Business Lyceum

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


Editor/Publisher:  J.F. (Jim) Straw

JUNE 2002


Greetings & Salutations:

This month, let's explore the world of ...

Classified Advertising

When I have finished, you'll know more about the classified advertising game than 90% of the self-styled mailorder "gurus" who got rich selling "how-to get rich in mailorder"information.

To begin with, there are two reasons the self-styled mailorder "gurus"don't show you their "successful"classified ads. -- (1) They don't have any because they've never done it, but they did read about it somewhere and copied the idea from something a real mailorder professional wrote years ago ... you are supposed to "do what they say, not what they do."-- (2)  If they do, really, have a   "successful"classified ad, they don't want you ... and a few hundred others ...  using the same ad; diluting the effectiveness of the ad for them.

One of my all-time "big"response ads was:

FREE BOOK -- "Offshore Banking Is Not Evil."

Over 30,000 people requested that "freebie"in 1988. -- Every "Free"booklet I sent out cost me nearly $3 ... plus the cost of the ads.  Instead of the usual 15% to 20% conversion rate (paying customers) I usually got from "inquiry"ads, the rate was a low 2% to 3%. -- That promotion ate my lunch.

In 1989, I changed the ad to read:

OFFSHORE BANKING is not evil.  Free.

Each inquirer received a one-page flyer ... which cost me about 20¢ to send to them ... offering the book for $10. -- The response to the ad was much, much smaller but the $10 price tag on the book paid for my ads and my conversion rate went up to 30%, producing a significant profit on the very first mailing.

Unfortunately, when the self-styled mailorder "gurus"... who got rich selling "how-to get rich in mailorder"information ... tell you that "you can get rich by running classified ads,"almost everyone gets the impression that, all you have to do is run a classified ad and your mailbox will be filled with cash, checks and money orders. -- That's a misleading, half-truth, at best.

The truth of the matter is ...

There Are Three Distinct Purposes For Classified Advertising!

One purpose ... the one most people envision ... is that of actually "selling"something in the ad - or - getting people to send you money for "information"about your product or service (enough to pay for the ad and give you a profit).

That approach might work if you are "selling"a very specific product or service (something you can fully and completely define, in detail, in just a few words), to a very specific targeted audience (so knowledgeable of the product or service your ad will be readily understood), at a very "cheap"price ... usually less than $3. -- Or ...

You might be able to "sell"a Catalog ... for $1 to $3 ... if the catalog itself appears to have a perceived "value"for the reader ... such as:  "WOOD WORKING  Equipment, Tools & Accessories - over 3,000 items.  Catalog $2."-- That would work because the reader knows that a catalog with 3,000 items is worth something.  Of course, you probably aren't going to make any money directly from the ad    because it will probably cost you more than the $2 to print and mail the catalog. -- But ...

If you are trying to get people to send you money for "information"about your product or service ... no matter what it is ... you've got to make your classified ad so intensely intriguing that the reader's mouth waters in sheer anticipation of receiving it.

Granted, if you can get $1 to $3 for your information, you can eliminate a lot of tire-kickers - but - you'll also get a much smaller response to your ad   - and - in most cases, when the inquirer realizes they have "paid good money"(even if it's only $1) for your "advertising"materials, you have less chance of converting that person to a "paying customer."-- That's why I never asked for even a SASE (i.e. Self-Addressed Stamped Envelope) in any of my classified ads.

Unfortunately, the self-styled mailorder "gurus"... who got rich selling "how-to get rich in mailorder"information ... know that their high-powered, bull-stuff (you know what I mean) ads have mislead you into believing you can "get rich selling stuff in classified ads."  So, they attempt to teach you the "art"of classified ad writing in their "get-rich-quick-in-mailorder"materials.

Using the A.I.D.A. formula (i.e., Attention - Interest - Desire - Action) ... although they have (probably) never done it themselves ... they try to teach you how to write hard-selling ad-copy in 50 words or less.

