Business Lyceum

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


Editor/Publisher:  J.F. (Jim) Straw

JANUARY 2003


Greetings & Salutations:

This month, we're gonna talk about ...

Getting Rich Publishing Your Own Newsletter!

Articles written on this subject have ranged ... as they always do ... from the ridiculous to the sublime.  Some were well-written bits of wisdom covering the mechanics of producing a newsletter.  Others propounded upon the importance of graphics.  A few suggested topics and content to consider.

Having been a newsletter writer/publisher for 30 years, some of the articles made me laugh with delight.  Others just about made me cry with disappointment.  A few gave me gas-pains.  But, they all forgot the First Law of Business ...

Demand Creates Supply!
Supply DOES NOT Create Demand!

Think about it. -- If I have 1,000,000 widgets; valued at $5 each, how much money will I make? -- Not a Penny ... unless somebody else wants my widgets and is willing to pay the price. -- If there is no demand, the supply is worthless.

By the way, if our ego-maniacal government would apply the First Law of Business to the drug problem in this country, there wouldn't be a drug problem. -- Eliminate the 'demand' and the 'supply' won't matter. -- Spend the Big-Tax-Bucks on educating our children not to use drugs and arrest the 'users' (even the so-called 'recreational' users) and send them to rehabilitation camps paid-for with the tax-money now used to capture 'suppliers.' -- Eliminating the 'supply' will never solve the problem.  Eliminate the 'demand' and the problem will solve itself.

No Demand = No Profit Motive = No Supply!

No matter what kind of 'business' endeavor you choose ... including Newsletter Publishing ... the First Law of Business always applies.

That law is succinctly expressed in the maxim ...

Find A Need & Fill It!

Therefore, before you entertain the thought of starting your own newsletter, you must first determine that there is a 'need' (demand) for the information you intend publishing.

In my book ... "Own Your Own Mailorder Business" ... ... I tell you how I started my first newsletter, the "Business Intelligence Network." -- It came about because my readers 'demanded' more and more of the same kind of information. -- The 'need' found me, so I filled it ... profitably.

As a matter of fact, in all but one instance, that is the story of my life in newsletter publishing. -- Twenty-eight years ago, I purchased the "WorldWide Business Exchange,"  ... ... after having been a paid-subscriber to it for well over 5 years.  I 'knew' it was needed, because I, myself needed it. -- In all the other cases, the 'need' found me.

In 1984, after writing the booklet, "Offshore Banking Is Not Evil," my readers demanded more information on the subject ... which lead to the creation of "Offshore Banking News."

Although I wrote "The Burning Match" ... a booklet about Stock Market Investing ... in 1987, it didn't really catch-on until 1989.  Then, the demand for more detailed information generated "The Burning Match Newsletter" and "The Burning Match Trading System" and "The Burning Match Society."

"Mailorder Marketing," came into existence because, before publishing my "Own Your Own Mailorder Business" (OYOMB), in June, 1996, I sent and gave copies of the final manuscript to a number of my friends and members of my family. -- Each, in turn, asked for 'more.'  So, in anticipation of the demand the book would generate, I initiated the newsletter.  (I wasn't wrong.)

But ... I'm only telling you about the newsletters that were successful and profitable.

During that same time period, I started no less than four other newsletters.  (I won't even mention their names because they were such dismal failures.)

Why did they fail?

Well ... being a profit-motivated entrepreneur ... in each of those failures, I had found what I thought was a 'need' and proceeded to 'fill that perceived need' for a profit. -- In other words, I created the supply with the greatest need being my profit!

With the "Business Intelligence Network," "Offshore Banking News," "The Burning Match Newsletter," and "Mailorder Marketing," my sole intent and purpose was to share something I had learned (the hard way) with others who had a 'need' for that information ... without going through the hard-won learning process I had.

Don't get me wrong.  I am still profit-motivated - but - I learned (the hard way) that my profit motivation must be secondary to the 'need' of my readers.

Now ... if my short dissertation on the First Law of Business ... as it relates to newsletter publishing ... hasn't completely turned-you-off, let's talk about ...

Starting Your Own Newsletter!

Having just read about the First Law of Business, you are better prepared to start and operate a newsletter than 9 out of 10 people who do.

By knowing and understanding that law, you should have come to the realization that just because you can supply it doesn't mean anyone is going to buy it!  So, the first question in your mind should be ...

Is There a 'Demand' for the Information I Can Supply?

One of the ways you can go about determining whether or not there may be a 'demand,' is by researching the various "directories" of newsletter publications. -- If there are a number of newsletters offering information in the same field, there may be a big enough demand ... if you can approach the subject from a slightly different prospective.

