Step 1: Prepare for Success "Most of the time, success stores in life are a result of trial and error,

grinding it out, keeping your nose to the wheel, a very boring and inglorious chain of events" Failing is Part of Success. "To be a successful entrepreneur, you are going to have to overcome any institutionalization that has crept into your personality. You are going to have to understand there are no gods on earth. The chances of other people being able to tell you how to run your life effectively are remote." Your main concern is doing something quickly. Even if it's wrong. 12 Components of a Successful Business 1. Policy, constitution and business philosophy 2. Goals, objectives, and strategy to reach these goals and objectives 3. Effective Human resources, including a good organizational chart, an effective incentive program, and effective education and training programs 4. An effective systems and procedures program 5. An effective Quality, Price, Service and Integrity program 6. Prioritized, periodic, enforced, timescheduled directives with deadlines 7. An effective financial system that provides accurate cost measurements, predictive financial status on a monthly basis, standard financials on a monthly basis and budgeted capital 8. An effective revenue generation system a. Marketable p/s b. Effective promotions c. finding quality prospects d. media to reach those prospects 9. Organized, efficient equipment 10. Organized efficient building facilities 11. organized efficient inventory material systems

12. Effective security systems which protect the company from all types of criminal activity, including criminals in government and the criminal element in business competition. These security systems also include an effective political program geared to gain political representation for the company and also to counter adverse political activity against the company

The Nine Leading Killers of Business and Causes Sales, Criminals and Costs are the Biggest three Killers. 1. Lack of Sales a. Chose a p/s to sell that does not have a demand b. creating or using an ineffective sales promotion or marketing system to sell that product or service to prospects c. Offering the p/s to people who are not prospective clients and using inefficient or costly media to reach qualified prospects. 2. Criminals a. Mainly government regulatory corruption b. New businesses are the targets of most regulation, not Massive established ones. 3. Costs a. Poor Cost Management: excessive fixed overhead in the form of: i. Excessive personnel costs ii. excessive debt costs 4. Taxes 5. Rent 6. Interest 7. Legal 8. Inventory 9. Receivables The 10 Basic Principles of the NPGS

1. Net Profit = Gross - Total Costs 2. Rate of sales is determined by four factors: i. Demand for p/s ii. Promotion selling effectiveness iii. quality of the prospect iv. efficiency of the promotion media 3. P/S Demand =Need + Perceived Value relative to cost + Trust in the Company + delivery time of the p/s 4. Promotion effectiveness = i. attention grabbing power + ii. ease of understanding + iii. word selling power + iv. graphic & illustrative power + v. ease of ordering + vi. cost efficiency of promotion & offer (i.e. what type of a deal the buyer is getting) 5. Prospect Quality = recency of purchase, frequency of purchase, unit of sale 6. Efficiency of media = cost per exposure + % of prospects reached + contingency mediums (for response, ordering, payment, delivery) 7. Profitability of SGS = cost of sales per sale - gross profit per sale 8. Total sales a promotion will generate in Direct Marketing can be predicted in 1-7 days after only 10% of sales are in 9. All prospects are divided into: nonprospects, prospects, respondents. All Respondents are divided into: inquiries, buyers, multiple (or multi) buyers, clients, expired clients 10. The more often a client buys from you, the rate of buying will progressively increase through time. Their responsiveness WILL increase. Chapter 3: Determine and Document Your Goals and Objectives Objective = ultimate thing you wish to obtain Goal = timetable marked with what part of that objective you wish to reach by each time period or increment

"You should do this with both monetary and nonmonetary objectives, AND you should have a non-monetary "immediate carrot" - something you've always wanted to do but have never done" Mind over matter: If you... 1. want something badly enough 2. you define and document it precisely what that something is 3. take affirmative action to achieve it 4. truly believe and have faith that it is going to happen through the power of your mind or the combo of the power of your mind and divine intervention, or solely through divine intervention then the attainment of this item, will come true most of the time. Here's how to do it: 1. Rigorously think about the objective you wish to have. 2. Define it precisely, with as much detail as humanly possible 3. Document the description of that objective as rigorously as possible 4. Lay out a master plan on how you are going to achieve that objective 5. Initiate affirmative action on your master plan to obtain that objective. Start doing something, even if it is wrong. 6. Truly believe it is going to happen. Pray about it and ask God to "help you do it" 7. During the time period needed to obtain your objective think about it obsessively. It should consumer every waking (and sleeping) hour of your life. You should even dream about it. 8. Minimize discussion with other people concerning your objectives and Tune OUT THE NEGATIVE PEOPLE! 9. When you are near your objective, make sure you push that final yard or inch in

order to obtain it. Most people fail just as they are about to meet with great success.

criminals, costs, legal, inventory, receivables, and sales (lack of). 6. The policy of the company towards its clients is defined by the acronym QPSI, which stands for: quality, price, service and integrity. This means, we will sell only the best products/services which are strictly controlled at prices that give clients the most value for their money. Furthermore, we commit ourselves to fast fulfillment of orders and immediate handling of client complaints and problems. 7. The client is not to be deceived in any way in sales promotions for products and services. A client who is treated well will become one of the most valuable assets of the company. A welltreated client will buy repeatedly for a long time, perhaps indefinitely. This is extremely important to us, since repeat business greatly reduces the cost of sales and, thus, greatly increases profits. 8. Hostility and rivalry between management and labor and the exploitation of employees, will not be allowed or tolerated at the company. These problems have stifled growth and caused the demise of many businesses around the world, especially in the United States. 9. The main criteria for partner evaluation will be loyalty, integrity and job effectiveness as determined by each partner's results. 10. Exploitation of subordinates by superiors will not be tolerated. This includes sexual harassment or harassment because of conflicts of personality or philosophy.