Hey!  If you think it's hard writing a 4 to 16 page letter to sell your products or services, try it in 50 words or less. -- That's why they don't give you any real examples.

Okay!  Selling something, or getting people to send you money for something, is one purpose of classified ads. -- What is the second purpose?

Believe it or not, the second purpose is ...

The original "How-to Make Money From Classified Ads"method!

Nearly 40 years ago, I paid $1 for the report. -- it's bundled-up in my old archives somewhere - but - I'll never forget the ad it used to teach the method:

DINING ROOM SET.  Table, 6 chairs, hutch, server.  Solid oak.  (($25))  Moving.  Must sell. (The price was optional.)

Using that ad, the writer explained a little bit about the psychology of the ad ... especially the "imperative"at the end and, if memory serves, he gave a  number of different imperatives you could use in your ads. -- The price was optional because he only recommended listing a price when it was so low it made the reader's mouth water. -- The rest of the report was about "how & where"to find old furniture, equipment, cars, etc., to "sell"in the Classified Section of the newspaper.

It ain't mailorder, but ... believe it or don't ... back in my younger days, I made a nice piece-of-change using that method.  (I'm sure it'll work just as well today ... if'n you wanna try it!)

That brings us to ...

The Best Purpose for Classified Advertising!

If you haven't already guessed it -- the best purpose for classified advertising is Lead Generation ... getting inquirers ... building your mailing list.

That's what the self-styled mailorder "gurus"... who got rich selling "how-to get rich in mailorder"information ...  really mean by what they say in their high-powered, bull-stuff ads - but - they know That's "not" what they mislead you into believing.  So, they have to mislead you further by trying to teach you to write hard-selling ad-copy in 50 words or less.  But ...

The BEST Classified Ads ONLY Locate & Identify Your Prospects!

All you should ever want from your Classified Ad is for interested readers to "raise their hands and be recognized."-- That's it.  Nothing more.

Even the original "How-to Make Money From Classified Ads"method only used Classified Ads to locate and identify those people who might want to buy the used merchandise you had available.

When any "legitimate"mailorder marketer tells you that you can make big money from small classified ads, they mean you can use Classified Ads to locate and identify prospective customers who want or need products or services like yours. -- Once you have located and identified a prospective customer, it is up to your sales material ... like any good salesman ... to "make the sale."

Only the self-styled mailorder "gurus"... who got rich selling "how-to get rich in mailorder"information ... will mislead you into believing anyone gets rich "selling"products or services in Classified Ads.

Although most mailorder marketers ... professionals and amateurs alike ... make it a point to create a separate inquiry (classified) ad for each of their products or services, back in the early 1980s, I realized that anyone who responded to a classified ad about any kind of money making opportunity was a "prime"prospect for any and all of my products.

So, I came up with 2 or 3 "generic"ads that pulled the names and addresses of people who were interested in making money ... the idea was very simple.  All I wanted the reader to do was "raise their hand,"then I could send them mailers on any and all of my money-making products and services.

NOTE:  I put a couple of my "best"generic classified ads in the 4-page cover sheet that encloses my drop ship dealer program ... along with my book, "Own Your Own Mailorder Business." -- (Available at: ) -- Those ads worked like a charm for years (they still do).

Now, I'm gonna tell you ...

A REAL SECRET About Classified Advertising!

Every month ... as the editor of "WorldWide Business Exchange"... I write over 100 Classified Ads for my subscribers.  They don't even know what I am doing for them. -- And, every month ... regular as clock work ... I get cussed-out by one or more of them.

Why do they cuss me out? ó Because, they have sent me 4 or 5 pages of sales material "selling"their products or services - or - they sent me their hard-selling classified ad they spent hours and hours writing but, all I did was put a half-dozen words in the publication.

A month later, they call or write to apologize ... when they discover that my half-dozen words out-pulled all of their previous efforts.

Why? ó Because ...

Classified Ads ARE NOT Intended To Sell!

Classified Ads should "tell"- or - "arouse curiosity"... get the reader to ask for more information ... not sell!

Think about it!

