“Cash at Home-Series”
ENTREPRENEURS GUIDE
TO
DIRECT MAIL ORDER
Sandy Harper
Smashwords Edition
Copyright © 2011 by Sandy Harper
Smashwords Edition, License Notes
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Appendix A. Country Code Top Level Domains (ccTLDs) for Various Countries
Appendix B. Generic top-level domain (gTLD)
Appendix C. List of multi-level marketing companies
Appendix D. The New Age in Mail Order
With the advancement of computers and internet, the richest businesses are no more oil and real estate but are Microsoft; and internet based businesses like Google and Facebook. There are thousands of new ways to make money on the internet and direct mail order. However, the one we will describe in this book is the most successful method that is easier, personally tested and need no investment. The only investment is that most of us already have at home, which is computer, internet connection and a room. This method of direct mail and multi-level marketing (MLM) is the most exciting, profitable and fast growing business in America today. Mail order is a multi-billion dollar a year industry and it is still growing at the rate of 20% per year.
Direct mail can be done on a scale of millions; yet it can be tested for a few hundred dollars. It is probably one of the few businesses, where you can "snow ball" a small investment into a fortune. Other businesses require substantial investments for inventory, rents, pay rolls, franchise fees etc.; but mail order does not require any of these expenses. It is one of the few businesses that can be started on a shoestring. It requires no special skills and is not time consuming. Anyone with average intelligence can supplement their present income quite graciously with only a minimal effort. Yet it can grow into a full-time business. You don't have to answer to a boss, you can set your own hours and you can regulate your own earnings.
Direct mail is a business that can grow from a kitchen table to a million dollar powerhouse. You can successfully start a mail order campaign and this guide is intended to provide basic information to help you get started. The traditional mailing is almost a history in this age of email marketing and computer technology. Therefore, we put more emphasis on direct email marketing. However, there still are people who are using traditional mailing as a marketing tool. So we will add information for those who still like to use.
The information in this guide is not for leisure reading, but for action! You are getting into a lucrative business and you need to treat it as a serious business. This is a business in which you are everything from Chief Executive Officer (CEO) and Chairman of the Board to major stockholder. You will need some organization to keep your business running smoothly as you take a step towards Financial Enrichment. This guide will help you take this step towards success.
You may have noticed that no specific product(s) is named that can be marketed through direct mail. The product can be anything from a book or newsletter to promotion of your existing products and so on. Our intention is to teach the concept of direct mail and MLM so that it can be applied by people who are interested in selling their favorite products or simply their favorite information.
If you are now in some phase of publishing or mail order marketing (no matter how small) we would like to hear from you.
Add to this the most powerful technology of today, the internet. The Internet which is without a doubt the backbone of the so called "Information Superhighway," is the world's largest computer network.
You can use Internet resources for many purposes, but the most profitable areas of the Internet from a businessman's point of view are: newsgroups, World Wide Web (WWW), email, and advertising on social network sites. Many of these are discussed in this guide.
We are at the intersection where the Age of Information collides with the Computer Revolution--and is producing the wealthiest people like Bill Gates. In this guide we aim to help you tap into the excitement and opportunity of this revolution.
We want this guide to provide you with a unique opportunity for generating a substantially high income that any professional would be proud of. We will emphasize some new and revolutionary ways to generate money on the Information Superhighway. We want the information you receive to be a real bargain for the price you pay. You will learn that the sky is the limit for what you can do with this information. You can operate on a scale of millions; yet test for a few hundred dollars.
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CAUTION: The adherence to laws governing any aspect of mail order (including state and federal taxes) described in this book is the responsibility of the person trying these lucrative businesses.
GETTING STARTED
You are about to enter the fascinating world of business, and need the following basic equipment to get started. Many people started in this way, before proceeding to move to business-like quarters.
An Office at Home
Don't rush out and spend your money on frills. It's better to start at home in your spare time, on a minimal investment. This is an enjoyable business and it's more fun to start small and learn step by step.
Your office can be a quiet area of the basement, den, spare bedroom, dining room, kitchen, garage or even your bedroom where you can work uninterrupted for about two hours a day. That is all the time it takes to get started in selling your offer by mail and internet (whatever your product or information). And you can set your own hours.
In that space called Office in your home, you should need a desk, a file cabinet, a telephone, a computer with internet connection, and a few other usual office supplies. You will also need some area with plenty of light to use in fulfilling your orders, if your product needs regular mailing and shipping.
