HOW TO MAKE A FORTUNE WITH CLASSIFIED ADS

HOW TO MAKE A FORTUNE WITH CLASSIFIED ADS

Are you ready to make money - lots of it? Can you spare a little time

and just a few dollars? If you are prepared to fulfill your dreams and

realize your goals, mail order classified ads are your ticket to

success.

You have what it takes - right now. Classifieds are the best dollar-for-

dollar return in advertising, and you can earn a high profit on your

product investment.

Classified ads are the easiest to write, the easiest to place, and cost

the least. They require only a simple follow-up, and bring in hundreds

of dollars of sales.

People read classified ads for a purpose. They aren't interrupted - as

in most advertising - and are specifically looking for products,

services and information that appeal to them. As well-placed

classified ads will bring hundreds - thousands - of replies month after

month, year after year.

You don't have to have a special background to make money with mail

order classifieds. Any beginner can realize a steady second income

or develop a stable, full-time business through classified ads.

But you have to be persistent. You must WANT TO MAKE MONEY,

and be willing to stick with it. If you do, you will find that being

successful is easy - just follow the steps, one by one, climbing the

ladder to the top.

WHAT SHOULD I SELL?

Take a look at the classified ads in the magazines and tabloids you

read. They are filled with offers for services, products and information.

And they sound good. The ads show enthusiasm about the materials

being offered.

What gets you going? There are many things you find of special

interest constantly. Could you offer those for sale? Do you have a

special trade or service that can be conducted by mail? Maybe you

have a product to distribute, such as stamps or coins, a timesaving

gadget, or a do-it-yourself kit. Or perhaps you can tap into wholesale

or surplus goods that you can sell at a good profit. Bargains are

always in demand.

The most successful type of mail order product is INFORMATION.

Specialized information in the form of ideas, money-savers of self-

improvement can be easily produced on a low budget and readily

SOLD AT A HUGE PROFIT.

Information in the form of how to make or do something is a constant

best-seller. People are always looking for simpler, or cheaper, or

better ways to improve their crafts. What can you offer?

THE 2-STEP APPROACH

The proven method of selling mail order items of information is called

the two-step approach. Basically, you place a short classified ad in

the back of a magazine or tabloid. The ad does not mention price, but

tells the reader to write for free details. Once you have an inquiry, you

then send information concerning what you have to offer, and watch

those orders pile in. Essentially, a mail order classified ad buys a

name and potential business. It may just break even with the actual

orders placed. The real money comes from subsequent sales.

Profit begins at the second sale and gets bigger and bigger as the

sales continue.

WHY NOT CHARGE IN THE CLASSIFIED?

You'll get far more responses from an ad for free information than you

will for goods, at any price. And, since you want a POTENTIAL

BUYER, you'll have more inquiries for materials you want to sell later.

Charging a small fee to cover postage or the cost of the inquiry will

never make you break even - people won't be bothered. And a small

fee doesn't necessarily weed out non-buyers.

If you find your classified is pulling people who aren't interested in your

offer, you can change the advertisement to be more specific as to

what you really have for sale.

WHERE TO PLACE CLASSIFIEDS

The best advice in placing classifieds is to follow the leader. Find

where other goods in your category are being sold and do the same.

The mail order business is not a place to be real different - especially

as a beginner. Although your product must have an appeal different

than the others. Stay with the pack and advertise in the same

publications.

Look for repeat business. You can review back issues of publications

at your library or buy some copies of the publications you might

advertise in. If a certain ad has appeared time after time, you can bet

it's a winner.

Write for the details of some of the offers similar to the one you have.

You might even purchase a sample product or two so you can get a

good feeling for what is being offered, how the ads run, and what kind

of prices are successful.

If you have a specific product or information that is appropriate to a

specialized type of magazine, check out all the magazines of that

topic. Which publication carries most of the ads? What is the

circulation of the of the publication? A magazine with a higher

circulation may cost more to place a classified, but bargain rate

publication won't be the best investment if they don't bring the

inquiries.

Consider your dollar-for-dollar inquiry. How many people may read

your advertisement for the cost it takes to place the ad? Many

products have special seasons, and classified ads are

no different. December generally returns varied responses because

of the holiday season, and is not a good month to include in your

testing. The summer months are generally slower for classified

responses and mail order packages. The best time to try your ads

are the fall, winter and spring months.

WHAT IS TESTING?

The most important element in mail order advertising is to test. Not

only do you need to find out if your product will sell, but you have to find

out what the best price is.

