BASIC MAIL ORDER: A Beginner's Library

1. How to Start-Up Any Business!

2. Dictionary of Mail Order Terms

3. Secrets & Top Tips of Mail Order Advertising

4. How to Set Up Your Own Mail Order Distributorship (For General Merchandise and Books)

5. A Short Course in Mail Order Fraud!

6. What You Need to Know When Buying A Personal Computer

7. What You Should Know About Multi-Level Marketing! ---------------------------------------

HOW TO START UP ANY BUSINESS:

Legal Entity:
Determine whether you are going to be doing business as an individual proprietorship, partnership or corporation. The individual proprietorship is the form of entity used by most small businesses at start up. If you need additional capital or expertise a partnership may be the best entity. You can always incorporate later if practical. The expense to incorporate a small business is nominal but since the latest income tax changes unless incorporating will make you more money or better protect your investment there is not much benefit in forming a corporation. Even though there is limited liability as to your personal assets with a corporate entity when obtaining outside financing, or in the event funds are misused, you can still be personally liable.

The strict laws, higher State Income taxes in some states, the legal work involved and the heavier accounting and tax reporting requirements are some of the disadvantages of running your business as a corporation. Also, if you decide later to close out your corporation, the paper work involved, especially to conform to the provisions of the Internal Revenue Code, is difficult and often runs into more problems than the initial incorporation.

Of course when interest rates are high incorporating may be the only practical method to get sufficient capital to start-up and run your operation. However when you go public with your stock you are looking at a whole new ball game. Federal regulations, State requirements, etc., will make it imperative to hire a good corporate attorney and in most instances you will need an investment company to sell the stock. The costs involved to go public are enormous and sometimes cost up to one-third of the proceeds from the sell of stock leaving the working capital and fixed assets in peril.

Business Name:
To make the public better aware of just what your firm offers it is generally good practice to choose a business name that describes your product or service. Apply for a fictitious business name with your state or county offices when you plan on going into business under a name other than your own. Also, the bank will require a certificate or resolution pertaining to your fictitious name at the time you apply for a bank account. Your county clerk can tell you where to apply for the name.

Location:
The location of your business will of course vary depending on the kind of business or service. Retail businesses should be located in an area with adequate parking space and heavy foot traffic. If you locate in a shopping center be certain you understand the terms of the lease. Is it a Net-Net lease requiring the tenants to pay all center expenses including utilities, signs, lighting, taxes, insurance, garbage, maintenance, etc., in addition to all the usual store expenses? If you're going into an "office" business, or an unproven venture get a month to month rental agreement. In the event your venture is unsuccessful you will not be stuck with future rent as you would if you were under a long term lease. The landlord is in control. You must get his approval in the event you want to sub-lease to another and even if he agrees you are still secondarily liable for the term of the lease.

Failure:
Think positive about your new venture but don't expect to make a great deal of money with little or no investment. Lack of capital has been the downfall of many otherwise good business start-ups. You may have limited take home pay for the first few months as you plow your profits back into the business to make it grow. You will need a substantial cash reserve or other source of income, during the "build-up" phase, to take care of your personal expenses.

Lack of training and experience is another great destroyer of dreams. Be sure you have the know how and are capable of running the business your propose. Get into something you already know or can learn without getting hurt in the process.

If you are going into a retail operation know who your suppliers will be before you even start looking for a location. Buy the right kind of merchandise, at the right prices, to fit the kind of customer you will be serving. Keep your inventory in balance with sells and cash flow. Plan ahead. Learn how to promote and advertise for best results. Keep up with the trends of the time and know at all times what your competition is doing.

A few of the other things leading to quick failure are: lack of over-all business planning, inept managers or employees, incomplete accounting records, improper financial reports, lack of control over assets, bad credit policy and inability of the owner to reach or act on decisions.

Bank Account:
Get to know the manager of your bank. He will be one of your best references. Ask his advice and get his help on financial matters. The more he advises you the better he will come to know you. Develop a line of credit so it will be there when you need it. The banks can't exist without making loans so don't hesitate to apply. When you handle high cost items your bank may be able to work up installment contracts for your customers. Get set up with Mastercard, Visa, etc. It will cost you from 3% to 5% but you must have this service available for your customers if you want to stay in business.

To establish your bank account you will need a Federal ID number or social security number along with your certificate of assumed (fictitious) business name. If you are incorporated the bank will want a copy of the minutes and a corporate resolution authorizing the account.

Payroll Taxes:
One of the first things to do when starting your new business is to get Federal and State application forms for ID numbers. Request "Business Start Up" application forms from the Internal Revenue Service and from the State Tax Commission. After your applications are sent in you will be notified of your number and get a packet of information. Depository forms, quarterly report forms, W-4-A's, W-2's, estimated tax forms, etc., will then be mailed periodically as needed.

Payroll taxes and expenses will amount to from 13% to 17% of your gross payroll depending on workmen's compensation rates for the various job classifications. Payroll expenses include:
FICA taxes (Social Security)
FUE taxes (Federal Unemployment)
SUE taxes (State Unemployment)
WC or SDI (Workmen's Compensation)

Also, you will be required to withhold from your employees wages and pay over to the Federal and State:

FICA taxes (Social Security-Employers share) Federal Income Taxes
State Income Taxes (Most States)
State Disability Insurance (Some States)

If you are a sole proprietorship business or are a partner you will have to file and pay Federal estimated tax reports each quarter based on estimated annual income. (Some states also require periodic estimates through the year.) Partnerships file an annual information return and each partners share of profits is included in their individual personal income tax return. Corporation must also file for estimated taxes.

Hiring Employees:
Throughout the year it takes hundreds of hours of your time to prepare and file the various payroll reports and other governmental forms required. This is no reason for you to sacrifice 24 hours a day trying to keep up with your business all by yourself without adequate help. When you have expanded to the pint you can afford good employees and/or managers, don't hesitate, hire them. Properly trained and advised they will make more money for you than you can ever make going it alone in most ventures. Advertise in the classified section, take applications, set up interviews and hire the best.

Utilities:
When you first start thinking about establishing your own business find out when the next issue of the telephone book will be printed and the deadline for getting listed. Place a reasonable display ad in the yellow pages under the classification which best describes your product or service. It could be a catastrophe if you missed the deadline for the next issue by a few days and have to wait 9 months to a year for a listing in the permanent directory. Advance deposits are usually required when you sign up for Power, Gas, Water and Sewer.

Licenses and Permits:
Apply at City or County offices for local licenses required. If you are going into a retail business and your state is subject to sales taxes, apply for a permit and number with the State Franchise Tax Board or other proper department. You will have to add the taxes to your customer's purchases and pay pay the proceeds over to the state periodically. Some states require a nominal deposit with your application. Your various suppliers will need your permit number for their files before they will sell to you. You do not have to collect sales taxes across state lines unless you have businesses in other states. For example: Persons in the mail order business sending their Advertising and products nationwide need only collect taxes for sales made to persons within the state.

Occupational Licenses:
Persons entering into certain kinds of business will have to obtain an occupational license through the State or local licensing agencies. These include Real Estate Personnel, those in the medical profession, barbers, beauty operators, electricians, plumbers, contractors, insurance agents, engineers and many others. Passing a written examination is generally required before a license is issued.

Other Licenses:
Federal regulations control many kinds of interstate activities with license and permit requirements. These include such businesses as common carriers, certain food processors, TV stations, radio, drug manufacturers and many others. Any organization which shops, sells, or advertises in more than one state is subject to Federal Trade Commission (FTC) regulations. This includes mail order operations although no license is required in most cases. Any firm distributing food products, including restaurants, is subject to permits and periodic inspections.

Other permits required for certain businesses include inspection and permit for occupying a new building that caters to the public, fire permits, pollution control permits, and those which regulate the size, shape, style and placement of signs, etc.

If you are in doubt about which permits and licenses pertain to your chosen business it may pay to first set down with the proprietor of a similar business in a different area or town and get full information from them.

Insurance:
Don't forget about insurance. The premiums are expensive, especially business liability, but you cannot operate with peace of mind without full coverage. Check with a good agent regarding Fire, Liability, Workmen's Compensation, Business Interruption, Burglary, Glass, Extended Coverage, Vehicles, etc. Have two or three agents submit estimates.

Bookkeeping and Accounting:
There is probably no reason you cannot do your own record keeping, at least in getting started. Just use a separate check book and bank account for your business. Use a columnar check register with several "headed up" columns and distribute the amount of each check written to the proper columns. List your deposits on the check register and carry across a continuous bank balance.

If you don't have a cash register to start with you can write up sales on duplicate sales slips, but a cash register is highly recommended. You will be able to ring up sales to different departments and by different clerks. It will pay for itself many times over in just a short time. Record receipts from the "totaled out" cash register tape at the end of each day to daily or weekly sheets.

With just the above two records of original entry plus a "General Journal" to record any extraneous transactions, and a "General Ledger" to which accounts from the three records are posted at the end of each month, you have all that is necessary for a simple "cash" accounting system. This "cash" system can be easily converted to the accrual method of accounting by simply journalizing accounts receivable, payable, accruals, prepaid insurance, etc. After posting these entries the Balance Sheet and Income statement can be readily completed.

After preparing the financial statements, reverse the accruals and you will be ready for entries the following month.
You can enter your gross payroll, payroll deductions and the net amount in your check register. Give your employees a payroll slip showing all the facts and maintain subsidiary payroll sheets with all the information as to each employee.

With these individual payroll records and the control accounts in the General Ledger you have all the information necessary to complete the various payroll tax reports and returns as they come due.

At the end of each annual accounting period all the information for filing your Income Tax returns will be right at your fingertips.

If you know nothing about bookkeeping have an accountant set up your books on the basis of the above simple method. Let him "keep the books" the first few months while you learn how then, if you prefer, take them over yourself. Use your accountant as your advisor. After a short time you probably will be able to do all the accounting without outside help.

Equipment Required:
Every business is different and will not be using the same kind of fixtures and equipment. Sometimes it is much better to preserve cash for inventories or working capital and purchase good used fixtures and equipment at a much lesser price. With the recent changes in the income tax laws you will have to do extra analysis to determine whether a lease program or direct purchase is the best way to proceed. Whether to buy or lease depends on many facts which can only be determined by observation and computation. It could be better to lease electronic equipment, computers, copiers and certain other products due to the rapid advances continuously taking place in these fields.

Suppliers:
Suppliers are reluctant to ship their goods to new businesses. That is one reason you should get to know your banker as he can offer credit references acceptable to most any firm. You will have to convince your proposed suppliers that you are honest and hard working and that your business has a good chance for success. You may have to pay C.O.D. while getting started so take this fact into account when preparing your financial planning and start-up requirements.
After you have become established with your suppliers send your financial data to Dun And Bradstreet so your company will be listed in their files. Most every firm in the country recognizes Dun and Bradstreet as a most reliable organization for obtaining correct credit information.

Work with your suppliers to take advantage of special offers, cooperative advertising programs, trade and cash discounts, dated invoices, etc.

