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How much money do you
want to make? Do you need a steady second
income? Do you want to have your own business, be your own boss,
and make your own decisions?
Are you ready to make a commitment to be
successful--both
financially and personally? The mail order business is the way to
succeed in always.
Whether you're prepared to commit a small
amount of time or all
your time... Whether you want satisfaction of position, financial
security--even social respect.. Then mail order business is for
you.
Today there are hundreds of opportunities
to get into the
profitable mail order business. And, you don't have to be
creative or clever,, or have invented something new. You only
need the desire and determination to achieve your goals.
What do you want from life? Are you tired
of struggling to make
ends meet? Maybe you're fed-up with commuting to work and living
under a time clock. If you like independence, can make simple
decisions easily and are prepared to devote energy to your
project, YOU WILL SUCCEED.
The mail order business is not get-rich-quick
scheme. It won't
make you a millionaire overnight.. But it can build into a
steady, profitable business at home--as big or as small as you
want it to be.
Some of the mail order companies that gross
millions of dollars a
year got started in small ways.. Not only the well-known
distributors such as Sears or Montgomery Wards, but dozens of
smaller catalog houses and monthly mail order clubs began slowly,
testing ads, testing prices, acquiring customers that buy again
and again as each year passes.
Think big and think with confidence. The
only way to truly make a
mail order business work is to MAKE IT WORK FOR YOU. This is a
low-risk low-investment business that can make you HIGH PROFITS.
ACTING ON OPPORTUNITY
It is a proven fact that dozens of small
and large companies make
great profits from the mail order business. And, although there
are some who profit illegally--and get caught--the federal
government promotes mail order enterprises..
Think about what you receive in the mail.
Almost every day you
get flyers and brochures from all sorts of companies selling
magazines, books, clothing, household items---- even vacation
packages. Some of them you may toss away without even looking at;
some of them you may read and some of them you may buy from,
especially if you know the company and bought before.
An honest mail order business is something
to fell proud about.
Just as valid as opening a storefront, this business needs so
little investment that, with perseverance, you almost can't help
but win..
As in any other money-making enterprise,
from working for someone
else to owning and operating your own company, the mail order
business requires energy... But it doesn't take away enthusiasm
or confidence, As a matter of fact, the more positive thought you
put in,, the more rewards can be reaped.
Decide on how much you want to earn, how
much energy you can
devote to this business, and what you want out of it. You can
operate a successful mail order business in your spare time with
a very low financial investment, but it's up to you to make it
work.
WHAT DO YOU NEED?
You can run a small mail order business
out of your home from the
kitchen table.. All you really need is a mailing address, a few
dollars for a classified ad, and a PRODUCT THAT SELLS.
If you're just starting in this business,
you don't need to
invest in elaborate equipment or expensive manufacturing. In
fact, you may find several products to sell that require minimum
investment and bring in a maximum profit.
Once you get going, you'll need the usual
stationery suppliers
such as a stapler, cellophane tape,, mailing envelopes, address
labels, and file folders. You may invest in a file cabinet and a
desk. And, you'll need to use a typewriter or have somebody do
all the typing for you.
Eventually you may need a postal meter,
good quality postal
scales, and storage for the products you sell. But even when you
establish a high profit business, you can still operate it from
home with limited resources.
HOW TO FIND WHAT SELLS
The basic secret to success in the mail order business is to
follow the leader. Especially when you're beginning, why should
you spend the money and time to test products, prices, and places
to advertise?
Start at your newsstand or library. Study
every copy of each
magazine that advertises mail order products. Take a good look at
the classifieds section. Then write dozens of these
offers---especially any offer for something free. Take a look at
the sales literature you get back. You may even purchase a few
products to see what is sold for the money asked.
See the patterns?
If you review past issues of these magazines
in the library,
you'll notice the ads that repeat month after month. Advertisers
who continue to place ads have PRODUCTS THAT SELL. What are these
products? Which are these products? Which ones would you like to
promote?
Consider the trends in the various magazines.
You may notice
several similar ads for the same products listed one after
another.. THEY ALL SELL. And that is where you should begin.
WHAT TO SELL
What products grab you? Which ones would
you like to sell --as a
one-shot, and later as a product line. Maybe you already have a
sound interest in specific products that are solid mail order
products, such as stamps and coins, jewelry or books.
