BECOME THE PUBLISHER OF THE MAIL ORDER BUSINESS REPORT SERIES!

Sell Individual Reports Or The Entire Series And Make A Profit Of

Over 700% On Each Sale!

State Sales Tax Guide
If you are starting out in Mail Order you need this incise report

on State Sales Tax and how to deal with it Covers all States

Mail Order- Most Common Mistakes
Avoid classic mistakes so often made by beginners. Every week we receive dozens of direct mail pieces that are so bad they make us

shudder. There are rules to this game-and here are the fatal mistakes you must avoid

How To Create Circulars, Small Brochures and Sales Letters! Every day millions of pieces of Direct Mail get tossed. Yours doesn't have to be one of them. Here are some very basic rules that will get you orders NOW!

Mail Order Advertising Directory
Lists the best publications in which to advertise your offers. Emphasis on publications which accept classified advertising. Includes rate information

Mail Order Bookkeeping Basics!
Here is a quick and easy to understand introduction to mail order

bookkeeping. Easy to understand for anyone-- even if you have never done any bookkeeping. Includes all necessary forms and ledgers ready for you to duplicate. You will be ready to get going the day you receive this New Special Report

Mail Order Laws and regulations
A detailed overview of current laws and regulations. Important for those starting out. Knowing these facts will keep you out of trouble.

How To Set Up An In-House Advertising Agency So you can start cutting 15% off your Advertising Dollars immediately! If you are spending $200, $300, or more per month in

advertising you need to set up your own agency. It's extremely easy. This detailed report tells you how. Includes sample insertion order form ready for your agency imprint.

The Postal Savings Guide
Important information on how to manage this major mail order expense to keep expenses at a minimum..and other important tips on how to deal effectively with your Post Office.

How To Acquire, Create and Market Self-Publishing Articles You can generate simply huge profit margins by marketing self-publishing material and selling reprint rights! This detailed Special Report will show you "How To Acquire, Create And

Market Self-Publishing Articles." The field of self-publishing is

wide open and the most lucrative in the mail order information business

The Beginner's Mail Order Business Guide 113 pointers for the beginner. Covers everything from company name to product, pricing, advertising, mailing and everything else that is essential to know.

How To Write Classified Ads That Get Results NOW! Here are the Insider Secrets on how to write` them to get maximum

response and how to convert them into Cash Orders!

Controlling Mail Order Key Expenses
Besides the cost of the product you are selling the three major expenses categories in your mail order business are: Advertising,

Postage and Printing.. Here are some powerful tips in how you can

control and even decrease them.

Getting Started In Mail Order-How Much Does it Really Cost? An expert said you could get started for less than $100.00. Don't

believe it! Here is a realistic breakdown of expenses you could expect for a minium, moderate and aggressive start-up

Mailing Lists Can Be Profitable
Renting and effectively using mailing lists can be effective and profitable..or renting wrong lists can be throwing money out the window.. This report will make it possible for you to generate maximum profits from your mailing lists.

STATE SALES TAX GUIDE
An overview

Published 1991 By Mascor Publishing Co. Copyright 1991 By Mascor Publishing Co. P.O. Box 8308
Silver Spring, MD 20907

All rights reserved

INTRODUCTION

THe intent of this publication is to give the newcomer to the mail order field an overview of state sales and use tax laws as they affect a small mail order business. As of 1988, 45 states and the District of Columbia levy sales and use taxes. In researching this project, I was unable to find any publication that provided comprehensive information o sales and use taxes in all states. The information we present is based on limited research of laws in the State of Maryland, and several other northeastern states. Yet fundamental rules as pertaining to sales and use taxes appear to be fairly similar throughout the country. No information is this overview is to be constructed as presentation of legal or tax advice or advice on any laws in any state or municipality in the U.S. Such advice and information should always be obtained from qualified attorneys. CPAs or the appropriate state or city sales tax office.

Without question, the two tasks that I dislike most are reading and writing about insurance or taxes. I had, therefore, put this project off for quite some time. What eventually prompted me to write it anyhow was I saw a definite need, often based on a lack of understanding about sales and use tax matters by newcomers to the mail order field. I promise you this will be as short and painless as the subject allows.

FACTS ABOUT STATE SALES AND USE TAX LAWS

1. I List this fact first since it seems to represent the biggest

misunderstanding: Sales tax is levied on intra-state sales only..

Sales taxes are no levied in interstate sales, except as shown below.. This simply means that the ABC Mail Order company located

in Los Angeles, CA when selling an item to John Doe who lives in Denver, CO, does not charge him sales tax. The ABC Mail Order Co only needs to levy sales tax to a resident of the State of California. This rule is based on a Supreme Court decision of 1967 in which the Court decided that state sales cannot be levied

on sales made to residents of another state. Congress did, however, amend this law earlier this year, and it now requires those mail order companies which have annual volumes in excess of

$2.5 million dollars to collect sales tax on interstate sales. It

is expected that the 2.5 million dollar figure will be lowered in

the next several years, but it is unlikely that small or medium mail order companies will be required to charge sales tax on interstate sales in the foreseeable future.

2. State sales taxes are levied on retail sales only. It is the person who uses the product who must pay the taxes, not the various layers of companies which are between the manufacturer and the user.

3. You, the company, charge the tax and hold it in trust for your

state until your next sales tax filing.

4. Iam often asked:"since I am just starting out and just a small

company can I just forget about charging the tax?" I definitely do not recommend such a course. If you do you are violating an important laws of your state and are subject to the consequences which can be severe. remember one of the most important premises of tax collection policy in this country is for the Federated State and local governments to require strict adherence. If they let one company, no matter how small, get away with non-compliance, the "Tax Collecting Structure" is adversely affected.

5. Along with the above question here is another equally popular one: "Since I am quite small, can I just pay it for my customer and not show it on the order form? The information I have been able to come up with is that all states feel very strongly about this point.. IT IS DEFINITELY, MOST EMPHATICALLY A NO-NO. I was told that any company who follows this practice is subject to (A)

paying all taxes again though they may have been paid before, and

(B) the company will be subject to all appropriate fines, interest penalties and punishment under the law. As the operator of a small mail order business, you sometimes are subject to using the promotional material that your suppliers provide you with; many of the circulars do not have sales tax information and

you have a small problem. But it is very small because (A) It is

easy enough to fix a circular; a little typewriter whitener, your

local (or out-of-town) printer, typesetter, desktop publisher it is always a good practice to include your own order form which contains the sales tax information for your state. You will get more orders that way since some of your customers want to keep the promotional material you send them intact until they receive the goods. So an order form which costs less then 3 cents a piece

is a good marketing tool and it will keep you out of trouble with

your state authorities.

6. It is very easy to obtain the proper information and then to comply with it. I know when starting a business these small matters can often appear to be overwhelming, but almost always they just appear that way.. So, just take one step at a time. No matter where you live in this country, if your state gas a sales

tax, there will be an office nearby that will be glad to give you

information. Just ask the telephone operator for the listing of the local state sales tax office. You will receive information in

a few days. Generally there will be no fees to pay and forms are easy to fill out... In a few days or a couple of weeks, you will be issued a sales tax license. Your state does not care if you operate your business out of your home, garage, and office or warehouse location. All the state wants is to collect taxes.

7. Most, but not all states have quarterly filings. The sales tax

office will set you up on a schedule. If you live in one of the less populous states and are just starting out, your quarterly amount due will be very small and could be as little as $1.. You still have to file and pay. If you operate in one of the large states such as California, New York, Texas, etc..you may do quite

a bit of business in your own state.

8. Certain products and most services are exempt from state sales taxes. Since different states have different rules, it is best to obtain the regulations for the state where your business is located.

9. Penalties for non-compliance with state sales tax laws vary, but in general are quite strict. It is best not to take chances and to strictly comply with the laws of your state.

10. Many cities throughout the country levy sales taxes. Such taxes are beyond the scope of this article. The principle and basic rules of city sales taxes, however, are similar to those of

state sales taxes.

11. SALES TAX RESALE CERTIFICATES. Laws may vary by state but the

principle is based on the premise that the sales tax is only paid

by the consumer or "end-user." Yet your supplier is required by law to charge you the tax unless you can furnish him with a Sales

Tax Resale Certificate. Example: You sell a series of reports both to customers inn your state and customers in other states, and you have them reproduced at a local quick print shop who charges you the appropriate sales tax.. Call your local sales tax

office to obtain an application for a Tax Resale Certificate. As soon as you present it, your supplier can cease levying the tax on you. As previously stated, the reports you send to your out-of-state customer are not subject to state sales tax, but the

reports you sell to your in-state customer are.

12. State use sales taxes are slightly more complicated to explain than sales taxes. A "use tax" generally applies under one

or two circumstances : (A) You are buying certain quantities of supplies wholesale and are reselling most of the product. However, you are retaining part of the product for your own use or consumption. You must estimate that portion which you use, and

pay the use tax on it.. (B) More commonly you are buying certain suppliers for your own use and not for resale from an out-of state supplier. You must pay the use tax on those items.. Some common examples are: Office supplies, printing supplies, office equipment, etc. Obtain specific information from your state. Use tax rates are assessed at the same percentage rate as sales tax rates. Items you buy out of state which you resell, such as books

or other products, are not subject to the use tax.

I strongly recommend that you obtain specific information from your local sales tax office and then adhere to all laws and regulations of your state. The inconvenience of dealing with those rules will be minor compared to the possible serious consequences of non-compliance.

The last page of this article shows (!) The sales and use tax rates which were in effect on July 1, 1990, in those states and the District of Columbia which levy sales and use taxes. Changes may have occurred since that time.. (2) A sample ledger sheet which may be one way you could record your sales taxes. If you are audited, it is important that you be able to produce a workable system that indicates you record sales taxes as a routine procedure. (3) That portion of a sample order form which shows the sales tax information.. Please note that almost all states levy the sales tax on that amount which includes postage charges.

State General Sales and Use Taxes,
1990

Sate Percent rate State Percent rate
Alabama 4 Missouri 4.225
Arizona 5 Nebraska

4
Arkansas 4 Nevada

5.75-6
California 6-7 New Jersey 6
Colorado 3 New Mexico

4.75
Connecticut 8 New York

4.-8.25

D.C.                          6                     North 
Carolina     5
Florida                     6                     North Dakota   

6.5-7.5
Georgia 4 Ohio

5
Hawaii 4 Oklahoma

4
Idaho 5 Pennsylvania

6
Illinois 6.25 Rhode Island

6
Indiana 5 South Carolina

5
Iowa 4 South Dakota

4
Kansas 6 .25 Tennessee

5.5.
Kentucky 5 Texas

6
Louisiana 4 Utah

6.25
Maine 5 Vermont

4
Maryland 5 Virginia

4
Massachusetts 5 Washington

6.5
Michigan 4 West Virginia

6
Minnesota 6 Wisconsin

5
Mississippi 6 Wyoming

3

ORDER FORM

ORDER # PRICE _________________________________________________________________ _
_________________________________________________________________ _
__________________________________________Subtotal for items listed above _______________

Postage $2.00 minium...or
10% of order on orders over $20.00 _________________

Maryland residents: Add 5% of total (sales tax _________________

Total amount enclosed _________________

Name ____________________________________________________

Address ___________________________________________________

City ________________ State _______________ Zip_______________

(________)Check (____________) Money Order

ORDER NOW- IMMEDIATE DELIVERY
MONEY-BACK GUARANTEE

                           XYZ SALES CO.
                           P.O. Box 1000
                           Baltimore, MD 20907             

Date |Customer Name| Zip Code | Item Description | Amount of |Sales Tax

or Code

Incl. Postage

Daily Totals

MAILORDER--MOST COMMON MISTAKES

By Peter Schruender
Copyright 1990
Macor Publishing Co.
Silver Spring, MD

INTRODUCTION

Much of the following text is based on mistakes, some of them costly ones, which I made during the early part of my mail order career. In addition, I have worked with many people over the years and have observed the most common mistakes that are made over and over again by most entrants into this business

THE GREAT MAIL ORDER MYTH
There are a number of totally unrealistic and irrational beliefs about the mail order business. To belive in any of them can be dangerous to your pocketbook. Here are some of the most common ones:

1. It is possible to make vast amounts of money in a short period

of time under the following conditions:

1. No experience

2. Little or no investment

3. Insignificant work effort

If this were a multiple choice test, then A, B, and C, would be FALSE-- FALSE AND FALSE AGAIN

It does take experience, and knowledge, which can be acquired through reading, observing, and doing... There are many good books as well as some bad ones, on the mail order business. Stay away from books that make unreasonable promises. Our Special Report Series is designed to give you factual information on a specific subject. Universities and colleges across the country give courses in mail order and direct mail.

You can learn a great deal by observing companies that have been around for some time and are successful. Read their ads, study their offers and promotional literature. Some of the most effective direct mail offers are written by professional writers who are employed by large companies and who will not have a job unless they write successful and effective material. So, the next

time you throw away a piece of mail from American Express or the Book of the Month Club, look at it and study it carefully.

The mail order business, like any business, requires an investment... It may be smaller, in many cases, than a business which requires a store front.. In most cases, mail order entrepreneurs launch their businesses from their homes. The amount of the investment is largely determined by the magnitude of the entrepreneur's effort. A part-time mail order business can

be gotten off the ground for less than a thousand dollars... The belief however, that a business, any business, can be started

for $50 or $100 is totally false. I might add, it can be very profitable to those who make their living telling people it can be done.. of course, they are usually the ones that want, and often get, the only $50 they say it takes to start the business.

And now we get to the really good part--little or no work. In some peoples' minds, it goes something like this: Put in a few hours here and there, easy work, just stuff some envelopes, run a

few ads; and wow, the money will be pouring into the mail box! Anyone who belive that probably also believes they are going to win a few million dollars in the lottery. The odds are not very far apart. Building a business, mail order or any other, is hard work.. It takes great perseverance, belief in your efforts and lots of work.

2. Many people belive that they can get lucky in this business. Don't believe it for a minute.. It is the greatest mail order myth of them all. To belive it is fatal. Look at this business in

the same way you once looked at your job anytime you first began to learn a new skill. It took time to acquire those skills and this is no different. It will take time and also effort.

3. Finding the one book or product that thousands or even millions will buy. Well, it is obviously possible since it has been done, however, your chances of coming up with another Pet Rock or Rubik's Cube are highly unlikely. It is equally unlikely that you will discover the one book that will be bought by hundreds of thousands. But your chances of becoming a success in this business and making a lot of money are excellent, if you adhere to the rules and principles of the business.

4. Running a small ad in a national magazine and getting hundreds

or even thousands of orders.

5. Renting a mailing list of 1,000 names and getting 150 to 200 orders. A very good list will generally produce no more than 2% to 3%, 20 to 30 orders for 1000 names. Your own list may do much

better.

There are a few of the ,most common beliefs about our business that are almost always totally false.

PRODUCT CHOICE

Since my experience in the mail order business is exclusively in the area of selling information products, my comments will be most pertinent to that segment of the market. However, much of the information covered here is applicable to any product sold by

mail.

The first task any new entrant into this business has to deal with is to determine what product to sell and to whom he will sell it.. This is a considerable task and it should not be taken lightly.. Many serious errors are committed in this area.. To become well informed in this area, it is necessary to read various publications that cater to those people to whom you wish to sell your products. REad the news content and study the ads. Send in for free information on those ads that are close to the products that you select have an ongoing demand so your customers

will want to buy from you again and again.

During this early stage of your mail order career, it is of utmost importance to control your enthusiasm. If you don't, you will get drawn into the SHOTGUN APPROACH. In this scenario, you will be so enthusiastic and impatient that you will make a number

of rapid moves such as the following: You will buy one or more distributorships; choose one or more products that you know a little about (it amazes me beyond belief that people make marketing decisions about products they have not seen--this is simply insane): run one or more of the publications; or rent a mailing list and have no idea how the names on that list were accumulated.

Needless to say, you can spend a thousand dollars or more in a hurry and you may get little or no results from your efforts.. And what is even worse, you will probably become discouraged and get out of the business before you had a chance to understand it at all.

When choosing a product, take care in considering all aspects associated with the marketing of it.. The most important considerations are:
demand and repeat demand
Cost and mark-up potential
Shipping or dropshipping arrangements
Reliability of your major suppliers
Product storage in case you decide to do your own shipping Cost of shipping

The most important consideration in choosing a product or line of

products is your belief that this product represents a service or

need to your potential customer. The product or products must also have related products that can be sold to your customer at a

later time.. Each product you sell should be marketed with the aim of selling additional products. This is why, in general,, selling just one product is so very difficult and selling a line of products via a catalog for example, is so effective... A versus a single one. The more items you can sell each customer, and the more repeat sales you can generate, the more money you will make.

