Business Lyceum
e-Letter
Practical
Instruction in the Arts and Sciences of Making Money
APRIL 2001
Greetings & Salutations:
This month we're gonna talk about...
Contests, Puzzles & Lotteries
Of late, I have seen a number of articles espousing the use
of Contests, Puzzles & Lotteries to bring "traffic"
to a web site. -- BUT ... before you do it, let me share some
of my experiences with you.
Back ... many years ago ... when "Publisher's Clearing
House" started and became so successful with its 'lottery'
all of us old "how to" information publishers tried
our hands at emulating their success by creating our own contest,
puzzle, lottery, or whatever. Believe me, we tried everything
and ... being a rather small group back then ... shared our experiences;
successes & failures, with each other.
After all of us had given it our best shot ... with little
success ... we finally came to the undeniable conclusion that
"people who enter contests or lotteries" aren't buyers.
By and large, they are looking to "win" something for
nothing. So, enticing them with puzzles, contests and lotteries
was counter productive unless we could make a "purchase"
mandatory to participate ... which, of course, is illegal.
"Publisher's Clearing House" worked because it was
directed toward consumers who were already buying magazine subscriptions.
Those consumers figured, "I'm gonna buy the magazines anyway,
so why not get a chance to win something, too." Beyond
that, although buying a magazine subscription isn't required,
the two envelopes (one marked "NO" order; and the other
marked "YES" order) kinda intimates to the customer
that the purchase of a magazine subscription gives them a better
chance. -- Not so with buyers of "how to" information.
Needless to say, all of us ol'pros dropped the idea. -- BUT
...
Last year, I read an offer from Dr. Jeffrey Lant for his "Guaranteed
- 15,000 visitors to your website." So, I paid
him the $600. -- What the hey ... out of 15,000 people, I should
be able to get some of them to buy something.
In the offer, Dr. Lant *DID NOT* tell me that the idea was
to have people come to my site to get to a link to his "FREE
Lottery" page. -- The idea was that each person only got
'one' chance to enter the "FREE Lottery" for each link
they found and clicked-on. So, they had to go to each website
listed to get to the "FREE Lottery" link in order to
come back to the "FREE Lottery" page for another chance
to enter the lottery.
If I hadn't already paid the $600, after my earlier experience
with trying to entice contest players to buy my products, I wouldn't
have even considered it - but - when I pays my money, I at least
'try' what I bought. -- In this case, I "assumed" that
people on the Internet were different. If they came to
my website, they would look around and, maybe, find something
to buy. -- So, I put Dr. Lant's lottery link on my home page.
After I put the lottery link on my home page, I began tracking
the visitors. -- At first, there were only 10 to 15 per day ...
later it grew to about 50 - BUT - each visitor that came to my
home page spent about 3 seconds scrolling down to the lottery
link and left.
Being the eternal optimist, I figured it was only a matter
of time. Eventually, some of the visitors would begin searching
through the FREE Reports and FREE Resources; or signing-up for
the FREE Newsletter. -- It never happened.
In the nearly 3 months I kept Dr. Lant's lottery link on my
home page, NOT ONE person spent more than 5 seconds at my site.
-- Once they found the lottery link, they were gone.
Just as in the mailorder business, contest, puzzle & lottery
players were NOT buyers. They only play the contests, puzzles
& lotteries in hopes of winning "something for nothing."
Needless to say, I deleted Dr. Lant's lottery link from my
site ... writing off the $600 as the "cost" of my education.
So ...
Before You Put a Contest, Puzzle or Lottery on
your Web Site to Generate Traffic
Ask Yourself ...
Are Lottery Players the kind of people who will
'buy' my products?
Generating traffic just for the sake of traffic isn't really
worth your time. -- If the people you are attracting to your
site aren't the kind of people who will usually 'buy' your product
(or service) it is an exercise in futility. -- Beyond that, "real
buyers" might think your site is more than a little hokey
if it features a link to a contest, puzzle or lottery.
But, as I have always said ...
ALL of the gurus are right - and
- ALL of the gurus are wrong!
(Even Me!)
... the only way you can know what will; or will not, work
is by testing, Testing, TESTING, and Testing-Some-More.
Contests, puzzles & lotteries may be successful for online
merchants offering something other than "how to" information.
-- Just because it doesn't work for "how to" business
information, doesn't mean it won't work for you ... if you have
a product or service the lottery players will 'buy.'
Lemme know if'n you come up with something that works.
Now, let's do some ...
Questions & Answers, Comments
& Other Good Stuff!
Speaking of generating traffic to your web site, there are
ways you can generate high-traffic without attracting the wrong
kind of people; or appearing hokey. -- One of those methods is
the use of "Publicity Releases" or "News Releases."