Plans and kits are great to sell to decorating
and handicraft
publications. You may already make something at home that you can
easily write into instructions and manufacture into an
inexpensive kit for do-it-yourselfers.
Mail order is an excellent way to distribute
stock from a retail
enterprises. If you have a store or manufacturing plant,, you
don't need to invest in stock. A simple brochure or catalog to
follow up inquiries is a profitable way to build business.
Specialized information is one of the most
profitable products in
the mail order business. Whether you sell pre-recorded cassettes
or small folios or booklets, you can keep overhead down and
profits high. Mass producing specialized information can be
surprisingly inexpensive--and there's a high demand.
If you want to develop a product line, carefully research what
already sells by mail order ads. Don't take the chance to be
innovative.. Others have tried before you. Take the tried and
true path and sell a competitive product at competitive prices in
the same publications as everyone else.
There are a few rules to follow when choosing
what to sell. First
the profit margin. Don't work with anything that won't bear a
high mark-up per item. Calculating the advertising costs,
products costs and mailing, you have to make a good profit for
each order,
Consider the weight of the product and
the mail-ability. Can you
place it in a manilla envelope and mail it? Padded mailers or
small boxes are also easy to mail/ Think twice about large or
heavy items that are expensive to send.
Is the product a regular in the publication?
Do the other mail
order businesses carry this product? And does it sell profitably?
Get some samples from competitors, then
contact the manufacturers
and find out about the profit margin.
Don't try to distribute novelties, gadgets
or low cost items
through mail order. The catalog houses and other larger mail
order enterprises have that market covered,
Can the product be sold in retail stores,
and is it? Unless the
product is special, it won't maintain a high mail order trade if
it is readily available at the local stores.
Do outside salespeople sell the product?
Even if they are not
sold in retail stores, steer away from items that are solicited
for by telephone or personal sales calls.. Also avoid any items
that are distributed by persons from the manufacturing plants to
small retail outlets.
Your product must be easy to advertise.
In order to get inquiries
through classifieds or display ads,, you must be able to describe
the product effectively with a few words.. New inventions rarely
sell well by mail order.
Finally, consider the potential of the
product. If you begin with
monogrammed bags,,, do you want to continue with an entire line
of luggage, bags and cases? Where can you go after you have
success with your first product? If you are producing and
distributing information, what is the potential for more products
in the same subject matter?
A basic element of the mail order business is building repeat
business. If you keep within a similar line of products, you can
sell to the same customers time and again.
Eventually you'll distributed many similar
products through mail
order. You may find one products through mail order. You may find
one product to be a seller year after year. And you may be
content with that. Or, you may substitute your stock to improve
the potential sales and actual profit.
Think carefully about what type of product
line you want to get
into. You'll be living with it for a while, and you must have
enthusiasm. Because it is through your product that your desires
will be fulfilled and from which YOU WILL MAKE MONEY.
DON'T CHEAT
You don't need a special permit or license
to sell products by
mail order. In some states, you will need a special tax
identification number and will be required to collect sales
taxes.
The mail order business is changing. There
was a time when some
of the advertisements were come-on for other products, fell short
of their promises, or were just plain frauds.
The federal government and the postal authorities
are especially
strict with mail order businesses today. Primarily because irate
buyers have no other recourse, but also to clean up the industry,
any enterprises even slightly suspect is investigated.
If you are serious about operating a mail
order business for a
long time, don't fall short of the law. The authorities can shut
down an operation immediately, and fraudulence is prosecuted.
It is against the law to operate a lottery
or chain letter scheme
by mail. Both the advertisements and the sales literature for
imported products must say that the product was imported.
And, you must ship within thirty days to
receiving an order or
offer a refund.. You then have an additional thirty day grace
period, but then you must refund the customer's money or ship the
product.
Aside from the fundamental laws, the authorities
will judge on
willful misrepresentation. Almost all advertising points out
benefits rather than drawbacks, but your product, but your
product must reasonably do what is advertised, or be the quality
it is purported to be.
Naturally there are shades of gray in all
these areas, but if
your product lives up to the ads and sales literature, and you do
not gyp the customers in any manner, you'll never have trouble.
YOUR PRODUCT
What's the least expensive way to produce
your product and
fulfill orders to make a high profit? If you are selling
information, first test the market potential with photocopies of
the report or booklet. Or,, you may be able to revive an out of
print publication.