A Classified Ad is called a "classified"ad because it appears under a "classified heading"in the publication.  Therefore, anyone reading that specific "classification"must be interested in the products or services so classified.

So, all you have to do is "tell"them what you have - or - "arouse their curiosity"about what you have. -- Since they are already reading the "classified"ads, they know they have to get in touch with you, somehow, in order to get all the details.  Your ad just has to tell them how to contact you.

NOTE:  When you read the two classified ads I give you in my drop ship dealer materials, you will notice that neither one of them "sell"anything - but - they do arouse the curiosity of anyone who reads them who might be interested in making money. -- That's all I need to do to get them to "raise their hand and be recognized."  Then, it's up to my sales material ... like any good salesman ... to "make the sale."

YES!!  You can make a fortune from small classified ads ... once you realize that ...

Classified Ads Are Only a Tool For Prospecting!
it's up to your sales material ... like any good salesman ... to "make the sale."


Now, let's do some ...

Questions & Answers, Comments & Other Good Stuff!

Erick Starren wrote to tell me ...

"This is not a question, but an observation on a curious phenomenon I have encountered in Mailorder.  Every time I send out a mailing to my customers and inquirers, I am surprised by the number of undeliverables I get back.  These are from people who, not too long ago, responded to one of my inquiry ads, took the initiative to write to ME asking for information, and sent me an address to send it to.  Those first responses never come back. -- When I do follow-up mailings later, a surprising number of my letters come back undeliverable.  Usually it's "Forwarding order expired."  This is interesting, as I thought forwarding orders stood for one year.  My latest mailing was only 230, and so far I have 12 returns.  (No orders, just returns.) -- Interesting."

Erick:

Statistically, 20% of your mailing list will go bad each year and, sometimes, 20% of it will go bad overnight (anyway it seems that way).  -- And, just like with email addresses, some inquirers will give you a throw-away address ... so you can't add them to your nasty junk-mail (spam) list.

Now you know why "list maintenance" is one of the most important parts of your business. -- You constantly have to clean your list to keep it current.

Be sure, when you get a returned mail, to check to see if the Post Office has included a "new address" on a little yellow sticker over the original address. -- Forwarding may have expired but the Post Office very often gives you the new address. -- Then, change the address in your files.

I have also found that bad email addresses run about the same as postal addresses ... maybe just a little higher - but - it is almost impossible to get a new address unless the customer sends it to you (all you can do is delete them).


Fat, Fat, the Water Rat!

Is that YOU??

Well, I decided to start losing some of my escess(ive) poundage this past month and came upon a diet concept I can live with. -- SO ...

If'n you gotta get rid of some pounds, I recommend you check it out ... it works for me.

http://www.FormerlyFat.com


This crazy Australian Direct Response Marketing Guy, Chris Bloor, has just emailed me and given me the right to offer you a FREE copy of his latest mini-report ...

"Words That LOSE Money - Words That MAKE Money!"

Its a Straight-To-The-Point Guide to choosing the right words for all your sales and marketing promotions. -- I've already dogeared my copy.

In the report, you'll learn that there are about 24 words that actually LOSE money. -- They act as emotional 'inoculators' and can stop prospects from buying your products and services, yet well meaning business people and sales staff use them all the time! -- But, the good news is ...

There are over 300 words that MAKE money!

Master Copywriter Chris Bloor has created this quick reference tool that makes choosing the right words as well as avoiding the wrong ones, easier than ever!

Chris  sells it for $17 but you can get it FREE at ...

http://www.howtostartanezine.com/manuals/downloads/WordsThatWin.pdf


Milana Leshinsky wrote to tell me about a discover she had made ...