WHY? Because MOST people FEAR success!

Your business constitution & policy 1. For funding and growth, the company will not resort to loans or sale of stock. 2. The financial policy is to start small and capitalize with the owner's personal funds, and then finance growth out of profits. It we are in a short-term financial bind, we may offer key suppliers future profit-sharing in return for credit. 3. The company's owner shall never sign personally for any corporate commitment, with the rare exception of an item of tangible intrinsic value that is quickly salable, such as an automobile. 4. Loans, sale of stock and signing personally for corporate commitments jeopardize a company because they limit its freedom and ability to act quickly. In times of financial crisis, when such freedom and the ability to act quickly are so critical, creditors and stockholders can bog down a company, or they can take control of a company and exploit it for their own purposes. 5. In addition, the company is aware of and makes it a high priority to minimize the main killers of business: lack of sales, government regulators, theft and fraud, and the acronym "TRICCLIRS" which stands for: Taxes, rent interest,

11. Partners will enjoy real profit sharing and be compensated in proportion to their contributions to the profitability of the corporation. Profit sharing will be based on individual sales commissions where applicable, plus the overall profitability of the company. For those employees who are not directly involved in sales, but whose activity indirectly contributes to profitability, there will be merit-based profit sharing in lieu of commissions. At the discretion of the Board of Governors, an amount between 30% to 50% of the company's profits will go towards profit sharing. 12. A sense of urgency will always prevail as a policy of the company and be one of the main criteria in evaluating the effectiveness of each partner. Based on case studies and real-life experience, the main secrets of business are the following: The Main Secrets of Business are: DO IT NOW. DO IT FAST DO IT WELL. DON'T LET ANYTHING STOP YOU FROM DOING IT. STAY ON IT UNTIL IT'S DONE. SPEED SLAUGHTERS...ALL YOUR COMPETITION. 1. All people in the company must know what is going on in the organization and the corporation's current vital statistics e.g. Facebook's growth stat, AppSumo's email stat, Mint.com's users stat, etc. 2. All partners must be constantly evaluated. 3. Here's why:

a. Management has the best possible handle on its most critical resource our partners b. Second, case studies have shown conclusively that employees are happier and more productive when they are constantly measured and evaluated. Besides money, the biggest inducements of desired behavior are compliments and acknowledgements for a job well done. 4. The company will always maintain integrity with regard to our business colleagues. It will never use bankruptcy to evade a debt. And business colleagues will always be treated with fairness. In addition, we will expect such treatment in return 5. In cases of aggression, the following policy will be adhered to: a. Engage enemies and stop their progress b. If you can, get enemies to the bargaining table and try to convert them to friends c. When bargaining with enemies is not feasible, counterattack them so they have to utilize expensive resources to defend themselves. In addition, this tactic serves as a de3terrent to other potential enemies because people like to take the path of least resistance. d. If you cannot get enemies to the bargaining table and cannot convert them to friends, utilize political or other legal tactics to jeopardize their positions. This policy differs from the policy of most companies when face with aggression especially form government. Most companies assume the "ostrich reaction" when attacked,

and "bury their heads in the sand," hoping the predator goes away. But in business, as in nature, using this tactic, the victim gets eaten by the predator. e. When we do have to fight, we try not to engage the enemy on their home court or territory, but rather drag them onto our home court or territory. Suarez Rx's starting a Direct Marketing Business selling information products around a topic of which you already have some measure of expertise. He points out that information products have the least amount of government regulation.

Five Costs of an NPGS 1. Cost of Fulfillment (COF) 2. Cost of Sales (COS) 3. Cost of Fixed Overhead (CFO) 4. Capital Accumulative Costs (CAC): This is the total of money you must invest permanently for buildings, equipment, and inventory. It includes product inventory, your inventory of promotional material, constant postage needs, and money needed for additions or improvements to buildings and equipment

On average a business requires 10 employees and 2,000 square feet of building facilities for each million dollars in sales.

5. Cost of Taxes (COT): Total of all taxes paid by the company. Seven Types of Key Profit in a NPGS 1. GP: Gross Profit of the Product. This is

HOW TO MEASURE A SALES GENERATION SYSTEM (SGS) SGS Effectiveness = rate of sales = demand for products x effectiveness of the sales promotion x prospect quality x efficiency of the medium to reach the prospect

the total selling price of the product minus the COF 2. GPA: Gross Profit Accumulation of your SGS. This is the GP minus COS for each sale times x of sales made on a SGS test or rollout 3. GPP: Gross Profit per Prospect (Sometimes called GPE - gross profit per exposure) This is the gross profit

Gross Profit Per Package Mailed = Gross Profit Per Prospect or (GPP) GPP = (revenue - cost of mfg. - delivery cost cost of the sales promotion) (# of prospects sent a message)

made per prospect solicited.

GPP = GPA (number of prospects mailed to) 4. GPS: Gross profit per sale. 5. TGPA: Total Gross Profit Accumulation of all SGS currently being run by the

Packages sent to respondent lists are the ones with the highest rate of response. These are called back-end promotions.

company in rollouts 6. NP: Net profit = TGPA - CFO - CAC

7. NNP: Net Net Profit = NP - Taxes Critical Rate of Sales (CRS) = (COS + CFO + CAC) GPS The CRS is used to calculate the break-even point.