Mike Van Norden is a master when
it comes to Publicity getting News Releases. As a matter
of fact, he got over 100,000 visitors to his web site in 10 days
... using a little publicity release. -- He tells you exactly
how he did it in his Special Report ...
"How I Got Over 100,000 Visitors To My Web
Site In 10 Days...EXPOSED!!"
You can read the report at:
http://www.free-publicity.com/power.htm
While you're there, you can also get a FREE copy of his ebook
on getting Massive "Free" Radio Publicity. It's got
some great content.
Milana Nastetskaya tol'me:
"Did you know that 9 out of 10 companies lose money on
the Internet by the end of their first year? -- Yep, that's right!
-- They hire an expensive web designer, put up a fancy looking
web site, then sit and wait for orders to come in. -- Unfortunately,
because web designers don't know your business as good as you
do, your web site becomes just another address on the Internet.
And you are left with all the bills to pay. How sad. --
I wanted to break this chain of unprofitable businesses and created
a product that will help you make profit NO MATTER HOW MUCH YOU
SELL! You will be in profit because you will not spend
a penny on a web designer. I will show you how to make
and maintain your own web page using ONLY your typing skills.
-- Yep, it's that easy! The manual I designed is called
"Create Your First Business Web Site in 10 days! No experience
required." It contains 17 video clips to demonstrate
to you how EASY it is to make your own web page. -- Click it.
Watch it. Do it yourself. -- The manual takes you from registering
your domain name, to putting text and pictures on your web page,
to taking advantage of free tools and professional graphics available
free on the Web. -- You are welcome to try my manual FREE at:
http://www.firstbusinesswebsite.com/?JimStraw
or simply view the Table of Contents at:
http://www.firstbusinesswebsite.com/TOC/?JimStraw
My Customers Pay Me $2500 To Have a Web Site! -- Find out
why YOU don't have to."
Thanx, Milana ... I read the whole thing ... well worth the price
for anyone who wants to build their first web site fast; and
well.
Rick Park asked:
"I have whipped out a homebiz site and made many marketing
submissions to : search engines, free classified ad sites, free
FFA's (because, I only have a shoestring budget!)etc. etc. But,
nothing works! -- After a couple of months, I only got a few
hundred visitors and none of them signed up for any free programs
on my site or bought anything, so, I never made a nickel yet!
-- So, Jim, what could be wrong with my website? -- Should I
give it up? -- I know you are an expert in this."
Sorry, Rick ...
I am NOT an expert at anything to do with the Internet - but
- I did go to your site to see what I could see. What I
encountered was a screen divided into 3 impossible to read sections.
-- It's fancy but I doubt anyone who comes to the site will know
what you are offering or how to go about getting it.
Me ... I believe in the KISS formula -- "Keep It Simple,
Stupid" -- and use the methodology "Tell'em what you
are gonna tell'em ... tell'em ... then, tell'em what you told'em."
If you will look at my home page, you will see that it is
nothing more than "telling" the visitor what I am going
to tell them. -- I let the visitor decide what they want me to
tell'em and click on the appropriate link to the page with that
info. -- Then, each page they click to tells them something and
then tells them what I told them.
When you get too "complex" ... as your home page
is ... the visitor says "Hey, I ain't got time to decipher
this" and goes away.
Every time I ask for a "site review" anywhere, I
get assailed with comments about my "home made" look
... no graphics ... amateuristic look (usually with an offer
to redo my site "professionally") - but - my web site
sells & Sells & SELLS. -- Why? -- Simple. I don't
try to be "better" than my visitors. I try to
share with them, not overwhelm or impress them. -- The "average"
time a visitor spends at my site is 9 minutes.
Try it, your bank account will like it.
Yosef wanted to know:
"How do I find out the income of homes in the area that
I do window cleaning? I want to put out flyers / brochures
to specific addresses that would be able to afford such a service.
This would help me grow my business I hope. -- Do you have any
other hints at growing my small window cleaning business on a
no frills type of budget?"
Yosef:
Don't worry about the income of the homes in the area. --
Over the years, I have found that people will pay for whatever
they want ... but not necessarily what they need.
Remember: Men (husbands) hate to wash windows.
Women (wives) hate having to nag their husbands to get them to
wash the windows. So ... offer a "Window Washing
Service for Busy Housewives" ... or ... "Window
Washing Service for Overworked Husbands" -- "Let
us make your windows sparkle."
Cost ... as long as it is reasonable ... is not the controlling
factor. It is the convenience of not having to do it themselves.
Michael S. Winicki was wondering:
"I'm doing a lot of work with a direct marketing company
that sells hobby products. They've been around for about
50 years and have never marketed their list. They mail
out about 1,500 packages per day in response to a variety of
ads and marketing programs. -- Do you suggest they go through
a broker to sell the list or should they market the list themselves
using an in-house list manager? -- I came across one your ads,
marketing your list in a DM mag from the early 90's."