THE PROMOTIONAL OFFER

Once you have chosen your product, set the price, decide who your

supplier is going to be and how it will be shipped, you begin to put together the marketing material.. This is more crucial in our

business than in any other business and it is also precisely the reason why a percentage of the population will not buy by mail---because they cannot see, smell or fell the product until they have paid for it.

The most common mistake committed in this area is to duplicate exactly what another enterprise is doing. One of the big problems

with this approach is, since there is so much plagiarism going on

in this business, you may be copying someone who is just as new in this business as you are and who is also copying someone else's idea. It is OK to copy what others are successfully doing example, many companies in the information product line will provide their dealers or distributors with ready-made promotional

material. In most cases, this is the least expensive way to get started and, if you are dealing with a reputable and successful company, you will be promoting products that have been proven successful.

It is recommended however, that you use this approach only until you get your feet wet. Then you should begin to develop your own material. Once you have a better understanding of what sells and who is buying it and why, develop your own brochure, circular, etc. You can still utilize the material of others as an addition

or follow-up to your material. Developing your own material is not at all difficult and can be done professionally and effectively on a rather small budget. A good promotional offer consists of several important components which include:

The circular or brochure, or catalog. A brochure or catalog does not have to be a 40 page instrument but can be as few as 4 pages

An effective sales letter

The ordering instrument--this may be a built-in order form, separate order form, etc.

Return envelope

Of the above, the development of the brochure, circular or catalog, is the most expensive so here is where you will most likely use something that is supplied to you by your supplier.. A

hard hitting sales letter is as important as the brochure. You have generally three options in tackling this project:

1. You can copy one from someone else. Since an exact copy may be

illegal,, you should probably use elements of the letter and make

some changes but the end result generally leaves much to be desired.

2. You can pay someone to write one for you. This can be very expensive and may still bring about less than desirable results. The biggest problem here is that the writer of your sales letter will generally not understand your product as well as you do.

3. Do it the right way, the hard way. Do it yourself.

There are many good publications on effective letter writing for direct marketing and you should read one or more of them. Keep in

mind that no one will understand your product as well as you do..

To do a good job, it is a definite requirement that you believe in the product and believe that it has one or more important benefits to the buyer. Just having the desire to sell the product, so it will make money for you,, will not cut it as a rule.. Once you understand the basic components that need to be in every sales letter, you should be able to write one.. A little

practice may be necessary. You will become more proficient with each new product.

An order form should be user friendly. Your customer should be able to read the instructions with ease. If your brochure, circular, etc. has a built-in order form, it is generally a good idea to enclose a separate order form.. This way the customer can

keep the original offer intact.

Enclosing a return envelope is strongly suggested. The idea is to

make it as easy as possible for your potential buyer to part with

his money and send it to you without too many hurdles.

The biggest sins are committed under this topic of The Promotional Offer and, since the promotional offer is the only thing your customer sees before deciding if he will buy from you or toss you in the nearest trash can, you must do things right,, there are absolutely no exceptions. If you are sloppy here, if you try to save a few bucks, you are cheating yourself, not your customers. Keep in mind he is an expect at rejecting offers since

he had many years experience. the average American is presented with approximately 6,000 plus offers to buy something per week--TV, radio, newspapers, magazines, road signs and,, last but

not least direct mail.. Or, putting it into more personal terms, YOUR OFFER. So sweat over this one SO YOU WON'T GET TOSSED.

THe money which is wasted annually in this country on substandard

direct mail would make a substantial dent in our country's national deficit. Every week I see dozens of offers come across my desk that could make me weep.. Such garbage! Return envelopes with crooked rubber stamp imprint, sales letters with spelling errors, grammatical errors, etc., so called brochures which were apparently copied by a 20 year old copying machine.., circulars that look extremely unprofessional because the order from section

has obviously been changed by a typewriter and they arrive all by

their lonely selves, no sales letter, no return envelop.. God it is awful! The authors of this garbage are screaming to the world:

"i am an amateur, I am an amateur, I have no idea what I am doing

but I want your money. You'd better belive and not forget that this country is made up of 240 million of the most sophisticated buyers to be found anywhere on this globe.

Yet, this is also the area where you can shine and excel beyond your wildest dreams.. Modern technology has given us the tools to

produce marketing material that can make you look as good as some

of the largest and most successful companies in this country. And

you can do it right out of your home. You will find professionals

who can help you in this endeavor. Right in your own city there are desktop publishers, graphic designers, and word processing services that are eager to help you. You could get a 4 page brochure designed for as little as approximately $100, in most markets, plus printing. The brochure can look just as good as the

brochure of a million dollar company.

Therefore, you must do things right. The average buyer will look at your piece for less than 8 seconds to decide whether to junk it or study it.

MARKETING YOUR PRODUCT VIA ADVERTISING

Most new mail order entrepreneurs will sell their products through advertising once they know what they will sell and have developed their promotional offer. Since display advertising is generally quite expensive, it is best to start out with classified ads in monthly national publications. Classified ads, as well as small display ads, should only be used to get inquiries from promotional buyers. The inquiries are sent the promotional material you have developed and a percentage of them are converted into buyers. This percentage generally will range from between 6-12%. If you want to sell something directly from an ad, the item should cost less than $4. There is not enough space in a small ad like that to convince a buyer to spend $10 or

$20. For that reason, you see full page ads selling products in that price range.

The first task is to choose the right magazine. One of the most effective ways to find the right magazine is to choose one that carries ads by successful companies that sell products similar to yours... The wrong magazine is generally the one whose content

attracts readers who are not at all interested in the product you

are selling.

Choosing the right classification in the publication is as important as choosing the right magazine.. Again follow the leaders. Since there are thousands of magazines catering to almost every possible interest group, the possibilities of finding new opportunities to market your products are unlimited. I suggest, however, that in the beginning you stick with well known magazines and leave your experimentations for later when you are better established.

Monthly publications are generally more cost effective than weekly magazines, and certainly, daily papers. You can get inquiries from a national publication, such as Popular Mechanics,

for months and sometimes well over a year. A daily paper, on the other hand,, will rarely produce an inquiry beyond 2-3 weeks after it was published.

A common advertising mistake is to choose inexpensive advertising

such as in shoppers papers, mail order trade journals, etc. It is

not how much the ad costs but how much each inquiry costs you... If you ad costs $100 and you receive 100 inquiries, each one has a direct cost to you of $1. Early in mail order career I spent a lot of money for a $10 ad here and a $20 ad there. I soon learned

that sometimes I would only get one or two inquiries for my $10. Expensive! To test a product and promotional offer it is sufficient to run the ad just once.. The magazines and advertising agencies will often tell you that to test an ad you must run it 3 or more times. I say no. Not until you know how the

first one pulls. You will need some patience for this endeavor since most monthly publications have a lead of two or three months.. But its is much better to wait a little while than to spend hundreds of dollars without getting needed results. To write successful ads also takes practice and work.. Once again,, follow the leaders. A successful ad can often pull two, and sometime three, times as many inquiries as an ineffective one.

MARKETING YOUR PRODUCT VIA MAILING LISTS.

This approach is often preferred by the newcomer. Unfortunately, it is also generally the least effective way. It is preferred by many because it is perceived to be easy. And if it worked it would be. Millions of dollars are made by companies in renting the wrong names and stale names to new mail order entrepreneurs..

Both sides lose. The company renting the names will not get any repeat business and the customer often goes out of the business if his efforts are futile. Almost my very first mail order experience, "a very rude awakening," was when I rented such a list, sent out 1,000 offers (first class no less- a definite no, no) and I got how many orders: "How about two or in dollars $20."

Between postage, printing, renting the list, etc.,my cost was well over $300.

The most unfortunate mistake newcomer make here is to assume one list as good as the next one. I generally recommend that inexperienced mail order operators start out advertising, and as they gain experience, begin to use mailing lists in addition to their advertising. But, if you absolutely cannot resist, at least

be very picky in choosing your lists. Deal with a reputable broker or smaller mail order company that you know advertisers frequently. Find out how the names were generated. What did the ad that brought the inquiry sell? If you are trying to sell books

on how to start a new business and end up with the names of people who answered an ad about how to find a better job or learn

a new hobby, you will have wasted your money... Likewise if names

are older than 6 months, preferably no more than 3 months, you will get too many returns and people may not be interested in the

same subjects anymore. Mailing lists especially your own, can be highly successful, but only if you have gained enough experience to make wise selections.

MANAGING YOUR BUSINESS

The single most important element of managing this or any business is watching each and every expense. Although mail order companies, even larger ones, have relatively low costs in the area of labor, office rent, etc.,they do have very high costs in these categories: postage, printing, and advertising. You must watch these expenses like a hawk. The best way to look at your expenses is on a per unit basis. We already addressed the cot per

advertising inquiry. Let's now look at a typical mailing of 1,000

pieces.

Your Cost
1,000 #10
envelopes........................................................ .
.. $25.00
1,000 #6 3/4 return

envelopes..........................................20.00
1,000 sales letters imprinted on both sides................28.00
1,000 order forms 8 1/2 x 
11...............................................28.00
1,000 4 page 
brochures........................................................

.
....90.00
1,000 postage (bulk 0.26.7 cents
per................................167.00 Total

$358.00
1,000 names--rental

40.00
Total

$398.00

Now think in terms of cost per unit, each one costs 40 cents. If you were to use First Class Mail instead of Bulk Mail, your cost would shoot up to 48 cents, a 20% increase. If, on the other hand, you could buy your printing for a little less, you might be

able to cut 5 cents off your cost.

It is also very important that your product allows you a high enough profit margin. A markup of 200% is preferable but 100% may

be sufficient, especially if you sell via catalog and will therefore, generate more than one item per order.

Let's assume you will get a 1.9% rate of return on this mailing which will give you 19 orders at an average order of $38.00 which

Would give you a gross take of...... $722.00
Less -- Cost of product - 35%........-.252.00
Gross profit............................................. $470.00
Less -- Cost of Mailing...................... - 398.00
Net profit......................................................$

72.00

Let's assume you had sent your mailing First Class. The additional $80.00 would have robbed you of your entire profit.

The above figures are merely used to illustrate the importance of

thinking in cost per unit and being highly cost conscious.

The receding pages have attempted to cover some of most important

areas you should be aware of as you start out in this exciting business. Although the emphasis in the preceding pages has been largely on the negative, I belive strongly that this business has

immense potential and rewards for anyone who has the interest and

dedication to learn it. If you do your homework and make deliberate moves based on your personal knowledge and experience and you expand with each success, the potential for your ultimate

success is almost unlimited. Don't forget that unlike your friendly neighborhood retail store which sells only t a confined geographical market, you can market your product to over 260 Million people in the U,S, and Canada.

So remember before you can earn you must learn!

HOW TO CREATE CIRCULARS, SMALL BROCHURES, AND SALES LETTERS THAT WILL GET YOU ORDERS, NOW!

by Robert Drake

Copyright 1990
Mascor Publishing Co.
P.O. Box 8308
Silver Spring, MD 20907

WHY ARE YOU WRITING THIS BROCHURE OR SALES LETTER?

A great deal of money is wasted each day in putting useless sales

and marketing material. Material that was written for the wrong reason or the
writer forgot its purpose after he started writing it or fell in love with his own words.

The single purpose of any marketing communications is to get the reader to take action... That action may be to request additional

information or to phone in or send in an order. Before you write any marketing document be sure you are clearly focused on this point. As you write each sentence and each paragraph, constantly ask yourself whether what you are writing will get your prospect to act.

It is easy to get sidetracked but don't fall into this trap.. Your purpose is not to tell the readers how clever you are or how

great your company is to try to entertain your reader. Your only objective in writing this material is to get your prospect to:

1. Send in or call in an order.

2. Obtain more information, if that is your intent.

So, before you write your material, write down its purpose and then stick to it.

The focus should always be on the prospect, not the writer!

All of us are barraged with direct mail pieces every day. Have you noticed how many of them, even in the opening paragraph, miss

the point which is you the reader and your needs.

Here are two examples. Both were written by magazines with the purpose, I assume, to get the reader to spend advertising dollars. You decide which one is doing the job.

I. Avertiser's Introductory Special

Advertiser:

The XYZ Magazine is a monthly national mail order newspaper which

is circulated by mail... Our readership of 1,000,000 are mail order responsive subscribers, Opportunity Seekers, Investors, Salespeople, etc...........................

2. Looking Fora A Fresh Start?

Millions of Americans have a dream, and that dream is to become rich and successful in an exciting, lucrative business of their own -- What better way than to start through classified advertising.

When you receive a sales letter or brochure that focuses on you, don't you take notice and get further into the material?

Make it a practice, at least until you become more experienced to

scan each and every promotional piece that is sent to you. You will quickly establish the difference between effective and ineffective material.

Some Research Will be Helpful

Writing the right material but directing it to the wrong person is fatal. Don't you often get married, especially direct mail pieces, which have absolutely nothing to do with your needs or interests.

Know who you are writing to and what that person wants.. How can he benefit by what you have to offer. One way you can accomplish this is by picking out those classified or display ads that resemble what you want to sell. Then send in for more information.. You soon learn how the product is being marketed by

different companies.

The very best way to write material that reaches the prospect is by writing to one person rather than writing for mass appeal.. It

will keep your style easy and friendly.

Lethargy is human nature and overcoming it will be one of your greatest challenges... Most of us are lethargic by nature.. If we

can do it tomorrow or nest week, why not.. People feel if they don't take any action they cannot make a mistake. Every marketer has the formidable challenge of overcoming theses "Non-action Tendencies."

The anxiety/fear syndrome can be effectively used to overcome the

above... For example: "This is a limited offer." This offer must be exercised by date...Be believable in what you are saying. Consider using testimonials, government studies, well known research, etc. to aid you in making your point.

For example, research pertaining to the start of any enterprise indicates that before any business can be started, someone initially has an idea and then at some crucial moment takes the first step.. It is when he translates the mental commitment into a physical act. This may be the purchase of a book, report, franchise, distributorship, going out and looking for a site for a retail outlet. etc.

This is why you see so many marketing documents how the marketer uses this fact in trying to overcome the resistance of inaction. There are many other ways you will think of in overcoming this resistance.

Features of you product or service such as how fast you deliver something, what color it is,, how it can be assembled are far less important to the buyer than benefits are to him.

The benefit of sitting on you new outdoor furniture, on your patio on a warm summer evening and enjoying a cool beer are far more important than the fact that this outdoor furniture is constructed of the finest material,, comes in four different colors, is delivered in 10 days and has a 30 day money back guaranty.

All you have to do is to watch the car commercials, of the manufacturers, not the dealers. What is the last time you have seen one that gives you much, if any information on the car. What

do you see in many of these T.V. car commercials? Beautiful women, healthy looking young men, a beautiful sunset on the Pacific Ocean, and wonderful background music. The shiny new car,

of course, is part of the scenery. But none of it really has anything to do with what a car provides, transportation, reliability, performance, etc.

There are many way in which you can turn features into benefits by carefully weaving it all together. The fact that this lawn furniture you are selling is delivered in just 10 days brings the

benefit of sitting on it, on a summer evening......so much faster

to your buyer.

Making an Offer and Asking for the Order

It is a mistake to leave it up to the prospect to take action and

when to take it. If you leave it up to your prospect what to do and when to do it you may never get the order. He will have many distractions after he puts your offer down. The more time goes by

the less likely he will send an order. So give him a reason why to take action NOW. You have already told him why he will benefit

by your product.

Your prospect already has decided that he needs what you are offering because of the great benefits to him. Now, give him a compelling reason why he should act, now.

Making the Various Pieces of Your Material Fit

Your sales letter, your brochure, etc. must fit. Since you wan t to do a better job than your competitor and this takes time and effort, chances are very good that whatever you create is worked on over a period of time.. The brochure may be created one week and the sales letter a few days later.. Make sure that it all fits and complements each other. Stick to your original outline which should be written down before you ever get started.

Some Final Thoughts

After it is all done give it one more review. Wait a couple of days and read it again. Then ask these questions: Is it directed to the prospect or is it about me. Is it of benefit to him? Am I making my strongest benefit. I think that is dead wrong.. Research indicates that the recipient of a direct mail piece takes about 8 seconds to decide whether to read on. So, give it your very best shot right at the start.