Factors that Determine a Product's Power #1. Proof Elements 1. Meets Bencivenga Persuasion Equation criteria 2. Large reachable, passionate fan base 3. Other Hot Products already in market 4. Good margins 5. Ancillary product sales potential 6. Easily Shippable 7. Can we Get an exclusive? 8. Repeat Business Potential When you develop a new product make sure that you always run the product through the Bencivenga Persuasion Equation. The Key to Business Success is knowing the market passionately. Get your product or service to be Based On Powerful, built-in Proof Elements! That'll make your job FAR easier. Finding a product like this almost sells itself. You want products with Great Proof Elements. "Don't Shop for 'new product or service'shop for blockbuster proof elements! Joe Segal working with built in passionate marketing place e.g. Harley Davidson - This is the idea of leveraging relational Capital! Zegarnic Effect When you start something you have something VERY powerful in effect just to complete it. Warren Buffet invests only in companies with built in Moats around them. Positioning yourself as the first person in the market is a type of moat...remember pioneers die with arrows in their back. You want to find people with a tremendous built in passionate following and go to them to create products & service e.g. Jay Abraham going to Tony Robbins's whales.

The Rate of Sales Equation Rate of Sales = Promotion x Media x Prospect x Product

Each factor on the right hand side of the equation is given a value from 1 to 10 called a "power index" -

The total multiplication of these four factors must be equal to a power index of 4,000. Any less than 4,000 and you will not reach the CRS (critical rate of sales)

Let Power index = PI EXAMPLE: Promotion PI: 10 Media PI: 8 Prospect PI: 3 Product PI: 10 Then our Rate of Sales = 10 x 8 x 3 x 10 = 2,400 So this would not be a profitable Rate of Sales equation and a mailing that would NOT even break even on the first mailing.

Also, if any of these factors is equal to any number less than three (3), you are guaranteed to LOSE money on the mailing.

Two Rules to Remember... 1.A powerful proof element is a blockbuster product waiting to be born. 2. You can find such powerful wealth-building proof elements almost everywhere, once you start looking! You want to find pre-authorized people, products, services, etc. This is why you should read newspapers and magazines - especially in buyer markets!

(See Eben Pagan's videos on this.) Now...back to 7 Steps... 5 Factors that Determine the Power of the Product 1. Market for the p/s 2. Public's perceived value 3. The Product's Gross Profit Factor you need 10x to 25x OR MORE mark up 4. Perceived or Implied Delivery Time of the P/S. STEP ONE: Define Existing Markets What people want:

The "Hot Hand" Strategy Go to the top notch people in a field and interview them. Then use their proof elements to lend credibility to whatever product or service you're running! You want to create a shell and then go out and take advantage of all of their credibility! 1. Immortality or survival. Person's name being carried on, tied to fame, linked to history, riches, fame or glory. 2. Power. 3. Love 4. Money 5. Recognition 6. Acceptance 7. Parental success 8. Career success 9. Marital Success 10. Health 11. Success in competitive games 12. Avoidance of hardship 13. Recreational fun 14. Avoidance of unpleasantness People want to gain: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Health Time Money Popularity Improved appearance security in old age praise from others comfort leisure proof of accomplishment Advancement - biz/social Increased enjoyment Self-confidence Personal Prestige

The key to success is thinking in magic! You don't want to "make the best" you actually make it better, you find a way to make it magic. The premium is your most important Magic success weapon. The "Magic Wand" Technique Ask, "If I had a magic wand and could have anything, what would it be?" If you attach any product (especially a book) to your offer you can take that person's credibility and leverage off of it. Naming is very important.

People want to be: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Good parents Sociable, hospitable Up-to-date Creative Proud of possessions Influential over others gregarious efficient "first" in things recognized as authorities

7.

Seeking financial gains

The Best way to create a winner is to sell a twist on what's already selling with better proof elements.

How to Determine What's Selling Find repeated ads in magazines Investigate mailing lists (list mark, SRDS)

People want to save: 1. 2. 3. 4. 5. 6. 7. 8. Time Money Work Discomfort Worry Doubts Risks Personal Embarrassment

The Two Biggest Markets are Health Prevention and Finance. Focus on health prevention, NOT curing.

The American Public is ALWAYS looking for an escape valve.

STEP TWO (2): REASONS WHY THEY BUY Intrinsic 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Better health avoid pain gain praise & popularity increasing pleasure satisfying curiosity displaying style satisfying appetites imitating others Escaping criticism expressing individuality Safeguarding reputation Select Prospective Products / Services

1. Select 12 prospective products / services. Of these 12, ONE will be chosen to market.

2. Once you have gathered 10 to 20 products/ services, get an RLS group as a representative sample of your market

3. A typical RLS group contains 8 to 15 respondents in each one-and-a-half hour session.

Extrinsic 1. Capitalizing on opportunities 2. Accumulating valuable and beautiful possessions 3. Protecting family and possessions 4. Attracting the opposite sex 5. Increasing comfort 6. Conserving time, work, effort 4. Usually 3 to 4 groups are conducted for each series of p/s. It should be an openended, exchange oriented, feedback

environment

The respondents will:

1. View each p/s along with a typed description of the p/s and the selling price

Here's how: 1. Apply the purchase intent percentage and multiply it by the GP for each item (selling cost fulfillment =GP) 2. The p/s with the highest GPP will be directmail tested Always consider the following factors: 1. What is the best medium for the p/s? 2. Will it stand on its own in a solo mailing? (4%6% required for profitability) 3. Is it really a catalog item that will do well w/ other items, but can't stand alone? 4. Do you have the high markups needed for TV? 5. The high potential volume called for by Space Adv.? 6. How much will it cost to write and design the promo? 7. How much will it cost to print, assemble, and mail the promotion 8. How many potential buyers are there? 9. Are there mailing lists available? 10. How well with the product photograph? 11. How many varieties do you need? (High variety = high overhead) 12. Will you have an exclusive? 13. Do you have a "moat" for your p/s? 14. Does the public perceive this as valuable? Why? 15. Is there repeat sales potential b/c the product is consumable or has matching pieces 16. What are the packaging and shipping costs? 17. Is the markup high enough to pay for the promotion and still generate a profit? 18. What is your minimum order qty.? 19. How much lead time does your p/s supplier need? Ways to Test: 1. Phone Gang Test (P 2-76) 2. Newspaper Gang Test (P 2-77) 3. Mail Gang Test (P 2.78)

2. No verbal descriptions are given 3. Whenever possible respondents should ONLY be shown the promotion without the product. This is the way they will be After the

approaching it in real life.

description is read, the respondents will rate the p/s based on their propensity to purchase the p/s. In addition, they write

down p/s features which would cause them to make/avoid the purchase.

Once all items are evaluated respondents will mark their favorite and least favorite items.

Then, they mark which items they would like to receive more information on. The last evaluation is the most important... 1. Each participant is given CASH. 2. The cash should be enough for them to purchase 3-4 items they are viewing - but not all of them 3. You will have a handful of products stand out - these are your winners. 4. You MUST provide some open ended time afterwards where the respondents provide feedback about the p/s, ask questions and comment on them. This part (4.) is EXTREMELY important. You'll learn a lot here. Once all p/s have been evaluated a ranking of the best to worst rate p/s can be established.

NPGS Principle 4: Selling Effectiveness of the Promo The offer and product constitute a direct-mail package's most important elements. Offers Offers to Use: You Won* Discount 1/2 price Pre-shipped or free sample Financial incentives for ordering: save money, free gift, etc. Offers to AVOID Become one of the 1st Extraordinary bargain Offers w/o financial incentive Free with purchase Preferred Client Offering *"You won" is a sweepstakes offer technique where a substantial proportion of the entrants win a prize (cash or p/s) in contrast to the more common sweepstakes offer technique where only a few entrants win larger prizes (the "You Can Win" sweepstakes drawing). BEWARE: an entrant should never be told they "have won" when they "have not". This is ILLEGAL! Products to Choose: 1. P/S with high attraction and apparent value 2. Unique and/or exclusive P/S Products to Avoid: 1. Market Saturated p/s 2. Products without adequate profit margins Pricing Practices to Use:

1. Use lower price points for cold lists and space ads 2. A/B split testing to determine the optimal selling price 3. A family of p/s with a range of price points 4. Incentives to buy more than one item, like discounts or free gifts Offers (Rated from Strong to Weak) Strong 1. You won 2. Preferred customer discount 3. free sample** 4. Preshipped Half Price 5. 71% Triple Discount 6. $225 Cash Vouchers Medium 7. Preferred Clients Only 8. Special Invitation Weak 9. Free w/ Purchase 10. Best-Buy Pricing 11. Preferred Client Offering 12. Become one of the first...

**Free sample/free gift delivered in the context of "You Won" is VERY effective. 1. It should be low in cost, but possess high perceived value - thus providing high prospect attraction but low cost for the free fulfillment. 2. Copy SHOULD NOT accentuate responding to receive free gifts without any obligation whatsoever. Weave the benefits of the p/s into your free gift offer. The purpose of a "free gift" is to gain attention and generate excitement for the p/s you are selling and while you do not want to accentuate the free gift w/o a purchase you should make it clear to receive the free gift. 3. The Free Gift / You Won premium should be a different product from those

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for sale. If it is the same product, the number of multiple orders will be reduced. (Unless the free gift is only useful when integrated with the offered product), thus lowering the # of unit sales and decreasing profits 4. Whenever possible, make the Free Gift/ You Won something that provides an increased incentive for the prospect to buy the offered product or another follow-up product

4. Advertising / promotional Premium / Bonus Offer: STRONG: 1. Additional Discounts 2. Free Premiums or Free Companion Piece 3. Authorized Celebrity offer 4. 50% off with Free Premium WEAK: 5. Free Insurance and Handling 6. Free S/h 7. Lack of a Premium / Bonus Offer 8. Limit One Per Customer PROMPTNESS DATE STRONG: 1. Return within 10 days 2. Return within three days 3. Mail today WEAK: 1. no date 2. as soon as you can 3. A.S.A.P. 4. If order arrives too late, payment will be returned 5. Before a sellout or price increase LIFT A lift piece should be tested in all promotions. Envelopes 1. Important Notification 2. Sweepstakes notification 3. Price claim certificate 4. Warning: 5. Notice: Enclosed is the material you requested 6. Photo Enclosed / Do Not Bend 7. Important recorded correspondence 8. Your immediate reply is needed 9. Telegram (yellow telegram style carrier) 10. Priority Message: Contents Require Immediate Attention 11. Simulated Handwriting 12. Warning - Fragile (Hand Stamped) 13. American Express Speed Courier (Simulated Handwriting) 14. (Official "Box" Areas) Warning