Michael:
Having done both ... sold my own list and placed my list with
a broker ... here's what I would recommend ...
Place the list with a broker ... the broker normally get from
30% to 40% of the list rental fee and pays 20% to 25% to other
list brokers who rent the list to their clients. -- The broker
will be responsible for 'managing' the list ... keeping it available
in the various formats; 9 Track Tape, Cheshire Labels, etc. -
and - they will market the list through their normal channels
- BUT - make a deal with them (going in) that "YOUR Company"
will also "market" the list and will receive the standard
commission as though your company were another broker.
Why do it that way? -- Because "marketing the list"
is the most important part of the operation. Unfortunately,
most list brokers have so many lists they simply don't have the
time to dedicate to marketing any individual list ... usually
depending upon directory listings and calling their current list
buyers to 'sell' the lists.
Have the list broker provide you with the 'demographics card'
they prepare for your list. Reproduce that card on your
company's letterhead for your sales efforts. -- Let the list
orders come directly to your company ... then forward them to
the broker as though you were just another broker. (ASK
your list broker for the necessary formats they want you to use.)
By earning the standard commission as though your company
were another list broker, you have the best of both worlds -
and - you can "market" your own list without having
to invest your time and energy in list management, maintenance
and fulfillment.
If the first list brokers you contact won't go along with
the deal, drop'em like a hot potato(e). Find a list broker
you can work with ... preferably one with whom you can establish
a personal rapport.
Alvin Corbett wrote:
"Here's a new question for you. (I gave up trying
to stump the Master.) -- Can you recommend any websites, publications,
etc., where I can find Commission Sales Reps? -- I have tried
searching the net but most of what I came up with was 90% unusable."
Alvin:
Don't know where you could find Reps on the Internet - but
- in the 'real' world, simply find the periodical publications
dedicated to your industry. (Your local library can provide
you with a variety of Periodical Directories.)
In those publications, you oft times find Reps looking for
new products. If not, check the classified ads to see if
they have any ads looking for Reps. If they have those
ads, you can pretty well bet that you can capture some Reps by
running your ads in the same section.
Finding Reps is like "selling" anything else.
You "advertise" in the publications that go to the
people (customers) you want to contact.
Alvin Corbett also wrote:
"I have an opportunity for lyceum readers. -- I am looking
for distributors for Rafaella Designer Lingerie and Ladies Denimwear
in the U.S., Mexico, Canada and South America. -- My contact
info is: Jazzie International, Suite 71, 181 Market Street,
Paterson NJ 07505"
Tim Spencer asked:
"What are your thoughts on "ad sheets" as advertised,
for example, here: http://www.ahbbo.com/advert.html
-- I often see short 'how-to' reports recommending starting one,
but I have not seen any success stories."
Tim:
Ad Sheets have been the mainstay of the "small"
mailorder businesses for well over 50 years. They were
originated by the small-time mailorder dealers in order to mail
their own materials and let their advertisers pay for the postage
for the mailing.
Then, the ad sheets were picked up by small printers.
Those printers would print their advertising on the backs of
other mailorder offers for 'free' if the person wanting the printing
would do the mailing. -- Other mailorder businesses got their
ad sheets printed 'free' with the printer's ads on the back.
Of course, the printers were soon selling advertising on their
own ad sheets ... doing the printing & mailings ... with
their own ads on the back of each ad sheet.
Over the years, the ad sheets have become a business within
themselves. Probably one of the biggest is Glenn Bridgeman's
... he has about a dozen of them;
printed on newsprint; tabloid size. Another of the biggies
in the ad sheets is a guy by the name of Chippoletti ... in New
York. He mails thousands upon thousands of pieces every
month.
Yes ... it can be profitable - but, unless you get into it
big time, the potential profits are only a few
hundred dollars per month; after printing & mailing costs.
Gary Jones had a question about Finder's
Fees:
"I just received your book via email and find it extremely
informative. I hope that you can help me with a dilemma.
I've been selling (xxxxx) on the side for a few months now.
After a while, I decided that I wanted to: A) Get the business
out of my home before neighbors start complaining and...