Advertising and Promotion:
When you are getting started give a press release to the local newspaper. Depending on the type of business, it may be very profitable to have a few thousand circulars printed and distributed throughout the area. Or you can have grand opening circulars inserted in the newspaper to be distributed to subscribers.

Watch the ads of your competitors. As you find time clip various ads of businesses similar to your own, from large city papers. File them for ideas when preparing your own ads.

There are all kinds of promotional ideas and gimmicks to keep your business out in front of your competitor. Search the library, book stores and mail order media for such publications. Choose the ones which fit your promotional programs or those that can be "twisted" to fit and get them working for you.

BUSINESS FORMAT:
Owning your own business is one of the better ways to gain wealth provided you know what is required. Starting a business is risky but your chances for making good are better if you understand the problems you will meet and work out as many of them as you can before you start.

The Business Format that follows will be a valuable aid in getting you started in a business of your own. Use the format as a check list and guide. If the response to the questions and comments is favorable you are in a preferred position to go into business for yourself.

How about you ... Are you the kind of person who can get a business started and make it go?

The first thing you need to know is if you require someone else to get you started or if you do things on your own with nobody telling you to get going.
____________________________________________________ Do you like other people and can you get along with just about anyone?
_________________________________________________________ Are you able to lead others? Can you get most people to go along when you start something or do you have to follow the lead of others before you act?
_____________________________________________________ Do you like to take charge of things and be responsible for seeing them through?
__________________________________________________ How good are you at organizing things; do you have a plan before you start and are you the one who gets things lined up for the group?___________
Can you make yourself keep going as long as you need in order to accomplish something?
______________________________________
Are you able to make the right decisions most of the time, even when you have to make up your mind in a hurry? ___________________________
Can people trust what you say and have confidence that you don't say things you don't mean?
_______________________________________ Do you stick with it and finish what you start? ____________________
Are you in good health?
_______________________________________

Think very seriously about why you want to own your own business and whether you want it badly enough to keep you working long hours without knowing how much money you will end up with.

Have you worked in a business like the one you intend to start? ________
Have you worked for someone else in a management capacity? _________
Have you had any business training in school? ______________________
Have you saved any money for your venture? _______________________

How about money? Do you know how much money you will need to get started?

To answer these questions first determine what furniture, fixtures and equipment you will need. List the cost, the down payment or cash price, and if purchased on an installment plan, the amount of each monthly or periodic payment.

Price

$_______
Down Payment

$_______
Amount of each payment
$_______

The furniture, fixtures and equipment required may include such things as counters, storage shelves, cabinets, display stands, tables, cash register, safe, window display fixtures, special lighting, outside signs and delivery equipment.

Now list the starting cost you have to pay only once, such as the following:

Furn., Fix, & Equip. (per previous page)

$______
Decorating and remodeling

______
Installation of fixtures and equipment

______
Starting inventory

______
Deposits with public utilities

______
Legal and other professional fees

______
Licenses and permits

______
Advertising and opening promotion

______
Advance on lease

______
Other and Misc. cash requirements

______
TOTAL ESTIMATED CASH NEED TO START

$______

Now list the estimated monthly expenses:

Salary of owner-manager

$______
All other salaries and wages

______
Payroll taxes and expense

______
Rent or lease

______
Advertising

______
Delivery expense

______
Supplies

______
Telephone

______
Other utilities

______
Insurance

______
Property taxes

______
Interest expense

______
Repairs and maintenance

______
Legal and accounting

______
Miscellaneous

______

TOTAL ESTIMATED MONTHLY EXPENSES

$______
Multiply by 4 (4 months)

$______
Add: Total Cash needed to start above

$______
TOTAL ESTIMATED CASH NEEDED

$______

When you have found the approximate amount of cash needed to start, determine how much money of your own you can put into the business.

Where are you going to get the rest of the money you need to start the business?
__________________________________________________ Do you know the credit terms of your suppliers? ____________________
Have your prepared a projected Income Statement to know what profits you may expect?
_____________________________________________ Is projected profit, including the salary you pay yourself, sufficient for you to live on and still generate working capital to help your business grow? _____________________________________________________

How about a partner?
If you need a partner with money or know-how do you know someone you can get along with as a partner? ________________________________
Do you know the good and bad points of being an individual proprietorship, a partnership, or a corporation? _________________________________

How about customers?
Do most of the businesses in your community seem to be doing well? ____
Have you determined whether stores like the one you want to open are doing well locally and nationally? _______________________________
Do you know what kind of people will want to purchase what you plan to sell?
______________________________________________________ Is there a good demand for your kind of business? ___________________

Getting started in your business:

How about your building:
Have you found a good building in a good location for your business? _____
Will the building fit your business purpose without to much outlay for remodeling or leasehold improvements? __________________________
Is there adequate off-street parking?
____________________________
Have you determined if the zoning is right? ________________________
Have you had your attorney check the small print in your lease?_________
How about merchandise:
Have you determined how much inventory you will need to open? ________
Have you found suppliers you can depend on for good merchandise, when you need it, at a favorable price? ________________________________
Have you compared prices and credit terms of different suppliers? ______
Have you checked out your competition in every possible manner to determine pricing, good will, volume of business, etc.? _______________

How about keeping records:
Do you know how to keep track of your income and expenses; your accounts payable and accounts receivable? ________________________________
Do you know how to control your inventory so you have enough on hand for your customers buy not more than you can sell? ____________________
Can you compute payrolls, prepare tax reports, etc., or do you know a bookkeeper or accountant who will help with your accounting requirements for a reasonable fee? ______________________________
Do you know what financial statements you will need in order to guide your operations?
____________________________________________ Have you found out what licenses and permits you will need and have you had an opportunity to read up briefly on general business law? _________

Protecting your property:
Have you make plans for protection against theft of all kinds....shoplifting, robbery, burglar, employee control? ______________________________
Have you talked to your insurance agent? __________________________

Buying a business someone else has started: Have you considered purchasing a going business rather than setting up a new operation?
______________________________________________ Have you determined the "real" reason the owner wants to sell?________
Have you compared the cost of buying the business with the cost of starting a new business?
______________________________________
Is the building, equipment and stock in good order and can the lease be readily transferred?
__________________________________________ How about the suppliers of the company? __________________________

MAKING IT GO:

Advertising:
Have you decided how you will advertise? _________________________
Have you watched the ads of your competitors? _____________________
How much can you afford for advertising? _________________________

Price:
Do you know how to figure out what you should charge for each item you sell?
______________________________________________________ Do you know what other stores like yours charge? ___________________

Buying:
Do you have a plan for finding out just what your customers want? ______
Will your plan for keeping track of inventory tell you when it is time to order more and how much to order? ______________________________
Do you plan to buy most of your stock from a few suppliers rather than a little from many so those you buy from will be more likely to help you succeed?
__________________________________________________

Selling:
Have you decided whether you will have sales clerks or run a self service operation?
_________________________________________________ Do you know how to get customers to buy? ________________________
Have you thought about why you like to purchase from some sales clerks but not others?
______________________________________________

Your employees:
How are you going to train your help?
____________________________
Do you know where and how to find good employees? _________________
Do you know what kind of person you need? ________________________

Credit:
Have you decided whether to extend credit? ________________________
Have you checked with the bank about getting set up with Visa and Mastercard?
_______________________________________________ Can you recognize the difference between a good credit customer and a "dead-beat"?
_______________________________________________

What Else?
Could you make more money working for someone else and is for, how does the opportunity compare with future projected profits from a business of your own? __________________________________________________ Does your family go along with your plans to start a business of your
own?______________________________________________________ Do you know where to find out about new ideas and new products? ______
Do you have a "work plan" for your employees, and for yourself? _______
Have you checked to see if there are any governmental agencies available to help you set up your new business? ____________________________

IF YOU HAVE ANSWERED ALL THE ABOVE QUESTIONS, YOU HAVE DONE SOME SERIOUS THINKING. As you proceed in a business of your own don't hesitate to ask others for help. Running a business takes will power. Decide what you need then go after if full blast!

Second Book in Series

DICTIONARY OF MAIL ORDER TERMS
Includes definitions for over eighty mail order terms.

ACKNOWLEDGEMENT: A short note acknowledging receipt of an order. Used especially when a check is sent as payment, and shipment will be delayed until the check clears.

AD FRAME: A box used to frame an ad. This is usually used with display ads, but can also be used with classified ads.

AD RATES: The amount charged per word or per inch for ads.

AD SHEET: A small mail order publication printed on one or both sides of a single sheet. These usually consist solely of advertisements.

ADVERTISE: To make a public announcement about a product and/or service.

AD/ADVERTISEMENT: Ads/advertisements can take many forms, but for mail order dealers, they are primarily printed in magazines and mail order publications.

ALL PROFIT: This term is usually associated with commission circulars which pay the mailer 100% on the sale of an item-thus it is "all profit" to the mailer.

BIG MAIL: A package of mail order dealerships, ad sheets, money making opportunities, adlets, commission circulars, etc. As an example, for just the cost of postage, you can receive a Free Opportunity package containing Free Dealerships, Fee advertising, 100% commission circulars, money making opportunities, and much more. For your Free package, send four F/C (First Class) stamps or $1 to: Synergy, P.O.Box 208 Cleveland, SC 29635.

BI-MONTHLY: Occurring every two months. For instance, some mail order ad sheets or publications are published every two months.

BONUS: something offered as a reward to a prospective customer for sending an order.

BULK MAIL: The U.S. Postal Department delivers Bulk Mail for a lower postage fee, but there is a minimum requirement of 50 lbs. or 200 identical pieces mailed at the same time.

BULK MAILING PERMIT: Permit, issued by the USPS, which allows you to use Bulk Mail.

C/R (Camera Ready): With the offset printing process, the material to be printed is first photographed. A sharp, clear copy of the material is required for the best results. This clear copy is referred to as a C/R (Camera Ready) copy.

CHAIN LETTER: A scheme whereby you mail a worthless offer to other persons (usually 100). These persons are supposed to send you a nominal amount. Then they mail the offer to another 100 persons, and so on. Chain letters are illegal. If you participate in a chain letter scheme, count on receiving a cease and desist order from a Postal Inspector.

CHECKING COPY: When your order an ad in a magazine or mail order publication, you are sent a checking copy as proof that your ad was run.

CIRCULARS/CIRCS/CIRX: A piece of paper containing a printed ad or sales letter.

CIRCULAR SIZES: Vary from a 3 by 6 page up to several 8 1/2 by 11 or larger sheets.

CIRCULATION: The actual number of copies of a publication that are distributed.

CLASSIFIED AD: Relatively inexpensive ads that usually consist only of words without borders or graphics.

CLIP ART/KLIP ART: Pictures, illustrations, cartoons, etc. that can be placed in ads and circulars to make them more attractive.

CODE: An identification placed in an ad so that you will know which publication pulled an order or inquiry. Example: Dept. DG1 means the January issue of the Dealer's Gazette.