You are satisfied it is the best you can create. If you have come

to that point it is important you get someone else confirm that for you. This should be someone who does not have a material interest in your offer.

When you create great marketing piece and it gets you the results

which you planned for -- more orders, more revenue and more profit-- you will feel very good. Getting there is half as difficult as it may seem. All it takes is a little practice and a

little more practice.....

Wishing you success always

MAIL ORDER ADVERTISING DIRECTORY

1991 EDITION

Published by: Concept Marketing Co.
P.O. Box 7367
Silver Spring, MD 20907
All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical

including photocopying and recording, or by any information storage or retrieval system without written permission from the publisher.

This publication is designed to provide accurate authoritative information inn regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting or other professional service.. If legal or other professional assistance is required, the services of a competent professional person should be sought.

From a declaration of principles jointly adopted by a committee of the America Bar Association and a committee of publishers.

INTRODUCTION

This directory was designed primarily for the beginning mail order entrepreneur. There are various Advertising Directories on the market. Some list a few hundred, some over a thousand publications. Listing such a vast number of publications is unnecessary and creates confusion for someone new to the business. Most of the publications listed are neither suitable nor do they accept classified ads. Even the smallest display ads in certain magazines often cost thousands of dollars. Therefore, we felt strongly that a smaller directory, listing only those publications which accept classified ads; cater to the mail order

field; and have proven to be successful for many small mail order

companies, was definitely needed.

THE MAIL ORDER ADVERTISING DIRECTORY lists only about 150 publications, We think the best way to get started with your advertising effort is with small well-placed classified ads in national, monthly publications. As you gain experience and your business grows, you should definitely work with display ads as well. The smallest display ad which is generally available from mostly national publications is 1 inch in size. It may cost anywhere from 100% to 300% more than a typical 20 word classified

ad in the same publication.

We also did not list any daily newspapers. Mail order advertising

is generally not cost effective in a "daily" due to the very short shelf life of one day to 3 days (weekend edition). Weekly, but especially monthly publications, by contrast, can generate inquiries for several months. Some of the major daily papers however, can be effectively utilized to obtain quick test results

for a given offer... Many of the publications listed in our directory lend themselves very well to information products such as books, manuals, directories, tapes, etc.

SOME GENERAL COMMENTS AND SUGGESTIONS ABOUT ADVERTISING

Advertising Expense

As a newcomer to the mail order field, you have probably already learned that besides the cost of the product you sell, your biggest expense are in three major categories, namely: Advertising, printing, and postage. It is vital that, right from the start, you control these expenses carefully.. These major expense categories make up close to 90% of the budget of an owner-operated, home-based mail order company.

In a classified ad, you generally pay a per-word rate. A few publications, as well as daily newspapers, charge a per-line rate. Many publications have minimum word requirements of about 15 words. Each word used in the ad, including all components of your company name and address are counted. Since per-word rates range anywhere from approximately $2 to $15, it is important to choose your words carefully so you get a maxim number of inquiries for a minium amount of expense.

The most effective way to evaluate the cost effectiveness of your

ad is on a cost per inquiry basis.. As an example, an ad which costs $100 and generates 100 inquiries has a per inquiry cost of $1. Such an ad may therefore, be far "less expensive" than a $10 ad in one of the hundreds of small mail order publications. Such an ad may cost $10 but if it gets only two or three inquiries the

cost per inquiry is prohibitive.

As a general rule, we recommend not using small mail order publications or ad sheets. Advertising in these publications is usually quite inexpensive and, consequently, very tempting.. But a $10 ad here and there can quickly ad up,, especially if there are unprofessional appearance and has no news content, only ads, you should stay away from it. Within the directory, we have listed about 15 mail order publications from which we have listed

results. These are listed in alphabetical order along with the other publications and are classified as Mail Order Advertising Magazines/Tabloids. They are preceded by an * asterisk.

How to Test an Ad

If you are advertising a product for the first time, it is generally best to place just one ad. After you have evaluated the

effectiveness of the ad, place additional ads. Multiple insertions do save money, but it is best to wait until you know what ads, in which publications, work best for you. In a monthly publication, most inquiries will come in between the second and fourth week after the ad first appeared. If you are running the same ad in different publications, be sure to code each ad, such as by department number.

Choosing the Right Publication and Classification

Choosing the right publication requires some effort on your part.

If you budget allows it, buy a few of those magazines you are considering advertising in. Review the ad as well as the news and

editorial content.. You want to determine if the readership of a magazine is the right audience for your offer. In most cases, your ad will be well placed in a publication which advertises similar products. Your ad would be especially well placed in publications which carry repetitive advertising of successful mail order companies which sell products similar to what you offer. Choosing the right classification is just as important as choosing the right publication. Choosing the right classification

can mean 50 even 100 more inquiries. Again, generally, it is best

to place your ad under the same classification as your competitors do.

Suggestions for an Effective Classified Ad

"get the readers' ATTENTION--quickly." The headline/first impression is critical. Most publications allow 2-5 BOLD WORDS free of charge. Use those words well to get your opening message across.

"Arouse INTEREST as soon as possible" by giving your reader the important benefits." Waste no time in telling your prospect why he should buy from you.

"Stimulate DESIRE for your product or service." Tell the reader how he will benefit.

"Generate ACTION By telling him exactly what you want him to do" at that specific moment in time, such as: Write for FREE REPORT today!

Most classified ads are best used to generate inquiries which are

sold not by the initial ad but by the sales literature they will receive. Mail order advertising pros agree that it is almost always impossible to sell an item costing more than $3 to $5 directly from a classified ad.

ABOUT LISTINGS ON THE FOLLOWING PAGES

Publications are shown in alphabetical order. Each listing consists of the following data: name and address of publication, circulation, frequency, per-word or line rate (some publications do not have rate information due to an impending rate charge or unavailable date at time of publication), and category.. Due to frequent rate changes by most publications, we recommend you write to the publication requesting a current rate card before placing an ad.

Publications shown in bold are weekly or monthly national publications that we believe will give you the best on your return advertising expenses,

• Publications preceded by an asterisk are major mail order trade

magazines. If you would like a more complete listing of over 100 Mail Order Trade Magazines, order Directory of Mail Order Publications. $3.00

IN CONCLUSION

THe goal of all advertisements is the successful presentation of the advertiser's message so that he realizes the maximum amount in sales and profit.. The idea is to create reader interest and get responses that result in CHECKS and ORDERS.

NOW YOU CAN SAVE MONEY ON ALL YOUR ADVERTISING STARTING RIGHT NOW! See Resource Guide last page.

50 PLUS, 850 Third Ave.,New York, NY 10022, 350,000 monthly, Senior Citizens

AMERICAN FIL,,, JFK Center of the Performing Arts, Washington, DC

20566, 130,000 ten times a year, $2.95 per word, Entertainment

AMERICAN HANDGUNNER, 591 Camino de La Reina, Suite 200, San Diego, CA 92108, 154,000 bi-monthly, $0.54 per word, Outdoor Living & Sports

AMERICAN HEALTH, 80 FIfth Ave.,New York, NY 10011, 775,000 monthly, $10,40 per word, Health & Fitness

AMERICAN HUNTER THE, 1600 Rhode Island Ave. NW, Washington, DC 20036, 1,500,00 monthly, $4.20 per word, Outdoor Living & Sports

American Legion, The 7-00 N Pennsylvania St.,Indianapolis, IN 46206, 2,500,000 monthly, $12.00 per word, Clubs-Civic & Fraternal

AMERICAN RIFEMAN, THE, 1600 Rhode Island Ave. NW, Washington, DC 20036, 1.480,000 monthly, $4.20 per word, Outdoor Living & Sports

AMERICAN SHOTGUNNER, THE 100 W. Grove St. #500, Reno, NV 89505, 95,000 monthly, $0.96 per word, Outdoor Living & Sports

AMERICANA, 29 W 38th St.,New York, NY 10018, 390,000 bi-monthly, $4.75 per word, Home & Shelter

ANTIQUES TRADER WEEKLY, P.O. Box 1050, Dubuque, IA 52001, 70,000 weekly, $0.60 per word.

ANTIQUE WEEK, 27 N. JEfferson, Knightown, IN 46148 36,000 weekly,

$0.50 per word, Antiques and Collectables

ARCHERY, 11812 Wayzata Blvd.,Ste 100, Minneapolis, MN 55343, 125,000 bi-monthly, $1,50 per word, Outdoor Living & Sports

ARMY TIMES MILITARY GROUP, Springfield, VA 22159, 140,000 weekly,

$12.88 per line, Military

B'NA B'RITH INTERNATIONAL JEWISH MONTHLY, 825 U.N. PLaza, New York, NY 10017, 170,000 monthly, $1.20 per word, Clubs, Civic & Fraternal

• BEN FRANK'S ALMANAC, Kelly Company, Box 655, Pinellas Park, FL 34664, Mail Order Advertising Magazine/Tabloids

BESTWAYS, P.O. Box 2028, South Sutro Terrace, Carson City, NV 89702, 300,00 monthly, $2.60 per word, Health & Fitness

BETTER LIVING, 1775 Broadway, New York, NY 10019, 800,000 quarterly, Health & Fitness

BILLBOARD, 1515 Broadway, New York, NY 10036, 47,000 weekly, Music

BLACK ENTERPRISE, 130 FIfth Ave., New York, NY 10011, 240,000 monthly, $6.50 per word, Businesses

BLOOMBURY REVIEW, P.O. Box 8928, Denver, CO 80201, Bi-monthly, Iformation, Writing & Publishing

BLUMS FARMERS & PLANTERS ALMANACS, 3301 Healty Dr.,SW Winston-Salem, NC 27103, 295,000, annually, $3 per word. Almanacs

BOATING, CBS Publications, 1515 Broadway, New York, NY 10036, 190,000 monthly, $3.35 per word, Boating/Sailing

BOOKDEALERS WORLD, P.O. Box 2525, La Mesa, CA 92041, 20,000 quarterly, Information, Writing & Publishing

BOWHUNTER, Blue -+ Inc. 3808 S Calhoun St.,Ft Wayne, IN 46807, 111,000 bi monthly, $1.50 per word

BUSINESS IDEAS, Dan Dewman Company, 57 Lakeview Ave.,Clifton, NJ 07011, 4,000 monthly, Businesses

CANADIAN ENTREPRENEUR, 69 Sherbourne St, Ste 525, Toronto, Ont.,Canada M5A 3X7, 26,000 Monthly, Businesses

CAPPERS WEEKLY, 616 Jefferson St.,Topeka, KS 66607, 400,000 bi-weekly, $1.45 per word, Tabloids

CAR & PARTS, AMos Press, Box 29, Sidney, OH 45365, 122,000 monthly, $0.35 per word, Automotive

CAR AND DRIVER, CBS Publications, 1515 Broadway, New York, NY 10036, 825,000 monthly, $7.20 per word, Automotive

CAR CRAFT Petersion Publishing Co.., 8490 Sunset Blvd.,Los Angeles, CA 90069, 450,000 monthly, $6.00 per word, Automotive

CIRCUS MAGAZINE, 419 Park Ave.,South, New York, NY 10016, 421,553

monthly, $5.40, Music

COINS, 700 E. State St.,Iola, WI 54990, 70,000 monthly, Crafts & Hobbies

COLLECTOR'S MART, 15100 W. Kellog, Wichita, KS 67235, 75,000 monthly, $0.48 per word, Antiques and Collectibles

COMPUTER SHOPPER, 407 S. Washington Ave.,Titusville, FL 32780, 100,000 monthly, Computers

COUNTRY MUSIC, 450 Park Ave.,South New York, NY 10016, 350,000 bi-monthly, $6.35 per word, Music

CRAFT ART NEEDLEWORK DIGEST, P.O. Box 584, Lake Forest, IL 60045,

70,000 bi-weeklyy, $0.96 per word, Crafts & Hobbies

CRAFTS 'N THINGS, 14 Main St.,Park Ridge, IL 60068, 290,000 six times a year, $2.70 per word

CRUISING WORLD, 524 Thames St.,Newport, RI 02840, 115,000 monthly, $2.25 per word, Boating/Sailing

CYCLE, One Park Ave.,New York, NY 10016, 388,000 monthly, $4.00 per word, Motorcycles

CYCLE WORLD, 1499 MOnrovia Ave.,Newport Beach, CA 92663, 305,000 monthly, $3.15 per word, Motorcycles

DIRECTORY OF MONEY MAKING IDEA, Davis Readers Group,, 380 Lexington Ave.,New York, NY 10017, 300,000 annually, Opportunity & Sales.

DIRT BIKE, 10600 SPulveda Blvd.,Mission Hills, CA 91345, 140,000 monthly, $2.00 per word, Motorcycles

DOLLS, 170 Fifth Ave.,12th Floor, New York, NY 10010, 53,000 bi-monthly, Crafts & Hobbies

DOWN BEAT, 222 W Adams, Chicago, IL 60606, 100,000 monthly, $3.60

per word, Music

DUCKS UNLIMITED, ONe Waterfowl Way, Gilmer Rd.,Long Grove, IL 60047, 63000,000 bi-monthly, $30,00 per line, Outdoor Living & Sports

ENTREPRENEUR DIGEST, BOx 3224, Oshkosh, WI 54903, Mail Order Advertising Magazine/Tabloids

ENTREPRENEURS MAGAZINE, P.O. Box 570, Clearwater, FL 34617, 190,000 monthly, $6.95 per word, Opportunity & Sales

EXTRA INCOMEE, P.O. Box 21957, Santa Barbara, CA 93120, 400,00 bi-monthly, $6.50

FAIR TIMES, BOx 455, Arnold, MO 63010, 20,000 monthly, Opportunity & Sales

• FAMILY TRAVEL LOG, Looney Enterprises, Box 406, Kewanee, IL 61443, Mail Order Advertising Magazine/Tabloids

FIELD AND STREAM, 1515 Broadway, New York, NY 10036, 1,940,000 monthly, $9.40 per word, Outdoor Living & Sports

FINANCIAL OPPORTUNITIES, 3321 W. Dempster St.,Skokie, IL 60076, 250,000 monthly, Opportunity & Sales

FINE WOODWORKING, P.O. Box 355, Newtomnn, CT 06470, 270,000 bi-monthly, $6.90 per word, Crafts & Hobbies

FINS & FEATHERS, (Several magazines),, 318 W Franklin Ave.,Minneapolis, MN 554404, $3.60 per word, Outdoor Living & Sports

FISHING WORLD, 51 Atlantic Ave.,Floral Park, NY 11001, 320,000 bi-monthly, $3,00 per word, Outdoor Living & Sports

FLOWER & GARDEN, 4251 Pennsylvania Ave.,Kansas City, MO 64111, 635,000 bi-monthly, $5.00 per word, Gardening

FUR-FISH GAME, 2878 E Main St.,Columbus, OH 43029, 200,000 monthly, $1.20 per word, Outdoor Living & Sports

GLOBE, 2112 S Congress, West Palm Beach, FL 33406, 1,800,000 weekly, $5.60 per word, Tabloids

GRIER'S ALMANAC, Box 888281, Atlanta, GA 30356, 3,000,000 annually, $7.20 per word

GRIT, 208 W 3rd St.,Williamsport, PA 17701, 600,000 weekly, $2.00

per word, Tabloids

GUNS & AMMO, 8490 SUnset Blvd.,Los Angeles, CA 90069, 500,000 monthly, $7.20 per word, Outdoor Living $ Sports

HAM RADIO MAGAZINE, Dept HR, Greenville, NH 03048,, 40,000 monthly, Communications, Electronics, Video

HIGH FIDELITY, 825 7th Ave.,New York, NY 10019, 400,000 monthly, $2.75 per word, Music

• HI-LITE, Harris House, P.O. Box 351, Bonifay, FL 32425, Mail Order Advertising Magazine/Tabloids

HOME MECHANIX, 1515 Broadway, New York, NY 10036, 1,485,000 monthly, $7.45 per word, Mechanux & Science

HOME OFFICE COMPUTING, 730 Broadway, New York, NY 10003, $29.00 per line

HOMEOWNER THE, 3 Park Ave.,New York, NY 10016, 650,000 10 times per year, $3.95 per word, Home & Shelter

HORTICULTURE, 755 Boylston St.,Boston., MA 02116, $3.90 per word,

Gardening

HOT ROD MAGAZINE, Peterson Publishing Company, 8490 Sunset Blvd.,Los Angels, CA 90069, 850,000 monthly, $10.80, Auto Racing/Hot Rods