In that case, order (pay-for) sample copies of the various newsletters in that information area.  Read and study them.  Determine whether or not you can bring a new or better perspective to the subject.

Then again, if there are no newsletters being published in that information area, it could be no one has thought of it - or - it may be there is no demand for that kind of information.

Either way ... the best way to determine whether or not there is a 'demand' is by creating the first issue of your proposed newsletter (without a date on it) and mail it ... FREE ... to a list of people who should be interested in the subject matter.

Along with the FREE sample issue, put in a 'cover letter' simply asking the reader if they would be interested in receiving "free" information about the newsletter enclosed. -- Don't tell'em they're gonna have to pay for the newsletter ... just ask them if they would like some more 'free' information about the newsletter. -- Be sure to enclose a Postage Paid Reply Envelope or a "Yes"/"No" Postcard ... so they can respond effortlessly.

If you get a BIG response (20% or more), you probably have a winner. -- If you get a Moderate response (10% to 20%), you need to test a few more lists before you decide. -- If you get a small response (less than 10%), go back to the drawing board.

By the way, that's the way "WorldWide Business Exchange" came into existence back in 1963.

Note:  All of my newsletters have been written from my own personal, hands-on experience in the subject matter - but - that doesn't mean you have to have personal, hands-on experience in your chosen information area.  Some of the better newsletters on the market today are written and published by people who have excellent 'research' skills and the ability to give the readers what they want (which is the real secret ... if there is one ... to successful newsletter publishing).

Beyond testing the subject matter of your newsletter, you also need to ...

Test The Title!

If your initial test results are moderate or small, instead of changing your subject matter ... or content ... on your further tests, try just changing the title.

You would be amazed at the importance of the right title.  I've seen poorly written newsletters with powerful titles make money hand-over-glove -- while far better-written newsletters, with a poor title, in the same information area have gone bankrupt.

So, before you give up on your idea ... test, retest, and test your "title" some more.

But, what about ...

Mechanics & Graphics!

Although this is a much discussed topic in the newsletter industry ... with as many different 'opinions' as there are Newsletter-Publishing-Gurus ... there is no right or wrong.  The decisions as to the mechanical layout of your newsletter and the graphics you choose to use are dependent upon what your customers want and need from you ... that's all that really counts.

Some of the most successful and profitable newsletters today, are still published like the newsletters of 40 years ago ... just white pages with typewriter style printing in an informal "letter" style.  Then again, other successful and profitable newsletters are almost magazines ... with pictures and 4-color printing.

How do you find out which is best for your newsletter? -- Aha!  Gotcha! -- You guessed it ... test, retest and test some more.  (Remember:  That's what separates the 'pros' from the 'amateurs.')

Of course, even after you have chosen your subject matter, mechanical layout and graphic design, the only way your newsletter is gonna survive is by ...

Selling Subscriptions to Your Newsletter!

Ouch! -- No matter how you approach it, selling subscriptions to newsletters can only be accomplished by mailorder methods ... there aren't very many 'stores' that sell newsletter subscriptions over the counter.  And, in 1984, when Publisher's Clearing House put out a letter to over 500 newsletters; hoping to include a sheet of 'newsletter stamps' in their mailings, only five of us accepted their offer.

That means you either have to learn the "art" of mailorder, or hire the best mailorder copywriter you can find. -- Newsletters live or die on their subscription revenue ... they don't, usually, sell advertising - and - those newsletters that do sell advertising most often just cover their cost of producing the ad-pages (because they don't have big enough circulations to justify charging the big-bucks necessary to make a profit from advertising revenue).

Which means ... you can have the absolute best content, with the finest graphics - but - if you don't spend the money necessary to sell subscriptions, your newsletter will bury you alive in printing and mailing costs. -- Far from the rosy picture painted by those who tell you, unequivocally, you can Get Rich Publishing Your Own Newsletter!

Remember:  Demand creates supply! (Not the other way around.)

Contrary to popular belief, even the best of advertising can not "create" demand.  The 'need' (demand) must already exist before your advertising can be effective.  All your advertising can do is tell your potential customers why and how your product or service can fill their need uniquely, better, cheaper, more efficiently, or without the drawbacks of someone else's. -- Advertising can not create a demand where no demand exists.

Now, it's ...

Bubble Bustin' Time!

Believe it or not ... the vast majority of newsletters in this country (well over 75% of them) have less than 1,000 paid subscribers. -- Successful newsletters have from 2,000 to 8,000 paid subscribers. -- Less than 10% of the newsletters on the market have over 10,000 paid subscribers.  And ...

