LEARN TO RECOGNIZE LEGITIMATE OPPORTUNITIES!

By: Terry Thomas

Advising mail-order newcomers to avoid rip-offs is like telling someone to jump in a lake and avoid getting wet! If you jump in a lake, you will get wet. And, if you enter the crazy world of mail order, you are going to get ripped-off sooner or later, most likely sooner. While many companies are honest and trustworthy, mail order is full of scam artists that will try to sell or promote anything just to make money for themselves. The truth is, these scam artists rarely last in the long run. But, they take a lot of people’s hard-earned money before they fade away.

So, you wonder, how can one avoid getting taken by unscrupulous mail-order promoters? The truth is, it is not easy. But, there are certain things to look out for when investigating moneymaking opportunities. First and foremost, adhere to the old truism uttered so many times, by many different people - “IF SOMETHING SOUNDS TOO GOOD TO BE TRUE, IT PROBABLY IS”! Face it, there is no such thing as a “free lunch”. If you expect to get rich overnight without putting forth some real effort, then go no further because you will only waste your money. However, if you are willing to work hard, work smart, and persevere, there are legitimate opportunities out there for you. Some of these can make you wealthy beyond your wildest dreams. The trick is to try as many different programs as you can, until you find one that works. Once you do find a program that works, put all your efforts into making that program successful!

Once you start to investigate mail-order opportunities, beware! Try to investigate the integrity of each offer and the people promoting the offer. While there are many legit and possibly profitable exceptions, you should be leery of any offers that employ the following tactics:

· The “Blind Offer” - This is where the promoter never tells you just what it is they are selling. They only tell you how rich they will make you. This is the oldest trick in the book. Nobody can promise you that you will make a certain amount of money, or that their “plan” will work for you. If it is not clear from the ad or sales material exactly what it is you are buying, do not waste your money and time.

· Payments To Be Made Via Cash Only- Watch out! They want cash only for a good reason! Checks, credit cards, and money orders all leave a paper trail. Cash leaves no trail! The seller or promoter can take cash, send you garbage, or nothing at all, and there is no way for you to find them if they do not want you to. Also, swindlers often want cash to avoid paying their share of income taxes. Look, nobody likes paying income taxes and I get it. However, from a LEGAL standpoint you could get yourself in trouble with these types of operations. One exception to this is where the cash amount is very small, and is for more information. For example, if someone asks for $5.00 to cover the costs of sending you more information, you can send it to them, PROVIDING THEY ARE A LEGITIMATE COMPANY. The reason some of these people ask for cash for small amounts is because the cost of processing checks, as well as the cost to recover on bad checks, is prohibitive for such a small amount. So, you can send cash if you want to, but be careful - and never send to a company that you are not sure you can get in touch with if you need to!

· Claims Program Is Legal, quotes Postal Titles or Laws - The program is most likely illegal! These scam artists try to misquote the laws or offer phony testimonials and double talk! Any program that requires the exchanging of name positions on a list, or offers a “cheat proof” program is most likely promoting an illegal chain letter, pyramid scheme, or other shady program. Be leery of “gifting programs”, or other programs that require you to send money to one or more people on a list, while your name moves onto the list. Not only are these programs illegal, they will NEVER work as designed.

· Claims you will get a 5% or better response - No promoter can promise what your response will be. The truth is, the very best programs get only a 2-3% response. If they promise you more, be careful!

· Do not give an address or phone number- The reason is simple. They do not want you to know who they are! While it is common, and perfectly OK for a company to use a P.O. Box, or even withhold a phone number, you want to be sure that you can get in touch with them if you have to. Be sure you are confident that you can reach the promoter if you need to. Otherwise - watch out! Legitimate companies are proud of their programs, and will be willing to let you ask for more information. They make it a point to advise you how to reach them.

· Claims to be “Secret” or “One Of A Kind” information - The truth is that most money making programs are based upon principals that have been around for many years. There is no “secret” or “never seen before” method, only variations of systems that have already been established. Do not fall for the hype of these claims. Remember, if you do not know EXACTLY what it is that you are buying, do not waste your money without investigating further. Legitimate companies are proud of what they offer, and will have no problem with supplying you additional information!

The Following is a guide for you to use when evaluating mail-order programs. Use it to evaluate the offers in which you may have interest!

· Offer a believable product or service, clearly tells you what you are buying.