"Just when I thought I knew everything about Internet Marketing, and decided not to buy any more e-books, I received a message about "Gary Shawkey's Secrets". -- Yeah, another book of money-making secrets, I thought ... Nevertheless, the price seemed attractive and the e-book came with full resale rights, so I ordered it. -- I don't usually like reading interview-based books. Most of them are boring and completely self-promotional. But, when I saw that Brian Garvin (the Super Affiliate interviewed in this book) grew his income from about $9,000 in 1999 to $226,493.98 in 2001 - all in affiliate sales - I was intrigued. -- After glancing through it, I printed it out and spent the next 2 days reading it with a highlighter in my hand. -- This e-book is, perhaps, the shortest one I've ever read.  Yet, it contains the most HONEST and straight-forward advice.  When I was done reading, I thought to myself "I am going to be rich!" -- You see, even though I have been successfully selling e-books and developing web sites over the last 2 years, I could never find a way to grow my business exponentially, without putting up too much extra efforts or money. -- This e-book has reminded me once again that it's not how much time you spend doing something, but how smart your actions are!"

On Milana's recommendation, you might want to check it out, at ...

http://www.helpingfoot.com/briangarvin


Here are a couple items taken from the pages of the current issue of "WorldWide Business Exchange" -- America's Leading Business Opportunities Since 1963.  Available at:  -- I have included them here because they are relevant to business interests expressed by many of you ...

This contact got tired of paying premium prices for web space and, instead of bellyaching about the prices, he did something about it ... he became a web host. -- Would you believe ... he can host a 100 Megabyte site for you for only $4.95 per month.  Of course, bigger sites cost more - but - even a 10 Gigabyte site is only $49.95 per month ... everything in between is priced accordingly.  (Unbelievable, ain't it?  But, That's what he says.) -- Beyond that, if what he has to offer in the way of packages doesn't suit you, just tell him ... he can work with you to create a custom package - AND - if you tell him "ol'Jim sended me,"he will even waive the extra charge normally charged for a custom package. -- If you don't have a domain name yet, don't worry about it ... he can provide that, too ... or a custom alias, if you prefer. -- Once you sign-up for the hosting service, you also have access to the "Free for Download"Utilities Section already in place ... with a Free URL Re-direction Service soon to be available. -- Looks like this contact is setting the standard for other web hosts to follow. -- Get all the skinny, today. -- Contact: RON COWART, HostMeister, 12734 Centerra Ct., Baker, LA  70714-6104 -- OnLine:  http://www.hostmeister.net

If you've taken my course on Finder's Fees (the bible of the industry since 1978) ... available at:  ... you will remember that I warned you about getting involved in what I called "exotics"... such as Crude Oil & Petroleum Products.  Even back when I was super-active as a Finder, I didn't do any "oil deals,"leaving that "exotic"field to people who knew the industry inside out. -- Since 1963, in almost every issue, there have been listings ... both Available & Wanted ... for Crude Oil & Petroleum Products in "WorldWide Business Exchange."  Some of them have been real - some of then have been daisy-chains - some of them have been nothing but hopeless pipe-dreams ... I've never even taken the time to find out which was which but, I know for a fact a number of you need what this contact has to offer. -- Contact is a real Petroleum Broker.  Faced with the daisy-chainers, nonsense offers, false offers & misinformed finders, back in 1995 he finally wrote "The Petroleum Broker's Notebook"in self-defense.  -- "The Petroleum Broker's Notebook"explains his experiences in the business of international petroleum product brokering ... from the ridiculous to the real, & competitive, arena where he makes his money ... contains stories, discussions & notes with oil industry friends ... details the marketing of Fuel Oil, Naphtha, Jet Fuel, etc., including the mechanics, trade calculations & marketing traps. -- Last year, he updated it with more information on the fake oil business & false offers with quantity risk minimization information for oil traders looking to "trade up"in the business to full scale cargo trading. -- Now, it's over 150 pages of pure, oil-industry dynamite. -- So, if you have ever thought about doing an "oil deal"you had better buy this book & memorize it before you start.  "The Petroleum Broker's Notebook"is only $53.95 (postpaid) in the U.S. & Canada ... to all other countries it's just $63.95  -- Chevron, Fina, Huntway, Singapore Oil Report, Kern Oil, and a host of other notables in the oil industry have already bought their copies. -- Order your personal copy, today! -- Contact:  RICHARD FAGNANI, 324 Lincoln Ave., Alameda, CA  94501 -- (831) 684-1613 -- FAX:   (510) 521-5409


Andy wanted to know ...