COLLATE: Putting the pages of a publication together in the proper sequence.

COMMISSION CIRCULARS: Circulars that pay from 50% to 100% commission. When you get an order, take out your commission. Send the order and balance of payment to the supplier.

COMMISSION MAILER: A dealer who mails commission circulars. There are some dealers who make a very good living just from commission circulars. For a sample assortment of the best, red hot, 100% commission circulars available, send $1.16 or four F/C stamps to: Synergy, Dept. MOD, P.O.Box 208, Cleveland, SC 29635.

CO-OP COOPERATIVE: This refers to advertising where two dealers place their ads or circulars on opposite sides of a piece of paper. This reduces the printing expense, since both dealers share the cost.

COPY: Written material such as reports, manuals, ads, circulars, etc. that are ready for the printer.

COPYRIGHT: Legal protection, granted by the government, that prevent the unauthorized copying of copyrighted material.

COUPON: A certificate that can be redeemed for cash, merchandise, or services.

DEALER: Someone who sells merchandise and/or services for another person, company or organization.

DEALERSHIP: An authorized sales agency.

DIRECT MAIL: Mail sent directly to persons whose names are on a mailing list.

DIRECTORY: An organized list of names and addresses.

DISPLAY AD: An ad that is sold by the column inch. It contains a headline and is usually in a box. (See ad frame)

DISTRIBUTOR: Someone who distributes. Usually a middleman between a supplier and various dealers.

DROPSHIP: An arrangement whereby you well a product, on a commission basis, and another dealer fills the order. See commission circulars.

DROPSHIPPER: Person who fills orders that are sold by other dealers on a dropship basis.

ENVELOPE STUFFING: With a true envelope stuffing arrangement, you would mail another firm's sales material, and you would be paid for each envelope mailed. Most dealers who advertise for envelope stuffers are simply dropshippers. Many envelope stuffing schemes are illegal. Beware of these schemes!

EXCHANGE MAILER: Dealers who exchange batches of ad sheets, circulars, etc. to reach more prospective customers and to reduce the cost of mailing.

F/C: First Class postage stamp.

FOLLOW UP: A repeat mailing of sales material to persons who have requested information or bought something from you. When you fill an order, always include sales material for other products that you sell. This is free advertising that will multiply your profits!

FREE: The most powerful word in mail order advertising. It is very often misused, but it is extremely effective when used correctly.

FREEBIE: An item that is offered without charge. Be careful with Freebies. Some persons order anything that is free, but they have no intention of sending you an order. With Freebies, ask for some F/C stamps or a small amount of cash to pay for postage, especially when advertising in mail order publications.

GRAPHICS: Pictures, illustrations, cartoons, etc. that can be placed in ads and circulars to make them more attractive. See clip art.

HEADLINE: Large, bold letters at the top of an ad or circular.

IMPRINT: Your name & address, as a dealer, on circulars, order forms, & ads. Usually rubber stamped, but also printed on a master copy from which other copies are made.

INNER CIRCLE: Persons who are attempting to make money by selling through mail order. Especially refers to persons who sell money making opportunities, programs and services.

IN THE CIRCLE: Being part of the inner circle.

IRC: International Reply Coupon. IRC's are obtained from the post office. Send them to a foreign dealer who can exchange them for stamps.

KEY: Identification placed in an ad so you will know which publication pulled an order or inquiry. Example: Dept. DG1 means the January issue of the Dealer's Gazette. (See code.)

LAY OUT SHEETS: Ruled sheets that are laid out in a grid. Used to prepare ad sheets, circulars, ads, etc.

LSASE: Large (usually a #10), self addressed, stamped envelope.
LOGO: Some type of design that is used to identify your business.

MAILER: Someone who mails material for another dealer. See commission mailer, exchange mailer, and paid mailer.

MAILING LIST: List containing names & addresses of persons to whom you send your offers. Most lists are rented for a one time use only. The best ones are lists that you create for yourself. You can learn how to create your own money making lists by order HOW TO MAKE $1,000 A WEEK SELLING MAILING LISTS. To receive the complete report, with Free reprint rights, send 2 $1 bills to: Synergy, P.O.Box 208, Cleveland, SC 29635.

MANUAL: A small book that is usually printed on 8 1/2 by 11 inch sheets.

MASTER COPY: A clean, clear, sharp copy. Use your master copy to make other copies on a copy machine, or at a print shop.

MASTHEAD: The part of an ad sheet, or other mail order publication that shows the name, address, ad rates, circulation, publishing schedule, etc.

MULTI-LEVEL: A scheme whereby the Prime Source recruits dealers who recruit other dealers. These dealers then recruit other dealers, and on and on. The persons below you are in your "downline". You collect a commission on everything sold by persons in your downline. This looks like an easy way to make money, but, in reality, the promoters of these schemes are the only persons who make money.

ONE INCH (1") DISPLAY AD: The standard ad in mail order publications. It is 1 inch deep by 2 1/2 inches wide.

OUTER CIRCLE/ OUT OF THE CIRCLE: Everyone who is not in the Inner Circle. In other words, everyone who is not trying to make money in mail order.

PAGE: One side of a leaf in a book. Also one side of a sheet of paper.

PAID MAILER: Someone who receives a fee for mailing printed material. The fee is usually paid in cash, but it can be paid in services or merchandise.

P&H: Postage and handling.
PIMAS: Publishers (insert my ad) I'll Mail All Sent. In other words, I'll mail all copies of your publications that you send with my ad on it.

PIM-50/PIM-100, etc.: Print (my ad free) & I'll Mail 50 (100, etc.) copies of your publication.

PISMOS: Printed Information Sheets for Mail Order Sales. This means any type of printed information that is sold through mail order.

PRIME SOURCE: The person or company that originates or publishes a book, manual, report, program, dealership, money making opportunity, etc.

PRINT AND MAIL: Some printers will print your circulars and then mail them for you. This sounds like an easy way to get your circulars mailed, but be careful with this! Some persons will take your money and then not mail any copies of your circulars. Also, some dealers advertise a print and mail service, but they are only contractors who send your order to the actual print and mail dealer. (See dropship.)

PUBLICATION/MAIL ORDER PUBLICATION: Any printed and published material. In mail order, this refers to magazines, ad sheets, and other publications which print advertising.

PYRAMID/PYRAMID SCHEME: A scheme by which the promoter recruits dealers, who recruit other dealers, who recruit other dealers, and so on, until there is no one left to recruit on this planet. These schemes will waste your money, and they are illegal. Avoid them.

REPRINT RIGHT: The right to copy and sell a copyrighted publication. This is granted or sold by the Prime Source publisher.

REPORT: A short publication from one to ten pages in length. Well written reports are easy to read, concise and to the point, with all nonsense and useless filler information eliminated. Selling reports is the easiest way to make money selling information by mail.

You don't need to write your own reports, because I offer a large variety of reports, with reprint rights, for as little as $1 each. My reports are printed on 8 1/2 by 11 inch sheets, and they average from 1 to 4 pages. You can make copies for pennies. Then sell them for $2-$3 even $4 each! For complete information about my reports, send a $1 bill or 4 F/C stamps (for P&H) to: Synergy Reports, Dept. MOD, P.O.Box 208, Cleveland, SC 29635.

REVERSE ADS: Ads where white letters show on a dark background. This reverse effect is very effective for headlines, but I don't recommend using it for a complete ad.

S&H: Shipping and handling. This is similar to postage and handling.

SASE: Self Addressed Stamped Envelope. Some dealers request a SASE, in their ads, to save on postage and labor. Unfortunately, this also cuts their inquiry or order rate.

SELF-MAILER: A circular on which one part is printed like an envelope front. Sales material is placed with this circular. Then the entire package is folded and stapled or taped, and then it is mailed. This saves money on labor and envelopes.

SHEET: One single piece of paper. The standard sheet is 8 1/2 by 11 inches, but a sheet can have any dimensions. Do not confuse with page. (See Page.)

SOURCE: A supplier, especially of information. Do not confuse with Prime Source.

TIL FORBID: Use this term when you want a publisher to continue running your ad in every issue until you notify them to quit.

UPS: United Parcel Service. Do not confuse with United States Postal Service.

USPS: United States Postal Service.

X-AD: Placed in ads by dealers who publish an ad sheet or other mail order publication. This tells other publishers that you will publish their ads if they publish your ads. Some publishers regard this as running two ads, and they won't allow it.

X-100-SYMF: Exchange 100 copies. Send Yours. Mine Follow.
** Copyright by Herbert Ehlers 1993. You are authorized to copy and sell this dictionary, but it must be copied in its entirety, without any modification or deletion. For best results, use the display ad below. If you need extra copies of this ad, I'll send you ten clear C/R copies for only $2.00. Order from: Synergy, P.O.Box 208, Cleveland, SC 29635.

DISPLAY AD:

FREE! MAIL ORDER DICTIONARY
Over 80 definitions of Mail Order terms. Yours Free, with reprint rights, just for postage! Send $1 or 4 F/C stamps.

SECRETS AND TOP-TIPS OF MAILORDER ADVERTISING

The Advertising Handbook for the Mailorder Industry!

Good Advertising creates more production, thus greater consumption, faster turnover and lower sales price per unit. To a great extent it determines the success or failure of the mail order operator!

When working up an advertising program remember that what is genuinely desirable to you may or may not appeal to the majority of your prospects!

Different types of merchandise or services demand completely different advertising media. Your ad must be built around the ADVANTAGES of the product and designed to APPEAL to the specific customers who will BENEFIT from your offer!

Since you MUST spend advertising dollars in order to make money in the mailorder business be sure you spend WISELY and with CONFIDENCE.

RETAIN all advertising information, brochures, sales letter, catalog, etc., you receive. USE THE IDEAS from this information as a guide in formulating your various advertising programs!

There are thousands of top mail order products to choose from, more than you can every use so choose the right ones for your programs!

If the product or service can't stand the Truth do not advertise it...Don't handle it! Truth in advertising is a must!
Your FIRM NAME, preferable, should be SHORT, DESCRIPTIVE AND EASY TO REMEMBER!

When you find the item that is a mail order "HIT", repeat your ads on the product in a number of magazines and other productive advertising media in order to PYRAMID YOUR PROFITS TO THE MAXIMUM!

Advertising cost divided by inquiries = Ad cost per inquiry!
Advertising cost divided by orders = Ad cost per order! Orders received divided by readership = percent of response!
Number of pieces mailed + by orders received = Percent of return!

Continuously use the simple formulas (above) so you will know who your advertising dollars are paying off!

Ad to find new Products:
"Calling all manufacturers, importers and suppliers ... We will feature and sell your new products in our catalog ... Send your information, sample products and programs to.....!"

Test the position of your ads in the various Media!

Test one ad against another on the same offer!

Make your sales letters friendly, clear, simple and to the point!

Your potential customers are more interested in themselves than in your product, consequently your ads and sales letter must be directed toward their point of view and their self-interests! Make them want your product because it will benefit them or will do the job better for them!