You have to test the magazines. One may not draw as many

responses as another. Or, after three months, it may not seem to pull

at all. Then switch to another publication. You may try several

publications at the same time with the same ad to be able to judge

which has the best dollar-for-dollar response.

Don't be too hasty in dropping a publication, however. Sometimes it

takes the repeat insertions of three or four months to get the proper

percentage of responses. People become more secure with a repeat

ad, or they may pass it by the first or second time until they get

around to writing for information.

Other things you will be testing are the type of inquiry and the

response package that contains a sales letter and brochure. You'll

also need to test the frequency and number of times to continue

mailings after you have a good customer list.

Testing is the name of the game - and this is where you need

perseverance. Don't get discouraged. GIVE IT A TRY. Because of

the low cost of placing classifieds, it's worth it to keep it going. YOU

CAN PROFIT.

TYPES OF ADS

There are three types of classified ads - qualified, partially qualified,

and blind.

The qualified ad is specific. It includes several details to inform the

reader about what you are selling. The people who respond to highly

qualified ads usually are specifically interested, and produce the best

quality prospects with the highest percentage of sales. Since

the ad may be a few words longer, it is the most expensive to place.

The partially qualified ad offers a special benefit, such as money or

self-improvement. The readers have some idea of what you are

offering, but don't know the specifics.

Blind ads offer only the few details, are inexpensive to run because

they are short, and bring in the largest response. However, blind ads

product the lowest percentage of actual orders because they are often

answered just out of curiosity.

The best place to start is - you guessed - the middle. A partially

qualified ad is a good test ad. It doesn't need to be specific about

your product, so it brings in inquiries that can be used over and over

for related items. You can rewrite it with more details or trim it down

later.

What's the best guideline? PROFIT. If you compare the actual orders

received from the number of inquiries for each of your ads, you have

the rate of conversion. Aim for the ads which pull best for you.

KEYING THE ADDRESS

How do you determine what inquiry response cam e form which ad?

You code the company name or street address so you can dtermine

what ad pulled the response. This is called keying the address, and

it's one of the most important tips in mail order classified advertising.

The simple key is a two-part letter and number code. The letter

stands for the name of the publication, and the number represents the

month the ad appeared. You can make up any code as long as you

keep track of what publication it appeared in. You can add the key to

the address by hyphenating the street address to include the code. Or

you can key the company name by adding specific initials.

The surest way to key is to add the code to the address in the form of

department, division, or suite number. Be careful it doesn't conflict

with any other addresses nearby.

WRITING CLASSIFIEDS

Writing your own copy for a classified ad is easy. There are so few

words you need to use that you don't have to worry about being a

writer or a professional in advertising. You are your own expert in

selling your product.

The selection of words is the most important aspect of classified ad

copy. You need to choose precisely, by don't skimp on words to save

the cost in the ad.

The best way to prepare copy is to first write about your product or

service at length. Go ahead - list all the benefits. Scrutinize the

features and write them down. What sticks out? What is so great

about your product? What can it do for the reader who will take the

time to write for more information? How can your product help? Will it

show how to earn money, does it offer self-improvement, can it help

accomplish something appealing and significant?

Choose a heading that points out the most significant aspect or

feature of your product. Follow up with a few words or details, and

finish with a request to write for more information. The best word in a

classified is "free," but you must follow up with something free.

SAVE MONEY PLACING ADS

Most classified ads are billed a certain charge per word, so you want

to keep your words important and precise. Once you have written

your ad, take a closer look at it. Can you eliminate extra words

without changing the meaning?

You might be able to delete conjunction such as "and," articles like

"the," "a," and "an," or prepositions like "for," "with," or "from."

Perhaps you can contract your company name into initials or use just

one word.

Each part of your address counts as one word: the number; the street

name; the street aspect (boulevard, avenue); the key (if separate); the

city; and the state. Many publishers let you include the zip code free of

charge.

Use figures rather than words for numbers, but don't use contractions

or abbreviate. You have to pay for each word in full, so spell them out

completely. That way you'll get no confusion when people place

orders.

RESPONDING TO INQUIRIES

Once you start getting responses from the classified ads, you should

send out your sales literature immediately, definitely within one week.

The goal is to convert the inquiry into a sale and convert the sale into

PURE PROFIT.

Your sales literature can be a one-page pitch for your product. It

doesn't have to be an expensive color catalog. As you get going, you

may prepare a sales package and a series of follow-up offers.

You can't tell from the type of inquiry whether the person is a buyer or

not. Postcards or letters are potential profit makers for you. What's

important is to MAKE A SALE.

Type the person's name and address on a label and make at least

three carbon copies of these labels to use for subsequent mailings.