Supplies: First of all, you will need business stationary printed with your letterhead. This is most important in mail order because it's really the only aspect of your business the customer actually sees--except the product, itself. You will also need to get a stapler, a scotch tape dispenser, some pens, notebooks, a bulletin board and other basic equipment.
Telephone: A phone number is helpful in the mail order business, because people like to do business with individuals or firms who appear to be accessible. Your office telephone can be a different number added to the existing line that can be recognized by the difference in ring. This costs only a few extra dollars (about $5) per month and is convenient to answer with a business name. Call the telephone company and it can be done right away. Also make sure that there's someone to answer the calls at all times. You may even consider an answering service. When you grow much larger, you may consider introducing fax machine and a toll-free number (such as 800, 877, 866) to customers to speed up your orders. Check with the telephone company about particulars on the toll-free number.
Typing: You will need some kind of typing arrangement. It will be efficient to use a personal computer with letter quality printer, unless you still like to use a typewriter. If you don't know typing at all, of course, you will be better off taking typing lessons. Once your business begins to build, you will probably need a part-time typist. Let your typist work in her home, if possible. Pay by the hour, or, if the work is routine, convert to a piece-work rate, so long as you are not concerned with social security withholding tax, workman's compensation, and a lot of red tape. Unless the typist begins working for you on a steady basis, she will probably be considered an "independent contractor" by the government.
Choosing a Name
Use a simple name--perhaps your own or a made-up title, or use a combination of names in your family. You can call your business "John Doe Publishing Company," or if it's a family business, you can use something like, "John Doe Associates." Don't call yourself something you are not. Don't say you are a Manufacturing Company if you are not actually a manufacturer. Don't say you are an "Institute" or a "Corporation" unless you really are what you say you are. And don't use "Inc." for incorporated unless your company has been legally registered as such. You can properly call yourself a publisher, if you are having your own books printed locally, and if you are advertising them yourself. If you are just reselling printed matter, you might call yourself "John Doe Publications" or "John Doe Enterprises."
Your company name communicates your company image and your business to the customer. It should inspire confidence and create emotional appeal. A name like "Zigzag Company" doesn't relay information and may subconsciously turn the customer away from ordering a book from you.
Another important thing. Keep your company name short to remember easily and to keep the word count in your classified advertising low.
In most states you are required to register your company name as a D/B/A or "Doing Business As." The process is simple. It is done through your local county clerk, and the cost is nominal (about $10). Talk to your local newspaper people about publishing a D/B/A announcement. They are able to advice you on registration procedures as well.
A Business Checking Account
In the mail order business you will soon be depositing a large number of checks and money orders. If there are several banks in your area, take some time to check them out individually. You are looking for one that charges the lowest service charges, charge per check written etc. All banks are not the same. Comparison shopping could save you in banking fees.
You may also want to inquire about getting a credit card in your company name and/or attempt to secure a Visa/Mastercard merchant status so that you can accept credit card purchases from your mail order customers. A banker should be able to help you set up credit card privileges. The quick and easiest way to accept payment is through PayPal. Go ahead and setup now, if you don’t have set up a PayPal account for free.
KEY TO SUCCESS
We all know people who have been successful business entrepreneurs and also the ones who began and ended by saying "they tried" a certain project and it "didn't work." There is at least one common characteristic of people who don't succeed. They simply rush in, not knowing what they are doing, and expect to make a lot of money.
A lot of material in this guide is cut and dried and makes it possible to run a business. The business you can run at home on a shoe string. What follows in this chapter is essential to your success.
Testing Your Ability
People who succeed and make more money that they can spend in a lifetime have certain traits in common. See how many of these traits you have!
• Do you jump at an opportunity?
• Do you like to work alone?
• Can you stick to a budget?
• Can you juggle numbers in your head?
• Would you pick up a penny off the sidewalk?
• Do you keep up on the business news scene around the world?
• Are you a confident leader?
• Are you persistent in your efforts?
• Are you the kind who won't accept 'NO' for an answer?
If "YES" is your predominant answer to this list of questions, you are entrepreneurial material.
You are capable of achieving the things set out in this guide, if you keep up a progressive schedule of activities involving your work. Self-starters who consider snags in their plans as stepping stones are headed in the direction of success.
Remember: “It’s not a crime to fail; the sin is to have a low aim.”