B) Sell in greater volume. This led me to start thinking
about exporting, so I called someone whose ads I've seen for
years detailing his services as a Trade Intermediary. -- I explained
my objectives to him and he said he knew of buyers for (xxxxx)
domestically and that if the prices were right we could probably
do business on a monthly basis. -- That sounded good because
I had done a considerable amount of research on suppliers and
knew of quite a few. He called me the next day and said
that he had called a few contacts and there was even greater
enthusiasm than he realized for these products and asked me to
identify a source for a large number. -- I called one such source
who informed me that he was a broker for a supplier and I explained
the situation to him and he said he would check availability
with his client and get back to me. He called me the next
day after faxing me a detailed availability sheet and the price
on each model and invited me to have the buyer come with me and
inspect the products at the warehouse. -- His secretary inadvertently
gave me the address of the warehouse which enabled me to figure
out who the supplier was ... which is neither here nor there
because I wouldn't want anyone to cheat me and have no interest
in doing it to anyone else although in the future I see no reason
not to deal directly with the supplier. -- Now, the dilemma is
that I figured out that the 'Trade Intermediary' is representing
himself as the actual seller because he doesn't trust the broker.
He wants to get the check himself and then pay the supplier (and
presumably the broker). I'm not concerned about being cut
out because he seems to want to do business on a regular basis
and I feel that if I am cheated, I haven't lost any money in
the process since I haven't put out anything. I told him
that I was uncomfortable with the way he was handling it and
felt that the check should go directly to the supplier (although
I have no idea of the mechanics of how that should work in order
that all parties' interests be protected). -- I understand why
he would be nervous about having someone pay the broker directly
but it seems to me that the whole thing is getting terribly complicated.
He also seems to be nervous about ensuring that the (xxxxx) are
in the stated condition and suggested that he and I check them
out which I told him was absurd because a team of technicians
(which I'm not) working 8 hrs. a day couldn't determine anything
useful in three days on that many items and besides they already
come with a 30 day warrantee. -- I know that his nervousness
comes from his misrepresentation of himself and realizing that
he would have to take on any liability which currently rests
with the supplier. My question is how can such a transaction
be completed with all parties being satisfied? My 'partner'
for lack of a better term has agreed with the logic of my protests
and says that he'll go along with whatever way I want to play
it. I would also like to know what I need to get in writing to
make the process legitimate. In short, how can I make what
seems to be a very complicated and impossible conundrum more
simple and straightforward? Would I be acting as a broker
or a finder? Which role would be preferable in this situation?
Any help you could extend would be very much appreciated."
Gary:
Yours is not an uncommon dilemma when dealing with beginners
& amateurs - but - it is easily solved.
All you have to do is remember "Straw's First Law"
... Get it in writing. Put it in writing.
No need to make up any formal contracts ... that would scare
your "insecure" Trade Intermediary to death.
Just send him a letter asking him exactly what he proposes doing;
and how he proposes doing it ... do the same with the other party
in the deal. That way, you have them committed to do the
deal the way they say they will. If anything in their written
answers gives you gas pains, either get them to clarify their
intentions (in writing), or find someone else to deal with.
The beauty of the 'real' business world is that 'real' business
people are always willing to make their
commitments in writing. Only the crooks, petty con-men,
and rank amateurs are afraid to commit
themselves in writing. -- It's always a good way to separate
the honest business people from the fakes and flakes.
Richard Ricardo wanted to
know:
"Just received your newsletter, would like to know if
you have any experience with invoice discounting, not factoring.
-- I am thinking of starting this up, buying invoices from companies
at a discount."
Richard:
In the "banking" business, the banks *lend*
money against invoices and call it factoring - but - in the real
business world, the "buying of invoices" is factoring.
That means, you need to contact those sources listed that
offer "factoring," since most of them are not banks
but rather "buy" invoices at a discount.
Chris Grumley wrote:
"Thanks Jim ... I like you 'cos you tell it like it is.
This is the second report I have ordered from your site. The
first was only available by snail mail. This is a far better
idea.. When I have made my first million I would like to take
you out to lunch ... My shout, your choice ... I am in the UK
but am moving to The Sunshine State in October ... Can't wait!"
Thank You, Chris ...
I am looking forward to eating the biggest Rib Eye steak available;
at your expense, in the not too distant future.
Again, Thank You for your kind remarks.
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
Business Puzzle Solver
Thought For The Month!
"Those who never retract their opinions love themselves
more than they love truth." -- Joseph Joubert
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.
No Paid Advertising!
We DO NOT accept 'paid advertising'
in the "Business Lyceum e-Letter." -- Why? -- Because, when you offer 'paid advertising,'
you are obligated to run the ad, or have a valid excuse for not
running it. (An excuse that will hold-up in court because
all too many people like to sue for any seeming slight.)
Therefore ...
Any time you see something offered in
the "e-Letter," you can bet your bippy I am telling
you about it because it is something I, personally, would recommend
to my friends and family. -- It's here because I
like it; not because I am being paid to tell you about it --
BUT -- that does not mean that I don't accept payment in the
form of commissions (never in advance) from some of the offers
I tell you about.
'Nuff said?
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Copyright - 2001, J.F. (Jim) Straw. All rights reserved.