"Where do I find good mail order copy writers? Since I'm not good at writing, I need someone who is.  I need a copy writer to create persuasive news releases and a persuasive mail order web page, but I have no idea where to find them."

Andy:

That's a sticky question.

Although too many of the mailorder copywriters will take on an assignment about anything, it is best to find a copywriter who is competent in writing copy for your specific industry - AND - very, very few AD copywriters can write effective News Releases since they are geared more toward selling.

For the "News Releases," your best bet is to contact the reporters are your local newspaper.  Since they are usually low-paid, you can offer then $25 or $50 and they will write good "news" copy for you.

For the AD copywriters, I suggest you review the advertising in your industry.  Select some of the better ads ... those that grab your interest.  Contact the company and simply ASK them "who" wrote the ad.  Contact that person to see what they can do for you.


Tom McGuire  couldn't find what he needed ...

"One of the problems I have run into is trying to find what type of American products are popular around the world.  I don't want to use the shotgun approach, so I am trying to get specific markets. I have contacted the Department of Commerce and have found many handy things. -- One thing is a service called Buy USA which helps you do market, demographic and economic research around the world. Also, I have joined the Thomas Register and the Thomas Regional.  These give a great deal of information as to every American manufacturer by the thousand and I have become a bit confused by of all of it. -- So far I have not been able to get the international information I need. -- Any suggestions?"


Tom:

You are going about it the wrong way. -- Any of the listings in Buy USA ... or any of the other similar services ... are already being worked by already established companies.  Your chances, as a beginner, of breaking into those markets is slim & none.

Instead of looking for the illusive "buyers" in foreign countries, start in your home town ... find a manufacturer who is NOT exporting their products.  It does NOT matter what the product is.

When you have located a company that is NOT exporting, contact them to get all the info you can about their product.  Then, see if you can find a market for their product overseas. -- If you do, contact the company and ask to be their export agent ... or, act as a Finder for them.


Ankesh Kothari wanted you to know ...

"First of all let me tell you I love your newsletter. Even though I get up to 30 emails everyday, the first email I open is yours. It's just amazing. -- I just launched my web site  and I would appreciate it if you would mention it in your newsletter. -- It is based on email marketing. -- For every email a member reads, his message is read by 10 people. -- It also has an inbuilt banner rotator system. -- I am looking for joint ventures with people for mutual accommodation. -- People who would like to enter into joint ventures with me or exchange links with me please contact me ... with 'joint venture' as the subject line."

Okay, Ankesh ... I mentioned it.

If any of you gang members want to check it, the web site is: http://MaxMailer.com


Ken Vaughn was thinking ...

"Ever since I got your last (the one before this one) issue I have been wanting to ask you a question. -- This is something that I have often thought about and since you seem to have a handle on the whole import/export thing, you will probably be better qualified than anyone to answer this.  Here it is (bet you thought it I'd never get around to it):  I live in Charleston, South Carolina. -- Charleston, as you probably know, is one of the biggest ports on the east coast and as a port it is growing. This has been in the local news lately as local interests either try to attract or try to avoid new port facilities. (drum roll please) -- What unique advantages are there for anyone actually living in a port city with regard to import/export? -- Obviously there would be no freight charges to an ultimate destination.  But, other than this, what other opportunities might exist? -- In any event, thanks for taking the time to read this."

Ken:

The slight benefit in freight wouldn't really be a major factor - BUT ...

As the old bank robber said, when asked why he robbed banks ... "That's where the money is."

If you will open your telephone book Yellow Pages, you will find a world of import/export resources not readily available in any but other major ports of entry. -- Those local (for you) resources are worth their weight in pure gold to an aspiring importer/exporter - and - if you take the time to visit with some of those people; and ASK, they can give you a greater insight into the international marketplace than you can ever glean from books on the subject (even mine).

