Business Lyceum

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


Editor/Publisher:  J.F. (Jim) Straw

OCTOBER 2005

Greetings & Salutations:

Since so many of you seem to like it, I am going to publish  a few more of the interview questions I was asked by wanna-be publishers last year ... along with my answers, of course ... if you'd rather I'd publish something besides these Q&A sessions, please let me know.

Q:  Can you give a primer on setting up a business from the legal aspect?  Any guidelines on how to move in this regard?

A:  Whoa!  I'm not an attorney.

Suggest that anyone planning to start a business should call on an attorney; or their legal aid society, to get guidance from a qualified professional.

Q: How would someone with zero money, zero credit, and no product go about raising money to start a business?

A:  With no money, no credit & no product, what reason would any person have to raise money to start a business?

If you don't know what you are going to do (no product), you shouldn't even be considering starting a business - but ...

As I have said a thousands times, "If I had it to do all over again, I would never create my own products.  I would simply sell other people's products."

So ... before you decide to raise funding for a business, you need to first find a product to sell.  Only then can you even begin thinking about financing a business.

Q:  We live in a very competitive world, how do we stay in front of those that may be marketing identical products?

A: If necessity is the Mother of invention, competition is the Mother of necessity.

Rather than restate what I have already written on the subject, I'll just direct to you my Free report ...  "Competition! - To compete or not to compete? -- Should we even ask the question?" ... at:

compete.html

Q:  What would you say your secrets to becoming a Marketing Genius are?

A:  There is only one secret (??) to becoming a Marketing Genius ... it is also the only thing that separates the professional from the amateur in the marketing game. -- That secret is to test, Test, TEST, then, test some more.

You can write the very best ad copy in the world - but - if nobody buys, you ain't yet a marketer.

Some 20 years ago, I wrote what I thought was the most powerful ad copy I had ever written.  I passed it around among the office staff ... they all loved it and praised it as being the best I had ever written. -- I gave copies of it to the production staff ... they loved it even more - SO, I didn't even test the copy.  I mailed 10,000 pieces.

The results were abysmal ... that 10,000 piece mailing produced one (just one) paid order.  (I never made that mistake again.)

Of course, if you are really asking about how to write better ad copy, you can find out everything you've ever wanted to know about ad copywriting in the June, 2000, issue of my "Business Lyceum e-Letter" at:

Jun00.html

Q:  How do you see the correlation between offline and online marketing?

 

A:  If you had asked me that question just 5 years ago, I would have told you that online marketing was a fad ... soon to pass into marketing oblivion; just as the 900# marketing had.

Today, I see online marketing as a viable marketing tool - but - it should be made part of the complete marketing package of any business, rather than being touted as the sole method of marketing.

When I established my website in September, 1999, I did so because my mailorder customers were, more and more, asking "Where can I find your products online?" -- In response to those inquiries, I established the website as an addition to my offline marketing.

In the beginning, the Business Lyceum was nothing more than an online catalog of my offline products. -- Beginning in September, 1999, we added our URL to all of our outgoing mailings.  The site had covered all of its costs and produced a profit by January, 2000.

Today, our website is producing over 80% of our revenue - but - over 80% of the online orders are still coming from my offline customers.

Think about this for a moment ...

AOL is one of the largest online companies in the world - but - they didn't start by advertising online.  If you will remember, they used to send you disks ... later CDs ... inviting you to sign-up for Free Minutes, by Mail. -- They are a prime example of building an online business using offline techniques.

Just ask yourself, "Am I smarter than AOL??" -- If you think you are, try building your online business solely online.

Q:  What do you see as the biggest hurdle that any new marketer has to overcome to succeed ... be it offline or online?

A:  You're probably going to think I'm beginning to sound like a broken record but the biggest hurdle any new marketer has to overcome is their lack of testing.

