BECOME THE PUBLISHER OF THE

MAIL ORDER BUSINESS REPORT SERIES!

 

 

Sell Individual Reports Or The Entire Series And Make A Profit Of

Over 700% On Each Sale!

 

State Sales Tax Guide

If you are starting out in Mail Order you need this incise report

on State Sales Tax and how to deal with it Covers all States

Mail Order- Most Common Mistakes

Avoid classic mistakes so often made by beginners. Every week we

receive dozens of direct mail pieces that are so bad they make us

shudder. There are rules to this game-and here are the fatal

mistakes you must avoid

How To Create Circulars, Small Brochures and Sales Letters!

Every day millions of pieces of Direct Mail get tossed. Yours

doesn't have to be one of them. Here are some very basic rules

that will get you orders NOW!

Mail Order Advertising Directory

Lists the best publications in which to advertise your offers.

Emphasis on publications which accept classified advertising.

Includes rate information

Mail Order Bookkeeping Basics!

Here is a quick and easy to understand introduction to mail order

bookkeeping. Easy to understand for anyone-- even if you have

never done any bookkeeping. Includes all necessary forms and

ledgers ready for you to duplicate. You will be ready to get

going the day you receive this New Special Report

Mail Order Laws and regulations

A detailed overview of current laws and regulations. Important

for those starting out. Knowing these facts will keep you out of

trouble.

How To Set Up An In-House Advertising Agency

So you can start cutting 15% off your Advertising Dollars

immediately! If you are spending $200, $300, or more per month in

advertising you need to set up your own agency. It's extremely

easy. This detailed report tells you how. Includes sample

insertion order form ready for your agency imprint.

The Postal Savings Guide

Important information on how to manage this major mail order

expense to keep expenses at a minimum..and other important tips

on how to deal effectively with your Post Office.

How To Acquire, Create and Market Self-Publishing Articles

You can generate simply huge profit margins by marketing

self-publishing material and selling reprint rights! This

detailed Special Report will show you "How To Acquire, Create And

Market Self-Publishing Articles." The field of self-publishing is

wide open and the most lucrative in the mail order information

business

The Beginner's Mail Order Business Guide

113 pointers for the beginner. Covers everything from company

name to product, pricing, advertising, mailing and everything

else that is essential to know.

How To Write Classified Ads That Get Results NOW!

Here are the Insider Secrets on how to write` them to get maximum

response and how to convert them into Cash Orders!

 

Controlling Mail Order Key Expenses

Besides the cost of the product you are selling the three major

expenses categories in your mail order business are: Advertising,

Postage and Printing.. Here are some powerful tips in how you can

control and even decrease them.

Getting Started In Mail Order-How Much Does it Really Cost?

An expert said you could get started for less than $100.00. Don't

believe it! Here is a realistic breakdown of expenses you could

expect for a minium, moderate and aggressive start-up

Mailing Lists Can Be Profitable

Renting and effectively using mailing lists can be effective and

profitable..or renting wrong lists can be throwing money out the

window.. This report will make it possible for you to generate

maximum profits from your mailing lists.

 

STATE SALES TAX GUIDE

An overview

Published 1991 By Mascor Publishing Co.

Copyright 1991 By Mascor Publishing Co.

P.O. Box 8308

Silver Spring, MD 20907

All rights reserved

INTRODUCTION

THe intent of this publication is to give the newcomer to the

mail order field an overview of state sales and use tax laws as

they affect a small mail order business. As of 1988, 45 states

and the District of Columbia levy sales and use taxes. In

researching this project, I was unable to find any publication

that provided comprehensive information o sales and use taxes in

all states. The information we present is based on limited

research of laws in the State of Maryland, and several other

northeastern states. Yet fundamental rules as pertaining to

sales and use taxes appear to be fairly similar throughout the

country. No information is this overview is to be constructed as

presentation of legal or tax advice or advice on any laws in any

state or municipality in the U.S. Such advice and information

should always be obtained from qualified attorneys. CPAs or the

appropriate state or city sales tax office.

Without question, the two tasks that I dislike most are reading

and writing about insurance or taxes. I had, therefore, put this

project off for quite some time. What eventually prompted me to

write it anyhow was I saw a definite need, often based on a lack

of understanding about sales and use tax matters by newcomers to

the mail order field. I promise you this will be as short and

painless as the subject allows.

FACTS ABOUT STATE SALES AND USE TAX LAWS

1. I List this fact first since it seems to represent the biggest

misunderstanding: Sales tax is levied on intra-state sales only..

Sales taxes are no levied in interstate sales, except as shown

below.. This simply means that the ABC Mail Order company located

in Los Angeles, CA when selling an item to John Doe who lives in

Denver, CO, does not charge him sales tax. The ABC Mail Order Co

only needs to levy sales tax to a resident of the State of

California. This rule is based on a Supreme Court decision of

1967 in which the Court decided that state sales cannot be levied

on sales made to residents of another state. Congress did,

however, amend this law earlier this year, and it now requires

those mail order companies which have annual volumes in excess of

$2.5 million dollars to collect sales tax on interstate sales. It

is expected that the 2.5 million dollar figure will be lowered in

the next several years, but it is unlikely that small or medium

mail order companies will be required to charge sales tax on

interstate sales in the foreseeable future.

2. State sales taxes are levied on retail sales only. It is the

person who uses the product who must pay the taxes, not the

various layers of companies which are between the manufacturer

and the user.

3. You, the company, charge the tax and hold it in trust for your

state until your next sales tax filing.

4. Iam often asked:"since I am just starting out and just a small

company can I just forget about charging the tax?" I definitely

do not recommend such a course. If you do you are violating an

important laws of your state and are subject to the consequences

which can be severe. remember one of the most important premises

of tax collection policy in this country is for the Federated

State and local governments to require strict adherence. If they

let one company, no matter how small, get away with

non-compliance, the "Tax Collecting Structure" is adversely

affected.

5. Along with the above question here is another equally popular

one: "Since I am quite small, can I just pay it for my customer

and not show it on the order form? The information I have been

able to come up with is that all states feel very strongly about

this point.. IT IS DEFINITELY, MOST EMPHATICALLY A NO-NO. I was

told that any company who follows this practice is subject to (A)

paying all taxes again though they may have been paid before, and

(B) the company will be subject to all appropriate fines,

interest penalties and punishment under the law. As the operator

of a small mail order business, you sometimes are subject to

using the promotional material that your suppliers provide you

with; many of the circulars do not have sales tax information and

you have a small problem. But it is very small because (A) It is

easy enough to fix a circular; a little typewriter whitener, your

local (or out-of-town) printer, typesetter, desktop publisher it

is always a good practice to include your own order form which

contains the sales tax information for your state. You will get

more orders that way since some of your customers want to keep

the promotional material you send them intact until they receive

the goods. So an order form which costs less then 3 cents a piece

is a good marketing tool and it will keep you out of trouble with

your state authorities.

6. It is very easy to obtain the proper information and then to

comply with it. I know when starting a business these small

matters can often appear to be overwhelming, but almost always

they just appear that way.. So, just take one step at a time. No

matter where you live in this country, if your state gas a sales

tax, there will be an office nearby that will be glad to give you

information. Just ask the telephone operator for the listing of

the local state sales tax office. You will receive information in

a few days. Generally there will be no fees to pay and forms are

easy to fill out... In a few days or a couple of weeks, you will

be issued a sales tax license. Your state does not care if you

operate your business out of your home, garage, and office or

warehouse location. All the state wants is to collect taxes.

7. Most, but not all states have quarterly filings. The sales tax

office will set you up on a schedule. If you live in one of the

less populous states and are just starting out, your quarterly

amount due will be very small and could be as little as $1.. You

still have to file and pay. If you operate in one of the large

states such as California, New York, Texas, etc..you may do quite

a bit of business in your own state.

8. Certain products and most services are exempt from state

sales taxes. Since different states have different rules, it is

best to obtain the regulations for the state where your business

is located.

9. Penalties for non-compliance with state sales tax laws vary,

but in general are quite strict. It is best not to take chances

and to strictly comply with the laws of your state.

10. Many cities throughout the country levy sales taxes. Such

taxes are beyond the scope of this article. The principle and

basic rules of city sales taxes, however, are similar to those of

state sales taxes.

11. SALES TAX RESALE CERTIFICATES. Laws may vary by state but the

principle is based on the premise that the sales tax is only paid

by the consumer or "end-user." Yet your supplier is required by

law to charge you the tax unless you can furnish him with a Sales

Tax Resale Certificate. Example: You sell a series of reports

both to customers inn your state and customers in other states,

and you have them reproduced at a local quick print shop who

charges you the appropriate sales tax.. Call your local sales tax

office to obtain an application for a Tax Resale Certificate. As

soon as you present it, your supplier can cease levying the tax

on you. As previously stated, the reports you send to your

out-of-state customer are not subject to state sales tax, but the

reports you sell to your in-state customer are.

12. State use sales taxes are slightly more complicated to

explain than sales taxes. A "use tax" generally applies under one

or two circumstances : (A) You are buying certain quantities of

supplies wholesale and are reselling most of the product.

However, you are retaining part of the product for your own use

or consumption. You must estimate that portion which you use, and

pay the use tax on it.. (B) More commonly you are buying certain

suppliers for your own use and not for resale from an out-of

state supplier. You must pay the use tax on those items.. Some

common examples are: Office supplies, printing supplies, office

equipment, etc. Obtain specific information from your state. Use

tax rates are assessed at the same percentage rate as sales tax

rates. Items you buy out of state which you resell, such as books

or other products, are not subject to the use tax.

I strongly recommend that you obtain specific information from

your local sales tax office and then adhere to all laws and

regulations of your state. The inconvenience of dealing with

those rules will be minor compared to the possible serious

consequences of non-compliance.

The last page of this article shows (!) The sales and use tax

rates which were in effect on July 1, 1990, in those states and

the District of Columbia which levy sales and use taxes. Changes

may have occurred since that time.. (2) A sample ledger sheet

which may be one way you could record your sales taxes. If you

are audited, it is important that you be able to produce a

workable system that indicates you record sales taxes as a

routine procedure. (3) That portion of a sample order form which

shows the sales tax information.. Please note that almost all

states levy the sales tax on that amount which includes postage

charges.

State General Sales and Use Taxes,

1990

Sate Percent rate State

Percent rate

Alabama 4 Missouri

4.225

Arizona 5 Nebraska

 

4

Arkansas 4 Nevada

5.75-6

California 6-7 New Jersey

6

Colorado 3 New Mexico

 

4.75

Connecticut 8 New York

 

4.-8.25

D.C. 6 North

Carolina 5

Florida 6 North Dakota

6.5-7.5

Georgia 4 Ohio

5

Hawaii 4 Oklahoma

4

Idaho 5 Pennsylvania

6

Illinois 6.25 Rhode Island

6

Indiana 5 South Carolina

5

Iowa 4 South Dakota

4

Kansas 6 .25 Tennessee

5.5.

Kentucky 5 Texas

6

Louisiana 4 Utah

6.25

Maine 5 Vermont

4

Maryland 5 Virginia

4

Massachusetts 5 Washington

 

6.5

Michigan 4 West Virginia

6

Minnesota 6 Wisconsin

5

Mississippi 6 Wyoming

3

ORDER FORM

ORDER # PRICE

_________________________________________________________________

_

_________________________________________________________________

_

__________________________________________Subtotal for items

listed above _______________

Postage $2.00 minium...or

10% of order on orders over $20.00

_________________

Maryland residents: Add 5% of total (sales tax

_________________

Total amount enclosed

_________________

Name ____________________________________________________

Address ___________________________________________________

City ________________ State _______________ Zip_______________

 

(________)Check (____________) Money Order

ORDER NOW- IMMEDIATE DELIVERY

MONEY-BACK GUARANTEE

XYZ SALES CO.

P.O. Box 1000

Baltimore, MD 20907

Date |Customer Name| Zip Code | Item Description | Amount of

|Sales Tax

or Code

Incl. Postage

 

 

Daily Totals

MAILORDER--MOST COMMON MISTAKES

By Peter Schruender

Copyright 1990

Macor Publishing Co.

Silver Spring, MD

INTRODUCTION

Much of the following text is based on mistakes, some of them

costly ones, which I made during the early part of my mail order

career. In addition, I have worked with many people over the

years and have observed the most common mistakes that are made

over and over again by most entrants into this business

THE GREAT MAIL ORDER MYTH

There are a number of totally unrealistic and irrational beliefs

about the mail order business. To belive in any of them can be

dangerous to your pocketbook. Here are some of the most common

ones:

1. It is possible to make vast amounts of money in a short period

of time under the following conditions:

a. No experience

b. Little or no investment

c. Insignificant work effort

If this were a multiple choice test, then A, B, and C, would be

FALSE-- FALSE AND FALSE AGAIN

It does take experience, and knowledge, which can be acquired

through reading, observing, and doing... There are many good

books as well as some bad ones, on the mail order business. Stay

away from books that make unreasonable promises. Our Special

Report Series is designed to give you factual information on a

specific subject. Universities and colleges across the country

give courses in mail order and direct mail.

You can learn a great deal by observing companies that have been

around for some time and are successful. Read their ads, study

their offers and promotional literature. Some of the most

effective direct mail offers are written by professional writers

who are employed by large companies and who will not have a job

unless they write successful and effective material. So, the next

time you throw away a piece of mail from American Express or the

Book of the Month Club, look at it and study it carefully.

The mail order business, like any business, requires an

investment... It may be smaller, in many cases, than a business

which requires a store front.. In most cases, mail order

entrepreneurs launch their businesses from their homes. The

amount of the investment is largely determined by the magnitude

of the entrepreneur's effort. A part-time mail order business can

be gotten off the ground for less than a thousand dollars...

The belief however, that a business, any business, can be started

for $50 or $100 is totally false. I might add, it can be very

profitable to those who make their living telling people it can

be done.. of course, they are usually the ones that want, and

often get, the only $50 they say it takes to start the business.

And now we get to the really good part--little or no work. In

some peoples' minds, it goes something like this: Put in a few

hours here and there, easy work, just stuff some envelopes, run a

few ads; and wow, the money will be pouring into the mail box!

Anyone who belive that probably also believes they are going to

win a few million dollars in the lottery. The odds are not very

far apart. Building a business, mail order or any other, is hard

work.. It takes great perseverance, belief in your efforts and

lots of work.

2. Many people belive that they can get lucky in this business.

Don't believe it for a minute.. It is the greatest mail order

myth of them all. To belive it is fatal. Look at this business in

the same way you once looked at your job anytime you first began

to learn a new skill. It took time to acquire those skills and

this is no different. It will take time and also effort.

3. Finding the one book or product that thousands or even

millions will buy. Well, it is obviously possible since it has

been done, however, your chances of coming up with another Pet

Rock or Rubik's Cube are highly unlikely. It is equally unlikely

that you will discover the one book that will be bought by

hundreds of thousands. But your chances of becoming a success in

this business and making a lot of money are excellent, if you

adhere to the rules and principles of the business.

4. Running a small ad in a national magazine and getting hundreds

or even thousands of orders.

5. Renting a mailing list of 1,000 names and getting 150 to 200

orders. A very good list will generally produce no more than 2%

to 3%, 20 to 30 orders for 1000 names. Your own list may do much

better.

There are a few of the ,most common beliefs about our business

that are almost always totally false.

PRODUCT CHOICE

Since my experience in the mail order business is exclusively in

the area of selling information products, my comments will be

most pertinent to that segment of the market. However, much of

the information covered here is applicable to any product sold by

mail.

The first task any new entrant into this business has to deal

with is to determine what product to sell and to whom he will

sell it.. This is a considerable task and it should not be taken

lightly.. Many serious errors are committed in this area.. To

become well informed in this area, it is necessary to read

various publications that cater to those people to whom you wish

to sell your products. REad the news content and study the ads.

Send in for free information on those ads that are close to the

products that you select have an ongoing demand so your customers

will want to buy from you again and again.

During this early stage of your mail order career, it is of

utmost importance to control your enthusiasm. If you don't, you

will get drawn into the SHOTGUN APPROACH. In this scenario, you

will be so enthusiastic and impatient that you will make a number

of rapid moves such as the following: You will buy one or more

distributorships; choose one or more products that you know a

little about (it amazes me beyond belief that people make

marketing decisions about products they have not seen--this is

simply insane): run one or more of the publications; or rent a

mailing list and have no idea how the names on that list were

accumulated.

Needless to say, you can spend a thousand dollars or more in a

hurry and you may get little or no results from your efforts..

And what is even worse, you will probably become discouraged and

get out of the business before you had a chance to understand it

at all.

When choosing a product, take care in considering all aspects

associated with the marketing of it.. The most important

considerations are:

demand and repeat demand

Cost and mark-up potential

Shipping or dropshipping arrangements

Reliability of your major suppliers

Product storage in case you decide to do your own shipping

Cost of shipping

The most important consideration in choosing a product or line of

products is your belief that this product represents a service or

need to your potential customer. The product or products must

also have related products that can be sold to your customer at a

later time.. Each product you sell should be marketed with the

aim of selling additional products. This is why, in general,,

selling just one product is so very difficult and selling a line

of products via a catalog for example, is so effective... A

versus a single one. The more items you can sell each customer,

and the more repeat sales you can generate, the more money you

will make.

