15 mini internet business

Mini Internet
Businesses That Can
Earn You $2,000 or
More Per Week
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Agora Learning Institute
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Copyright © 2005 by ALI, LLC
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Published by:
CHAPTER 1: Some Basics about Web Businesses .........................................1
CHAPTER 2: Choosing a Viable Product ..........................................................5
CHAPTER 3: Launching Your Internet Business Online ...............................13
CHAPTER 4: Other Ways to Market Products with No Investments ............17
CHAPTER 5: Obtaining E-mail Addresses from Your Web Site ....................21
CHAPTER 6: Building Trust and Traffic by Supplying Information ..............23
INTERNET BUSINESS IDEAS ..........................................................................37
Body Flattening .............................................................................................37
Selling Books ................................................................................................41
E-Mail Publishing ..........................................................................................47
Fishing Supplies ...........................................................................................55
Jogging Supplies ..........................................................................................61
New Age Products ........................................................................................67
Pets ................................................................................................................75
Audio Products .............................................................................................83
Self Improvement Courses ..........................................................................89
Home Health Tests ........................................................................................93
Real Estate ....................................................................................................97
Tools ............................................................................................................103
Photography Equipment ............................................................................111
Videos ................................................................................................................... 119
Cosmetics ....................................................................................................123
TABLE OF CONTENTS

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Did you know that millions of people are earning six figure incomes from the Internet?
Maybe you’re thinking, “Well that’s great, but I’m not a computer genius and I don’t
have a lot of money to hire one.”
Well, guess what? That doesn’t matter because you don’t have to be a technical whiz and
you can start with under $99! If you can type and know how to log onto the Internet and
go to a web site, you have all the necessary technical skills. And, I’ll show you how to get
going with under $99 in start-up capital.
Learn step-by-step how to start your own Internet business, using that same computer
that’s probably serving only to send e-mails or book a reservation.
What’s even more exciting is that many of the available businesses are “automated,” so
your business can make money for you twenty-four hours a day every day of the year.
What if I’m Employed Full Time and
Can’t Quit My Current Job?
You can start all of the businesses that you’ll learn about part-time from your own home.
Now, as your Internet business grows and your income begins to match, or more likely
exceed your income from your “day job,” you may very well decide to take the plunge into
the world of owning your own business full time.
The other huge benefit of operating an Internet based business from your home is that if
you don’t like driving to work in rush hour traffic, you won’t have to anymore.
CHAPTER 1
Some Basics About Web Businesses
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Or perhaps you have children or other family members that you’d like to be home for?
Well, you can enjoy the best of both worlds. You’ll create your own destiny by operating
your own business and do it from the comfort of your own home!
The techniques that you’ll learn have made many people very wealthy. You will discover
the tightly held secrets that previously were only available to those with many thousands
of dollars to pay a herd of the sharpest business and marketing consultants.
You’ll benefit from all of these treasured secrets without having to spend thousands of
dollars.
You’ll learn how to start many different kinds of Internet businesses that will generate a
nice flow of income of $1000 or more per month. Next, you’ll learn how to automate these
processes so that you can earn this income without lifting a finger, as it grows to as much as
$2500 per month or more!
This will allow you to start other different businesses. Then, as you compile a set of
businesses, the cumulative income will start adding up to an amount that easily could go
north of $100,000 annually in a relatively short period of time.
How Is It Possible to Earn So Much Money
Without Any Capital?
Most people want you to believe that it “takes money to make money.” I’m sure you’ve
heard that before. Maybe in the past that was the case, but the Internet has leveled the
playing field.
The reason is quite simple. You no longer need to spend a hundred thousand dollars or
more if you want to open a store, because you can throw up your shingle without taking
the traditional “brick and mortar” route.
Think about how many times you’ve seen a new store or restaurant open up, only to
see that within a relatively short period of time, it has shut its doors. Now, think about
the crushed entrepreneur who must have lost his whole nest egg. It’s horrific. Every day
people take second mortgages on their homes or borrow against pension plans, only to lose
it all.
An Internet business is great because for under $99, you can throw up your shingle.
And, probably even more exciting, your “on-line” business will be comparable to a million
dollar company’s web site. That’s the power of Internet commerce.
The playing field has been leveled.
You certainly could start many businesses that aren’t online businesses that can make
you rich, but online businesses have very distinct advantages that make a strong case for
choosing the online business route.
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Here are a few:
• Unbelievably low start-up costs that can be under $99.
• The ability to get your business up and running as quickly in less than one day.
• Much lower marketing and advertising costs that increase profit and minimize risk.
• Automation options that allow your business to operate without constant human
management, allowing you more time to focus on other areas, such as business
growth rather than mundane management duties.
• Much lower personnel costs because without a brick and mortar store to run,
you will need fewer employees, which will help keep profit margins high and
management problems to a minimum.
• Your Potential market will be much larger, allowing for virtually unlimited profit
growth because your customers easily can come from anywhere in the country or
even the world.
• Excellent market research available to help gain you even larger profits because it is
possible to precisely track consumer behavior when visiting your site(s). And since
online marketing provides instantaneous feedback, you can hone your marketing
effort much faster than any kind of media.
Clearly, when you look at these extraordinary features of an online business and the
amazing speed of generating very large profits, it’s not hard to realize that an online
business might be your best option.
Avoiding the Pitfalls
Despite all of the wonderful things that an online business can do for you, there are
obstacles that you’ll need to avoid or overcome.
Surprisingly, despite all of the wonderful features of an online business, the truth is that
according to most expert estimates, well over 90% of online businesses are not profitable.
Avoiding expensive webmasters who want you to spend a great deal of money on
building your web site is one of the first things to do. How much money am I talking
about?
There are many webpage creation companies that charge in the range of $5000 to $10,000
dollars to create a web site that, in fact, is not very complicated and can be created for a
great deal less. There are several options for getting your web site built that will cost you a
lot less:
Learn to build it yourself:
One of the great things about the Internet today is the proliferation of software products
that make building a web site easy enough for almost anybody to do.
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With the Mini Site Creator Program you will learn how to create your own real moneymaking
mini-sites. This system will show you that you don’t need to pay a webmaster
outrageous fees or buy expensive software to make money on the internet. This program
shows the nuts and bolts mechanics of how to do it on the web.
Ways to Make Big Money on the Internet
This course will focus on the best strategies for making a fortune on the Internet and
then it will provide you with all the insider knowledge for each strategy.
Actually, each strategy has dozens of smaller ingenious techniques that you can employ
to further build your profits. Now, in and of themselves, none of theses strategies will be an
earth shattering revelation.
But as they say, the devil is in the details. Sure, anyone can say, “hey make your own
web site and reap in a fortune.” But do you have any idea how many thousands, if not
millions, of web sites lose money?
Or how you can make money with e-mail? And, no, I’m not talking about spamming. In
fact, I strongly suggest that you don’t SPAM. But, there are other much more ingenious and
reputable ways to make a fortune in E-mail.
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The Secret to Starting a Successful Online Business
This course will provide you with a detailed breakdown of different proven online
businesses that you could start. For each business you’ll be given a general overview, some
of the marketing factors, insider secrets, and real life suppliers and vendors. Even if one of
these ideas isn’t right for you, it will provide an excellent blueprint to use when you plan
your own online business.
One of the key mistakes that many hopeful entrepreneurs make when they begin an
online business is trying to sell a product that they feel has mass appeal.
There are several reasons why this is a huge mistake:
1. You’ll be competing with major retailers or other companies who have a couple of
major advantages
2. An already established brand name and consumer trust
3. A large scale distribution system that allows for the lowest possible costs, reflected in
prices to consumers that you probably can’t compete with
4. You’ll be competing with many more competitors than if you choose something that
is not a mainstream product
5. The market is already saturated so the only way to achieve sales growth is carving
away at strong competitor’s customer base rather than increasing cycle of demand to
cause growth
CHAPTER 2
Choosing a Viable Product
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Niche Markets Offer Fertile Ground for the
Microbusiness Entrepreneur
For all of the above reasons, I strongly recommend that you target a niche market,
instead of going after a wide mainstream market. In other words, you’ll offer a specialized
product or service that is not widely available in retail or other traditional outlets.
When doing this, make sure that you have properly identified and located whom this
online marketing target is and where you will locate them.
Knowing whom your marketing target is and where to locate them is critical in avoiding
costly failed marketing efforts. You do not have the resources to try to let everyone on the
Internet know about your product or service.
If you try a very broad and poorly targeted marketing effort, chances are:
• It will cost a lot of money.
• Many people who receive your message won’t be interested in your products or
services.
• You might actually agitate people who receive your message, but don’t have the
slightest interest in your products or services.
• You will lose a lot of money.
Many mistaken entrepreneurs think that if they offer a product or service that “covers all
the bases,” then they will have the greatest amount of sales. But in fact, the opposite is true.
If you try to be all things to all people, many people won’t understand precisely what
you’re marketing and others mistakenly will think that your product or service isn’t what
they need.
So, for example, you will be much better off if you published an e-mail financial
newsletter on investing, focused on a specific area like “How to Get Rich with Penny Stocks
with Under $1000,” rather than “How to Get Rich in Investments Such as Real Estate,
Stocks, Bonds, Stock Options, and Commodities.”
Where the Focus of Your Product or
Service Design Should Be
The principles that we’re discussing here really apply to any type of business; but to give
you the greatest likelihood of building your own successful Internet business, make sure
that you follow these rules.
If you already have a product or service in mind or if you are trying to think of such a
product, your line of reasoning will be the same:
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You must determine what problem your product will satisfy. For example, one successful
entrepreneur created a manual for men on how to successfully meet women.
What is the problem for men who might want to purchase this manual?
Quite obviously they are not having much success finding a suitable mate.
What solution will the product provide?
It will teach men secrets that they were unaware of that will make them more
effective at meeting women, so then they will be able to meet a suitable mate.
What is the Unique Selling Position?
Some very shrewd marketing wizards coined this term and it definitely will apply
to you.
You determine what elements your product or service has that are different from what
every Tom, Dick, or Harry is selling down the Internet Highway. It could be a number of
things and even, a combination of them.
For example, in the case of the entrepreneur selling his “How to Meet Women” manual
he explains, “I differentiated my course from others by emphasizing that my course was
based on applying the natural laws of genetics as opposed to the ‘hypnosis or subliminal
hype’ of most competitors.”
What you really want to do is consider how you are going to “brand” your business.
Branding
Creating your brand is the process of creating a consistent image and message that you
present to your prospects and clients. Branding incorporates the entire experience. Your
brand becomes the emotion, message, or image that a person immediately associates with
your company.
Branding is immensely helpful for several reasons:
1. It helps with the never-ending self-promotion that we just mentioned. Having a
consistent tone and feel, and a consistent message means you’re always prepared.
Your brand becomes a wonderful habit in all of your client and prospect interactions.
It will give you more confidence and will also build your prospects’ and clients’
confidence in you. And it will smooth those interactions, so that what you want to
come through will come through.
2. Branding builds reputation. Clients and prospects more easily remember you when
you’ve taken the time to brand yourself. They associate you with outstanding results,
or attention to deadlines, or as a personable working partner. If they value that, then
they will think of you first when making project decisions or referrals.
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3. Branding adds professionalism. A branded, independent professional is a polished
professional. You’ll come across as together, organized, and prepared. A wellthought-
out brand silently overcomes many objections.
So What Goes into Creating a Brand?
When your business name, the look and feel of your materials, your USP (Unique Selling
Proposition) and the tone of your delivery all work together to create a consistent image;
you are on the way to branding yourself.
When you successfully brand yourself, the minds of your clients and prospects will
draw an immediate association between you and with your marketing materials and core
message.
The key to branding is consistency. If your USP (unique selling position) is writing copy
at a reasonable price and with quick turnaround, then “Elegant Copy Solutions” won’t
suit your business concept. But “Copy on a Dime” might. If you are a personal coach,
specializing in helping individuals achieve personal goals; a name like “Your Dreams
Delivered” will probably work better than “Sarah Smith, Personal Coach.”
You also must consider the appearance of your marketing materials and any other
materials associated with your business. Will a flashy style suit your business concept
better or will subdued professionalism on high-quality paper stock make your statement
better? And think about your tone. When you deliver your message, do you want to be
conversational and personable, or would expert detachment work better?
Of course, these are just a few examples of different ways to go when creating your
brand. The one definite goal you should have for your brand is that it uniquely suits you.
To help you discover your brand, we’ve included a branding checklist. It gives you several
questions to consider for building your own successful brand.
