Business Lyceum

e-Letter
Practical Instruction in the Arts and Sciences of Making Money


Editor/Publisher:  J.F. (Jim) Straw

FEBUARY 2004


 Greetings & Salutations:

With all the hoopla about the new "Can Spam Act," this month we will take a closer look at ...

Regulations & Regulators

When you were a small child, your Mother  probably told you to "Stop, Look and Listen, before you cross the street." Her rule was handed down out of her love and concern for you. -- She didn't want to find you "squashed-like-a-bug" in the middle of the street. -- And, if she caught you violating her rule, she punished you.

Your Mother did not make the rule to punish you.  She made the rule to protect you from yourself.  The punishment only came if you violated the rule and put yourself in jeopardy.

Later, when you began driving a car, the public again told you to "Stop, Look and Listen, before you cross the street," and they erected STOP signs to remind you of that rule.

The public rule (law) was made to both protect you from yourself and other members of the public, and to protect the public from you. -- Again, the rule was not made to punish you.

Have you noticed, however, that there aren't any STOP signs required by law at the end of your private driveway.  But, a wise and prudent person will Stop, Look and Listen at the end of their own driveway before entering or crossing the street.

If EVERY member of the public were totally responsible, there would be no need for either the rule (law) or the STOP sign, and the regulators (police) would have no reason to exist; in regard to traffic violations involving STOP signs anyway.

This simple illustration explains fully the ONLY & TRUE PURPOSE OF LAW. -- But ...

As with anything having to do with human beings, the purpose of the law can be (and often is) altered to make it punitive/vindictive, protective, revenue producing, or even extortive in nature.

As a simple example, let's return to the traffic laws.

Like all laws, the only and true purpose of the traffic laws is to have rules which will provide for responsible action by each member of society (the public).  But, those laws have been, and are being, used for a multitude of other purposes.

PUNITIVE/VINDICTIVE PURPOSES -- A local politician, bureaucrat, or law enforcement officer has a personal confrontation with a citizen.  The next thing you know, that citizen is getting traffic citations every time he leaves his home.  Any minor infraction of the law; even doing 37 MPH in a 35 MPH Zone, becomes a cause of action.

PROTECTIVE PURPOSES -- (This actually happened to me, so I will relate the story to you.) -- Some 28 years ago, I owned and operated a retail store downtown in a small city in Tennessee.  The only parking available downtown was on-street, metered parking.

Across the street from my retail store was a mortuary which had been at that location for well over 50 years.  When they had a funeral service, it was their practice to cover the parking meters on their side of the street; a full city block, with "Reserved Funeral Parking" bags.

One morning, I arrived at my store at the customary time; between 7:30 and 8:00 a.m.  Because the parking on my side of the street was filled, I parked across the street and fed the required 25ยข into the meter for 2 hours parking.

About 8:30 that morning, the mortuary covered the parking meters with the "Reserved Funeral Parking" bags.  At about 9 o'clock, one of my employees came to my office to tell me a police patrol car was issuing a "ticket" on my parked car.

When I got the $20 parking ticket (and moved my car back to my side of the street), I telephoned my attorney -- after all, I still had about an hour of "paid" parking left on the meter.

My attorney called back later to tell me that he had checked the City Code and there was no "rule" about parking at "covered" meters.  As a matter of fact, there wasn't even any authority for anyone to cover the meters.

Rather than paying the ticket, I appeared in City Court on the date ordered by the ticket.

The City Judge was a little bit surprised by my appearance in his court.  After all, nobody ever comes to court about a "parking ticket;" they just pay the small fine and forget it. -- He was even more surprised when he asked me if I was pleading "Guilty" or "Not Guilty" and I responded, "Neither one."

After I explained to the Judge that there was NO LAW forbidding the parking at covered meters; nor was there any law even authorizing covered meters, he dismissed the case for "lack of cause."

Two weeks later my attorney sent me a copy of the new amendments to the City Code.  One of those amendments authorized mortuaries downtown to reserve and cover parking meters for funeral attendees, and exacted a $20 fine for parking at one of those covered meters.

As far as I know, "Straws Parking Law" is still on the books in that Tennessee city, and that law is purely "protective" for the one and only mortuary downtown.

REVENUE PRODUCING PURPOSES -- The stories of small, one-horse towns that operate "speed-traps" across this country are legend.  -- The only real purpose of the speed-limit laws in those towns is to produce revenue for the town itself.

Beyond this obvious revenue producing purpose, it isn't uncommon for local government (city, county and state) to "tighten-up" on the traffic laws in their areas in order to enhance their local budgets.  After all, its easy, because most people don't contest their tickets.  They just pay the fine and forget it.