Your second sales packet should be mailed a month after the inquiry

was received, and another month after that.

Follow-up sales are where you are going to MAKE YOUR FORTUNE.

Your classified draws the inquiries, the first order establishes a good

customer, and the rest of the orders are pure gold. Testing is the only

way to find which plan works best for you in getting orders. You'll

need to find out which sales packet works best, and how often to

make mailings.

THE RESPONSE PACKAGE

A typical mail order package - called a conversion - consists of a

personal letter, a brochure, an order form, and a return envelope. How

elaborate you wan to make your conversion depends on how

successful your product is selling and how much money you want to

invest.

Always start small. A simple one-page offer can work as well as a

fancy catalog. After you've built up a few good selling products, you

might print up a single page brochure or catalog. Even at that, you

don't have to go to color unless your product warrants it.

You don't need an advertising agency to put together your sales

packet, but you can use one if you want. Be sure to investigate the

type of agency and what it can do for you. You should have an agency

with a proven background in mail advertising, and you must take a

good look at what has already been produced. Talk with clients and

see if the agency pulled through for them.

Why don't you need an ad agency? Because you can produce all the

sales literature you need. You are the best sales person for your

product because YOU KNOW IT. If you have done the proper

research, you have already found out what the competition is, how

much their products cost, and what sales appeals they are sending

out.

As in placing and writing classified ads, do what the competition is

doing. Although you shouldn't - and can't, legally - take directly from

them, you certainly can copy the format and general ideas they

project.

If somebody has been selling something successfully for years, do the

same thing. Adapt your product to fit. Of course, you can't convert a

sales pitch for surplus goods to an appeal for a self-improvement

book, but take notice of WHAT SELLS PRODUCTS.

HOW TO PREPARE SALES LITERATURE

The sales letter promotes you as well as your product. It is a personal

appeal to a potential buyer. You want the person to feel special and

have a reason not only to look through the rest of the literature, but TO

BUY YOUR PRODUCT.

The appearance of the sales letter is the most important aspect. It

should be on company letterhead, cleanly printed, and inviting to read.

Although it can be any length, it doesn't have to be more than one

page. But it must be double-spaced and typewritten in clear, easy-to-

read type.

The most effective sales letters are printed in two colors. The second

color offers eye appeal and provides emphasis in selling the benefits

of your products. The most inexpensive way to product two-color is to

print black on two-color letterhead. You may use the second color in

alternate paragraphs, or as special paragraphs, indented to catch the

eye. Blue, red or green type is harder to read, so keep the second

color areas short and important to the reader.

Other effective ways to use a second color are as handwritten

remarks in the margins of the sales letter, as underlines, and in the

signatures.

Write the sales letter as though you're writing to a friend - keep it

direct and personal. Present yourself and your product as worthwhile,

honest and desirable.

The beginning of the letter should have a lead line similar to a

classified ad. It emphasizes the benefits of the product and points out

the strongest appeal.

Don't be tempted to use two or three appeals in a row. Choose only

one and save the next best ones to try on other sales letters as you

test the results.

Follow through on the appeal, amplifying WHY the product is

desirable. Emphasize its value to the reader. Build credibility. Will it

make me a better, or richer, or more secure person? Can it prevent

worry, poverty, illness? Why should anyone want to have it? You

might admit what the product won't do, then present several positive

aspects, stating what it will do.

In the next section, mention price and immediately talk about the

money-back guarantee. The reader will be more convinced the

product will do all you claim if you are willing to stand by your product

enough to offer a full refund.

Finally, restate the major benefits or feature of the product and push

for the order. If you are offering a special premium for ordering

immediately, state it here. Include a good reason for why the person

should not wait, but ORDER NOW.

ORDER FORMS

If you have only a one-page sales pitch, you need to provide space for

an order form. It should be well-defined by a line or dotted line around

it, and should be large enough for someone to write in the information.

If you plan to send out a complete packet with sales letter and

brochure, print up separate order forms.

Mention the benefit, the product name, and the guarantee. You might

want to use the first person in pushing for the order. For example,

"Yes! Please rush me my..." Include the price on the card, perhaps in

a manner such as, "I enclose my check for $ ."

Provide adequate space for the name and address with long lines to

write on. You may also want to place a key if you are using more than

one sales appeal.

PRINTING A BROCHURE

Preparing a brochure or sales catalog is not as difficult as it may

seem. It doesn't have to be a glossy, four-color fancy booklet. You

can send out even a one-page description of the product and an

appeal for ordering.

