How Not to Start a Mail Order Business

 

There are hundreds of books, booklets, reports and experts who will tell you the right way to get started in mail order. Each reveals what one author either believes to be the best method or at least one that sounds good enough to sell a few books or reports. This is probably the ONLY one that tells you what NOT to do! It also may be the best advice you can get at this early stage.

The most lucrative target for those who sell mail order setup kits, plans and dealerships are newcomers, especially those considering mail order for the first time. These are the ones who haven't yet sent off for dozens of offers and had a chance to compare them. These are people who for one reason or another want to change there line of work. They could be retiring, recently laid off divorced or house bound. Or, they may simply be looking for something different. Some even believe they can get rich overnight Those in the "get rich overnight" category are normally in an out of mail order fasts (and often "lose their shirt" in the process).

This report list some of the major "no-no's" along with a brief explanation of why they usually don't work. Notice the word "usually." No matter the game, someone always wins -even in crooked card games. In most cases, however, the only winners are those who control the game. When we say "don't do" these thins, we mean if you DO, the odds of your coming out ahead are not good.

1. DON'T pay for a book distributorship. We refer to those big ads offering dealerships to "represent the company." The normal the up-front fee is $50 to $200 for the privilege of buying from them. Although some of these "publishers" have exclusive rights to some books, you have no way of knowing how long they've been on the market or how many others are trying to sell the same books. Shop around! Buy at true wholesale from publishers who charge for merchandise, not dealerships.

2. DON'T base a business on drop-shipping. Dealers who stock their own merchandise pay about 50% less than those who buy piecemeal and have it drop-shipped. You simply can't complete! Drop-shipping means you are not in control of what is shipped or when. Also, you can never be sure suppliers don't include their return address (which cuts you out of the picture). Drop shipping is for testing and supplementing you inventory, not your "bread and butter" business.

3. DON'T buy mailing list unless you know what they are. Many mailing lists on the market today are little more than phone book address (especially the cheap ones.) Others may be opportunity seekers who may have asked about something entirely different from what you offer or the names may be old. The average American moves every five years. This means 20% of any mailing list a year old has probably moved; 40% if the list is two years old! Some mailing lists out there are in excess of five years old. They're not a bargain at any price! Know who you but your lists from and how many of your competitors use the same list for similar offers.

4. DON'T rely totally on mailers for your business. Use mailers when it suits your purpose but be aware of how they work. The lowest rate bulk price is for 3.3 ounces (not 1 oz as in 1st class). Therefore bulk mailers can include up to 16 full size sheets in each mailing "piece." That's up to 31 pages of competition, even if your mailer is totally honest and doesn't include competing offers in the same envelopes. Bulk mail is neither forwarded nor returned to the sender when undeliverable. A bulk mail doesn't know how many "nixes" (undeliverable) there are in any single mailing unless they include a notice on the envelope indicating "return postage guaranteed" (which they seldom do.) Watch out for "too cheap" offers!

5. DON'T follow any plan instructions to the letter. Some plan sellers even tell you where to advertise; others include ads and circulars. Be aware that everyone else will be doing exactly the same thing! We have seen as many as 47 identical ads on the same page of a national opportunity magazine! The only difference was the return address. Of course, this was a classic scam but the message is clear. Whatever you do in mail order apply common sense and your own style. The objective is to stay with the group yet be enough different to give your customers a realistic option.

6. DON'T invest before investigating. Yes, those big ads do look great and sound foolproof. That's because they are written by professional copy writers! they know exactly which buttons to press to entice you! they talk about being your own boss, talking vacations, sending the kids to college an getting that new car: Mom and Apple Pie! trouble is, most professional ad writers have little more than passing interest in products they promote. Their only concern is how to get people to buy their client's products.

7. DON'T try to market one item at a time. The most expensive sale is the first one to each customers. This transaction bears the brunt of advertising, mailing, customer location and qualification (learning his interests) costs. All sales from that point to that customer are "in-house." all you have to do is contact a customer you already know something about who has responded to you! if you have nothing else to offer this captive audience you paid do dearly to acquire, you waste the most valuable opportunity in mail order

8. DON'T offer too much variety. As mentioned above , the objective is to locate and qualify customers interested in what you have to offer. As long as your "line" is pretty well related, you can expect a buyer of product "A" to also be interested in product "B". Fishing rod buyers could reasonably be expected to be interested in lures, creels and reels but not necessarily something entirely different like history books or cosmetics.

9. DON'T offer too many choices. IF you have 100 products in your line, it's usually best to offer four successive selections of 25, give or take a few, than all at once. Sometimes too many choices lose sales. remember the kid at the candy story ? Ideally, the first offer should be the best because this one establishes customer rapport. What the customer buys is an excellent hint as to what should be offered next. His satisfaction is your " foot in the door."

10. DON'T mail half empty envelopes. In costs the same to include four or five pages as one in a first class envelope as it does one. Mailing less then the full weight allowance increases your expenses over those of your competitors. To compensate you must either change more or make less for your efforts. Of course, you don't want conflicting offers or anything that could detract from your main offer. But bear in mind that customers who aren't interested in one offer may like one of the others. In this case, you make a sale and acquire a new customer that you would otherwise have missed.