Branding Check List
• Define the vision of your brand. (Think about what you want to accomplish for
your clients with your services.)
• Define your company values. (Think about your beliefs about service, pricing,
details, and commitment. Think about the promises you want to make to your
clients.)
• Determine what you want to improve. (Think about aspects of your services and
company that could be better. How will they fit with your brand?)
• Determine what most satisfies you about your company and services. (How will
these aspects work into your brand?)
• Define the emotional response to your company that you want your prospects to
experience. (How will the features and benefits of your services and company serve
to create that response?)
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• Define the emotional reasons why customers might buy your services.
• Define the rational and emotional personality characteristics of your brand. (Are
you fun to work with, serious, and professional … how can you make these traits
work for you?)
• Determine how to give your brands personality characteristics and life.
• Determine how you will use your brand personality to attract and retain more
customers.
• Establish how you will deliver on the promise of your brand.
• Establish how you will use your brand to generate more trust in your brandcustomer
relationship.
• Define your competition and determine the strength your brand’s position against
it. Also determine how to improve the positioning of your brand.
• Pick a well-known personality that your brand would represent well. (such as
Wesley Snipes, Queen Elizabeth, or Madonna). Use your knowledge about that
celebrity personality to further refine your brand.
• Examine your brand for consistency.
Branding checklist from www.brandingasia.com/columns/temporal8.htm
Branding Resources
The Internet has a wealth of resources about branding, including these two popular web
sites:
Allaboutbranding.com: The site examines “all issues related to branding” to help
marketers in “proactive brand management” and features up-to-date articles, books and
links to resources about branding.
Brandchannel.com: Calling itself “The world’s only online exchange about branding.”
This site has a wealth of features, articles, books, and even a section on debates on branding
issues.
Once you’ve decided how to differentiate your business from competitors, next
determine what prices you will charge:
What and How to Charge for Your
Services and Products
Setting fees for products and services can be a challenge. You want to charge enough to
make a profit, but not so much that your fees force prospects to turn to other, less expensive
businesses in your same field.
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In some cases, industry standards and expectations determine your fees. In other cases,
such as service-based industries like consulting; there are fewer restrictions or standards
about how to set your fees.
Consequently, fees for different projects or services can widely vary. For instance,
copywriting fees for a direct mail package range from $750 to an amazing $25,000!
Consulting fees can range from $75 per hour to $5000 for a full day.
To complicate things a bit further; you can charge by the hour, by the project, or by the
package, depending on your industry. It’s a good idea to have rates set for all the different
arrangements that are likely to occur … hourly rates, package rates, and, or both, project
rates.
Why? Because some clients ask for an hourly rate or request small jobs that only take a
few hours to complete, while others prefer a package deal or project rate.
Service-based “products” are not like interchangeable widgets. Often what’s for
sale is quite simply you and your team. The “product” is the brain, heart, skills, ability,
personality, and experience that will become the trademark of your business.
In fact, entrepreneurs make money by finding outlets where their special qualities meet
needs for which others are willing to pay. Factors affecting pay range include product
complexity (the technology and medical industries pay more for professional services than
general industries).
How much you charge depends on four factors:
• Your status — whether you are a beginner or an old pro, and how good you are.
• The going rate for the services you provide (i.e. what is your target market willing
to pay for the services that you offer?)
• What your competitors charge.
Status, the first factor, says that experienced businesses generally can command higher
fees than start-ups. But in most industries, talent is even more important. In other words,
clients put more value on a new business known to produce high-quality work than an
older well-established business that produces mediocre work. Still, new businesses usually
set their fees at the low end of the scale until they become established. Then slowly, they
raise their fees.
By talking with a few prospective clients, you can get a handle on the second factor
— the going rate. You’ll quickly get a sense of the upper and lower limits for the types of
projects you will be doing or services you will be offering. When selling products, the going
rate will be a significant factor in how much you can charge.
The third factor to consider is the competition. By doing a little research on the Internet,
you can find sample rates.
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Resist the temptation to factor in your own financial needs when setting your price.
From a customer standpoint, the name of the game is value … not how many bills you
have piled up at home. Ideally, you should negotiate each project as if you didn’t need or
want the work. But when you’re hungry and just starting out, that isn’t always possible or
even wise.
No matter what fee you settle on, set your fee at a respectable range for your industry.
Setting it too low is just as bad as setting it too high — people will believe that your
services are inferior. And you’ll attract business that otherwise you would want to avoid.
In addition to these four factors, there are five other ways to charge for your services:
• Hourly and daily. This is expected for short-term projects.
• Fixed fee. A partial payment up front is expected for most fixed fee projects. This is
one form of a retainer. Another form is a monthly or annual retainer fee. This fee is
usually paid on a monthly basis, according to a contract.
• Contingency fee. Your fee is a percentage of the money made resulting from your
help. Or the client will pay you after you complete the work.
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There are many savvy competitors out there, so you’ll need a top notch marketing mix
that includes:
• A strong product or service which solves a real and specific problem
• An effective web site presence
• Strong sales copy and layout
• Easy to use online purchasing system
Okay, so let’s first start with our product or service. The first order of business is to
actually choose whether you will want to sell a product or a service.
Let’s examine some of the pluses and minuses of both options:
Pluses for Products:
• The sale of products allows you to make virtually an unlimited amount of money. If
anything; when your volume increases, your profit margins will also likely increase
due to high volume efficiencies.
• It is often easier to market a tangible product, as opposed to the intangible nature of
services.
• If the product is something that initially you can manufacture, start-up costs will
generally be much lower.
CHAPTER 3
Launching Your Internet
Business Online
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Minuses for Products:
• If the product is not something that you can manufacture; you will have higher
start-up costs, because a supplier usually requires buying a minimum quantity.
• For most products except high end-high profit margin products, you will need a
high volume of product sales in order to earn a decent living.
Pluses for Services:
• Services often offer more immediate and quicker profits.
• There is no need to invest in any inventory.
• The profit margin, in terms of gross revenues less expenses, is generally very high.
• Services usually are priced at rates high enough to provide for a livable income
level without having to generate large quantities of sales.
Minuses for Services:
The amount of these services that you can render will limit your income, unless you
retain employees who can do the service. But good service employees are difficult to find
and they come with a whole set of personnel management challenges.
• The range of services that can be offered over the computer is limited to intellectual
services.
Information is One of the Best Products
to Sell Over the Internet
Selling information has always been one of the direct marketers’ primary products to
generate sales. However, before the age of the Internet, the bulk of these sales came from
either direct mail or recently, through television direct response promotions.
The problem for an entrepreneur with little capital is that expanding to a meaningful
level of sales volume requires a considerable amount of capital.
Fortunately for all of us, the Internet has changed that. Today, millions of individuals
worldwide actively seek out informational products on the Internet on an almost limitless
number of subjects.
And, these millions of potential customers do their shopping 7 days a week, 24 hours a
day, 365 days a year.
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Let’s look at some of the favorable traits for marketing informational products on the
Internet:
• Very little capital required for many types of information products
• Easy to create automated product fulfillment, using available downloading
technologies for both text and video
• Very large profit margins because the product is the information itself, rather than
the materials
Let me give you an example of the powerful potential of marketing informational
products on the Internet:
Think about it. In today’s “high tech” society, everyone wants something instantly.
That’s how marketers take advantage of what’s called “impulse buying.”
Can you imagine how much sales at retail stores would decrease, if customers who
wanted to buy impulse products, like magazines and candy sold at the register, had to wait
four to six weeks to purchase them?
Obviously, most customers would change their minds. But, if they can pick up that
candy bar, tear it open, and eat it immediately; they will buy.
But, there’s one other amazing benefit to providing automated instant product
delivery!
It will drive your fulfillment costs way down. Why? Because you won’t have to deliver
any physical product. You won’t have any of these expenses:
• Warehousing
• Printing
• Packing
• Shipping
• Inventory Management
But there will be even another big benefit. When people purchase from you online to
receive their product electronically, they will use a credit card or check payment that will be
immediately processed.
Other Products Besides Information Can Still Be Sold
Successfully on the Internet
If you’re now thinking that your great idea for a physical product won’t work because of
the benefits I’ve pointed out about selling information, please don’t despair.
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There certainly is room for the sale of many physical products that can’t be delivered
electronically, including everything like tools, car parts, electronics, and so forth.
And, certainly millions of entrepreneurs successfully sell these products. Still, even
if you sell a physical product that requires physical delivery, the more automation you
provide for the transaction, the better.
Obviously, if someone is in the market for tools, they know that they must wait for
delivery. But you can still offer:
• Automated Payment
• A promise of fast and, or both, free delivery (possibly even an overnight delivery
option)
• Instant Delivery of Premiums, such as Free Articles or Booklets to immediately
download while the customer awaits the arrival of the physical product
Whether you choose to sell informational products, delivered through automated web
systems, or a physical product that must be shipped; do everything to make it as easy as
possible for your customer to make the purchase on “impulse.”
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Unquestionably it’s very difficult to master all areas of management necessary to
successfully operate a business.
Each area takes quite a bit of work and knowledge. For example, you might become an
expert in Internet marketing, but you don’t really have an interest in the day-to-day hassles
of managing inventory and shipping.
For someone like that, there is a perfect alternative:
Drop Shipping Allows You to Use Your Marketing Skills
Without Fulfillment Headaches
Quite simply, in drop shipping you arrange with a supplier of products that they will
handle the inventory and the shipping when you actually make the sale to the customer.
Advantages to drop shipping include:
• There is no need to invest initial capital into inventory.
• If a product line proves unsuccessful, you’re not stuck with idle, unsellable
inventory.
• You avoid all the work and expense of shipping and handling activities.
• You can instantly add new product lines to your company’s offerings.
CHAPTER 4
Other Ways to Market Products
with No Investments
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How to Choose Your Drop Shipper
In order to maximize your profits, naturally you’ll want to keep your product costs to a
minimum.
Cut out as many “middle men” as possible is the best way to do that. For example, you
could find a web site with products that you would like to sell, but the seller is already
drop shipping.
So, your best bet is dealing directly with the manufacturer whenever possible. Once,
you’ve located manufacturers of the products you’d like to market, contact them to see if
you can arrange drop shipments.
You’ll find that some manufacturers are already set up to do this and they will
accommodate you very easily. And others who aren’t currently drop shipping might agree
to it.
Naturally, some manufacturers simply don’t want to drop ship. Most likely, these kinds
of manufacturers are the larger ones.
The reason is that their business models simply don’t allow for profitability when selling
in such small quantities. If you encounter this kind of manufacturer, go to the next best
source if you’re determined that you want to sell this product line.
If the Manufacturer Won’t Drop Ship
Maybe Its Distributor Will
If the manufacturer is large, quite likely it uses distributors. Distributors are simply
businesses that buy large quantities from the manufacturer and then sell the products in
small quantities to retailers who can’t buy such a large quantity at once.
To easily find your manufacturer’s distributors, just ask them. They already have their
distribution relationships in place and will be more than happy for you to buy from one of
their distributors.
Information You Will Need When You Call
to Inquire about Drop Shipping
When you call either manufactures or distributors, remember that you are calling a
business. Whether or not you are a brand new business, you want to make the impression
that you are a real business to whom they can sell a lot of their product.
To make this kind of impression, make sure:
• Your business has a legal name and form of business (corporation, LLC,
proprietorship, and so forth.)
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• You have a contact phone number, a fax phone number, and a physical billing
address.
• You have a Bank and, if possible, credit references.
• You have a Tax ID number.
Once you have all of the basic information about your company, you obtain the
information you’ll need to know about their company. For example:
How much will it cost you to buy the products wholesale from them?
Naturally, you need to know that the products have a sufficient discount so you can sell
them at a competitive price and still make a satisfactory profit.
What are the requirements for paying for the products?
Usually you’ll have a credit card on file with them, so they can bill it immediately. But
some companies may require a cash payment or be willing to extend you credit and bill
you after they ship the product out.
How will your customers receive their orders?
You need to know how the supplier will ship to your customer. Most often, it’s with a
large shipper such as UPS or Fed Ex; but you need to know this, so you can handle any
inquiries from your customer and give them an intelligent reply.
How are product returns handled?
You need to know if a product is defective, will the manufacturer offer a warranty or are
you responsible for making good with the customer.
What kind of sales supplies do they provide?
Some companies already have slick, well-prepared sales literature that you can plug
in your company information to give to your prospects. This is a big advantage since
normally these companies have gone to a great deal of trouble and expense to create these
sales tools. You can reap the benefits of them without investing labor and precious capital.
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One of the most important things to do is ensure that you can capture an e-mail address
for each prospective customer that comes to your web site.