Being Creative
An important aspect of creativity, for example, is trying to imagine how many ways information can be sold and how to "package" and "label" the information you are selling. A book, for example, is just one of many ways to get the information to the customer. Consider the alternatives. It may be more practical to sell your information as eBooks. The eBooks are more effective ways to get the information quick and at a lower price. Amazon kindle, Barnes & Noble Nook, and other eBook readers have given a new life to this concept which is spreading like a wild fire. It may also be more practical to sell your information in audio or video formats or as a set or folio of plans, or on records, or in a semiannual newsletter or on a web page. Indeed, newsletters dealing in specialized information are very popular. They thrive because they offer inside and confidential information not readily obtainable in commercial magazines. Think in terms of plans, folios, drawings, blueprints, and manuscripts of all types. Don't always look for the largest market. Look for the highest quality market. Several individuals in the United States are making enormous incomes by selling specialized newsletters at a subscription rate of as high as $100.00 per year.
Analyzing Your Readers
Do you know, who is reading your direct mail copy? What kind of language, examples, illustrations, have the most impact on the group you are trying to reach? If you were actually sitting down to write them a letter, a personal letter, how would you word it? It is vital that you understand how you relate to your "audience." You will find dozens of excellent books fail to sell because they were advertised with obvious insincerity.
If you are writing an ad for one of the opportunity magazines, for example, imagine someone you actually know who is a salesperson, or owns a small franchise. If you have a picture of him, place it in front of you. Now, take out some plain paper and write a personal letter to him explaining exactly what you have to offer, why he needs it and would enjoy it, how it works and how he can get one.
Keep at least 3 things in mind when writing:
1.Always think of the reader as a real person with real needs.
2.Get excited and convey that excitement to the reader.
3.Finally, speak in print. Write conversationally. Think and feel how your message flows from one idea to the next.
Repeat Business
If there is any classical advice in this business of selling by mail, it is to build a business. There is, for example, a big advantage to newsletters or books in a series. If your information is worthwhile, you will build a business because you will get repeat business and word-of-mouth advertising.
Ordinarily, selling products such as books by mail is one of the steadiest and most stable ways to make money by mail order selling. When you sell a product, always include a catalogue or brief announcement of your other offers. There is a very strong tendency for people to purchase from sources they know and trust. That is why repeat sales keep on building.
Testing Your Approach
Whenever you run an ad, or whenever you send out a mailing of any kind, test some aspect of your business.
If you are running two or three different advertisements, test two different prices or different guarantees, different body copy or different headlines, different photographs or a different layout. But once your ad is pulling well, leave it alone, don't change a word. At this point it becomes a work of art.
Testing a mailing list is easier, and it is also very important to use lists that get the highest response (see chapter 4 for more information about mailing lists). Direct mailing also has the advantage of being under more control than advertising in a magazine. You have little control over where your ad will appear in terms of position on a page or on what page or if it will be dominated by a larger ad. You, however, can request a certain position when you order space advertising, although it is not always possible to get it. Where your ad appears in the magazine will have a significant effect on its response rate.
Whenever you test some aspect of your offer, keep accurate records of your test. Never try to test two factors at once unless you can clearly separate them.
You can keep your records in spiral notebooks. Because they are cheap, and spiral wire prevents the pages from getting loose or lost. You know your records will be kept intact and in order for years to come.
The following is a quick check list of the data you should record:
1. The date of the mailing, or the ad, and when it actually appeared.
2. Where did the ad appear, i.e., magazine, newspaper, and on what page?
3. In the case of a mailing, the number of pieces sent out.
4. Were the letters mailed first class or bulk rate?
5. What code or key was used?
6. What variable was being tested?
7. What was the offer, and the price?
Much of the information sounds like old fashion direct mail. The electronic mailing and internet is covered later, which is the most important and modern aspect of cash at home business. The hints in this chapter, though selective and simple, can have substantial influence on your level of success.
PREPARING INFORMATION
There are at least four important aspects of mail order that should be kept in mind: (1) Quality of circulars is of paramount importance (2) Personal note of encouragement seems to improve response (3) Allocate yourself a sufficient budget to mail over 200 circulars to ensure an adequate sample, and finally (4) Mailing list is the most important variable in mail order (see chapter 4).
Direct Mail Circular
Your circular package should include one well-written sales letter from two to four pages in length, an order form (separate or at the bottom of the sales letter) and reply envelope, all inserted in a No. 10 envelope (4.125" X 9.5") if using regular postal mail. We may mention that two, three or four-page letters usually have more pulling power than a one-page letter, and a separate order form usually out pulls one that is printed on you circular and needs to be cut. Special photographs, testimonial letters or other illustrative material may be included on another flyer or data sheet.