Powerful attention getting words include: Free, Amazing, Weird, Odd, Strong, Rare, Big, Secret, Latest, Easy, Fortune, Now, New, How-to!

You must put yourself in the place of your prospects and know how they feel, think and react to your ads! If "you" were the customer would your ads persuade "you" to buy?

Your Ad must have a strong headline! It must tell the prospect what to do, such as: Order Now! Rush $5.00! Use order form and reply envelope! Act Now! Action words that urge the prospect to order. Explain with simple words JUST WHAT THEY WILL RECEIVE FOR THEIR MONEY! What the product will do for them. Use believable testimonials. Appeal to their reason and get their confidence, then use a powerful close. You can get the order!

Repetition is one of the secrets of making a lasting impression on the memory.

Use coupons in some of your ads!

Since Suspense is a strong force in advertising, consider entering the name of your product toward the end of your ad!

Most everyone wants prestige, confidence, money, security, advancement, leisure time, good health, popularity, less worry, happiness, success, more time, recognition, improvement, business ownership, independence, more knowledge, satisfaction, savings ... Appeal to your prospects... use such appeals in your ads!

Quality, usefulness, reasonable price, up-to-date, and appealing to the sight are points to stress!

Make no misleading claims about your products.

Review the many ads presented in leading mail order sales magazines advertisers. Make note of the many attention getting words and phrases that catch your eye and cause you to read the rest of the ad! Use these same words in your own headlines!

With certain type products, consider turning the picture in your display ad upside down in order to attract attention from the ordinary ... If handled properly, curiosity will sell!

Study the operation of other firms to get New Ideas for sales letters, methods of handling promotion, nature of offers and any other details which may be helpful!

Some programs require a good deal of literature in order to present all the facts necessary to sell a product! With this type of product you should first advertise for inquiries then send the full ammunition by direct mail. Write up a list of important reasons why a person should inquire about your offer. Use the strongest of these reasons in your ad!

If you usually pay cash for your ads, why not set up your own advertising agency as a secondary part of your business? Your registered business name as an advertising agency may qualify your business for the 15% discount when advertising in many publications!

Direct Mail, mailing lists, not ads, are used to obtain business. You determine what type of person would best buy your product; then compile, rent or buy name lists and proceed from there.

Lists compiled from business listings in the Yellow Pages are good for many kinds of mailorder products; however the names and addresses contained in the white pages seldom get any reasonable response. Ads in the daily paper are also generally poor for mail order products. Stay with the successful operators and advertise in the various media they use ... stick with quality name lists in the right category for your products!

Unless your ad is read you will come out in the red! Make it clean, clear, concise, simple, professional and focused to the "right market" for the type of product being offered!

Always test! test! test! before spending large sums to promote or advertise your product ... Be sure it is a hit then go all out!

Your ad must name the product, describe it, tell what it will do for the reader, how he can obtain it, and where to get it!

The best part of your advertisement is the words that can be read "between the lines"!

The direct mail packet consists of the sales letter, catalog, or brochure, order blank and the business reply envelope.

The ad must attract attention and create interest and desire before the customer will act!

Know your product well so that you can be specific, sincere and positive in writing your ads! Enthusiastic ads properly laid out will generally get enthusiastic results!

It is simple to record test results for your ads and programs in the various media. DO IT!

If your product has distinctive features or trademarks, use them over and over again in all your ads ... Take advantage of the repeat psychology of keeping the name of your product constantly out in front of the Public Eye! If your product is familiar to the user, prove that it has better quality or price over competing items. Educate the consumer when presenting brand new items.

Prospects are usually more impressed by what others have to say about the product than by what the dealer tells them. Write to your customers, asking for their opinion on what your program or product has done for them and request permission to use their endorsement in some of your ads. Retain their letters as your authority for using their testimony.

Classified ads must have a great deal of thought and preparation! Use as few words as you can, but don't leave out image building words that tell stories, paint pictures and compel action!

One way to increase the readership of your ad is by inviting persons to send in money saving ideas. Print the best idea each week, or month, and award the winner $$$ ... They will read the ad in each issue in order to find out if they won and if not to see if the winners ideas are better than the ones they submitted!

Many products can be readily adapted to radio & TV selling. This can be arranged whereby you pay the station a percentage of only what is sold. There are publications available which explain how to present such offers to the stations and lists of stations that supposedly operate on this basis. You can locate such firms by a search at your local library or through salesmen and opportunity magazines....However; this method for selling mail order products is not readily available on a flexible basis, unless you have something really special.

You must be in a position to change your advertising approach with changing times and conditions. The First Paragraph of a sales letter must create attention and interest or the entire message will go to file 13!

The Second part, or body, of the letter must arouse desire by pointing out the advantages and describing the product, preferably in use, or in action and should state the price...or the entire message will wind up in file 13!

The Final Portion of your letter should strongly urge the prospect to act and tell him how to order or the entire message will go to file "13"!

You don't have near the space for your message with classified and small display ads, as you do with the sales letter so unless they are well presented they may make a faster trip down the tube to file 13!

Always use TOP QUALITY letterheads, mailing materials and supplies...This is your BUSINESS IMAGE in mailorder!

It could be good policy to place your ads through a legitimate advertising agency...It costs no more than if you place your own. Before doing business, get full information about the agency, its services and rates.

Since you must get your message across in top form, in order to pull inquiries and get orders, the ideal ad made just for the particular item being for sale is another great secret for mail order profits....Many times just one little word will change a dead ad to one that pulls thousands of orders!

Since you do not have a "window display" to use for mailorder advertising you must either draw pictures or use picture words to describe your product. Prepare advertising copy so that your prospects can "visualize the product" in their mind and "see" themselves using it to good advantage.

The headline of your ad must be powerful enough to catch immediate attention.

Use words that emphasize your product or service at the beginning or end of sentences!

Another gimmick for obtaining name lists for nothing...An ad such as..."?BIG MAIL? Send 200 of your address labels and 50 cents. We will send to mailorder dealers, wholesalers, distributors, etc....!"

"Before and After" type ads get great response on certain products.

Test and compare with different worded ads on the same type of merchandise in the same media.

When advertising make your most important points first!

When you find a new product that has possibilities for mailorder, test it! Prepare an ad for a quick test in a magazine or in a paper with a fast closing date (time from date ad is received to date it is published). As your test prove out "HIT" that particular item hard and heavy in other publications!

Test various price levels for the same product.

Qualify your prospects with proper classified ads.

Get the prospects confidence by offering free samples, by allowing a full money-back guarantee, by building your business image without exaggeration, and by showing proof of satisfied users.

Use the P.S. in sales letters to gain added attention!

When using an illustration or picture of your product in an ad, have one that shows the product in use! Picture the merchandise in use giving the owner profit or pleasure thus generating a positive, confident "YES" attitude. Remember that a picture will often sell better than 10,000 words.

Command attention to your ads or mailing pieces by marginal sketches, cartoons, different size and type styles of various words and/or paragraphs...Take the monotony out of the ad!

Consider greater pulling power of colored ads on many kinds of products. Test for added response and sales, as balanced against the much higher printing costs for color! The use of borders, lines, etc., can enhance your ads but be certain they are not placed in such a way that they detract from your message.

Type is expressed by "points". For example, one point equals 1/72 of an inch. A pica is 1/6 of an inch. Learn the various type styles and sizes. Use the right print in your ads to emphasize the best features of your product.

Don't bore the reader; Keep the sakes letter to one page whenever possible.

Offer something extra or something free in order to get immediate action!

Test only one factor at a time in order to determine which "change" made the difference in the number of responses received from your ad!

By the end of the first month after receipt of the first response from your ad you should receive 60% of the return you are going to get from monthly magazines, 75% from weekly newspapers, 75% from direct mail, 80% from Sunday newspapers, 90% from daily papers and 100% from Radio or TV! Within 2 weeks...From magazines 20%; Weekly magazines 40%; Direct mail and Sunday papers 60%; Daily papers 75% and Radio and TV 90%. DON'T DEPEND ON SUCH STATISTICS!!!!! Response can vary drastically depending on many factors, including products offered, media used, season, price, economy, etc.!!!! Your ad should be repeated again and again, as long as it is bringing back a profit....After the saturation point is reached, pull the ad. Test it again in a few months. The classified ad is the best to use for testing. For fast results, newspapers can be tested periodically. Magazines with the greatest number of responses for the least cost per inquiry should have priority for your ads. Only tests can prove which are the best ads and media for your various offers!

Have a "Built-in" follow-up program when preparing your initial advertising and promotion materials!

Your ad must end with words that compel action...Ask for the order! Now! Don't let the prospect put the offer aside or it will usually end up in file 13. Notice the many ads in the mailorder publications that close with action getting words and sentences. Use such ads to develop ideas for your own ads!

Use the personal touch in your sales letters! You must have a good mailing list for direct mail advertising. Your sales letter should be written as though you were talking in person to the reader. Read it out loud...Does it sound like talk or is it canned?

Offer mailing labels with personalized pictures, photos, or cartoon caricatures, at cost, in order to build name lists of mailorder buyers!

Choose the publications with the greatest pull for your particular ad...Determine the greatest circulation for every dollar spent...Is it better to advertise in a magazine with 10,000 readers at 20 cents per word, or pay $2.50 per word for one with 3,000,000 circulation? Even this must be tested. Perhaps the 10,000 readers are buyers of the type of offer you are promoting and will order more than the 3 million!

Determine the kind of person who reads the various publications and buy your space accordingly...Advertise ladies apparel in a media read by women, not in a science publication!

Publications which carry a large classified section generally produce good results. Be sure to advertise under the right classification for your order.

Don't be afraid to ask for the order.

Take advantage of free advertising and publicity whenever & wherever available!

If practical for a given program, include a picture of yourself, your business building, or a photo of your product...This, of course pertains basically to direct mail programs or for display ads.

Your ad will fail if:
The program you choose has already been worked to death: A number of dealers had an ad approximately the same as yours in the same publication; You are advertising an out of season product; Your price is not competitive; The offer wan not attractive; Your copy was poorly written, or it you advertised in the wring classification for the item being offered!

You generally get nothing but curiosity seekers with ill placed display ads.

"KEY" you ads in order to know what is the best way to spend your advertising dollars. Final sales volume, is the measurement of success or failure of your advertising programs!

Combine the best features of your product in preparing your ad. Not so much as to the physical characteristics but by the feeling and interest it generates in others!

Generally, you should $ ASK $ for the money in classified ads only when a small amount is required for the product! Do not expect to get good response from a high cost item asking for money with a small classified ad. Offer free details to get the inquiry first, then send your direct mail packet...Sell your low priced items direct from the classified or display ad!

Build and maintain your Goldmine...(Name list)!!!!

Remember....For us in the mail order industry, advertising is a must! We cannot reach success without it! We can't operate successfully with it, unless we do it right! Advertising is second in importance, only to a high demand product at a reasonable price, but neither can win without the other...The day we stop advertising is the day we give up the mailorder business and go back to punching the old worn out time clock!!!!!!!