If you want to distribute a product, contact
several
manufacturers that can make the merchandise and get competitive
price quotations.. Investigate ways to make the product with less
expensive materials without losing quality. And check on the
reputation of the firm. Is their merchandise known for quality?
How soon can they deliver the goods once you have ordered?
For the first few months of testing, you
may have to pay higher
prices for the products in small quantities. Don't invest in
large quantities until you are sure there is a demand.
You might try to sell a few handmade items
first. Keep an
adequate stock to fulfill orders, and consider mass production
once the orders show the demand.
Or, you can work on consignment with somebody's
product that is
perhaps sold elsewhere. You try the product and make sales. You
get a percentage and the other people get a percentage.. Then you
work out a viable business relationship.
WHAT PRICE?
When you investigate the products you want
to sell, consider the
price you can get for them. Is there an adequate profit margin?
How many times might a customer purchase your line of products in
a one-year period? Your profit line is the guide for deciding not
only what price your product at, but also the manufacturing costs
and the feasibility of the product itself.
The only way to know how to price the product
is to test the
highest prices the market will hold.. To test prices, you send
sales literature with two prices. The results of the sales will
tell you which is best. For example, if you get twice as many
orders of a product at a lesser price, it will be a high profit
over a long run to keep it at the smaller price.. However, if
there is no big difference in the number of orders received, go
for the higher price.
Consider the potential of your product
and the product line.
You'll want to expand into similar products and you'll want to
make a tidy profit from the time you invest.
WHERE TO ADVERTISE
Advertise where the competition is. If
there is another
classified with the same or similar product, place you ad in the
same publication. Just as you followed the leaders in the choice
and pricing of your product, follow the leaders in advertising.
Even though some publications cost more
to place ads than others,
don't try to save money in less expensive places to advertise.
Inn a long run, your ad will pull the best responses where it's
been tested and proven before.
Don't be tempted to place an ad in a magazine
that does not have
products similar to yours--even if you have a hunch or think it
may bring in stay requests. For a beginner, follow the
professionals and list where they do.
There are two types of advertising for
publications. Classified
ads. Which are run together in a section at the back of the
publication are only for words, and usually are reasonably
inexpensive to place.
Display ads, or space ads, are the advertisements
that run
throughout the publication. They are best use if you need to show
a drawing of your product.. Although they are more expensive than
classifieds,, your product response may do better with the extra
investment.
PLACING CLASSIFIED ADS
Classified ads are the bread and butter
winners for the mail
order business. Your dollar investment per word in a classified
will pull many dollars in responses.
The best way to use classifieds is with
a two-part approach.
First you place a small ad that describes your product or
service. You give a full address and information, but mention
free details, or free information. Don't ask for money or give a
price.
From the inquiries in response to the ad,
send out a direct mail
piece describing your product more fully--giving a full sales
pitch and a coupon. It is this sales pitch that is most effective
in generating orders.
Writing classified ads is easy. But again,
do what the others do.
REad the classified ads.
First there is a lead-in,, or headline
-- a word or two that
grabs the reader's attention.. This followed by a promise--some
benefit the product offers. Then comes the description of the
product itself. Finally offer a guarantee and push for action...
Place the classified ad in the publications
you choose under the
categories that seem most effective for your product. Give it at
least three months to test it.. Then watch those inquiries turn
into orders, and the orders turn into money.
RUNNING DISPLAY ADS
If your product will sell better with a
visual representation
such as a line drawing or photograph, then you'll do best with a
display ad.
Display ads come in all sizes--from one
inch to a full two-page
spread. And choosing the size to run your ad will be a matter of
testing the responses.
You should use a space large enough to
include a coupon.. It has
been proven that people respond faster if there is a space to
fill out their name and address and place the order. Whether it
is convenience or the simple indication of the type of
information to include, mail order businesses find that
three-fourths of the orders from display ads will respond with
the coupon.
As with a classified, use a catchy heading
with the display ad to
grab the reader's attention. Along with the illustration and
coupon, describe the product and point out some of the benefits
of owning it.. And be sure to mention a guarantee.
The rule of thumb for deciding how big
to make the display ads is
to test the responses. Increase the size of the ad until it costs
more than the profit it brings in.. Some products don't sell any
better with a larger ad; others do.
OFFER A REFUND
An important element in all advertising,
and especially in mail
order, is to offer a refund if the customer is not satisfied. The
reason is simple. More people will respond to an ad that backs up
its claims with a guarantee.
