Business Lyceum

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

OCTOBER 1999


Greetings & Salutations:

Welcome to the "Premier Issue" of the Business Lyceum e-Letter.

It is my intention to make this e-Letter the absolute bestest in the business community.  Not just fluff but real practical instruction in the arts and sciences of making money ... as promised.

To begin with, the "Business Lyceum" was officially on-line, for the very first time, on Friday; September 24, 1999.  But, of course, nobody knew about it except me and a few friends who assisted me in testing the pages -- so -- I decided to date the first issue of this e-Letter for October ... that way, I would have something to send to new members right away. 

With that out of the way, let's get into some practical stuff about doing business.

Internet Marketing is NOT Mailorder Marketing

Over the past 30 years, I have sold over $250 Million worth of products and services by mailorder ... everything from Beauty Supplies to Heavy Equipment ... Burglar Alarms to Sleeping Bags ... Fishing Lures to Women's Wigs ... Automobiles to Wheelchairs ... Investment Opportunities to Seafood ... Consulting Services to "How To" Courses ... all by mailorder.

Some 5 or 6 months ago, I read an article about "Opportunity Marketing" in which the author claimed that "over 65% of Opportunity Seekers are now buying on the Internet."

The article, of course, was promoting the use of Internet Marketing (instead of direct mail) to sell your products or services - but - other than the claim that over 65% of Opportunity Seekers are now buying on the Internet, there was nothing earthshaking, or even new, mentioned. -- As a matter of fact, the article, by-and-large, repeated the same old b.s. I've been reading for 5 years (or longer).

As in every other article about Internet Marketing, the article emphasized the fact that e-mailing was cheaper than post office mailing. -- I think the writer said you could e-mail 10,000 messages for less than the cost of 10 postage stamps (I suppose he meant the 33ยข variety) using a 'Listserver.' -- Then, as always, the article included some on-line places where you could rent (or was it 'buy') non-spam e-mail mailing lists.

The idea espoused in the article was to e-mail your mailorder sales piece to the non-spam e-mail mailing lists ... just like you would using a post office mailing.

Another mailorder marketing method espoused by the writer was to place "E-Classified Ads" all over the Internet ... just like you place "Classified Ads" for your mailorder business in magazines, newsletters and newspapers, only you place your ads in different web sites that have a "classified ads" section.  And, to show you just how knowledgeable the writer was, the article listed a ho'bunch of places on the Internet where you could place FREE E-Classified Ads. -- Whoop-dee-doo!

The writer also recommended that you setup a web page for the purpose of gathering and collecting e-mail addresses. -- If I remember, the writer suggested that your web page only offer something FREE, so you could lure the visitors into sending you their e-mail addresses ... something like a BIG E-Classified Ad.

All in all, throughout the article, the writer contended that Internet Marketing is nothing more than Electronic Mailorder.

Being nothing more than Electronic Mailorder, according to him, all you have to do is use E-Classified Ads; or a web page, to collect the e-mail addresses of the over 65% of "opportunity seekers" who are already buying on the Internet ... or rent the non-spam e-mail mailing lists available ... and e-mail your sales letters, flyers, brochures or postcards to them.  Just like any other mailorder operation except it's cheaper ... because it's done electronically.  But ... Internet Marketing IS NOT Mailorder!

That's why there are really very, very few mailorder marketers making any real money on the Internet ... unless they're selling pornography, computer equipment or supplies, Internet Marketing services, or Web Sites.  And, even the most successful Internet Marketer, Amazon.com, is losing over $60 Million per year.  So ...

Return with me now to the days of yesteryear ... almost 4 years ago ... when I first became interested in the possibilities of marketing my products and services electronically.

After reading everything I could get my grubby little paws on about Internet Marketing ... spending thousands of dollars buying all the gurus' courses and subscribing to every magazine and newsletter on the subject ... I went whole-hog into the Internet Marketing game.

I bought the most powerful modem on the market, signed-up for seven ... that's right, seven ... on-line services, and began saturating the Internet with my E-Classified Ads. -- I even bought the necessary software and placed my E-Classified Ads on every Bulletin Board I found listed in the magazines and newsletters to which I had subscribed.

For the first 3 or 4 weeks, I would open my e-mail boxes daily to find 1 or 2 e-mail messages waiting in each, only to discover that those messages weren't inquiries but, rather, MLM or pornography solicitations (same difference to me).  So, being a diligent Mailorder Marketer, I placed more and more E-Classified Ads and even started getting an occasional inquiry ... along with the MLM and pornography solicitations.