· Rarely use high pressure tactics

· Offer sounds workable, takes time and effort, requires commitment

· Can make reasonable amount of money, in reasonable time period

· Based on as known method, or one that seems workable, does not seem “too good to be true”

· Avoids wild claims - clearly explains product benefits

· Use a clear headline to get you to read the ad, which clearly reveals the offer in detail

· Does not need to state the legality of the offer - it is clearly legal

· Probably one of many companies offering the product - product available when you want it

· Company will answer your questions BEFORE you buy, will accept checks

· May use some believable testimonials, Offers clear, clean, money back guarantee

· Company offers more than one product or service - looks for repeat business

· Sells a hope or “pie-in-the-sky” promise. Not clear as to exactly what it is you are buying

· Often use high pressure sales tactics

· Sounds too easy, anyone can do it, little or no work involved, requires little commitment

· Claims you can make huge amounts of money in little time “Secret Method” or gimmick, not revealed in ad, “too good to be true”

· Makes wild claims, says little of product, promises great riches

· Use trick headlines and ad copy to hide what it is that they are actually selling

· Claims offer is legal, cites U.S. Postal Title 18 or other legality

· Claims to be one-of-a-kind product, available only for a limited time. Claims to be a “secret” product or plan

· Will not answer questions or inquiries until order is placed, company is often hard to find or get in touch with

· Uses many outlandish and bogus testimonials claiming success, conditional or no guarantee offered

· Company offers one product for quick sales, no repeat business 

By: Terry Thomas

In mail-order, it is a known fact that your largest expenditure, and the most important for your success, is advertising. Without effective advertising, it does not matter how good your product or service is, it will not sell. There is an old saying that says if you do not advertise, a terrible thing will happen - NOTHING! That’s right, you must advertise, and, do plenty of it! Now, advertising is expensive. But, how would you like to save up to $170.00 for every $1,000 of advertising you purchase? This can add up in a hurry, and will allow you to invest in even more advertising to promote your products and services.

There is a simple, legitimate way to save up to 17% on your advertising costs which many people do not take advantage of. Some do not realize the opportunity exists, and others believe it is too difficult or complex. What is it?  Form your own advertising agency!  This is a common practice, and it is not difficult to set up.

Once you form your own advertising agency, you can take a discount allowed by almost all publications. A 15% discount is allowed if the ad is placed through an advertising agency. An additional 2% is given by many publications if payment is received up front for the ad, or within a given 10- day time period. Look at the ad rate sheet for any given publication to find out what their requirements are for a cash discount.

While not all publications give a 2% cash discount, most will give the 15% advertising agency discount. This is given for classified ads as well as display ads. The savings can really add up, giving you more available funds to place additional ads! Think about it, if you place $1000 worth of advertising, your cost will be only $850 by placing the ad through your own in-house advertising agency. If the publication gives a 2% cash discount, you save an additional $17. So, your total savings will be $167! As you can see, over the course of a few months, your savings will be substantial!

As I stated, it is not difficult to set up your own in-house advertising agency. In fact, it is quite simple, and perfectly legal. All you have to do is think of a name different from your company name, and get some letterhead printed for your new ad agency. When you submit your order for advertising, simply send it in on your ad agency letterhead, and claim the 15% discount! You should submit the ad using an “Advertising Insertion Order Form”. This makes the ad order more professional looking. Be sure that the insertion form looks professional.

An example of a professional looking Advertising Insertion Order Form is included in this report. It is to be printed under your new Advertising Agency letterhead. This form is one example of an ad insertion form, and can be adapted to meet your particular requirements.

Your new agency will not have to be registered unless you use it to generate income or expenditures. You can open a checking account under your ad agency’s name, or simply pay for the ads via money order so that the publication recognizes the agency separately from your company. Do not worry that the publication knows it is an in-house agency. It is a common practice, and almost all publications will honor the discount. So, take the simple step and form your own in-house agency right away! It will save you a lot of money!  You can even place ads for others and make a profit! Once you establish your agency you can solicit advertising orders from others and place them in the major publications for a discount. You could charge the full price, or give the customer a discount of 5-10%. You then keep the profit. Another thing you can do as a legitimate, recognized advertising agency is to negotiate LOWER advertising costs with the publications. They will negotiate with you once they know that you are for real!

Sample Advertising Insertion Form

YOUR LETTERHEAD GOES HERE

AD INSERTION ORDER

Date: Order No.:

_____This is an order for a Classified Ad.

_____This is a space order for a Display Ad.

Name Of Publication:

Date Or Issue In Which Ad Is To Be Run: 

Number Of Words Or Space Size:

Cost Per Inch Or Word:

AD Copy:

(Your ad copy goes here. For Camera Ready display ads, put “C/R ART Enclosed” and enclose your ad)

Category/Heading for Placement: 

Gross Cost Of Ad:  _________________

Less 15% Agency Discount: _________________

Net Price For Ad:   _________________

Less 2% Cash Discount:  _________________

Total Due:   _________________

Authorized By  ____________________________________

There are a number of difficulties you may encounter as a mail order entrepreneur that can destroy your business in a hurry. However, you can avoid some of the pitfalls of operating your own business by recognizing and avoiding the following common mistakes.

