Running a mail order business from the comfort of one's
home is the dream of millions of people. Running a business
through the mail appeals to people who are sick of their day
jobs, want more independence in their lives, and who want to
make large sums of money easily. Wouldn't it be nice if you
could go to your mailbox everyday and find is stuffed with
money and checks from all over the world?
It's possible, but be cautioned: mail order is definitely a
risky business! For one thing, this is a realm that is
definitely loaded with sharks ... that is, there are a lot of
mail order rip-off artists out there who are always trying to
get you to try their system, plan, method, or whatever. They
always promise "huge sales! enormous profits! $10,000 per
month easy!" and that sort of thing.
Well, just about all of it is false - but you knew that,
right?
If you are going to get started in mail order, you should
ignore all the wild claims that are everywhere, and stick to a
simple marketing strategy based on buying wholesale,
advertising and selling at a profit. You can choose just about
any product imaginable, from books and cigars, to turtle eggs
and leach farms. Just make sure you sell your products at a
profit, and that you make enough to cover your advertising and
other expenses.
Starting a mail order business does not have to be a
complex task. You choose a product, place classified or small
display ads in national magazines, and wait for people to call
in with their orders. Once the order has been received and
payment has been made, you ship the product and take the money
to the bank. That's it in a nutshell.
There is also another way to sell other than buying ads.
You can purchase mailing lists, which contain the the names
and addresses of potential customers. You can buy lists from a
number of places. There are list brokers, and you can also
purchase lists directly from many magazine publishers, who
derive names from their subscriptions lists. Once you have a
list in hand, you will need sales materials, usually in the
form of a sales letter, brochure, or something similar, to
send to people. Your sales letter is what makes the pitch to
the potential client. If the pitch is good enough, you will
make good sales. If your pitch is not so good ... well, you'll
be licking some pretty tough financial wounds.
While all this sounds easy, it is not quite as
cut-and-dried as it seems. First of all, advertising is
expensive. Even a tiny classified ad of less than 20 words can
cost from $100 to $200, depending on where you place it. And
no matter how large the circulation and how good the response,
you will most likely need more than one classified ad to
really get your business off the ground. In fact, you may need
at least 10 ads, but 20 to 50 are much better. Anything less
simply will not produce the response rate and cash flow you
will need to make your operation viable. That means an upfront
investment of about $1,000 in ads alone will be required.
On the other hand, it is true that just one classified ad
can make you rich - but that is rare! Don't be fooled into
thinking that one ad in one newspaper will make all your
dreams come true. The odds of winning a jackpot in Las Vegas
is probably more likely.
Instead of relying on "pie in the sky" claims and methods,
go about your mail order business in a small and practical
way. First of all, you should not only choose a good product,
but also carefully match that product with a market that will
be interested in it. If you try to sell rock CDs at a senior
citizen's center will you have many sales? Not likely. But
this is precisely the mistake that many mail order wannabe's
make. They choose just any product and buy any ad in any paper
and expect everything to match up perfectly. If you are
selling high-tech gadgets, advertise in magazines
that targets the gadget oriented crowd.
The same goes for mailing lists. You should specify to a
list broker exactly the kind of customer you are seeking -
customers that have a high probability of being interested in
your product.
There are many other things to consider in the mail order
business. Who will be your wholesale supplier? How do you find
good products to sell? How do you write a classified as that
really pulls? Should you pay a professional copywriter to
produce your ads and your sales copy? How do you test market
an ad or product? Why do you need to test market? How do you
handle sales taxes? What are the postal and government
regulations, and how do you stay out of trouble?
As you can see, mail order is much more complex than is
apparent from the outset. We tell you this not to discourage
you, but to save you from being lured into the lair of the
rip-off artists, who will tell you that making money in mail
order is as easy as watching TV or reading a book. It isn't.
On the other hand, running a mail order business is an
excellent and rewarding way to be self employed, if you do it
the right way. Before you buy your first ad or choose your
first product, do a lot of homework. Get yourself down to the
library or local bookstore where you'll find dozens of good
books on the subject of mail order. Once you start reading,
you'll be hooked - and nothing makes for success like true
enthusiasm for what you are doing.
Copyright 2004 by DeAnna Spencer.
Are you content with your advertising budget?
Schedule a coaching session with Frugal Solutions Expert,
DeAnna Spencer.
She will design an affordable online advertising plan for you.
Contact her by sending an email to deanna.spencer(at)gmail.com
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