Business Lyceum
e-Letter
Practical
Instruction in the Arts and Sciences of Making Money
JUNE 2001
Greetings & Salutations:
The late, great P.T. Barnum once said ...
"The great secret of success in anything is to get
a hearing. Half the object is gained when the audience
is assembled."
Understandably, most of the marketing gurus focus their
efforts on teaching you how to "get a hearing" ...
how to write dynamite headlines ... how to use "bullets"
... how to use envelope "teasers" ... how to grab the
reader's Attention, spark their Interest, flame their Desire,
and ask for Action. But ...
They seem to overlook the fact that they are directing 100%
of your effort toward only half the requisite formula.
Because ... as P.T. Barnum said ...
"Half the object is gained when the audience
is assembled."
When the marketing gurus finally ... if ever ... hit
upon the subject of "assembling an audience," they
focus on mailing-list selection, demographic profiling, and lead
generation. They either forget, or don't realize, that
fully half the purpose of the ad-copy is to "assemble an
audience."
Mailing-list selection, demographic profiling, and lead generation
... although easily confused with "assembling an audience"
... are really more in the realm of "defining" an audience.
Once an "audience" has been "defined," it
still has to be "assembled" in order for your message
to "get a hearing."
Actually, I think the marketing gurus really know about assembling
an audience ... other than the mechanics of "defining"
the possible customers ... but, it really is a rather difficult
concept to teach. -- So, let me use an easier example to explain
what I mean by "assembling an audience."
Here are three headlines for a "sales letter" about
an up-coming Elvis concert ...
Attention: Rock & Roll Fans!
Attention: ELVIS Fans!
ELVIS!! Live! In Concert!
It would appear that all three of those headlines would get
Attention - but, which one of them would do the most to "assemble
an audience."
Let's take a closer look ...
Attention: Rock & Roll Fans! -- "includes"
everyone who considers themselves a "Rock & Roll Fan"
- but - it "excludes" everyone and anyone who doesn't
consider themselves a "fan."
The headline "defines" a general audience.
Attention-getting - but - whose attention?
Attention: ELVIS Fans! -- "includes"
only those who consider themselves to be "fans" of
Elvis - but - it "excludes" anyone who really isn't
a "fan."
The headline, again, "defines" an audience - but
- this time it is only a very small segment of the potential
audience.
Beyond that, both of those headlines might well turn-off some
of its intended audience. -- Those people who might just enjoy
some of the Rock & Roll music ... or some of Elvis' hits
... but, subconsciously, they don't want to label themselves,
or be labeled, "fans."
ELVIS!! Live! In Concert! -- not only "includes"
Rock & Roll Fans and Elvis Fans, it "includes"
those people who have only heard about Elvis ... people who enjoy
seeing any performer or entertainer "live" ... people
who enjoy going to concerts (of any kind) ... and people
who like to socialize by attending public events - but - it would
"exclude" only those who didn't share any of the above
mentioned attributes.
The headline is "inclusive" enough to attract the
attention of a huge audience ... with varying reasons to be interested
... and only "excludes" those who wouldn't be interested
for any reason.
By the way, nobody in the entertainment field would write
a "sales letter" to invite people to a live concert.
(Besides, Elvis has left the building.) -- I just used it as
an example, in order for you to more easily understand the concept
of "assembling an audience."
When I sit-down ... or stand-up, for that matter ... to write
ad-copy for any kind of product or service, the first thing I
do is "define" the audience from which my customers
will come.
Sometimes, I use the "definition" of my chosen audience
as the premise for my headline, bullets, and body-copy to "exclude"
everyone else. -- Like a couple years ago, when I wrote an ad
for an Air Purifier used in trucks, I used the headline, "Truck
Drivers Stink!" -- Since the product was "specifically"
being sold to Truck Drivers, I purposely "excluded"
everyone else.
Other times, I use the "definition" of my chosen
audience to "include" everyone who might have
even the slightest interest in the product or service ...
"excluding" only those who would have little or no
interest at all. -- Like the lead-line I have used for over 11
years to sell subscriptions to our "WorldWide Business
Exchange" --
-- business opportunities newsletter, "If you have
a few minutes, I'd like to tell you how I became a millionaire
... maybe it will help you in your business."