THE PROMOTIONAL OFFER

Once you have chosen your product, set the price, decide who your

supplier is going to be and how it will be shipped, you begin to

put together the marketing material.. This is more crucial in our

business than in any other business and it is also precisely the

reason why a percentage of the population will not buy by

mail---because they cannot see, smell or fell the product until

they have paid for it.

The most common mistake committed in this area is to duplicate

exactly what another enterprise is doing. One of the big problems

with this approach is, since there is so much plagiarism going on

in this business, you may be copying someone who is just as new

in this business as you are and who is also copying someone

else's idea. It is OK to copy what others are successfully doing

example, many companies in the information product line will

provide their dealers or distributors with ready-made promotional

material. In most cases, this is the least expensive way to get

started and, if you are dealing with a reputable and successful

company, you will be promoting products that have been proven

successful.

It is recommended however, that you use this approach only until

you get your feet wet. Then you should begin to develop your own

material. Once you have a better understanding of what sells and

who is buying it and why, develop your own brochure, circular,

etc. You can still utilize the material of others as an addition

or follow-up to your material. Developing your own material is

not at all difficult and can be done professionally and

effectively on a rather small budget. A good promotional offer

consists of several important components which include:

The circular or brochure, or catalog. A brochure or catalog does

not have to be a 40 page instrument but can be as few as 4 pages

An effective sales letter

The ordering instrument--this may be a built-in order form,

separate order form, etc.

Return envelope

Of the above, the development of the brochure, circular or

catalog, is the most expensive so here is where you will most

likely use something that is supplied to you by your supplier.. A

hard hitting sales letter is as important as the brochure. You

have generally three options in tackling this project:

1. You can copy one from someone else. Since an exact copy may be

illegal,, you should probably use elements of the letter and make

some changes but the end result generally leaves much to be

desired.

2. You can pay someone to write one for you. This can be very

expensive and may still bring about less than desirable results.

The biggest problem here is that the writer of your sales letter

will generally not understand your product as well as you do.

3. Do it the right way, the hard way. Do it yourself.

There are many good publications on effective letter writing for

direct marketing and you should read one or more of them. Keep in

mind that no one will understand your product as well as you do..

To do a good job, it is a definite requirement that you believe

in the product and believe that it has one or more important

benefits to the buyer. Just having the desire to sell the

product, so it will make money for you,, will not cut it as a

rule.. Once you understand the basic components that need to be

in every sales letter, you should be able to write one.. A little

practice may be necessary. You will become more proficient with

each new product.

An order form should be user friendly. Your customer should be

able to read the instructions with ease. If your brochure,

circular, etc. has a built-in order form, it is generally a good

idea to enclose a separate order form.. This way the customer can

keep the original offer intact.

Enclosing a return envelope is strongly suggested. The idea is to

make it as easy as possible for your potential buyer to part with

his money and send it to you without too many hurdles.

The biggest sins are committed under this topic of The

Promotional Offer and, since the promotional offer is the only

thing your customer sees before deciding if he will buy from you

or toss you in the nearest trash can, you must do things right,,

there are absolutely no exceptions. If you are sloppy here, if

you try to save a few bucks, you are cheating yourself, not your

customers. Keep in mind he is an expect at rejecting offers since

he had many years experience. the average American is presented

with approximately 6,000 plus offers to buy something per

week--TV, radio, newspapers, magazines, road signs and,, last but

not least direct mail.. Or, putting it into more personal terms,

YOUR OFFER. So sweat over this one SO YOU WON'T GET TOSSED.

THe money which is wasted annually in this country on substandard

direct mail would make a substantial dent in our country's

national deficit. Every week I see dozens of offers come across

my desk that could make me weep.. Such garbage! Return envelopes

with crooked rubber stamp imprint, sales letters with spelling

errors, grammatical errors, etc., so called brochures which were

apparently copied by a 20 year old copying machine.., circulars

that look extremely unprofessional because the order from section

has obviously been changed by a typewriter and they arrive all by

their lonely selves, no sales letter, no return envelop.. God it

is awful! The authors of this garbage are screaming to the world:

"i am an amateur, I am an amateur, I have no idea what I am doing

but I want your money. You'd better belive and not forget that

this country is made up of 240 million of the most sophisticated

buyers to be found anywhere on this globe.

Yet, this is also the area where you can shine and excel beyond

your wildest dreams.. Modern technology has given us the tools to

produce marketing material that can make you look as good as some

of the largest and most successful companies in this country. And

you can do it right out of your home. You will find professionals

who can help you in this endeavor. Right in your own city there

are desktop publishers, graphic designers, and word processing

services that are eager to help you. You could get a 4 page

brochure designed for as little as approximately $100, in most

markets, plus printing. The brochure can look just as good as the

brochure of a million dollar company.

Therefore, you must do things right. The average buyer will look

at your piece for less than 8 seconds to decide whether to junk

it or study it.

MARKETING YOUR PRODUCT VIA ADVERTISING

Most new mail order entrepreneurs will sell their products

through advertising once they know what they will sell and have

developed their promotional offer. Since display advertising is

generally quite expensive, it is best to start out with

classified ads in monthly national publications. Classified ads,

as well as small display ads, should only be used to get

inquiries from promotional buyers. The inquiries are sent the

promotional material you have developed and a percentage of them

are converted into buyers. This percentage generally will range

from between 6-12%. If you want to sell something directly from

an ad, the item should cost less than $4. There is not enough

space in a small ad like that to convince a buyer to spend $10 or

$20. For that reason, you see full page ads selling products in

that price range.

The first task is to choose the right magazine. One of the most

effective ways to find the right magazine is to choose one that

carries ads by successful companies that sell products similar

to yours... The wrong magazine is generally the one whose content

attracts readers who are not at all interested in the product you

are selling.

Choosing the right classification in the publication is as

important as choosing the right magazine.. Again follow the

leaders. Since there are thousands of magazines catering to

almost every possible interest group, the possibilities of

finding new opportunities to market your products are unlimited.

I suggest, however, that in the beginning you stick with well

known magazines and leave your experimentations for later when

you are better established.

Monthly publications are generally more cost effective than

weekly magazines, and certainly, daily papers. You can get

inquiries from a national publication, such as Popular Mechanics,

for months and sometimes well over a year. A daily paper, on the

other hand,, will rarely produce an inquiry beyond 2-3 weeks

after it was published.

A common advertising mistake is to choose inexpensive advertising

such as in shoppers papers, mail order trade journals, etc. It is

not how much the ad costs but how much each inquiry costs you...

If you ad costs $100 and you receive 100 inquiries, each one has

a direct cost to you of $1. Early in mail order career I spent a

lot of money for a $10 ad here and a $20 ad there. I soon learned

that sometimes I would only get one or two inquiries for my $10.

Expensive! To test a product and promotional offer it is

sufficient to run the ad just once.. The magazines and

advertising agencies will often tell you that to test an ad you

must run it 3 or more times. I say no. Not until you know how the

first one pulls. You will need some patience for this endeavor

since most monthly publications have a lead of two or three

months.. But its is much better to wait a little while than to

spend hundreds of dollars without getting needed results. To

write successful ads also takes practice and work.. Once again,,

follow the leaders. A successful ad can often pull two, and

sometime three, times as many inquiries as an ineffective one.

MARKETING YOUR PRODUCT VIA MAILING LISTS.

This approach is often preferred by the newcomer. Unfortunately,

it is also generally the least effective way. It is preferred by

many because it is perceived to be easy. And if it worked it

would be. Millions of dollars are made by companies in renting

the wrong names and stale names to new mail order entrepreneurs..

Both sides lose. The company renting the names will not get any

repeat business and the customer often goes out of the business

if his efforts are futile. Almost my very first mail order

experience, "a very rude awakening," was when I rented such a

list, sent out 1,000 offers (first class no less- a definite no,

no) and I got how many orders: "How about two or in dollars $20."

Between postage, printing, renting the list, etc.,my cost was

well over $300.

The most unfortunate mistake newcomer make here is to assume one

list as good as the next one. I generally recommend that

inexperienced mail order operators start out advertising, and as

they gain experience, begin to use mailing lists in addition to

their advertising. But, if you absolutely cannot resist, at least

be very picky in choosing your lists. Deal with a reputable

broker or smaller mail order company that you know advertisers

frequently. Find out how the names were generated. What did the

ad that brought the inquiry sell? If you are trying to sell books

on how to start a new business and end up with the names of

people who answered an ad about how to find a better job or learn

a new hobby, you will have wasted your money... Likewise if names

are older than 6 months, preferably no more than 3 months, you

will get too many returns and people may not be interested in the

same subjects anymore. Mailing lists especially your own, can be

highly successful, but only if you have gained enough experience

to make wise selections.

MANAGING YOUR BUSINESS

The single most important element of managing this or any

business is watching each and every expense. Although mail order

companies, even larger ones, have relatively low costs in the

area of labor, office rent, etc.,they do have very high costs in

these categories: postage, printing, and advertising. You must

watch these expenses like a hawk. The best way to look at your

expenses is on a per unit basis. We already addressed the cot per

advertising inquiry. Let's now look at a typical mailing of 1,000

pieces.

Your Cost

1,000 #10

envelopes........................................................

.

.. $25.00

1,000 #6 3/4 return

envelopes..........................................20.00

1,000 sales letters imprinted on both sides................28.00

1,000 order forms 8 1/2 x

11...............................................28.00

1,000 4 page

brochures........................................................

.

....90.00

1,000 postage (bulk 0.26.7 cents

per................................167.00

Total

$358.00

1,000 names--rental

40.00

Total

$398.00

Now think in terms of cost per unit, each one costs 40 cents. If

you were to use First Class Mail instead of Bulk Mail, your cost

would shoot up to 48 cents, a 20% increase. If, on the other

hand, you could buy your printing for a little less, you might be

able to cut 5 cents off your cost.

 

It is also very important that your product allows you a high

enough profit margin. A markup of 200% is preferable but 100% may

be sufficient, especially if you sell via catalog and will

therefore, generate more than one item per order.

Let's assume you will get a 1.9% rate of return on this mailing

which will give you 19 orders at an average order of $38.00 which

Would give you a gross take of...... $722.00

Less -- Cost of product - 35%........-.252.00

Gross profit............................................. $470.00

Less -- Cost of Mailing...................... - 398.00

Net profit......................................................$

 

72.00

Let's assume you had sent your mailing First Class. The

additional $80.00 would have robbed you of your entire profit.

The above figures are merely used to illustrate the importance of

thinking in cost per unit and being highly cost conscious.

The receding pages have attempted to cover some of most important

areas you should be aware of as you start out in this exciting

business. Although the emphasis in the preceding pages has been

largely on the negative, I belive strongly that this business has

immense potential and rewards for anyone who has the interest and

dedication to learn it. If you do your homework and make

deliberate moves based on your personal knowledge and experience

and you expand with each success, the potential for your ultimate

success is almost unlimited. Don't forget that unlike your

friendly neighborhood retail store which sells only t a confined

geographical market, you can market your product to over 260

Million people in the U,S, and Canada.

So remember before you can earn you must learn!

HOW TO CREATE CIRCULARS, SMALL BROCHURES, AND SALES LETTERS THAT

WILL GET YOU ORDERS, NOW!

by Robert Drake

Copyright 1990

Mascor Publishing Co.

P.O. Box 8308

Silver Spring, MD 20907

WHY ARE YOU WRITING THIS BROCHURE OR SALES LETTER?

A great deal of money is wasted each day in putting useless sales

and marketing material. Material that was written for the wrong

reason or the

writer forgot its purpose after he started writing it or fell in

love with his own words.

The single purpose of any marketing communications is to get the

reader to take action... That action may be to request additional

information or to phone in or send in an order. Before you write

any marketing document be sure you are clearly focused on this

point. As you write each sentence and each paragraph, constantly

ask yourself whether what you are writing will get your prospect

to act.

It is easy to get sidetracked but don't fall into this trap..

Your purpose is not to tell the readers how clever you are or how

great your company is to try to entertain your reader. Your only

objective in writing this material is to get your prospect to:

1. Send in or call in an order.

2. Obtain more information, if that is your intent.

So, before you write your material, write down its purpose and

then stick to it.

The focus should always be on the prospect, not the writer!

All of us are barraged with direct mail pieces every day. Have

you noticed how many of them, even in the opening paragraph, miss

the point which is you the reader and your needs.

Here are two examples. Both were written by magazines with the

purpose, I assume, to get the reader to spend advertising

dollars. You decide which one is doing the job.

I. Avertiser's Introductory Special

Advertiser:

The XYZ Magazine is a monthly national mail order newspaper which

is circulated by mail... Our readership of 1,000,000 are mail

order responsive subscribers, Opportunity Seekers, Investors,

Salespeople, etc...........................

2. Looking Fora A Fresh Start?

Millions of Americans have a dream, and that dream is to become

rich and successful in an exciting, lucrative business of their

own -- What better way than to start through classified

advertising.

When you receive a sales letter or brochure that focuses on you,

don't you take notice and get further into the material?

Make it a practice, at least until you become more experienced to

scan each and every promotional piece that is sent to you. You

will quickly establish the difference between effective and

ineffective material.

Some Research Will be Helpful

Writing the right material but directing it to the wrong person

is fatal. Don't you often get married, especially direct mail

pieces, which have absolutely nothing to do with your needs or

interests.

Know who you are writing to and what that person wants.. How can

he benefit by what you have to offer. One way you can accomplish

this is by picking out those classified or display ads that

resemble what you want to sell. Then send in for more

information.. You soon learn how the product is being marketed by

different companies.

The very best way to write material that reaches the prospect is

by writing to one person rather than writing for mass appeal.. It

will keep your style easy and friendly.

Lethargy is human nature and overcoming it will be one of your

greatest challenges... Most of us are lethargic by nature.. If we

can do it tomorrow or nest week, why not.. People feel if they

don't take any action they cannot make a mistake. Every marketer

has the formidable challenge of overcoming theses "Non-action

Tendencies."

The anxiety/fear syndrome can be effectively used to overcome the

above... For example: "This is a limited offer." This offer must

be exercised by date...Be believable in what you are saying.

Consider using testimonials, government studies, well known

research, etc. to aid you in making your point.

For example, research pertaining to the start of any enterprise

indicates that before any business can be started, someone

initially has an idea and then at some crucial moment takes the

first step.. It is when he translates the mental commitment into

a physical act. This may be the purchase of a book, report,

franchise, distributorship, going out and looking for a site for

a retail outlet. etc.

This is why you see so many marketing documents how the marketer

uses this fact in trying to overcome the resistance of inaction.

There are many other ways you will think of in overcoming this

resistance.

Features of you product or service such as how fast you deliver

something, what color it is,, how it can be assembled are far

less important to the buyer than benefits are to him.

The benefit of sitting on you new outdoor furniture, on your

patio on a warm summer evening and enjoying a cool beer are far

more important than the fact that this outdoor furniture is

constructed of the finest material,, comes in four different

colors, is delivered in 10 days and has a 30 day money back

guaranty.

All you have to do is to watch the car commercials, of the

manufacturers, not the dealers. What is the last time you have

seen one that gives you much, if any information on the car. What

do you see in many of these T.V. car commercials? Beautiful

women, healthy looking young men, a beautiful sunset on the

Pacific Ocean, and wonderful background music. The shiny new car,

of course, is part of the scenery. But none of it really has

anything to do with what a car provides, transportation,

reliability, performance, etc.

There are many way in which you can turn features into benefits

by carefully weaving it all together. The fact that this lawn

furniture you are selling is delivered in just 10 days brings the

benefit of sitting on it, on a summer evening......so much faster

to your buyer.

Making an Offer and Asking for the Order

It is a mistake to leave it up to the prospect to take action and

when to take it. If you leave it up to your prospect what to do

and when to do it you may never get the order. He will have many

distractions after he puts your offer down. The more time goes by

the less likely he will send an order. So give him a reason why

to take action NOW. You have already told him why he will benefit

by your product.

Your prospect already has decided that he needs what you are

offering because of the great benefits to him. Now, give him a

compelling reason why he should act, now.

Making the Various Pieces of Your Material Fit

Your sales letter, your brochure, etc. must fit. Since you wan t

to do a better job than your competitor and this takes time and

effort, chances are very good that whatever you create is worked

on over a period of time.. The brochure may be created one week

and the sales letter a few days later.. Make sure that it all

fits and complements each other. Stick to your original outline

which should be written down before you ever get started.

Some Final Thoughts

After it is all done give it one more review. Wait a couple of

days and read it again. Then ask these questions: Is it directed

to the prospect or is it about me. Is it of benefit to him? Am I

making my strongest benefit. I think that is dead wrong..

Research indicates that the recipient of a direct mail piece

takes about 8 seconds to decide whether to read on. So, give it

your very best shot right at the start.

You are satisfied it is the best you can create. If you have come

to that point it is important you get someone else confirm that

for you. This should be someone who does not have a material

interest in your offer.

