Business Lyceum
e-Letter
Practical
Instruction in the Arts and Sciences of Making Money
NOVEMBER 2001
Greetings & Salutations:
Let me tell you a true story ...
Some years ago, a very dear friend of mine (retired; living
on Social Security) came to see me. He had with him a mailorder
"drop ship dealer" program he wanted to get involved
with and wanted to use some of my mailing list.
The offer he wanted to mail was for a $20 "how to make
money" book. The flyer was exceptionally well written
and appeared to offer a good value for those who bought the book
(I read it). So, I gave my friend 1,000 names and addresses
of my customers for his mailing.
About a month later, my wife and I had dinner with my friend
and his wife. Over dinner, I asked him how his mailing
had done. His response was, "It only pulled 43 orders,
so I decided to look for something that sells better."
I thought nothing more about it until the next day. - Sitting
at my desk, eating my sandwich for lunch, my wife remarked that
it was too bad our friend hadn't made any money on his mailing.
- That started me thinking.
Forty three (43) orders on a 1,000 piece mailing ... at $20
per order ... produced a gross revenue of $860 (86¢ return
on every envelope mailed).
After sending 50% to the publisher of the book, my friend
had a gross profit of $430 (43¢ return on every envelope
mailed). - NOT big money ... BUT ...
Back then, First Class postage was only 10¢ ($100 to
mail 1,000 pieces). A 1,000 name mailing list rented for
$35. Envelopes were about $14 per thousand. Reply
envelopes $8 per thousand. Printing was $16 per thousand.
And, reply postage was 14¢ per reply envelope received.
In other words, my friend had spent about $180 (including
the $35 list rental he didn't have to pay me) on his 1,000 piece
mailing (18¢ per envelope mailed), to produce a gross profit
to him of $430. - A net profit of $250 (25¢ for every envelope
mailed).
If my friend had put the same $180 back into another 1,000
piece mailing, his profit for the 2,000 pieces would have been
$680 ... the next 1,000 piece mailing; for a total of 3,000 pieces,
would have left $1,110 profit ... on and on, building his profits.
The only "out of pocket" money my friend would have
spent would have been the first $180. The cost of his future
mailings would have been ONLY that same $180; which would have
been returned to him again and again on each mailing ... to use
for more mailings.
After I ran the numbers, my mouth was watering. I called
my friend and told him how profitable his mailing had been.
But, since he was already involved in something else, he didn't
want to pursue the project. So ... I asked him if it would
be okay if I pursued it. - He agreed.
Unfortunately, when I contacted the publisher, they had discontinued
their drop ship program. - It seems some of their dealers were
collecting the $20 orders and not sending the orders and money
to the publisher for fulfillment. - To punish those few crooks,
the publisher cut-off their own nose ... punished all of their
dealers for the actions of a few ... and eventually went broke
from a lack of sales.
Now ... if you will re-read (and re-read again) the story
about my friend's involvement in mailorder, you will clearly
see how most of us who have made millions in mailorder have done
it - and - why most people who get involved in mailorder don't.
While you are re-reading, take note that all of the costs
and revenues are stated in "dollars" (or cents). -
And the costs and revenues are broken down to a "per envelope"
dollar value. - That's because all of us who really make money
in mailorder don't put any value in "percentages."
Our real costs and revenues are calculated in dollars and cents.
- Remember: 100% of nothing is still nothing.
One of the real secrets to making money in mailorder is to
find something (anything) that produces a profit (even a very
small profit). Then, keep mailing it ... over and over
... building a larger and larger customer list. (The
same holds true in Internet marketing.)
Dreaming about accidentally hitting that One-Time (lucky)
Big Success is part of the intrigue of mailorder ... we all do
it ... but, those of us who really make money in mailorder (every
day), don't let that dream overcome our on-going profits.
Now, let's do some ...
Questions & Answers, Comments
& Other Good Stuff!
Michael Ross sent me a review
copy of his new book, "The Art of Leverage." --
It's good. As a matter of fact, it should be required reading
for anyone who wants to succeed in business.
Reading "The Art of Leverage" can help any
entrepreneur overcome the fear of success which keeps small businesses
small. -- Do yourself a favor and get your own personal copy
at:
http://artofleverage.cjb.net/
Laura Wheeler wanted all of
you to know about this.
Sign up for Simply Postage and get your first month
free!