PRICE When selecting a selling price point consider these factors: 1. Direct Mail to rented lists and space ads often need lower price points than your direct mail buyer list. Offers in space ads and to cold lists sell well at: $5,7,9,12 plus s/h; house list offers can be as high as $9,14,19,29,39 plus s/h 2. You are in the arithmetic business. Make sure you can turn a profit even if you have lousy response 3. S/H: $5 +2s/h, $7.95 +$2 s/h, $9.95 + $2 s/h, $14.95 + $2s/h, $19.95 + $3 s/h, etc. 4. Split test price points 5. Test a higher priced option 6. Promote multiple sales whenever possible. e.g. Free shipping on 2+ items, buy 2 get 1 free, etc. Marketing or Promotional Vehicles STRONG: 1. Sweepstakes 2. Preferred Customer Discount 3. Final Notice 4. Celebrity Endorsement WEAK: 1. Limited Qty. 2. VERY special buy 3. Personal speed grams

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15. Urgent Notification - Reply Requested 16. Cash Vouchers Enclosed - Personal Notification 17. Photograph enclosed (and simulated handwriting) 18. Rush 19. First-Class Mail - Urgent 20. Notice: Reply Urgently Requested 21. RSVP as soon as possible 22. Invitation to special customers 23. No Copy NOTE: This is not 100% true. Some extremely powerful mailings have succeeded because they lacked teaser copy which increased their believability. NOTE 2: Stronger promos tend to have a brochure with a four-color picture or a simulated photo attached. Testimonials Buck slip: Certificate of authenticity Free Offers Etc. These are used in stronger promotions Printing copy ON the RETURN ENVELOPE! Order Forms: STRONG: 1. Speed claim form 2. Speed Claim certificate 3. Sweepstakes Entry Form / Order Form 4. Bonus Claim Section 5. New Sweepstakes Entry Section 6. Order Form / Bonus Certificate 7. Preferred Client 8. Special Mail Order and Sweepstakes Entrance Form 9. Merchandise Order Form 10. Sweeps Entry Form / Order Form 11. Special RSVP Reply Card WEAK: 12. Your Reply Form 13. Personal Memo Mail / Phone Reply 14. Discount Order Form 15. Your Reply

16. Special Order Form

Package Analysis Selling Effectiveness of Any Promotion 1. Attention Factor 2. Ease of Review of the Promotion 3. Word-selling power factor 4. Graphic Factor 5. Ease of ordering 6. Cost effectiveness of promotion 7. Offer of proposition factor (How much of a bargain do they get) HOW TO WRITE KILLER SALES PROMOTIONS STEP 1: Review of what people want and why people buy (7 Steps pgs 31-33) or notes page #7 STEP 2: Profile your most typical client. Create your avatar. STEP 3: Define and illustrate your p/s a. Sketch it b. Give physical description i. Size, wt. Materials components, appearance c. Compile the cost info on your p/s i. Selling price ii. Direct cost of the p/s iii. Cost to receive advertising iv. Gross profit = i minus ii d. SEE CH 8 NPGS Principle 7 for how to determine the profitability of your promotion e. List the quality points of your p/s i. How the p/s was produced ii. Quality/source of materials iii. Quality/source of craftsmanship f. List the benefits of your p/s. First list apparent benefits. Then, refer to what people want and why people buy, and write all needs from that list the p/s fulfills.

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i. All Benefits ii. Main Benefit iii. Best Hard-Hitting Benefits (BULLETS!) g. Describe the company that produces the p/s and talk about all of their CAC/ merit/ proof / record Step 4: Conceptualize your promo. Consider overall format, main thrust, main benefit, and any unique approach you may try. Use tested headlines on pages 135-142 and tested offers on page 81 as helpers Step 5: Sketch the format of your promotion. If it is a space ad, sketch headlines, indicate where pictures will be placed, etc. If a direct-mail promotion, sketch each piece in the promotion. Step 6: Outline your body copy. First write down all the items you defined in step three on 3x5 index cards. List each description and benefit individually on a separate card. Next, add any of the following common elements of winning promotions that would fit this product and promotion. 1. Interesting anecdotes 2. Quotes from books, news, tv, magazines, govt. studies, "Stamp-ofapproval" organizations 3. Famous people, financial institutions and organizations who use p/s 4. Scientific experiments and surveys 5. Testimonials of p/s users 6. Your testimonial and opinion 7. Side benefits 8. Propositions 9. Geographic tie-ins 10. Proof of your existence and credibility 11. Order info and methods 12. Proposition, sweepstakes, etc. 13. Guarantee 14. Curiosity Factor Step 7: Put your index cards in order according to the following sequence of subject categories:

1. Product main benefits 2. interesting anecdotes - famous people book quotes - geographic tie-ins 3. How product is produced 4. Product quality 5. more interesting anecdotes - famous people - book quotes 6. Bullets 7. Testimonials 8. Side benefits 9. Miscellaneous 10. Proposition 11. Detailed physical description 12. Guarantee and proof of your existence 13. Order information Step 8: Write your body copy from your sequenced outline of index cards. Here is the check system for writing body copy: a. b. c. d. e. Use common words Use short sentences Use short paragraphs Make one paragraph flow into another get the attention of the reader right at the beginning f. The main point of your promotion should be on the benefits it brings to the customer. Avoid talking about yourself or unrelated items unless they somehow tie into a benefit. g. Give proof of your claims, such as test results, famous people who have used your p/s, testimonials or endorsements h. Use specifics . Avoid generalities. The more exact numbers, the better. For instance "Our product will increase your financial yield over 33% or "Our report will allows you to make an extra $45,000 a year. i. If possible, include a special offer associated with your p/s so that a buyer has the opportunity for a bargain or discount or gets some additional benefit for ordering immediately j. Make your copy interesting with related anecdotes. The best anecdotes are