HOW TO SET UP YOUR OWN MAIL ORDER DISTRIBUTORSHIP FOR GENERAL MERCHANDISE AND BOOKS

Your Own Distributorship!

When you have developed, or found, mailorder products over which you have exclusive ownership or control, you may want to consider selling through agents, wholesalers or dealers. If you go this route you should limit the number of agents and not spread your program across the country for just anyone to enter. A few good agents distributing your product without "flooding the market" will keep them working enthusiastically and generally make more money for them and you both.

When you advertise for distributors explain the exclusive features of your products and programs and how you support them 100%!
You need to develop good marketing programs for your associates, using the same general principles for the mail order business as used in any other kind of business enterprise.

Before you start recruiting associates or salespeople, prepare a realistic packet of instructional and promotional materials, including marketing plans, camera ready circulars, photos, sample ads, sales letters and stationery, order forms and whatever else is needed to make your program a winner. Make it simple so it will fit in with other offers your distributors are involved with and can be handled efficiently with little or no additional shipping or postage costs for them.

Make your prospect a distributor upon receipt of the first order and send out the packet with an exclusive number assigned to each one to be used on all orders and correspondence. Keep in contact with all our distributors by sending out information bulletins or newsletters announcing new products and promotional data. Build a drop-ship arrangement into your programs but try to get the distributors to carry a reasonable inventory. Give them special discounts, etc., as incentives to stock more of your products.

How to be the prime source!
Information can well be one of the most profitable items in mail order. Gathering and writing information can be one of the easiest ways to enter the field. There can be many variations by using merchandise and/or circulars of other dealers, but to actually make the big profit without including the middle man, one must compile and write his own.

A lot of thought should be given the subject before attempting the writing project. Never try to move to fast, thinking you will get rich over-night. This is simply unrealistic. There are a certain few who try to make it by cheating the public but the law will eventually catch up with them. If you are honestly sincere about writing, then set out to get the job done in an orderly and honest way.

You will have to spend money to pick up enough information to begin your writing project. You will have to devote much time and research in order to get started and must continue to write, as least a little something most every day to make reasonable progress.

The best kind of information to write about is that which helps others with information and advice on how to do certain things. Acquire all the information possible concerning your desired subject and study it well. You always have the possibility to make a hit with a new idea. A good report can bring you literally thousands of dollars, even more than the big time literary and novel writers in some instances.

The U.S. Government is a good source for certain kinds of information. They have a list of over 30,000 different subjects available for a reasonable price and some are free. You can write to the Superintendent of Documents, U.S. Printing Office, Washington, D.C., and request to be placed on their mailing list. It is not a good idea to take this information and copy it word for word. Bend it, shape it, ad your own ideas, change it, simplify the wording, etc. There is no need for your customers to pay you for books that have nearly the same detail they can purchase or get free from the government.

Get started writing right now!

How to make it in the mailorder wholesale book business! The real profit in selling books by mail is by having dealers sell for you. Rather than mailing out thousands of your own mailing packets at todays high postage cost, get hundreds of thousands mailed out through your own dealers. This can generate steady orders and profits and is one of the great secrets to a successful mail order book business.

There are a number of Prime Source mail order firms offering good mail order distributorships. They offer high quality books, reports and folios that appeal to the public; the kind of publications that have generated consistent high profits in the mailorder business. You should give wholesale book selling a try. Recognize the profit potential and determine if this method fits in with your other programs.

Most of the better Prime Source firms offering distributorships have a simplified program which includes instructions, profit tested literature, sales letters, brochures, order forms and return envelopes that do the selling job for you. The simple instructions can be followed even by the inexperienced person. The old timers in mailorder can use the wholesale book selling programs to supplement their other projects, in many instances combining book selling with their other mailing activities with very little added expense.

Imprinted sales literature, to solicit dealers and for the dealers use in selling to the consumer, is furnished at reasonable prices; or camera ready copy is usually available so that the printing can be done locally. The literature for dealers is usually priced a little higher than cost to pay for processing the order.

The Prime Source will ship your customer's orders for literature, brochures, etc., under your shipping label. They will also drop-ship the books and publications direct to your dealers, using your name or label.

Your wholesale cost for publications will vary depending on whether you have the Prime Source drop-ship direct to your dealers, or in quantity to your place of business. The amount you charge your dealers will also vary depending on drop-ship services or quantity purchases. You, as the wholesaler, should make every effort to purchase the publications for a minimum of four times below retail price.

In other words, You purchase 100 booklets for $1 ea. = $100
You sell to your dealers at $2 ea. = $200 Your dealer must realize at least double his cost when selling to the consumer, or $4 ea. = $400

You must ascertain that the Prime Source often is the determining factor in the success of your program. If the book retails at a price too low, considering the high postage and mailing costs, no profit can be realized by your dealer, nor by yourself, unless orders are limited to a minimum number of titles for each total purchase. Be certain the program offered by the Prime Source allows sufficient margin to pay for all your costs and expenses as well as your dealers costs and expenses, while generating a fair profit for you both.

to find the right programs for your operation, write to a number of firms that offer book selling wholesale programs. These can be found in any of the hundreds of mailorder adsheets, magazines and publications available today. (Some call it "Junk Mail" but if they only knew the money-making potential of the right program, "Gold Mail" would be more appropriate).

Get their literature then order a minimum starting package of the programs that interest you and fit in with your mailorder business schedule. Make tests to prove the value of each program. Drop those that do not prove out after a reasonable test. When you find one that is "Hitting", multiply it cautiously until you know it is a winner, then go full blast in every direction to make it pay off BIG!

A SHORT COURSE IN MAIL ORDER FRAUD

What you need to know about mail fraud!

When the mails are used to intentionally misrepresent a product or service it constitutes Mail Fraud. The U.S. Postal Inspection Service is charged with investigating violations of the law, usually in response to consumer complaints.

The best way to protect yourself from mail fraud is to recognize that it is a fraud and not become involved. This is not easy to do because of the attractive wording in the deceptive ads. Anything that sounds to good to believe is suspect. Medical formula's and gadgets that make "insane" promises are probably "insane" and you should stay away from them. Especially be cautious regarding some of the thousands of different weight loss products and overnight cures.

Never purchase land through a mailorder ad unless you or your personal representative has seen the land, it is as represented, and the value is there. If the salesperson has shown you the property report you can cancel your purchase agreement within seven days. If no report was shown to you before signing an agreement you have the right to cancel out within two years.

There are a number of insurance frauds floating through the mails. Bequests to sign blank insurance forms, last chance bargain offers, payments in advance and cash payment requirements could indicate con artists at work.

Of course, most everyone has received chain letters sometime in their lifetime and if you are in the mailorder business you should get several every day as a minimum. Chain letters are illegal and do not work anyway. Need we say more? More later!

We've all seen the ads offering job placement and job opportunities. Most of them are legitimate but some are 100% non-existent or complete misrepresentations. Don't spend your money for the required fee until you have checked with your local consumer affairs office or Better Business Bureau.

Then there are those who promise huge profits without risk in commodities, stocks, oil, gold, silver or coins, through the mail or over the telephone.

There are hundreds of very fine investment opportunities offered but you can't risk your hard earned cash, or possibly lose your life savings, to mail order or telephone swindlers. Several of the larger, well recognized firms have gone bankrupt through fraud and management manipulations carrying client's investments right down the drain with them. Always use caution and investigate the company thoroughly before you put up one dime.

Another favorite of the crooks is home improvements. Quite often you never see them after you sign a contract and pay them a deposit to do the work. If they send brochures through the mail and the work they perform is not as represented it could constitute mail fraud. Get estimates from local service companies to determine if the price of the mailorder offering is reasonable and in line. Check the references of the organization.

The laws, regulations and paperwork involved in setting up franchise operations are horrendous. Various large distributorships are equally difficult to establish but generally do not have to conform to near as many controls and regulations. On the other hand, some mail order distributorships and wholesale outlet require very little effort and the home company has little control over their activities. If profits promised are unrealistic or if the product or service is secondary to selling the franchise or distributorship, proceed with caution!

U.S. Postal Service....Subject: Chain Letters: If you ask the Postmaster to check out whether a chain letter is legal or illegal, you will get a letter similar to the following:

TO: xxxxxxx

Dear Postal Customer:

We are in receipt of a chain letter furnished through the xxxxxx Post Office for your consideration.

As information, chain letters that request money, bonds, books, or other items of value, and promise a substantial return to the remitter which is dependent upon the activities of those who follow in the chain, are regarded as non-mailable under the postal lottery and fraud laws, Title 18, U.S. Code, Sections 1302 and 1341.

Chain letters which call for nothing more than recipes, picture post cards, and the like, are ordinarily considered to be mailable inasmuch as the items sent do not constitute a thing of value within the meaning of the applicable law.

Chain letters involving "good luck" chain prayers which contain a threat of bad luck to those breaking the chain, do not violate the lottery and fraud laws, however, postal cards bearing the same message are non-mailable under Title 18, U.S. Code, Section 1718, which prohibits threatening matter on the outside of the mail.

Inasmuch as the particular chain letter you received appears to violate the postal lottery and fraud statutes, we are forwarding same to our Division Headquarters for attention.

The person or persons who are listed on the chain letter will then get a letter advising them the letter is illegal and that they should immediately disassociate themselves from any further activity with the scheme.

There are hundreds of illegal chain letters, and also a few legal ones, going through the U.S. Mail every day. There are thousands of Multi-level marketing programs floating all over the country, many of which are just as illegal as chain letters. It's sometimes difficult to understand why any of these should be classified as illegal because a person usually doesn't spend over a couple of bucks and they seem to get a lot of enjoyment for their investment. Nor does anyone make a dime on them anyway, and that usually includes the person who started the program.

Gift Catalogs, Circulars,etc., offering Drop-Ship Services:

Some writers try to tell you that companies which offer drop-shipping programs are illegal. That the only ones making money are the dealers furnishing the catalogs. If that is the case, just about everyone in the mail order business is illegal! Many prime source printers, dealers, and distributors offer full color catalogs or circulars with your name imprinted and a well planned program for a reasonable price. You can make good money, just like in any other business if you put reasonable time and effort into the project. You can also make extra money with this kind of program by riding it along with your other regular mailings, thus filling your envelopes to maximum for the postal weight limit.

The people who think this is a fraudulent way for the mailorder distributor to operate apparently have little or no knowledge of the mailorder business. The ask "if the deal is so good, why doesn't the drop-shipper mail the catalogs themselves and not have to pay any commission". Well, even a fool should know that to multiply your profits through legal and fair association with others is the way all successful businesses in America operate! This in addition to many other factors such as using independent contractors, rather than setting up employees, payroll tax reports, etc., and of course it's about the only way to get your offers presented to 150 million prospects.