The reality is that no matter how strong your sales copy, a large number of people will
not buy at that moment, but still might purchase in the future.
The problem is that when someone is surfing on the Internet, going from one link to
another and returning to listings in search engines, they easily can forget your company or
even how to find you again.
Entice the Prospect to Provide You with
Their E-mail Address:
If you can get prospects to leave their e-mail addresses, you always can follow up with
more e-mail promotions to generate future sales, even if they bought nothing that day.
Sure, if you just ask them to leave their e-mail address, a certain number of prospects
will.
If you offer to include them in some future newsletter that will provide valuable tips,
you’ll probably improve your response over just asking for an e-mail address. But if you
want to maximize your percent of visitors who leave their e-mail addresses,
CHAPTER 5
Obtaining E-mail Addresses
from Your Web Site
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Give Web Visitors Instant Gratification
You can offer a free e-book that they can immediately download, if they register on your
site.
A free e-book doesn’t actually have to be a whole book. The book could be one
informative article. Now the prospects really have a good reason to register their e-mail
with you, which gives you a way to contact them with free e-mail promotions in the future.
Of course, the registration form will include their e-mail address and any other
information that you think is relevant to your business. Once the prospects complete the
registration, they have access to the free e-book.
But an E-book Is More Than Just a Way to
Obtain An E-mail Address
Think about this. Since you’re taking the trouble to give prospects this e-book filled with
valuable information to get their e-mail address, shouldn’t you also get a chance to throw
some more promotional offers at them?
Of course, you should. Within your e-book, you can have many different items, such as:
• Basic Sales Letters
• Catalogs
• Special Promotional Offers
• Links to URLs for Your Offerings
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If you just have a web site that makes a promotional offer, it is clear to prospects that you
are most interested in making a profit.
Even though nothing is inherently wrong with that, people still have a “knee jerk”
reaction to anyone they suspect is blatantly seeking to make a profit from them.
This is particularly true about the Internet where everyone has heard about all those
“Internet scams.”
Making Your Web Site a Valuable Online Resource
If your web site offers prospects valuable information for free with “no strings attached,”
you will have a clear advantage over other competitors who just are selling their products
or services.
For example, a screenwriting web site that offers services related to screenwriting for
aspiring screenwriters, includes pages with free information about the screenwriting
business like:
• Tips for a beginner wanting to break into the business
• Technical tips on the craftsmanship of writing a screenplay
• Marketing tips for submitting screenplays to producers
• Links to other valuable nonprofit sources like the Writer’s Guild of America
Building Trust and Traffic by
Supplying Information
CHAPTER 6
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By providing all of this free information, I am building trust with the prospect. They feel
that I am someone who helps them for free.
In other words, I’ve established a relationship with them. And, everyone knows that
people like to buy from people they know. They simply feel more comfortable with them.
Another major advantage to including a great deal of valuable information that covers a
broad spectrum of the industry related to your products or services is that prospects tend to
frequently return to garner more information or verify something that they already learned.
Each time that prospect returns, your offering will again tempt them. In fact, they also
may refer others to your web site because of its valuable free information.
Multiple Ways to Profit from Having a Web Site
That Offers Lots of Valuable Free Information
About Your Industry
The genius behind operating this kind of web site is that it instantly creates
opportunities for new profit centers!
Naturally, you will still have your original profit center of selling your products or
services that you started when you created the web site, but now you will also have two
new potential profit centers to create new revenues from:
1) Earning Referral Fees from Recommending Other Products or Services
If you were selling one specific type of product, then why wouldn’t you happily refer
your prospects to other quality vendors for their related needs that you don’t handle?
In fact, some free information on your web site for prospects may very well include this
kind of information. Needless to say, these other vendors will very much appreciate you for
recommending them.
It’s quite likely that many will gladly pay you a commission or referral fee for assisting
them in generating new business. And for you, it’s just easy new profits; because in your
quest to provide your customers with free information, you’re already doing the service of
referring them.
The only difference is that now you’ll be getting paid to do it.
2) You Can Sell Advertising on Your Web Site
Again, here is another profit center for you that became available as a simple by-product
of something that you’re already doing to drive the sales for your own products or services.
If your web site becomes a known source of information for prospects that are interested
in buying goods or services in your industry, then it’s quite likely that your web site will
have a large number of visitors.
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To other businesses who sell products or services in your industry, but who aren’t direct
competitors, buying advertising on your web site could be very attractive.
For example, the primary service offered from my screenwriting web site is scriptwriting
consultation services. So, another natural business that would have an interest in buying
advertising on the site is a service that offers sending bulk e-mailing campaigns to movie
producers for screenwriters.
Or another example is if you have a web site that markets videotapes that teach exercise
or muscle building techniques; a business that manufactures exercise equipment might be
very interested in advertising on your site.
Only your imagination limits the types of prospective advertisers for your web site. And
again, the great thing is that your web site will attract the traffic whether or not you sell
advertising on it. The only question is if you want to expand your profits with very little
extra effort.
You Don’t Even Have to Sell the Advertising!
That’s what is even more terrific about this kind of income. You won’t have to do any
work, because media brokers sell this kind of space. And since they do it on a commission,
you won’t have to risk any of your capital.
Here are three of the bigger agencies that will sell space on your web site:
http://www.doubleclick.net
http://www.realmedia.com
http://burstmedia.com
Setting Them up to Buy
You want to take your prospects on your web page through a logical process that
culminates into a buying decision, just like a direct mail letter would take them.
For example, the entrepreneur that set up his web site to sell a manual to teach men how
to meet women divides his site into the following categories:
• A little bit about myself
• How I learned these secrets
• Why these secrets work
• How to buy
A link to the next logical step is at the bottom of each section, providing control over the
buyers’ intake of your selling presentation.
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Have a Strong Lead
A headline is essentially the big idea that captures the readers attention and makes
that reader want to continue on much like a newspaper headline, its designed to hook the
reader’s interest.
Your headline needs a large title that conveys how you will solve their problem and is
interesting. For example, this is a good headline:
How You Can Make $100,000 a Year in
Real Estate in 30 Days with No Capital
Let’s examine a few of the reasons this is a good headline.
First of all, it instantly makes it clear how this web site can benefit the visitor. It also
gives a specific dollar amount that can be earned. It’s been proven repeatedly that your
results will be much higher using a specific dollar figure, over let’s say, “a fortune.”
It also adds a sense of urgency by making the visitor think about how in just 30 days
from now they could make a good living in real estate. And finally, it’s interesting because
the fact that you can do it with no capital sounds very intriguing.
Next, it’s always a great idea to have a captivating picture in the body of the copy. In
our example, perhaps a picture of you standing in front of the mansion that you own. Or if
you’re marketing a product, then use an interesting picture of the product.
Just like in the copy of a professional copywriting letter, you want the text to be an “easy
read.” Don’t have long paragraphs with small print. And, directly under that headline,
quickly lay out some of the benefits of your product. Remember, people are interested in
benefits … what this will do for me … not what it has.
Create links for the person wanting to read all of the details, and at the same time, you’ll
avoid scaring off the visitors who land on the site and are only one mouse click away from
leaving your site.
Also, include support for your claims. Use objective facts and credible sources such as
testimonials. For example, in our real estate web site scenario, find a government statistic
quote like: “There is a new real estate millionaire created every 30 minutes,” says the U.S.
Chamber of Commerce.
And then follow that with four testimonial quotes from satisfied customers who used
your course and made a lot of money. The use of testimonials simply can’t be overstated
for whatever business you’re in! Ask for a testimonial every time you have a satisfied
customer. If you start a new business, give away your product or service to some friends
or relatives and request their testimonials to start you off until you can get some from your
paying customers.
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Toward the end of your copy, very clearly state your guarantee. And almost without
exception, you should have a guarantee. As long as you’re offering a legitimate product or
service, you won’t have too many returns. The security that a guarantee will bring you in
additional sales always will exceed any losses from the few deadbeats who regularly take
advantage of guarantees to get free stuff.
Finally, ask for the order and steer them to a link to your order page. It’s also a very good
idea to have order page links all over the web site. You never know when the prospect
decides to buy and is ready to do it. So, don’t make them wade through all of the web
pages before they can buy. They may get burned out and then change their mind. Have
Order Page links on every page!
Here are some more basic rules to help make your web site profitable:
Make Your Web site Easy to Navigate
If your prospect finds it difficult to move through your web site, they likely will become
impatient and leave without making a purchase or even leaving their e-mail address.
The best way to make your web site user friendly is to put links — either on the side,
the top or bottom — on your main page and on every sub-pages to all the other pages, so a
person can just click and easily move to a certain page.
Don’t Send Your Customers Away
Here’s one that seems obvious, but many webmasters make this mistake. As discussed
in previous chapters; it is a good idea to have a great deal of valuable information on your
web page, because it keeps prospects coming back and makes you seem like a trusted
authority.
Another great service you can do for your prospects is provide them with links to related
sites that aren’t your direct competitors.
But, and it’s a big one…don’t put the links on your main or sales page!
If you do this, it is very likely that your prospect will get an inkling of curiosity and click
onto another site without buying, never to return.
Don’t Get Too Carried Away with Colored Text and Backgrounds and Wild Graphics
It’s good to use some colored text to emphasize points, but don’t go crazy with your
artistic desires. Make the page easy to read and not distracting.
The same holds true for cool graphics. A dancing bunny on your site might look neat;
but unless it really helps the cause of making a sale, leave it out.
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Add a Shopping Cart If You Offer a Lot of Products
A shopping cart function makes it easier for your customer to keep track of their
purchases.
Make Buying on Your Web Site Easy
Sometimes prospects may not need to see everything to decide to make a purchase. You
want to let buyers make that decision as soon as they’re ready, so make sure that every
page has a link to the “order page.”
Encourage the Customer to Bookmark Your Site
You want the customer to be able to come back, find you easily, and become a repeat
customer; so you want them to bookmark the site.
Because the customers may be excited about making their buying decision, it’s possible
that they won’t even think of book marking your site. So, frequently mention it in the copy.
Don’t Confuse the Prospect
Although underlining text is a common and effective tool when using copywriting
techniques, it isn’t a great idea to use on your web site because it will look like a hyperlink.
Your prospect could get so confused or aggravated that they will just freak out and leave
your site. Why give them the chance when you can use other tools, like writing the key
phrase or pointing in italics or making it bold.
Try to Obtain Add-On Purchases When the Customer Makes the Order
One of the best ways to do this is to have your web site open up a “pop-up” window
when your customer places the order.
This pop-up window first can thank them for choosing your company, so they don’t feel
like you’re too aggressive with your sales tactics. (Pop-up windows are notoriously known
for being annoying. Some unscrupulous Internet Marketers have them programmed to
keep popping up on a prospect’s screen even after the user has left the site.)
But with your gentle approach, they won’t be offended. Then you can close the message
with a note about another product that’s offered at a “special deal” right now. And, since
their credit card is out and they’re in a buying mood, what better time to coax them into an
additional sale?
Here are a few ideas for back end offers:
• A video regarding the product
• A special discount for buying a bigger quantity of the same product
• A newsletter regarding the product
• Another product that complements your customer’s initial purchased
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Got $5? If so Ebay can Make You a
Successful Small Business Owner!
EBay is the miraculous Internet site that has profoundly changed the online
marketplace. EBay offers sellers and buyers with virtually any kind of item an avenue to
transact business with a bidding process. According to the latest statistics there are over
three million items that are posted for sale on eBay.
EBay offers a great way for you to instantly be in business with virtually no startup
costs. All you need to get started is to have a checking account. The cost to place an
advertisement on E-Bay is under $5.
And with eBay’s payment processing service, which is called Pay Pal; you’ll be able to
accept credit card payments without any of the hassles or expenses that usually go with
opening a merchant account.
Imagine that with five bucks in the bank and a product to sell, you can get your
advertisement in front of potentially millions of customers and take a credit card for
payment!
One of the most amazing things about eBay is the tremendous variety of items that can
be bought or sold on this site. For example, you can buy autographed memorabilia, stuffed
teddy bears, jewelry, paintings, cars, boats, real estate, videos, and nearly anything else that
you can think of. There is virtually no limit to what can be sold on eBay. In fact you can
even buy live piano lessons online. Take a look at one clever entrepreneur’s postings that
shows you that there is no limit to what can be sold on eBay.
LIVE ONLINE PIANO LESSONS! GUARANTEED RESULTS!