Spending an hour or two with someone who is actively "doing it," can be far more productive than reading about how anyone (even me) has done it.


Anony Mouse wrote:

"I recently subscribed to your informative online newsletter and bought one of your info reports on raising money in a short time ... very interesting!  I have some ideas for small folio how-to type reports to sell by mail order, but I wonder if it's too much to put out advertising in a national magazine or online, with uncertain return. -- A couple of years ago, I put an ad in for a computer tune up procedure I had devised, but it flopped, even though I advertised in a national magazine. Would like to generate a stream of income from selling through mail order but seem to be stymied as to the best way to "launch" myself into it. Any practical advice would be appreciated."


Hey, Mouse:

Your computer tune up program didn't flop ... you did.

The name of the game in mailorder is testing, Testing, TESTING & Testing Some More ... one ad; no matter how well written, or where it is placed, is only a one-time test.  If the ad doesn't work, you devise another, and another, and another, until you find an ad that does work.

I have tested thousands of ads over my lifetime ... of those thousands of ads, only a handful were profitable - BUT - the profits from that handful of ads would make a banker salivate.

The "secret" ... if there is one ... is to find ONE (just ONE) ad that makes a profit, then build upon it. -- If you run one ad and it produces $10 in profit ... run the same ad 1,000 times to produce $10,000.

Go for it.

P.S. -- If you really want to learn the cold-blooded truth about mailorder, I recommend my own book ... "Own Your Own Mailorder Business" ... available at:


John Szasz III had a couple questions ...

"I have a tape by Chase Revel entitled "A Clever Way to Raise Money."  I've listened to it and the basic idea behind it is for the borrower to ask for twice the amount of money he needs and to use that excess to purchase US Government Bonds in order to use the Bonds as Collateral.  This Collateral should make it easier to borrow the Business Startup Money. -- In your expert opinion/judgment is this a viable way of decreasing the risk in a startup business venture thereby helping the borrower get the amount of money he needs to begin his project? -- Can this be done in real life?  What Lender/Investor would do this (if any)? -- B.  This question is also related to Business Startup Money.  I notice that in publications including yours, there is mentioned Loan Guarantees, Financial Guarantees, and Letters of Credit.  These instruments are designed to help the borrower be able to borrow money (for his Business Projects).  Can you give me just a general idea what these things are?  Are they viable to use for Business Startup? -- Thanks so very much for your expert advice."

John:

The o-o-o-ld idea from Chase Revel somewhat works - but - it will NOT work with banks or any other lending institutions.

Using Government Bonds to secure a loan can only be done with "Private Investors" - and - even then, the bonds can NOT serve as "collateral" for the loan.  The bonds are only a "sweetener" to assure the Private Investor that they will receive their principal back at the end of 25 years ... it is only a comfort edge for the investor.

Financial Guarantees, Loan Guarantees & Letters of Credit are too often hyped as an easy method - but - in order to get a "legitimate" guarantee, you need to "qualify" for the guarantee just like you would for the loan itself ... you are simply exchanging your credit for the credit of the guarantor.

You have to be very careful about getting "Guarantees" for any kind of borrowing - because - it is the "credit worthiness" of the guarantor that is of the most importance to a potential lender. -- There are all kinds of crooked companies out there that will "sell" you a guarantee ... for whatever amount you want - BUT - the "guarantee" (or Letter of Credit) is written by an institution that no one has ever heard of without any "credit worthiness" of their own. -- You "buy" the guarantee then go chasing around trying to use it to get your funding but no one will accept the "guarantee" because the "credit worthiness" of the guarantor cannot be ascertained.  Of course, you lose the money you spent to "buy" the guarantee.

By the way, I have written articles about both "Letters of Credit" and "Getting Financing for Your Business" in past issues of my e-Letter. -- You'll find them in the archives at:

Dec99.html

Sep00.html

Read them in good wealth.


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
e-Letter Gang Leader


Thoughts For The Month!

"You can easily judge the character of a man by how he treats those who can do nothing for him." -- James D. Miles



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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