Believe it or don't ... 99% of beginning marketers NEVER test anything.  They just "try" things.  If it doesn't work the first time, they move on to something else that "might" work ... when it doesn't, they move on, again.

It isn't all their fault.

Unfortunately, much of the problem is caused by the pseudo-gurus themselves. -- They provide their dealers, distributors and/or affiliates with "ad copy" to use to sell the guru's products - but - in all too many cases, the guru him/herself has never really made any money using that ad copy.

What does it matter to the guru? -- If 100 dealers use that ad copy and produce just one order for the guru, the guru is ahead by one order - BUT - in 99% of the cases, the dealer "tries" the ad once; doesn't get any response, and moves on to the next "make a fortune overnight" deal.

If a "dealer" (affiliate) tested the ad copy and discovered it didn't produce, the dealer should; if he/she "really" wants to make some money from that product or service, change the ad copy and test it again; and again; and again, until the dealer finds ad copy that works.

Let me tell you a true story I use to illustrate the method for my affiliates ...

Here's the "secret" used by my most productive dealer to produce an income of nearly $100,000 per month selling my products and services.

When Gene first became one of my dealers ... 1977 or 1978 ... I sent him copies of all the various (and many) classified ads, space ads and sales letters we were using to sell our products and services (just like we did for all of our dealers). -- All tested and proven successful.

At first ... like most of my dealers ... Gene began earning a few hundred dollars per month. After a few months, he jumped from a few hundred dollars to a few thousand dollars for a month. Then, his earnings began getting bigger and bigger, month after month ... in a few years, his earnings grew to over $100,000 per month (producing over $100,000 for me as well).

When I finally asked Gene what he was doing to increase his income so much, he told me ...

He Was Writing His Own Ads!

Every month, he would go through my publications to pick out new phrases and ideas to include in his advertising. -- He even began writing ads directed to very specific customers ... using the catch-phrases, headlines, and other items from my publications.

When Gene died in 1992, I lost a friend - and - $100,000 per month.

The few (very few) of my affiliates who are knocking down the big bucks each month are following my advice. -- It won't be long before I'll have another Gene; maybe more than one ... maybe YOU will be my next Gene.  

Q:  Both offline and online marketers say that the key to your business is your list.  What advice can you give to those that want to quickly build their list ... are there any secrets you can share with us?

A:  Over the nearly 50 years I've been in business, I have found that anything you do "quickly" usually isn't worth doing.

I once signed up for a list building service ... shame on me ... that really produced.  The service seemed to be phenomenal.  I was adding people to my list almost faster than I could keep up with them - and - I kept that list separate, so I could run specific tests against it ... just to find out what kind of customer list I was building.

For over a year, I tested that list again and again ... with every offer in my stable. -- I even went so far as to change my ads that had worked for years, to see if I could reach them. -- Nothing worked.

After I discontinued the list building service, most of them ... slowly but surely ... faded from my list.  Some asked to be removed but most of them just ended up in my dead letter file to be removed.

The secret (??) to building a list is to test, Test, TEST and test some more until you find one (just one) method that adds addresses to your list.  Then, expand your use of that method while you continue testing more methods to build your list. -- It won't be too long before you will have a stable of tried and proven methods of your own ... for your own use.

Actually, the big problem with too many beginners is they want to do everything fast, faster & fastest ... without considering the results.

Just remember the story of the tortoise and the hare.

Q:  What's the best way to market my products and services to Fortune 500 companies?

A:  Don't be silly. -- There is no difference between marketing to Mom & Pop and marketing to the Fortune 500.

It's just a matter of defining your audience; studying your market audience; then "selling" to them.


Now, let's do some ...

Questions & Answers, Comments & Other Good Stuff
from my readers!

For you Real  Estate Investors  ...

This contact can supply you with all kinds of info about the Real Estate in your area ... ownership, sale & loan information, etc. - plus - absentee owner, non-owner occupied property information.

The cost of the service is $200 - BUT ...