-- Using that lead-line "includes" anyone, and everyone,
engaged in a business of their own ... and those people who might
want to be.
Then again, I might use a "non-defining" headline
that allows my audience to "define" itself ... like
my "Self-Liquidating (Arbitrage) Loans" --
... when I know there is an audience but I can't "define"
that audience specifically. -- I simply let them "define"
themselves.
Which ever method I use, my purpose is to "assemble an
audience" ... an audience who will, hopefully,
include enough people who will applaud my performance ... send
money ... to make my efforts profitable.
By the way, the "Truck Drivers Stink!" ad
got a lot of comments ... good and bad, positive and negative
... but it didn't make any money because the product was over-priced
(a point I brought to my client's attention before I wrote the
ad).
So - no matter what the marketing gurus might tell you
- remember ...
Before your message can "get a hearing"
it must FIRST "assemble an audience."
As I have said, over and over, "Ad-copywriting is more
art than science." -- That's why all of us old masters
are right ... and all of us are wrong.
Turn an "old" product into a "new"
product.
Make it "new," by changing its design, improving
its quality, or adapting its uses. -- Then, it might be "revolutionary."
Back when I was in the Women's Wig Business, many of our customers
had complained about the effects of static electricity on synthetic-fiber
wigs. -- Since the synthetic-fiber used to make wigs is
only slightly different from nylon, the "hair" on the
wigs would collect static electricity and either stand out in
an uncontrollable frizz, or attract dust, bits of paper, and
other light debris from the air.
When I received the first flyer offering "Anti-Static
Wig Spray," I called and ordered a case ... even though
no one in the industry had ever heard of the company offering
this "revolutionary" new product. -- Later, talking
with the "inventor," I learned that his wife
had told him about the static electricity problem she was having
with her wigs.
At first, he had tried to find a way to "ground"
the wigs, so they wouldn't collect static electricity. -- That
didn't work. -- Then, he noticed a can of an anti-cling spray
... used to eliminate static-cling from clothing ... on the shelf
at the store. He took it home and sprayed it on his wife's
wigs. Voila ... no more static electricity problems.
So, he contacted the manufacturer and had the anti-cling
product private labeled as "Anti-Static Wig Spray."
The rest is history. He made his fortune before everyone
else in the business discovered anti-cling spray, and began having
it private labeled to reduce static electricity on synthetic-fiber
wigs.
By the way, his "Anti-Static Wig Spray" ... in the
same can as the anti-cling product but with his label ... sold
for almost four times the price of the same product sold to eliminate
static-cling from clothing.
Not a new product - but - a "new" idea.
Now, let's do some ...
Questions & Answers, Comments
& Other Good Stuff!
Peg Kelley wrote:
"Just to be fair ... your interpretation of the 'learned'
psychologist's comment - described in May's e-letter - is inaccurate
and unfair.
+++
To which the learned psychologist responded, "The traits
indicated in the test are necessary to becoming an entrepreneur
but they are not required to be an entrepreneur."
In other words ...
If you pass the test, you have what it takes to become an
entrepreneur - but - you can't be one.
+++
"What he actually said was that the traits in the test
are necessary to entrepreneurs but without them, you can still
be an entrepreneur. -- I'm no fan of academic gobbledygook.
I do believe in fairly representing what people say, however,
no matter what their background."
Thank You, Peg ...
You are right ... I could have said it better.
The point I wanted to make was that people shouldn't give
up on becoming an entrepreneur simply
because they can't pass any of those silly test.
I am relaying your comments to my readers to clarify the situation.
Then ... Bugsy wanted me to tell you:
"I agree a test is not the answer.
>What Does It Really Take To Be An Entrepreneur?<
"My answer is an - Idea - Plan - Desire - Don't Give
Up - Work - this is what you need to be an entrepreneur. -- To
know if you will be a 'success in your own business' here
is a very simple method you can use ...
===========================================
Retired USAF M/Sgt Has Come Up with a Unique Method
that will indicate if you will succeed in business by
using
free garden seeds he will give you.
===========================================
"This is an indicator not a test. If you follow the instructions
that he sends along with the free seeds. You will get the answer
you need.
http://www.discount-merchandise-free-catalog.com
"P.S. Jim, I think it's about time that everyone
look up to you as the modern day - Napoleon Hill - W.Clement
Stone - Andrew Carnegie all rolled into one."