The heart of your package, however, is the well-written sales letter. Keep it friendly, personal, enthusiastic, with no hard sell, but do ask for ordering your offer. One excellent way to prepare yourself for writing good "selling copy" is to start a Swipe File. Swipe File is a mail trade term for collecting and filing flyers, brochures, ads and sales letters from the competition. By taking note of what other mail order sellers are doing you can enhance your own efforts. In fact, you should try to get on the mailing list of your competitors, so that you know what they are doing. Here are some important ways to make your letter most effective.
1. Use a head line. Your headline can be in either reverse or bold type. Sometimes the headline is nothing more than a sentence or two typed below the letterhead, but above the "Dear Friend" salutation.
The headline may be thought-provoking, amusing, alarming or simply bold. Its purpose is two-fold: It should capture attention and it should lead the reader into the body of the letter.
2. Use a letterhead. Use a simple, conservative letterhead with a small logo if you wish. If you are going to use photographs, don't put them at the top of the letter; include them on a separate sheet.
3. Use several colors and/or type sizes in the letter. A combination of colors and type sizes makes the letter look more interesting. It has been shown that a mailer printed on color paper brings more response than one printed on white. Choose any light color that appeals to you but the most legible choice is black ink on light yellow paper. The body of the letter should consist of the same type style. But all important parts should be highlighted by bold type, caps, italics or underlining.
4. Use a salutation such as "Dear Friend," or "Dear Customer."
5. Break up the letter so that it doesn't look like a page from a book. If you want a paragraph to stand out, indent it and use a different color or type style. From time to time use a center head or a side head. Keep it businesslike, but at the same time break up the page so it looks interesting. Most successful direct mail letters selling information are printed on 11X17 inch sheets, folded in the middle so that the reader has, essentially, four 8.5X11 inch standard-size pages (printed on both sides) to read. The fold keeps a "binding" on the left hand margin so the reader won't lose the pages or get them turned around.
6. Stress the action step on the last page. Explain how easy it is to order and provide the assurance of an unconditional guarantee.
Getting It Printed
Get bids from a number of offset printers in your area. Your printer should provide you with a clean run, delivery when promised, and information along the way. Help your printer help you by providing the following information when you put your job out for a bid.
Paper: Stick with the standard paper sizes to save time and money. Go for the 8.5X11 or 11X17. You will want to choose a flat 20 lb. bond.
Ink: Although normally the paper is white and the ink is black, your job will be referred to as a one-color job. The printing price will be higher for two or more color jobs.
Pages: Counting two pages per sheet of paper (printed on both sides of the page), give your printer the exact number of pages of copy to be printed.
Art: If you will be having headlines typeset, pages numbered and line drawings included, these are all considered art and you will be charged extra.
Photographs: Printing with photos requires a special process and adds to the total cost of your print job.
Folding: How many folds do you want in your brochure? Do you want an accordion or gate fold? Both fold just like they sound. Ask for your printer's advice here.
Sometimes you can find a print shop experienced and set up to handle any number of operations from design, printing, brochure preparation, mailing list availability and even envelope stuffing. Don't buy more than you need, but when you find a good and friendly printer, one who will guide you on your first steps as a fledgling publisher, hang on to him.
Pricing Your Offer
Ask yourself if the offer you have to sell is really valuable and unique. If so, go for the higher price. You will get it.
Whatever the price, set it at the level that will make you the most money, but don't think the sky's the limit. Stay within your competitors' range.
MAILING INFORMATION
Direct mail marketing provides a very controlled and efficient method of reaching specialized groups of people. If the information you are selling is intended for such a market, direct mail may be your most profitable avenue for maximum sales.
Traditional Postal Mailing and Mailing Lists
The traditional mailing is almost a history in this age of computer technology and email marketing. However, there still are people who are using this marketing tool. So we will add information for those who still like to use. We use once a while a too. The success of your sales package depends on the fact that it reaches the responsive customers. Therefore, selection of lists that contain responsive names is very critical. You may like to take advantage of this free information on “How to use BULK-EMAIL, FAX-BLAST, and POSTAL mass-mailing to promote your business.”