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about famous people or famous institutions. k. Keep your reader's minds working. The best way to do this is to ask questions here and there. l. Break up your copy with bullets (numbered lists of benefits or benefits accented by bullets ) bold paragraph introductions and underlining m. Avoid humor and puns. n. Talk in word pictures. Words are VISUAL! o. Minimize or cut out all adjectives p. Greased chute - no "dead spots" in your copy. q. DO NOTE USE: Rhetoric, humor, puns, clever sayings, platitudes. PROMOTIONAL COMPONENTS LIKELY TO INCREASE RESPONSE note: items followed by an * (asterisk) have been tested at SCI. 1. Personalized salutation* 2. Offering a telephone number to respond (NOTE: both Halbert AND Claude Hopkins claim to have tested this and gotten a THREE TIMES (3X!) greater response by using ONLY a telephone option) 3. bold type* 4. short words, sentences and paragraphs 5. Two colors of type* 6. Statistics* 7. Two pictures (NOTE: Halbert claims that using a "picture enclosed teaser and actually enclosing a picture will DOUBLE your response) 8. P.S. * 9. Picture of owner / inventor* 10. free sample with solicitation* 11. action verbs* 12. bonus offer* 13. handwritten notes in margins* 14. list of benefits* 15. vivid words - "picture forming"* 16. gift certificates* 17. discount coupons* 18. guarantees* 19. testimonials* 20. sweepstakes *

21. personalization* 22. important or professional looking carrier envelope* 23. deadline date and call to action* 24. date in the headline* 25. free gift with order* 26. 8 1/2 " x 11" paper for letter* 27. Standard typeface that looks like a typewriter for letter* 28. Advance letter sent before the promotion* 29. partial or split payment offer* 30. offering a single product rather than a group of products * 31. scratch-off devices for sweepstakes* 32. a higher pric3 that has been crossed out with a lower price in "handwriting" PROMOTIONAL COMPONENTS LIKELY TO DECRESASE RESPONSE 1. all the same type 2. ornate type 3. more than 3 pictures 4. no pictures 5. long words, sentences, paragraphs 6. all same size paragraphs 7. Small margins 8. technical terms 9. negative phrases 10. No guaranee* 11. Generalities 12. Cheshire address 13. "Occupant" mailings 14. meter postage* 15. Bulk mail* (NOTE: Halbert claims that bulk mail typically only decreases response because it LOOKS like bulk mail) 16. Halbert's "30 Day Hold" 17. 8 1/2 x 14" paper for the letter 18. Pica (larger) typeface for the letter 19. Surveys 20. Copy run on the front and back of the sheet for a letter Promotional components which have LITTLE or NO EFFECT on Response

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1. Two or three color logo / elaborate letterhead* 2. Prepaid BRE (business reply envelope) * 3. Bill me later* 4. Free trial* 5. C.O.D.s 6. Handwritten address* 7. Brown kraft carrier envelope* 8. mail arriving on certain day of week 9. Name on order blank 10. Colored envelope 11. live postage 12. First Class 13. Mail arriving at a certain time of the month 14. over-sized envelopes 15. No toll-free 800 number Other Promotional Tips & Tricks 1. Use promotions that look personal or important. Even though thousands of people will get a promotion you want to present that each piece of mail has been uniquely prepared for each recipient and is an important communication. 2. Use premiums 3. Use the jargon of specific industires 4. Give your clients the opportunity to requrest current catalogs 5. Find out why clients are inactive if they don't plan to buy again 6. Try a different format 7. When cold calling, write all info on given on one card. On the second call, you know the person so...use the information in the follow-up! 8. Invite sales-force input for suggestions on the Direct-marketing program 9. Try advertorials 10. Use referrals and your client list to generate new business 11. Use direct mail for trade shows 12. Use product back-ends to make a second sale 13. Give something free 14. Use specialized market reports

15. Make your letter look like a first-class business letter, but mail bulk 16. Use a low-cost "survey" mail package 17. Identify the "quality and costs" of lists 18. Use a separate "instant delivery" option slip as an insert 19. Obtain an SIC (standard industry codes) overlay for B2B, in-house client mailing lists 20. Don't try to convince your prospects of anything 21. remember, educating people is EXPENSIVE and better done by authorities and the media 22. Don't stop with one fulfillment package. Prospects needs AT LEAST 3 followups 23. Use testimonials in advertising, particularly in a limited field 24. Use a free trial offer 25. Use two-part premiums when mailing to names 26. Match the message to the market 27. Use premiums ONLY when mailing to names 28. To increase response for a gift p/s, include a quality gift card from the p/s mfg. / provider in the mailing package 29. Use personalized letters in fulfillment 30. Try a last-chance remail of first mailing piece with one color change Paper matters too... 1. Use good paper - cheap paper may reflect negatively on the quality of your p/s 2. Experiment with a texture or laid-finish stock, which looks expensive and may not cost much more than ordinary paper. But don't use texture for halftones - photos will NOT reproduce well. Coated stock is preferred for halftone and color reproduction -coated will cost 35% to 100% more and weighs 60% to 85% more than the uncoated sheet which may hike postage costs. 3. Test yellow stock vs. white...it seems the UGLIER the color of the order form, the HIGHER the response