If a buyer can return the product for a
refund, then the order is
a low risk. Since your product will fulfill the promises in the
ad, you will have a low refund rate. For those returns you do
have, fulfill the requests promptly. Just because that specific
product was returned does not mean you lost a potential customer.
USE AN ADDRESS CODE
Whenever you place an advertisement, whether
classified or
display, you need to code the address so you know which ad the
inquiry came from.
This coding system is called keying the
address. Take a look at
the classified ads you've been studying. See those codes?
Department WD-5, Division 9A; Drawer 4B. These are all address
keys to use in recording and tabulating responses. They are most
important in testing the pull of your ads.
You can use any combination of letters
and numbers to code the
address. Most businesses use the words department, suite number,
room number, division or drawer. A simple key is the initials of
the name of the publication and the number indicating the month
of issue. But you can use any code that's easy to keep track of.
DIRECT MAIL
Once you receive inquiries from classifieds
ads,, and start
fulfilling orders from display ads, follow through with direct
mail pieces that sparkle with inviting offers. The purpose of the
two-step approach in classifieds is to
get lists of potential
buyers to sell to. Just as a salesperson gives a pitch with the
product, you should also sell your offer with effective sales
literature.
Most mail pieces consist of sales letter,
a brochure or
circular, and a reply card or coupon to cut out of the circular.
Many people will respond directly to the
product alone and order
regardless of the sales literature. But for those thousands of
others who want to know more about what they're buying, you have
to make the difference between throwing it away and sending in
the coupon and a check.
The sales letter should be personal and
direct. Talk to the
potential buyer honestly, telling that person the virtues and
benefits of the product. Point out the features and uses. And
underscore the appeal for action.
Testimonials are effective ways of selling,
especially if you
need to convince the potential buyer of the actual results of the
product. But be sure these can be backed up by real people who
can make these claims.
Writing effective ways of selling, especially
if you need to
convince the potential buyer of the actual results of the
product. But be sure these can be backed up by real people who
can make these claims.
Start small. Use colored paper to print
up several hundred
one-piece circulars that describe your product and include a
coupon.. You don't have to create an elaborate four-color
photograph of the product; simply describe and illustrate the
benefits and features of the offer.
Whether you use a one-piece circular, a
full color brochure, or a
forty-page catalog, INCLUDE AN ORDER COUPON. The coupon is the
most important piece in the direct mail literature. It makes it
easy to place an order. In a few simple words, the buyer knows
what the product is, understands that it is refundable, and
expects to receive what is advertised.
Direct mail pieces are the best way to
follow up on your customer
lists. Any inquiry you receive is a potential buyer regardless of
any orders made. If your first mailing didn't prove a response,
follow up with subsequent mailings.
You'll have to test to see how often these
follow ups are
effective. Some mail order enterprises mail offers several times
a year; others only yearly catalogs.
TESTING RESULTS
How do you know which ads pulled best?
Which magazines gives you
the best dollar-for-dollar response? What price is the most
profitable to sell the product at? Which sales pitch works best?
Keep a complete record of all the inquiries
and orders, and make
comparisons to determine the best roads to take.
Testing is the hidden feature in mail order
that determines
success.. And testing doesn't need to be costly or draining to
your profits. The best attitude towards testing is as a game..
Draw the limits of your risks and make different turns in the
road when it isn't profitable.. If you consider testing for mail
order like a maze, you'll be the one to find the success.
One of the best features of the mail order
business is that it
doesn't require a large financial investment. So, each step of
the way that you test, going ahead with high responses and
discarding low responses, you have little to lose and EVERYTHING
TO GAIN.
One of the elements you need to test is
the pull of the magazine
ad. Compare each publication with the next. Which ones are the
most profitable? Of course you'll need to test the price.. How
high a price can you ask for a product without getting a
tremendous drop-off in orders?
If you are using display ads, you may be
testing for which size
pulls the best response for the money you invested.
Another element that is tested is the ad
copy--especially the
headings. You may want to test a few different headlines to see
which is the most effective.
The obvious thing that is tested is the
product itself. The most
clever ad at the most appealing price will do nothing if the
product won't sell. And if your product is not successful, drop
it and try something else. It's not worthwhile to put in so much
effort for something that will never make it.