The number of lists available is plenty and it keeps increasing. The Direct Mail List and Data Guide published by Standard Rite and Data Service, 5201 Old Orchard Road, Skokie, IL 60076 now have compiled descriptions of over 25,000 lists. But to get the one you are interested in, here are some of the things to consider when you are evaluating various lists:
1. Know the source of the list you're renting. Where did the names come from? For example, if you are involved in MLM programs, then names of high income Americans are most likely not what you want. You should also know how the names were obtained. Never rent a list unless you know the source. There are, unfortunately, a number of people who will ply you with offers to rent their lists. The test group of names may be good, but as you continue to rent other names on the list your results will fall off. This happens because the lists are watered. A dishonest owner with 5,000 good names can add 20,000 old names from somewhere else so the list appears to number 25,000. Reputable brokers get the word about these lists and help you avoid them.
2. If you have to select a list from buyers or inquirers, select the list with recent buyers only. They tend to respond better.
3. Avoid nixies, which are letters returned to you as undeliverable. If the list hasn't been cleaned by removing undeliverable names, then your response will be diminished. A list that has not been cleaned regularly and recently, can cut your revenue potential by 25%. If you're just starting out, this could break your direct mail budget. That is why recency is a prime factor in list evaluation. The list is good, if it consists of people who have purchased an offer similar to yours within the past six months, but be cautious, if purchase was made one or two years ago.
4. As a rule of thumb, people over 35 years of age respond better to mail order offers and so do people living in rural areas.
5. Lists are not sold (except through list owners). They are for rent and one time use only. List owners keep track, for example, by using "dummy names" on their lists. However, once a person responds to your offer, then that name can be used on your list.
So, if the list owner receives a sales letter addressed to a dummy name, and he hasn't authorized the rental, he can file suit against the mailer. In a year or so, when you rent your list, be sure to add your own dummy names to it. So that you will know if someone is using your list.
Evaluation of a Few Selected Lists
In this age of computer technology, you can always search for new mailing list companies. Just to give you an idea, we have evaluated a few selected mailing list companies. We hope you will benefit from our efforts. They are evaluated on response rate, cleanliness, price, and speed of response to the order. The scale is excellent, good, fair, poor.
We have personally used each of these companies when we started the business and had no in-house lists. Even if some of them are not in business anymore, you will learn about the kind of problems you should avoid when buying lists. The worst list we have ever used is McAfee (1815 Carpenter St, Bridgeport, TX 76026). Out of 5,000 distributed 10% came back as undeliverable (nixies) and we received but 2 responses. Many came back because forwarding time was expired. This means, these are old, worn-out lists, which you should avoid.
Unicorn (P.O. Box 231, Decatur, IL 62525) has high prices but their lists are clean and responsive.
Perfect (P.O. Box 1974, Memphis, TN 38101) are good in price, response rate and cleanliness. The only problem with perfect was their delay in processing the order. It took as long as two weeks to receive their lists even when their instructions were followed for extra fast service.
S.E. Ring (P.O. Box 15061, Fort Lauderdale, Fl 33318) has high prices and pulling power is poor.
Opportunities (P.O. Box 2780, North Conway, NH 03860) and Sell-More (126 Homecrest Station, Brooklyn, NY 11229) provides good names with affordable prices.
Elite (770 Samantha St, Mtn House, CA 95391) provides quality names at an affordable price. Unless you want them printed, this company email the names same day you order at no extra cost. A good source of names for new entrepreneurs. They also provide fax numbers and email addresses.
Kind of Lists
There are three categories of direct mail lists to consider: compiled, buyers, and your in-house list.
Compiled Lists: A compiled list is made up of people who have a common characteristic. All may be smokers, tennis players or stamp collectors. A compiled list is, generally, made up of names that come from trade or professional organizations, club rosters, specialized directories, even telephone books. Compiled lists are generally not as responsive as lists generated from actual orders and inquiries. The audience is small and specialized and this is usually not the kind of list you would like to start with, unless your offer calls for a specialized group of people.
Buyers or Mail Response Lists: The buyers list is made up of people who have bought from a mail order firm that promotes a product complementary to your offer. If you have a booklet on winning tennis serves, you may want to acquire the list of those who have bought a can of special high-speed tennis balls by mail.
This is a healthy list for a beginner to consider. Not only is the person on the list interested in your special subject, but it has been proven that he/she is a mail order buyer, too.
In-House Lists: Your house list is your very own list, and it is compiled from names of all those who have replied to your advertising. These are the people who have ordered or inquired at least once. Your best house list, however, can be made up of only those people who have ordered your offer. This list is your most valuable. Work it, maintain it, and rent it out.