No more frustrating lines at the post office! Send small packages
and letters from your home or office 24/7. Simply Postage is
an integrated postage meter and scale plus easy to use software
that allows you to print US Postal Service approved postage for
any class of mail. Simply Postage also saves you money by automatically
calculating and printing exact postage. No more guessing and
overpaying postage! Now There's a Little Post Office in Your
Office.
To find out more information, see a product demo or place
your order, please click on the link below:
http://www.simplypostage.com/promotions/default.asp?promocode=referral&devid=52011444
Looks like a winner to me.
Mark Loveless wanted me to review
his web site ...
"I wanted to let you know that my family's E-Commerce
web-site is up and running. http://www.atcshopping.com
--You mentioned earlier to let you know when our site was up
& running so you could take a look at it. -- Do you know
of a good resource to buy a mailing list since we are just getting
started and haven't built our own list yet? -- We would like
to send our catalogs out to gift buyers."
Mark:
I finally got a chance to look at your site ... good presentation
- BUT ... let me make a suggestion.
It is wonderful to have 3,000 products to choose from but
the human mind can only effective think one thought at a time.
And, a "gift" can be anything from a pair of socks
to a solid gold chess set ... rendering a "mailing list
of gift buyers" less than useless.
What you should do is select one (just ONE) product as a leader
to draw gift buyers to your catalog site. -- Let's pretend you
choose a "pocket knife." -- Then, you can place your
ads for your pocket knife anywhere & everywhere "pocket
knife buyers" can be found. You can even get mailing
lists of people who have purchased pocket knives in the recent
past.
Direct those "pocket knife buyers" directly to a
page on your web site where they can find the pocket knives you
have for sale. Then, while they are there, tell them about
other "related" products you have available and link
to those product pages. -- Some of them will even bookmark your
site so they will know where to go to buy gifts when the need
arises.
You can find all the mailing lists ... by general & specific
category ... in the SRDS directory. -- You can usually find it
in the larger public libraries. If your library doesn't
have it, they can borrow it from their regional library for your
use.
SRDS refers to the "Standard Rate & Data Service"
which publishes a comprehensive ... couple
thousand pages ... directory (Direct Marketing List Source) of
mailing lists and the brokers who
handle those lists. -- The last one I bought cost me about $800.
The address is: SRDS, 3004 Glenview Rd., Wilmette,
IL 60091 -- (800) 851-SRDS
It ain't cheap but it is a directory every major mailer uses
to identify mailing lists.
Dan Przyojski asked:
"I have bought a few items from your company in the past
5 years or so. I bought a book from you about a near scientific
method for Mail order. -- I have a small mailorder business I
started about 10 years ago, after five years I developed two
successful ads. The ads don't make a boatload of money
but they pay for themselves most months and always turn a profit
by years end. Accordingly to your book, an ad that pays
for it's self is a home run. The items are 3 and 4 dollar items
that sell directly from the 1" ad. -- My question is do
you think this type of mailorder business; with inexpensive items,
could be made into a large mailorder company? -- Mailing costs
are so high, I wonder if I can turn this into a real mailorder
business that could make me a living. -- I do all the work myself
to save on all costs. If I had to pay anyone to package
or input names it would only make a profit in the summer. But
any advise you could give would be appreciated. -- Thank you
and take care.
Dan:
The way I understand it, you have 2 small ads that sell $3
and $4 items directly from the ad - and - those ads are profitable
on their own. -- If that is the case, you are sitting on a gold
mine.
Every person who has sent you $3 or $4 directly from your
small ad should be worth at least $50 to $100 per year in sales
of related products. -- That means you should be making 15 to
20 times as much as you are currently making from the ads by
themselves.
First, you need to find some related products you can sell.
Then, enclose sales flyers for those products when you ship the
$3 or $4 products. -- That won't produce a great deal more business
but it will let your customers know that you have other products.
When you prepare a mailing label; or envelope, to ship the
$3 or $4 product, also address 3 or 4 more envelopes with the
same name and address. -- Stuff those envelopes with your other
offers and mail them about 5 to 10 days apart. -- The customer
will see your flyers with the product they bought ... then, many
of them will buy the products when they receive the mailer from
you the second time. -- Note: Do Not put all of your flyers
in each envelope. Just put one flyer per envelope ... when
you give a customer too many choices, they choose none.
You don't have to spend big money ... just keep remailing
your customers. (I do hope you've been collecting and keeping
the addresses of your customers.) -- Just 500 buying customers
(those who have already spent $3 or $4 with you) can make you
more money than a 10,000 piece mailing to a rented list.