IN BUSINESS, P.O. Box 351, Emmaus, PA 18049, 80,000 bi-monthly, $2.80 per word, Opportunity & Sales

INC.,38 Commercial Wharf, Boston, MA 550,000 monthly, $11.30 per word, Businesses

INCOME BUSINESS MAGAZINE, M.C. PUblications 2002 London Rd.,#101,

Duluth, MN 558112, Mail Order Advertising Magazine/Tabloids

INCOME OPPORTUNITIES, 380 Lexington Ave.,New York, NY 10017, 325,000 monthly, $6.95 per word, Opportunity & Sales

ISLANDS, 3886 State St.,Santa Barbara, CA 93105, 110,000 bi-monthly, $5.70 per word, Travel

KIWANIS, 3636 Woodview Terrace, Indianapolis, IN 46268, 280,000 monthly, $3,25 per word, Clubs-Civic & Fraternal

LINN'S STAMP NEWS, 911 Vanmarc Rd.,P.O. Box 29, Sidney, OH 45365,

75,000 weekly, $0.36 per word, Crafts & Hobbies

LOTTERY NEWS & GAMBLING REVIEW, Prize Publications Inc..,517 McCormick Blvd.,London, Ontario, Canada N5W 4C8, 58,000 monthly, Gambling

LOTTERY PLAYERS MAGAZINE, Box 5013, Cherry Hill, NJ 08034, 225,000 monthly, $1.95 per word, Gambling

*MAIL ORDER PERFORMANCE, JMC P.O. Box 241073, Memphis, TN 38124, Mail Order Advertising Magazine/Tabloids

• MAIL ORDER SUCCESS, Teague Publishing, Box 191, Dayton, OH 45404, Mail Order Advertising Magazine/Tabloids

• MAIL ORDER PROFITS, P.O. Box 4785, Lincoln, NE 68504, Mail Order Advertising Magazine/Tabloids

• MAIL ORDER MESSENGER, P.O. Box 640207, Kenner, LA 70064, Mail Order Advertising Magazine/Tabloids

• MAIL ORDER/MLM MARKETING, P.O. Box 59001 N Reddington Beach, FL

33708, Mail Order Advertising Magazine/Tabloids

MARINE & RECREATION, 27601 Little Mack, St Clair Shores, MI 48081, 65,000 weekly, $3.30 per line, Boating/Sailing

MCCALLS, 230 Park Ave.,New York, NY 10169, 6,100,000 monthly, $5.50 per word. Women's Magazines

MIND YOUR OWN BUSINESS AT HOME, 14850 N LIncoln Ave.,Box 60, Chicago, IL 60614, Bi-monthly, Businesses

MONEY MAKING OPPORTUNITIES, 11071 Ventura Blvd.,Studio City, CA 91604, 220,000 8 times a year, $3.30 per word, Opportunity & Sales

MONEYWORTH, 251 W 57th St.,New York, NY 10019, 550,000 quarterly,

Businesses

MOTHER EARTH NEWS, THE, Box 70, Hendersonville, NC 28793, 885,000

bi-monthly, $5.65 per word, New Age Metaphysical

MOTOR BOAT & SAILING, 224 W. 57th St.,New York, NY 10019, 142,000

monthly, $2.60 per word

MOTOR TREND, Peterson Publishing Co.,8490 Sunset Blvd.,Los Angeles, CA 90069, 760,000 monthly, $5.00 per word, Automotives

MS, 119 W. 40th St.,New York, NY 10018, 430,00 monthly, Women's Magazines

MUSCLE CARS, CSK Publishing Co.,Inc.,29 Grove St.,South Hackensack, NJ 07606, 40,000 quarterly, $0.42 per word. Automotive

MUSIC CITY NEWS, 50 Music Square West, Suite 601, Nashville, TN 37302, 115,000 monthly, $0.65 per word, Music

NATIONAL ENQUIRIER, Latana, FL 33464, 4,500,000 weekly, $7.25 per

word, Tabloids

NATIONAL EXAMINER, 2112 S Congress, West Palm Beach, FL 1,050,000

weekly,, $4.70 per word, Tabloids

NATIONAL MAIL ORDER SHOPPER, THE, P.O. Box 5, Sarasota, FL 33578,

Tabloids

• NATIONAL MARKETPLACE, Drawer 19689, Houston, TX 77224, Mail Order Advertising Magazine/Tabloids

NEW AGE, 342 Western Ave.,Brighton, MA 02135,, 75,000 monthly, $3.60 per word, New Age Metaphysical

NEW BUSINESS OPPORTUNITIES, P.O. BOx 570, Clearwater, FL 34617, 200,000 monthly, $4.60 per word

NEW WOMAN, 215 Lexington Ave.,New York, NY 10016, 1,200,000 monthly, Women's Magazines

NIAGARA PROMOTIONS, P.O. Box 748, Lewiston, NY 14092, Mail Order Advertising Magazine/Tabloids

NUMISMATIC NEWS,, IOla, WI 54990, 47,000 weekly, Crafts & Hobbies

OLD FARMERS ALMANAC, THE, Dublin, NH 03444, 3,540,00 annually, $8.50 per word, Almanacs

OPPORTUNITY/INCOME PLUS, 73 Spring St.,Ste 303, New York, NY 10012, 180,000 monthly, $5.60 per word

OUTDOOR LIFE, 380 Madison Ave.,New York, NY 10017, 1,470,000 monthly, $8.40 per word, Outdoor Living & Sports

PC, One Park Ave.,New York, NY 10016, 230,000 bi-weekly, Computers

PC WORLD, PC World Communications, Inc.. 565 Dettaro St.,San Francisco, CA 94107, 538,000 monthly.

PERSONAL SELLING POWER, Gerhard Gschwandtner Associates, 1127 International Parkway, Fredericksburg, VA 22405, 75,000, 8 times a year, Opportunity & Sales

POPULAR CERAMICS, 3639 San Fernando Rd.,Glendale, CA 91204, 43,000 monthly, Crafts & Hobbies

POPULAR MECHANICS, 224 W 57th St.,New York, NY 10019, 1,666,000 monthly, $8.65 per word, Mechanics & Science

POPULAR WOODWORKER, 1300 Galaxy Way, Concord, CA 94520, Bi-monthly, Mechanix & Science

PUBLISHERS WEEKLY, 205 E 42nd St.,New York, NY 10017, 39,000 weekly, Information, Writing & Publishing

RAILROAD MODEL CRAFTSMAN, P.O. Box 700, Fredon-Springdale Rd.,Newton, NJ 07860,, 85,000 monthly, $0.56 per word, Crafts & Hobbies

RIDER, 29901 Agoura Rd., Agoura, CA 91301, 137,000 monthly, $25.00 per line, Motorcycles

ROAD AND TRACK, BOnd Publishing Co., 1499 Monrovia Ave.,Newport Beach, CA 92663, 730,000 monthly, $7.00 per word, Automotive

ROLLING STONE, 745 FIfth Ave.,New York, NY 10151. 940,000, 24 times a year, $15.35 per word, Music

ROTARIAN, THE, 1600 RIdge Ave.,Evanston, IL 60201, 488,000 monthly, $4.20 per word, Clubs-Civic & Fraternal

RUNNER'S WORLD,, 33 E. MIner St.,Emmaus, PA 18099, 300,000 monthly, $6.15 per word, Running

SELLING DIRECT, Communication Channels, Inc.,6255 Barfield Rd.,Atlanta, GA 30328, monthly, Opportunity & Sales

SHOOTING TIMES, P.O. Box 1790,, Peoria, IL 61656, 190,000 monthly, $1.14 per word, Outdoor Living & Sports

SKI, 380 Madison Ave.,New York, NY 10017, 400,000 8 times per year, $5.50 per word, Skiing

SKI AMERICA, P.O. Box 1140, Pittsfield, MA 02201, 350,000 4 times

per year, $2.75 per word, Skiing

SKIING, ONe Park Ave.,New York, NY 10016, 437,000 7 times per year, $6.50 per word, Skiing

SMALL PRESS, 520 Riverside Ave.,Westport, CT 06880, 7,500 bi-monthly, Information, Writing & Publishing

SNOWMOBILE, 11812 Wayzata Blvd.,Syute 101, Minnetonka, MN 55343, 400,000 4 times a year, $9.55 per word, Snpwmobiling

SOLIDER OF FORTUNE, P.O. Box 693, Boulder, CO 80306, 200,000 monthly, $2.40 per word, Mens Magazine

SOUTHERN LIVING, 820 Shades Creek Parkway, Birmingham, AL 35209, 2,212,000 monthly, $13.56 per word, Home & Shelter

SOUTHERN OUTDOORS, P.O. Box 17915, Montgomery, AL 36141, 200,000,

9 times per year, $4.50 per word, Outdoor Living & Sports

SPARE TIME, 5810 W Oklahoma Ave.,Milwaukee, WI 53219, 300,000, 9 times per year, $4.50 per word, Opportunity & Sales

SPORTS AFIELD, 250 W 55th St.,New York, NY 10019, 495,000 monthly, $3.65 per word, Outdoor Living & Sports

STAR, THE, 660 White Plains Rd.,Tarrytown, NY 10591, 3,600,000 weekly, $7.45 per word. Tabloids

STEREO REVIEW, 1515 Broadway, New York, NY 10036, 575,000 monthly, $7,10 per word, Music

SUCCESS, P.O. Box 570, Clearwater, FL 34617, 330,000 monthly,, $7.90, Opportunity & Sales

SUCCESSFUL OPPORTUNITIES, 6150 MIssion Gorge Rd.,Ste 225, San Diego, CA 92120,, 200,000 monthly, Opportunity & Sales

TIMELY TIPS, 721 N Williams S St.,Box 68, Paulding, OH 45879, 16,000 monthly, Opportunity & Sales

TOTAL FITNESS, 15115 S 76 East Ave.,Bixby, OK 74008, 128,000 bi-monthly, Health & Fitness

TOWERS CLUB USA, 1027 N 7th St.,Milwaukee, WI 53233, 78,000 monthly, Crafts & Hobbies

TREASURE HUNTERS NEWS, P.O. BOx 448, Fremoent, NE 68025, 25,000 bi-monthly, Mens Magazines

TURF FLASH, 511 Oakland Ave.,Baltimore, MD 21212, 15,000 weekly, Gambling

U.S. PRODUCTS AND OPPORTUNITY, P.O. Box 191, Houston, Pa 15352, Mail Order Advertising Magazine/Tabloids

VEGETARIAN TIMES,, 141 S. Oak Park Ave.,Oak Park, IL 60303, 57,000 monthly, $2.28 per word, Health & Fitness

VENTURE, 521 Fifth Ave.,New York, NY 10175, 310,000 monthly, $7.50 per word, Businesses

VFW MAGAZINE, 9 East 41st St.,New York, NY 10017, 1,770,000 monthly, $7.95 per word, Clubs-Civic & Fraternal

VIDEO, 460 W. 34th St.,New York, NY 10001, 305,000 monthly, $5.00

per word, Communications, Electronics, Video

WEALTH SECRETS, 6150 MIssion Gorge Rd.,Ste 225, San Diego, CA 92120, 150,000 10 x per year, $3.50 per word

WHOLE LIFE TIMES, 18 Shepard St.,Brighton, MA 02135, 30,000 8 times per year, $3.50 per word, New Age Metaphysical

WINNERS, 15115 S 7th Ave.,Bixby, OK 74008, Monthly, $2.50, Opportunity & Sales

WORKBENCH, 4251 Pennsylvania Ave.,Kansas City, MO 64111, 890,000 bi-monthly, $5.90, Mechanix, Science

WRITER, THE,, BOx 892,, Boston, MA 02117, 55,000 monthly, Information, Writing & Publishing

WRITERS DIGEST, 1507 Dana Ave.,Cincinnati, OH 45207, 180,000 monthly, $3.95 per word, Information, Writing & Publishing

YACHTING, CBS Publications, 1515 Broadwayt, New York, NY 10036, 150,000 monthly, $3.30 per word, Boating & Saling

CLASSIFIEDS, 100 East Ohio St.,Chicago, IL 60611, Telephone 312-337-3090

NATIONAL MAIL ORDER CLASSIFIED, P.O. Box 5, Sarsota, FL 34230, Telephone 813-366-3003

The above two companies represent hundreds of publications. You place ads through them at no additional cost. They also offer various combination packages (one ad appearing in several publications). Write to them or call and request free media package.

American Passage Media Corporation, 215 West Harrison, Seattle, WA 98119--206-282-8111 or 800-PASSAGE
if you have an offer that you think will appeal to college students or military personnel call American Passage and request their "College Newspaper Directory and Rate Book" and or "The Military Newspaper Directory and Rate Book". Directories are free.

MAIL ORDER BOOKKEEPING BASICS

by: Peter Schruender

Copyright 1990
Mascor Publishing
P.O. Box 8308
Silver Spring, MD 20910

INTRODUCTION

This information is provided for individuals who are starting a mail order business and require a basic bookkeeping system. It has been written for someone who has little or no bookkeeping background. No income tax or professional advice is rendered. Such advice should be obtained from a CPA or an Attorney.

The operation for any business requires a basic system to keep track of income expenses. There are two good reasons to keep good

records.

1. It is the law. The IRS, State Income Tax Division and State Sales Tax Division (where applicable) requires you to keep complete and accurate records.

2. Keeping good records is good business. It helps you to understand your business better. It will let you know at all times how your business is doing -- how much money you are making

or losing. In addition it enables you to analyze expenses and revenues. You can see how seasonal and other trends develop.. All

of this will he;p you to make sound business decisions.

BUSINESS CHECKING ACCOUNT

It is best to set-up a separate business checking account with your bank for your business. This account should be used only for

deposit of business related income and payment of business expenses. In this way you a maintain a distinction between business and personal expenses.

STATE SALES TAX

You are required by law in most states to collect the appropriate State Sales Tax. This only applies for sales within your state. Out of state purchasers are not charged a sales tax. Only the end-user pays sales tax. If you should be selling to a dealer he can provide you with a sales tax exemption certificate.. In this case he is not required to pay the sales tax to you since he will be collecting if from his customers.

STATE USE TAX

THe Use tax generally applies when a company buys supplies or equipment for its own use from an out of state business. It does not apply when material or merchandise are bought from an out of state company which will be re-sold. The use tax rate is the same

as the sales tax rate.

For specific information on regulations in your state call the nearest State Sales Tax Division in your area.

ACQUISITION OF EQUIPMENT

When acquiring office machines, such as typewriters, computers, copiers, furniture, etc. such expenditures are generally depreciated on your tax return over a period of time.. For specific information check with a qualified tax advisor.

EXPENSES RELATED TO A HOME OPERATED BUSINESS

If a business is operated from home in many instances a portion of rental, mortgage or other expense may be deductible when filing your income tax.. The same may apply to utility expenses. There are specific laws pertaining to this, and again you should get professional advice.

EXPLANATION OF FORMS

We have provided you with several forms. You can use them as they

are or change them to fit your particular needs.

1. DETAIL OF MONTHLY EXPENDITURE FORM

In the left hand column you keep track of expenditures for merchandise and products that you resell to your customers. The accounting term is generally cost of goods or product, or cost of

sales.. If you sell books by mail you would record your purchases

for these goods (including drop shipments) in this column.

The right hand column should be used to record all other expenditures. You obtain this information from your business checking account. If you pay for business expenses by cash keep track of theses expenditures separately and enter into this column also.. If you also use one or more credit cards to pay for

business expenses list these expenses here too.. It is best to designate a specific credit card to be used for business expenses

only.. Do not intermingle personal charges. In this case you may

be able to deduct the interest on your taxes.

2. INCOME AND EXPENDITURE FORM

Record your daily income in the left hand column. Since you may not have income on a daily basis in the beginning stages of your business you can record income less frequently, such as weekly or

even monthly.

You may wish to keep a separate income journal. The purpose of such a journal would be to give you a more detailed breakdown of your revenue. Set it up in any way you feel it will best suit your needs. For example you may want to record new business separately from repeat business. If you sell dealerships and books, for example, you may want to record the revenue from dealerships separately from the revenue for books, etc.

In fact the right column of this form you can keep track of your expenditures by category. Again you can change the categories to suit your particular needs.

When you deduct your expenses from your receipts at the end of the month you will have an income or loss figure for your business

PROFIT & LOSS STATEMENT FORM

Here you show you monthly revenue, expenses and profit loss. There are no requirements for you to do this on a monthly basis..

Especially in the beginning stages of your new business, you may want to generate a Profit & Loss Statement on a quarterly basis, semi-annual or even annual basis.