When you create great marketing piece and it gets you the results

which you planned for -- more orders, more revenue and more

profit-- you will feel very good. Getting there is half as

difficult as it may seem. All it takes is a little practice and a

little more practice.....

Wishing you success always

MAIL ORDER ADVERTISING DIRECTORY

1991 EDITION

Published by: Concept Marketing Co.

P.O. Box 7367

Silver Spring, MD 20907

All rights reserved. No part of this book may be reproduced or

transmitted in any form or by any means, electronic or mechanical

including photocopying and recording, or by any information

storage or retrieval system without written permission from the

publisher.

This publication is designed to provide accurate authoritative

information inn regard to the subject matter covered. It is sold

with the understanding that the publisher is not engaged in

rendering legal, accounting or other professional service.. If

legal or other professional assistance is required, the services

of a competent professional person should be sought.

From a declaration of principles jointly adopted by a committee

of the America Bar Association and a committee of publishers.

INTRODUCTION

This directory was designed primarily for the beginning mail

order entrepreneur. There are various Advertising Directories on

the market. Some list a few hundred, some over a thousand

publications. Listing such a vast number of publications is

unnecessary and creates confusion for someone new to the

business. Most of the publications listed are neither suitable

nor do they accept classified ads. Even the smallest display ads

in certain magazines often cost thousands of dollars. Therefore,

we felt strongly that a smaller directory, listing only those

publications which accept classified ads; cater to the mail order

field; and have proven to be successful for many small mail order

companies, was definitely needed.

THE MAIL ORDER ADVERTISING DIRECTORY lists only about 150

publications, We think the best way to get started with your

advertising effort is with small well-placed classified ads in

national, monthly publications. As you gain experience and your

business grows, you should definitely work with display ads as

well. The smallest display ad which is generally available from

mostly national publications is 1 inch in size. It may cost

anywhere from 100% to 300% more than a typical 20 word classified

ad in the same publication.

We also did not list any daily newspapers. Mail order advertising

is generally not cost effective in a "daily" due to the very

short shelf life of one day to 3 days (weekend edition). Weekly,

but especially monthly publications, by contrast, can generate

inquiries for several months. Some of the major daily papers

however, can be effectively utilized to obtain quick test results

for a given offer... Many of the publications listed in our

directory lend themselves very well to information products such

as books, manuals, directories, tapes, etc.

SOME GENERAL COMMENTS AND SUGGESTIONS ABOUT ADVERTISING

Advertising Expense

As a newcomer to the mail order field, you have probably already

learned that besides the cost of the product you sell, your

biggest expense are in three major categories, namely:

Advertising, printing, and postage. It is vital that, right from

the start, you control these expenses carefully.. These major

expense categories make up close to 90% of the budget of an

owner-operated, home-based mail order company.

In a classified ad, you generally pay a per-word rate. A few

publications, as well as daily newspapers, charge a per-line

rate. Many publications have minimum word requirements of about

15 words. Each word used in the ad, including all components of

your company name and address are counted. Since per-word rates

range anywhere from approximately $2 to $15, it is important to

choose your words carefully so you get a maxim number of

inquiries for a minium amount of expense.

The most effective way to evaluate the cost effectiveness of your

ad is on a cost per inquiry basis.. As an example, an ad which

costs $100 and generates 100 inquiries has a per inquiry cost of

$1. Such an ad may therefore, be far "less expensive" than a $10

ad in one of the hundreds of small mail order publications. Such

an ad may cost $10 but if it gets only two or three inquiries the

cost per inquiry is prohibitive.

As a general rule, we recommend not using small mail order

publications or ad sheets. Advertising in these publications is

usually quite inexpensive and, consequently, very tempting.. But

a $10 ad here and there can quickly ad up,, especially if there

are unprofessional appearance and has no news content, only ads,

you should stay away from it. Within the directory, we have

listed about 15 mail order publications from which we have listed

results. These are listed in alphabetical order along with the

other publications and are classified as Mail Order Advertising

Magazines/Tabloids. They are preceded by an * asterisk.

How to Test an Ad

If you are advertising a product for the first time, it is

generally best to place just one ad. After you have evaluated the

effectiveness of the ad, place additional ads. Multiple

insertions do save money, but it is best to wait until you know

what ads, in which publications, work best for you. In a monthly

publication, most inquiries will come in between the second and

fourth week after the ad first appeared. If you are running the

same ad in different publications, be sure to code each ad, such

as by department number.

Choosing the Right Publication and Classification

Choosing the right publication requires some effort on your part.

If you budget allows it, buy a few of those magazines you are

considering advertising in. Review the ad as well as the news and

editorial content.. You want to determine if the readership of a

magazine is the right audience for your offer. In most cases,

your ad will be well placed in a publication which advertises

similar products. Your ad would be especially well placed in

publications which carry repetitive advertising of successful

mail order companies which sell products similar to what you

offer. Choosing the right classification is just as important as

choosing the right publication. Choosing the right classification

can mean 50 even 100 more inquiries. Again, generally, it is best

to place your ad under the same classification as your

competitors do.

Suggestions for an Effective Classified Ad

"get the readers' ATTENTION--quickly." The headline/first

impression is critical. Most publications allow 2-5 BOLD WORDS

free of charge. Use those words well to get your opening message

across.

"Arouse INTEREST as soon as possible" by giving your reader the

important benefits." Waste no time in telling your prospect why

he should buy from you.

"Stimulate DESIRE for your product or service." Tell the reader

how he will benefit.

"Generate ACTION By telling him exactly what you want him to do"

at that specific moment in time, such as: Write for FREE REPORT

today!

Most classified ads are best used to generate inquiries which are

sold not by the initial ad but by the sales literature they will

receive. Mail order advertising pros agree that it is almost

always impossible to sell an item costing more than $3 to $5

directly from a classified ad.

ABOUT LISTINGS ON THE FOLLOWING PAGES

Publications are shown in alphabetical order. Each listing

consists of the following data: name and address of publication,

circulation, frequency, per-word or line rate (some publications

do not have rate information due to an impending rate charge or

unavailable date at time of publication), and category.. Due to

frequent rate changes by most publications, we recommend you

write to the publication requesting a current rate card before

placing an ad.

Publications shown in bold are weekly or monthly national

publications that we believe will give you the best on your

return advertising expenses,

* Publications preceded by an asterisk are major mail order trade

magazines. If you would like a more complete listing of over 100

Mail Order Trade Magazines, order Directory of Mail Order

Publications. $3.00

 

IN CONCLUSION

THe goal of all advertisements is the successful presentation of

the advertiser's message so that he realizes the maximum amount

in sales and profit.. The idea is to create reader interest and

get responses that result in CHECKS and ORDERS.

NOW YOU CAN SAVE MONEY ON ALL YOUR ADVERTISING STARTING RIGHT

NOW! See Resource Guide last page.

50 PLUS, 850 Third Ave.,New York, NY 10022, 350,000 monthly,

Senior Citizens

AMERICAN FIL,,, JFK Center of the Performing Arts, Washington, DC

20566, 130,000 ten times a year, $2.95 per word, Entertainment

AMERICAN HANDGUNNER, 591 Camino de La Reina, Suite 200, San

Diego, CA 92108, 154,000 bi-monthly, $0.54 per word, Outdoor

Living & Sports

AMERICAN HEALTH, 80 FIfth Ave.,New York, NY 10011, 775,000

monthly, $10,40 per word, Health & Fitness

AMERICAN HUNTER THE, 1600 Rhode Island Ave. NW, Washington, DC

20036, 1,500,00 monthly, $4.20 per word, Outdoor Living & Sports

American Legion, The 7-00 N Pennsylvania St.,Indianapolis, IN

46206, 2,500,000 monthly, $12.00 per word, Clubs-Civic &

Fraternal

AMERICAN RIFEMAN, THE, 1600 Rhode Island Ave. NW, Washington, DC

20036, 1.480,000 monthly, $4.20 per word, Outdoor Living & Sports

AMERICAN SHOTGUNNER, THE 100 W. Grove St. #500, Reno, NV 89505,

95,000 monthly, $0.96 per word, Outdoor Living & Sports

AMERICANA, 29 W 38th St.,New York, NY 10018, 390,000 bi-monthly,

$4.75 per word, Home & Shelter

ANTIQUES TRADER WEEKLY, P.O. Box 1050, Dubuque, IA 52001, 70,000

weekly, $0.60 per word.

ANTIQUE WEEK, 27 N. JEfferson, Knightown, IN 46148 36,000 weekly,

$0.50 per word, Antiques and Collectables

ARCHERY, 11812 Wayzata Blvd.,Ste 100, Minneapolis, MN 55343,

125,000 bi-monthly, $1,50 per word, Outdoor Living & Sports

ARMY TIMES MILITARY GROUP, Springfield, VA 22159, 140,000 weekly,

$12.88 per line, Military

B'NA B'RITH INTERNATIONAL JEWISH MONTHLY, 825 U.N. PLaza, New

York, NY 10017, 170,000 monthly, $1.20 per word, Clubs, Civic &

Fraternal

* BEN FRANK'S ALMANAC, Kelly Company, Box 655, Pinellas Park, FL

34664, Mail Order Advertising Magazine/Tabloids

BESTWAYS, P.O. Box 2028, South Sutro Terrace, Carson City, NV

89702, 300,00 monthly, $2.60 per word, Health & Fitness

BETTER LIVING, 1775 Broadway, New York, NY 10019, 800,000

quarterly, Health & Fitness

BILLBOARD, 1515 Broadway, New York, NY 10036, 47,000 weekly,

Music

BLACK ENTERPRISE, 130 FIfth Ave., New York, NY 10011, 240,000

monthly, $6.50 per word, Businesses

BLOOMBURY REVIEW, P.O. Box 8928, Denver, CO 80201, Bi-monthly,

Iformation, Writing & Publishing

BLUMS FARMERS & PLANTERS ALMANACS, 3301 Healty Dr.,SW

Winston-Salem, NC 27103, 295,000, annually, $3 per word. Almanacs

BOATING, CBS Publications, 1515 Broadway, New York, NY 10036,

190,000 monthly, $3.35 per word, Boating/Sailing

BOOKDEALERS WORLD, P.O. Box 2525, La Mesa, CA 92041, 20,000

quarterly, Information, Writing & Publishing

BOWHUNTER, Blue -+ Inc. 3808 S Calhoun St.,Ft Wayne, IN 46807,

111,000 bi monthly, $1.50 per word

BUSINESS IDEAS, Dan Dewman Company, 57 Lakeview Ave.,Clifton, NJ

07011, 4,000 monthly, Businesses

CANADIAN ENTREPRENEUR, 69 Sherbourne St, Ste 525, Toronto,

Ont.,Canada M5A 3X7, 26,000 Monthly, Businesses

CAPPERS WEEKLY, 616 Jefferson St.,Topeka, KS 66607, 400,000

bi-weekly, $1.45 per word, Tabloids

CAR & PARTS, AMos Press, Box 29, Sidney, OH 45365, 122,000

monthly, $0.35 per word, Automotive

CAR AND DRIVER, CBS Publications, 1515 Broadway, New York, NY

10036, 825,000 monthly, $7.20 per word, Automotive

CAR CRAFT Petersion Publishing Co.., 8490 Sunset Blvd.,Los

Angeles, CA 90069, 450,000 monthly, $6.00 per word, Automotive

CIRCUS MAGAZINE, 419 Park Ave.,South, New York, NY 10016, 421,553

monthly, $5.40, Music

COINS, 700 E. State St.,Iola, WI 54990, 70,000 monthly, Crafts &

Hobbies

COLLECTOR'S MART, 15100 W. Kellog, Wichita, KS 67235, 75,000

monthly, $0.48 per word, Antiques and Collectibles

COMPUTER SHOPPER, 407 S. Washington Ave.,Titusville, FL 32780,

100,000 monthly, Computers

COUNTRY MUSIC, 450 Park Ave.,South New York, NY 10016, 350,000

bi-monthly, $6.35 per word, Music

CRAFT ART NEEDLEWORK DIGEST, P.O. Box 584, Lake Forest, IL 60045,

70,000 bi-weeklyy, $0.96 per word, Crafts & Hobbies

CRAFTS 'N THINGS, 14 Main St.,Park Ridge, IL 60068, 290,000 six

times a year, $2.70 per word

CRUISING WORLD, 524 Thames St.,Newport, RI 02840, 115,000

monthly, $2.25 per word, Boating/Sailing

CYCLE, One Park Ave.,New York, NY 10016, 388,000 monthly, $4.00

per word, Motorcycles

CYCLE WORLD, 1499 MOnrovia Ave.,Newport Beach, CA 92663, 305,000

monthly, $3.15 per word, Motorcycles

DIRECTORY OF MONEY MAKING IDEA, Davis Readers Group,, 380

Lexington Ave.,New York, NY 10017, 300,000 annually, Opportunity

& Sales.

