Business Lyceum

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


Editor/Publisher:  J.F. (Jim) Straw

JUNE 2009

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.

Now, I'm gonna tell you ...

A REAL SECRET About Classified Advertising!

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

Why did they cuss me out? -- Because, they had 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 would call or write to apologize ... when they discover that my half-dozen words out-pulled all of their previous efforts.

Why? -- 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.

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."



Another Lesson to be Learned

Email marketing is much the same as Classified Advertising.

Your email message should never try to sell your product or service.  It should only entice the reader to visit your sales page for the whole message.

Let your Sales Page do the selling ... as it should.


Now, let's do some ...

Questions & Answers, Comments & Other Good Stuff!

Ted Aberle
tells me ...

"While I don t usually recommend SBA loans for most of my clients, because of the special program ... the America's Recovery Capital Program; or ARC ... and the current financial climate, after being besieged with requests to do so, I have put this report together "The ARC Report" (with free updates) that explains how to get your share of the $255 Million SBA ARC loans due to take the small business by storm, flooding fortunate businesses with up to $35,000 cash to help keep your business afloat! -- There's no time to waste - applications are expected to be accepted by June 15, 2009."

Okay, Gang ...

Go take a look for your own self at:  http://www.business-credit-secrets.com/arc.html



Michael Giorgi is either a little late, or a little early ...

"My product is designed to help business owners save and document their tax deductions throughout the year. This documentation is required by the IRS, and although most business owners don't know it, the IRS requires that all deductions and expenses be documented within 24 hours of the expense occurring."

A valuable service at any time of the year.


http://expensementor.com/



Gary Brose wanted to know ...

"I own a small Freight Forwarding company in Seattle.  The recession hit our largest accounts hard and revenues have dropped 85%!   Cash flow is a major issue and although I need to hire a sales rep to go get the new biz, I have to be realistic about the fact that it will probably take him 6 to 8 months to pay for himself.  That will strain cash flow beyond the breaking point for me.  Any suggestions on how I can attract new business without gambling on a new sales rep?"


Gary ...

A "sales rep" is nothing more than a way of advertising - so ...

Instead of employing a sales rep, increase your current advertising.  Take a look to see which of your advertising methods produce the best results and increase that venue by 25% (or more).

Advertising is advertising.



Hugh Thyer wanted me to tell you ...

"I'm a long time subscriber (and still a big fan of your direct mail manual...the best one I've found yet).  -- I publish weekly articles on my blog on marketing and copywriting, and unlike a lot of other ones you'll find out there I want to give my readers lots of information they can actually use. That means the theory behind each topic, plus practical examples of how to implement what I'm writing about.  -- Anyway, if you think your subscribers might get some value out of them, feel free to send them over to subscribe.  -- It's FREE."

Okay, Gang, go get it at:  http://www.salescomefirst.com



Kurt Chrisler has a Freebie for ya ...

" Everybody knows that in order to succeed online you need traffic ... and lots of it.  Well, how would you like to get secret traffic generation tips from 6 of the top internet marketing Gurus ... For FREE! -- For a limited time you can grab your Free Membership to Traffic Domination and learn traffic tips from the top marketers online."

Go get yours at:  TrafficDomination



Dan Jones has something worthy of your support ...

"I direct a very small non-profit.  I help keep kids off drugs and out of gangs by teaching the sport of tennis. I've been doing this for quite a long time. In fact this year we are celebrating our 20 year anniversary. Ironically, our funding is dwindling. I am looking for an opportunity to raise funds for my non-profit."

Okay, Gang ...

Go to:  http://www.say-yes-to-tennis.com/donations.html  then click on the buttons on the left side of the screen to get a complete picture of this valuable effort ... THEN ... give them your support.



Before I met Max Sackheim, back in the 1970s, I actually thought  I was an idea generator - but - every time I talked with Max, he generated 2 or 3 new ideasfor every one that I generated.

Back in the mid-1970s, I got a telephone call from a man complimenting one of my promotions.  He introduced himself as Max Sackheim ... I didn't know whether I wanted to believe him or not.  After all, why would the greatest master of the craft be impressed by anything I had written.

After complimenting my promotion, Max proceeded to give me 2 or 3 ideas to improve it. -- Since I ALWAYS test new ideas, I tested the ideas and saw an exceptional increase in  response.

Max asked to be put on my mailing list. 

Over the next few years, Max telephoned me frequently with ideas on other of my promotions and even told me when I was dead wrong ... he was always right.  We talked on the telephone on numerous occasions.

The last couple times I called him, I was told he was in poor healrh and couldn't be reached.

May he rest in eternal peace.

Anyone who wants to succeed in any kind of business needs to read, study and absorb anything and everything Max wrote.

Now, you have a chance to learn from the "master" as I did ...

MaxSackheim

Just knowing Max increased my business skills ten-fold.


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!

"He has half the deed done who has made a beginning." --  Oliver Wendell Holmes

"Nature gave men two ends - one to sit on and one to think with. Ever since then man's success or failure has been dependent on the one he used most." --George R. Kirkpatrick


Can you stump the old master? -- Betcha can't!

Over the past 50 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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