SUMMARY

The above information and forms will give you a basic system. Tailor it to fit your own situation. You may want something more elaborate or less detailed. Or you may not even put all your business accounting on your P.C.. If you are considering to acquire a software program to help you with your accounting I would strongly suggest you wait until you understand your business well. Also accounting software can be difficult to use for an individual without accounting background. A personal money management software system will generally be quite adequate

for most small businesses.

Don't get overwhelmed by record keeping for you new business especially if this is something new for you. Governmental agencies do not require you to keep your books in a particular way but do require you keep good records. This also means that records must be substantial. Again your accountant can give you detailed information on existing requirements.

While the big task of any new business is developing sales and acquiring customers, good record keeping is generally found in successful business operations. Your records provide you with accurate present and past information that you as the owner and president of your company must use constantly analyze your business so you will maximize profits.

PROFIT & LOSS STATEMENT

MONTH:_____________ YEAR TO DATE________

INCOME

Gross Sales: _____________ ______________

Less Returns: ______________ _______________

Less Bad Debt: ______________ _______________

Expenses

Mdse. -Materials _______________ _______________
Accounting _______________ _______________
Advertising _______________ _______________
Auto Expense _______________ _______________
Cred, Crd Comm _______________ _______________
Freight & Exp _______________ _______________
Graphic Design _______________ _______________
Insurance _______________ _______________
Interest _______________ _______________
Licenses _______________ _______________
Mailing Services _______________ _______________
Misc Expenses _______________ _______________
Office Expenses _______________ _______________
Office Machine _______________ _______________
Postage _______________ _______________
Printing _______________ _______________
Professional Fees _______________ _______________
Rent Allocation ________________ ________________
Support Services ________________ ________________
Telephone ________________ ________________
Trav/Entrtnmnt ________________ ________________
Util Allocation ________________ __________________

TOTAL EXPENSES _________________ __________________

INCOME BEFORE
CAPITAL EXPENSE
AND INCOME TAX: _________________ ___________________

MONTH OF

TOTAL RECEIPTS FROM BUSINESS

AY_____________________|______________ |AMOUNT____|_______ 1.______________________|____|____|______|__________|_______ 2_______________________| ___|____|______|__________|_______ CONTINUE UNTIL END OF MONTH

TOTAL THIS MONTH

TOTAL UP TO THIS MONTH

TOTAL TO DATE

19
EXPENDITURES

ACCOUNT TOTAL THIS MONTH TOTAL UP TO

TOTAL

TO DATE

DEDUCTIBLE
MDSE.MATEIALS______________________________________________ACCOUN T
ING________________________________________________ ADVERTISING________________________________________________ AUTO EXPENSE_______________________________________________

CREDIT CRD COMM____________________________________________ FERIGHT & EXP_______________________________________________ GRAPHIC DESIGNS____________________________________________ INSURANCE_________________________________________________ INTEREST___________________________________________________ LICENSES___________________________________________________ MAILING SERVICES____________________________________________ MISC EXP___________________________________________________ OFFICE EXP__________________________________________________ OFFICE MACHINES_____________________________________________ POSTAGE___________________________________________________ PRINTING___________________________________________________PROF FESS__________________________________________________ RENT ALLOC_________________________________________________ SUPPORT SER._______________________________________________ TELEPHONE__________________________________________________ TRAVEL ENTERTNMNT________________________________________ UTILITIES ALLOC_____________________________________________

TOTAL_____________________________________________________

MEMO

DETAIL OF MONTHLY EXPENDITURES

MDSE. AND MATERIALS
PAID BY CASH AND CHECK| |OTHER ESPENDITURES

DAY| TO WHOM PAID| CK NO| AMOUNT| |DAY| TO WHO PAID| CK NO| AMOUNT

CONTROLLING MAIL ORDER'S KEY EXPENSES

By

Peter Schruender
Copyright 1990

Mascor Publishing
P.O. BOx 8308
Silver Spring, MD 20907

At this time you may be starting a mail order business maybe you started a business some time ago... In either case this information is designed to make you aware of the critical expense

categories of our business

Business entrepreneurs generally channel most of their energies into building a customer base. We all know that without customers there will be noting else to worry about.. At the same time it is important to be very cost conscious right from the start. The mail order business requires very cost conscious management.

A mature mail order business has 6 major expense categories which

will make up about 85% to 90% of its total monthly cash outlay:

Cost of product
Advertising
Postage
Printing
Labor
Rent

The new mail order enterprise will however not be concerned with either labor cost or rent for office or warehouse space. Those expenses will come later as your business grows, However, the other 4 expense categories are critical from the start.

1. Cost of Product

These are the items you buy from your suppliers for resale to your customers. In the first two years of operation your cost of product will be higher than later when you can buy in larger quantities at better prices and when you have a good understanding of what sells. At the start it is important to know

that your cost of product should be kept at below 35%. That does not have to work out for each product but it should represent an average for all goods. You may for example elect to have some sales leaders which have minimal mark-ups but you feel that they will generate additional sales. Your mark-up may be as little as 10%. On the other hand, you will have items that have mark-ups of

10 or even 20 to 1.

In establishing your pricing you must be aware what your competition charges. It is best to be in line or slightly below your competition. Or you may choose to charge more than your competition because you give more or better service.. Do not succumb to greed. Newcomers to the mail order business sometimes commit this folly. Since volume of sales is ultimately more important than profit per item careful pricing is important.. If the cost of a book you are selling for $15.00 is $4 you may be better of to lower the selling price to $12.00 and increase your sales. As you know - since you are one of them - the American consumer is very sophisticated. Suckers are in very rare supply.

The dropship method is the only way to go for a beginner. This way you do not have to tie up any start-up capital for inventory.

You want to be sure you are dealing with a reliable company and therefore price will not be your only consideration. Make sure as

possible that your supplier is as responsive to a $4 order as to a $100 order. As soon as your volume increases start shipping and

you will be in a position to enclose your promotional material.

2. Advertising

This is a major expense for a new mail order company and in the early months of building your business it may be your highest expense. Essentially in our business there are only two ways to find new customers via advertising or via direct mail.. Al;though

many newcomers have a fascination with mailing lists they will soon learn that adverting is more effective and less expensive. Here is a hypothetical cost comparison for both approaches:

Direct Mail - 1000 pieces

Mailing list $40.00

Postage (bulk rate @ 0.16.7)                       167.00
1000 #10 envelopes                                     55.00
1000 return envelopes                                  50.00
Promotional material (est)                          120.00
Total excluding labor                                   432.00

Cost per unit $0.43

Response 1.5% == 15 orders
X avg sale $25.00 375.00
Cost of product 35% 130.00 Net

245.00
Loss for above mailing is <187.00>

Although the above is hypothetical, it must be understood that returns of higher than 1.5% are rare when using someone else's list. When using your own list, they may be substantially higher.

Therefore direct mail campaigns rarely work unless the average order is in excess of $45.00 or you profit per order is about 500%. Before you undertake a mailing you owe it to your pocketbook to calculate your expected return. Your aim should be to break even at a 1% rate. Our mailings are geared to break even

at 0.7%.

Advertising - 1 classified ad - 1 publication

Cost of classified

$120.00
Agency discount 15%

• 18.00 Net cost

102.00
Est # of inquiries -150- (1)
150 #10 envelopes

7.50
150 return envelopes

7.00
150 promotional pieces

18.00
Postage First Class @ 0.25

37.50
Total excluding labor

172.00

Cost per unit

1.14

Est response 8% = 12 orders
X avg sale $25.00 (2)

300.00
Cost of product 35%

-150.00
Net

195.00
Profit

23.00

1. Response for a well written classified ad in a monthly publication may vary between 60 to 250 depending on the publication and the season.

2. The national average for conversion from inquirer to buyer is between a low of 5% and a high of 12% depending on price and other factors.

In the advertising scenario, you have a good chance to make a little money right from the start. Many mail order companies are satisfied to break even. The initial effort in responding to the inquirer of your classified is only the start. Over the next 12 months you should be sending at least 3 more mailings to those inquirers who did not buy the first time.. And you should mail to

your buyers abut every 6 weeks to 3 months until they have not bought from you for about one year. Now if you had a crystal ball

or a very sophisticated way of tracking the progress of each of the above initial 150 inquiries of your classified ad and could take another look at the results a year later, you would most likely be very pleasantly surprised since the $23 has now grown to several hundred dollars.

The greatest assets of a mail order company are its mailing lists. In the beginning you will have zero names, a few months alter you may have a couple thousand, a year later 10,000 and gets out on a daily basis, the more orders will come in. The more

mail are several important ways you will save money in your advertising:

1. Select well known monthly publications which are ready by individuals interested in what you have to sell. Monthly publications will generate inquirers over many months since they are kept on hand and read by different people. Bi-monthly or weekly publications may be acceptable also. Stay away from Daily Newspapers. They have a shelf-life of a day or less. They should only be used for testing... And above all stay away from "cheapies" like ad sheets, shoppers papers, etc.

2. When evaluating the cost effectiveness of an ad it is not the cost of the ad that counts but the number of inquiries it generates. A very inexpensive $15 ad which generates 3 inquiries,

$5 per inquiry, is terribly expensive compared to a $150 ad which

generates 200 inquiries, 0.75 per inquiry.

3. To test an ad one insertion is enough. The results will either

be very good in which case you should buy 3 insertions the next time for a saving of about 10%, or the results will be average in

which case you may want to run another test, or they will be poor

which may be caused by any of the following reasons: Wrong publication, wrong heading, or ad, reader not interested in the particular offer.

4. Keep the cost per inquiry below $1.00

5. Write a tight ad. Each word including your address is counted.

6. By all means, set up your own In-House Advertising Agency. It is easy to do and will save you 1% right from the start.

3. Postage
Postage is a big expense for any mail order firm.. This cost covers three areas: Responding to initial inquiries, cost of shipping orders to customers (this will include carriers such as UPS) and the cost of repeat mailings to customers and previous inquiries.

The first category of responding to initial inquiries is most often handled via First Class Mail. If the cost of mailing a single piece exceeds 65 cents strong consideration to use Third Class Bulk Mail should be given. This is especially true if catalogs are mailed to prospective customers.

Repeat mailings to previous buyers and inquirers as well as mailings to a rented list should always be sent via Third Class Bulk Mail. The exception to this may be when mailing a piece which weights 1 oz or less. The cost for First Class postage is 25 cents compared to 16.7 cents via Third Class Bulk Mail.

Following is a broad overview of the usage of bulk mail. Your local POst Office will give you specific information. The major advantage of using bulk mail is the considerable savings. The major disadvantages are the time it takes for a piece to reach its destination and the reliability of delivery. Recent surveys have indicated that a sizeable percentage of bulk mail never reaches its destination. This appears to be especially prevalent with light weight pieces such as #10 envelopes.

Basic requirements to utilize the bulk mail rate are that a bulk mail permit has to be obtained. The annual cost is $60.. Anyone can obtain this permit.. Secondly, each mailing must have a minimum of 200 pieces and it must be sorted by zip code according

to Post Office regulations.

The rate for the first 3.37 oz is 16.7 cents. Weights in excess of that weight are calculated by the combined use of a per pound and per piece rate. Each piece in a mailing must have the identical weight.
If as an example your piece weights 3 plus ounces your rate to send it via First Class mail is 85 cents. This compares with 16.7

cents for bulk mail... If you were to send 1000 piece per month, First Class cost would be $850.00 versus $167.00 for Bulk rate. This is a very sizeable difference. Even if you lost a few potential customers, it would most likely still more profitable for you to use bulk mail.

Bulk mail will generally reach its destination in a radius of about 500 miles in about 7-10 days, 500-1500 miles, 10-15 days, over 1500 miles 15 to 25 days. Some mail order companies will use

a combination of bulk and first class. They may use bulk mail for

destinations of less than 1500 miles and first class for greater distances.

If you can not generate at least 200 pieces per week you may want

to consider to combine the responding to new inquiries with remaining the same piece to a previous inquiry.

The cost of getting the product to your customer is also quite expensive and needs to be carefully managed.. If you are utilizing the dropship services of a supplier you will not have any control over this expense.. It is advisable that you ship at least some of the orders yourself as soon as your volume makes this feasible.

The Post Office has given shippers of books and certain other bound written material a special rate category which makes substantial savings possible. Special 4th class mail costs 95 cents for the first ounce and 35 cents for each additional ounce.

Unless your customer pays you extra for first class or UPS service, this class of mail should be utilized. It will take a little longer in reaching its destination, but the savings are quite substantial.

UPS rates are generally less expensive in distances of up to about 1100 miles when compared with first class rates. Since UPS charges a basic weekly pick-up rate of $5.00 you may want to utilize the services of an outside company until your volume is large enough to justify daily UPS pick-up.

4. Printing

Printing is another major expense and, unlike postage, a certain percentage of your printing cost may be for material that will become obsolete before the supply is exhausted. This is especially true for beginning mail order operations. You may decide to discontinue promoting an item and find yourself stuck with several thousand useless circulars.

For the above reason it is wise in the beginning stages of your new business to print in small quantities until you know exactly what sells and how it should be promoted.. You may wish to make exceptions for certain items such as envelopes which have continued usage. Printing in small quantities will cost more per piece but it is better than throwing money into a trash can.

As your volume increases and you see fit to have larger volumes of given pieces printed, be very careful in selecting your printer.. In addition to price you will, of course, also be concerned with quality and service. Some printers will provide additional free services with a print job, such as typesetting.. Always obtain several bids when doing larger jobs.. For example, at this time (summer 1990) 1000 11 x 17 pieces (this is a 2 page foldover) imprinted on both sides will cost $130.00 in the Washington, DC area. The very same piece can be done by a printer

in a medium size midwestern city for a little as 435.00. This represents a difference of over 8 cents per single piece.

If you are doing business in one of the many high cost areas of the country or in Canada, by all means consider doing business with out of town printers. You will see many ads in mail order publications.. Some of the best prices can be found in some midwestern and southern states. Lower labor and operating costs make these prices possible. Before giving a larger job to an out of town printer test his quality with a small job.

The cost of creating camera ready art work through professional graphic designers is substantial. It is strongly recommended that

you utilize the free art work supplied by many suppliers until you are large enough to absorb this substantial expense or are able to produce it yourself through a desktop publishing software

program.

Learning how to think on a per unit basis is real important in our business. The cost of printing, mailing and other costs are generally quoted and calculated for 100 pieces.. But to evaluate the cost effectiveness of mailing or advertising, etc get used to

thinking in the per unit mode.

An acquaintance of ours who recently did mailing of 32,000 pieces

was able to make a small profit on his mailing which was of limited success by making tow changes: 1. He utilized an order form which was built into the piece rather than a separate order form -- saving 2.7 cents. 2. He used a #66 3/4 business return envelope instead of a #9 envelope -- saving 0.4 cents. The saving

was 3.1 cents per piece or $992.00 for the entire mailing.

GETTING STARTED IN THE MAIL ORDER BUSINESS - HOW MUCH DOES IT REALLY COST?

by:
Robert Drake

Copyright 1994
Mascor Publishing

Published 1994
by
MASCOR PUBLISHING CO.
Silver Spring, Maryland

INTRODUCTION

This report was written as a service to those individuals who are

considering to get started in the mail order business. To get any

business started successfully takes many ingredients. However all

requirements, more or less, fall into one of the following four key categories: 1. Desire, 2. Knowledge, 3. Time, and 4. Available funds

This report deals only with the financial requirements of starting a mail order business. Hopefully it will help the reader

to evaluate whether he is financially able to embark upon a business venture that will bring about success. It is generally true that it takes substantially less money to get started in many mail order businesses than in a variety of other businesses.

Many a promoter will want you to belive that it is possible to get started successfully for $50, $100, or even $200. However, it

is totally false. It does take more than that. How much more depends on many factors which I will try to define as much as is possible here.

Since the mail order business covers a vast number of services and products I would like to define the contents of this report to deal with the selling of information products. This is where my expertise lies. While the same or similar conditions may apply

to any number of other mail order businesses, there may however be some differences to selling information products such as books, etc.

The following makes a number of assumptions. The most important ones are:

1. The operator ( or operators) of the new mail order business is

employed or has other means of income.. He will not need to derive any profit from his new business for a period of time.. How long will depend on many factors.

2. This is a home based business which has no employees.

3. The business, at the start - until volume reaches $3,000 to $5,000 per month - will utilize the drop shipping services of a wholesale company.