The brochure or sales catalog is the visual representation of your

product. It emphasizes the features rather than the benefits, and goes

into detail about the product.

Think about what you're selling. What are the best points of sale? If

it's printed information, what is the format-size, number of pages,

hardcover or soft? Is the author a well-known authority? How is this a

better deal than another of the same subject?

If you're selling a product, maybe you'll need to include the colors

available, sizes, or the type of materials. Or emphasize the clear,

easy-to-follow instructions that are included. When you get stuck, just

look at all the other catalogs and compare. What information is

included? Follow suit.

The important aspect of a brochure is the use of illustrations. Again,

these don't need to be series of four-color photographs. Although

photos are very good ways to sell goods, don't bother to use anything

that is less than excellent in quality. Be careful if you want to use a

model. Remember, you WANT TO SELL.

An excellent way to illustrate your product is with simple little drawings.

Even if you cannot prepare the final artwork, you probably can think of

what you want and how to place it on the page. Local yellow pages,

newspaper ads, typesetters and printers are good places to find an

artist to do the final work at a reasonable price.

Once you have a good idea about the size and scope of your

brochure, you're ready for the rough layout. And this is easy. Just

pretend you're an artist. That's right - you don't have to draw to do a

rough layout. Pencil in the type for the heading. You can do a stick

figure sketch of a line drawing or indicate the size of the photograph.

Draw lines to indicate the body copy.

Write out all the words for the brochure in accurate, clean typewritten

copy. Don't forget anything that will be printed, and don't misspell

anything. Then take it to a typesetter or printer. Printers usually can

work with you to help choose the type style, size and particulars about

the layout. Or, they may know artists or designers who can help you

for a small fee. They usually work closely with a few typesetters, but

you work directly with a typesetter to have the type put into final form.

MAILING

You can obtain a bulk rate permit at the post office if you send out at

least two hundred identical pieces at a time. They must be presorted

for destination. The bulk rate cost is lower, but it takes much longer

for the mail to be delivered.

The most important aspect to mailing your sales literature is the

quality of the list of people you are sending it to. A brilliant sales piece

won't work it if is not sent to the right people. That's why you must be

clear when you place your original classified ad, and that's why you

need to test which heading to use and how many details to include.

Your own mailing list is the best one, because - since you keyed the

responses - you know what these people responded to. You have

already profiled the potential buyer, you have already written a sales

piece aimed at that buyer, and YOU WILL MAKE MONEY from that

buyer.

Although you can buy or rent lists of names and addresses form list

broker, you can never tell by sure how well the list will respond to your

sales package. If you need more names, just place more classified

ads. Test different headings, test different magazines, and test

different products.

KEEPING RECORDS

It is extremely important to keep accurate records in mail order. It is

only through these record sheets that you can determine which ad

pulls the best, which advertising lead is the most enticing, and how

well your product is selling. Good records are the follow up of good

testing.

Keep copies of all ads and conversion material in a three-ring binder

or scrapbook. You may also include in that book - or a separate

folder - a record of all the keys you have used.

The separate sheets of records per key or publication will help you be

able to compare which ads are bringing in the profits.

You can make your own record sheet with a pen and ruler. Then have

a few photocopied.

You'll need a separate sheet for each ad you place. At the top of the

sheet, place the name of the publication the ad appeared in; the issue

number or date; the date the issue was placed on sale; the address

key; the size and cost of the ad; which ad you used; the price of the

product; and - to be calculated later - the profit.

The main body of the record sheet has two main categories: inquiries

and sales. First, the number of days should be listed in a column at

the left. These don't necessarily coincide with the days of the month,

rather start with the first days responses came in. The subheads

under "inquiries" should be: date received, number received, running

total. the subheads under "orders" should be number of orders

received, running total, cash sales, and running total for cash sales.

These record sheets will help you to figure out the responses to

classified ads, orders from sales literature, and how much money you

are making.

To calculate the cost per inquiry, divide the cost of the ad into the

number of inquiries received.

To fine the cost per order, add the total cost of mailing the sales

packets to the cost of the ad and divide that by the number of orders

received.

The ratio of conversion is the number of orders compared to the

number of inquiries. For example, if you get twenty orders fromone

hundred inquiries, the conversion is twenty percent.

HOW TO CALCULATE PROFIT

Total the amount of cash sales. That is your gross profit. Subtract the

cost of the product. Subtract the cost of the product. Subtract the cost

of mailing. Subtract the cost of conversion and the cost of the ad.

That is your net profit, the one that counts.

Just stick with it, and you can WATCH THAT PROFIT GROW bigger

and bigger each ad, each conversion, each sale.