DIRT BIKE, 10600 SPulveda Blvd.,Mission Hills, CA 91345, 140,000

monthly, $2.00 per word, Motorcycles

DOLLS, 170 Fifth Ave.,12th Floor, New York, NY 10010, 53,000

bi-monthly, Crafts & Hobbies

DOWN BEAT, 222 W Adams, Chicago, IL 60606, 100,000 monthly, $3.60

per word, Music

DUCKS UNLIMITED, ONe Waterfowl Way, Gilmer Rd.,Long Grove, IL

60047, 63000,000 bi-monthly, $30,00 per line, Outdoor Living &

Sports

ENTREPRENEUR DIGEST, BOx 3224, Oshkosh, WI 54903, Mail Order

Advertising Magazine/Tabloids

ENTREPRENEURS MAGAZINE, P.O. Box 570, Clearwater, FL 34617,

190,000 monthly, $6.95 per word, Opportunity & Sales

EXTRA INCOMEE, P.O. Box 21957, Santa Barbara, CA 93120, 400,00

bi-monthly, $6.50

FAIR TIMES, BOx 455, Arnold, MO 63010, 20,000 monthly,

Opportunity & Sales

* FAMILY TRAVEL LOG, Looney Enterprises, Box 406, Kewanee, IL

61443, Mail Order Advertising Magazine/Tabloids

FIELD AND STREAM, 1515 Broadway, New York, NY 10036, 1,940,000

monthly, $9.40 per word, Outdoor Living & Sports

FINANCIAL OPPORTUNITIES, 3321 W. Dempster St.,Skokie, IL 60076,

250,000 monthly, Opportunity & Sales

FINE WOODWORKING, P.O. Box 355, Newtomnn, CT 06470, 270,000

bi-monthly, $6.90 per word, Crafts & Hobbies

FINS & FEATHERS, (Several magazines),, 318 W Franklin

Ave.,Minneapolis, MN 554404, $3.60 per word, Outdoor Living &

Sports

FISHING WORLD, 51 Atlantic Ave.,Floral Park, NY 11001, 320,000

bi-monthly, $3,00 per word, Outdoor Living & Sports

FLOWER & GARDEN, 4251 Pennsylvania Ave.,Kansas City, MO 64111,

635,000 bi-monthly, $5.00 per word, Gardening

FUR-FISH GAME, 2878 E Main St.,Columbus, OH 43029, 200,000

monthly, $1.20 per word, Outdoor Living & Sports

GLOBE, 2112 S Congress, West Palm Beach, FL 33406, 1,800,000

weekly, $5.60 per word, Tabloids

GRIER'S ALMANAC, Box 888281, Atlanta, GA 30356, 3,000,000

annually, $7.20 per word

GRIT, 208 W 3rd St.,Williamsport, PA 17701, 600,000 weekly, $2.00

per word, Tabloids

GUNS & AMMO, 8490 SUnset Blvd.,Los Angeles, CA 90069, 500,000

monthly, $7.20 per word, Outdoor Living $ Sports

HAM RADIO MAGAZINE, Dept HR, Greenville, NH 03048,, 40,000

monthly, Communications, Electronics, Video

HIGH FIDELITY, 825 7th Ave.,New York, NY 10019, 400,000 monthly,

$2.75 per word, Music

* HI-LITE, Harris House, P.O. Box 351, Bonifay, FL 32425, Mail

Order Advertising Magazine/Tabloids

HOME MECHANIX, 1515 Broadway, New York, NY 10036, 1,485,000

monthly, $7.45 per word, Mechanux & Science

HOME OFFICE COMPUTING, 730 Broadway, New York, NY 10003, $29.00

per line

HOMEOWNER THE, 3 Park Ave.,New York, NY 10016, 650,000 10 times

per year, $3.95 per word, Home & Shelter

HORTICULTURE, 755 Boylston St.,Boston., MA 02116, $3.90 per word,

Gardening

HOT ROD MAGAZINE, Peterson Publishing Company, 8490 Sunset

Blvd.,Los Angels, CA 90069, 850,000 monthly, $10.80, Auto

Racing/Hot Rods

IN BUSINESS, P.O. Box 351, Emmaus, PA 18049, 80,000 bi-monthly,

$2.80 per word, Opportunity & Sales

INC.,38 Commercial Wharf, Boston, MA 550,000 monthly, $11.30 per

word, Businesses

INCOME BUSINESS MAGAZINE, M.C. PUblications 2002 London Rd.,#101,

Duluth, MN 558112, Mail Order Advertising Magazine/Tabloids

INCOME OPPORTUNITIES, 380 Lexington Ave.,New York, NY 10017,

325,000 monthly, $6.95 per word, Opportunity & Sales

ISLANDS, 3886 State St.,Santa Barbara, CA 93105, 110,000

bi-monthly, $5.70 per word, Travel

KIWANIS, 3636 Woodview Terrace, Indianapolis, IN 46268, 280,000

monthly, $3,25 per word, Clubs-Civic & Fraternal

LINN'S STAMP NEWS, 911 Vanmarc Rd.,P.O. Box 29, Sidney, OH 45365,

75,000 weekly, $0.36 per word, Crafts & Hobbies

LOTTERY NEWS & GAMBLING REVIEW, Prize Publications Inc..,517

McCormick Blvd.,London, Ontario, Canada N5W 4C8, 58,000 monthly,

Gambling

LOTTERY PLAYERS MAGAZINE, Box 5013, Cherry Hill, NJ 08034,

225,000 monthly, $1.95 per word, Gambling

*MAIL ORDER PERFORMANCE, JMC P.O. Box 241073, Memphis, TN 38124,

Mail Order Advertising Magazine/Tabloids

* MAIL ORDER SUCCESS, Teague Publishing, Box 191, Dayton, OH

45404, Mail Order Advertising Magazine/Tabloids

* MAIL ORDER PROFITS, P.O. Box 4785, Lincoln, NE 68504, Mail

Order Advertising Magazine/Tabloids

* MAIL ORDER MESSENGER, P.O. Box 640207, Kenner, LA 70064, Mail

Order Advertising Magazine/Tabloids

* MAIL ORDER/MLM MARKETING, P.O. Box 59001 N Reddington Beach, FL

33708, Mail Order Advertising Magazine/Tabloids

MARINE & RECREATION, 27601 Little Mack, St Clair Shores, MI

48081, 65,000 weekly, $3.30 per line, Boating/Sailing

MCCALLS, 230 Park Ave.,New York, NY 10169, 6,100,000 monthly,

$5.50 per word. Women's Magazines

MIND YOUR OWN BUSINESS AT HOME, 14850 N LIncoln Ave.,Box 60,

Chicago, IL 60614, Bi-monthly, Businesses

MONEY MAKING OPPORTUNITIES, 11071 Ventura Blvd.,Studio City, CA

91604, 220,000 8 times a year, $3.30 per word, Opportunity &

Sales

MONEYWORTH, 251 W 57th St.,New York, NY 10019, 550,000 quarterly,

Businesses

MOTHER EARTH NEWS, THE, Box 70, Hendersonville, NC 28793, 885,000

bi-monthly, $5.65 per word, New Age Metaphysical

MOTOR BOAT & SAILING, 224 W. 57th St.,New York, NY 10019, 142,000

monthly, $2.60 per word

MOTOR TREND, Peterson Publishing Co.,8490 Sunset Blvd.,Los

Angeles, CA 90069, 760,000 monthly, $5.00 per word, Automotives

MS, 119 W. 40th St.,New York, NY 10018, 430,00 monthly, Women's

Magazines

MUSCLE CARS, CSK Publishing Co.,Inc.,29 Grove St.,South

Hackensack, NJ 07606, 40,000 quarterly, $0.42 per word.

Automotive

MUSIC CITY NEWS, 50 Music Square West, Suite 601, Nashville, TN

37302, 115,000 monthly, $0.65 per word, Music

NATIONAL ENQUIRIER, Latana, FL 33464, 4,500,000 weekly, $7.25 per

word, Tabloids

NATIONAL EXAMINER, 2112 S Congress, West Palm Beach, FL 1,050,000

weekly,, $4.70 per word, Tabloids

NATIONAL MAIL ORDER SHOPPER, THE, P.O. Box 5, Sarasota, FL 33578,

Tabloids

* NATIONAL MARKETPLACE, Drawer 19689, Houston, TX 77224, Mail

Order Advertising Magazine/Tabloids

NEW AGE, 342 Western Ave.,Brighton, MA 02135,, 75,000 monthly,

$3.60 per word, New Age Metaphysical

NEW BUSINESS OPPORTUNITIES, P.O. BOx 570, Clearwater, FL 34617,

200,000 monthly, $4.60 per word

NEW WOMAN, 215 Lexington Ave.,New York, NY 10016, 1,200,000

monthly, Women's Magazines

NIAGARA PROMOTIONS, P.O. Box 748, Lewiston, NY 14092, Mail Order

Advertising Magazine/Tabloids

NUMISMATIC NEWS,, IOla, WI 54990, 47,000 weekly, Crafts & Hobbies

OLD FARMERS ALMANAC, THE, Dublin, NH 03444, 3,540,00 annually,

$8.50 per word, Almanacs

OPPORTUNITY/INCOME PLUS, 73 Spring St.,Ste 303, New York, NY

10012, 180,000 monthly, $5.60 per word

OUTDOOR LIFE, 380 Madison Ave.,New York, NY 10017, 1,470,000

monthly, $8.40 per word, Outdoor Living & Sports

PC, One Park Ave.,New York, NY 10016, 230,000 bi-weekly,

Computers

PC WORLD, PC World Communications, Inc.. 565 Dettaro St.,San

Francisco, CA 94107, 538,000 monthly.

PERSONAL SELLING POWER, Gerhard Gschwandtner Associates, 1127

International Parkway, Fredericksburg, VA 22405, 75,000, 8 times

a year, Opportunity & Sales

POPULAR CERAMICS, 3639 San Fernando Rd.,Glendale, CA 91204,

43,000 monthly, Crafts & Hobbies

POPULAR MECHANICS, 224 W 57th St.,New York, NY 10019, 1,666,000

monthly, $8.65 per word, Mechanics & Science

POPULAR WOODWORKER, 1300 Galaxy Way, Concord, CA 94520,

Bi-monthly, Mechanix & Science

PUBLISHERS WEEKLY, 205 E 42nd St.,New York, NY 10017, 39,000

weekly, Information, Writing & Publishing

RAILROAD MODEL CRAFTSMAN, P.O. Box 700, Fredon-Springdale

Rd.,Newton, NJ 07860,, 85,000 monthly, $0.56 per word, Crafts &

Hobbies

RIDER, 29901 Agoura Rd., Agoura, CA 91301, 137,000 monthly,

$25.00 per line, Motorcycles

ROAD AND TRACK, BOnd Publishing Co., 1499 Monrovia Ave.,Newport

Beach, CA 92663, 730,000 monthly, $7.00 per word, Automotive

ROLLING STONE, 745 FIfth Ave.,New York, NY 10151. 940,000, 24

times a year, $15.35 per word, Music

ROTARIAN, THE, 1600 RIdge Ave.,Evanston, IL 60201, 488,000

monthly, $4.20 per word, Clubs-Civic & Fraternal

RUNNER'S WORLD,, 33 E. MIner St.,Emmaus, PA 18099, 300,000

monthly, $6.15 per word, Running

SELLING DIRECT, Communication Channels, Inc.,6255 Barfield

Rd.,Atlanta, GA 30328, monthly, Opportunity & Sales

SHOOTING TIMES, P.O. Box 1790,, Peoria, IL 61656, 190,000

monthly, $1.14 per word, Outdoor Living & Sports

SKI, 380 Madison Ave.,New York, NY 10017, 400,000 8 times per

year, $5.50 per word, Skiing

SKI AMERICA, P.O. Box 1140, Pittsfield, MA 02201, 350,000 4 times

per year, $2.75 per word, Skiing

SKIING, ONe Park Ave.,New York, NY 10016, 437,000 7 times per

year, $6.50 per word, Skiing

SMALL PRESS, 520 Riverside Ave.,Westport, CT 06880, 7,500

bi-monthly, Information, Writing & Publishing

SNOWMOBILE, 11812 Wayzata Blvd.,Syute 101, Minnetonka, MN 55343,

400,000 4 times a year, $9.55 per word, Snpwmobiling

SOLIDER OF FORTUNE, P.O. Box 693, Boulder, CO 80306, 200,000

monthly, $2.40 per word, Mens Magazine

SOUTHERN LIVING, 820 Shades Creek Parkway, Birmingham, AL 35209,

2,212,000 monthly, $13.56 per word, Home & Shelter

SOUTHERN OUTDOORS, P.O. Box 17915, Montgomery, AL 36141, 200,000,

9 times per year, $4.50 per word, Outdoor Living & Sports

SPARE TIME, 5810 W Oklahoma Ave.,Milwaukee, WI 53219, 300,000, 9

times per year, $4.50 per word, Opportunity & Sales

SPORTS AFIELD, 250 W 55th St.,New York, NY 10019, 495,000

monthly, $3.65 per word, Outdoor Living & Sports

STAR, THE, 660 White Plains Rd.,Tarrytown, NY 10591, 3,600,000

weekly, $7.45 per word. Tabloids

STEREO REVIEW, 1515 Broadway, New York, NY 10036, 575,000

monthly, $7,10 per word, Music

SUCCESS, P.O. Box 570, Clearwater, FL 34617, 330,000 monthly,,

$7.90, Opportunity & Sales

SUCCESSFUL OPPORTUNITIES, 6150 MIssion Gorge Rd.,Ste 225, San

Diego, CA 92120,, 200,000 monthly, Opportunity & Sales

TIMELY TIPS, 721 N Williams S St.,Box 68, Paulding, OH 45879,

16,000 monthly, Opportunity & Sales

TOTAL FITNESS, 15115 S 76 East Ave.,Bixby, OK 74008, 128,000

bi-monthly, Health & Fitness

TOWERS CLUB USA, 1027 N 7th St.,Milwaukee, WI 53233, 78,000

monthly, Crafts & Hobbies

TREASURE HUNTERS NEWS, P.O. BOx 448, Fremoent, NE 68025, 25,000

bi-monthly, Mens Magazines

TURF FLASH, 511 Oakland Ave.,Baltimore, MD 21212, 15,000 weekly,

Gambling

U.S. PRODUCTS AND OPPORTUNITY, P.O. Box 191, Houston, Pa 15352,

Mail Order Advertising Magazine/Tabloids

VEGETARIAN TIMES,, 141 S. Oak Park Ave.,Oak Park, IL 60303,

57,000 monthly, $2.28 per word, Health & Fitness

VENTURE, 521 Fifth Ave.,New York, NY 10175, 310,000 monthly,

$7.50 per word, Businesses

 

VFW MAGAZINE, 9 East 41st St.,New York, NY 10017, 1,770,000

monthly, $7.95 per word, Clubs-Civic & Fraternal

VIDEO, 460 W. 34th St.,New York, NY 10001, 305,000 monthly, $5.00

per word, Communications, Electronics, Video

WEALTH SECRETS, 6150 MIssion Gorge Rd.,Ste 225, San Diego, CA

92120, 150,000 10 x per year, $3.50 per word

WHOLE LIFE TIMES, 18 Shepard St.,Brighton, MA 02135, 30,000 8

times per year, $3.50 per word, New Age Metaphysical

WINNERS, 15115 S 7th Ave.,Bixby, OK 74008, Monthly, $2.50,

Opportunity & Sales

WORKBENCH, 4251 Pennsylvania Ave.,Kansas City, MO 64111, 890,000

bi-monthly, $5.90, Mechanix, Science

WRITER, THE,, BOx 892,, Boston, MA 02117, 55,000 monthly,

Information, Writing & Publishing

WRITERS DIGEST, 1507 Dana Ave.,Cincinnati, OH 45207, 180,000

monthly, $3.95 per word, Information, Writing & Publishing

YACHTING, CBS Publications, 1515 Broadwayt, New York, NY 10036,

150,000 monthly, $3.30 per word, Boating & Saling

CLASSIFIEDS, 100 East Ohio St.,Chicago, IL 60611, Telephone

312-337-3090

NATIONAL MAIL ORDER CLASSIFIED, P.O. Box 5, Sarsota, FL 34230,

Telephone 813-366-3003

The above two companies represent hundreds of publications. You

place ads through them at no additional cost. They also offer

various combination packages (one ad appearing in several

publications). Write to them or call and request free media

package.

American Passage Media Corporation, 215 West Harrison, Seattle,

WA 98119--206-282-8111 or 800-PASSAGE

if you have an offer that you think will appeal to college

students or military personnel call American Passage and request

their "College Newspaper Directory and Rate Book" and or "The

Military Newspaper Directory and Rate Book". Directories are

free.

MAIL ORDER BOOKKEEPING BASICS

by: Peter Schruender

Copyright 1990

Mascor Publishing

P.O. Box 8308

Silver Spring, MD 20910

INTRODUCTION

This information is provided for individuals who are starting a

mail order business and require a basic bookkeeping system. It

has been written for someone who has little or no bookkeeping

background. No income tax or professional advice is rendered.

Such advice should be obtained from a CPA or an Attorney.

The operation for any business requires a basic system to keep

track of income expenses. There are two good reasons to keep good

records.

1. It is the law. The IRS, State Income Tax Division and State

Sales Tax Division (where applicable) requires you to keep

complete and accurate records.

2. Keeping good records is good business. It helps you to

understand your business better. It will let you know at all

times how your business is doing -- how much money you are making

or losing. In addition it enables you to analyze expenses and

revenues. You can see how seasonal and other trends develop.. All

of this will he;p you to make sound business decisions.

BUSINESS CHECKING ACCOUNT

It is best to set-up a separate business checking account with

your bank for your business. This account should be used only for

deposit of business related income and payment of business

expenses. In this way you a maintain a distinction between

business and personal expenses.

STATE SALES TAX

You are required by law in most states to collect the

appropriate State Sales Tax. This only applies for sales within

your state. Out of state purchasers are not charged a sales tax.

Only the end-user pays sales tax. If you should be selling to a

dealer he can provide you with a sales tax exemption

certificate.. In this case he is not required to pay the sales

tax to you since he will be collecting if from his customers.

STATE USE TAX

THe Use tax generally applies when a company buys supplies or

equipment for its own use from an out of state business. It does

not apply when material or merchandise are bought from an out of

state company which will be re-sold. The use tax rate is the same

as the sales tax rate.

For specific information on regulations in your state call the

nearest State Sales Tax Division in your area.

ACQUISITION OF EQUIPMENT

When acquiring office machines, such as typewriters, computers,

copiers, furniture, etc. such expenditures are generally

depreciated on your tax return over a period of time.. For

specific information check with a qualified tax advisor.

EXPENSES RELATED TO A HOME OPERATED BUSINESS

If a business is operated from home in many instances a portion

of rental, mortgage or other expense may be deductible when

filing your income tax.. The same may apply to utility expenses.

There are specific laws pertaining to this, and again you should

get professional advice.

EXPLANATION OF FORMS

We have provided you with several forms. You can use them as they

are or change them to fit your particular needs.

1. DETAIL OF MONTHLY EXPENDITURE FORM

In the left hand column you keep track of expenditures for

merchandise and products that you resell to your customers. The

accounting term is generally cost of goods or product, or cost of

sales.. If you sell books by mail you would record your purchases

for these goods (including drop shipments) in this column.

The right hand column should be used to record all other

expenditures. You obtain this information from your business

checking account. If you pay for business expenses by cash keep

track of theses expenditures separately and enter into this

column also.. If you also use one or more credit cards to pay for

business expenses list these expenses here too.. It is best to

designate a specific credit card to be used for business expenses

only.. Do not intermingle personal charges. In this case you may

be able to deduct the interest on your taxes.

2. INCOME AND EXPENDITURE FORM

Record your daily income in the left hand column. Since you may

not have income on a daily basis in the beginning stages of your

business you can record income less frequently, such as weekly or

even monthly.

You may wish to keep a separate income journal. The purpose of

such a journal would be to give you a more detailed breakdown of

your revenue. Set it up in any way you feel it will best suit

your needs. For example you may want to record new business

separately from repeat business. If you sell dealerships and

books, for example, you may want to record the revenue from

dealerships separately from the revenue for books, etc.

In fact the right column of this form you can keep track of your

expenditures by category. Again you can change the categories to

suit your particular needs.

When you deduct your expenses from your receipts at the end of

the month you will have an income or loss figure for your

business

PROFIT & LOSS STATEMENT FORM

Here you show you monthly revenue, expenses and profit loss.

There are no requirements for you to do this on a monthly basis..

Especially in the beginning stages of your new business, you may

want to generate a Profit & Loss Statement on a quarterly basis,

semi-annual or even annual basis.

SUMMARY

The above information and forms will give you a basic system.

Tailor it to fit your own situation. You may want something more

elaborate or less detailed. Or you may not even put all your

business accounting on your P.C.. If you are considering to

acquire a software program to help you with your accounting I

would strongly suggest you wait until you understand your

business well. Also accounting software can be difficult to use

for an individual without accounting background. A personal

money management software system will generally be quite adequate

for most small businesses.