I made a deal with them to waive the $200 fee and allow you to get 15 property reports for free.


Just send an email to: 

Scott Bergman -- or ...

Telephone him at:  (877) 436-3282  Ext: 1166




Tatanisha Howard was puzzled ...

"I've seen several ads in various publications that offer great deals  on bulk mailing.  They generally offer to copy and mail 1,000 copies of my 8 1/2"x11" circular  to opportunity seekers for around $20. -- How can anyone do so much for so little  money and  still make a profit? -- Do you think this may be worth a try or is it another case of if it's too good to be true it  probably is??"

Tatanisha:

Offers like that are common  in the small mailorder publications.  What they do  is collect the $20 from 30 or 40 offers ... then, they print them back to back, and send them all at once to 1,000 people. -- They collect $500  or  so from the advertisers  and it  only costs them about $300 to print & mail (bulk).  So, they make $200 or more on each mailing.

Sometimes those mailings work well ... sometimes they don't ... but, the only way you can tell  is by testing.


Bob Dean Stanford wanted me to tell you ...

"Just a tidbit for your readers. -- A new service by ebay called "Want It Now" is a great LEAD source for Finders. -- Go to ebay.com and it's listed on the homepage in the top left menu."

Thank You, Bob ...

I'm sure some of my readers will find that service useful - and ...

I would be remiss if I didn't tell my readers to check out your FREE "Maverick Tips" Newsletter at:

http://mavericktips.com



Ronald Cheatham also had something to share with you ...

"This morning while on my newspaper route for four hours, I was listening to the wall street radio show and they told of an URL that shorten's a  long URL address and even gives the number of visitors that go to your sight. -- Your newsletter readers might like to have this one also."

Okay Gang ... check it out fer yer  ownself, at:

http://snipurl.com/


Wyman Radford had a common  problem ...

"I worked a few years as a private detective until they got no-fault divorce and I took up long haul trucking. -- I have moved back to Alabama and I am trying to start a private detective agency.  Financing is tough, suggestions would be helpful and appreciated."

Wyman:

Getting financing is  always a problem for beginning business people.

One way that seems to work most often is to run an ad in the Classified Section  of your local newspaper  ...

INVESTOR NEEDED for Private Detective Agency.   $xxxx returns XX% in  one year.   Business plan available. -- Name, Address, Phone, FAX

Prepare your business plan and wait for inquiries.


Yolanda Weir needed to know...

"Do you have any information or advice on how to sell to local retail businesses? -- I know someone has to sell them the products that they carry on their shelves, etc. -- Thank you for your help always."

Yolanda:

The BEST way to sell  to local businesses is to just go see them ... show them your wares ... build a rapport with them.





Brian T. Edmondson wanted you to know ...

"Notice how all the "internet gurus" are just starting to talk about using online and offline methods?  Funny thing is, some of us have been  using these methods for years.  Get the inside scoop on the brave new offline marketing methods for online entrepreneurs."

Brian's "Best Business On Earth Newsletter" is FREE, at:

http://www.BestBusinessOnEarth.com




Allan Zufall was getting ready to do some advertising ...

"Is there any way of tracking responses by mail? -- How would you do that? -- Where would be the best place to advertise?  In a big newspaper or my local paper or should I pay more for an ad in a magazine?"

Allan:

To track your ads, simply add a letter to the end of your P.O. Box number - i.e., P.O. Box 123-A ... use a different letter for each ad.

There is no way I can begin to tell you where to advertise.  You'll have to do it the same way I would ... just run ads in various publications, count the responses, then count the orders ... in other words, test, Test, TEST; then, Test some more


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!

"Perhaps the most valuable result of all education is the ability to make yourself do the thing you have to do, when it ought to be done, whether you like it or not." -- Walter Bagehot


"Show me a man who cannot bother to do little things and I'll show you a man who cannot be trusted to do big things." -- Lawrence D. Bell


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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