Required: Computer with Windows 95/98/XP; Web Camera; Microphone; Acoustical
Piano or Electronic Keyboard with at least 61 regulation size piano keys and a sustain pedal
NO experience needed at the piano, just the desire to learn and the willingness to go to
the instrument and do your lesson 10 minutes a day
Your online teacher will be Fritz Owens. For more information, go to http://www.
OwensStudios.com
Besides just being able to sell people a particular item, you can also draw people to your
own web site. That gives you the chance to promote any services, products, or company
information that wouldn’t be allowed to be posted in your eBay site. What you do is list
your web site address and link it to your “About Me Page” by saying, “Visit My About Me
Page to Learn More about Your Seller”!
Once they’ve logged onto your web site, you can capture their e-mail address by getting
them to sign up for a free newsletter. As time goes, you can build a huge e-mail address list
of interested buyers!
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EBay is so simple to use that even a computer challenged person like myself put up
products to sell very easily. There are just a few basic steps to this whole process:
Figure out what you want to sell. If you need ideas surf on eBay for a while. Another
great thing about eBay is that it’s like all the market research has already been done for
you. The reason is that you’ll be able to see how many bids an item is getting. If an item is
getting a lot of bids, then this might be a good product for you to sell. Conversely, if you
can see that an item isn’t selling well, then chances are it won’t sell well for you either.
There are many ways for you to pick up great products; here are a couple of ways to get
products:
• Garage, Rummage, and Tag Sales – Next to getting the stuff for free, the absolute
best way to obtain items for resale is garage, rummage, and tag sales. There are
always lots of garage sales listed in the classified section of any major newspaper.
Go around and find yourself some bargains. It’s not at all unheard of to buy
something at a garage sale for a dollar and then sell it on eBay for $10. That’s a
1000% mark-up! If you do this on any kind of volume, you’ll be quickly on your
way to getting rich.
• Consignment — Taking things on consignment is a great way to get free
merchandise! Since you don’t have to invest any personal money in the item,
you have no risk! Don’t be afraid to charge 30% for consignment work. You are
doing just as much work as a public auction house, and possibly more. With no
investment in inventory, you can accumulate an unlimited selection of products to
sell.
Photograph your item to be sold. It’s probably best to take some digital pictures of the
item; but if you can’t, then you can certainly take some standard photos and scan them. It’s
very easy to place them online in your eBay advertisement.
Log onto ebay.com and place your advertisement. When you log on you’ll find easy to
follow instructions that will walk you right through the process.
The Specifics of Doing Business on EBay
Once you have your product and you are ready to start the auction for your product,
you will want to let people know that your auction exists. And, as luck would have it, eBay
will also help you with this by allowing you to advertise your auction.
EBay provides you with an advertising section in your auction listing. You can use this
area to put out whatever information you want.
The great thing about this is that not only can you advertise your particular item; but if
you’re clever, you can advertise your business as well. As noted before, you can include a
link to your “About Me” page, which can contain a link to your commercial web site.
EBay has its own distinctive traits regarding its auction ads and you should use these to
your advantage.
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Unlimited Information
Unlike a print ad, there is no additional cost for including more information.
Therefore, you should put in as much relevant information as possible to help the
customer make a buying decision. Remember that unlike a physical store where a customer
can pick up and feel a product, all your prospective customer has is your description and
pictures. So, offer plenty!
One Line Title
This one line description of your auction will serve as a title for the auction web page
and for the auctions listing on eBay’s lists of auctions. This title cannot exceed 45 characters.
This is a critical component for marketing your auction, so you should make sure that you
adhere to all of the following:
1. Have key words in the title that people might use in searches
2. Make sure the title is not a tongue twister and easy to read
3. Avoid exaggerated descriptions such as “too good to be true.”
4. Make it clear what precisely is for sale: a Latin American Painting, and so forth
There are other things you want to keep in mind. For example, if your product has
a known brand name, then you would want to include that in the front of your title. If
there isn’t a brand name involved, then you would want to note the most compelling
characteristic.
An example would be in the case of the Latin American oil painting that hasn’t been
painted by someone famous, you might put, “Andean Mountain Scene.”
Remember, the purpose of the title is to entice the prospective buyer. It’s to communicate
clearly to the prospective buyer what it is you have to sell. There are so many items for sale,
that if you try to be cute and not reveal precisely what it is you’re selling; you’ll find that
many people will just skip right over you. If the person wants to buy an oil painting, then
they’ll take a look if you let them know that’s what you have.
The Body of Your Auction Ad
Remember that the goal of your ad is to generate an interest from prospective buyers.
A simple rule in marketing is that you not only want to discuss features, but you want to
discuss the benefits of the features.
Again, be clear about what it is you’re selling. If you aren’t, besides losing some
potential buyers who will become annoyed and move on, you will create unnecessary work
for you because some persistent prospects will e-mail you to ask questions. If the product
generates a lot of interest, you could find yourself spending hours answering e-mails
providing information that should’ve been on the ad.
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In the world of eBay, condition is of prime importance. If your product is new, mint,
or in excellent condition; it’s important to note this, because eBay buyers love to get new
products at what they perceive as great prices. Now, this doesn’t mean if it isn’t a new or
mint item it won’t sell. The fact of the matter is that many E-bay buyers are looking for
used items because they want to save money.
You want to include a little hype in your description, but you don’t want to go
overboard. List any personal opinions or experiences that will help interest potential
buyers.
In the example of the original oil painting, I noted that the artist was an up and coming
nationally known artist as a young man that graduated from the most respect art school
in Peru with a full scholarship; and that now that he has retired from his job as a school
teacher, he has returned to painting and will be creating a limited number of original
paintings.
It is always good when possible to make it sound as if this is a limited opportunity for
the prospective buyer to acquire the product. However, make sure that your claim sounds
plausible. If you’re selling a Sears brand hammer and you claim there are limited hammers
available, your claim will ring false and it will turn off your prospective buyer’s interest.
The size of your ad should be correlated to the cost of the product. For example, if you’re
selling a pair of shoes for $20, you’re not going to need a ten-page product description.
On the other hand, if you’re selling a house in the Hamptons, then you will probably
want a ten-page description. Also, if you have third party literature for people to read,
such as a magazine review; then you can put a link to it rather than print it out in your
description. Remember that when people look at something that seems hard to read, more
often than not, it will just scare them off and you’ll lose the sale.
Also make sure that you write your text following the copywriting rules and techniques
that are provided in the copywriting section of this course.
If you didn’t know, in order to break up your paragraphs using HTML, you simply write
the following at the beginning and end of each paragraph:

Make sure to use photographs when selling your products! Without a photograph you
will probably get ten percent or less of the business that you will with a photograph.
Buyers Secret:
When you get familiar with eBay, chances are that you’ll also start doing some of your
purchasing on it because you really can get some great deals. If you see more than one
person looking to sell the same or a similar item, note how much detail they have in their
descriptions.
Chances are that the person who has plenty of information will be getting more and
higher bids. So if you want to buy, it’s a great idea to throw a lower bid at the guy who
didn’t take the time to list much information in his description, because he more than likely
won’t have nearly the same number of quality bids.
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Remember to Ask for the Sale
In the case of your eBay commerce, the sale translates to a bid. So, make sure to ask
for one. Don’t put something coy like, “and to the highest bidder so shall the honor be
bestowed to receive the right of purchase.”
Ask for the order in a professional manner. Try something like, “make your bid now, the
highest bidder will enjoy having this original oil painting for years to come.”
Your Auction Choices
Normal Auction
This kind of auction functions like a typical silent auction and is well suited for selling
an individual item. You will set a minimum bid and then buyers will make bids on the
item. If you set a minimum bid that is very low, chances are that buyers will bid it up to
market value. However, if you set a minimum bid that is excessively high, chances are
that you will not receive any bids and you will have wasted your time. The best strategy is
probably to set a minimum bid that is just slightly below the market value and hope that it
ends up bid a bit over the market value.
Reserve Auction
A reserve auction is really a normal auction except that the minimum bid is a secret so
that buyers don’t know what the minimum is. However, once that minimum bid has been
reached eBay will publish the fact that the reserve has been met. If the reserve isn’t met,
then the seller doesn’t have to sell the product.
Dutch Auction
This is the type of auction to use when selling multiple units of the same item. Let’s take
for example that you are selling five pairs of the identical shoes. How it works is that the
five highest bidders will get to buy the shoes, but they will all pay the same price as the
lowest of the five successful bidders.
A minimum bid is allowed in this kind of auction, but there is no reserve allowed.
Private Auction
In this kind of auction, all of the bidder’s identities are kept a secret to even the seller
with the exception of the winner’s identity of the auction.
This is a good type to use if you suspect that the buyers would like to keep their
identities a secret. For example, if you were selling an expensive castle that only very
wealthy people might be able to buy, they might like to keep their identities private. Or
another scenario is that you’re selling an item that the buyer might feel embarrassed about,
such as a penile implant device or something else that is very personal.
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Rules of the Auctions
• Auction periods are for specified periods of time. They run for 3, 5, 7, or 10 days.
The auction expires at the same time that it started. So, if you want your auction to
end at a certain time of day, then you should simply commence the auction at the
same time period.
• There is a restriction that regulates who is able to enter the eBay area where erotic
adult products are sold. Anyone entering this area must be over 18 years old and
must provide a credit card number as a means of ensuring that they are of age.
• There are certain types of products that are prohibited from being sold on eBay.
Below is a list, but it is NOT CONCLUSIVE as new rules are created all the time as
eBay grows and develops.
A. Child Pornography
B. Counterfeit items
C. Human body parts
D. Financial instruments (stocks, bonds, and so forth)
E. Prescription drugs
F. Tobacco
G. Military weapons
H. Animals
I. Surveillance Equipment
J. Replicas of and, or both, government identification cards or licenses
K. Law enforcement badges and identification cards
L. Stolen items
M. Used medical equipment
N. Weapons
O. Autographed items
P. Hazardous materials
Q. Anything illegal
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• EBay does not complete the transaction for you. It is up to you to contact the buyer
and arrange payment for the transaction. It is in your best interest and easier if you
contact the buyer right away or you’ll find yourself wasting a lot of time answering
unsolicited e-mail messages.
• EBay doesn’t provide escrow services; however, it does recommend one which
is www.escrow.com. Naturally, you can find many other service providers if
you choose to. You will probably only need escrow services if you are selling an
expensive item. EBay recommends an escrow service for transactions over $500.
This doesn’t mean that you must do this and many sellers have a higher minimum
purchase price before allowing an escrow service. Using an escrow service requires
more steps and involves fees that are in the range of 3%, so you should decide at
what price point you feel it’s worth your efforts to attract buyers who might be
leery without the escrow service.
• E-bay has a feedback system which will be of great use to you if you treat people
ethically and have many satisfied customers. On the flip side, if you anger previous
customers, this will come back to haunt you and make it almost impossible for you
to sell on eBay; because you will receive a rating that potential buyers can research
very easily.
• EBay doesn’t allow you to promote your commercial web site on your auction
pages, but it does allow it in the section called “About Me.” So, this is a very
valuable tool to use if you have a web site to promote.
• EBay offers a security identity verification service, wherein for a $5 fee eBay will
cross check your data that you provide against the database of Equifax. This helps
assure that the person is who they say they are. It is not mandatory to use this
program, although some people may insist on it. You might insist on others being
verified if you are doing large transactions.
• EBay makes its profits by charging sellers two fees. One is an initial listing fee,
which is very nominal and ranges from about 30 cents up to $3.50 for a product
that costs over $200. So, you can literally start a business on eBay for under $5!
The second fee is a commission based on the final sale of the product. For an
inexpensive product, the commission can be something like 5%; but for expensive
items over $1000, the commission drops to about 1.5%.
• You are allowed to change anything you want to your auction prior to your first
bid, but after the first bid has been made you can only change information. While
it is possible to cancel an auction once bids have been placed; it is a tedious process
and will be reflected permanently on your eBay record, so you want to avoid this if
at all possible.
• If your auction receives no bid, you do not get a refund on your listing fee, but
naturally there is no final value fee.
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• You can list any auction again automatically without going through the process of
entering it again, which is very convenient if you are continually selling the same
item.
• EBay will only get involved in disputes between parties if it is clear that a law has
been broken.
• You are prohibited from using second registrations or associates to give negative
or positive feedback to yourself or others; nor can you offer to buy, sell, or trade
feedback.
• You cannot use second registrations to artificially elevate bid prices.
• You cannot e-mail bidders privately and offer them the same or similar items at a
discounted price while an auction is open.
• You cannot send unsolicited e-mails to past bidders or buyers.