4. Basic office equipment such as desk, file cabinet, typewriter or computer, etc... are on hand.

A WORD OF CAUTION AT THE START AND RESOURCE AVAILABLE TO YOU

THis is an exciting business and it can b extremely profitable once it reaches a certain momentum. However, like almost all businesses it is a very cost sensitive business. For a detailed analysis of the key mail order expenses and their impact on your business refer to my special report:

CONTROLLING YOU MAIL ORDER EXPENSES
A thorough discussion of mail order's 4 key expense areas - Product - Postage -Advertising - Printing

Order #4118-------------------------------------------------$5.00

As you are getting started in planning and setting up your new business which in my experience is one of the most enjoyable and satisfying experiences of a lifetime think and act with caution when it pertains to any expenditures. This is one of the most difficult things to do since you are probably very enthusiastic and want to do everything today. So you need to learn HOW TO CONTROL YOUR ENTHUSIASM or it is going to cost you lost of extra money.

In this state of enthusiasm we tend to think that there is nothing we can do wrong and since we will be making lots of money

in a few months lets get all necessary and often unnecessary supplies and equipment.. It would be much better to wait until profits of the business make it possible to acquire what is needed. In the meantime you can make do with less. To be able to do so is a most important quality for the owner of a small to do so is a most important quality for the owner of a small business.

If you are a parent think of your new business as a child. There

will be a never ending sequence of surprises. And as the business

grows so will its demands, and yes its expenses.

START-UP EXPENSES -- INITIAL STAGE

The below listed expenses will be incurred in the very early stages of setting up your business. This is at a time when you probably are not sure as yet what you will be selling.. You will be writing to different companies for information to come up with

the right product selection. Once you have decided what it is you

will be selling you have to line up reliable suppliers, This is also a good time to buy a few books t help you with your mail order education. Although most expenses incurred in this phase are relatively small they will add up quickly.

Stationery and
envelopes.........................................50.00 P.O. Box
rental........................................................... .
...60.00 per year

Miscellaneous office supplies...............................30.00
Postage..........................................................
.
..................50.00
Educational......................................................
.
...............45.00
TOTAL............................................................
.
..................235.00

START-UP EXPENSES -- SECONDARY STAGE

You have now reached the point at which you have decided upon one

or more reliable suppliers for the product you wish to market.. You may also be ready to have some promotional material printed. In addition you may be placing one or two classified ads for testing purposes.

Dealership or distributorship (1 or
more)........................................80.00 Small supply of brochures or
catalogs...............................................50.00 Printing of sales letter, order form, Return envelopes, etc.....90.00
1 test ad, classified (national
magazine)........................................100.00 Business or traders
license.......................................................... .

............30.00
Postage..........................................................
.
.....................................................25.00
TOTAL............................................................
.
.....................................................375.00

Until now you have only had expenses for your new business. You have not derived any revenue yet. In the next and final stage of starting your business you may have some revenues. Stage one and two may take from approximately 3 to 6 months.

START-UP EXPENSES -- THIRD STAGE

You have now reached a stage were you will expand your advertising, or alternately you may go the direct marketing route

and rent a mailing list. The comparison of expenses and revenue results of a direct marketing effort versus classified advertising need to be carefully evaluated. Refer to my special report:

#4118 How To Control Your Mail Order Expenses

This report compares the actual expenses of a specific mailing against an advertising effort.

Since expenses for a direct marketing effort are generally higher

than for a small advertising campaign, the below listed expenses focus on an advertising campaign,

Advertising -- 3 classified
ads.............................................................. .
.280.00
Postage for several hundred inquiries derived from adverting
effort........................................................... .
...........................75.00
Miscellaneous office
supplies......................................................... .

.............30.00
TOTAL............................................................
.
........................................................385.00

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List of Top 50 Mail Order Publications for Classified Ads

SUMMARY

The combined expenses as listed above total just under $1000. They are based on broad estimates and may vary somewhat by area of the country and individual circumstances. The figures are reflecting a minimum amount.. I have no question that some individuals may be able to cut expenses further. Since this planning period takes several months the expenses as shown above can be allocated over a period of 4-6 months.

The above figures represent a conservative start. For those who want to get started more aggressively expenses would be higher.. While many of the basic start-up costs would be the same the expenses that would increase would primarily deal with additional

advertising, printing and postage expenses. By how much would largely be an individual decision.

Since most new businesses fail because of lack of funds, it would

be advisable for an individual who does not have the necessary funds to get started to wait until he does. In addition to the basic start-up expenses an individual should also consider that most businesses will loose money for several months and sometimes

much longer than that. Unfortunately no matter how well you plan,

circumstances often change and we must make allowances for those eventualities.

POSTAL SAVINGS GUIDE

Published 1990 by
Mascor Publishing Co.
Silver Spring, Maryland

Any legitimate article of commerce may be sold through the U.S. mails upon truthful and honest representation - and the Post Office welcomes every legal enterprise to the use of the mails.

The purpose of this report is to provide you with practical information on more economical and efficient handling of your mail. With postage costs at an all time high, we belive you will find these suggestions on how to get more for your postage dollar

especially helpful. Today, it is more important than ever to establish good mailing practices, practices that will make a profitable difference in your postage handling, and speed up your

mail.

A WORKING KNOWLEDGE OF POSTAL LAWS AND REGULATIONS - By the very nature of the business, mail merchandising implies integrity. If a customer has to pay for something before having a chance to examine the article, his confidence is not to be abused. Selling by mail must be kept on a high plane of the dealer is to survive and prosper.

Lotteries, chain letters and schemes to injure or defraud are denied the mail privilege.. Nonmailable materials also include items not regarded as conductive to the public welfare, such as pornography. Excluded, too are materials (as inflammable liquids and chemicals) which could damage the mails or cause injury to postal employees.

Every one who is using the mails to conduct business should become familiar with the postal retirements which apply to his particular enterprise. It is not, however, necessary or advisable

for the beginner or small operator to attempt learning in detail all the ramifications of all the Postal Laws and Regulations. To the mail minded person, dealing with the post office is not anything new or strange. As a mail user in the past, whenever you

came across something on which you desired information, you simply inquired at the post office. As a small mail order dealer you will be doing the same thing.., and there will not be a great

range of questions that will concern you. If you are in doubt about anything relating to your situation,, inquire as to how the

matter should be handled. The Post Office will answer all your questions.

PENALTIES FOR USING THE MAILS TO DEFRAUD - A customer should make

a formal complaint in the case of misrepresentations and p[possible fraud with the Office of the Regional Chief Postal Inspector. There are 5 regions. The local Post Office will advise

what region is responsible got a given area of the country.

If complaints from different parties have been received, the postal, inspector can ascertain that the seller is at fault. However, the Post Office will give a mail order business the benefit of the doubt and the business is afforded the chance of settling complaints fairly with customers.

Where the intention is clearly to defraud, the case is followed through with a fraud order to be issued by the office of the Postmaster General. Letters are then returned to the senders, marked across the face of the envelope "Fraudulent".. It is not the intent of the POst Office, however, for its inspectors to act

as censors on transactions or adjusters of arguments.

In flagrant cases of fraud,, in addition to loss of mail use, a fine or imprisonment, or both, may be imposed. However, any honest individual who operates a mail-order enterprise as a business and not as racket need have no fear.

NEED FOR FAMILIARITY WITH CLASSES AND RATES OF MAIL - Since mailing costs are responsible for a major operating expense -- approximately one fourth of the total expenses of a small mail order business -- the mail-order business has to be able to figure how to get top efficiency for this major expense category.

A mail order business may, for example, save a great deal in the course of a year by knowing how pieces of sales literature can best be mailed and what the weight limitations are for specific postage charges. Among small dealers especially, there is much postage waste by failure to take into account minor details which

in the aggregate run to respectable sums. Suppose, as an illustration, a booklet or catalog ready to mail just barely exceeds the limit for one rate and calls for more postage. A minor adjustment in the place can decrease the postage from, for example 65 cents to 45 cents. A thousand pieces mailed per month makes a difference of $200 Dollars in lost profit.

Third-class mail, (also called bulk mail), may be used by anyone,

but it is used most often by larger mailers. Basic requirement to

mail by bulk mail are that the mailer obtains the proper permit,,

minimum number of pieces must be 200 per mailing and all pieces are sorted by zip code. At this time the rate for Basic Bulk Mail

is 0.16.7 for the first 3.37oz. Thereafter a combination of pound

and pieces rate are applied. Almost all mail order companies use bulk mail when a given piece exceeds 45 cents for first class postage. The savings are substantial. The big disadvantage is the

time it takes for delivery. This can vary greatly by region and time of the year. As a rule of thumb mail within a 500 mile range

may take from 1 to 2 weeks, 500 to 1500 miles 10 to 20 days and over 1500 miles from 2-4 weeks. Your local Post Office will give you all necessary bulk mail information and the proper application.

The Post Office issues a number of informative brochures which are free and give information on key postal matters. For a list of currently available publications write to:

Consumer Advocate
U.S. Postal Service
475 L'Enfant Plaza West, N.W.
Washington, DC 20260

Since many prospective small mail dealers are interested in the merchandising of books, it is important for them to know that books can be mailed by preferential rate not enjoyed ny any other

commodity. To take advantage of the reduced rates,, packages must

be plainly marked "Special Fourth Class Rate", Current special Fourth Class Rate are 90 cents for the first pound and, 30 cents for each additional pound.

KEEP YOUR BUSINESS ABOVE REPROACH - Considering the number of people using the mails and the tremendous volume of business transacted by mail, the Post Office levies relatively few penalties. However, no business of any size can be carried on without some complaints. A policy of "Money Back Guarantee" or "Satisfaction Guaranteed" goes a long way in convincing the Post Office as well as your customers that you are a trustworthy business.

PACKAGING AND ADDRESSING PARCELS AND PACKAGES - Proper packaging and addressing of packages is the best way to prevent damage and loss. Use a container strong enough to protect contents during handling.. Cushion the contents if necessary to make sure they do

not move within the container and affix the address information securely. Plastic packaging tape is recommended for closing and reinforcing the flaps and seams... Avoid using wrapping paper. The use of string could cause damage in processing. The address must be typed or legibly written one side only.. Use an address that's designed for efficient post office handling including proper zip code information - with the recipients address more prominent than your own.

USE STANDARD SIZE ENVELOPES - Save time and money. For best results envelopes should be at least a few inches longer then the

longest insert plus the combined total thickness of the inserts. When the inserts are thick and bulky, extra allowances should be made.

WATCH YOUR WEIGHT - A truly accurate mailing scale is a must for any mailer - large or small. Otherwise, you run the risk of underpayment of postage - and the irrirritation of mail being returned because of "postage Due". And of course, overpayment of

postage can cost you a great deal of money over a period of time,

so it is indeed important to have an accurate postage scale.

POSTAGE METER - If you send out much mail from your place of business, it might be practical to consider the convenience of metered mail. Some advantages are - Save trips to the post office. Eliminate the need for keeping loose stamps.. Stamp, seal

and postmark quickly. Avoid loss of stamps. Print "meter ads" simultaneously with the meter stamps. Accurate postage affixing.

Postage meter equipment generally consists of tow parts, an office mailing machine and a detachable postage meter, the later licensed for use by the United States Postal Service. Since postage meters print U.S. postage and account for government revenue under official lock and seal, they cannot be sold outright, as are mailing machines, but are leased from an authorized manufacturer who is held responsible to the U.S. Postal Service for their proper operation and replacement when necessary.

KEEP YOUR MAILING LIST CURRENT - Only a "live" list can produce good results - and many nixies on a list can be very costly. So be sure to keep your list constantly up to date. One way to keep your list clean is to print. "Address Correction Requested" on outgoing envelopes. The POst Office notes the reason for non-delivery, or the new address if known. The fee for address correction service is 30 cents per notice issued, for both Second

and Third class mail. Undeliverable first class mail is returned free of charge.

SPECIAL HANDLING -Special handling service is available for Third

and Fourth class mail only, including insured and certified mail... It provides for preferential handling in dispatch and transport, but does not provide faster delivery.

PRIORITY MAIL - First class and priority mail are one and the same... When first class mail exceeds 11 ounces it becomes priority mail.

WHAT TO DO WHEN YOU HAVE A POSTAL PROBLEM - When you have a problem with your mail service it is best to talk to one of the clerks at the Post Office. If necessary the clerk will refer you to someone else. It is best not to complain to management or file

an official complaint at your own Post Office. Be nice with the clerks and try to get known them. They are important partners in your mail order business.

THE BEGINNER'S MAIL ORDER BUSINESS GUIDE

By

Peter E. Schuender

Published 1990 by MASCOR Publishing Co. Copyright 100- by Mascor Publishing Co. P.O. Box 8308
Silver Spring, Md 20907

Note: This report is intended to relate personal experiences of a mail order operator in order to make helpful suggestions to individuals who are new to the field. No claim is made that the steps outlined would be successful for someone else. Each individual should obtain such professional advice as may be necessary for his particular operation.

INTRODUCTION

The following is designed to provide a check list for new entrants into the mail order field. Each mail order business is different, but there are common elements that apply to most mail order businesses, as well as some specific characteristics that may vary from business to business. The following suggestions were developed to assist you in avoiding mistakes which can be costly. Apply the various points as they may relate to your specific business.

COMPANY NAME

• Select a short, easily remembered name.

• Unless you are using your own name, it is required in most jurisdictions that a trade name is either registered with the county or the state.

• Before you spend money for printing material, make sure that the name you choose is not already registered to another company. You can usually conduct a name search with an office of the appropriate jurisdiction by telephone.

• You may consider using a name that describes your product.

COMPANY ADDRESS

• Most newly established mail order businesses will operate out of their home until the volume of the business requires larger space.

• Most mail order businesses prefer not to use their home address as their company address. If you do, you will advertise your home address in regional and national publications. You have two other choices, a Post Office Box (POB) or a postal box located in a commercial enterprise which rents out mail boxes.

• A POB is generally the least expensive, both to rent and for advertising purposes. (See below) Some mail order operators claim that it reduces business because people do not trust a POB address. Yet there are just as many mail order operators who prove them wrong. the decision is yours.

• If you rent a mail box in a commercial enterprise, (many have sprung up in recent years), your box number usually becomes a suite number in the address.

• Almost all publications will charge you a full word charge for each component of your address, except the Zip Code and State which is counted as one word, Example:

Information Books, 300 Main Street, Suite 611, Centerville, Md 20910 Or:

Information Books, Box 1000, Centerville, Md 20910.

• The first address is counted as 9 words, the second one as 6 words. Since advertising costs anywhere from 50 cents to $10.00 per word (classified advertising) you could save a substantial amount of money at the end of the year.

TELEPHONE

• Some mail order companies do not show their phone numbers on their stationery, others do. I believe it gives the customer some comfort to see a telephone number, although he may never use it.

• You can show your residence phone number in the appropriate printed material, or you can obtain a business listing for your home.

• The residence phone is fine, for starters, if it is answered in a professional manner at all times.

• If you plan to sell higher priced ticket items, however, (over $15.00) a business listing would be advantageous since a prospective customer may pick up the phone and check with the information operator whether "Company X" is listed.

BASIC SUPPLIES

• Be conservative and frugal in your acquisition of items that you feel are needed. It's always wise to start small, and as inexpensively as possible, and as you build profits, you can buy more and better items. * The basics are a good quality typewriter, (you can rent one for starters for a few months). Business stationery, business envelopes (#10's), and return envelopes, either #6 or #9 is fine. All items should have your business name and address imprinted on them. * You will also need some mailing labels and some miscellaneous office supplies.

PRODUCT

• If possible, choose a product or products that people need on an ongoing basis.

• Be sure the product is of acceptable quality. Know the product before you sell it.

• If feasible, choose an item that is not widely available from retailers.

• If you have a difficult time deciding what items or products to select, I suggest you read the following book: "How Mail Order fortunes are Made" by Alfred Stern. This book lists hundreds of different items. It will give you many good ideas.

• Develop a line of merchandise. It is rarely possible to make money with just one or two items. The availability of a line of related products is paramount to mail order success.

• The more specialized your products are, the easier your marketing becomes.

• If you are selling books, for example, it would be impossible, except for a very large company, to sell all types of books. You may decide to specialize in books pertaining

  to sports, and may want to go even further by zeroing in on football or baseball.

SUPPLIERS

• Your suppliers should provide you with reliable, quality, and reasonable pricing.

• Since you probably should provide some type of a money back guarantee (30 days is standard) you should expect the same guarantee from your suppliers.