Statistically, the cost of advertising for new subscribers eats-up over 80% of the first-year subscription revenue ... fulfillment costs average over 20% of subscription revenue ... leaving little, or nothing, from the subscription price paid by first-time and one-time subscribers.  Meaning, without a significant 'renewal' rate, even a "successful" newsletter could be operating in the 'red' for at least the first year ... or until the renewals start coming-in.

But ... what the hey ... if you can survive through the first year; get your 'renewal' rate established; stomach the time constraints of monthly deadlines; live with your calendar turned two months ahead; suffer the other 'slings and arrows of outrageous fortune' inherent in the small business community; and enjoy the shear delight of meeting satisfied customers everywhere you go, it's a wonderful way to make a fortune ... I should know, I've been doing it for 30 years.


Now, let's do some ...

Questions & Answers, Comments & Other Good Stuff!

Last month, with a heavy heart, I told you of the death of the legendary E. Joseph Cossman.

Joe was the "Entrepreneur's Entrepreneur" and the news media ... after interviewing hundreds of Joe's students ... labeled him "The Millionaire Maker" because the people they interviewed had really, and honestly, made millions of dollars following Joe's teachings.

After telling you of his passing, I spoke to Joe's wife; Pearl, on the telephone and we shared a brief moment of sorrow.

When I asked Pearl about the master course Joe had created over 20 years ago ... the course that gained him the label "Millionaire Maker" ... she told me that once the current inventory was gone, it would NOT be republished -- SO ...

Listen up! -- Right after Joe Cossman completed his master course, he sent it to me for my review ... as I had sent many of my writings to him for his review. -- To this day, when I am stuck for a business idea; or want to help someone else build their business, I very often turn to Joe's course for the insight I need.  It is ... without doubt or equivocation ... THE "holy bible" of the entrepreneurial world.

I don't care what business you are in; or what business you want to be in, every entrepreneur and every entrepreneurial hopeful should have Joe Cossman's "Complete Marketing Package" in their library, or ... as mine is ... next to their desk. -- But ... there ain't that many of them left and when they're gone, they're gone.

Do yourself a favor ... even if you have to steal the money from your kid's piggy banks ... get your personal copy before they're gone. -- Believe me, you'll will find EVERYTHING you need to succeed in ANY business in that course.

http://www.cossman.net/cossman.com/pages/completepkg.html

Order your personal copy, today!


Justin B Handley wrote ...

"First off I just wanted to say that I really appreciate your newsletter -- it's one of the only one's I read every time it comes.  I wanted to let your readers in on a cool new site that is going to be launching in about a month.  It is going to provide members with a way to build an e-commerce ready website, have it hosted for free for life with no outside advertising, and get great free promotion for it.  I'm not sure how much it's going to cost after it's ready (I think $100-150), but right now people can join for only $33 (that's right - $33 for a lifetime of hosting -- you can't beat that!). I hope you'll let your reader know to check it out."

Thank You, Justin ...

I truly appreciate your kind remarks.

Any of you readers who may be interested, can check out the site at:

http://www.freeadvertisingresource.com


Making a Living: Without a Job

Is one of the BEST dessertations on the subject I've ever read.

Written by my ol'friend, Bruce David, it would be cheap at any cost - BUT - Bruce has decided to give it away FREE. -- All ya gotta do is send him an email with "No Job" in the subject & he'll get the report back to you within a day or so.

Hey ... do it, today ... Bruce might change his mind.


Robert Leong needed to know ...

"I enjoyed reading your newsletter.  Do you have any experience in networking marketing? It seems that network marketers' modus operandi is 3 way calls and home parties. I haven't seen any internet activities by MLM organizations like Mary Kay, Amway, etc."

Bob:

My first experience with MLM was wa-a-a-ay back ... with William Penn Patrick's Holiday Magic. At the time, I was selling "Avon" (I was a ding-dong Avon "lady" out in the farm lands of Kansas) at the time.

Holiday Magic was as good as Avon but their commissions were better, so I picked up the line.  Then, I started getting extra commission checks when some of my satisfied customers bought into the opportunity.

Some years later, I signed up for the "Koscot Interplanetary Cosmetics" Mink Oil line (Glenn Turner). -- At the time, I owned a chain of Women's Wig Shops across the Southeast and simply wanted to sell the cosmetics in my shops. -- The first month, the girls who managed my wig shops turned in over $25,000 worth of orders from the counter displays I had installed in each of the shops. BUT ... I couldn't buy any of the cosmetics from Koscot.  All of the cosmetics were being used up to make sales kits so there were none left over to "retail."