EXPANDING AND GROWING RICHER

Over the years, good buyers purchase many times your initial

investment in classified ad space. A first buyer indicates a second

sale; after that, you have a regular customer who may purchase for

years.

Promote the field of interest you've selected - don't expand into

separate areas. Cultivating your prime customer list takes patience

and testing, but you'll find it rewarding.

Perhaps you started with one product to offer and are ready to try

another. You can run new, separate classified ads in the magazines

that have tested successfully to your other offer.

And, you can use your list to send out sales literature for the new offer.

Regular mailings depend on the number of items you have, the size of

your list, and your budget. But follow through is very important.

Maybe you are at the stage of printing a small, two page catalog/

brochure that offers five to ten products. You can mail this out to the

inquiries from classifieds, or you can use any combination of one-

page offers you have used in the past. Always run with what sell.

Drop anything that pulls no response as soon as you've given it a fair

test.

EXTRA APPEALS

Once you get rolling with your mail order business, you can try any

number of incentives to solicit orders. You can offer a free gift - or free

anything - certificates, coupons, fabulous prizes.

You might offer a sample, a trial period, or a special guarantee. One

way to push for an order is to indicate that the supply is limited or you

won't stock a certain item for long.

Time limitations will elicit quicker responses. You may offer one price

until a certain time and then indicate an increase after that.

A successful way to push for large orders is to offer a discount on the

larger orders. That way, it is worthwhile to order two or more items -

for you because it's more business and more profit in mailing and

handling, and for the customer because it is at a reduced price.

What do the other mail order businesses do? What kind of incentives

do they use? As always, check with the competition. What has

proven successful to them probably will work for you too. What kind of

"special" offer you can make to push for larger, quicker or more

frequent orders?

SATISFACTION GUARANTEED

Not only must you print a guarantee in all your ads and sales literature,

but you must honor it. Never send inferior merchandise; never take a

chance on faulty mailers or guess lower on postage. Deliver a

complete product.

It is only through satisfied customers that you will get repeat business,

and it is through repeat business that you MAKE MORE MONEY.

Don't try to get away with anything less than you promote and stand by

all claims you make. Honor requests for refunds promptly and politely.

A customer satisfied with your honesty remains a good buyer and may

purchase from your later offers.

MAKING MORE FROM A WINNER

You've got a successful product. The conversion for orders is high,

refunds are low, and the draw form the classified ad is great. How

can you make more money - even if you think you've saturated your

market?

The easiest way to increase your inquiries is to run another ad in the

same publication with a different heading. If the classified section is

large, you might request one to be placed at the beginning, the other

towards the end. Although several clever readers will notice the same

address, it still draws a significant number of inquiries in.

This technique is also good for copy testing to see which heading will

draw the most response. Be sure to key each ad separately and keep

accurate records.

Maybe you have two or more products that you want to advertise

separately. This is a good way to do it without going to other

publications. Again, key addresses, and be extra careful to respond

properly to the inquiries.

YOU AND THE LAW

You do not need a special federal or state permit to operate a mail

order business. The material you sell must be legitimate however,

and you cannot be deceptive or misleading in claims or advertising.

If you offer something "free," it must be free, and all claims concerning

money must be honored.

If you use testimonials in advertising, they must be real and available

to investigation. Frauds are discovered and are prosecuted.

The federal and state governments require you to report all income,

but you certainly can take every legal deduction. Once you make a

good deal of money, it's often worth every penny to have an

accountant fill in your forms. If your income warrants it, you will be

expected to pay income tax quarterly.

Most states now have sales tax, so you'll have to find out the

regulations concerning the collection and payment of these fees. An

advantage to this, however, is that you can get a state resale number

and may not have to pay state sales tax on some of the items you

need for your business.

If you keep accurate records and report the proper information to the

authorities, you'll have no problems.

ACT NOW

Classified ads are the best way to make a high income return from

limited sources. You can buy the extras you've wanted, send yourself

on an exotic vacation, even create a profitable yearly income.

One of the best aspects of this type of enterprise is that the number of

successes increase as the number of errors decrease. You learn as

you go along and YOU PROFIT CONSTANTLY.

Cultivate positive thought. As you can see, there is nothing difficult,

costly or extreme ly risky in making good money from classified ads.

What is the best way to get started?

Thousands of people have earned a comfortable income from

classified ads - with great happiness and contentment in their own

business. You can succeed too, if you make up your mind that you

want to. Faith is simply a state of mind, but it has been proven that

state of mind can CHANGE DESIRE INTO REAL MONEY.

There's no better time to get started.