Thank You, Bugsy - but ...
I'm afraid Clem Stone would turn over in his grave if he knew
you compared me to him.
At one time Clem wanted to buy one of my businesses but I
didn't want to sell. We were in a heated discussion on
the subject when a newspaper photographer stepped up and asked
us if she could take our picture shaking hands (the picture hangs
on my office wall). -- After taking the picture, the photographer
made the comment, "You two look like father and son"
(that was when my mustache was a natural coal black stiletto).
-- To say Clem was unhappy with the comparison would be an understatement.
I appreciate your response about what it takes to be an entrepreneur
... and, I'm letting my readers know about your "Free Seeds."
Diane Everroad asked:
"Lately, Jim, I have had people wanting to do projects
on the Internet... and some are very good ideas. But, they need
someone or something to complete their project. And, we
almost *always* know what they need or where to get the service
or product. For example, one person wants to do a "voice-over"
tape for a small book they have written (to offer with their
book sales). Another person wants us publish their ebooks, where
we would set up the site, take care of the transactions, etc.
-- My question is: how can I know what to charge for services,
finders/contact fees, etc., such as these requests?"
Diane:
That is probably the hardest question in business to answer.
But, I'll tell you what I would do ..
First, if the project is something that is being done by others,
I would check their prices.
Taking the voice over as an example, I would check to see
how much the professional announcers are charging ... call a
BIG Radio Station in your area & ASK. -- If I were going
to do the voice over myself (which I have), I would charge the
same rate. If I were going to hire someone to do it, I
would ASK them how much "commission" they would pay
if I brought them a client.
The person who wants you to publish their ebook and do all
the work, is looking for a "publisher." Therefore,
if you take on the job of publisher, you do all the work and
pay the "author" a royalty ONLY on all sales ... usually
15% of gross sales.
On the other hand, if you are going to do all the work but
you don't want to put up any "cash" to get the ball
rolling ... do it like the vanity press. Charge the person
for publishing their ebook and give them a 15% royalty on gross
sales. -- What to charge? -- Again, go to those who are doing
it ... the vanity publishers. Tell'em you have a book you
want published and let them give you a price. Use that
pricing (even though the prices is usually quoted for XX number
of printed copies of the book).
Then again, when I am confronted with a project that I really
can't find a way of pricing, I drop back to my old stand by ...
Consulting Fee. I tell'em my "customary fee"
is $5,000 per day; 3 days in advance. -- That will usually get
the ball rolling. The 'real' ones will either send you
the money or start negotiating for a better deal. (In my
case, the 'real' ones just send me a check for $15,000.) -- When
you simply don't hear from them you will know they were just
fishing. (Until you have the credentials, you might want
to make your consulting fee a few hundred a day; or maybe *so
much* per hour, but, always put a "minimum in advance"
to discourage the tire kickers who will promise to "pay
you Tuesday, for a hamburger today."
When I really don't have time to mess with trying to price
a service, and I know I can do the job cheaply & effectively,
I just ASK ... "How much are you willing to pay?" --
You'd be surprised how many 'real' business people will already
have a figure in mind. -- Or, in some cases, I have refused their
offer and made a higher counter offer. -- Then, you can take
it or leave it - but - if you leave it, they may come back with
a better offer.
Hope that helps in some small way.
Anony Mouse wanted to know:
"I am in a downline club. I have several members
in my downline. When it is time to sign up for one of the
opportunities (pay money), a lot of them do not. Is it
something I am doing wrong?"
Mouse:
In the direct marketing world, the response rate (the number
of people who "buy" ... pay money) is a very small
percentage ... usually from 1% to 3% ... so you probably aren't
doing anything wrong, you are just getting the normal response
rate. -- Remember, the people in your downline most likely signed-up
for FREE. That only means they held up their hand to say
they might be interested (like any other inquirer). Once
they sign-up for FREE, you still have to "sell them"
on the idea of paying money.
Before you go too much further in MLM, I suggest you read
my FREE Report on the subject, at:
mlm.html
Tim Spencer needed an answer:
"I've asked this question in a few forums and have not
received any decent replies. -- I got the idea for this
from a book called 'The Secrets of Syndication' by Richard Beguelin
©1985. The basic premise is to buy businesses or income-producing
real-estate such as office buildings by forming limited partnerships.