1. Figuring that the one “How-To” book, booklet, or report that you read about starting a mail order business told you everything you need to know. You never really stop learning about this business as long as you’re in it, and you need to continually seek out new information and advice from those more experienced than you.

2. Planning your entire business around only one product or service. It is best to have several different items to promote; give your customers a choice. And always have something to follow-up an order or inquiry with. It costs too much to obtain the name sand addresses of potential customers to simply try to sell them one item, one time.

3. Spending too much of your advertising money on only one or two untested ads in only one or two untested publications. Start smart... test your ads (2 to 3 concurrent insertions) in a variety of publications that are likely candidates for the product or service you are selling. This means studying many different magazines, newspapers, adsheets, and so on to determine where your ad will best fit in and has the best chance of being seen by readers who will be interested in what you are offering.

4. Believing that your advertising only 3 or 4 times will be enough to establish your business and earn your fortune. There is one theory that states that people need to see your ad an minimum of 3 times before it makes an impression on them. Another theory states they must see it 7 times!

5. Failing to adequately “key” your ads so you know which ads in which publications are pulling inquiries or orders for you. Without this knowledge, you’ll continue to throw your money away by advertising in totally unsuitable and unresponsive publications.

6. Trying to sell a $10 or more item in a small space or classified ad. Not enough information comes across in a small advertisement; people won’t part with this kind of money on the basis of your 40 to 50 words. It is best to ask for inquiries and offer free information. Once you have the customer’s name and address, use your full size circulars, brochures, and sales letters to convince your customer of the benefits you are offering.

7. Not keeping adequate records on the customers who do respond to your ads. These people have demonstrated their interest and faith in your company and your product. If they have bought from you once, they may very well buy from you again. Keep track of their names, addresses, date of sale or inquiry, what ad(s) they responded to, item(s) bought from you and amount paid, and then mail your promotional pieces to them periodically. Your customer list can be one of your most valuable business tools.

8. Not using proper postage on your mailing pieces. You should weigh everything you’re mailing first class (an inexpensive postage scale cost about $10.00), and then affix the correct stamps. Most people overestimate how heavy their mailing piece is and put two first class stamps on an envelope that only weights one ounce. Wasteful habits at such a basic level in mail order can be the start of financial ruin.

9. Thinking that how your mailing piece looks doesn’t matter, it’s the content that counts. The content of any circular, program, report, booklet, etc., is of course important, but a poorly laid-out job, badly copied piece which is barely readable does a poor sales job, no matter what it says. The “look” you are presenting matters more than you may realize.

10. Believing that once you have your customer’s money, you have done your job. Always respond quickly. Mail out the order or requested information within 48 hours. Take care of any problems or complaints immediately; refund their money if they are dissatisfied with their purchase. Always give your customer more than he expects, and he’ll want to do business with you again in future.

Select an area away from family activity. The perfect space is a separate room (or perhaps the garage), but any area will do, if it can hold all the business supplies and equipment, and also provide enough work space.

2. DETERMINE HOW MUCH TIME TO SPEND ON THE BUSINESS

Many people start a home business on a part-time basis while Others start full-time when family and finances allow. However you begin, figure out how may hours per week you can devote to the business. 

Eliminate any business that isn’t appealing or doesn’t fill a need people have. For ideas on different types of businesses, consult the end of this article. Other ideas can be found in the source material listed at the end of this article.

The three basic legal forms are sole proprietorship, partnership, and corporation. The most common is the sole proprietorship. As its name implies, a sole proprietorship is owned by one individual. It is the oldest form of business, the easiest to start, and the least complicated to dissolve. 

There are three ways to finance start-up costs: use your own money, obtain a loan, or find investors. If possible, it is better to start small, use your savings, and not worry about repaying a debt. 

Spend a few weeks researching home-based businesses. A library or bookstore can provide numerous books on business basics, and on the specific type of business that interest you. 

Find out how your property is zoned, the call City Hall and ask what regulations apply to home businesses in that zone. Also, if you rent or live in a condominium, check the lease or homeowner’s association rules to be certain a home business is allowed.

If the business you choose is different form your name, file an assumed (or fictitious) name certificate with the county. You are notified if another business already has that name, so you can select a new one.

A good business plan clarifies your ideas and establishes a plan of action. 

If you are the sole proprietor of the business and have no employees, you may use your Social Security number. If you have employees, you must obtain an Employee Identification Number (EIN) . 

If the product or service you sell is taxable, you need a state sales tax permit. You also use this tax number when your purchase items for resale.

It’s very important not to overlook any necessary license or permit. Call City Hall to find out what is need for your particular business. 

Spend time on the color, design and paper for these items. They make a definite impression-good or bad- on the people who receive them..

Call several banks to find out what services they offer, and what minimum balance, if any, must be maintained to avoid paying a service charge. 