EXTORTIVE PURPOSES -- The most blatant example of an extortive purpose applied to a traffic law occurred back when the Federal Government enacted the 55 MPH speed limit nationwide.  Part of that particular enactment was that the states were required to post, implement and enforce the 55 MPH speed limit -- or -- the state would lose it's Federal Highway fundings. -- If that isn't extortion, my dictionary is malfunctioning.

Of course, the PURPOSE of Law can also be perverted in the opposite direction as well. -- Lazy, careless, or inept law enforcement officers (regulators) may simply fail to enforce the provisions of the law.  Some other regulators may choose to enforce the laws more leniently and favorably for their friends and cohorts.  Then again, a few greedy ones will enforce the laws according to who pays the most.

Now, you know more about the LAW than some attorneys and a good many  (if not most) bureaucrats.

LAW, in and of itself, is neither good, nor bad.  It is only the rules mandated by the public to prescribe and enforce the responsibility and accountability of each member of the public.  The LAW has no other legitimate purpose, but, as I have illustrated, the law is used by human beings to force their will upon other members of the public for various purposes.

Although the "Can Spam Act" is ludicrous on its face, absurd in its entirety, and a travesty against the free enterprise system upon which this nation was founded, it is now the "law of the land" when it comes to the sending of email. -- But ...

Too many of the Internet Gurus ... without education in the practice of law ... have taken it upon themselves to "interpret" the new law -- scaring the bejeebers out of too many small email marketers. -- Usually, with the objective of selling some kind of manual, course or computer tool to protect the email marketer from being labeled a "spammer."

NOTE:  If you will notice, I am using the word "spam" without adding asterisks between the letters to protect this publication from being labeled spam. -- There is a method in my seeming madness. -- If this issue is labeled "spam" and returned to me, I will simply remove that person from my list. - Why? -- Because, anyone who "claims" to want to learn about making money and has a spam blocker on their email to block business messages is just "pretending" to want to be in business.  In my humble opinion, they aren't serious enough about making money  to be on my list.

Contrary to what the scare'em-into-buying-something Internet Gurus have told you, the Can Spam Act specifically excludes "transactional and relationship marketing" from the definition of "commercial electronic mail message" under the act. -- That means ...

If someone buys something from you, inquires about your products or services, receives a "freebie" from you, signs up for an ezine you publish (even if they don't double opt-in), or in any way corresponds with you by email ... creating a "relationship" ... you may legally add them to your email list - and - the Can Spam Act DOES NOT apply to your emailings to them. -- Plain and simple.

The Can Spam Act, in actuality, only applies to unsolicited "bulk" emailings.

Unless you are guilty of doing unsolicited "bulk" emailings, you have little to fear of the act.  That is, unless of course some officious person decides to use it in a punitive/vindictive, protective, revenue producing, or even extortive way against you personally. -- But ...

Anytime anyone even intimates that "you" are a spammer ... delete them from you email list immediately (if not sooner) -- as I have done since 1999 when I first started this e-Letter.

Never fear the law. -- Fear the "people" who, in their quest for power over others, may use the law for punitive, vindictive, protective, revenue producing, or even extortive purposes.

Law is a shield - but - in far too many cases it is wielded as a sword by those people entrusted to enforce the laws.

By the way, the Can Spam Act came into force on January 1, 2004 - but - according to my email logs, "spam" to my email address has increased by just over 7%. -- Go figure!


Now, let's do some ...

Questions & Answers, Comments & Other Good Stuff!

Jerry Varner had half the answer ...

"Perhaps this subject has been covered in a previous letter, but if I asked you, "What are the ingredients one needs to achieve financial success?", what would you say? -- I firmly believe a burning desire to achieve financial success is the most important ingredient -- and you speak of this in your report about "losing your mediocrity" -- but what else would you say?"

Jerry:

The burning desire is a given - but - it must be coupled with a desire to bring  "value" into  your customers' lives.


Don Alm needed help making a decision ...

"I have a "service" that will help any "Wedding Photographer" get more business.  I plan on charging a "monthly fee" for my "service". -- Now ... if I offer my "service" to EVERY wedding photog who wants it ... I would charge "X" per month however ... for my "service" to benefit a wedding photog the most, I should offer "exclusives" ... so those who subscribe to my "service" will have an ADVANTAGE over competitors in their local market.  BUT ... this is unfair to me ... because it limits the number of sales I can make in any market ... SO ... I'm thinking about charging "X x 2" or "X x 3"... HOWEVER ... by raising my price I may cut down on the orders I get... SO ... WHAT would you suggest? -- (1) Offer "service" at price "X" to anyone and everyone who wants it? -- (2) Offer "service" at price "X" and give exclusives? -- (3) Offer "service" at price "X x 2" ... or "X x 3" with an exclusive?"