The two types of partners are limited partners (invest money
and do not manage) and general partner(s) who manage the business
and may or may not invest also.
"The job of the general partner (what MY role would be)
is to research and find projects that will pay a high enough
return on investment to attract limited partners.
"Mr. Beguelin lists several projects in his book that
he did. The general partner makes money by 1) charging an upfront
fee for finding, structuring and closing the deal, and 2) gets
a cut of the profits, usually AFTER the investors have been paid
back 100% of the initial investment.
"I know this basic business set-up is sound. It just
depends on the project. I understand that a lot of commercial
real-estate is done this way. I have done much research into
this and am actually looking at some specific beach property
that I think can pay back 30% - 40% ROI per year.
"My biggest hurdle and it's due to the fact that I am
not really a salesman (but I'm not worried about that because
I will put together a prospectus that must sell itself for each
project) is this: I cannot advertise publicly for investors -
all states have laws that prohibit advertising to locate partners
for a limited partnership. And I live in Maryland, which limits
the number of limited partners to 35.
"Finding businesses to buy/other projects will not be
a problem. I need to know how to find people with money
to invest! And basically by word of mouth.
'"Have you done this sort of thing; or do you know someone
who has? -- If so, I'd appreciate input on how to locate investors."
Tim:
Yes, I have been involved in some Limited Partnerships over
the years ... on both sides; General & Limited.
Although there are limitations placed on the number of Limited
Partners, there are a variety of ways around the limitation;
and, if memory serves, the limitation is based upon whether or
not the offering is registered - BUT - in order to do it right,
you must have an attorney well versed in Securities Law prepare
the information and advise you.
Once you have the partnership properly structured, you may
advertise for investors ... there are some restrictions on that
advertising but you do advertise just as you would for anything
else. -- Have your attorney advise you as to where, how, what,
etc.
The best way to find investors is to rent mailing lists from
companies that sell securities, or those that publish newsletters
about investing and solicit them directly.
Daniel Byrnes wrote:
"I have purchased two of your publications in the past
and currently receive your e-Letter. -- I have seen references
made to finders fees as a viable source of income even for a
new player. -- I know you publish a guide for this and have a
question. -- With the Internet and B to B exchanges online at
the present time, does this still hold true? I value your
opinion as I have utilized some of your concepts for a mail order
product I've started to market with beginning indications
of success. -- I am looking for more income to ensure that I'm
never a wage slave again and would like to take advantage of
'Finding' to supplement my present situation. By the way
I plan to purchase your Finders Fee course in the near future
if you feel there is room for someone like myself with no experience
in that game to succeed."
Dan:
The Finder's Fee field is always wide open. There can
never be enough Finders. - BUT ...
Finder's Fees are NOT an on-going, cash flow business.
They have always been, and always will be, catch-as-catch can.
-- You may earn a fee almost immediately, or it may take you
months, but you have just as much of a chance as do those who
have been doing it for years - because - who ever makes the "find"
earns the fee.
Actually, the Internet has made real "professional"
finders even more valuable in the business community because
the real finder EARNS fees by doing all the legwork ... chasing
down blind alleys ... saving the company paying the fee a great
deal of money.
You can learn more about Finder's Fees in the FREE Report
at:
finders.html
Joseph Gardner needed help:
"I am a Plumbing contractor that specializes in slab
leak repairs. I need help in marketing to new homeowners in my
target areas via DIRECT Mail. -- Would you happen to sell a template
of successful letters I could model for the realtors? -- Do you
advocate using Classified ads under the plumbing heading in local
Newspapers?
"My new ad reads...
Slab Leak Specialists !
In most cases your Insurance
Company will cover our charges.
serving your neighborhood since 1989
909-279-5457 License #535966
same day service.
"Gordon Alexander speaks VERY highly of you and I'm very
fond of Gordon so I trust and VALUE your opinion."
Joseph:
Rather than trying to sell your services directly to the new
homeowners, try sending a letter to all of the Real Estate agents
& brokers in your area telling them about your services ...
what you do, how much you charge, etc. -- Then, offer the Real
Estate agents a Finder's Fee (say 5%) of any job they send your
way.