Diligently responding to every inquiry I got ... and adding the inquirers' e-mail addresses to my e-mailing list ... I even started to receive a few (very few) orders (some months, I even covered my on-line costs).  But, finding the occasional inquiry among the deluge of MLM and pornography solicitations was like finding a needle in a haystack. -- I remember one Tuesday morning ... after a long 4-day weekend ... opening my e-mail boxes to find over 100 e-mail messages in each of my seven e-mail boxes.  that's right, over 700 e-mails - but - only two (just 2) inquiries in the whole bunch.

That went on for almost a year, with most days requiring me to go through 300 to 500 e-mail messages ... to glean (maybe) 1 or 2 inquiries and very few orders. -- I finally gave up, closed all but one on-line account, and decided to try some different approaches.

Over the next two years, I tried every trick in the Mailorder Marketer's book ... reverse e-mailings to everyone who had an E-Classified Ad on-line ... e-mailing solicitations to the e-mail addresses I found on the letterheads from my post office mail ("snail mail" in Internet-speak) ... posting FREE articles and reports on the various business web sites ... joining various on-line business groups ... and even renting some non-spam e-mail mailing lists to e-mail my solicitations to. -- Eventually, I was making enough sales to cover my on-line costs ... almost every month.

All the while, I was reading, Reading and READING some more about 'how' to make money on the Internet. -- That's why I high-lighted the article where it said ...

Over 65% of Opportunity Seekers Are Now Buying on the Internet

That one statistical claim stuck in my sometimer's diseased brain (sometimes I remember, sometimes I don't).  It haunted me, day and night. -- That prompted the question ...

Why and where are the on-line opportunity seekers buying?

As can be expected, some of them are buying directly from e-mail mailorder solicitations.  Enough of them that the ever-present nickel-and-dime Internet Marketing gurus can continue to hook the suckers - but - most of the real on-line opportunity buyers are buying from web sites that offer the 'how-to' stuff they need.  Which confirmed my hard-won contention that ... Internet Marketing IS NOT Mailorder! -- So...

What is Internet Marketing?

Since the most successful Internet Marketer, Amazon.com, is an on-line bookstore, it would logically appear that ...

Internet Marketing IS Point-of-Purchase Retail!

Not unlike opening a 'store' down town; in a well-traveled area, selling 'shoes' (or whatever), making sales to those who pass-by and come into your store to shop, and running advertising to get the people to come to your store to see the shoes you are selling.

Once I figured that out ... a few months ago ... I started rummaging back through my sometimer's diseased little grey cells, trying to remember all the techniques I used to get customers into my retail Women's Wig Shops.

At first, I figured, since Web Sites are in reality nothing more than point-of-purchase retail stores on the Internet, I would put together a 'wholesale' marketing program ... selling my products to the 'retailers' who were already doing business on the Internet.  Letting them re-sell my products and earn a hefty mark-up.

It didn't work! -- Unfortunately, most of the Webmasters (that's Internet-speak for a person who owns a web site) don't have the foggiest idea about what they are doing, or even why they are doing it.  By and large, the vast majority of them are still thinking 'mailorder,' because that's what everybody told them Internet Marketing was about.

Granted, some of the gurus who are selling Internet Marketing services are now promoting 'store fronts' on their own web sites ... another gimmick to clean the suckers ... but, they're still preaching 'mailorder' (as they see it) with little, if any, understanding of the craft.

So, I decided I would have to build my own Retail Store on the Internet ... a Web Site (in Internet-speak).

At first, I tried to learn 'how to' make a Web Site from information I down-loaded from on-line sources. -- After two weeks, I gave up.

I'm a member of Mensa (the High IQ Society )... with a tested IQ in the 99th percentile ... but even I couldn't understand the gobbledygook, double-talk, Internet-speak I encountered. -- It's no wonder the vast majority of Webmasters haven't the foggiest idea what they're really doing.

Failing that, I got in the car and made a mad dash to the local bookstore ... as I have for over 40 years; when I really wanted to learn something. -- Right there on the book shelves I found copies of "Creating Web Pages for Kids" and "Webmastering for Dummies."

After I finished reading those basic texts, I set myself to the task of creating my own web site. -- I worked 18 hours a day for the next 5 weeks.

I had already determined that Internet Marketing was NOT Mailorder and concluded that it was Point-of-Purchase Retail - but - that wasn't altogether true either.

Although Internet Marketing of 'hard goods' (tangible products) more nearly resembles "point-of-purchase retail" than "mailorder," the same is not necessarily true for "intangible products" and/or "services."