11. DON'T camouflage your offer as junk mail. the best way to make sure the recipient views your offer as junk mail is to make it look like junk mail. Stick on a couple of tired slogans like "You Asked for This," "postmaster: Deliver Directly you Addressee Only." Don't stamp "Urgent" on Bulk mail if you want to be taking seriously! the best way to ensure is opened is to make it look like what it really is: business mail! Use quality envelopes with your imprinted return address and make sure the address label is on straight! Better still, use a window envelope or type the address. Some mailers have very good luck with matching handwritten addressee and return addressee for that personal touch but those can be a lot of work when you have large mailings.

12. DON'T forget to enclose a cover later . Here's where you have a opportunity! You can include a personal note (even one prepared with a scanner). A formal letter for anything in between. The cover letter is a personal link between you and your customer. It's makes your offer a people rather than an impersonal, mechanical communication. The cover letter is for person-to-person talk; put hype in the circular where it won't look out of place.

13. DON'T start out trying to sell merchandise by mail. Marketing merchandise by mail is not impossible but it's nowhere near as easy as some of those big advertisers would have to believe. For starters, you must complete with local discount stores. No matter what gadget you describe, potential customers will probably think of something they've seen locally. It's usually better (and smarter) to start with products that are not available locally-that can described and envisioned with minimum amount of words. You can always add merchandise to your line.

14. DON'T try to sell books to book dealers. It is amazing how many otherwise intelligent people buy book dealership and try to sell them to mail order book dealers. That's like trying to sell cars to car dealers! Mail order dealers buy dealership to sell books; they really buy them at retail to read! In order to reach the real market for books and merchandise, you must advertise in publications that potential buyers read and use mailing lists names of people who can reasonably be expected to be interested in the retail book subjects you offer. Check your library's references on publications for ideas.

15. DON'T be tempted to import products from overseas. As a beginner your chances of making money from something you import are extremely low. The odds are much higher that you will get "burned." Companies that import are experienced in international law and overseas costumes. They have something you don't: CLOUT. Overseas supplies are especially careful not to risk losing big accounts. For these they are willing to go that extra mile: impose adequate quality control, make accurate counts, package and ship as promised. Even if you were lucky enough to find a reliable overseas supplier, your order would be on the bottom of the pile! The truth is that you can probably find better quality imported merchandise every bit as cheap and a darned sight faster from a US imported.

16. DON'T try to market something you wouldn't buy. The moment you try to sell something that you don't really believe is wroth the money is the beginning of your downfall. This is the point where you admit to yourself that you're a fraud-more interested in profit than the well being of your customers. That's when you stop thinking your work and relegate your once lofty goals to "talking" others. Marketing is selling. The highest form of selling is quite simply telling others the truth about thing you honestly believe in!

17. DON'T copy others. There are three reasons. First, it's illegal or at least unethical to copy another's efforts. Second, it probably won't work for you anyway because you a different. Third, it unnecessarily makes enemies. Find those who are successful at what you want to do and use them as models. This means adapt (not copy) part of their methods or approach to your style.

18. DON'T get in a hurry! The first step in mail order or any other new venture is research. You wouldn't read one ad and go out and buy a new car. Don't do it in mail order either! Write for information on various offers that interest you. Request sample publications and details. This is the time to invest some of your time, a selection of LSASEs (Long, Self-addressed Stamp Envelopes) and a few bucks P&H (postage and handling) if the charges aren't exorbitant. Ask questions, compare, evaluate, study!

19. DON'T try to go it alone. Join and organization of legitimate mail order dealers (like The Inter Circle). Ask for and listen to their advice. Mail order crooks don't join organizations of their peers for fear of exposure. Honest dealers warn each other about them and, when they have evidence, report them to the authorities! Dealers who join and cooperate with their counterparts are honest. they are know the value of and are anxious to build and maintain good reputation. They're glad to help newcomers with a demonstrated interest in learning about dealers, products or programs, they haven't tried before, they ask someone they know and trust.

20. DON'T be afraid to make mistakes. Every successful mail order dealer has made mistakes-lots of them! Some were inadvertent, some due to misplaced trust and a few were just plain, dumb! Not many dealers got much response if any) from their first ad and most thought a quarter or half percent response rate to their first mailing list was great. Mail order is constant testing and accentuating what works. Part of the profit for a successful ad or mailing is always of their earnings into research. Of course, testing costs can be minimized thought attentions to detail, cooperation with other dealers and good bookkeeping. Every failure can be a lesson if the reason is determined, analyze heeded in the future.

21. Finally: DON'T give up too soon! It takes time to learn the basics, become known to the buying public and accepted by your peers. So many would -be mail order dealers come and go that it almost seems that you must be around a while before you can get started. There's a grain of truth in that, but the reason in that some amateurs not be here next month and often "broadcast their amateurishness. "It's only when they start looking like pro's that they become accepted as such. It is probably true that many (excluding the "get rich overnighters") who try and "fail" in mail order were actually on the verge of success when they quit! Rather than give up -scale back! Mail 200 a month instead of 2,000; spend 50% less on ads, reduce your hours, but keep up the quality. This keeps your name "in the news" and leaves the door to success open. Who can tell when a new product or ad will "take off?" You may find yourself frantically trying to fill orders, running back and forth to the post office and ordering more supplies -all at the same time!


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