Don't get overwhelmed by record keeping for you new business

especially if this is something new for you. Governmental

agencies do not require you to keep your books in a particular

way but do require you keep good records. This also means that

records must be substantial. Again your accountant can give you

detailed information on existing requirements.

While the big task of any new business is developing sales and

acquiring customers, good record keeping is generally found in

successful business operations. Your records provide you with

accurate present and past information that you as the owner and

president of your company must use constantly analyze your

business so you will maximize profits.

PROFIT & LOSS STATEMENT

MONTH:_____________ YEAR TO

DATE________

INCOME

Gross Sales: _____________

______________

Less Returns: ______________

_______________

Less Bad Debt: ______________

_______________

 

Expenses

Mdse. -Materials _______________

_______________

Accounting _______________

_______________

Advertising _______________

_______________

Auto Expense _______________

_______________

Cred, Crd Comm _______________

_______________

Freight & Exp _______________

_______________

Graphic Design _______________

_______________

Insurance _______________

_______________

Interest _______________

_______________

Licenses _______________

_______________

Mailing Services _______________

_______________

Misc Expenses _______________

_______________

Office Expenses _______________

_______________

Office Machine _______________

_______________

Postage _______________

_______________

Printing _______________

_______________

Professional Fees _______________

_______________

Rent Allocation ________________

________________

Support Services ________________

________________

Telephone ________________

________________

Trav/Entrtnmnt ________________

________________

Util Allocation ________________

__________________

TOTAL EXPENSES _________________

__________________

INCOME BEFORE

CAPITAL EXPENSE

AND INCOME TAX: _________________

___________________

MONTH OF

TOTAL RECEIPTS FROM BUSINESS

AY_____________________|______________ |AMOUNT____|_______

1.______________________|____|____|______|__________|_______

2_______________________| ___|____|______|__________|_______

CONTINUE UNTIL END OF MONTH

TOTAL THIS MONTH

TOTAL UP TO THIS MONTH

TOTAL TO DATE

 

19

EXPENDITURES

ACCOUNT TOTAL THIS MONTH TOTAL UP TO

TOTAL

TO DATE

DEDUCTIBLE

MDSE.MATEIALS______________________________________________ACCOUN

T

ING________________________________________________

ADVERTISING________________________________________________

AUTO EXPENSE_______________________________________________

CREDIT CRD COMM____________________________________________

FERIGHT & EXP_______________________________________________

GRAPHIC DESIGNS____________________________________________

INSURANCE_________________________________________________

INTEREST___________________________________________________

LICENSES___________________________________________________

MAILING SERVICES____________________________________________

MISC EXP___________________________________________________

OFFICE EXP__________________________________________________

OFFICE MACHINES_____________________________________________

POSTAGE___________________________________________________

PRINTING___________________________________________________PROF

FESS__________________________________________________

RENT ALLOC_________________________________________________

SUPPORT SER._______________________________________________

TELEPHONE__________________________________________________

TRAVEL ENTERTNMNT________________________________________

UTILITIES ALLOC_____________________________________________

TOTAL_____________________________________________________

 

MEMO

 

DETAIL OF MONTHLY EXPENDITURES

MDSE. AND MATERIALS

PAID BY CASH AND CHECK| |OTHER

ESPENDITURES

DAY| TO WHOM PAID| CK NO| AMOUNT| |DAY| TO WHO PAID| CK

NO| AMOUNT

 

 

CONTROLLING MAIL ORDER'S KEY EXPENSES

By

Peter Schruender

Copyright 1990

Mascor Publishing

P.O. BOx 8308

Silver Spring, MD 20907

At this time you may be starting a mail order business maybe you

started a business some time ago... In either case this

information is designed to make you aware of the critical expense

categories of our business

Business entrepreneurs generally channel most of their energies

into building a customer base. We all know that without

customers there will be noting else to worry about.. At the same

time it is important to be very cost conscious right from the

start. The mail order business requires very cost conscious

management.

A mature mail order business has 6 major expense categories which

will make up about 85% to 90% of its total monthly cash outlay:

Cost of product

Advertising

Postage

Printing

Labor

Rent

The new mail order enterprise will however not be concerned with

either labor cost or rent for office or warehouse space. Those

expenses will come later as your business grows, However, the

other 4 expense categories are critical from the start.

1. Cost of Product

These are the items you buy from your suppliers for resale to

your customers. In the first two years of operation your cost of

product will be higher than later when you can buy in larger

quantities at better prices and when you have a good

understanding of what sells. At the start it is important to know

that your cost of product should be kept at below 35%. That does

not have to work out for each product but it should represent an

average for all goods. You may for example elect to have some

sales leaders which have minimal mark-ups but you feel that they

will generate additional sales. Your mark-up may be as little as

10%. On the other hand, you will have items that have mark-ups of

10 or even 20 to 1.

In establishing your pricing you must be aware what your

competition charges. It is best to be in line or slightly below

your competition. Or you may choose to charge more than your

competition because you give more or better service.. Do not

succumb to greed. Newcomers to the mail order business sometimes

commit this folly. Since volume of sales is ultimately more

important than profit per item careful pricing is important.. If

the cost of a book you are selling for $15.00 is $4 you may be

better of to lower the selling price to $12.00 and increase your

sales. As you know - since you are one of them - the American

consumer is very sophisticated. Suckers are in very rare supply.

The dropship method is the only way to go for a beginner. This

way you do not have to tie up any start-up capital for inventory.

You want to be sure you are dealing with a reliable company and

therefore price will not be your only consideration. Make sure as

possible that your supplier is as responsive to a $4 order as to

a $100 order. As soon as your volume increases start shipping and

you will be in a position to enclose your promotional material.

2. Advertising

This is a major expense for a new mail order company and in the

early months of building your business it may be your highest

expense. Essentially in our business there are only two ways to

find new customers via advertising or via direct mail.. Al;though

many newcomers have a fascination with mailing lists they will

soon learn that adverting is more effective and less expensive.

Here is a hypothetical cost comparison for both approaches:

Direct Mail - 1000 pieces

Mailing list

$40.00

Postage (bulk rate @ 0.16.7) 167.00

1000 #10 envelopes 55.00

1000 return envelopes 50.00

Promotional material (est) 120.00

Total excluding labor 432.00

Cost per unit

$0.43

Response 1.5% == 15 orders

X avg sale $25.00

375.00

Cost of product 35% 130.00

Net

245.00

Loss for above mailing is <187.00>

Although the above is hypothetical, it must be understood that

returns of higher than 1.5% are rare when using someone else's

list. When using your own list, they may be substantially higher.

Therefore direct mail campaigns rarely work unless the average

order is in excess of $45.00 or you profit per order is about

500%. Before you undertake a mailing you owe it to your

pocketbook to calculate your expected return. Your aim should be

to break even at a 1% rate. Our mailings are geared to break even

at 0.7%.

Advertising - 1 classified ad - 1 publication

Cost of classified

$120.00

Agency discount 15%

 

- 18.00

Net cost

102.00

Est # of inquiries -150- (1)

150 #10 envelopes

7.50

150 return envelopes

7.00

150 promotional pieces

18.00

Postage First Class @ 0.25

37.50

Total excluding labor

172.00

Cost per unit

1.14

Est response 8% = 12 orders

X avg sale $25.00 (2)

300.00

Cost of product 35%

-150.00

Net

195.00

Profit

23.00

1. Response for a well written classified ad in a monthly

publication may vary between 60 to 250 depending on the

publication and the season.

2. The national average for conversion from inquirer to buyer is

between a low of 5% and a high of 12% depending on price and

other factors.

In the advertising scenario, you have a good chance to make a

little money right from the start. Many mail order companies are

satisfied to break even. The initial effort in responding to the

inquirer of your classified is only the start. Over the next 12

months you should be sending at least 3 more mailings to those

inquirers who did not buy the first time.. And you should mail to

your buyers abut every 6 weeks to 3 months until they have not

bought from you for about one year. Now if you had a crystal ball

or a very sophisticated way of tracking the progress of each of

the above initial 150 inquiries of your classified ad and could

take another look at the results a year later, you would most

likely be very pleasantly surprised since the $23 has now grown

to several hundred dollars.

The greatest assets of a mail order company are its mailing

lists. In the beginning you will have zero names, a few months

alter you may have a couple thousand, a year later 10,000 and

gets out on a daily basis, the more orders will come in. The more

mail are several important ways you will save money in your

advertising:

1. Select well known monthly publications which are ready by

individuals interested in what you have to sell. Monthly

publications will generate inquirers over many months since they

are kept on hand and read by different people. Bi-monthly or

weekly publications may be acceptable also. Stay away from Daily

Newspapers. They have a shelf-life of a day or less. They should

only be used for testing... And above all stay away from

"cheapies" like ad sheets, shoppers papers, etc.

2. When evaluating the cost effectiveness of an ad it is not the

cost of the ad that counts but the number of inquiries it

generates. A very inexpensive $15 ad which generates 3 inquiries,

$5 per inquiry, is terribly expensive compared to a $150 ad which

generates 200 inquiries, 0.75 per inquiry.

3. To test an ad one insertion is enough. The results will either

be very good in which case you should buy 3 insertions the next

time for a saving of about 10%, or the results will be average in

which case you may want to run another test, or they will be poor

which may be caused by any of the following reasons: Wrong

publication, wrong heading, or ad, reader not interested in the

particular offer.

4. Keep the cost per inquiry below $1.00

5. Write a tight ad. Each word including your address is counted.

6. By all means, set up your own In-House Advertising Agency. It

is easy to do and will save you 1% right from the start.

3. Postage

Postage is a big expense for any mail order firm.. This cost

covers three areas: Responding to initial inquiries, cost of

shipping orders to customers (this will include carriers such as

UPS) and the cost of repeat mailings to customers and previous

inquiries.

The first category of responding to initial inquiries is most

often handled via First Class Mail. If the cost of mailing a

single piece exceeds 65 cents strong consideration to use Third

Class Bulk Mail should be given. This is especially true if

catalogs are mailed to prospective customers.

Repeat mailings to previous buyers and inquirers as well as

mailings to a rented list should always be sent via Third Class

Bulk Mail. The exception to this may be when mailing a piece

which weights 1 oz or less. The cost for First Class postage is

25 cents compared to 16.7 cents via Third Class Bulk Mail.

 

 

Following is a broad overview of the usage of bulk mail. Your

local POst Office will give you specific information. The major

advantage of using bulk mail is the considerable savings. The

major disadvantages are the time it takes for a piece to reach

its destination and the reliability of delivery. Recent surveys

have indicated that a sizeable percentage of bulk mail never

reaches its destination. This appears to be especially prevalent

with light weight pieces such as #10 envelopes.

Basic requirements to utilize the bulk mail rate are that a bulk

mail permit has to be obtained. The annual cost is $60.. Anyone

can obtain this permit.. Secondly, each mailing must have a

minimum of 200 pieces and it must be sorted by zip code according

to Post Office regulations.

The rate for the first 3.37 oz is 16.7 cents. Weights in excess

of that weight are calculated by the combined use of a per pound

and per piece rate. Each piece in a mailing must have the

identical weight.

If as an example your piece weights 3 plus ounces your rate to

send it via First Class mail is 85 cents. This compares with 16.7

cents for bulk mail... If you were to send 1000 piece per month,

First Class cost would be $850.00 versus $167.00 for Bulk rate.

This is a very sizeable difference. Even if you lost a few

potential customers, it would most likely still more profitable

for you to use bulk mail.

Bulk mail will generally reach its destination in a radius of

about 500 miles in about 7-10 days, 500-1500 miles, 10-15 days,

over 1500 miles 15 to 25 days. Some mail order companies will use

a combination of bulk and first class. They may use bulk mail for

destinations of less than 1500 miles and first class for greater

distances.

If you can not generate at least 200 pieces per week you may want

to consider to combine the responding to new inquiries with

remaining the same piece to a previous inquiry.

The cost of getting the product to your customer is also quite

expensive and needs to be carefully managed.. If you are

utilizing the dropship services of a supplier you will not have

any control over this expense.. It is advisable that you ship at

least some of the orders yourself as soon as your volume makes

this feasible.

The Post Office has given shippers of books and certain other

bound written material a special rate category which makes

substantial savings possible. Special 4th class mail costs 95

cents for the first ounce and 35 cents for each additional ounce.

Unless your customer pays you extra for first class or UPS

service, this class of mail should be utilized. It will take a

little longer in reaching its destination, but the savings are

quite substantial.

UPS rates are generally less expensive in distances of up to

about 1100 miles when compared with first class rates. Since UPS

charges a basic weekly pick-up rate of $5.00 you may want to

utilize the services of an outside company until your volume is

large enough to justify daily UPS pick-up.

4. Printing

Printing is another major expense and, unlike postage, a certain

percentage of your printing cost may be for material that will

become obsolete before the supply is exhausted. This is

especially true for beginning mail order operations. You may

decide to discontinue promoting an item and find yourself stuck

with several thousand useless circulars.

For the above reason it is wise in the beginning stages of your

new business to print in small quantities until you know exactly

what sells and how it should be promoted.. You may wish to make

exceptions for certain items such as envelopes which have

continued usage. Printing in small quantities will cost more per

piece but it is better than throwing money into a trash can.

As your volume increases and you see fit to have larger volumes

of given pieces printed, be very careful in selecting your

printer.. In addition to price you will, of course, also be

concerned with quality and service. Some printers will provide

additional free services with a print job, such as typesetting..

Always obtain several bids when doing larger jobs.. For example,

at this time (summer 1990) 1000 11 x 17 pieces (this is a 2 page

foldover) imprinted on both sides will cost $130.00 in the

Washington, DC area. The very same piece can be done by a printer

in a medium size midwestern city for a little as 435.00. This

represents a difference of over 8 cents per single piece.

If you are doing business in one of the many high cost areas of

the country or in Canada, by all means consider doing business

with out of town printers. You will see many ads in mail order

publications.. Some of the best prices can be found in some

midwestern and southern states. Lower labor and operating costs

make these prices possible. Before giving a larger job to an out

of town printer test his quality with a small job.

The cost of creating camera ready art work through professional

graphic designers is substantial. It is strongly recommended that

you utilize the free art work supplied by many suppliers until

you are large enough to absorb this substantial expense or are

able to produce it yourself through a desktop publishing software

program.

Learning how to think on a per unit basis is real important in

our business. The cost of printing, mailing and other costs are

generally quoted and calculated for 100 pieces.. But to evaluate

the cost effectiveness of mailing or advertising, etc get used to

thinking in the per unit mode.

An acquaintance of ours who recently did mailing of 32,000 pieces

was able to make a small profit on his mailing which was of

limited success by making tow changes: 1. He utilized an order

form which was built into the piece rather than a separate order

form -- saving 2.7 cents. 2. He used a #66 3/4 business return

envelope instead of a #9 envelope -- saving 0.4 cents. The saving

was 3.1 cents per piece or $992.00 for the entire mailing.

GETTING STARTED IN THE MAIL ORDER BUSINESS - HOW MUCH DOES IT

REALLY COST?

by:

Robert Drake

Copyright 1994

Mascor Publishing

Published 1994

by

MASCOR PUBLISHING CO.

Silver Spring, Maryland

INTRODUCTION

This report was written as a service to those individuals who are

considering to get started in the mail order business. To get any

business started successfully takes many ingredients. However all

requirements, more or less, fall into one of the following four

key categories: 1. Desire, 2. Knowledge, 3. Time, and 4.

Available funds

This report deals only with the financial requirements of

starting a mail order business. Hopefully it will help the reader

to evaluate whether he is financially able to embark upon a

business venture that will bring about success. It is generally

true that it takes substantially less money to get started in

many mail order businesses than in a variety of other businesses.

Many a promoter will want you to belive that it is possible to

get started successfully for $50, $100, or even $200. However, it

is totally false. It does take more than that. How much more

depends on many factors which I will try to define as much as is

possible here.

Since the mail order business covers a vast number of services

and products I would like to define the contents of this report

to deal with the selling of information products. This is where

my expertise lies. While the same or similar conditions may apply

to any number of other mail order businesses, there may however

be some differences to selling information products such as

books, etc.

The following makes a number of assumptions. The most important

ones are:

1. The operator ( or operators) of the new mail order business is

employed or has other means of income.. He will not need to

derive any profit from his new business for a period of time..

How long will depend on many factors.

2. This is a home based business which has no employees.

3. The business, at the start - until volume reaches $3,000 to

$5,000 per month - will utilize the drop shipping services of a

wholesale company.

4. Basic office equipment such as desk, file cabinet, typewriter

or computer, etc... are on hand.

A WORD OF CAUTION AT THE START AND RESOURCE AVAILABLE TO YOU

THis is an exciting business and it can b extremely profitable

once it reaches a certain momentum. However, like almost all

businesses it is a very cost sensitive business. For a detailed

analysis of the key mail order expenses and their impact on your

business refer to my special report:

CONTROLLING YOU MAIL ORDER EXPENSES

A thorough discussion of mail order's 4 key expense areas -

Product - Postage -Advertising - Printing

Order #4118-------------------------------------------------$5.00

As you are getting started in planning and setting up your new

business which in my experience is one of the most enjoyable and

satisfying experiences of a lifetime think and act with caution

when it pertains to any expenditures. This is one of the most

difficult things to do since you are probably very enthusiastic

and want to do everything today. So you need to learn HOW TO

CONTROL YOUR ENTHUSIASM or it is going to cost you lost of extra

money.