Right now, today, if I were selling a line of "tangible products" ... like furniture, clothing, cosmetics, or whatever ... I would most assuredly 'build' a Retail Store on the Internet.  And, just like any other "retail" establishment, I would stock my shelves (web pages) with a wide variety of related products...provide the "shoppers" with a "shopping cart" into which they could put the items they want to purchase .. .and give them ready access to a "check-out" counter where they could pay for their purchases.

To advertise my "on-line retail store," I would use the same advertising methods utilized by other retail stores offering the same kind of tangible goods. -- I would run newspaper, radio and TeeVee ads offering "specials," or "sales items" ... sponsor events ... offer door prizes ... give away premium items ... and all the other tried and proven methods of bringing customers through my doors. -- I would also use "mailorder" to advertise those promotions ... as I did for many years in my Retail Women's Wig Shops.

Unfortunately, all too many of the "on-line retail stores" limit their "store" advertising to the Internet itself ... failing to reach the 'internet shoppers' who may 'shop' on-line but may not be looking at the on-line advertising media. -- They should be advertising their "store" in the same places ... newspapers, radio, TeeVee ... where their brick and mortar competition is advertising.

Of course, one of the best examples of such a "retail" operation is the omnipresent "Amazon.com."

"Amazon.com," whatever else it may be, is, in reality, nothing more than a "retail book store." -- Because that is what it is, Amazon.com advertises itself everywhere as "the world's biggest book store." -- Beyond that, it never misses a chance to use (Free) "publicity" to generate book-buyer interest.

When I first discovered that Internet Marketing was NOT Mailorder, my intention was to 'build' a Retail Store on the Internet for my products - but - since my products take the form of books, booklets, reports and newsletters, that would have made me "the world's smallest book store" ... so, I had to re-think my "retail store" premise.

To that end, I began visiting all of the "money-making" web sites I could find ... and subscribing to every money-making e-zine I came across.

After reviewing everything I had found on my Internet surfing-safaris, I decided to take a different approach.

Instead of a Retail Store I Decided to 'build' a School!

Thinking along those lines, I began searching for a "name" for my web site.

I really couldn't justify calling it a "university," a "college," an "academy," or even just a "school," since those names implied a formal institution of higher education ... with on-going class work.  And, I wanted to stay clear of gimmicky names of the type used by the b.s.-artists and multi-level marketers.

What I wanted was a "name" that offered an educational opportunity ... without the implied formality of matriculation, classroom studies, homework, or tests ... with an element of entertainment.

Thinking back to my own school days, some of the most delightful educational experiences I remember were the "lyceums" we attended. -- I recalled the wide variety of subject matter, presented in short programs, imparting specific information in an entertaining format.  So ...

I decided to 'build' a Business Lyceum on the Internet.

Where my dictionary defined "lyceum" as "An association for popular instruction by lectures, a library, debates, etc.," I created the Business Lyceum web site as a Learning Place where the attendees could receive ...

"Practical instruction in the arts and sciences of making money."

After I had selected the name, I was advised by some of my friends that "no one will know what a lyceum is," "lyceum will be too hard for people to remember, or spell," and "you'll never attract the opportunity seekers with a sophisticated name like that."

But, although the name Business Lyceum will, no doubt, put-off the lower echelons of the 'opportunity seeker' genre (those who are looking to "get-rich-quick"), it will be readily understood at the higher echelons by those people who are already (really) doing business and want to know how to do real business better.

Beyond that, I am focusing on making this FREE e-Letter a real educational newsletter ... giving the readers real practical instruction in the arts and sciences of doing business.  (That shouldn't be too hard, since, unlike other webmasters, I have over 300 books, booklets, reports and articles I've written over the past 30 years to edit, up-date and deliver to them FREE, electronically.)

Of course, my ulterior motive in delivering all this FREE educational material is to ultimately "sell" the attendees my other products and services.  That will happen naturally ... without b.s. or hype ... as the attendees seek more expanded information about the arts and sciences of doing business they have learned about in the FREE materials.

Right now, you might be wondering "why" I am telling you all of this.

Well ... by relating the research and thought processes that went into the creation and development of my web site, you can better see and understand the kind of reasoning you need to apply when you develop a new product or service and its underlying marketing plan.

Think about it!

Now you know some of the reasoning and considerations that go into the creation and development of a new product. -- If you use the same approach in the creation and development of your products or services, your chances of success will be greatly enhanced.

In time, you will come to realize that the information you get in this FREE e-Letter will be a better business education than you'll ever get in any "institution of higher learning" - and - you won't have to be institutionalized to get it.

Until next time, keep well ...

J.F. (Jim) STRAW
Resident Genius


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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Copyright - 1999, J.F. (Jim) Straw. All rights reserved.