A Few Final Selling Tips to Enhance Sales
• Accept credit cards for payment. By using PayPal you can accept credit cards.
• Offer a guarantee.
• Charge for shipping and handling as opposed to just shipping charges. This allows
you to make a specified charge so the buyer doesn’t have to be afraid of what that
charge will be, but allows you to avoid angering the customer if they find out that
the actual shipping charge was lower than what you charged.
There are thousands of people who earn a good full time living simply selling things on
eBay. This is a vibrant and real market that you can enter with virtually no capital. So, if
you want to start doing business on the Internet but don’t want to have a web site or do an
e-mail campaign, then eBay may be just the ticket for you.
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Overview:
You will market products that assist people in flattening the stomach. The products in
this category include items like flattening gel, publications on how to flatten the stomach,
and exercise equipment for stomach flattening.
Buyers:
The market for consumers interested in losing weight and flattening their stomachs is
very large. According to a study just completed by Tampa-based Marketdata Enterprises,
body-conscious Americans will spend nearly $40 billion this year to lose weight. They also
predict that the weight loss industry in the U.S. will grow 5.6 percent annually to $48.8
billion by 2006. In fact, the most rapid rate of growth was in the “do-it-yourself” category.
And according to the National Center for Health Statistics, an estimated 64% of
Americans are considered overweight or obese, up from 56% in the early 1990s.
Back End Marketing Methods:
This category offers numerous back end sales opportunities because many of the
stomach flattening products “tie in” together well. A person that purchases a flattening gel
must also burn calories for the products to work according to the manufacturer literature.
Thus exercise equipment and exercise manuals are natural add-ons. This same circle of
logic works for whatever type of flattening product a person first buys…the other types of
products will only enhance their results.
Body Flattening
Internet Business Idea #1
38
Your Product’s USP:
Because there are so many products in this category, it is really necessary to present a
case as to why your products are so unique. If you are marketing instructional publications,
you can stress the credibility of the author and the original types of body flattening systems
that are being taught.
If your product is gel or dietary supplement; you must be able to show how your
product is different from all the others, unless it is not. In that case, you’ll be emphasizing a
different part of your offer such as your lower prices or superior service.
Sourcing Your Product:
You either publish your own informational products or simply buy products wholesale
and then resell, although it will be more difficult to attain the necessary mark-ups required
to be profitable. Below is information on a wholesale dealer of body flattening products. In
addition, if you key terms such as exercise, diet, or body flattening products wholesale into
a major search engine, you will be able to find more sources.
I.M.P.A.C.T. Publishing, Inc.
Potentials Unlimited products
P. O. Box 10058
Bradenton, FL 34282
Tel: (941) 739-2611
Tel: (800) 4-A-NEW ME (426-3963)
Fax: (941) 756-0315
Pricing and Mark-up:
In general direct marketers seek a 5:1 or better ratio for mark ups to be profitable. If you
are selling self-published publications, this margin will be easy to attain. If you are reselling
other company’s products, it will be a little bit harder; but if you are buying in volume, it is
possible.
Prices range quite a bit in this category, but the flattening gels run in a range of $39.95
- $119. Publications, video, and audio products generally start at $19.95 and can run up to
$79.95. And exercise equipment can start as low as $29.95, but can also range into high end
products that sell for prices all the way up to $1000+.
Restrictions:
There are no special licenses needed to market body flattening products; however, there
are many government regulations on claims that can be made.
For nutritional or gel products it’s recommended to have some type of disclaimer.
Below is a sample of the kind that many competitors in this category use.
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Disclaimer: Any statements of therapeutic claims by manufacturers are not verified by
U. S. Food and Drug Administration. The user is responsible for making her or his own
decision regarding the suitability and validity of the information provided. Always consult
your physician before taking any medication, supplements or change in diet or lifestyle.
The information provided is accurate at the time of publication. Product descriptions,
images, and ingredients are believed to be accurate, but may be changed at anytime by
manufacturers.
A non-profit organization that helps businesses in this category has a web site that offers
a set of voluntary guidelines for businesses and other tips that can be very useful.
http://drs.yahoo.com/weightlossindustry
The main federal regulatory agencies that monitor issues in this industry are the Federal
Trade Commission and the Food and Drug Administration. It is strongly recommended
to contact these agencies for more information regarding compliance with regulatory
legislation. The contact information for both is below:
Federal Trade Commission
600 Pennsylvania Avenue, N. W.
Washington, D.C. 20580
Food and Drug Administration
5600 Fishers Lane
Rockville, Maryland 20857
Tel: (888)-INFO-FDA – (888) 463-6332
Because of the intensive regulation of this category, it is strongly advised to consult an
attorney with experience in this industry before initiating your marketing campaign.
Insider Tips:
Direct marketers of flattening gels find that certain terminology drives sales. Samples of
terms you might want to include would be “fat burning paste,” “fast flattening action,” and
“torching the fat.”
While the use of guarantees is an inherent part of most direct marketing campaigns,
the importance of using a strong guarantee is vital with body flattening products. The
customer must be assured that if the product doesn’t work for her, it will be easy to return
for a full refund.
Testimonials are another extremely potent technique with body flattening. If at all
possible having “before and after” pictures of previous customers has been proven to really
drive sales in this category.
40
Studying Competitors:
Jenny Craig International
11355 N. Torrey Pines Rd.
La Jolla CA 92037
http://www.jennycraig.com
Lovingyou.com, Inc.
http://www.lovingyou.com
contact@lovingyou.com
Extreme Sports Nutrition, Inc.
2373 N.W. 185th Ave., #450
Hillsboro, Oregon 97124 USA
http://www.xsportsnutrition.com
Active Videos
10 First Ave E.
Mobridge, SD 57601
Tel: (800) 342-4320
Tel: (605) 845-5819
Fax: (605) 845-7627
http://www.centralhome.com/
41
Overview:
You will market books to end-users. You can either try to sell a specific line of books
or you can build a book club where your members receive regular offers for new titles. If
you have an area of expertise, you can write a book on this subject or you can acquire the
services of a qualified author. Your best bet to enter this market will be to publish titles that
offer information on subjects that aren’t readily available in the mainstream marketplace.
Buyers:
Consumers purchased over 1.63 billion print books in last year. The average suggested
retail price for an adult trade hardcover is just under $30. Soft cover books are priced lower
usually at under $20.
The direct marketer’s share of the market was 3.1%. So, you don’t have to be a math
genius to see that this is a large market. It should also be noted that the above average
prices are merely that and that many direct marketers sell their books for considerably
higher prices, which they can get because of their specialized nature.
The buyers of books through direct marketing can vary greatly, but your most likely
prospects to buy from you are those that want to purchase books that are not that readily
available in the general retail market. Some of the active buyers of books through the
Internet seek books with specialty subjects, such a wealth building and investment
strategies, books on credit repair, privacy strategies; or on almost any hobby and special
interest, such as sports, gardening, learning to write, art, and almost any subject that people
want to know about.
Selling Books
Internet Business Idea #2
42
With the book market continuing to increase in its overall size and healthy average
prices, along with being able to start with little capital; the direct marketing of books is an
extremely attractive category to enter.
Marketing Methods:
Maintaining a web site where you keep hot new titles is one other way of building your
sales and your in-house list.
You can also place space ads in publications that cover the topics that you market books
on. For example, if you market books on martial arts, you may do well with space ads in
martial arts magazines.
Back End Marketing Methods:
Once your customer places an order for a certain type of book, you know you have
an excellent candidate for additional sales of related new titles. You can work your lists
through membership in a club and insertions included when you fill orders.
You may also be able to generate sales of related products. For example if you have a
buyer of a book on the subject of natural supplements, this prospect will have a strong
likelihood of being a buyer of natural supplement products.
Your Product’s USP:
You will either need to build an identity for the specific books that you sell or the way
in which your company can offer books to customers. You will need to offer something
that makes customers want to buy from you. Maybe your books are very difficult to find.
One mail order book seller, Paladin Press, sells books on obscure subjects that one can’t
find in your local Barnes & Noble. They sell books on subjects such as hundreds of ways to
obtain vengeance on people anonymously, how to create anarchy, and how to create a new
identity. If it’s the not the titles of your books that drives your customer orders, then you
will have to develop some other unique attributes for you business perhaps based on price
or quality of service.
Sourcing Your Product:
Your product line could come from many different places. If you’ve got books you’ve
published to sell, then you’ll be using printers to create the books. There are literally
thousands of printers that could do the job for you, but below are a few:
AdMail
30945 San Clemente Street
Hayward, CA 94544
Toll free: (800) 273-MAIL
Fax: (207) 945-9311
http://admail.com
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Advanced Graphics
Tel: (973) 467-1800
Fax: (973) 467-1801
http://advancedgraphic.com
Alice Paul Direct Mail Service
Granger Printing
435 San Benito Street
Downtown Hollister, CA 95023
Tel: (831) 637-3347
Fax: (831) 637-6332
Heck’s Printing
417 Main Street and
202 W. Florence Avenue
Toledo, OH 43605
Toll free: (800) 997-HECK
http://hecksprinting.com
Pacific Rim Printers-Mailers
1803 Buerkle Road
St. Paul, MN 55110
schools, colleges, and universities
11924 W. Washington Boulevard
Los Angeles, CA 90066
Tel: (310) 390-3500
Fax: (310) 636-3501
http://prpmprint.com
Post Printing
333 Northgate Mile
Idaho Falls, ID 83401
Tel: (208) 529-9911
Fax: (208) 528-2243
Printers Direct
3601 N. Dixie Highway, #10
Boca Raton, FL 33431
Toll free: (877) 774-6812
Tel: (561) 417-4010
Fax: (561) 447-9949
http://printerdirect.net
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If you are going to be selling books that are already published, you will need to find
book wholesalers. The nature of the books you sell will dictate what type of wholesaler you
need to use. There are hundreds of different book wholesalers and distributors. To obtain
a detailed list of them, you can consult a book industry trade directory or publication. But
to give you an idea of how some of them work and what kinds of terms they have, we’ve
provided the contact information on a few book wholesalers who will sell books in small
quantities at wholesale rates.
IEEE Marketing & Sales Department
William O’Connor
445 Hoes Lane
PO Box 1331
Piscataway, NJ 08855-1331
Tel: (732) 562-5591
http://shop.ieee.org/
Consortium Book Sales & Distribution
1045 Westgate Drive, Suite 90
Saint Paul, MN 55114-1065
Tel: (800) 283-3572
Fax: (651) 221-0124
Offices: (651) 221-9035
DELTA International Book Wholesalers Ltd.
39 Alexandra Road
Addlestone
Surrey KT15 2PQ
England
Tel: +44 (0) 1932 854 776
Fax: +44 (0) 1932 849 528
E-mail: info@deltabooks.co.uk
Pricing and Mark-up:
A general rule of thumb requires that in direct marketing you need to have at least a 5:1
mark-up. With average trade books being in the range of $30-$40 dollars, there is ample
room for these kinds of mark-ups with specialty subject books. One publisher, Paladin
Press, which markets titles on obscure subjects such as personal freedom and survival, has
an average order of $33. And Time Warner’s “Book of the Month” Club’s average order is
$91.
Getting Started:
First you have to choose what type of book seller you will be. If you want to market
books on a particular subject, such as martial arts or health supplements; you will need to
45
source your products. If you are creating a book club, you will have to decide whether your
book club will be a special interest book club or a general one. Once that is done, you’ll
choose your first titles and your first offering.
Restrictions:
There are no real restrictions on the direct marketing of selling books. One thing you
will want to do is make sure that you make no false promises as to what information your
books can deliver.
A secondary area for caution is selling books that are on subject matters that could be
considered controversial, obscene, or illegal. It is possible that a local community could
decide that your books are obscene or otherwise illegal, and actually start a criminal
prosecution against you because people in their community have been exposed to your
books. If you’re marketing books that have any risk of generating such a reaction, you are
strongly urged to consult a qualified attorney before you begin your marketing activities.
Insider Tips:
Targeting customers based on demographics can prove very profitable especially when
also including a premium while promoting a book club.
Another innovative method of marketing your books is to contact book clubs and try to
get them to feature one of your books to their members.
You can also target prospects by their occupation. Rob Weisbach Books/William Morrow
promoted a courtroom thriller, “The Tenth Justice” by Brad Meltzer, by targeting law firm
recruiters.
Industry Trade Groups:
American Booksellers Association
ABA, 828 South Broadway
Tarrytown, NY 10591
e-mail: info@bookweb.org
visit http://www.bookweb.org
Tel: (800) 637-0037
Fax: (914) 591-2720
American Wholesale Booksellers Association
Patty Walsh, Executive Secretary
702 S. Michigan
South Bend, IN 46601
Tel: (574) 288-4141
Tel: (303) 265-9292
http://www.awba.com
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Studying Competitors:
Agora Inc.