Howard Cossman wanted me to
tell you ...
"Click Here to start and build your business with O.P.M.
(Other People's Money)."
http://WWW.COSSMAN.NET/pages/OPMjumppage.html
Okay ... so ... if you are looking to fund your business, that's
where you need to go.
Anony Mouse asked:
"Do self liquidating loans really work??"
Mouse:
The Self Liquidating Loans offered by the various, and many,
promoters both online & offline do not work. If they
did, they would more rightly be called "Self-Funding Loans"
... whereby a loan is fabricated and funded without any substance.
HOWEVER ...
Loans in the business community have had self-liquidating
features for as long as there have been loans to businesses.
In those cases, some of the loan principal is used to generate
a passive income which can be used at some time during the term
of the loan to "self-liquidate" the balance of the
loan itself - BUT - in order for that to happen, you must FIRST
be able to get the loan (then create the self-liquidating element)
... it won't work the other way around.
It's all explained in my report, available at:
Swiss Chew asked about
an OLD Scam ...
"Do you sell any reports or manuals describing how I
can apply for allodial title (outright ownership, no more property
taxes) via "land patents" of my house and property
it sits upon? -- I have seen this advertised before, but would
trust your information much more, having been a subscriber to
WWBX. -- Thanks, please let me know via email ASAP."
Swiss:
As far as I knew the old "land patent" scams pretty
much died out ... I guess some sharp con-man has revitalized
it again.
Basically, the "land patent" was established by
old English common law and, although U.S. law is based on English
common law, it is NOT viable in our country. -- IF you buy into
the plan, you will be given the (supposed) proper forms, letters,
etc., to file with the taxing authorities in your jurisdiction.
After you file them, you will think you have beaten the system
and it may even take a couple years before the taxing authority
catches up with what you have done - BUT - in the long run YOU
will have to pay the taxes and may even put your property in
jeopardy by having it seized for failure to pay those taxes.
Be safe ... not sorry.
Gary Ziegler wanted to know
...
"Just a quick note to say I love your stuff, and to ask
a question. -- I bought the Finder's Fee manual several
months ago, and I must say, it has opened my eyes as to how much
some information is really worth. I'm training for the
"long haul" finder's opportunities in business &
financial info gathering & brokering. -- My question:
How and in what ways is your ...Snooping Around... manual DIFFERENT
from the Finder's Fee manual? I suspect there might be
some similarities, but am curious to know if the "...Snooping"
manual focuses more on research techniques."
Gary:
Actually the "snooper report" is completely different
from earning Finder's Fees ... although you could earn Finder's
Fees from what you find snooping around.
The "snooper report" is about recognizing the various
and many abandoned property (not Real Estate) situations in your
area, acquiring them (or acquiring the 'rights' to them) and
either reselling or utilizing those properties for a profit.
I did it by accident the first time ... to the tune of a million
dollars ... then I started doing it on-purpose. -- You can find
out all about at:
Rachel Solinger had me check
out an opportunity ...
"I am looking for a part time business I can get involved
with little money to start. My husband and I are having
our first child this October and I would like to take a break
from teaching. I have been interested in a company called
Discovery Toys. -- http://www.discoverytoysinc.com
-- What is your opinion on this company. -- Does it sound like
multi level marketing. -- Am a bit skeptical. -- Any help greatly
appreciated."
Rachel:
It appears that Discovery Toys is a real opportunity. -- Why
do I say that? -- Because their web site does NOT just offer
the opportunity to sell the opportunity (which is a dead giveaway
for the MLM scams). The site doesn't sell the toys but
it appears to be dedicated solely to having people contact their
sales representatives.
If you like what they're selling and think you could be happy
selling it ... go for it.
Well ... that's it for this month. -- In order to make every
issue responsive to YOUR needs, please send me your questions;
or tell me what sources or resources you need to build your business;
or give me any thoughts you want to share with your fellow members.
Believe it or don't ... I ain't a mind-reader. -- If'n you
doesn't tell me what you need, I may never touch upon the information,
sources or resources you need.
This is your publication for you to use to your benefit ...
I am just your moderator.
Until next month, keep well ...
J.F. (Jim) STRAW
Marketing Genius
Thought For The Month!
"True heroism is remarkably sober, very undramatic. It
is not the urge to surpass all others at whatever cost, but the
urge to serve others at whatever cost." -- Arthur
Ashe
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.
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Copyright - 2001, J.F. (Jim) Straw. All rights reserved.