They say you cannot make it on the usual 50% commission. What about the drop-shipper. For example the author and prime distributor of a book. Perhaps he has put in several months of research and hard work writing the book. Then comes the enormous cost of layout, printing, collating, binding, preparation of promotional data, and building a presentable program. He's doing others a great favor by letting them keep one-half of the money taken in from his labors. He may even break-even while hoping to make a well deserved profit . And yet these know-it-all characters try to tell us the prime source has no advertising costs, that their operations are very profitable and that they have no risk.

I can agree with them when they talk about "envelope stuffing", but don't let them confuse a legal catalog and drop-ship program with a worthless, misrepresented envelope stuffing program that has no real substance or money-making value.

Envelope Stuffing Schemes:
Now we're talking about "work at home schemes"; not legitimate work at home opportunities, distributing, or drop-ship programs. In fact most letter stuffing "schemes" are not necessarily illegal unless they take your money through fraud or misrepresentation. They usually send literature on some product or service they offer and quite often will sell you mailing lists to send the literature to. You are charged a few dollars for the packet together with simple instructions. If the product or service is as represented and a reasonable commission is forthcoming for your efforts there is nothing illegal about it. If you are promised things that are not "delivered" or the start-up packet is just a come-on to entice you to get deeper and deeper into a costly program before you can expect the originally promised results then you have probably found the illegal operation.

Often "envelope stuffing" ad offers make it appear that you will receive all the envelopes and stamps, along with the mailing materials and name list without cost, in effect working for them as a mailing service. Then after you have paid the $5 or $10 dollars for their packet, you receive a small pamphlet explaining how to set up a local mailing service for the various retailers, etc., in your community. This sort of activity, of course, is misrepresentation. The promoter actually has nothing of value for you at all. He is just selling a cheap instruction pamphlet that cost only a few cents each when gets them printed in quantity.

There are hundreds of other kinds of envelope stuffing programs. Many of them are fraudulent. Many more are good honest programs. One must look before they leap, or at least test before they jump in over their head.

Low Price Offers:
A ridiculously low price is often the bait used by those who do not intend to furnish the goods ordered through the mail. If you get an offer to purchase an item for $10.00 that usually sales in the local hardware store for $75.00, there's got to be something wrong. Either the merchandise is stolen, inferior or it won't be delivered.

Insurance Fraud:
Drivers who have a bad accident, or their driving record is not so good, may not be able to purchase auto liability insurance from the regular insurance companies. Fraudulent insurance companies compile name lists of likely prospects, make mail solicitations, etc., and will write insurance policies for anyone who will hand over a premium. The reserve funds they are required to set aside for payment of claims are manipulated into the promoters' pockets, while they pay only minor claims and hold up larger claims as long as possible until their insurance company goes into bankruptcy. This leaves many unable to collect legitimate claims. Thousands more finally discover that they have been paying high rate premiums with no protection from liability. Best bet, purchase your insurance locally or check out the mail order company with your state insurance department.

Retirement homes:
What a terrible pity. The little 80 year old lady who had just lost her husband a year ago, and 160 other retired residents of "Sunrise Manor", just lost their investment and perhaps their final home. Sunrise Manor was a beautiful set up; separate little apartments condominium style with wide carpeted hallways leading to the dining room, game rooms, health care center, etc. The grounds were immaculate, with green grass, trees and beautiful flowers.

They had been solicited through the mail with glowing information about the Manor. It was all true. A really good deal for the retired person. The initial fee for those who first signed up for a small room was $18,000 cash. Larger quarters ranged from $30,000 to $60,000. This initial fee was to be placed in a trust account, the interest to be used for capital outlay requirements and most of the principal was to go to the heirs upon the death of the tenants. Monthly rent was nominal and included meals and limited medical care in the health care center, which was built in part of the Manor. It was so attractive from a personal and financial aspect that there was always a waiting list of qualified persons who wanted to make their home in the Manor.

What happened? Apparently only the management knows as of this writing, but an enormous amount of funds are missing and overnight the manor was placed into bankruptcy. The court appointed trustee is trying to put the pieces together while the prosecuting attorney is investigating the activities of the owner-management team. It appears the tenants' $18,000 to $60,000 investment is long gone. Apparently it was not retained in a proper trust account, a great deal of it was used for other than company business, and being set up within the capital structure of the organization whatever may remain, or be recovered, is subject to an enormous amount of creditors claims.

When you receive unordered merchandise through the mail: Most people feel obligated to pay for small inexpensive items received through the mail, even though they did not order it. If this happens to you, and you have not yet opened the package merely write "Return to Sender" and let the post office take it from there. If you have taken it out of the package and it is something you have no use for it is a good idea to keep it for a reasonable period of time and see if the party sending it makes claim to it or bills you for it. If they claim it, you may wish to be courteous and send it back C.O.D. If they bill you, you really have no obligation to pay for it. You may want to consider it as an unconditional gift.

Pressure your neighbor:
You will get yours free from the commissions you make from selling the product to your neighbors. So you give the canned sales pitch to your friend and rather than have you think he's a cornball, he purchases the product. He again repeats the process with his relatives, etc., and you get a cut from what they sell. And so it goes, down the line for 3 to 5 multi-level commission earing stages. When the product is delivered, it's not what it was represented to be and you find that you could have bought it from the super-drug store at half the price. You are mad, your neighbors want to kill you and the money-making multi-level dream comes to a screeching halt. All because of the "wonderful new product" advertised in the morning mail.

Consolidate your debts:
You've gotten yourself in over your head and now there is no way you can meet all your monthly payments for your home, auto, appliances, credit card charges, etc. The as states; "Make it easy on yourself. Just pay us one payment each month, small enough so that you can handle it, and we will arrange with your creditors to pay them off." That sounds good. Get the creditors off your back. But later you realize the monthly payments you are making to the consolidator go on practically forever. After adding commissions, fees and interest you don't gain on the principal amount you are trying to liquidate. Read the large and small print.

Home improvement contract:
Look over that contract with a magnifying glass. Check with local contractors and get bids from them to see if the mailorder offer is in line. dishonest promoters of this scam look for people who are hard pressed for money but who have a small equity in their home. For exorbitant monthly payments they offer to make improvements or additions to the home and loan the owner a few hundred dollars for their "increased" equity. The value of the improvements are generally only a small percent of the total amount charged.

Charity and contributions:
They just keep coming. The "Junk Mail" asking you to donate to worthy causes. To feed small children who are starving in Africa. To help the senator or congressman to fight for a cause. To stop the experimental use of animals. To help find a cure for human ills. To give money to the communists so they can "fight against freedom", and to the freedom fighters so they can fight communism.

Which ones are legitimate and merit your full support. Which ones are operated by swindlers? Who knows? The government gets into the act by cutting down the amount of legitimate contributions you can deduct from your income tax, and some TV ministries are going to hell unless they get $10,000,000 by the end of the month, or unless their top officers can draw over a million dollars a year and live in 2 million dollar mansions. They only way you can know where your money is really going is to stick with the organizations you are 100% familiar with. Check with the Chamber of Commerce and The Better Business Bureau, or if you are planning on donating substantial amounts analyze the organization's financial statements. Also review how it will affect your tax status.

Work at home propositions:
There are a number of good work at home programs, but there seems to be more of them that are losers. Everything from selling books through the mail or setting up a local secretarial service to sewing baby clothes. There is always an advance fee of some kind required for work at home projects. Some of them are good producers if a person stays with it long enough. Others work at it for months, hoping to break the 75› per hour barrier. You better think twice before paying for the chance to work at home.

Medical Fraud:
Medical quacks preying on the ill, offering cures or medications through the mail are gambling with their freedom. Medical fraud is one of the major priorities on the list of the Postal service investigator and the fraudulent quacks are generally put out of business before they can do any real damage. However, there are many programs; such as reducing diets, certain vitamin pills, hair restorers, and hundreds of "cure all" drugs making the rounds in the mail across the country every day. Most of the products offered are a bad substitute for the real thing you could get through your doctor or from the local drug store.

Even if the promoter is not convicted or fined, the Postal Service can deny him the right to receive remittances through the mail of it is determined that false representations have been made.

Also, unless you watch your medical and hospital bills with a microscope you can expect to get invoiced for hundreds to thousands of dollars from various labs around the country where they say your blood was sent for tests; tests you didn't authorize or didn't even know existed. In fact, it usually doesn't do any good to use your "microscope". Unless the hospital gets $4,000 out of you for a four day stay, they apparently will go bankrupt.

Are you Heir to a Fortune?
If you receive fancy looking legal documents offering to provide information which could help establish a claim to an estate left by long lost, or deceased relative, worth several million dollars, forget it. Save your $10.00. You will receive the information but it is just worthless paper telling you how to go about locating missing relatives or heirs.

Fake contests:
Wow again! You get them in the mail every day. "You have won". "No purchase required". All you have to do is fill out the contest form, order the gadget if you wish, and send the order form along with your money! Etc., Etc. As long as you enjoy junk mail, want to waste a few stamps and get a thrill out of wanting to see if you have won anything, there is generally no real damage done even though most of the "come-on gimmicks" are deceptive and often 100% misrepresentations.

Correspondence courses:
The promise of a good job or a money making business of your own is usually the lure of fake correspondence schools. They "guarantee" that a job will be available when you complete the course. They will accept anyone who will sign a contract making them liable for several hundred dollars, usually paying on a monthly basis as they proceed through the course. There are always a few correspondence schools, promoted and handled through the mail, that have completely worthless programs. You could probably learn better, and much more economically by checking in at your local library and searching out the hundreds of How-to-do it books on just about every subject.

Other Areas Subject to Mail Order Fraud: Advance Fees:
Inducing persons to pay fees in advance for products or services to be delivered at a future date then never making delivery or refunding the fees.

Check Kiting:
Most people are not aware that it is illegal to use several bank accounts in different banks across the country to build up large apparent balances in one or more of the accounts through "outstanding checks", transfers, etc., for the purpose of using money without interest or siphoning funds from the inflated bank accounts. In this age of computers, check kiting is rapidly going down the tube.

Sending unordered parcels C.O.D.:
It is fraud to send parcels C.O.D., containing items not ordered by the recipient if the value is considerably below the C.O.D. price.

Credit cards:
Use of any credit card without intent to pay is fraud, whether they are obtained by fraudulent application, stolen from the owners, or used by the owner.

False solicitations:
Soliciting anyone to enter into a contract for anything, when misrepresentation is involved, the quality of the work performed as compared to that offered is inferior, or failure to perform, can constitute fraud. Good Luck:
Promising good fortune and blessings through donations to "religious" promoters is a scam that is usually perpetrated through the mails on superstitious or uneducated people.

Other Rip-offs to watch for:
Schemes to collect non-existent delinquent debts. Victims receive notice of alleged past due accounts or inquiries through official looking documents requesting pertinent information. The information is then used against the victim in different ways in order to "get his money".

Endless referral plans whereby it is represented that the item will cost a person nothing because by referring other people to the seller they can earn enough commissions to pay the full cost of the purchase.

Accepting another's capital for investment in a business opportunity then converting the capital to their own use.