In this state of enthusiasm we tend to think that there is

nothing we can do wrong and since we will be making lots of money

in a few months lets get all necessary and often unnecessary

supplies and equipment.. It would be much better to wait until

profits of the business make it possible to acquire what is

needed. In the meantime you can make do with less. To be able to

do so is a most important quality for the owner of a small to do

so is a most important quality for the owner of a small business.

If you are a parent think of your new business as a child. There

will be a never ending sequence of surprises. And as the business

grows so will its demands, and yes its expenses.

START-UP EXPENSES -- INITIAL STAGE

The below listed expenses will be incurred in the very early

stages of setting up your business. This is at a time when you

probably are not sure as yet what you will be selling.. You will

be writing to different companies for information to come up with

the right product selection. Once you have decided what it is you

will be selling you have to line up reliable suppliers, This is

also a good time to buy a few books t help you with your mail

order education. Although most expenses incurred in this phase

are relatively small they will add up quickly.

Stationery and

envelopes.........................................50.00

P.O. Box

rental...........................................................

.

...60.00 per year

Miscellaneous office supplies...............................30.00

Postage..........................................................

.

..................50.00

Educational......................................................

.

...............45.00

TOTAL............................................................

.

..................235.00

START-UP EXPENSES -- SECONDARY STAGE

You have now reached the point at which you have decided upon one

or more reliable suppliers for the product you wish to market..

You may also be ready to have some promotional material printed.

In addition you may be placing one or two classified ads for

testing purposes.

Dealership or distributorship (1 or

more)........................................80.00

Small supply of brochures or

catalogs...............................................50.00

Printing of sales letter, order form, Return envelopes,

etc.....90.00

1 test ad, classified (national

magazine)........................................100.00

Business or traders

license..........................................................

.

............30.00

Postage..........................................................

.

.....................................................25.00

TOTAL............................................................

.

.....................................................375.00

Until now you have only had expenses for your new business. You

have not derived any revenue yet. In the next and final stage of

starting your business you may have some revenues. Stage one and

two may take from approximately 3 to 6 months.

START-UP EXPENSES -- THIRD STAGE

You have now reached a stage were you will expand your

advertising, or alternately you may go the direct marketing route

and rent a mailing list. The comparison of expenses and revenue

results of a direct marketing effort versus classified

advertising need to be carefully evaluated. Refer to my special

report:

#4118 How To Control Your Mail Order Expenses

This report compares the actual expenses of a specific mailing

against an advertising effort.

Since expenses for a direct marketing effort are generally higher

than for a small advertising campaign, the below listed expenses

focus on an advertising campaign,

Advertising -- 3 classified

ads..............................................................

.

.280.00

Postage for several hundred inquiries derived

from adverting

effort...........................................................

.

...........................75.00

Miscellaneous office

supplies.........................................................

.

.............30.00

TOTAL............................................................

.

........................................................385.00

ANOTHER IMPORTANT RESOURCE AVAILABLE TO

YOU.....................................

If you are planning to advertise on an ongoing basis you need my

special report on

HOW TO SET-UP YOUR OWN IN-HOUSE ADVERTISING COMPANY

#4113............................................................

.

.....................................................$6.00

It shows you how to save 15% on all your adverting expenses from

day one by setting up your own agency.. Every mail order pro does

it. Its easy to accomplish. Necessary sample advertising

insertion order forms are part of the package as well as a

special bonus

List of Top 50 Mail Order Publications for Classified Ads

SUMMARY

The combined expenses as listed above total just under $1000.

They are based on broad estimates and may vary somewhat by area

of the country and individual circumstances. The figures are

reflecting a minimum amount.. I have no question that some

individuals may be able to cut expenses further. Since this

planning period takes several months the expenses as shown above

can be allocated over a period of 4-6 months.

The above figures represent a conservative start. For those who

want to get started more aggressively expenses would be higher..

While many of the basic start-up costs would be the same the

expenses that would increase would primarily deal with additional

advertising, printing and postage expenses. By how much would

largely be an individual decision.

Since most new businesses fail because of lack of funds, it would

be advisable for an individual who does not have the necessary

funds to get started to wait until he does. In addition to the

basic start-up expenses an individual should also consider that

most businesses will loose money for several months and sometimes

much longer than that. Unfortunately no matter how well you plan,

circumstances often change and we must make allowances for those

eventualities.

POSTAL SAVINGS GUIDE

Published 1990 by

Mascor Publishing Co.

Silver Spring, Maryland

Any legitimate article of commerce may be sold through the U.S.

mails upon truthful and honest representation - and the Post

Office welcomes every legal enterprise to the use of the mails.

The purpose of this report is to provide you with practical

information on more economical and efficient handling of your

mail. With postage costs at an all time high, we belive you will

find these suggestions on how to get more for your postage dollar

especially helpful. Today, it is more important than ever to

establish good mailing practices, practices that will make a

profitable difference in your postage handling, and speed up your

mail.

A WORKING KNOWLEDGE OF POSTAL LAWS AND REGULATIONS - By the very

nature of the business, mail merchandising implies integrity. If

a customer has to pay for something before having a chance to

examine the article, his confidence is not to be abused. Selling

by mail must be kept on a high plane of the dealer is to survive

and prosper.

Lotteries, chain letters and schemes to injure or defraud are

denied the mail privilege.. Nonmailable materials also include

items not regarded as conductive to the public welfare, such as

pornography. Excluded, too are materials (as inflammable liquids

and chemicals) which could damage the mails or cause injury to

postal employees.

Every one who is using the mails to conduct business should

become familiar with the postal retirements which apply to his

particular enterprise. It is not, however, necessary or advisable

for the beginner or small operator to attempt learning in detail

all the ramifications of all the Postal Laws and Regulations. To

the mail minded person, dealing with the post office is not

anything new or strange. As a mail user in the past, whenever you

came across something on which you desired information, you

simply inquired at the post office. As a small mail order dealer

you will be doing the same thing.., and there will not be a great

range of questions that will concern you. If you are in doubt

about anything relating to your situation,, inquire as to how the

matter should be handled. The Post Office will answer all your

questions.

PENALTIES FOR USING THE MAILS TO DEFRAUD - A customer should make

a formal complaint in the case of misrepresentations and

p[possible fraud with the Office of the Regional Chief Postal

Inspector. There are 5 regions. The local Post Office will advise

what region is responsible got a given area of the country.

If complaints from different parties have been received, the

postal, inspector can ascertain that the seller is at fault.

However, the Post Office will give a mail order business the

benefit of the doubt and the business is afforded the chance of

settling complaints fairly with customers.

Where the intention is clearly to defraud, the case is followed

through with a fraud order to be issued by the office of the

Postmaster General. Letters are then returned to the senders,

marked across the face of the envelope "Fraudulent".. It is not

the intent of the POst Office, however, for its inspectors to act

as censors on transactions or adjusters of arguments.

In flagrant cases of fraud,, in addition to loss of mail use, a

fine or imprisonment, or both, may be imposed. However, any

honest individual who operates a mail-order enterprise as a

business and not as racket need have no fear.

NEED FOR FAMILIARITY WITH CLASSES AND RATES OF MAIL - Since

mailing costs are responsible for a major operating expense --

approximately one fourth of the total expenses of a small mail

order business -- the mail-order business has to be able to

figure how to get top efficiency for this major expense category.

A mail order business may, for example, save a great deal in the

course of a year by knowing how pieces of sales literature can

best be mailed and what the weight limitations are for specific

postage charges. Among small dealers especially, there is much

postage waste by failure to take into account minor details which

in the aggregate run to respectable sums. Suppose, as an

illustration, a booklet or catalog ready to mail just barely

exceeds the limit for one rate and calls for more postage. A

minor adjustment in the place can decrease the postage from, for

example 65 cents to 45 cents. A thousand pieces mailed per month

makes a difference of $200 Dollars in lost profit.

Third-class mail, (also called bulk mail), may be used by anyone,

but it is used most often by larger mailers. Basic requirement to

mail by bulk mail are that the mailer obtains the proper permit,,

minimum number of pieces must be 200 per mailing and all pieces

are sorted by zip code. At this time the rate for Basic Bulk Mail

is 0.16.7 for the first 3.37oz. Thereafter a combination of pound

and pieces rate are applied. Almost all mail order companies use

bulk mail when a given piece exceeds 45 cents for first class

postage. The savings are substantial. The big disadvantage is the

time it takes for delivery. This can vary greatly by region and

time of the year. As a rule of thumb mail within a 500 mile range

may take from 1 to 2 weeks, 500 to 1500 miles 10 to 20 days and

over 1500 miles from 2-4 weeks. Your local Post Office will give

you all necessary bulk mail information and the proper

application.

The Post Office issues a number of informative brochures which

are free and give information on key postal matters. For a list

of currently available publications write to:

Consumer Advocate

U.S. Postal Service

475 L'Enfant Plaza West, N.W.

Washington, DC 20260

Since many prospective small mail dealers are interested in the

merchandising of books, it is important for them to know that

books can be mailed by preferential rate not enjoyed ny any other

commodity. To take advantage of the reduced rates,, packages must

be plainly marked "Special Fourth Class Rate", Current special

Fourth Class Rate are 90 cents for the first pound and, 30 cents

for each additional pound.

KEEP YOUR BUSINESS ABOVE REPROACH - Considering the number of

people using the mails and the tremendous volume of business

transacted by mail, the Post Office levies relatively few

penalties. However, no business of any size can be carried on

without some complaints. A policy of "Money Back Guarantee" or

"Satisfaction Guaranteed" goes a long way in convincing the Post

Office as well as your customers that you are a trustworthy

business.

PACKAGING AND ADDRESSING PARCELS AND PACKAGES - Proper packaging

and addressing of packages is the best way to prevent damage and

loss. Use a container strong enough to protect contents during

handling.. Cushion the contents if necessary to make sure they do

not move within the container and affix the address information

securely. Plastic packaging tape is recommended for closing and

reinforcing the flaps and seams... Avoid using wrapping paper.

The use of string could cause damage in processing. The address

must be typed or legibly written one side only.. Use an address

that's designed for efficient post office handling including

proper zip code information - with the recipients address more

prominent than your own.

USE STANDARD SIZE ENVELOPES - Save time and money. For best

results envelopes should be at least a few inches longer then the

longest insert plus the combined total thickness of the inserts.

When the inserts are thick and bulky, extra allowances should be

made.

WATCH YOUR WEIGHT - A truly accurate mailing scale is a must for

any mailer - large or small. Otherwise, you run the risk of

underpayment of postage - and the irrirritation of mail being

returned because of "postage Due". And of course, overpayment of

postage can cost you a great deal of money over a period of time,

so it is indeed important to have an accurate postage scale.

POSTAGE METER - If you send out much mail from your place of

business, it might be practical to consider the convenience of

metered mail. Some advantages are - Save trips to the post

office. Eliminate the need for keeping loose stamps.. Stamp, seal

and postmark quickly. Avoid loss of stamps. Print "meter ads"

simultaneously with the meter stamps. Accurate postage affixing.

Postage meter equipment generally consists of tow parts, an

office mailing machine and a detachable postage meter, the later

licensed for use by the United States Postal Service. Since

postage meters print U.S. postage and account for government

revenue under official lock and seal, they cannot be sold

outright, as are mailing machines, but are leased from an

authorized manufacturer who is held responsible to the U.S.

Postal Service for their proper operation and replacement when

necessary.

KEEP YOUR MAILING LIST CURRENT - Only a "live" list can produce

good results - and many nixies on a list can be very costly. So

be sure to keep your list constantly up to date. One way to keep

your list clean is to print. "Address Correction Requested" on

outgoing envelopes. The POst Office notes the reason for

non-delivery, or the new address if known. The fee for address

correction service is 30 cents per notice issued, for both Second

and Third class mail. Undeliverable first class mail is returned

free of charge.

SPECIAL HANDLING -Special handling service is available for Third

and Fourth class mail only, including insured and certified

mail... It provides for preferential handling in dispatch and

transport, but does not provide faster delivery.

PRIORITY MAIL - First class and priority mail are one and the

same... When first class mail exceeds 11 ounces it becomes

priority mail.

WHAT TO DO WHEN YOU HAVE A POSTAL PROBLEM - When you have a

problem with your mail service it is best to talk to one of the

clerks at the Post Office. If necessary the clerk will refer you

to someone else. It is best not to complain to management or file

an official complaint at your own Post Office. Be nice with the

clerks and try to get known them. They are important partners in

your mail order business.

THE BEGINNER'S MAIL ORDER BUSINESS GUIDE

By

Peter E. Schuender

Published 1990 by MASCOR Publishing Co.

Copyright 100- by Mascor Publishing Co.

P.O. Box 8308

Silver Spring, Md 20907

Note: This report is intended to relate personal experiences of

a mail order operator in order to make helpful suggestions to

individuals who are new to the field. No claim is made that the

steps outlined would be successful for someone else. Each

individual should obtain such professional advice as may be

necessary for his particular operation.

INTRODUCTION

The following is designed to provide a check list for new

entrants into the mail order field. Each mail order business is

different, but there are common elements that apply to most mail

order businesses, as well as some specific characteristics that

may vary from business to business. The following suggestions

were developed to assist you in avoiding mistakes which can be

costly. Apply the various points as they may relate to your

specific business.

COMPANY NAME

* Select a short, easily remembered name.

* Unless you are using your own name, it is required in most

jurisdictions that a trade name is either registered with the

county or the state.

* Before you spend money for printing material, make sure that

the name you choose is not already registered to another

company. You can usually conduct a name search with an office

of the appropriate jurisdiction by telephone.

* You may consider using a name that describes your product.

COMPANY ADDRESS

* Most newly established mail order businesses will operate

out of their home until the volume of the business requires

larger space.

* Most mail order businesses prefer not to use their home

address as their company address. If you do, you will

advertise your home address in regional and national

publications. You have two other choices, a Post Office Box

(POB) or a postal box located in a commercial enterprise which

rents out mail boxes.

* A POB is generally the least expensive, both to rent and for

advertising purposes. (See below) Some mail order operators

claim that it reduces business because people do not trust a POB

address. Yet there are just as many mail order operators who

prove them wrong. the decision is yours.

* If you rent a mail box in a commercial enterprise, (many

have sprung up in recent years), your box number usually

becomes a suite number in the address.

* Almost all publications will charge you a full word charge

for each component of your address, except the Zip Code and

State which is counted as one word, Example:

Information Books, 300 Main Street, Suite 611, Centerville,

Md 20910 Or:

Information Books, Box 1000, Centerville, Md 20910.

* The first address is counted as 9 words, the second one as 6

words. Since advertising costs anywhere from 50 cents to $10.00

per word (classified advertising) you could save a substantial

amount of money at the end of the year.

TELEPHONE

* Some mail order companies do not show their phone numbers on

their stationery, others do. I believe it gives the customer

some comfort to see a telephone number, although he may

never use it.

* You can show your residence phone number in the appropriate

printed material, or you can obtain a business listing for

your home.

* The residence phone is fine, for starters, if it is answered

in a professional manner at all times.

* If you plan to sell higher priced ticket items, however,

(over $15.00) a business listing would be advantageous since a

prospective customer may pick up the phone and check with the

information operator whether "Company X" is listed.

BASIC SUPPLIES

* Be conservative and frugal in your acquisition of items that

you feel are needed. It's always wise to start small, and as

inexpensively as possible, and as you build profits, you can

buy more and better items.

* The basics are a good quality typewriter, (you can rent one

for starters for a few months). Business stationery, business

envelopes (#10's), and return envelopes, either #6 or #9 is

fine. All items should have your business name and address

imprinted on them.

* You will also need some mailing labels and some

miscellaneous office supplies.

PRODUCT

* If possible, choose a product or products that people need

on an ongoing basis.

* Be sure the product is of acceptable quality. Know the

product before you sell it.

* If feasible, choose an item that is not widely available

from retailers.

* If you have a difficult time deciding what items or products

to select, I suggest you read the following book: "How Mail

Order fortunes are Made" by Alfred Stern. This book lists

hundreds of different items. It will give you many good ideas.

* Develop a line of merchandise. It is rarely possible to

make money with just one or two items. The availability of a

line of related products is paramount to mail order success.

* The more specialized your products are, the easier your

marketing becomes.

* If you are selling books, for example, it would be

impossible, except for a very large company, to sell all

types of books. You may decide to specialize in books pertaining

to sports, and may want to go even further by zeroing in on

football or baseball.

SUPPLIERS

* Your suppliers should provide you with reliable, quality,

and reasonable pricing.

* Since you probably should provide some type of a money back

guarantee (30 days is standard) you should expect the same

guarantee from your suppliers.

* When buying from out of town suppliers, be sure to include

the shipping charge in comparing prices to local suppliers.