P. O. Box 1936
Baltimore, MD 21203
Customer Service:
Financial - (508) 368-7492
Health - (508) 368-7493
International Living - (508) 368-7496
International - (508) 638 7498
http://www.agora-inc.com
Bottom Line Publications
281 Tresser Boulevard, 8th Floor
Stamford, CT 06901
Tel: (203) 973-5900
http://www.bottomlinesecrets.com
Audio Book Club, Inc.
P.O. Box 2346
Morristown, NJ 07960
Tel: (973) 539-9528
http://www.audiobookclub.com
Book Marketing & Publicity
5900 Hollis St. Ste, R2
Emeryville, CA 94608
Tel: (510) 596-9300
http://www.infocomgroup.com
Paladin Press
P. O. Box 1307
Boulder, CO 80306-1307
Tel: (303) 443-7250
http://www.paladin-press.com
Prentice Hall Publishing
1 Lake St.
Upper Saddle River, NJ 07458
Tel: (201) 236-7000
www.prenhall.com
47
Overview:
You will market an e-mail publication to online subscribers and earn profits from a
number of various revenue sources. With the fact that such a high percentage of people
now own computers and have Internet access, the use of e-mail as a marketing tool has
skyrocketed.
Some large marketers have millions of subscribers.
Penn Media has more than 62 million subscribers among its 938 publications! This places
them among major publishers such as AOL/Time Warner, News Corp, Gannett, and the
Tribune Company.
There are several different potential sources of income when e-publishing:
Subscription Fees —You charge the customer a fee for receiving the informative epublication
Advertising Revenues — You charge other businesses for placing their ads in your epublication
either with an up front fee or a results based fee.
Back End Opportunities — You generate revenues by marketing other products or
services rather than the e-publication itself.
E-Mail Publishing
Internet Business Idea #3
48
According to a recent study publishers of e-publications primarily use:
• CPM or package pricing when offering sponsorship opportunities with a published
issue.
• CPC (cost-per-click) pricing.
• CPA (cost-per-acquisition) pricing.
Other Facts:
• One out of every three e-publications publishers count on advertising income from
their publications as their primary source of earnings.
• Over 41% of publishers accept more then three sponsorships per e-publication issue
with less then 10% offering exclusive opportunities.
Buyers:
Other than the fact that your buyers own a computer and, or both, have internet access,
they will vary greatly depending upon the type of e-publication you have.
There are certain categories that many successful e-publishers have found to be
profitable market segments:
• Financial Investors
• Business Opportunity Seekers
• Aspiring Writers
• Aspiring Actors
• Sports Enthusiasts
• People Interested in Personal Growth
• Hobbyists
Front End:
The primary medium you’ll use to develop your in-house list is the Internet. There are
several options for online marketing.
Maintain and Promote a Web Site that Markets Your E-Publication — Your web
site can have promotional information about your e-publication and can offer online
registration for a subscription.
49
Send E-mail Invitations to Potential Subscribers — You can e-mail invitations to
prospects by obtaining e-mail lists in a similar way that you can rent physical address
mailing lists.
Prices vary, but the prices of one company are listed below to give you an idea of what
the costs might be.
Number of Emails Cost Per Email:
1 - 1,000: $0.015
1,001 - 2,500: $0.013
2,501 - 25,000: $0.012
25,001 - 50,000: $0.01
50,001 - 100,000: $0.0085
100,001 - 500,000: $0.0075
There are a number of companies that will market your advertising opportunities to
other businesses.
E-target.com
E-target.com brokers advertising in e-mail publications and lists with a minimum of
10,000 members. Offers both CPM and performance-based advertising.
Opt-Influence.com
One of the largest email newsletter advertising networks, Opt-Influence.com brokers
advertising in publications larger than 5,000 members. Non-exclusive.
Penn Media
Penn Media represents nearly 1,000 email publications on a non-exclusive basis.
Brokered ads are placed in publications larger than 50,000 subscribers.
There are also many companies that can assist you in earning money through affiliate
marketing. The most common criteria other businesses use to determine affiliate fees that
they will pay you are:
• Actual Percentage of Sales
• Number of Click-Throughs
Below are a few companies URLs that offer assistance in affiliate marketing.
2-Tier.com:
A directory of affiliate programs that pay commissions to two tiers of affiliates.
AffiliateAdvisor.com:
A resource for merchants and affiliates who want to participate in affiliate
marketing.
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AffiliateGuide.com:
Features a categorized list of affiliate programs, a guide to help set up your own
program, and affiliate industry news.
AffiliatesDirectory.com:
Includes a directory of programs and an affiliate news e-publication.
AffiliateTalk.net:
A moderated e-mail discussion list for affiliate marketing professionals.
AffiliateWorld.com:
A guide to finding quality affiliate programs.
Back End:
One very effective means of earning back end revenues is to market other products and
services to your subscribers other than subscriptions to your e-publication.
For example, if you market an e-newsletter that provides readers with investment
advice, you can offer a special report that details how to invest in penny stocks.
Your Product’s USP:
The key to being a successful e-publisher is to develop and maintain a large subscription
base. In order to do this, there are a few things to watch out for:
1. Provide Valuable Information for Your Reader
Deliver the Type of Information Promised
2. Adhere to Your Promised Delivery Schedule
3. Don’t Keep Changing Your Format
4. Make the E-Publication Easy to Read
5. Don’t Badger Subscribers with Too Much Advertising or Potentially Offensive
Promotions
Sourcing:
Since your product is not physical, the only sourcing need you have is to create and
distribute your e-publication on the Internet. There are several options:
• You can create your own e-mail publication with software that’s readily available
and fairly inexpensive to buy.
• Another option is to use free services such as Yahoo.com, which will publish your ezine
for free in exchange for allowing their advertising banners to be placed in your
publication.
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• You can hire a company that specializes in assisting businesses with e-mail
publishing. You can find many such vendors by typing in key words such as epublishing
in any major search engine, but below are a few samples to assist in
getting started:
Welch Integrated, Inc.
1123 Broadway, #902
New York, NY 10010.
Tel: (212) 255-5454
Fax: (212) 255-0497
Topica
620 Folsom Street
Suite 300
San Francisco, CA 94107
http://www.topica.com
Pricing and Markup:
The extraordinary benefit of e-publishing is that there is little to no cost for distributing
the publication when compared to regular U.S. Postal Service. Thus, e-publishing can be
extremely profitable.
In order to determine how much you should charge, you must first calculate several
things:
Your cost for producing and distributing the creative content:
You have to calculate the cost for creating the content, including what your own labor is
worth and any employees or free lancers that you must pay to create the e-publication.
Market factors such as the prices competitors with similar products charge:
Unless you are publishing an e-publication on a very obscure subject, there is a very
strong likelihood that there are other competitors in the market. Since there’s also a good
likelihood that your potential subscribers are also aware of these competitors, you will be
forced by the market to offer similar prices if you wish to survive in the marketplace.
Your strategy for earning a profit:
If your primary strategy for earning a profit is based on successfully selling back end
products or through advertising revenue streams, then you might actually want to offer
free or low cost subscriptions. But if your only source of revenue is subscription fees, then
you would need to charge a reasonable fee.
52
Getting Started:
There are many sources of information online about getting started in e-publishing and
quite a bit of it can be acquired at no cost. By typing in key words such as e-publishing on
any major search engine, you can find many online sites.
Below is a sampling of web sites of companies that either offer free information on epublishing
or they sell information on e-publishing:
• http://www.netfreemail.com/marketingtips/ads-marketingtips.htm
• http://www.booklocker.com/books/548.html
Profitable E-mail Publishing: How to Publish a Profitable E-Mag
• http://www.triangleama.org/
• http://www.ezineuniversity.com
Requirements:
There are no special licenses needed to publish an e-publication. The main thing that
you may need in order to earn a profit, besides the capability to produce and distribute the
e-publication, is the capability to accept payments online.
For this you will need to set up some form of a merchant account so you can accept
credit cards. Vendors that offer these services vary in their requirements. But things that can
influence your ability to procure a merchant account are:
• The nature of your publication
• Your own personal credit history
• The financial history of your company
Restrictions:
With the advent of the “e-mail marketing boom,” there’s been a great deal of consumer
backlash and legislation passed and pending on a state and federal level.
It would be very wise to make yourself familiar with the laws and regulations that
effect how you market your e-publication and any other ancillary products, particularly
regarding unsolicited e-mail messages.
There are organizations that may have useful information regarding the e-publishing
industry and the latest regulations:
• DM News: http://www.dmnews.com
• Direct Marketing Association: http://www.the-dma.org/
• American Marketing Associaiton:http://www.marketingpower.com
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Insider Tips:
Get free news that you can publish in your e-publication or on your web site at:
http://www.xpresspress.com/news/booknews.html
Offer Free E-Publication Subscriptions:
One of the ways proven to be a highly profitable method of e-publishing is offering
a free subscription and then earning revenues through back end sales and advertising
revenues.
Avoid Losing Subscribers by Angering Them:
A major potential subscriber irritant is having too many advertisements in proportion to
content. E-mail subscribers are fickle and they can cancel their subscription with you with
the click of a mouse.
Use Residual Billing:
It’s a proven fact from many behavioral studies that once momentum has started in
one direction, people are less likely to expend the energy to reverse the direction. Thus, if
you can sign up subscribers for a low monthly recurring billing to their credit card, there
is a strong likelihood that they will retain the subscription for a longer period of time than
if it ended on its own and it was necessary for the customer to take action to renew the
subscription.
To Learn More:
Below are the web site addresses of several successful e-publishers for you to begin
studying:
http://www.lockergnome.com/
http://ezinequeen.com
http://www.akbwriting.com
http://www.planetsharkproductions.com
The sites below are directories of e-publications and are an easy source to use to study
thousands of more e-publishers:
http://www.ezine-universe.com/
http://www.netterweb.com
http://www.webscoutlists.com/
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55
Overview:
You will market fishing equipment with online sales. Recreational fishing is a big
business, generating more than $116 billion in economic output and more than one million
American jobs. If sport fishing was a corporation, it would rank above Target, Sears, and
Johnson & Johnson on the Fortune 500 list of largest American companies. Thus, the
fishing equipment business is very large and appears to be only getting larger. Last year
anglers spent:
• Over $5 billion on equipment
• Nearly $15 billion on fishing trips
• A billion more on boats, trucks, licenses, and other fishing-related products and
services
Some of the types of products you will sell include:
Reels, rods, rod and reel combo, saltwater baits, fishing rigs, bucktails, fishing line,
floats, hooks, leaders, rigging accessories, offshore trolling lures, plugs, hard baits, skirts
and teasers, spoons, tackle boxes, weights and sinkers, and worms
Buyers:
There are 44 million Americans of all ages, race, and gender who fish for hundreds of
species of fish from Maine to California. The average angler is between 42 and 46 years old.
Anglers in the northern plain states tend to be older than participants from other regions.
Anglers come from diverse racial and ethnic backgrounds.
Fishing Supplies
Internet Business Idea #4
56
Although the majority of anglers are white, the percentage of non-white participants
varies depending on the region and type of water being fished. For example, more than
20% of saltwater anglers from the west are non-white. In contrast, less than 10% of
saltwater anglers in the south central are non-white. One third of all anglers are women.
Women are slightly better represented in saltwater than freshwater. The highest proportion
of women anglers are found in the south central and northern plains regions. Roughly 70%
of anglers are married with that percentage being highest among saltwater anglers. The
typical angler earns more and is better educated than the average American.
The average angler spends roughly $1,200 per year on fishing tackle and trips.
Saltwater anglers spend roughly 20% more on fishing tackle and trips than freshwater
anglers. Overall, anglers from the southeast spend the most money on fishing tackle, while
anglers from the Great Lakes and northern plains spend the least. Interestingly, spending
in the west ranked second behind the southeast region despite anglers from the western
region spending fewer total days on the water.
Front End Marketing:
Online Sales — Virtually all direct marketers of fishing equipment sales maintain web
sites. Since they provide cost effective methods of offering many products with pictures
and the ability to place orders 24 hours a day, seven days a week; many buyers will prefer
going online to make their purchases.
Back End Marketing:
There are many opportunities to make back end sales to fishing equipment purchasers.
Weekly Special Sign Up — One technique used by a number of direct marketers of
fishing equipment is to have customers sign up to be on an e-mail list that notifies the
customer of a specially discounted product of the week.