Don:

If I were doing it, I would  offer it  to anyone  who wants it.

Why?

Because, no  matter how good and viable your service may be, each photographer will use it in their own way ... some very effectively, some haphazardly. -- For example, they all use just about the same cameras but some of them  produce fantastic photographs, while others only get fuzzy shots.

Besides ... good competition is what makes business get better & better. -- When the lesser photographers use your service to  compete with the best, the best photographers will have to improve to stay the best.

NOTE:  If'n any of you are involved in photographing weddings, you might want to contact Don to see how he can give you an advantage over your competition.


Haider McKenna needed to know ...

"I've read your book, ' Sell American' ... and to be honest it was extremely refreshing to read something that showed just how easy exporting can be.  I currently live in Scotland and I believe that the rules you applied to your exporting experience can quickly and easily be used here.  I have decided to concentrate most of my exporting to the Middle East, however, I am battling to understand exactly what a 'mailing list' is. -- Question: (1.) what info will a mailing list give me (2.) where would I find mailing list for the Middle East and can they be obtained- 'free of charge.'"

Thank You, Haider ...

I am pleased that you found my information worthwhile.

A  "mailing list" is ONLY a list of the names and addresses of people;  or businesses, in a selected demographic. -- Example:  A mailing list of "hardware stores" in whatever country. -- The cost of mailing lists can run from zero to thousands of dollars per one thousand names ...  depending upon the source of the list and its demographic (i.e., the demographic can be anything ... businesses like hardware stores, grocery wholesalers, beauty salons; whatever - or - groups of consumers; such as those who have purchased similar products in the recent past).

Unfortunately, there are no Direct Mail Associations in the Mid East that I know of - but ...

Let's pretend you are going  to be exporting hardware products to hardware stores in  Saudi Arabia. -- Go to your local library and ask to see a "Directory of International  Banks."  Look up the banks in  Saudi Arabia and write down their mailing address (the library usually won't let  you take directories out of the building).

Write to the banks in Saudi Arabia.  Tell the banks that you are currently exporting hardware products  from Scotland to Saudi Arabia and ask them if they can put you in contact with any of their customers who may be "hardware  dealers" in their country.

Also, while you are at the library, ask for a "Directory of International Periodical Publications." -- That directory will be broken down by subject and country.  Look for any magazines catering  to the hardware trade in Saudi  Arabia. -- Contact those magazines and ask for their Advertising Rates and  schedule ... they will send you an issue of the magazine along with  the rates. -- Go through the magazines to find hardware dealers in Saudi Arabia who may be advertising in that magazine ... contact those advertisers  with your offers.

NOTE:  I used "hardware  stores" only an an example.  Use the demographic appropriate to the products  you will be exporting.


Richard Goss wondered where ...

"Could you give your advice please. -- I live in the UK, and I am considering buying a consignment of recycled grade 'A' Levi jeans from the US. -- Over here there aren't very many places that sell secondhand clothing.  There are so many places that I could sell these from (i.e., a market stall, or a small warehouse, supplying other traders or even as job lots), if it was a success, I would include other items from the second hand market.  Do you think that this is a good or not so good idea. -- By the way, your e-book on snooping around, was very good."

Richard:

Before you actually buy the consignment of recycled Levi jeans, do a little market research & pre-marketing.

First, go around  to all of the places where you think recycled Levi jeans would be sold.  Check  to see if  there is anyone selling  recycled jeans ... check prices ... watch to see how many sales are being made.

At the same time, write a letter to traders you believe may handle recycled jeans.  Tell them you are expecting a shipment of recycled jeans ... give them a general price  range (determined by your cost factors) ... ask if they want any for resale.

Glad you found some  value in my snooper report.


Lexy Kassan reminded me ...

"I don't know if anyone else has brought this up as I'm new to the newsletter but there's a great place to get some inexpensive marketing materials created for you.  http://www.elance.com  is a freelance service provider base in which you post a project and service providers bid on how much they would be willing to do the project for.  You choose the winning bidder at the end.  If you're looking for less expensive alternatives to traditional marketing firms, try this out."

Thank You, Lexy ...

I have mentioned it before - but - it bears repeating.


Marja Sandstrom likes where she lives and wants to share it with you ...

"The place I live ... Overtornea ... is very special with a wonderful nature near the Arctic Circle and it would be a great place to visit.  We need people with business ideas and economic resources.  I have lots of ideas but no resources to make things happen."

Looks like a fascinating place to me.

Hey, gang ... take a look.  See what you think.  Might be just the place to set up shop.