• When buying from out of town suppliers, be sure to include the shipping charge in comparing prices to local suppliers.

DROP-SHIPMENTS

• Under a drop-ship agreement which is available from many suppliers for a variety of products, the supplier ships your customers' orders directly under your shipping label. (Suggested reading: "American-Drop-Shippers Directory".)

• It is customary that the supplier guarantees not to include any of his promotional materials with the shipment; or to use your customer's name for any future mailings.

• Drop-shipping arrangements are suitable for people getting started. It allows you not to have to carry a costly inventory.

• As your business increases and you develop a sense of what sells well, you can stock limited supplies of certain fast selling items, and continue utilizing drop-shipments for slower products. Eventually, as your business flourishes, you can carry an inventory of everything you sell.

• Handling your own shipments is advantageous for the following reasons: It cuts down your shipping expenses, it decreases the shipping time, and it allows you to include promotional material directly with the shipment.

• When you do utilize drop-shipments, be sure to send your customer a note that his order is being processed and he can expect it by, or around a certain date.

• It is unnecessary to make your customer aware of the fact that the item is being drop- shipped. Include some promotional material with your letter or note.

PRICING

• Buy at a price that allows you an adequate mark-up. In setting your prices, allow for all costs:

• Cost of product, shipping cost and postage, bank charges including credit card charges, wrapping, bad debts, rejects, refunds, etc. In addition, the other normal overhead costs need to be considered,. Lastly, there is the substantial marketing cost for advertising, and for printing of promotional items. (See following paragraphs)

• Your prices of course, have to be fair and in line with your competition.

• It is not necessary that you make a big profit on each and every item. the real profit in mail order comes from follow-up orders.

• THE 3 BIGGEST EXPENSE CATEGORIES IN MAIL ORDER ARE: ADVERTISING, PRINTING COST, AND POSTAGE. Over 80% of your total

  expenses are in this area. Watch these expenses very carefully.

ADVERTISING EXPENSE

• Start with classified ads. As you test them and know what is successful, you can switch to display ads.

• To test an offering and a specific ad, run it once in a specific publication and you should get a reading that could be very positive or very negative. It might also be inconclusive. If that is the case, simply run it again.

• It is best to test an ad by running it in different publications.

• Advertise in publications that advertise similar products.

• If you have a sure seller, buy larger space.

• Special interest products should be advertised in special interest publications.

• Keep on changing the ad and offering until you are satisfied it is right.

• Examples of changes you can make are: size of ad, copy, appeal, special gimmicks such as discounts, free gifts or reports, etc.

• Remember that a given ad can be 20 or 30 times more successful than another ad advertising the same product. it pays, therefore, to continue testing until it is just right.

• Repeat a successful ad until you no longer get a satisfactory return.

• The conventional advertising cost is 15% of sales or more in mail order.

• To evaluate your advertising cost, think in terms of cost per inquiry. this is calculated by dividing the number of inquiries into the cost of the ad. that cost may vary from about $$0.80 to $2.00 or more.

• Be careful when you allocate advertising funds to small mail order publications. The ad may appear to be very inexpensive. However, a $15.00 ad that gets no response is a lot more expensive than a $150.00 ad that gets over 100 inquiries.

• Stay away from those publications that have no news or editorial content, and also those that have poor printing quality.

• There are a number of quality mail order publications, but it takes time to find the right publication for your product. (See American-Drop-Shippers Directory.)

ADVERTISING COPY

• Write tight copy.

• Write as you speak. You are generally appealing to a mass market.

• Prepare your copy carefully. It must fit your specific medium.

• The emphasis should be on YOU rather than I, the company.

• Be sincere and don't make unreasonable claims, but remember that you are selling.

• Try to convince the reader that you are reliable and trustworthy.

• Give simple specific instruction.

• Key all ads to test their effectiveness.

• Check and double check, and have someone else check your ad to make sure everything is correct and easy to understand.

• Watch where your competitors are advertising.

• Experiment with new publications.

• It is generally considered impossible to sell something that costs more than $2.00 - $3.00 direct from either a classified ad or a small display ad. This is because there just is not enough space to convince someone to part with $10.00 or $20.00, for example. It takes a full page ad to do that.

• If you use an agency, use one that specializes in mail order, even if it is located out of town.

RESPONDING TO INQUIRIES

• Each inquiry you receive in response to an ad should be answered via First Class, if at all possible, within 24 hours.

• The contents of the envelope going to the prospective customer should contain: a circular, promotional flier, or mini-brochure, a sales letter, an order form (the order form can be part of the circular), a return envelope, and other appropriate information, such as a fact sheet, a free report, etc.

• In general, circulars should be limited to one 8 1/2 x 11 page.

• A sales letter, on the other hand, can be as long as it takes to say everything you need to say to a prospective customer in order to sell him the product.

• Sales letters should have an attention getting opening. The idea of the opening is to get him to read the rest of the letter.

POSTAGE AND SHIPPING COST

• Answer inquiries to your advertising immediately and via First Class Mail. Use Bulk Mail for future mailings.

• You can save a great deal of money by getting a Bulk Mail permit. The minimum number of pieces per mailing is 200. Mail must be zip sorted. Postage is 16.7 cents for up to 3.3 oz. Get more specific information from your Post Office.

• Keep your mailing lists clean - updated.

• Utilize all of the various mail classes, such as Printed Mail and Book rate.

• Compare costs of shippers other than the Post Office.

• Guarantee return postage.

• Watch your shipping weight. A fraction of an ounce can make a big difference in a large mailing.

PRINTING COST

• Very large printers will not be interested in your business. Very small ones, quick printers and instant printers although convenient, are generally too expensive. Their equipment is not large enough to be competitive.

• There are many medium sized printers that will give you good pricing and quality printing. Often they have the capability to help you with layout and design.

• Don't hesitate to use out of town printers. If you live in a high cost-of -living area, you can probably save a substantial amount of money. Many of these printers advertise in

  mail order publications.

• Utilize the promotional material available from your supplier.

• Until you know what sells, print small quantities, even if it is more expensive.

• Use colored paper for your promotional flyers to spice up your offer. Use white paper, blue or black ink for everything else.

CUSTOMER PAYMENTS, REFUNDS AND COMPLAINTS

• Accept cash, money orders and checks.

• Some mail order companies state in their material that they will not ship for 10 days to 2 weeks when payment is made with an out of town check. This may be an unwise practice because, it can create ill feelings with your customers. NSF checks are rare.

• An increasing number of mail order companies accept credit cards - Visa and MasterCard - for payment. It is generally felt that it does increase sales.

• If you cannot obtain a credit card merchant agreement with your bank work through a credit card clearing house. A number of these companies advertise in mail order publications. Since these companies generally charge between 6-9%, it may be wise to set a minimum amount such as $15.00 for credit card orders.

• Remember, "the customer" is always right. An argument won, is usually a customer lost.

• If you receive an order with an underpayment, ship the order and bill the customer for the difference.

• Make refunds on overpayments quickly.

• Most mail order companies offer a 30 day money back guarantee. Some offer 90 days and even more.

• It is unwise to offer money back guarantees on items priced very inexpensively, for example, a $3.00 report.

RECORD KEEPING

• As in any business, it is important to keep records.

• You need records to tell you what is going on in your business; to evaluate both your revenues and your expenses.

• It is also required by law that you keep certain records.

• Keep especially good records of your advertising expenses so you can evaluate your advertising on an ongoing basis.

MAILING LISTS

• It is recommended that you do no direct mailings, except to your own list of customers and inquirers, until you have thoroughly tested a specific product through advertising. * Stay away from inexpensive mailing lists, under $40.00 - $50.00 per 1000. * Avoid mailing lists whose owners make unrealistic claims. * Work with a list broker who wants to see your product before he will rent you a list. Lists are rented for one time use. * Lists from professional list brokers rent from $60.00 and up, per thousand names. * The general consensus is that you need to mail a minimum of 1000 names to get a fair reading. 5000 names would give you a more accurate test. * Buyer' names are better than names of inquiries. * The best mailing list is your own list of buyers. Second best is your own list of inquirers.

FOLLOW UP

• The most important factor in mail order is FOLLOW-UP Substantial profits can be generated from this segment, if it is properly handled.

• You can generate a lot of sales by including promotional material when filling orders for customers. Other orders are generated from mailings that are made to former customers, as well as individuals who inquired about an offer in the past.

• Send out regular mailings to your customers. At a minimum, four times per year. However, you can send out mailings as often as every 6 weeks or so, if you have a new product to offer.

• As you build your mailing lists and you send out regular mailings, your orders will start flowing in.

RESEARCH AND EDUCATION

• Whether you are new to this field or not, to stay on top, you must continue your education by reading books and reports on mail order and subscribing to mail order publication.

• Always be on the lookout for new products you can offer your customers.

• Study the advertising of your competitors. Request their material and study it.

• Study all mailings you receive.

• disregard the MLM schemes that you receive, chain letters, recipe clubs, etc. they are all the same, a big waste of money. Many of them are illegal.

• If you are new to mail order, study the attached information on various publications. Depending on your knowledge of the field, one or several of the books shown may be very useful and can help you to be more successful.

Continue to learn about mail order by reading, experimenting, and talking with other mail order operators. Have patience. Success will not come overnight. It takes time to build a successful business. Start slowly and expand your business from your profits.

Good Luck!

MAIL ORDER LAWS AND REGULATIONS
-An Overviewby
Peter Schruender
Copyright 1989 Mascor Publishing

No parts of this publication may be reproduced in any manner whatsoever
without written permission from the publisher.

INTRODUCTION

The intent of this report is to give the newcomer to the mail order business an overview of those laws and regulations that most affect the small mail order operator. The intent is not to give legal advice. Such advice should always be sought from an attorney. Only those laws and regulations that apply to the small operator most directly are covered. Advice is given from the perspective of an operator of a mail order business rather than from a legal perspective.

For those interested in an in-depth review of the laws which affect the mail order industry, it is recommended that you read the following book: The Direct Marketer's Legal Advisor, by Robert J. Bosch, McGraw Hill Book Company.

THE 30 DAY RULE

To protect the consumer the FTC has enacted the Mail Order Merchandise rule which is generally referred to as the 30 Day Rule. Many states have enacted similar laws. some of those laws have a more narrow definition than the federal law; the most notable is New York State.

The 30 Day Rule requires the seller to deliver the order within a 30 day period, unless otherwise stated in the sales literature. if the seller, for example, states in the order form that delivery takes 4 to 6 weeks, he has effectively insulated himself from the law. In a practical matter, however, he may have also affected his business in a negative way.

The 30 day period begins when an order arrives and has been properly paid for.

The 30 Day Rule is an easy regulation with which to comply. It should rarely take longer than 30 days to fill an order. If it does, the seller must notify the buyer of the delay and the reason for it.

Some mail order companies delay shipment of orders until checks rendered for payment have cleared. This should generally not take longer than 10 days. If the seller wishes to follow such a policy, he should so state in his literature. From the perspective of a mail order operator, I do not consider this to be a sound policy. NSF and ACCOUNT CLOSED checks are relatively rare and can be minimized with proper controls. If you practice such a policy, you may save a few dollars but in return you will make customers unhappy. I personally do not buy from companies that state in their literature that they hold checks for clearance. Most mail order companies experience very small bad debt ratios. It is recommended that you call the bank the check is drawn on to verify funds on larger amounts; as for example, on orders over $50.

Once the buyer has been notified that an order has been delayed, the seller is automatically granted an additional 30 day delay unless the customer advises the seller that the delay is not acceptable. If he does not reply to the notification, it constitutes legal acceptance of the delay. In general, and in most states, the seller may obtain a second 30 day delay as long as there is a good enough reason.

The New York law differs from the federal law in that it stipulates a maximum period of 65 days (including delays) for an order to be filled. Newcomers to the mail order field residing in New York State should obtain a copy of the New York regulations.

The 30 Day Rule does not pertain to credit card sales. Credit card charges should be processed when an order is filled. If a mail order credit card sale is cancelled, the seller must issue a credit against the account of the buyer within one billing cycle following receipt of the cancellation request.

UNORDERED MERCHANDISE

The federal law pertaining to unordered merchandise is simple. It strictly forbids this practice. Free samples, if so identified, are exempted.

MERCHANDISE SUBSTITUTION

Most states, including New York, as well as the federal law permit sellers to substitute merchandise of similar or superior quality. The law requires it, and it is also a good business practice, to advise the buyer when making a substitution that he may return the merchandise free of charge if he is not satisfied. Certain items, such as merchandise which has artistic value, cannot be substituted. In this regard, for example, a book on how to start a given business may be substituted by a similar book on the same subject, but a book of literature by a renown author may not be substituted.

RETURN OF MERCHANDISE

Unless the seller specifically states that he does not offer a moneyback guarantee or offers, for example, a 30 day money back guarantee, he is required to make a full refund for a period of 60 days if the material is returned in good condition.

My own experience with returned merchandise indicates that it is quite rare. Our company, as an example, receives no more than 1-2 returns for every 120-150 orders. If you are a seller of information products and you sell reports or other information which can be easily copied, you may wish to enact a policy stating that there is a no return policy for reports, etc.

The above laws are the only federal regulations pertaining to the sale of merchandise which are unique to the mail order industry.

HEADLINERS IN ADVERTISING AND SALES LITERATURE

A few words should be said about the proper usage of some of the most common headlines used in advertising. Again, for an in-depth review of laws pertaining to advertising, refer to the book as listed above.

The most common and most effective of these terms are: SALE, NEW and most of all FREE. FREE is a magic word in American advertising used by giant companies and small ones alike. By all means, these terms should be used since they do produce sales. and if the advertiser follows a simple rule of honesty in the usage of these and other advertising terms, he will stay out of trouble.

SALE

A sale is a reduction from the seller's own former selling price of a given article. The seller must have sold, not just offered the article, for a reasonable period of time. This simply means if a 50% discount is offered on a $10 book, the book at some previous time must have actually been sold at $10. If it just has a cover price of $10 but was always sold at $7, a $5 price is not a 50% discount.

FREE

Free means it is free. To reemphasize, the term is very successful and will generate sales. But if something is offered for free, it should be free. the value of the free item cannot be hidden in another part of the offer, such as charging more for the other items than you would normally charge.

NEW

Here is another straight-forward term. It should only be used when new items are advertised. A new book is one which came out in the last 6 months (maybe 12 months, and that would be stretching it) but definitely not 2 years.

HOW TO START YOUR OWN COMPANY

Once you have decided you want to go into business, you must set yourself up to get started. this is not al all difficult. You should have no concerns on this matter. It is easy and inexpensive to do. There are no unusual legal requirements to sell by mail.

There are generally three ways to structure a business entity. the sole proprietorship, the corporation, and a partnership. The sole proprietorship is the easiest, fastest and least expensive way to set yourself up. In most cases this would be the way to start out for a small business.

Corporations have tax benefits that can be more advantageous than a proprietorship, but they also have strict record keeping requirements. As a rule of thumb, a business should be incorporated if it has annual sales in excess of $250,000. It is against the law in most states to use the abbreviation inc. unless the business is incorporated. But you can use Co. Partnerships also have specific legal requirements. Forming a partnership is generally necessary when going into business with someone else. There are advantages and disadvantages in doing this. Besides sharing workloads and profits, the partners must get along well. It is almost always necessary to obtain legal counsel in order to set up a corporation or a partnership.

D.B.A. AND/OR BUSINESS LICENSE

In most cities or towns it is required that a business license be obtained. In addition, you generally need to register your business name if you are using a fictitious name If you are using your own name, it is not required. Call your local city or county clerk's office to obtain the necessary information.

A SUMMARY OF COPYRIGHT LAWS

For those interested in becoming self publishers either by creating their own work or using someone else's, here is a short summary of copyright law.

WHAT COPYRIGHT IS

Copyright is a form of protection provided by the laws of the United States (Title 17, U.S. Code) to the authors of "original works of authorship," including literary, dramatic musical, artistic, and certain other intellectual works. Under the copyright law, copyright protection (for printed works) pertains only to the words and their sequence; it does not pertain to any idea, process, system, etc., regardless of the form in which it is described. that is, you copyright the words contained in the copy, not the content. The copyright law generally gives the owner the exclusive right to do and authorize others to do the following: In the case of printed works, to reproduce the work in various forms such as copying, etc. It also gives the owner the right to display the copyrighted work publicly.