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4. Investigate close-out stock - could save you 20% or more 5. Ask for a paper sample when getting a price quote 6. Use common sense ; avoid using gloss finish or dark paper for a response card. BOTH make it hard for your buyers to write Photo guidelines 1. Show the p/s in USE 2. Use models that fit the demographics of your target audience 3. Remember, if doing before and after you want things that also LOOK GOOD after they've used the p/s and achieved the results, NOT simply things that show dramatic results e.g. if you have an ugly stoopshouldered, squint eyed girl who loses 100 pounds on your weight loss p/s you still don't want to use her. 4. Shoot close-ups to get the reader involved in the picture 5. The placement of the object in your photo should lead people into the copy NOT away from it. Other Well-Known Techniques 1. Use the familiar look of the typewritten page 2. Use copy in all-capital letters sparingly lowercase makes for faster reading 3. Begin paragraphs with oversized capital letters 4. Express numbers as digits instead of spelling out 5. Use bold only one or two points larger than the rest of body copy and don't overdo it 6. Underline for emphasis in sales letters 7. Reduce hyphenation 8. Use serif typeface - 10 point at least when writing to those over 35. Serif typeface is easier to read 9. Limit script type, it's hard to read. 10. Use sans serif type in headlines and subheads.

11. Break up copy into blocks using subheads. Run a stand-alone line every three paragraphs if copy is in column form. Print subheads in a different typeface from body copy 12. Never exceed 350 words on a page or 400 words on following pages of a letter 13. If copy continues from front to back, end the first page mid-sentence 14. Black on white stock is best, followed by black on yellow. 15. Run heads and copy across more than one panel so the reader has to unfold the paper to read 16. Use handwritten messages and "doodles" in the margins 17. Always allow 16 point size spacing on order forms for anything the buyer must fill out 18. Certificate borders increase perceived value of coupons 19. The purpose of package design is to ENHANCE READERSHIP on important areas to increase sales Lessons from Sales and Marketing Masters Elmer Wheeler: Don't sell the steak, sell the sizzle. It's not the beef people will buy. It's the charcoal aroma and the tender and tasty tidbit, so warm and juicy it melts in your mouth Don't write - telegraph. Find the sizzle (major emotional appeal) in what you're trying to get across and then express the sizzle in a to-the-point fashion Say it with flowers: give solid proof and reasons why you do what you do and say what you say for ANYTHING claims about p/s, deals, etc. Don't ask IF - ask WHICH! Frame it so they choose between something and something, NOT something and NOTHING. Edward Mayer Jr.

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BOOK : how to Make More Money with Your Direct Mail Mayer's Seven Cardinal Rules for DM Success 1. What is your objective? No program will succeed if you do not know your objectives. 2. Address correctly to the right list. Reach the right person, at the right time, on the right list. The LIST is the most important part of your mailing. 3. Write your copy to show what the p/s offered does for the reader. The ultimate question is: "What ultimate benefit is offer and whom does this directly benefit?" 4. Make layout and copy fit. Keep your mailings in character with the market and offer (NOTE: contrarian copy though can often pay off big time) 5. Make it easy for the prospect to take whatever action you want him or her to take. Make your you call them to action! 6. Tell your story over and over again. Don't give up after just one mailing. Mail to your list at least 10 x per year. 7. Research your direct-mail. Keep testing all vital factors: your p/s your offers, your copy, your lists and the timing of your mailings Robert Collier BOOK: Robert Collier Letter Book Six Essential Elements of Every Letter 1. Opening - gets the readers attention by fitting in with his current train of thought and establishing a point of contact with his interests. This excites the reader's curiosity and prompts him to read further. 2. Description or explanation - pictures your proposition to the reader by first outlining its important features, then filling in the necessary details. 3. Motive or reason why - creates a longing in the readers' minds for what you are selling or impels them to do as

you want them to , by describing what it will do for them, not your proposition e.g. the comfort, the pleasures, the profit they will derive from it. 4. Proof or guarantee (risk reversal) offers to the reader proof of the truth of your statements or establishes confidence by a money-back-if-not-satisfied guarantee. 5. Snapper or penalty -gets immediate action by holding over your readers head the loss in money, prestige or opportunity that will be their loss if they don't act at once. 6. Close - tells them what to do and how to do it and makes it easy for them to act NOW. Maxwell Sackheim BOOK: Seven Deadly Mail-order mistakes 1. Offer the wrong product or service - is what you're tyring to sell light in proportion to it's price? Are buyers looking for a "magic bullet" or do they "value by volume" 2. Offer merchandise at the wrong price make sure your math works! 3. Make the wrong offer - make sure that your offer bringsa high enough response to be progitable for you. 4. Wrong timing - if seasonal items, test how far in advance of using time or how later you can successfully mail. With your own client list, test how soon after receiving and order your recent buyers will respond again. 5. THE USE FO WRONG LISTS. The list is THE MOST IMPORTANT aspect of your business. Test, test, test! 6. The wrong format - What you say to your buyers and how you say it are very important. AIDA! Remember... most people are bored and lead VERY dull, boring lives. From John Carlton - you may need to test the format in which your p/s is delivered. Some people will want books. Others videos. Other a simple