Put together a simple and effective bookkeeping system. Consult with an accountant if you are not experienced.

If you comply with basic IRS guidelines, you can deduct a percentage of normal household expenses as a business expense.

Make a list of everything needed to start the business, but before you buy anything, look around the house for things you already own that are usable. Purchase what is absolutely necessary for start-up, and wait until the business is off the ground to get the extras.

If you cannot afford a separate business line, investigate the telephone company’s regulations on using your personal phone in a business. 

Using a post office box as the business address downplays the fact you are home-based. It also prevents customers from dropping in at all hours.

Check with your homeowners insurance agent about a rider for your existing policy or the need for a separate business policy. 

Set up a work schedule so you won’t get side tracked. 

Creating and operating a home business is a wonderful and rewarding challenge. The satisfaction is not only in the money earned, but in doing what makes you happy.

No other business venture seems so inviting, or attracts so many people than that of selling via mail order. On the surface, it appears to be an easier and faster way to become rich than almost any other method of doing business. All the people in the world are your potential customers; you work from the privacy and comfort of your own home; you set your own working hours; and you answer to no one but yourself.

Ideally, you should have a product of your own—something you can produce at very low cost, and sell at top price. If you are buying something, advertising and reselling it, in order to realize a profit, you have to mark it up at least 500%. This is not an unreasonable mark-up for mail order sales.

Your product has to have mass appeal, and it has to be something not readily available to your prospective customers except through you. The product should be such that you “carry an inventory” without worry of spoilage, aging or other damage. It should be something you can send through the mail—deliver to your customer—for next to nothing in relation to your selling price.

The best moneymaking product of all is a “How-To” report such as this one. You don’t have to be a literary genius, or even an experienced writer to write one of these reports. In fact, the easiest way is to buy a set of these reports—read them each over, set it aside and write a similar one with more elaboration or from a different point of view. Give your report a commercially appealing title, set a price for it, advertise it widely in a number of nationally circulated mail order publications, and you could have something that will continue to bring in money for you for many years to come.

Now, if you have bought the reproduction rights to the reports, you simply rewrite them, put new titles on them, make up a new advertising circular, and send them out as new reports each year. There are a number of mail order self-help reports that have been making the rounds for the past 25 years in just this manner.

Just because you haven’t got the time or the tools to write one of these reports is no reason for not producing one. If you have an idea or the background material, and the confidence that such a report will sell—get in touch with someone who specializes in this kind of writing.., and have them put the finished product together for you. Generally, the fees will run to $100 per page. But this is an “incidental fee” indeed, if you come up with something that has the potential of bringing in several thousand dollars per year for the next ten years or so. Remember, once you have it together and written, you just continue making copies of your original and filling prepaid cash orders for as long as you wish to stay in business.

You should also have advertising circulars, a catalog or a “follow-up” offer for every order you get. Many people make the mistake of “sending their whole store” in response to every inquiry. When you receive an inquiry to your advertising, you should have a prepared sales letter describing the item you’re advertising, and perhaps a circular listing in catalog style some of the other products that tie in with the product of your sales letter. This is known as the “Featured Selection Plus Alternates” approach.

When you receive an order for the product you’ve been advertising or featuring in your direct mail efforts, include one of your product catalogs in the package with the customer’s order. The most effective practice is to include an advertising circular or brochure of a leader item or special-of-the-month, and your catalog. The main thing NOT to do is include more than a couple of separate “featured selection” circulars. Keep your eyes on how the big mail order houses do it, and duplicate their operating plan within your own means.

The important point to remember here is to be sure to include something different—something new—something your customer has not seen or been offered a chance to buy—with each contact you make with him. Once you’ve broken the ice and got him spending money with you, continue showing him products of a related nature that should stimulate his appetite for greater success. For sure, he’ll never be more in mood to buy from you than when he receives something he has ordered. So every time you fill and send out an order to a buyer, include an opportunity for him to buy even more from you.

Selling your reports depends on your advertising. You have to get the word out that you have “money-making information” available for sale. Start out small by using short classified type ads. Look at how the established mail order report sellers are doing it, and copy their methods. Do not copy their ads—instead, use them as idea stimulators for your own original copy. Place an ad in one of the largest circulation publications you can find, then use the money that comes in from the first ad to place similar ads in three or four other publications.

One of the insider secrets of the mail order business is in multiplying your advertising exposure. This means simply that you start with an ad in one publication, and from there, expand your exposure by advertising in more publications. Be patient, and wait for the returns from your current ads, then use that money to increase the number of people who will have a chance to see your ad. It’s as simple as that, and it works every time. Try it and see for yourself.

All of this means as you are getting started with a new mail order business; you have to reinvest all your business income back into the business. To do otherwise is a straight line to business failure.