Submitting false or fictitious claims to insurance companies, such as staging fake auto accidents, or fraudulent claims for sickness, accident or hospitalization, which results in getting benefits far in excess of actual cost.

Offering job information for a fee whereby there is misrepresentations about the jobs available, the amount of salary paid, experience required, etc.

Loans offered under any number of false and fraudulent representations.

Swindles involving clubs that carry on romantic correspondence with members of the opposite sex and through misrepresentations and promises to obtain money or property.

When you are dealing in products that are aimed at the elderly market, regardless of how good they are; whether a book on retirement, medical products, or just about anything else, you are suspect by the Postal Service.

Sale of memberships in a buyers discount club whereby it is represented that members will save large sums of money by being a member and whereby savings are non-existent or remote.

How to create work records, diplomas, degrees!

Although this idea has been in circulation for many years, it is fraudulent in most instances. The publisher strongly advises you to check with your attorney before trying this plan.

The basic idea consists of visiting a college library and checking the yearbooks for someone with a surname the same as yours. Then you write to the university and request a copy of "YOUR" degree which you state has been lost, stolen, or whatever, being sure to give the graduation date. With this you can make a resume' fit for a king.

For work records, you simply create or use names of your former employers...Those firms which have since gone out of business. For the last or current employer, you again create a company which could be the number and address of a friend who will back up your employment checks with "glowing" testimonials on your fine abilities.

If a person does pursue this type of activity, I'm reasonably certain if the judge doesn't catch up with them within a short time the computers will.

How to vanish and start over again under a new identity!

Many people change their identity each year for a variety of reasons, some times legal, sometimes for illegal reasons. The publisher believes that in most cases the method described here is illegal and does not in any way advise the reader to pursue this practice. However, this is the way it is done:

The idea is to obtain a "birth certificate" of a deceased individual who would have been your approximate age, hair color, eye color, etc., had they lived. Preferably, this should be the name of a child, not an infant, at least one year of age at the time of death and no later than 5 years old if possible.

Search through the death records at you County or State Offices. These records will tell you the name of the parents and other information which is needed to apply for (your lost) birth certificate. Once you obtain the birth certificate, you can obtain any other "official" documents almost at will.

When you have filed an application for a social security number and established a few credit cards and a drivers license, you are a "new" person.

Remember though, there is no easy way to change your fingerprints nor your basic personality traits. From the time you change identity you will have to watch every move you make or your identity will be discovered by someone, some place down the line.

It is usually better to face your problems, whatever they may be, and solve them by being "yourself".

Now a few words of advice:
Regardless of all the "Rip-off Artists" and the fraudulent activity sometimes associated with the mailorder method of doing business, please remember that there are "rotten apples" in just about every barrel. Mail order is no exception. However with proper knowledge, testing, and good judgment, most phases of the mailorder business can be very productive & profitable!

WHAT YOU NEED TO KNOW WHEN BUYING A PERSONAL COMPUTER

BUYING A PERSONAL COMPUTER - General Information: Familiarize yourself with some of the computer language and terminology then shop at several different computer stores and test some of the hundreds of different models being offered. Most of the computers and programs are simple to operate and you can perform many valuable tasks as well as play games.

Keep in mind that the cost of the system you purchase will usually include only the basic "software" needed and you will probably have to purchase more later in order to do everything you want your computer to do for you. Most software is not cheap...

The basic system consists of the Central Processing Unit, a Keyboard, Screen (Monitor) and Printer. A "mouse" is used on some brands and a cassette recorder can also be used, mostly for games and short programs. A flexible disk (floppy disk) similar to a small phonograph record; or a hard disk, together with an instructional manual, contain the programs that tell the person... and the computer, what to do.

A component that changes electric signals into audio tones, called a "Modem" is used to link your unit with others over the telephone.

Across the country are located large computer systems which store a great amount of information on various subjects. You can hook the computer into one or more of these systems with a "Data-Base Management" program, and by paying a monthly user fee.

The smallest unit of information for the computer is the "Bit". 8 Bits make a "Byte". "Memory" takes two forms...RAM which means Random Access Memory, is a temporary memory picked up when you enter information into the keyboard or from a disk...ROM means Read Only Memory is measured in "K's" with 1,024 Bytes-1K.

The software program will display a "Menu" on the screen. You choose what you want the computer to do and press the proper keys specified in the menu in order to perform the task.

One of the greatest uses of the computer is "word processing", which is merely "glorified" typing, using the keyboard with the copy appearing on the screen as you type. You can correct or change your copy in just about any way imaginable and perform many other time saving functions before the copy is "sent to the printer" or to a disk to be stored for future processing or printing.

Before you make a decision on the purchase be sure you have a good idea of what computer applications you want. Are you going to use it extensively for word processing? For Accounting? Budgeting, Education, Entertainment, or perhaps a mailorder newsletter which requires fancy pictures and a good deal of art work, etc.

Pick up the brochures and booklets explaining the various computers and the software programs so you can review and study the various functions and make comparisons of ease of operation, price refund policy, etc.

When you shop for a computer system ask to operate the various computers yourself so that you will get the feel of each different brand.

Find out about the warranty and service, the availability of added hardware and software.

Does the dealer offer instructions with the purchase? Get the total cost for the unit and the software which will be required to perform the applications you want.

Purchase only the minimum software you need to get started and learn each program as you proceed. You will have a much better knowledge of just what additional software you will need after you have had the computer for a short time and have become more familiar with what it will do for you. However, since you will have substantial funds invested it will pay to purchase all the software necessary for your various needs so that you will get full value from your investment, but be certain you are not getting substitute programs or partial duplications of ones you already have.

What do you need a computer for?
You can now purchase a computer that will run thousands of different programs. You can do just about anything; from games and entertainment to instruction, mathematics, engineering, managing any kind of data, to desk top publishing, business inventories and accounting. Those old timers in the accounting profession and in business management now look back over the many years of working without a computer and wonder how it was possible to accomplish what they did without a computer. Printers can now purchase a desktop publishing system for $10,0000 sufficient for many typesetting jobs that previously cost $60,000 just a couple of years ago. The computer-laser system is much faster thus saving on labor costs and by using plain paper at less than 1› a sheet instead of photo paper at 30› to 60›, they can cut operating costs extensively.

What kind of computer do you need?
First look at the ease of use. Is it "user friendly"? Is the instruction manual easy to follow? Is there adequate software available for it? Does it give you a large enough screen to fit any work you will require? Can you "import" other compatible programs, images, etc., and merge with existing work? Does it give detailed realistic and high resolution results? How about color? Will you need color now or in the future? Is it easily expandable so that more memory or circuit boards, etc., can be added as your need grows? What type of printers will the computer handle?

Can you get questions answered and help when you need it. What about repairs, guarantees and service contracts? How much memory comes with the basic computer and is it going to be sufficient to handle all your projects? Considering the type of software being produced today you should purchase a system with no less than 256K and preferably much more. Also get a computer with at least two disk drives that will handle 2 sided, double density disks. The keyboard can be an integral part of the computer or detached. Detached is generally preferable because it gives you more flexibility. Pick a computer that uses a keyboard you feel comfortable with. Most computers now are built with standard keys. Be sure it is easy to control the "cursor", graphic keys, escape, repeat, break, reset and return keys.

As to the display window (monitor) you will need, if you are going to be doing a great deal of word processing (typing) a monochrome with green color is much easier on the eyes than black and white. If you are going to be doing color work or graphics you will need color monitor.

Printer:
A printer is like a typewriter without keys. It prints out the information that is in the memory of the computer. The main kinds of printers are the "Dot Matrix", "The Letter Quality", and the various ink jet and laser printers. The dot matrix forms letters with tiny wires that punch a pattern of dots on the ribbon for each letter. Some are low print quality, but others look nearly letter quality. Letter quality printers produce typewriter quality print and are referred to as impact printers.

Certain brands of electronic typewriters can be interfaced (connected) with the computer and used as a printer. If you plan on going this route be sure to give it a good test before you buy. Many interfaced typewriters print slowly and also there is the possibility that the warranty on the typewriter may be voided. There are several different ways the paper is fed through the printer. Check to be certain the method used is adequate for your purpose. Also make sure the printer will accept the width and length of paper you require. It will take at least 80 characters for 8 1/2" paper and you will need 132 column printer for accounting or spreadsheets. Check the speed to determine how fast the printer works as there is a large variation between various types and brands of printers.
The Laser printer is a great addition to the family of printers. Most good quality laser printers cost much more than Dot Matrix or Letter-Quality printers, but for many purposes they are well worth the difference. They have a great advantage when working with graphics, design, typesetting or desktop publishing. Perhaps a mailorder newsletter which requires fancy pictures and a good deal of art work etc.

Modem:
You can use your computer to connect to hundreds of different sources of information through the use of a modem. This is an accessory that connects the computer to the telephone line. How fast you are able to send information over the phone is determined by the Baud rate. You should probably have a modem with 1200 baud that will work with the majority of others. Check with your dealer to be sure it is adequate for your system. You will need communication software programs in order to send and receive stored information.

Along with the line of communications, you can get a speech synthesizer or voice recognition add-on that converts your spoken words into writing or visa versa. To create computer game controllers, graphics and pictures you can get such things as light pens, plotters, mouses, etc. Other more expensive devices allow you to import photos, text, etc., directly into the computer for hard-copy printout. You can add circuit boards to your computer which will activate electrical devices; turn them on or off, dial your phone, or make mechanical monsters do what you command.

Software needed:
Software is simply instructions that tell the compute what to do. It comes in the form of cassette tapes, diskettes or hard disks. Applications software will do exactly what you want to do; such as play a game, maintain a mailing list or teach mathematics, etc. Operating systems are programs that manage all the things that are going on inside your computer. Each different brand of computer has its own unique operating system so the software for some will not work on others. (Incompatibility) Different versions of the same software programs are made for each different type of system. However there are several operating systems that are "standard" compatibles and work on many different brands thus making thousands of programs available for most computers. Be sure you buy a computer with an operating system that can handle a great number of the programs available. Determine what you want the computer to do for you; games, accounting, name lists, desktop publishing, etc., then find out what software programs are available for that particular brand.

You can get software for about any kind of game, for Music composition, picture creation and transfers; for all kinds of educational programs, Budgeting, home management, mathematical analysis and engineering. business software includes word processing (which merely means an easy and much better way to type than with a typewriter), spreadsheets for financial analysis and planning, accounting, mailing lists, and just about anything else. For example, using the computer for all accounting activities for a firm is a terrific time and money saver. You can write the checks, enter receipts, accounts payable, accounts receivable, control inventories, prepare payrolls, and make the journal entries. All of these entries are automatically posted to the general ledger, eliminating hand posting altogether, and the trial balance, balance sheet, income statement, quarterly payroll reports, W-2 forms, income tax returns and other financial records are all ready to print out.

Before you settle on what software to purchase you should check out how easy it is to use. Are the instructions and screen help menus easy to understand? How fast does the program run and does it do everything you need? Does the software publisher furnish support and updates, with a number to call in the event of problems? Is the warranty adequate? Can you return the software if it doesn't perform as represented? Is it protected so that it is difficult or impossible to make a backup copy?