KEEPING RECORDS
The way to determine test results with
a record sheet.. Use a
separate sheet for each address key you used. At the top of the
paper. include the vital information such as the publication the
ad was placed in;; what type and size of ad was used; how much
the ad cost; which ad copy was used; the name of the product; the
price of the product.
Separate the tabulations into two main
categories: inquiries and
orders. If you use a display ad, you should have fewer inquiries
than directly from a classified, but you need to keep track of
all responses.
Along the left-hand column, vertically,
write numbers
consecutively. These will correspond directly to the days you
received responses, starting with the first day you received an
inquiry or order.
The inquiries section should be divided
into three columns of
date received, number received and a running total to keep track
of how many to date.
The orders section should be divided into
date received, daily
number of orders, total number of orders;daily number of sales;
and total cash sales.. The totals will give you an up-too-date
indication of how well your ad is doing.
Your record sheets will give you enough
information to decide if
you advertising investments are paying off. To figure profit,
merely subtract the cost of the products and the ad from the
total cash sales. How does this compare with your cash
investment? How well does this ad work?
By comparing the number of inquiries to
the number of orders, you
can find out how effective your sales package is.. What
percentage of people order from the sales literature? How can you
increase it?
FULFILLING
Sending out the orders is the fun part.
Depending on the type of
product you have, you may pre-package a quantity to keep on hand.
As you receive mail,,, record the inquiries
and orders
immediately. An easy way to do this is to sort the mail by
address keys and pile it with your record sheet. As you open the
mail,,, you might staple the orders with the envelopes so you
know where the response came from.
Many mail order businesses have their own
small computer services
for labeling.. Now that home computers are getting less
expensive, it may be a good investment once you have a sizeable
number of incoming mail pieces.
You can type the labels out with carbon
copies to be made for
future follow-up mailings. Or you can photocopy sheets of labels
if you have that many each day.
If your customer doesn't include a zip
code, be sure to look it
up and send your package back with an accurate and compete
address.
different mail order companies have different
methods of filing
customers. You can create separate lists of known buyers; lists
of people who respond to specific ads in certain publications;
lists of people who ordered specific items from display ads.
Or you can keep 3 x 5 card system that
includes all the pertinent
information for follow up.
EXPANDING
You have a good product; you've placed
a successful ad; you are
making a nice profit. Now what? don't be too eager to expand the
business into untried areas or products. The only way to build
your mail order business is slowly, with thought and careful
testing.
The first place to expand would be with
another product. You can
send out sales literature to the people who brought the first
product and to the people who sent in inquiries but did not buy.
Or you can expand your advertising. Place
the same ad in several
known publications. Perhaps you are ready to try a larger display
ad rather than a classified.
What about the product itself? If you've
had a heavy response,
mass producing is the only way to profitably meet the demand. If
you have a product, go back to the manufacturer and renegotiated
on larger quantities.
You might have been selling photocopied
information that you
originated. Although typesetting and printing can be expensive
endeavors, they can be worth it if you know you can sell five or
ten thousand copies.
As your product line gets bigger--even
half a dozen items--you
can produce a small brochure or catalog. Special books are often
sold by mail order form a folded sheet that serves as a catalog..
There are pictures of the books and a description
beneath each
picture.
Your products are also a natural for a
catalog. Perhaps you are
selling special handmade items and have successfully expanded
into dozen. You can get a designer to draw wonderful line art
that highlights the best of your products and makes them
appealing to your customers.
The mail order business is a unique opportunity
because it is
specially tailored to your sensibilities. You can sell the
products that appeal to you and that you feel are worthwhile. And
you can have a one-to-one relationship with the people who order
the products.
You choose products to add to your line
and you choose ho much
time and money you want to invest. It is through your own desires
that it becomes successful.
THE PROFIT MARGIN
The final word in the mail order business
i how much profit is
made from your efforts. You are not in this business to break
even or have your address printed in a magazine. You are in it to
distribute good quality products at fair prices to a hungry
market.
Thousands of items are successfully sold
by mail, and many by
small home businesses run by one person. When you can choose a
product with a high mark-up, place low cost ads that produce high
response, and turn curious inquiries into solid orders, YOU HAVE
IT MADE.
Go ahead--test it. Start with a small classified
ad for a few
months. See what the inquiries bring in. Mail back some sales
literature from the orders. You'd be surprised just how easy it
is.
If you need specialized LEGAL advice or
assistance on this
subject, the services of a professional person is recommended.