Travel and Tour Guide Packages — While your primary business may be selling fishing
equipment, it is a natural add-on to offer special fishing tour packages. Even if you don’t
want to actually be in the travel business, you can make deals with travel promotion
companies to market their packages to your customers and earn a percentage of the
revenues.
Clothing — Although clothing is not technically fishing equipment, it is a natural
product to offer on the back end to your fishing equipment buyers.
Tournaments — Besides selling equipment, you can create additional revenue streams
by organizing tournaments or by just participating in other businesses’ tournaments as a
vendor, you can pick up a huge quantity of back end sales.
Boats — Boats are a high ticket item which you can offer as a back end product yourself
or you can negotiate deals to promote other boat dealers and earn a commission on any
sales that result from your cross promotion.
57
Your Product’s USP:
Customers of fishing equipment have certain needs and expectations from marketers of
fishing equipment. So, if you’re able to position yourself as a company that can fill these
needs, you’ll be well on your way to creating a successful company.
Knowledgeable — The purchasing of fishing equipment, such as rods and reels, can
be tricky. There are many different brands and models and they are specifically made for
different applications. Many customers must count on their supplier to steer them to the
best product for their needs.
Variety of Products — There are many different fishing rods and reels and different
artificial and natural baits. For the serious fisherman (the kind that spend a lot of money),
they need to have a supplier who will have what they need in stock and the ability to take
orders and ship promptly.
Reliability — Sometimes fishing equipment buyers must try out new types of
equipment. They need to feel sure that they’re buying quality merchandise and that if
something is defective, that they’ll receive a prompt refund. If you can do this for your
customers, you’re bound to develop many lifetime loyal buyers.
Competitive Pricing — Although price may not be the first consideration for the fishing
equipment buyer, they are knowledgeable about the range that a product should cost. You
will need to make sure that you have at least competitive pricing.
Sourcing:
There are many wholesale suppliers of fishing equipment. You can find many sources
through various trade organizations or websites, but below is a list of several to start with:
FishingSupply.com
19151 S. Sagamore Rd.
Cleveland Ohio 44126
Tel: (440) 333-7809 X 106
http://www.wholesale411.com/fishingsupply
Silver Horde Fishing Supplies
P. O. Box 150 Lynnwood, WA, 98046
Tel: (425) 778-2640
http://www.silverhorde.com/Distributors.htm
Tian Ma Fishing Tackle Corp.
1 Da Cang, International Fishing Tackles City
Heibei Province, China 065301
Tel: (HP) 86-1380-4036492
http://www.geocities.com/yuetfish
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Falcon Lures
100 Asma Blvd., Suite 140
Lafayette, LA 70508
Tel: (337) 232-7326
http://www.fishingworld.com/FalconLures
Pricing and Markup:
There are a great many competitors in the fishing equipment direct marketing industry.
It will be necessary for you to have prices that will at least be competitive for you to be
successful.
Getting Started:
There is a trade group that has a great deal of information that would be useful to
someone that is going to begin a direct marketing fishing equipment business:
American Sportfishing Association
225 Reinekers Lane • Suite 420
Alexandria, VA 22314
Tel: (703) 519-9691
Fax: (703) 519-1872
Another option besides simply putting up your website in the wild west frontier of the
Internet is to join an online marketing mall. Even if you don’t decide to join one, it is an
excellent place to study competitors.
Fishing Equipment Retailers On-Line Mall Web Site:
FishingWorld.com, Inc.
18117 Hwy 69 N.
Lindale, TX 75771
Tel: (903) 882-8877
http://www.fishingworld.com/ContactUs
Requirements:
There are no special licenses required to be a direct marketer of fishing equipment, but
there are some special taxes that have been placed on this industry that you should be
aware of.
Tackle manufacturers have contributed to the management of America’s sport fisheries
through the payment of excise taxes on sales for over fifty years. The tax collected funds the
Federal Aid for Sport Fish Restoration Program, and is known as the Dingell-Johnson or
Wallop-Breaux Act.
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Generally, manufacturers and importers are responsible for payment of the excise tax.
Most items of sport fishing tackle and accessories are taxed at a rate of 10% of the wholesale
price, but there are numerous exceptions that make paying the tax more complex.
Resources are available from the IRS and from the ASA to help the manufacturer and
importer navigate the tax.
The American Sport fishing Association can provide you with a booklet that spells out
the specifics of these taxes so you can determine if they apply to you.
You can contact ASA at: http://www.asafishing.org/content/govtaffairs/gais_tax.cfm
Restrictions:
There are certain governmental restrictions on the characteristics of some fishing
equipment because of potential negative impact on the environment. To get more
information on these restrictions, you should contact the U.S. Federal Environmental
Protection Agency.
Environmental Protection Agency
Ariel Rios Building
1200 Pennsylvania Avenue, N.W.
Washington, DC 20460
Tel: (202) 272-0167
http://www.epa.gov/epahome
Insider Tips:
Show Fishing Photos — Fishermen tend to have huge egos and if you offer them the
potential to exhibit their proud catches by placing their photos on your web site or in your
mailings, you can expect to build some very loyal customers.
Free Reports — Many direct marketers of fishing equipment offer free reports on a
number of subjects, which creates a sense of gratitude on the buyer’s part and also simply
forces him to be exposed to some of your accompanying promotional materials.
Gift Certificates — Many direct marketers of fishing equipment offer gift certificates
which can give friends and loved ones of anglers the ability to purchase fishing equipment
gifts without having the expertise to choose an appropriate gift.
Newsletter — Publishing an e-newsletter is a proven method of getting your
promotional materials in front of your potential buyers at a very cost effective price.
To Learn More:
There are many successful direct marketers of fishing equipment to study. Below are two
web sites that have vast lists of competitors:
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Supplier List Online:
http://www.outdoorguides.com/outdoor/manufsh.htm
http://directory.i-une.com/Recreation/Outdoors/Fishing/Equipment
In addition here are some specific contacts of successful direct mail and online marketers
of fishing equipment.
Bass Pro Shops Customer Returns
Suite R
2300 E. Turner Street
Springfield, MO 65803
Tel: (800) 554-5488
http://ww.basspro.com
Capt. Harry’s Fishing Supply
100 N.E. 11th Street
Miami, FL 33132
Tel: (800) 327-4088 • (305) 374-4661
Fax: (305) 374-3713
http://www.captharry.com
Barton and Burwell Fishing Supply
47 S. Windermere Blvd.
Charleston, SC 29407
Tel: (843) 766-3220
Tel: (877) 216-3474
Fish ‘N Stuff
7430 Landers Road
Sherwood, Arkansas 72117
Tel: (501) 834-5733
http://www.fishingworld.com/FishNStuff
Thunder Bullets
17515 Territorial Road
Osseo, MN 55369
Tel: (763) 420-4191
http://www.fishingworld.com/ThunderBullets
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Overview:
The Jogging Apparel business is a part of the larger sports apparel industry and is a
very large sector of the economy. In fact, this year, over 3.5 billion pieces of sports apparel
were sold for a total that is approximately $35 billion dollars. The other good news for this
business sector is that it has a recent history of steady growth including the previous year
where it registered a steady 2.5% growth rate.
As a direct marketer of jogging clothes and accessories you will find online many
different products for jogging enthusiasts such as running apparel for men and women
like:
• Tank Tops
• Crew Tops
• Running Shorts
• Men’s Running Shoes & Trail Running Shoes
• Women’s Running Singlets
• Sports Bras
• Women’s Running Shorts
• Running Books
Internet Business Idea #5
Jogging Supplies
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Buyers:
Consumer Outlook, a study done by management consultants, KSA, reports some of the
following findings and insights into the sports apparel purchaser:
• Respondents to their survey believe saving time is more important than saving
money when it comes to shopping for sports apparel products.
• Seasonal sales attract 53% of all sports apparel purchasers.
• In buying footwear, 66% prefer brand-name products.
• Individuals under the age of 20 wear nearly 44% of all sports apparel.
• Those 45 and older constitute 24% of wearers.
However, since more than 12 million boomers will be age 50 and over in the coming
years, their demand for sports apparel will continue to increase. And more than 40% of
boomers say selection is more important than price when buying sports apparel.
Front End Marketing:
You will want to be able to offer the following on your web site:
• Ordering Online
• Accepting Credit Cards
• Pictures of Products
• Contact Information
In addition, you may want to offer other special features which will lure customers
into reading some of your other areas, such as featured customers, running tips, and other
helpful links.
Back End Marketing:
There are many opportunities to obtain back end sales in the jogging apparel industry.
You can publish an e-mail newsletter with the latest information for the jogging
enthusiast, which would also of course contain offers for special time sensitive deals on
specific items.
Your web site can be a great source of obtaining back end orders by packing it with
sections that jogging enthusiasts will be interested in reading.
• Special profile page of a current jogging customer each month
• Helpful links page
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• Basic Information For Joggers Page
• Question & Answer Page for Health Concerns
• Posting of Articles Page
Your Product’s USP:
As a direct marketer of jogging apparel; you are not only competing against other direct
marketers in this category, but you are also competing against all the brick and mortar
retailers that sell similar product lines.
In order to be successful, you must be able to offer competitive advantages that will
make the consumers want to do business with you. You can do this by positioning yourself
with many different characteristics.
Discount Pricing on Products — You can focus your business on certain areas, such as
running shoes or women’s running sports wear and create an identity as a discount retailer
for these products.
Wide Variety of Product Selection — Rather than focusing on offering discount pricing,
you can offer a wider variety of products than a brick and mortar retailer can. For example,
if you sell running shoes, you could offer unusual sizes or rare brand names.
Superior Product Quality — For many customers the idea of “buying the best” is
attractive. So, rather than try and compete with discount retailers, you can only sell
premium product lines at full price.
Excellent Service — As a direct marketer you will want to offer the best service you can
which should include 24 hour order lines, 100% money back guarantees, and customer
service personnel available via the phone or e-mail.
Sourcing Your Product:
An excellent list of suppliers of jogging apparel is located on the web site of the Sporting
Goods Manufacturers Association at: http://www.sgma.com
Below are sample listings of some suppliers:
Guangdong Dong Fang Imp.&Exp. Corp.
11/F, Yinsheng Bldg., No.1001, Hong Li Road (East), Shenzhen, PRC
518028 China
Contact Person Gong Zhi Cheng
Tel: 86-755-25950800
Fax: 86-755-25950220
(Jogging Suits - 100 dozen minimum order)
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Brooks Sports, Inc.
19820 North Creek Pkwy, #200
Bothell, WA 98011-8227
Tel: (425) 488-3131
Asics Tiger Corporation
16275 Laguna Canyon Rd
Irvine, CA 92618-3603
Tel: (949) 453-8888
Fax: (949) 453-0387
Pricing:
The jogging apparel industry is highly competitive with many direct marketers who
often compete on price; therefore, your prices will need to be in line with other competitors.
The pricing for low end jogging accessories can be as low as under $10 and high end
jogging shoes or outfits can cost several hundred dollars. Below are several examples of
retail prices that competitors in this industry are charging:
The Lycra®-Dry Sports Bra
Price: $14
Padded Lycra® Power™ Cycling Shorts
Price: $29
Men’s Running Shoe
Price: $89
However, the average sales orders can be kept up to a reasonably high level. The very
successful Road Runner, direct marketer of jogging apparel reports an average sale of $90.
Getting Started:
One of your tougher problems will be to find suppliers that will sell to you wholesale
without buying enormous quantities. There are a number of suppliers that will sell to you
in terms of several dozen of a product. You could consider doing a test of a product line
and filling those first orders by just reselling products you paid retail for and then buying a
larger quantity once you’re sure that the orders for the product will be there.
Restrictions:
There are no special licenses or requirements to be in the jogging apparel business.
However, if you sell name brand products, you must be careful that when you list them in
your promotional literature, you comply with any trademark requirements.
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You will also find some suppliers requiring your providing basic documentation of
being legitimately in business, such as business licenses, sales tax numbers, and bank
account information.
Insider Tips:
• Several direct marketers of jogging apparel have areas on their web sites that
feature photos of customers for their photo galleries wearing the company’s
product lines. In fact, they actually offer a coupon for a substantial discount or a
free inexpensive item, such as a pair of socks. Judging from all the photos posted,
this is clearly a way to get your customer to spend time on your web site where he
or she can experience “pop up window specials” and other promotion sections.