Check it out at:  http://www.overtornea.se

When you go to the site, you'll have to click on the English Union Jack at the top to read it in English.


Hector Maldonado needed to know how I did it ...

"I bought your "Mail Order Business A More scientific Aproach" ... ... some time ago.  I also receive your monthly newsletter at this email address.  So, the reason I am writing to you now is because you say in your book above that you have sold "everything from beauty supplies to heavy equipment, automobiles to wheelchairs ... etc., etc. -- Now, I have two (2) friends that have a car dealership and I would like to make some extra cash selling car by mail order. -- My question is:  How do I sell a car by mail order?  Can you give me any idea? -- Can you help, please?"

Hector:

When I sold cars by mailorder, I first made a deal with a Car Leasing Agent to handle car leasing for customers I sent to him ... he paid me a fee for bringing the customers to him based upon leases actually made.

Then, I arranged with a Car Dealer to offer leasing on all of his vehicles ... with the dealer paying me a fee for every car they leased from my efforts.

Next, I put together a short postcard ...
 
 

This postcard is worth $100.

Just bring this card to John John's Autos. -- When you lease your car from John John, you will receive a crisp new $100 bill.

Come by, today!

(John John's address, phone number, etc.)






The postcards were mailed to people who responded  to my Classified Ad ...

Need a new car? -- Don't buy it.  Lease it! -- Save hundreds of dollars. -- Phone:  555-1111

The Phone had a recorded message that asked them to leave their name & address.

Simple - but - it worked.


Lynn Johnson thought she was all by her lonesome ...

"I really like what you send in your newsletter. -- What I would like is probably not something you can answer in a newsletter, but let me at least ask you. -- I would like advice on what to do when the people closest to you don't support you in what you are trying to do (meaning trying to make extra money).  They claim that everything I want to try is useless and will never work, or is too risky and or too much money to start up.  Then, when you decide to keep it to yourself, they get upset because you are seeming to be sneaking around ... and they want to know what you are doing.  I feel like it's always a catch 22.  I know I am not the only one with this problem.  Because of the way things are I am afraid to try anything.  I know they are the way they are because they have the "old school" mentality where you are supposed to go to college and get a job so you can have some sort of "secure" future.  I don't believe that brings you a secure future.  I've seen too many 58 year olds get the boot (with minimal buy out cash), to be replaced by younger people that they can pay less money to.  I guess I just need some support and someone to tell me to keep trying and that everything will be ok. -- Your comments, please."

Thank You,  Lynn ...

Don't feel like the lone stranger ... all of us ol'entrepreneurs have lived through the same thing.

Every once in a while, my Mother still asks my wife "when is Jim going  to get a real job?" ... and, I've been in business for nearly 50 years.

Then, there was the time when I told my Mother about buying a bank, her comment was  ...  "Don't be silly.  People don't own banks."

No matter what you do or how successful you become, they just won't believe it can be done.  All you can do is go ahead and do it - but - don't ever  expect them to applaud you.  As a  matter of fact, some of them will believe you are involved in something crooked because they honestly don't believe anyone can make money without cheating someone.

A sad commentary on  our  society - but - that's what they have been taught by the journalists, movie & TeeVee writers who delight in depicting all business people as crooks.  The only thing is, without us, they wouldn't have a job.

Just  keep on keeping on.


Roy Preece was wondering what I do ...

"I look forward to Business Lyceum every month, and think you have an outstanding ezine with an excellent formula -- main article followed by reader's questions. -- It's the first email I read when it flies through the ether into my PC (by magic -- along with another 50 or so each day). -- You've said several times that if you had to start all over -- knowing what you now know -- you'd sell other people's products and drop ship them. -- I would love to hear your thoughts on choosing a market to sell to and choosing the products to the sell to the people in it."

Thank you, Roy ...

Never in my life have I "picked" a product.  They have all picked me.

I have never gone looking for a product or a market.  I have just kept my eyes and ears open and responded to the needs and wants of the people.


Skip Pratt wanted me to tell you ...

"I get all your emails and love your Business Lyceum newsletter. -- A friend and I recently launched a resource that you and your readers may want to know about:  http://www.trainerslink.com   It provides listings of all types of virtual events of educational nature. -- We are in need of listings.  If you or your readers would like us to promote your or their virtual event, please know there is an email link at the bottom of the homepage to send listings to us."

Thank You,  Skip ...

I just told my readers about it.


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
Grande Panjandrum


Thoughts For The Month!

"The question isn't who is going to let me; it's who is going to stop me."  -- Ayn Rand


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.

Note: If you want to ask a question anonymously just tell me so when you send in the question. -- Nobody but you and I will know who asked the question.


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