You can get software in the form of cassette tapes, cartridges, diskettes or hard disks. However cassette tapes and cartridges have several disadvantages including the fact that much of the best software is not available on cassettes. Preferably, settle for no less than programs on two sided-double density floppy diskettes. They are easy to use, store a great deal of information, reasonably priced and you can find anything on the disk almost instantly.

Programming:
Would you like to write your own software program? Well, they try to tell you that it is easy. Don't you believe it. It takes a great deal of study and hundreds of hours at the computer to learn to the extent you can create any worthwhile programs. Even though it is a challenge and may be an enjoyable pastime there are so many programs available today that unless you are an expert programmer there is little chance you can come up with one that is marketable.

Basic is the most used computer language and is probably the one most valuable for you to learn, but since there are several versions a program that runs on one computer may not run on another brand. Pascal and Assembler are languages which are used mostly by expert programmers. Scientists and engineers can use a language called Fortran for best results. Several other languages are used for computer and video games.

Taking care of your computer system:
It is good policy to keep your computer and printing equipment covered with anti-static dust free covers when not in use. Keep your screen and other equipment clean and free of dust. Use a head cleaning kit to clean your disk drive in accordance with manufacturers recommendations. Place your computer so that air circulates freely around it. Use three wire plug ins with a ground and get a surge protector to protect your computer from sudden voltage changes. Use a felt tip pen for diskette labels and don't touch the magnetic surface. Keep your diskettes stored away from sunlight or heat and if you spill coffee or drink on a disk, forget it!

Read the small print of your warranty so you will know exactly what to expect in the event of problems. Keep the original boxes and packing materials so that you can safely ship your equipment back for repairs or adjustment.

WHAT YOU SHOULD KNOW ABOUT MULTI-LEVEL MARKETING

Multi-Level Marketing

Just what are all those thousands of programs and solicitations spreading a swath across the country...called "Multi-Level Marketing"? Well a good portion of them are nothing but chain or pyramid schemes, some completely illegal.

A true Multi-Level plan is one in which there is an agreement between yourself and a manufacturer or distributor to purchase products at wholesale and sell them at retail, also with the right to sponsor others (your down line) thus multiplying your sales base and profits by receiving a percent of the sales made through your downline. Persons you sponsor show others the program and sign them up as members under themselves. In effect you are multiplying your efforts by selling the product through a network of distributors. The downline is usually set us at three to five levels deep although it seldom gets that far, especially if it is a multi-level program being circulated through the mail.

A small initial investment is all that is usually required to become a distributor. You should have a flexible schedule but little experience is necessary. For you and your distributors to have any kind of success, you must handle high quality items which can be sold at substantially below retail store prices.

Distributors are charged for the program packet which includes instructions, literature, samples, etc. To be legal, the investment must be only a nominal amount. Sale or consumption of the product must be the prime objective and no fees should be collected for recruiting endeavors.

A common problem in recruiting people is getting them to "Look at the Plan". If they have seen multi-level plans before they won't give anyone a chance to explain the programs they think they already know all about it. Some get around this by inserting an ad in the local paper, asking interested parties to call about "a good money-making plan". They use a telephone answering machine which advises the caller where and when to attend an "Income Meeting". The machine doesn't give them a chance to ask questions. If they are interested and not just curiosity seekers they may show up for the seminar.

Multi-level selling by large party plan firms are often successful because they keep their members productive through a series of coaxing, weekly meetings, phone calls and home visits. This stimulates activity and better results are obtained. These elements are missing in Multi-level mailorder programs. There is no motivation, inspiration or force applied to down liners. The meetings and personal contacts that represent strength are missing when the business is conducted by mail. Therefore a good many of the multi-level mailorder programs can't work and are basically worthless, especially on a 4 or 5 level down line position.

A typical multi-level get rich scheme is where you are offered a book selling plan for $5.00. You are assigned a code number and mail out 500 brochures. When your name reaches the fifth level you are supposed to have collected something like $50,000 in commission for 100,000 books which sold for a total of $500,000. This is based on only 10 orders received by you and 10 orders received by each of your down liner's who also mailed 500 brochures.

If only 10 people in the entire United States initially worked this one plan with the same success you are supposed to have, there would be 5,000 brochures out the first level; 50,000 the second level; 500,000 the third level; 5,000,000 the 4th level and 50 million in the 5th level. That would amount to some $11,000,000 in postage with brochures delivered to over one-half of the 90,000,000 mailorder buyers in the U.S.

This type of program will collapse under its own weight. After one level there is usually a complete drop-out.

Most such plans get started because of exorbitant, dishonest claims. Tell the truth in an ad on Multi-level marketing and there are very few takers. Change the ad to greatly exaggerated claims, such as "Earn $100,000 a year working from the home part time" and the inquiries pour in. The response on this kind of ad doesn't mean that anyone will make any money!

There are too many ways to make an honest living without telling lies so keep your Multi-level plans level!

As mentioned previously unless the organization you are dealing with offers top quality products at discount prices it is very difficult to make a living with the multi-level marketing concept. A person has to knock on a great number of doors, or send out a massive amount of literature through the mail in order to find qualified people who are interested in pursuing this kind of activity.

If multi-level programs worked as good as many of them advertise the nation would be flooded with solicitations thousands of times over for every plan on the books.

Being able to work a multi-level plan on a part time basis at your leisure, with no pressure from the company as to how much of the product you purchase or the amount of business you must bring in each month, is one of the attractions of this kind of activity but results are usually negative. It's to easy to forget about the business, sit back in your easy chair, and watch TV.

After a hard days work at another job it doesn't take long to forget that you have a part-time multi-level program going. That phone call or that meeting to show the plan is too easy to put off until "tomorrow". Yes; it takes a certain kind of individual to follow through and they are few and far between. You may make 200 calls and show the program 100 times before you get even one member who will take an active part in the program.

Most multi-level plans state that you can make thousands of dollars by duplicating yourself a few times and your down line doing the same. It never works that way. You are fortunate if a small percent of your down line produces much of anything unless you are able to spend a great deal of time teaching and promoting their business as well as your own.

How are you supposed to get prospects and member? Most of the promotional materials suggest you solicit your friends, neighbors and relatives, at least as a starter. Many people are reluctant to "take advantage" of their friends. Of course, if you have the best bargains available "anywhere" you may be doing them a great favor.

Phone calls, word of mouth, direct mail pieces and follow-up, and local classified ads are other methods used to get members and sell the products.

Multi-level companies usually offer news letters, catalogs, direct mail pieces, and Camera/Ready material which members can have copied or printed locally. They often have name lists available or advise members how to compile their own lists.

Mail Order multi-level organizations will usually drop-ship direct to your customers if you wish. They also are set up to do most of the paper work and accounting, leaving members with little detail work.

If you decide to try a multi-level program you are usually required to pay a fee for which you will obtain all the materials and information pertaining to the organization, the products and how the program works. You may also be asked to purchase some of the items you will be selling. You will contact friends and neighbors, explaining how the program works, try to sell them merchandise from the catalogs and sign them up as members if possible. You will compile lists of prospects and make direct mailings. As your business develops you will need to contact those in your downline periodically and offer sympathy, help and assistance in order to make the business grow.

Many other incentives, prizes and extra commissions are offered by some firms.

Make sure the organization you choose and the programs they offer are legal. If it is just a pyramid scheme whereby members are merely signing up others for a fee and little if any merchandise is being sold it could be illegal. In any event, this type of operation will produce little if any money-making opportunity. If in doubt it is advisable to check out the firm with the Better Business Bureau or with the Postal Authorities when it involves direct mail methods.

Remember also, there are some very fine multi-level firms offering good opportunities for success oriented people. Those who thoroughly enjoy meeting and working with others, who are not afraid of hard work, not easily discouraged and who can persevere in the face of many disappointments, have make their fortunes in Multi-level marketing. With such attributes and the right program together with proper training you can be a success in this kind of business.

ILLEGAL MULTI-LEVEL PLANS!
In certain states most Multi-Level Sales plans can be classified as illegal since it is unlawful to organize a "pyramid club" or to induce or attempt to induce membership in a "pyramid club".

In such states a "Pyramid Club" means a sales device whereby a person, upon condition that the person make an investment, is grated a license or right to solicit or recruit for economic gain one or more additional persons who are also granted such license or right upon condition of making an investment, and who further perpetuate the chain of persons who are granted such license or right upon such condition. Pyramid clubs also include any such sales device which does not involve the sale or distribution of any real estate, goods or services, including but not limited to a chain letter scheme.

A limitation as to the number of persons who may participate, or the presence of additional conditions affecting eligibility for such license or right to recruit or solicit or the receipt of economic gain therefrom, does not change the conditions for a consideration other than personal services, of property-tangible or intangible and includes without limitation, franchises, business opportunities and services. It does not include sales demonstration equipment furnished at cost for use in making sales and not for resale. The items in the sales kit may not be sold to the participants for the purpose of resale. "Investment" covers any amount or value paid for a reason other than the purchase of a sales kit.

Pyramids are illegal because they are inherently fraudulent. In order to achieve the profits that are promised, a never ending chain of participants must be recruited. A saturation point will be reached and no more recruits will be available. When this occurs the most recent recruits can't receive what has been held out to them to cause them to join, and they lose all or part of what they paid to join the scheme. After just a few levels there would have to be millions or billions of participants to keep the chain going.

Chain letters are not the only illegal pyramids. As noted above Multi-level sales schemes can be illegal also. Many of them are nothing but chain letter schemes with the nominal addition of some goods or services to be distributed. Legal multi-level marketing systems are designed to distribute goods or services and are not disguised as endless chains. A pyramid club is present if participants make investments in return for the right to recruit, for economic gain, others who in turn recruit additional participants.

Both the "investment" and "recruiting" elements must be present to constitute an illegal pyramid scheme. "Recruiting for Economic Gain" means if anything is received directly or indirectly as a result of recruiting new participants. Even earnings based on sales make by new participants recruited, also constitutes economic gain.

Evaluating multi-level sales schemes is a difficult process and many considerations must be answered in order to determine the legality or illegality of each multi-level plan or program. Is there more stress toward recruitment than for the sale of the product. Are the claims, as to what the earnings are, base on actual experience of typical participants? (They better watch out for the entries made in the IRS computers pertaining to their fabulous income claims).

Are there misleading representations? You would have to get your attorney to review specific circumstances of each plan or program in order to determine which ones are legal or illegal! Even then you can't be sure. I am certain however, that if you send any of them that are questionable to the Postal inspectors office you will generally get a negative report back, regardless of whether the plan may be legal or not.

The fact that the Federal Government, through the private, non-governmental agency known as the Federal Reserve, can print and issue green paper out of thin air and cause usurious interest rates across the country, or that the States can hold lotteries that are considered illegal for private agencies or persons, has nothing to do with the way people are not allowed to play the multi-level or chain letter game!