Sometimes, in order to make 'direct' marketing work, you have
to take an 'indirect' approach.
NO ... I do not have any template letters - and - I do not
believe that any advertising template letter is worth the paper
it is written on. -- How can you expect to sell "plumbing"
services using a template letter originally designed to sell
"how to" information? It simply won't work -
however - you might be able to adapt pieces & parts from
a number of sales letters (from different industries) to fit
your industry.
YES -- I definitely advocate using local newspaper classified
advertising for a local plumbing business.
Nearly 50 years ago, a friend of mine started a small plumbing
business and, claiming he didn't know anything about advertising,
he simply told the local newspaper to run a classified ad every
day stating, "We do plumbing" with his name & telephone
number. Within 10 years, he was the biggest & busiest
plumber in the county ... 10 years after that, he was the biggest
plumber in the state ... because anytime anyone needed plumbing
work done, they knew his name & telephone number from having
seen it EVERY DAY in the classified ads.
Now ... to your advertising:
Although I know what a "Slab Leak Specialist" is,
unless your potential customers do your advertising dollars will
be wasted.
One of the big problems in advertising is that all too many
advertisers mistakenly assume that their customers know the jargon
of their industry. To be effective, your ad should be written
in such a way that your customers can more easily identify themselves.
How about: "We fix plumbing leaks under homes with
concrete floors." (Get the idea?) That way,
people who live in homes on concrete slabs will know YOU as the
plumber to call.
Roger Lee wrote:
"Please include this note in your newsletter. -- Reprint
Rights Available: Christian Poetry available to be used
for greeting cards (Christmas), may be used with novelty items.
Such as, mugs, mouse pads etc."
Okay, Roger ... there it is.
Roy Preece wanted to know:
"I am setting up a 'members only' site on the internet
(for people who sell advertising space for their living). --
I am going to test charging $144 a year (or $12 a month) for
membership. Do you know of any research -- or have any experience
-- which shows if it is best to ask for annual, quarterly, or
monthly payments? -- I am going to test the price point first
($12 a month, rather than $9 or $17.50) and would like to know
which is the best payment schedule to offer."
Roy:
Although I have never sold a monthly service on the Internet,
I can only tell you how it is done in the paper & ink industry
... in which I have been involved for over 30 years.
On my monthly paper & ink newsletter; "WorldWide
Business Exchange," each issue has "Single Copy Price
$5" printed on the front cover ... that equates to $60 per
year. Then, a 1-year; 12 issues, subscription is $48 ...
$4 per issue. Six Months is $27 ... $4.75 per issue.
And, 2-years is $89 ... $3.71 per issue.
Since you are considering charging $12 per month for your
service, I would make the service available for 3-months ($35)
... 6 months ($69) ... 1-year ($120) ... the longer the subscription,
the bigger the discount. -- Get the idea? -- Then again, you
might want to use $17.50 as the per month service price ... $15/month
for 3 months ... $12/month for 6 months ... $9/month yearly.
By the way, statistically, 40% of your subscriptions will
be for 3 months ... 40% for 1 year ... 20% for 6 months.
If your monthly service is as good as your current FREE service,
it is sure to be a winner. -- I have read every word.
Diane Martell wrote to tell me:
"My sister and I set-up online
t-shirt stores for people who want to add another income stream
to there business. -- We set-up the store for free and the store
owner makes money on every sale. (We also make money on every
sale). -- The format of the store is the same for everyone. --
There are eight items in total in the store. -- We can put there
logo or design on the shirts. -- There is also room up top to
insert there own information. We actually are setting the stores
up with another internet company which they do all the fulfillment.
-- They print the shirts, package it, ship it right to the purchaser,
collect the money, send us the money and then we send the store
owners there profit. -- We figure this would be good for fundraising,
conferences, family reunions etc. Our sample store is at: http://www.onlinetshirtstore.bigstep.com"
Looks good to me. -- Check it out.
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
Audience Assembler
Thought For The Month!
"It's not what you look at that maters, it's what you
see." -- Henry David Thoreau
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.
Return to the Archives
Copyright - 2001, J.F. (Jim) Straw. All rights reserved.