with Any Search Engines for the specific reason, we
are NOT Good Content Writers, and am Asking for YOUR Expertise.
Your Genuine Thoughts and Recommendations would be Most Appreciated!!!
I Want To Make This Most Immediate Objective FUN and PROFITABLE!!!"
A: Took a look at your
site. You've got a good start. -- You need to be more "specific"
about the services you are offering. Unfortunately, when
your visitors have to think for themselves, they usually don't.
-- Suggest you "define" one very specific service you
can offer, offer it, then tell'em you can do other stuff, too.
Let me know as you develop your site further.
Q: Attendee Rodger
Stansell asked:
"I am planning to purchase a pallet of merchandise from
a company in Ft. Lauderdale Fla. called 'The Discount Wharehouse'
who are closeout specialists. My intention is to try and resale
merchandise at local flea market or auction, basically to test
and see if this can be profitable to do on a larger scale.
To preview merchandise I would have to drive to their whse. which
is approx. 400 miles away. I can purchase a pallet of
Housewares (about 200pcs.) for 199.00 plus S&H sight unseen.
Is this worth the gamble? What else should I take into
consideration? Any advice on this opportunity is greatly appreciated.
Thanks -- P.S. This company claims to have been in business for
25 years, so I assume you have heard of them, right."
A: Sorry ... I haven't
heard of that particular company - but - that doesn't mean a
thing because there are thousands upon thousands of companies
in the closeout business and I can't know all of them.
Since you are only paying $1 per item for the pallet, I don't
see how you could go wrong. -- If you only sell the items for
$2 each, you double your money. -- Then again, how much is the
shipping & handling? If that cost adds to much to your
per-item cost, you might have a problem. -- Find out how much
the shipping & handling will be before you proceed.
Now ... a couple of our Attendees have ...
Opportunities For You!
Tim Yarbrough
wrote:
"I am looking for 6 salespeople who are interested
in making 4-6K per month for the first year. After that they
should do much better. I will train them in marketing guaranteed
and insured energy management systems to middle-small businesses
(the neglected segment). Our average contract is $40K and the
commission is 10% - rising to 15% over time. They do not need
to know electricity or installation. We will handle all the designed,
installation and guarantee performance.
If a person does not wish to sell, I will pay a finder's fee
if the project is located in Alabama, Tennessee, Mississippi
or Georgia. We deal with ac, refrigeration, lighting, motors,
etc. (all power consumption); we guarantee the results; no out-of-pocket
expense for the project; our sales closing ratio is a little
over 80% - don't know why it isn't 100% since the business owner
can't possibly lose.
If you know any who are interested, please pass on my email.
I presently have four sales people and am very selective."
Okay -- if'n yer interested, contact Ted for all the skinny.
-- Then ...
Dennis Pingree
wrote:
"A cry out for a Business Partner! Ever wish you
could own a piece of, and help build a company as notorious
as Yahoo or AOL??? Now you can! Content Partners
Wanted for New Premier Community with Web Altering technology.
We do the development! 50/50 split on the profits
made from the venture! This letter must be copied in
whole back to us to receive details."
NO! I didn't check the offer out. So, if'n yer
interested, you'll have to check it out fer yer own self.
Well ... that's it for this month. -- In order to make every
issue responsive to YOUR needs, please send me your questions;
or tell me what sources or resources you need to build your business;
or give me any thoughts you want to share with your fellow members.
Believe it or don't ... I ain't a mind-reader. -- If'n you
doesn't tell me what you need, I may never touch upon the information,
sources or resources you need.
This is your publication for you to use to your benefit ...
I am just your moderator.
Until next month, keep well ...
J.F. (Jim) STRAW
Mr. Know It All
Thought For The Month!
"Thinking is the hardest work there is, which
is the probable reason why so few engage in it."
-- Henry Ford
Can you stump the old master? -- Betcha can't!
Over the past 40 years (man and boy), I have made bundles
of money in direct selling, service contracting, wholesale merchandising,
entertainment (I was a professional Trumpet player, vocalist
& Radio Announcer), freight forwarding, import/export, retail
merchandising, warehousing, real estate, electronics manufacturing,
finder's fees, closeout merchandising, financial brokerage, business
consulting, steel fabrication, gold and coal mining, offshore
banking, mailorder, writing, and publishing. -- That being the
case ...
No matter what business you're in ... whether you're just
starting, well on your way, or at the top of the heap ... I've
probably been where you are, done what you are doing. -- So ...
Anytime you have a question about 'how' to do something
in your business - or - if you have any comments about
anything I've said in issues of this e-Letter; or if you want
to add your 2 cents worth ... just "ask" me or "tell"
me.
Send your Questions, Comments or 2 Cents Worth to ...
with "Question" - "Comment" - or, "2
Cents Worth" in the SUBJECT.
If I, personally, don't have an answer to any question you
may ask, I will contact some of the professionals in your field
of endeavor (I will probably know one or more personally) to
get the real 'skinny' for you.
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Copyright - 2000, J.F. (Jim) Straw. All rights reserved.