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pill. Others still a person. So, Test, Test ...TEST! 7. Bad Management: The mail-order business involves almost every known business requirement. IF you fall on your face in management you WILL lose your shirt. NOTE: MANY entrepreneurs make TERRIBLE managers. Focus on what you do best, and hire lieutenants to manage for you. Claude Hopkins BOOKS: My Life in Advertising & Scientific Advertising Offer Service! That is all your prospect wants. Appeals such as "insist on this brand" and "Avoid Imitations" indicate a motive with which buyers cannot sympathize. Forget about yourself entirely. Be a showman! Nothing will ever beat one incredible, dramatic demonstration Tell Stories Have a man represent your p/s's - people want to buy from people, not companies Changes in a Headline may increase advertising effectiveness up to 21 times

your letter shop can handle the size of envelope you plan to use FROM: 7 Steps to Freedom II, NPGS STEP 2, Pages 2-151 through 2-161

NPGS Principle 6: Efficiency of the Medium This is determined by: Cost -per-exposure (cost of actually delivering the message e.g. on TV 2 minutes of airtime, or in a space ad a half-page ad) Quality-of-Exposure: how well the prospect actually absorbs the message Density-of-prospective-buyers factor: The greater the density of prospective buyers the higher your response will be Type of Medium: this varies by (a) Promotion Transmission and Delivery Media and (b) the Product or Service Delivery Media Promotion Transmission and Delivery 1. Direct Mail a. Inserts b. Catalog c. Postcard d. Fulfillment Piggyback 2. Telephone -outbound a. salesman solicitation b. computer dialing with salesman solicitation 3. Interactive a. Computer online b. Interactive TV 4. Broadcast a. TV b. Radio c. Cable TV 5. Space Advertising a. Newspaper b. Periodicals c. Free-Standing Inserts 6. Miscellaneous Media a. Internet b. Billboards c. Supplements d. Other

Graphic & Print Production Printers can specialize by PRICE, QUALITY, and delivery time Do NOT assume that the cheapest "test printer" will still be the cheapest when you roll out Print shops have "acceptable overage & underage" you need to specify to them that you will NOT accept any underage, and only very minimal overage. If a job is to be machine-inserted, it is very important to make sure that the marerial will fit the "stations" on the inserting machine. Otherwise this machines will jam and skip and invalidate or ruin your mailing. Not all inserters are created equal, so it's best to check and MAKE SURE the machines at

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Client Response Media 1. Telephone 2. Mail 3. TV 4. Internet Client Payment Media 1. Mail (check, cash, money order, credit card) 2. Internet (paypal, credit / debit card) 3. C.O.D. 4. Credit Card by telephone 5. In person in lobby 6. Fax 7. Check by telephone Product or Service Delivery Media 1. Mail (postal, non-postal) 2. Parcel Delivery (FedEx/ UPS) 3. Online Computer Download 4. Internet accessed 5. Fax Selecting A Medium Which Best Fits the Means to Sell Your Selected Product Or Service >The first step in selecting a medium is to get the best description of the prospective client for this p/s Build a "client avatar" with demographic and psychographic information MEDIA AVALIABLE TO YOU Printed Periodicals 1. Daily newspapers a. run of press (ROP) display advertising b. classifieds c. free-standing inserts (FSIs) d. Newspaper - 4-color Sunday Comics e. Newspaper Sunday magazines -supplements 2. Magazines 3. Weekly Tabloids

4. Trade and professional newspapers such as the Wall Street Journal or Investors' Business Daily Direct Mail Categories Direct Mail to client list Direct Mail to rented list Direct Mail to compiled list pre-fulfillment up-sell or cross-sell fulfillment package inserts billing statement inserts co-ops (w/ other advertisers)

1. 2. 3. 4. 5. 6. 7.

Broadcasting Categories 1. Network Television 2. Cable TV 3. Radio Two-Way Home Electromagnetic Communications Device Phone Internet Interactive TV Other billboards car wraps or displays in-store sampling on package ads flier How to Place A Space Ad 1. select a city in which to run your ad 2. consider how much you want to spend, the type of market you're trying to reach, and if your p/s is practical in that geographic region e.g. ear muffs will not sell in Arizona 3. Consult the SRDS Newspaper Rates and Data Guide 4. Use your client avatar and compare ti to the demographic specs. 5. Select the most desired areas for your p/s by doing this: a. Prepare an excel sheet b. Setup rows of city, paper, cost per Line, Number of lines, total cost,

1. 2. 3. 1. 2. 3. 4. 5.

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circulation and Cost per thousand (CPM) c. fill it out as you move through the SRDS for cities that have a mass market demographic match for your p/s d. NOTE: watch for circulation variances based on days of the week e. You use this spreadsheet to calculate your CPM and determine which is the best bang for your buck f. In order to roughly estimate the cost, do the following: Looking at your spreadsheet and the papers you have selected, divide the number of lines in your ad by the total number of lines for a full-page ad in that paper. This will give a percentage. Thus, your ad represents a blank percent of the whole. take this percentage and multiply it by the cost of a full page ad to get your estimated ad cost. For an exact list use page 2-174 through 2175 of 7 Steps to Freedom II, Section II. See Pages 2-181 through 2- 183 for information on ordering a Mailing List. TESTING Test one thing at a time Track meaningful metrics Make sure your test lists are representative of the entire list. The best way to do this is to split the entire list into Nth sampling or to select zip codes ending in a certain digit Do follow-up testing to make sure extraneous conditions were not a factor Do NOT make major decisions based on minor results or one initial test

1. 2. 3.

4. 5.

Chapter 10 is all about projecting response CH 11 is about prospects CH 12 is about progressive response increase CH 13 - Rollout CH 14 - your 1st NPGS

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