DROP-SHIPMENTS

* Under a drop-ship agreement which is available from many

suppliers for a variety of products, the supplier ships your

customers' orders directly under your shipping label.

(Suggested reading: "American-Drop-Shippers Directory".)

* It is customary that the supplier guarantees not to include

any of his promotional materials with the shipment; or to use

your customer's name for any future mailings.

* Drop-shipping arrangements are suitable for people getting

started. It allows you not to have to carry a costly

inventory.

* As your business increases and you develop a sense of what

sells well, you can stock limited supplies of certain fast

selling items, and continue utilizing drop-shipments for

slower products. Eventually, as your business flourishes, you

can carry an inventory of everything you sell.

* Handling your own shipments is advantageous for the

following reasons: It cuts down your shipping expenses, it

decreases the shipping time, and it allows you to include

promotional material directly with the shipment.

* When you do utilize drop-shipments, be sure to send your

customer a note that his order is being processed and he can

expect it by, or around a certain date.

* It is unnecessary to make your customer aware of the fact

that the item is being drop- shipped. Include some promotional

material with your letter or note.

PRICING

* Buy at a price that allows you an adequate mark-up. In

setting your prices, allow for all costs:

* Cost of product, shipping cost and postage, bank charges

including credit card charges, wrapping, bad debts, rejects,

refunds, etc. In addition, the other normal overhead costs

need to be considered,. Lastly, there is the substantial

marketing cost for advertising, and for printing of

promotional items. (See following paragraphs)

* Your prices of course, have to be fair and in line with your

competition.

* It is not necessary that you make a big profit on each and

every item. the real profit in mail order comes from

follow-up orders.

* THE 3 BIGGEST EXPENSE CATEGORIES IN MAIL ORDER ARE:

ADVERTISING, PRINTING COST, AND POSTAGE. Over 80% of your total

expenses are in this area. Watch these expenses very

carefully.

ADVERTISING EXPENSE

* Start with classified ads. As you test them and know what

is successful, you can switch to display ads.

* To test an offering and a specific ad, run it once in a

specific publication and you should get a reading that could be

very positive or very negative. It might also be

inconclusive. If that is the case, simply run it again.

* It is best to test an ad by running it in different

publications.

* Advertise in publications that advertise similar products.

* If you have a sure seller, buy larger space.

* Special interest products should be advertised in special

interest publications.

* Keep on changing the ad and offering until you are satisfied

it is right.

* Examples of changes you can make are: size of ad, copy,

appeal, special gimmicks such as discounts, free gifts or

reports, etc.

* Remember that a given ad can be 20 or 30 times more

successful than another ad advertising the same product. it

pays, therefore, to continue testing until it is just right.

* Repeat a successful ad until you no longer get a

satisfactory return.

* The conventional advertising cost is 15% of sales or more in

mail order.

* To evaluate your advertising cost, think in terms of cost

per inquiry. this is calculated by dividing the number of

inquiries into the cost of the ad. that cost may vary from

about $$0.80 to $2.00 or more.

* Be careful when you allocate advertising funds to small mail

order publications. The ad may appear to be very

inexpensive. However, a $15.00 ad that gets no response is a

lot more expensive than a $150.00 ad that gets over 100

inquiries.

* Stay away from those publications that have no news or

editorial content, and also those that have poor printing

quality.

* There are a number of quality mail order publications, but

it takes time to find the right publication for your product.

(See American-Drop-Shippers Directory.)

ADVERTISING COPY

* Write tight copy.

* Write as you speak. You are generally appealing to a mass

market.

* Prepare your copy carefully. It must fit your specific

medium.

* The emphasis should be on YOU rather than I, the company.

* Be sincere and don't make unreasonable claims, but remember

that you are selling.

* Try to convince the reader that you are reliable and

trustworthy.

* Give simple specific instruction.

* Key all ads to test their effectiveness.

* Check and double check, and have someone else check your ad

to make sure everything is correct and easy to understand.

* Watch where your competitors are advertising.

* Experiment with new publications.

* It is generally considered impossible to sell something that

costs more than $2.00 - $3.00 direct from either a classified ad

or a small display ad. This is because there just is not

enough space to convince someone to part with $10.00 or $20.00,

for example. It takes a full page ad to do that.

* If you use an agency, use one that specializes in mail

order, even if it is located out of town.

RESPONDING TO INQUIRIES

* Each inquiry you receive in response to an ad should be

answered via First Class, if at all possible, within 24 hours.

* The contents of the envelope going to the prospective

customer should contain: a circular, promotional flier, or

mini-brochure, a sales letter, an order form (the order form

can be part of the circular), a return envelope, and other

appropriate information, such as a fact sheet, a free

report, etc.

* In general, circulars should be limited to one 8 1/2 x 11

page.

* A sales letter, on the other hand, can be as long as it

takes to say everything you need to say to a prospective

customer in order to sell him the product.

* Sales letters should have an attention getting opening. The

idea of the opening is to get him to read the rest of the

letter.

POSTAGE AND SHIPPING COST

* Answer inquiries to your advertising immediately and via

First Class Mail. Use Bulk Mail for future mailings.

* You can save a great deal of money by getting a Bulk Mail

permit. The minimum number of pieces per mailing is 200.

Mail must be zip sorted. Postage is 16.7 cents for up to 3.3

oz. Get more specific information from your Post Office.

* Keep your mailing lists clean - updated.

* Utilize all of the various mail classes, such as Printed

Mail and Book rate.

* Compare costs of shippers other than the Post Office.

* Guarantee return postage.

* Watch your shipping weight. A fraction of an ounce can make

a big difference in a large mailing.

PRINTING COST

* Very large printers will not be interested in your business.

Very small ones, quick printers and instant printers although

convenient, are generally too expensive. Their equipment is

not large enough to be competitive.

* There are many medium sized printers that will give you good

pricing and quality printing. Often they have the

capability to help you with layout and design.

* Don't hesitate to use out of town printers. If you live in

a high cost-of -living area, you can probably save a

substantial amount of money. Many of these printers advertise in

mail order publications.

* Utilize the promotional material available from your

supplier.

* Until you know what sells, print small quantities, even if

it is more expensive.

* Use colored paper for your promotional flyers to spice up

your offer. Use white paper, blue or black ink for everything

else.

CUSTOMER PAYMENTS, REFUNDS AND COMPLAINTS

* Accept cash, money orders and checks.

* Some mail order companies state in their material that they

will not ship for 10 days to 2 weeks when payment is made with

an out of town check. This may be an unwise practice

because, it can create ill feelings with your customers. NSF

checks are rare.

* An increasing number of mail order companies accept credit

cards - Visa and MasterCard - for payment. It is generally

felt that it does increase sales.

* If you cannot obtain a credit card merchant agreement with

your bank work through a credit card clearing house. A

number of these companies advertise in mail order

publications. Since these companies generally charge between

6-9%, it may be wise to set a minimum amount such as $15.00

for credit card orders.

* Remember, "the customer" is always right. An argument won,

is usually a customer lost.

* If you receive an order with an underpayment, ship the order

and bill the customer for the difference.

* Make refunds on overpayments quickly.

* Most mail order companies offer a 30 day money back

guarantee. Some offer 90 days and even more.

* It is unwise to offer money back guarantees on items priced

very inexpensively, for example, a $3.00 report.

RECORD KEEPING

* As in any business, it is important to keep records.

* You need records to tell you what is going on in your

business; to evaluate both your revenues and your expenses.

* It is also required by law that you keep certain records.

* Keep especially good records of your advertising expenses so

you can evaluate your advertising on an ongoing basis.

MAILING LISTS

* It is recommended that you do no direct mailings, except to

your own list of customers and inquirers, until you have

thoroughly tested a specific product through advertising.

* Stay away from inexpensive mailing lists, under $40.00 -

$50.00 per 1000.

* Avoid mailing lists whose owners make unrealistic claims.

* Work with a list broker who wants to see your product before

he will rent you a list. Lists are rented for one time use.

* Lists from professional list brokers rent from $60.00 and

up, per thousand names.

* The general consensus is that you need to mail a minimum of

1000 names to get a fair reading. 5000 names would give you

a more accurate test.

* Buyer' names are better than names of inquiries.

* The best mailing list is your own list of buyers. Second

best is your own list of inquirers.

FOLLOW UP

* The most important factor in mail order is FOLLOW-UP

Substantial profits can be generated from this segment, if it

is properly handled.

* You can generate a lot of sales by including promotional

material when filling orders for customers. Other orders are

generated from mailings that are made to former customers, as

well as individuals who inquired about an offer in the past.

* Send out regular mailings to your customers. At a minimum,

four times per year. However, you can send out mailings as

often as every 6 weeks or so, if you have a new product to

offer.

* As you build your mailing lists and you send out regular

mailings, your orders will start flowing in.

RESEARCH AND EDUCATION

* Whether you are new to this field or not, to stay on top,

you must continue your education by reading books and reports

on mail order and subscribing to mail order publication.

* Always be on the lookout for new products you can offer your

customers.

* Study the advertising of your competitors. Request their

material and study it.

* Study all mailings you receive.

* disregard the MLM schemes that you receive, chain letters,

recipe clubs, etc. they are all the same, a big waste of

money. Many of them are illegal.

* If you are new to mail order, study the attached information

on various publications. Depending on your knowledge of the

field, one or several of the books shown may be very useful and

can help you to be more successful.

Continue to learn about mail order by reading, experimenting, and

talking with other mail order operators. Have patience. Success

will not come overnight. It takes time to build a successful

business. Start slowly and expand your business from your

profits.

Good Luck!

MAIL ORDER LAWS AND REGULATIONS

-An Overview-

by Peter Schruender

Copyright 1989 Mascor Publishing

No parts of this publication may be reproduced in any manner

whatsoever

without written permission from the publisher.

INTRODUCTION

The intent of this report is to give the newcomer to the mail

order business an overview of those laws and regulations that

most affect the small mail order operator. The intent is not to

give legal advice. Such advice should always be sought from an

attorney. Only those laws and regulations that apply to the

small operator most directly are covered. Advice is given from

the perspective of an operator of a mail order business rather

than from a legal perspective.

For those interested in an in-depth review of the laws which

affect the mail order industry, it is recommended that you read

the following book: The Direct Marketer's Legal Advisor, by

Robert J. Bosch, McGraw Hill Book Company.

THE 30 DAY RULE

To protect the consumer the FTC has enacted the Mail Order

Merchandise rule which is generally referred to as the 30 Day

Rule. Many states have enacted similar laws. some of those laws

have a more narrow definition than the federal law; the most

notable is New York State.

The 30 Day Rule requires the seller to deliver the order within a

30 day period, unless otherwise stated in the sales literature.

if the seller, for example, states in the order form that

delivery takes 4 to 6 weeks, he has effectively insulated himself

from the law. In a practical matter, however, he may have also

affected his business in a negative way.

The 30 day period begins when an order arrives and has been

properly paid for.

The 30 Day Rule is an easy regulation with which to comply. It

should rarely take longer than 30 days to fill an order. If it

does, the seller must notify the buyer of the delay and the

reason for it.

Some mail order companies delay shipment of orders until checks

rendered for payment have cleared. This should generally not

take longer than 10 days. If the seller wishes to follow such a

policy, he should so state in his literature. From the

perspective of a mail order operator, I do not consider this to

be a sound policy. NSF and ACCOUNT CLOSED checks are relatively

rare and can be minimized with proper controls. If you practice

such a policy, you may save a few dollars but in return you will

make customers unhappy. I personally do not buy from companies

that state in their literature that they hold checks for

clearance. Most mail order companies experience very small bad

debt ratios. It is recommended that you call the bank the check

is drawn on to verify funds on larger amounts; as for example, on

orders over $50.

Once the buyer has been notified that an order has been delayed,

the seller is automatically granted an additional 30 day delay

unless the customer advises the seller that the delay is not

acceptable. If he does not reply to the notification, it

constitutes legal acceptance of the delay. In general, and in

most states, the seller may obtain a second 30 day delay as long

as there is a good enough reason.

The New York law differs from the federal law in that it

stipulates a maximum period of 65 days (including delays) for an

order to be filled. Newcomers to the mail order field residing

in New York State should obtain a copy of the New York

regulations.

The 30 Day Rule does not pertain to credit card sales. Credit

card charges should be processed when an order is filled. If a

mail order credit card sale is cancelled, the seller must issue a

credit against the account of the buyer within one billing cycle

following receipt of the cancellation request.

UNORDERED MERCHANDISE

The federal law pertaining to unordered merchandise is simple.

It strictly forbids this practice. Free samples, if so

identified, are exempted.

MERCHANDISE SUBSTITUTION

Most states, including New York, as well as the federal law

permit sellers to substitute merchandise of similar or superior

quality. The law requires it, and it is also a good business

practice, to advise the buyer when making a substitution that he

may return the merchandise free of charge if he is not satisfied.

Certain items, such as merchandise which has artistic value,

cannot be substituted. In this regard, for example, a book on

how to start a given business may be substituted by a similar

book on the same subject, but a book of literature by a renown

author may not be substituted.

RETURN OF MERCHANDISE

Unless the seller specifically states that he does not offer a

moneyback guarantee or offers, for example, a 30 day money back

guarantee, he is required to make a full refund for a period of

60 days if the material is returned in good condition.

My own experience with returned merchandise indicates that it is

quite rare. Our company, as an example, receives no more than

1-2 returns for every 120-150 orders. If you are a seller of

information products and you sell reports or other information

which can be easily copied, you may wish to enact a policy

stating that there is a no return policy for reports, etc.

The above laws are the only federal regulations pertaining to the

sale of merchandise which are unique to the mail order industry.

HEADLINERS IN ADVERTISING AND SALES LITERATURE

A few words should be said about the proper usage of some of the

most common headlines used in advertising. Again, for an

in-depth review of laws pertaining to advertising, refer to the

book as listed above.

The most common and most effective of these terms are: SALE, NEW

and most of all FREE. FREE is a magic word in American

advertising used by giant companies and small ones alike. By all

means, these terms should be used since they do produce sales.

and if the advertiser follows a simple rule of honesty in the

usage of these and other advertising terms, he will stay out of

trouble.

SALE

A sale is a reduction from the seller's own former selling price

of a given article. The seller must have sold, not just offered

the article, for a reasonable period of time. This simply means

if a 50% discount is offered on a $10 book, the book at some

previous time must have actually been sold at $10. If it just

has a cover price of $10 but was always sold at $7, a $5 price is

not a 50% discount.

FREE

Free means it is free. To reemphasize, the term is very

successful and will generate sales. But if something is offered

for free, it should be free. the value of the free item cannot

be hidden in another part of the offer, such as charging more for

the other items than you would normally charge.

NEW

Here is another straight-forward term. It should only be used

when new items are advertised. A new book is one which came out

in the last 6 months (maybe 12 months, and that would be

stretching it) but definitely not 2 years.

HOW TO START YOUR OWN COMPANY

Once you have decided you want to go into business, you must set

yourself up to get started. this is not al all difficult. You

should have no concerns on this matter. It is easy and

inexpensive to do. There are no unusual legal requirements to

sell by mail.

There are generally three ways to structure a business entity.

the sole proprietorship, the corporation, and a partnership. The

sole proprietorship is the easiest, fastest and least expensive

way to set yourself up. In most cases this would be the way to

start out for a small business.

Corporations have tax benefits that can be more advantageous than

a proprietorship, but they also have strict record keeping

requirements. As a rule of thumb, a business should be

incorporated if it has annual sales in excess of $250,000. It is

against the law in most states to use the abbreviation inc.

unless the business is incorporated. But you can use Co.

Partnerships also have specific legal requirements. Forming a

partnership is generally necessary when going into business with

someone else. There are advantages and disadvantages in doing

this. Besides sharing workloads and profits, the partners must

get along well. It is almost always necessary to obtain legal

counsel in order to set up a corporation or a partnership.

D.B.A. AND/OR BUSINESS LICENSE

In most cities or towns it is required that a business license be

obtained. In addition, you generally need to register your

business name if you are using a fictitious name If you are

using your own name, it is not required. Call your local city or

county clerk's office to obtain the necessary information.

A SUMMARY OF COPYRIGHT LAWS

For those interested in becoming self publishers either by

creating their own work or using someone else's, here is a short

summary of copyright law.

WHAT COPYRIGHT IS

Copyright is a form of protection provided by the laws of the

United States (Title 17, U.S. Code) to the authors of "original

works of authorship," including literary, dramatic musical,

artistic, and certain other intellectual works. Under the

copyright law, copyright protection (for printed works) pertains

only to the words and their sequence; it does not pertain to any

idea, process, system, etc., regardless of the form in which it

is described. that is, you copyright the words contained in the

copy, not the content. The copyright law generally gives the

owner the exclusive right to do and authorize others to do the

following: In the case of printed works, to reproduce the work

in various forms such as copying, etc. It also gives the owner

the right to display the copyrighted work publicly.

COPYRIGHT SECURED AUTOMATICALLY UPON CREATION

The way copyright protection is secured under the present law is

frequently misunderstood. No publication or registration or

other action in the copyright office is required to secure a

copyright. there are, however, definite advantages in doing so

since, in the case of a litigation, it is substantially easier to

prove copyright if registration has taken place.