In 1978 (or was it 1979), I sold "subscriptions" to the first business opps newsletter sold by MLM. -- I just sold subscriptions to a good newsletter ... the customers signed up for the opportunity ... I was making over $20,000 per month; even after the newsletter quit publishing (which put the company out of business for accepting payment for something they weren't delivering).

Over 8 years ago, I was approached by literally DOZENS of promoters wanting me to help them create MLM plans for their products, that's when I learned what the industry was becoming. -- None of them really wanted to sell their products. All they wanted was to "do a MLM" to make some big bucks. -- Unfortunately, that experience threw me into personal contact with some of the big name MLM con-men and left a very bad taste in my marketing mouth.

That's when I wrote the article entitled, "MLM:  What it was.  What it became.  What it is today." -- I recommend that you read it at:  mlm.html  ... before you get involved.


John Shreeve wanted me to tell you ...

"In case you are interested, I'm alerting you to my new affiliate program that pays 45% commission on every sale. You might feel it is worth mentioning in your Business Lyceum e-Letter. -- The affiliate program is free to join. And is for my e-report and e-course for sufferers from Tinnitus, the "incurable" ringing ears condition that afflicts 20% of the population (and probably 20% of your mailing list). -- The powerful thing about these products is they are by an ex.sufferer and provide a proven solution to Tinnitus. The e-course is called "Beat Tinnitus Now," ($49.97), and the e-report is called "Discover The Truth About Tinnitus," ($9.97). -- As I said, the affiliate program for these products pays 45% commission on each sale you make. What's more, even if you refer people to my free "Beat Tinnitus" ezine, but they buy later, you still earn your full commission. -- The key advantage of this affiliate program is my e-products are generating a lot of interest around the Web. Why? Because doctors say ... and most Tinnitus sufferers think ... there is no cure for Tinnitus. Yet here I am, an ex.sufferer, with a solution. -- This is a very powerful selling point. Market it well and you stand to make good money referring my products over the Internet or by e-mail."


Okay, John ...

I told my readers about it.

Here are the URLs:

Main product page:  http://www.freefromtinnitus.com

Affiliate program:  http://www.freefromtinnitus.com/join_affiliate_program.htm


Willie Allen asked ...

"I have a friend that has invented a unit that  is installed on a water heater that will  protect the home from fire damage if the unit develops a problem.  My question is where to start in looking for outlet for sales."

Bill:

Believe it or not ... if I were doing it, I would try to interest the Fire Departments in marketing the device.  They regularly offer products to protect residents from fires.

Give it a try.


Brian Morgan asked for your help ...

"My name is Brian Morgan. I'm 39 years old and I've just made a decision to work from home full time. -- I live in the United Kingdom, and I'd be really grateful to know if any of your subscribers are in the position that I want to be and might want to offer me some good advice. My main issues are about being self employed and any tax issues, etc,etc... -- I'd like to say that since I found your newsletter, I feel that I can really do it!  People are surprised that I want to work from home, but I am very confident and reading the newsletter is really encouraging."

Thank You, Brian ...

I truly appreciate your kind remarks.

I have passed your query along to my readers.



 

Chuck Huckaby offers you a chance for FREE Publicity ...

"I always love reading BUSINESS LYCEUM. -- I'm getting back in the publishing world after being out for a few years for personal reasons. -- I've decided to profile "rags to riches" stories both on my local radio show on WLX here in South Central Tennessee and ALSO through my electronic eletter "Official New Rules" to help encourage people to get into business for themselves now that all of "yesterday's" rules for being successful have changed! -- If your readers would like free information by email about how to get free publicity, have them email my autoresponder for details instantly. -- It also tells them how to receive a $199 bonus simply for subscribing to the new ezine!"

Thank You, Chuck ...

I signed-up for your ezine.


John Longmore wanted you to know ...

"I have just created a Club called the Cyber Digital Club. -- The Club sources it's members digital products they can have, which come with resell rights and in most cases websites to sell the products from. -- Anyway, membership is $9.97 per month or $59 per annum and for that they get more than 20 products right away (as a join-up bonus -- value $500 plus) and then each month they get a new (sometimes more than one) product -- in the next two months we will be giving a $250 + value product as one of the 'give aways' -- but, we don't only give ebooks -- we also give software like sitemaker, affiliate guard, etc. and we have got in quite a lot of audio stuff now, like the one hour and 20 minute interviews with Internet experts. In fact Members can request (or suggest) their monthly product -- also nearly all products do carry re-sale rights."


If you're interested, you can find out all about it at:

http://www.webdazzlers.com


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


Thought For The Month!

An "opportunity" is just an "opportunity" - but - "information" is the seed from which a multitude of opportunities may be generated. -- J.F. (Jim) Straw


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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