COPYRIGHT SECURED AUTOMATICALLY UPON CREATION

The way copyright protection is secured under the present law is frequently misunderstood. No publication or registration or other action in the copyright office is required to secure a copyright. there are, however, definite advantages in doing so since, in the case of a litigation, it is substantially easier to prove copyright if registration has taken place.

Under the present law, copyright is secured automatically when the work is created, and work is "created" when it is fixed in a copy for the first time.

REGISTRATION PROCEDURES

Registration procedures are simple. In general, to register a work three elements have to be sent to the Copyright Office in Washington, D.C. An application (proper for can be obtained from the Copyright Office), a $10 fee, and a non-returnable deposit of the work to be copyrighted. For more specific information, including a copy of the law, write to:

     Register of Copyrights
     Copyright Office
     Library of Congress'
     Washington, D.C.  20559

U.S. POSTAL LAWS

In general, it is against the postal regulations to utilize the U.S. mail service to transport hazardous materials, pornographic materials and chain letters involving money. For more specific information, write to:

     Consumer Advocate
     U.S. Postal Service
     475 L'Enfant Plaza West, WW
     Washington, D.C.  20260

You may also obtain a free copy of the Consumer's Resource Handbook. It is designed to help consumers resolve complaints about goods and services with local, federal and state agencies. Write to:

     Consumer Information Center
     Department 532
     Pueblo, Co  81009

Other free publications that may be of interest to you:

     "Selling by Mail" can be obtained from:
          Small Business Administration
          Washington,  D.C.  20416-1110

     "The Mail Order Rule" can be obtained from:
          Federal Trade Commission
          Publishing Office, #130
          6th and Pennsylvania Avenue
          Washington, D.C.  20580-0001

     A final thought:  In the conduct of your business, let

common sense and honesty be your guide.

HOW TO WRITE CLASSIFIED ADS THAT GET RESULTS NOW! by Peter Schruender
Copyright 1989 Mascor Publishing

SELLING DIRECTLY FROM A CLASSIFIED AD

Classified ads can be used to sell products directly from the ad. This, however, only works for items costing no more than approximately $5. The best use for classified ads is to utilize them in obtaining inquiries. This is called the two step approach. The first step is to get maximum inquiries from the classified ad, in the second step the promotional package is sent to the prospect and as many inquiries as possible are converted to buyers.

CLASSIFIED ADS FOR MAXIMUM INQUIRIES

Classified ads are substantially less expensive than small space ads, but by no means are they cheap. Most national publications catering to the mail order business charge from $3 to $8 per word. A well laid out ad should consist of about 20 words which includes the company name and address. It is important that you remind yourself that only the purpose is to get the prospect to take immediate action and write for more information.

Before you write the ad know exactly what it is you want to sell. You must know very specifically what you are going to accomplish through this ad. Once you have determined what you want to get across to the reader, write it out in one or more complete sentences. For example, you have the reproduction rights for several reports and want to market them. So the objective is: "I want to get the maximum number of responses to inquire about my self-publishing material which has excellent income potential and is easy to market, especially for a newcomer to the business."

This ad may read as follows:

TREMENDOUS PROFITS THROUGH SELF-PUBLISHING! Start part-time. Easy to do. Request free Special Report! XYZ Publishing/E, PO Box 1000, Frederick, MD 20908.

THE OPENING LINE

The first 3 or 4 words-- are critical. Since there are hundreds of classified ads in any given publication you must be able to get the reader who scans all, or some of them, to stop in his tracks when he gets to your ad and read your ad and then take action.

Open any publication and review the ads and you will see that many of those ads have absolutely no purpose. They are a total waste of money. But that is good for you since I am sure you will make a real effort to get your message across. Here are a couple of examples of useless ads:

Still Looking For A New Beginning? Write.......

What do they mean by that? How does any of that pertain tome and what am I supposed to make of that? Here is another one:

The Easiest Business On Earth. Valuable information mailed free.....

Do you think many people are going to write in for an ad like that. Especially not since there are hundreds of other ads in competition for the readers' time.

THE OBJECT IS TO GET THE READER TO TAKE ACTION - NOW!

In less that 25 words you have to create a message that will make a reader stop; give him a reason - benefits to him - why this is for him; tell him what to do - action; and provide the vital information. It is as simple and as complicated as that. Simple because you know what you want to accomplish, but complicated because it has to be done with so few words. I think you can see why it is virtually impossible to sell a $10 or $20 item from a classified ad. You just would not have enough space to tell a story compelling enough to convince someone to part with $10 or $20.

SELF-CENTERED ADVERTISING COPY IS INEFFECTIVE

With some practice you should have no problem getting lots of inquiries from your ads. Stay away from "Self-centered advertising copy", copy that speaks about you. How great you or your company are, or how great your product is.

The only thing the reader cares about is himself. What's in in for Number One! Nothing else.

SOME COST SAVING TIPS

Almost all weekly and monthly publication will charge for each word including your company name and address. Most daily newspapers have a per line rate. Since just the address can take up from 6-10 words here are some ways you can save money.

The following ad has 23 words.

TREMENDOUS PROFITS THROUGH SELF-PUBLISHING Start part-time. Easy to do.
XYZ Publishing Co.
Dept 12 P.O. Box 1000 Frederick, MD 20908

This ad has 21 words.

TREMENDOUS PROFITS THROUGH SELF-PUBLISHING Start part-time. Easy to do. Free details. XYZ Publishing/E (The E becomes the code instead of Dept 12 PO Box 1000
Frederick, MD 20908

Or this one which has 18 words

SELF-PUBLISHING, TREMENDOUS PROFITS!
Start part-time. Easy! Free report.
XYZ Publishing/E
PO Box 1000
Frederick, MD 20908

Some publications charge 2 words for the zip code and state, some only one. If you live in a city which consists of several words such as Palm Beach Gardens you are only charged for 1 word.

Evaluate the cost effectiveness of your ad by the cost per inquiry and not the cost of the ad. Example a $150 ad generates 170 inquiries $0.88 per word versus a $28 ad which generates 15 inquiries at a cost of $1.87 each.

WHEN THE INQUIRIES START ARRIVING

If you have written and placed an effective ad and the inquiries start rolling in, the most important job, or actually several jobs have to be done. They are as follows:

1. Your sales/promotional package must be ready before the first inquiry arrives and it must be answered promptly, preferably the same day but certainly within 48 hours. The longer you wait the more chances are that a competitor will win out over you. Although some people will wait for weeks before they make a decision, many will act within days.

2. The ad you are placing is just the beginning. The names which are generated from the ad must be used again and again in order for your total advertising effort to be effective in the long term.

3. A percentage of your inquiries from this first ad will become buyers. You need to send these buyers additional offers within several weeks after their first purchase and thereafter mail at least 3 times per year to them. You drop them from your list if they have not bought anything for about 8 - 12 months.

4. The inquiries that did not buy buy this time may still buy at a later time. You can send them the same material again, or a similar offer. It is advisable to send 2-3 more mailing to them.

Many mail order companies may only make a small profit or just break even when the actual sales results are measured against a single ad. But over the life of the customers which are converted from those inquiries and the subsequent purchases from the inquiries who were not converted from the initial ad many hundreds or thousands of additional dollars will be generated.

Wishing you success and many inquiries from your ads!

HOW TO SET UP AN IN-HOUSE ADVERTISING AGENCY

FUNCTION OF ADVERTISING AGENCIES

Most firms turn over the entire problem of advertising to advertising agencies. This practices generally costs the advertiser nothing because the agency receives a commission from the medium in which the advertisement appears. The medium returns to the agency 15 percent of the cost of space sold to the advertiser. With this return the agency can offer its clients other services in addition to placing advertisements, and still make a profit.

Agencies are often equipped to handle every phase of the Program. They may help with research, prepare the advertisements and select the media in which the ads are to be run, and they may also assist in other phases of marketing and even in -product development. However, the primary duty of an advertising agency is to suggest the best media in the best combinations for the advertiser.

YOUR "IN-HOUSE ADVERTISING AGENCY

Enclosed with this report is a starting supply of the "Ad Insertion Form" you will need to use in processing your advertising orders. Before proceeding further, please examine it carefully. It is mainstay, the primary piece of literature that will establish you as an Advertising Agency. You may wish to modify the form to suit your own needs.

An "In-House" agency simply means placing your ads yourself, instead of paying an outside agency the commission. You insert the ads, deduct the commission (usually 15%). However, YOU MUST USE THE PROPER FORM. An order placed under your ordinary business letterhead will not do. Also, it is a good idea to preface your masthead on your FORM with the words "Advertising Agency." For example, Smith's Advertising Agency instead of Smith & Company.

It is also recommended that you have a small quantity of business letterheads printed under your advertising agency designation. You will need these for your correspondence with publishers.

Many publishers stipulate on their rate cards "discount available to recognized agencies only." this is the reason you need the professional FORM - without it - most publications will not recognize you as an agency.

The three essentials in your operation of an "In-House" advertising agency- proper Form - advertising agency masthead - remittance with order.

Before placing ads, obtain current Rate Cards from the publications that interest you. A rate card will show - Display advertising rates. Classified advertising rates. Commissions and frequent discounts. Mechanical and production requirements. Insurance, closing and cancellation dates. Circulation information. Specifications for advertisements. Miscellaneous.

SOME THINGS YOU SHOULD KNOW

Advertisers and advertising agencies assume liability for all content of advertisements including text, representation and illustrations and also assume full liability for any claims against the publisher arising therefrom. Publishers will not assume responsibility for errors in key number and no allowances or deductions are given should such errors occur;;; or any error due to illegibly written copy. Publishers will not guarantee proofs for correction if copy is not received by closing dates. Cash with order unless credit has been established.

Most publishers reserve the right to revise all copy to conform with their standard or to decline advertisements which request any advertiser to submit his literature and/or merchandise before accepting an ad. Advertisers using a post office box number must furnish a complete name and address for recordkeeping.

Generally, rates are subject to change without notice except on contracts which have been accepted and acknowledged by the publisher. Proofs are not submitted on classified ads but correct insertion of your advertisement will, in most cases,be guaranteed.

Original art must be mounted and camera ready. If two or more colors are to be used, they should be attached to black art on an overlay with register markings denoting trim, bleeds, etc.

Advertisements which stimulate editorial content must be clearly defined and labeled "Advertisement."

California law requires all mail order advertising for companies in that state to carry a legal address.

WHERE TO FIND PUBLICATION ADDRESSES ALONG WITH ADVERTISING RATES AND REQUIREMENTS

These are the books professional advertising agencies depend onin locating publication addresses along with advertising rates and requirements. Because these references are all rather large and expensive (over $100.00 each retail), it is suggested you inquire at your local library for copies. While they cannot be taken out, many libraries today provide a reprographic machine that can quickly copy pages you need from the books. Ask about it.

"BUSINESS PUBLICATIONS RATES & DATA" - Over 4,00 business, trade and technical publications, contains editorial profiles, rates, mechanical requirements, copy regulations, circulation, personnel, issue and closing dates.

"CONSUMER MAGAZINE & FARM PUBLICATION RATES & DATA" - More than 1,500 consumer and 200 farm publishers. Includes editorial profiles, ad rates,mechanical requirements, copy regulations, circulation, personnel, issue and closing dates.

"NEWSPAPER RATES &DATA" 1,600, U.S. daily newspapers, newspaper groups, supplements and comic section. Includes ad rates, special features contract and copy regulations, mechanical requirements and latest circulation figures.

"CO-OP SOURCE DIRECTORY" - Over 2,800 co-op advertising programs. Each includes eligible media, timing, accrual, participation, ad specifications, media requirements, aids available from manufacturers, reimbursement method and more.

"COMMUNITY PUBLICATION RATES & DATA" - All NAAP members, plus other weekly newspapers and shopping guides. Includes personnel, ad rates, closing time, circulation and mechanical requirements.

All these books are published by - Standard Rate and Data Service, Inc.,5201 Old Orchard Road, Skokie, IL 60077. They will be glad to send you descriptive literature and price lists under your letterhead request.

"CATHOLIC PRESS DIRECTORY" - A wide variety of American Catholic magazines with a total circulation of over 30 million. Your client's product or service advertising programs can find a highly responsive audience among American Catholic magazine readers. It's available from Catholic Press Association, Suite 401, 119 North Park Avenue, Rockville Centre, NY 11570.

AS LONG AS YOU HAVE AN "IN-HOUSE" AGENCY" WHY NOT PLACE ADVERTISEMENTS FOR OTHERS AND POCKET THE COMMISSION?

There's a lot of money to be made through placing small ads for small mail order firms- and it's the perfect repeat business. The one thing all have in common is that they must renew advertising to stay in business. The requirements are simple and initial investment is minimal. It's strictly a service business - no stock to carry, low overhead.

For a good idea of how to go about setting up your operation, write to the below small mail order Advertising Agencies, and request copies of their Advertising Guide Books. These you can use for reference in preparing your own ad rates brochure.

Chicago Advertising Agency Columbia Advertising Agency

28 E Jackson Blvd.                               P.O. Box 1285
Chicago, IL 60604                                Richmond, IN

47375

National Mail Order Classified Morlock Advertising Agency
Post Office Box 5 188 W Randolph St.
Sarasota, FL 33578 Chicago, IL 60601

HOW TO MEASURE PROGRESS

The growth of an advertising agency business can be measured in various ways but the most important item that concerns you is the growth in capital. How much more is the business worth today than it was a year ago or when you first started it? The capital section of the balance sheet will show precisely that. It will help you decide whether the work and worry connected with the business have been worthwhile. It will let you know whether the business is stagnant or is declining. It will disclose the soundness of your financial position. Especially in a small business there is always a danger of "eating into" capital. If you take out of the business from month to month whatever money is considered necessary as operating expenses, you do not know at any time whether you really have earned that money. A comparison of capital figures in the balance sheet over a period of months will show up any tendency to dissipate the agency's capital.

The total of assets is also an indication of what progress you have been making. It represents the total amount of resources under your control and even though they are partly offset by liabilities they are still a pretty good measure of your economic power. For this reason, the size of banks, for instance, is usually measured in terms of their total resources, that is, their assets, rather than their capital alone.

FOUR BASIC STEPS FOR EFFECTIVE ADVERTISING

1. THE WORDING OF YOUR AD is the most important single factor. It's what you say that determines whether your ads work or not. It pays to give a great deal of time, thought and research to the actual wording of the ad. Should the ad have a lot of wording in it, or should it be extremely short? The decision as to the type of wording is the key to more sales. Headlines must have dynamic stopping power. The headlines has to get the reader to look at your ad. Sub-headlines are also important, especially where copy is long. Not only must your headlines have powerful appeals, but the body text should have punch to maintain interest and induce prompt action.

2. SELECT THE RIGHT PUBLICATION or publications to run your ads. The publication in which you run your ad is the market place. When your ads appear in the right publication, you protect your advertising investment. Find out whether mass, class, service or other types of publications are best for your proposition. Should you use large circulation publications or small circulation ones? Should they be aimed at consumer, dealer or particular trade, or a combination of all? Decide whether you will use newspapers, magazines, or trade papers. Where you run your ad is many times the answer to results.

3. BUDGET YOUR ADVERTISING BY MONTH. By deciding how much money you will spend each month for advertising, you make sure that you do no spend too little or too much in proportion to the sales desired and the potential sales obtainable. The correct budget for advertising has a bearing on your profits. It is always wise to divide your budget for advertising according to the periods of the year.

4. DEVELOP A PLAN OF REPEAT BUSINESS from either inquiries or orders received. It is important to get new customers as cheaply as possible and then build them up. Know where you're going and what your sales objectives are. Think out the plan behind the advertising. Decide what a new customer should cost you and how to develop that customer into one who will buy from you again and again.

LEGAL ASPECTS

Effective advertising must be based on a sound product. Misrepresentation may sell goods, but it also builds ill will. Since the advertiser who misrepresents his product harms not only the public but the whole industry as well, organized efforts have been made to prevent objectionable advertising. One of these was the model statute against fraud in advertising drafted in 1911 by the magazine Printer's Ink. The statue has since been enacted by 48 states, in either the original or a modified form,,, and covers 98 percent of the population of the United States.

Further government control over advertising was achieved by the Federal Trade Commission Act (1914), as amended by the Wheeler-Lea and other acts. These gave the Federal Trade Commission, among others (e.g.,the Postal Service), the power to prosecute for unfair methods of competition and unfair or deceptive acts and practices, including false advertising.

Another protection for the consumer is the Audit Bureau of Circulations; its function is to determine the net paid circulation of newspapers and magazines. Practically all major magazines and newspapers which accept advertising submit audited accounts to the A.B.C.