Under the present law, copyright is secured automatically when

the work is created, and work is "created" when it is fixed in a

copy for the first time.

REGISTRATION PROCEDURES

Registration procedures are simple. In general, to register a

work three elements have to be sent to the Copyright Office in

Washington, D.C. An application (proper for can be obtained

from the Copyright Office), a $10 fee, and a non-returnable

deposit of the work to be copyrighted. For more specific

information, including a copy of the law, write to:

Register of Copyrights

Copyright Office

Library of Congress'

Washington, D.C. 20559

U.S. POSTAL LAWS

In general, it is against the postal regulations to utilize the

U.S. mail service to transport hazardous materials, pornographic

materials and chain letters involving money. For more specific

information, write to:

Consumer Advocate

U.S. Postal Service

475 L'Enfant Plaza West, WW

Washington, D.C. 20260

You may also obtain a free copy of the Consumer's Resource

Handbook. It is designed to help consumers resolve complaints

about goods and services with local, federal and state agencies.

Write to:

Consumer Information Center

Department 532

Pueblo, Co 81009

Other free publications that may be of interest to you:

"Selling by Mail" can be obtained from:

Small Business Administration

Washington, D.C. 20416-1110

"The Mail Order Rule" can be obtained from:

Federal Trade Commission

Publishing Office, #130

6th and Pennsylvania Avenue

Washington, D.C. 20580-0001

A final thought: In the conduct of your business, let

common sense and honesty be your guide.

 

 

HOW TO WRITE CLASSIFIED ADS THAT GET RESULTS NOW!

by Peter Schruender

Copyright 1989 Mascor Publishing

SELLING DIRECTLY FROM A CLASSIFIED AD

Classified ads can be used to sell products directly from the ad.

This, however, only works for items costing no more than

approximately $5. The best use for classified ads is to utilize

them in obtaining inquiries. This is called the two step

approach. The first step is to get maximum inquiries from the

classified ad, in the second step the promotional package is sent

to the prospect and as many inquiries as possible are converted

to buyers.

CLASSIFIED ADS FOR MAXIMUM INQUIRIES

Classified ads are substantially less expensive than small space

ads, but by no means are they cheap. Most national publications

catering to the mail order business charge from $3 to $8 per

word. A well laid out ad should consist of about 20 words which

includes the company name and address. It is important that you

remind yourself that only the purpose is to get the prospect to

take immediate action and write for more information.

Before you write the ad know exactly what it is you want to sell.

You must know very specifically what you are going to accomplish

through this ad. Once you have determined what you want to get

across to the reader, write it out in one or more complete

sentences. For example, you have the reproduction rights for

several reports and want to market them. So the objective is: "I

want to get the maximum number of responses to inquire about my

self-publishing material which has excellent income potential and

is easy to market, especially for a newcomer to the business."

This ad may read as follows:

TREMENDOUS PROFITS THROUGH SELF-PUBLISHING! Start part-time. Easy

to do. Request free Special Report! XYZ Publishing/E, PO Box

1000, Frederick, MD 20908.

THE OPENING LINE

The first 3 or 4 words-- are critical. Since there are hundreds

of classified ads in any given publication you must be able to

get the reader who scans all, or some of them, to stop in his

tracks when he gets to your ad and read your ad and then take

action.

Open any publication and review the ads and you will see that

many of those ads have absolutely no purpose. They are a total

waste of money. But that is good for you since I am sure you will

make a real effort to get your message across. Here are a couple

of examples of useless ads:

Still Looking For A New Beginning? Write.......

What do they mean by that? How does any of that pertain tome and

what am I supposed to make of that? Here is another one:

The Easiest Business On Earth. Valuable information mailed

free.....

Do you think many people are going to write in for an ad like

that. Especially not since there are hundreds of other ads in

competition for the readers' time.

THE OBJECT IS TO GET THE READER TO TAKE ACTION - NOW!

In less that 25 words you have to create a message that will make

a reader stop; give him a reason - benefits to him - why this is

for him; tell him what to do - action; and provide the vital

information. It is as simple and as complicated as that. Simple

because you know what you want to accomplish, but complicated

because it has to be done with so few words. I think you can see

why it is virtually impossible to sell a $10 or $20 item from a

classified ad. You just would not have enough space to tell a

story compelling enough to convince someone to part with $10 or

$20.

SELF-CENTERED ADVERTISING COPY IS INEFFECTIVE

With some practice you should have no problem getting lots of

inquiries from your ads. Stay away from "Self-centered

advertising copy", copy that speaks about you. How great you or

your company are, or how great your product is.

 

The only thing the reader cares about is himself. What's in in

for Number One! Nothing else.

SOME COST SAVING TIPS

Almost all weekly and monthly publication will charge for each

word including your company name and address. Most daily

newspapers have a per line rate. Since just the address can take

up from 6-10 words here are some ways you can save money.

The following ad has 23 words.

TREMENDOUS PROFITS THROUGH SELF-PUBLISHING

Start part-time. Easy to do.

XYZ Publishing Co.

Dept 12 P.O. Box 1000 Frederick, MD 20908

This ad has 21 words.

TREMENDOUS PROFITS THROUGH SELF-PUBLISHING

Start part-time. Easy to do. Free details.

XYZ Publishing/E (The E becomes the code instead of Dept 12

PO Box 1000

Frederick, MD 20908

Or this one which has 18 words

SELF-PUBLISHING, TREMENDOUS PROFITS!

Start part-time. Easy! Free report.

XYZ Publishing/E

PO Box 1000

Frederick, MD 20908

Some publications charge 2 words for the zip code and state, some

only one. If you live in a city which consists of several words

such as Palm Beach Gardens you are only charged for 1 word.

Evaluate the cost effectiveness of your ad by the cost per

inquiry and not the cost of the ad. Example a $150 ad generates

170 inquiries $0.88 per word versus a $28 ad which generates 15

inquiries at a cost of $1.87 each.

WHEN THE INQUIRIES START ARRIVING

If you have written and placed an effective ad and the inquiries

start rolling in, the most important job, or actually several

jobs have to be done. They are as follows:

1. Your sales/promotional package must be ready before the first

inquiry arrives and it must be answered promptly, preferably the

same day but certainly within 48 hours. The longer you wait the

more chances are that a competitor will win out over you.

Although some people will wait for weeks before they make a

decision, many will act within days.

2. The ad you are placing is just the beginning. The names which

are generated from the ad must be used again and again in order

for your total advertising effort to be effective in the long

term.

3. A percentage of your inquiries from this first ad will become

buyers. You need to send these buyers additional offers within

several weeks after their first purchase and thereafter mail at

least 3 times per year to them. You drop them from your list if

they have not bought anything for about 8 - 12 months.

4. The inquiries that did not buy buy this time may still buy at

a later time. You can send them the same material again, or a

similar offer. It is advisable to send 2-3 more mailing to them.

Many mail order companies may only make a small profit or just

break even when the actual sales results are measured against a

single ad. But over the life of the customers which are converted

from those inquiries and the subsequent purchases from the

inquiries who were not converted from the initial ad many

hundreds or thousands of additional dollars will be generated.

Wishing you success and many inquiries from your ads!

HOW TO SET UP AN IN-HOUSE ADVERTISING AGENCY

FUNCTION OF ADVERTISING AGENCIES

Most firms turn over the entire problem of advertising to

advertising agencies. This practices generally costs the

advertiser nothing because the agency receives a commission from

the medium in which the advertisement appears. The medium returns

to the agency 15 percent of the cost of space sold to the

advertiser. With this return the agency can offer its clients

other services in addition to placing advertisements, and still

make a profit.

Agencies are often equipped to handle every phase of the Program.

They may help with research, prepare the advertisements and

select the media in which the ads are to be run, and they may

also assist in other phases of marketing and even in -product

development. However, the primary duty of an advertising agency

is to suggest the best media in the best combinations for the

advertiser.

YOUR "IN-HOUSE ADVERTISING AGENCY

Enclosed with this report is a starting supply of the "Ad

Insertion Form" you will need to use in processing your

advertising orders. Before proceeding further, please examine it

carefully. It is mainstay, the primary piece of literature that

will establish you as an Advertising Agency. You may wish to

modify the form to suit your own needs.

 

An "In-House" agency simply means placing your ads yourself,

instead of paying an outside agency the commission. You insert

the ads, deduct the commission (usually 15%). However, YOU MUST

USE THE PROPER FORM. An order placed under your ordinary business

letterhead will not do. Also, it is a good idea to preface your

masthead on your FORM with the words "Advertising Agency." For

example, Smith's Advertising Agency instead of Smith & Company.

It is also recommended that you have a small quantity of business

letterheads printed under your advertising agency designation.

You will need these for your correspondence with publishers.

Many publishers stipulate on their rate cards "discount available

to recognized agencies only." this is the reason you need the

professional FORM - without it - most publications will not

recognize you as an agency.

The three essentials in your operation of an "In-House"

advertising agency- proper Form - advertising agency masthead -

remittance with order.

Before placing ads, obtain current Rate Cards from the

publications that interest you. A rate card will show - Display

advertising rates. Classified advertising rates. Commissions and

frequent discounts. Mechanical and production requirements.

Insurance, closing and cancellation dates. Circulation

information. Specifications for advertisements. Miscellaneous.

SOME THINGS YOU SHOULD KNOW

Advertisers and advertising agencies assume liability for all

content of advertisements including text, representation and

illustrations and also assume full liability for any claims

against the publisher arising therefrom. Publishers will not

assume responsibility for errors in key number and no allowances

or deductions are given should such errors occur;;; or any error

due to illegibly written copy. Publishers will not guarantee

proofs for correction if copy is not received by closing dates.

Cash with order unless credit has been established.

Most publishers reserve the right to revise all copy to conform

with their standard or to decline advertisements which request

any advertiser to submit his literature and/or merchandise before

accepting an ad. Advertisers using a post office box number must

furnish a complete name and address for recordkeeping.

Generally, rates are subject to change without notice except on

contracts which have been accepted and acknowledged by the

publisher. Proofs are not submitted on classified ads but correct

insertion of your advertisement will, in most cases,be

guaranteed.

Original art must be mounted and camera ready. If two or more

colors are to be used, they should be attached to black art on an

overlay with register markings denoting trim, bleeds, etc.

Advertisements which stimulate editorial content must be clearly

defined and labeled "Advertisement."

California law requires all mail order advertising for companies

in that state to carry a legal address.

WHERE TO FIND PUBLICATION ADDRESSES ALONG WITH ADVERTISING RATES

AND REQUIREMENTS

These are the books professional advertising agencies depend on-

in locating publication addresses along with advertising rates

and requirements. Because these references are all rather large

and expensive (over $100.00 each retail), it is suggested you

inquire at your local library for copies. While they cannot be

taken out, many libraries today provide a reprographic machine

that can quickly copy pages you need from the books. Ask about

it.

"BUSINESS PUBLICATIONS RATES & DATA" - Over 4,00 business, trade

and technical publications, contains editorial profiles, rates,

mechanical requirements, copy regulations, circulation,

personnel, issue and closing dates.

"CONSUMER MAGAZINE & FARM PUBLICATION RATES & DATA" - More than

1,500 consumer and 200 farm publishers. Includes editorial

profiles, ad rates,mechanical requirements, copy regulations,

circulation, personnel, issue and closing dates.

"NEWSPAPER RATES &DATA" 1,600, U.S. daily newspapers, newspaper

groups, supplements and comic section. Includes ad rates, special

features contract and copy regulations, mechanical requirements

and latest circulation figures.

"CO-OP SOURCE DIRECTORY" - Over 2,800 co-op advertising programs.

Each includes eligible media, timing, accrual, participation, ad

specifications, media requirements, aids available from

manufacturers, reimbursement method and more.

"COMMUNITY PUBLICATION RATES & DATA" - All NAAP members, plus

other weekly newspapers and shopping guides. Includes personnel,

ad rates, closing time, circulation and mechanical requirements.

All these books are published by - Standard Rate and Data

Service, Inc.,5201 Old Orchard Road, Skokie, IL 60077. They will

be glad to send you descriptive literature and price lists under

your letterhead request.

"CATHOLIC PRESS DIRECTORY" - A wide variety of American Catholic

magazines with a total circulation of over 30 million. Your

client's product or service advertising programs can find a

highly responsive audience among American Catholic magazine

readers. It's available from Catholic Press Association, Suite

401, 119 North Park Avenue, Rockville Centre, NY 11570.

AS LONG AS YOU HAVE AN "IN-HOUSE" AGENCY" WHY NOT PLACE

ADVERTISEMENTS FOR OTHERS AND POCKET THE COMMISSION?

There's a lot of money to be made through placing small ads for

small mail order firms- and it's the perfect repeat business. The

one thing all have in common is that they must renew advertising

to stay in business. The requirements are simple and initial

investment is minimal. It's strictly a service business - no

stock to carry, low overhead.

For a good idea of how to go about setting up your operation,

write to the below small mail order Advertising Agencies, and

request copies of their Advertising Guide Books. These you can

use for reference in preparing your own ad rates brochure.

 

Chicago Advertising Agency Columbia

Advertising Agency

28 E Jackson Blvd. P.O. Box 1285

Chicago, IL 60604 Richmond, IN

47375

 

National Mail Order Classified Morlock

Advertising Agency

Post Office Box 5 188 W Randolph

St.

Sarasota, FL 33578 Chicago, IL 60601

 

 

HOW TO MEASURE PROGRESS

The growth of an advertising agency business can be measured in

various ways but the most important item that concerns you is the

growth in capital. How much more is the business worth today than

it was a year ago or when you first started it? The capital

section of the balance sheet will show precisely that. It will

help you decide whether the work and worry connected with the

business have been worthwhile. It will let you know whether the

business is stagnant or is declining. It will disclose the

soundness of your financial position. Especially in a small

business there is always a danger of "eating into" capital. If

you take out of the business from month to month whatever money

is considered necessary as operating expenses, you do not know at

any time whether you really have earned that money. A comparison

of capital figures in the balance sheet over a period of months

will show up any tendency to dissipate the agency's capital.

 

The total of assets is also an indication of what progress you

have been making. It represents the total amount of resources

under your control and even though they are partly offset by

liabilities they are still a pretty good measure of your economic

power. For this reason, the size of banks, for instance, is

usually measured in terms of their total resources, that is,

their assets, rather than their capital alone.

FOUR BASIC STEPS FOR EFFECTIVE ADVERTISING

1. THE WORDING OF YOUR AD is the most important single factor.

It's what you say that determines whether your ads work or not.

It pays to give a great deal of time, thought and research to the

actual wording of the ad. Should the ad have a lot of wording in

it, or should it be extremely short? The decision as to the type

of wording is the key to more sales. Headlines must have dynamic

stopping power. The headlines has to get the reader to look at

your ad. Sub-headlines are also important, especially where copy

is long. Not only must your headlines have powerful appeals, but

the body text should have punch to maintain interest and induce

prompt action.

2. SELECT THE RIGHT PUBLICATION or publications to run your ads.

The publication in which you run your ad is the market place.

When your ads appear in the right publication, you protect your

advertising investment. Find out whether mass, class, service or

other types of publications are best for your proposition. Should

you use large circulation publications or small circulation ones?

Should they be aimed at consumer, dealer or particular trade, or

a combination of all? Decide whether you will use newspapers,

magazines, or trade papers. Where you run your ad is many times

the answer to results.

3. BUDGET YOUR ADVERTISING BY MONTH. By deciding how much money

you will spend each month for advertising, you make sure that you

do no spend too little or too much in proportion to the sales

desired and the potential sales obtainable. The correct budget

for advertising has a bearing on your profits. It is always wise

to divide your budget for advertising according to the periods of

the year.

4. DEVELOP A PLAN OF REPEAT BUSINESS from either inquiries or

orders received. It is important to get new customers as cheaply

as possible and then build them up. Know where you're going and

what your sales objectives are. Think out the plan behind the

advertising. Decide what a new customer should cost you and how

to develop that customer into one who will buy from you again and

again.

LEGAL ASPECTS

Effective advertising must be based on a sound product.

Misrepresentation may sell goods, but it also builds ill will.

Since the advertiser who misrepresents his product harms not only

the public but the whole industry as well, organized efforts have

been made to prevent objectionable advertising. One of these was

the model statute against fraud in advertising drafted in 1911 by

the magazine Printer's Ink. The statue has since been enacted by

48 states, in either the original or a modified form,,, and

covers 98 percent of the population of the United States.

Further government control over advertising was achieved by the

Federal Trade Commission Act (1914), as amended by the

Wheeler-Lea and other acts. These gave the Federal Trade

Commission, among others (e.g.,the Postal Service), the power to

prosecute for unfair methods of competition and unfair or

deceptive acts and practices, including false advertising.

Another protection for the consumer is the Audit Bureau of

Circulations; its function is to determine the net paid

circulation of newspapers and magazines. Practically all major

magazines and newspapers which accept advertising submit audited

accounts to the A.B.C.