• The use of descriptive copy that paints a strong picture and spells out the comfort
benefits the customer will receive are proven to drive sales. For example, this is how
one direct marketer of jogging apparel puts it, “fabrics are soft, stretchy, breathable,
and lightweight. All fabrics offer state of the art moisture-management. They wick
sweat away from your body to the surface of the garment where it will quickly
evaporate.”
• Another great way to get your customers personally involved in your business is
to sponsor a running club. Each month you’ll have the whole list of running club
members eager to read your literature.
• A great way to drive traffic to your web site is to have a paid link on another high
traffic runner’s sight. In general, you pay for these links on a results basis, for
example, the number of “click-throughs” that you receive. Just be sure that you’re
working with a reputable party and are carefully tracking your results so you’re
sure you’re getting your money’s worth for your promotional dollar.
To Learn More:
There are many direct marketers in this category from which you can study. Below are a
couple of competitors that market their products online:
Road Runner Sports
5549 Copely Drive
San Diego, CA 92111
Tel: (858) 974-4200
http://www.roadrunnersports.com
Sports Active Wear Program Manager
13751 Jefferson Davis Highway
Chester, VA 23831
Tel: (800) 518-5975
http://www..sportsactivewear.com
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67
Overview:
Market New Age products through online sales. The category of New Age products
covers quite a number of different product lines. Many of the categories have a number of
specific products within that category.
Incense:
Triloka Incense
Mini Stick Incense
Powdered Incense
Herbal Scents
Perfume Stick Incense
Botanical Stick Incense
Charcoal Incense
Oils:
Allspice
Amber
Ambergris
Anise
Apple Blossom
Basil, Sweet
Bay Laurel
Bayberry Benzoin
Bergamot
Internet Business Idea #6
New Age Products
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Birch
Black Pepper
Blue Nile
Cajeput
Camphor
Cardamom
Carnation Cedar
Cinnamon Leaf
The New Age Products Industry is a large industry with active trade groups, shows,
wholesale suppliers, and retailers.
A recent International New Age Trade Show (INATS) met at the Denver Merchandise
Mart and demonstrated continued growth in traditional New Age book categories and
in nonbook sidelines, new imprints aimed at teen readers, and a wary optimism from
independent booksellers.
This year’s show offered 1,383 buyers (up from last year’s 1,147) and 251 exhibitors.
There are many small successful New Age Product marketers. Los Angeles based Bodhi
Tree is celebrating 30 years in business this year. Another marketer of New Age Products,
Snitkin invested more than $250,000 to double the size of his 11-year-old store, West
Bookshop in Seattle to 6,600 square feet.
Buyers:
The majority of New Age Product buyers describe themselves as being liberal, concerned
about the environment, peace loving, and spiritual.
Front End Methods:
The majority of New Age Product direct marketers maintain web sites where orders can
be placed. Because there is such a vast amount of different products, the web is an ideal
place to list all of the products without incurring heavy printing costs.
Most direct marketers with web sites all offer some of the following:
• Purchasing with Major Credit Cards
• Secured Transactions
• Contact Information
• Informational Sections
• Color Pictures of Products
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Back End Methods:
Back end orders are almost a necessity for survival in this industry since average order
sizes can be smaller than many other industries because the retail prices for many products
can be low.
But because many of these items need to be replenished repeatedly such as candles,
fragrances, and oils; back end orders are naturally generated.
Some techniques for generating back end sales are:
• Always including promotional mailers with each order fulfillment.
• Offering a free e-newsletter with educational information and promotions of new
products.
• Special promotions either online or through mail with discount prices on certain
product lines.
• Offering special deals on related products when a customer buys, such as offering
candle holders when the customer purchases candles.
Your Product’s USP:
Buyers of New Age Products have certain needs that you must be able to fill to compete
in this industry.
Quality — Many new age products are consumable in some form, such as fragrances
and oils. If the quality is inferior, you will not obtain the repeat sales that are necessary for
success in this industry.
Low Prices — There are many competitors selling New Age Products and many of
the products sell for very low prices sometimes, even fewer than five dollars for some
products. You will need to have attractive pricing to compete for your customer’s dollars.
Spiritual Fulfillment — This is one area that strong copywriting skills will be of great
value. The purchasers of New Age Products are not just looking for physical products.
They are seeking to find some kind of internal fulfillment from their purchases. By being
able to portray yourself as a vendor who can help the customer find this fulfillment, you
can build a strong loyal customer base.
Product Selection — The buyers of New Age Products have wide ranging tastes and
to be successful you’ll need to establish yourself as a direct marketer with a wide range
of products. For example, in the candle category there could be over 25 different types of
candles. The same holds true for fragrances, oils, and some of the other categories.
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Sourcing:
There are quite a few suppliers of New Age Products. Below is a publisher of a directory
of wholesale suppliers and then a listing of several different actual suppliers.
New Age Wholesale Directory:
LifeQuest
P.O. Box 1564
Newport, OR 97365
Wholesale Suppliers:
Alternative Market Place Wholesale
PO Box 181088
Utica, MI 48318
Tel: (248) 852-1109
Ventana Catalog
1000 W. 4th St. #200
Ontario, CA 91762
Tel: (888) 220-2000
The Natalie Lynn Company
925 Walnut Street
Traverse City, MI 49686
Tel: (800) 497-4108
Dymecs, LLC
P.O. Box 613
Bay Shore, NY 11706
Fax: (212) 214-0876
info@horoscopestore.com
CandlePeople, Inc
http://www.theshoppersdream.net
webmaster@theshoppersdream.net
Pricing and Markup:
The competition in this category in pricing is very competitive, so you will need to be
able to keep your prices in line with other direct marketers.
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Because many products are sold relatively cheaply, it will be necessary to generate multiproduct
orders. In order to accomplish this, you may want to consider a program offering
discounts for orders over a certain size or quantity.
Below is a sampling of average pricing of direct marketer’s New Age Product lines to
give you an idea of what kind of revenues you might be able to generate.
• Fragrance Stick $2.50
• Oz. Bath Salts $6.95
• Fluid ounce of oil $7.50
• Crystals $1.00
Getting Started
There are several different industry trade groups or other consultants, which can be of
great assistance when starting out. Below is some contact information:
New Age Retailer
Continuity Publishing Inc.
1300 N. State St., Suite 105
Bellingham, WA 98225
Tel: (800) 463-9243 or (360) 676-0789
Fax: (360) 676-0932
New Age Marketing Consultants
Free Newsletter on Marketing New Age Products
Susie and Otto Collins
Tel: (740) 772-2279
http://www.newagemarketingtips.com
At first you will probably need to purchase on a cash basis from suppliers, but you
may be able to obtain credit terms once you’ve been doing business for a while. Some
distributors may require either proof of a business license or a sales tax number to buy
wholesale.
Requirements:
There are no special licenses required to market New Age Products. There are many
wholesale suppliers of these products and many that are “mom and pop” type operations,
so while some may demand verification of your business such as bank account information,
tax I.D., or numbers; there will be suppliers available even if you don’t have these things, in
particular, if you simply pay cash for your products.
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Restrictions:
While most of these products don’t have many government regulations, there are some
categories that you need to use with caution.
When promoting any product that is supposed to improve a buyer’s health, you must
comply with all FDA Regulations. Their contact information is below:
Food and Drug Administration
5100 Paint Branch Parkway
College Park, MD 20740
Tel: (301) 436-2317
http://www.fda.gov
Insider Tips:
• The buyer of New Age Products relies heavily on emotions to make purchases so
using copy that inspires emotional reactions has proven to be very effective. Several
successful direct marketers use copy such as: “Set moods by emphasizing candle
colors” or “Sit back, relax, and inhale the aroma.”
• Testimonials have proven to be very successful in driving sales of New Age
Products, especially testimonials from users of products that improve health.
• Creating and maintaining a VIP e-mail list with information on specials and
new products is used by quite a number of successful New Age Product direct
marketers.
• Offering a Q & A section on your web site that offers valuable information is a great
way to build customer loyalty that is so important because of the need for repeat
sales in this industry.
How To Learn More:
Below is a list of online competitors that you might want to study:
Elysian Group
32-34 High Street
Scotter Lincolnshire DN21 3TW
United Kingdom
Tel and Fax: +44 (0)1724 761404
admin@elysian.co.uk
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Red Wheel/Weiser
P.O. Box 612
York Beach, ME 03910-0612
Tel: (207) 363-4393
Fax: (207) 363-5799
http://www.redwheelweiser.com
Bright Blue Moon
779 Autumn Dr
Otsego, Mi 49078
www.brightbluemoon.com
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75
Overview:
The pet industry is a major segment of the U.S. economy with American pet owners
spending over $26 billion on their pets last year. With the humanization of pets and a new
product boom, pet supplies themselves are expected to exceed $8 billion by the year 2007.
Recent growth in all segments of the pet industry has provided an opportunity for both
existing players and new entrants that have been increasingly active since the beginning of
the 1990s. Some of the reasons behind these changes are:
• Changing demographics
• New lifestyle trends
• A shift in American attitudes towards pets
• A growing number of competitors
• Consolidation among manufacturers, retailers, and service providers
• Globalization of the American economy
• Explosive growth of e-commerce has transformed the maturing pet industry into a
dynamic, highly competitive environment.
Internet Business Idea #7
Pets
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Three categories of pet supplies make up the bulk of the market share in sales volume.
1. Dog and cat accessories such as collars, leashes, carriers, beds, grooming products,
and feeding bowls are a lucrative market, accounting for national sales of more than
$1.3 billion in 2003.
2. Sales of flea and tick products totaled $1.1 billion, with topical cream as the top
selling flea and tick remedy.
4. Fish supplies account for the third-largest segment of the pet supplies market.
There are several other large markets for pet supplies as well:
• Approximately 50% of bird owners have more than one. Birds are inexpensive pets
and require little attention. They are more likely to be owned by people who live in
apartments than in houses.
• Reptiles and amphibians, including snakes, turtles, and lizards became popular
alternative pets in the1990s; but still account for a small percentage of the overall
pet population. Ownership of these pets is not expected to grow during the next
five years.
• Small mammals, including rabbits, ferrets, guinea pigs, hamsters, and gerbils have
shown a slight increase in popularity in the past decade, with ownership growing at
an annual rate of 1.2%. This rate is expected to continue over the next five years.
There are many different retail distribution outlets for pet supplies including direct
marketers. Below is a current breakdown in percentages of retail distribution channels:
• pet superstores — 29%,
• mass merchandisers — 27%
• supermarkets — 21%
• independent pet stores — 10%
• veterinarians — 8%
• catalogues and mail order, on-line sales, hardware, drug, and convenience stores
— 5%.
There are many types of products in the pet supply industry:
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Dogs:
Behavior Training:
Anti-Bark Devices, Chew Control, Choker Chains, Containment, Electronic Training,
Housebreaking, Hunting, Muzzles, Prong Collars, Repellants, Stain & odor Removers,
Throwing Dummies, and Whistles
Accessories:
Choker Chains, Collars, Feeders & Waterers, Harnesses, I.D. Tags, Leads, Prong Collars,
Sanitation & Clean Up, Tie-Outs Doors, Gates & Ramps Grooming Aids Brushes, Clippers
& Blades, Colognes & Deodorants, Combs & Shedding Tools, Nail Trimmers, Scissors,
Shampoos & Conditioners, and Topical Skin Care
Health & Nutrition:
Anti-Mating, Dental Care, Ear & Eye Care, Food, Treats & Biscuits, Infant Care,
Supplements, and Stain & Odor Removers
Kennels & Travel Carriers
Cages, Carriers, Kennels, Play Pens, and Houses
Pest Control:
Fly Control, Indoor Control, Outdoor Control, Shampoos & Dips, Sprays & Collars, and
Topical Flea Treatment
Toys:
Edible Toys, Hooves, Ears & Bones, Latex Toys, Miscellaneous, Nylon Chews, Rawhide,
Rope Toys, Rubber Toys, Stuffed Toys, and Vinyl Toys
Cats:
Beds & Furniture
Behavior Training
Doors & Gates
Grooming Aids
Health & Nutrition
Kennels & Travel Carriers
Litter, Litter Boxes & Accessories
Pest Control
Toys
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Fish:
Decorations
Filters, Media, & Accessories
Food, Health, & Maintenance
Lighting & Heating
Pumps & Accessories
Tanks & Habitats
Water Testing & Conditioners
Small Pets (Hamsters & other rodents):
Cage Accessories
Cages
Foods, Treats & Chews
Health Supplements
Buyers:
According to The U.S. Market for Pet Care Products and Pet Supplies, 5th Edition, a newly
published Packaged Facts report by MarketResearch.com, there is a trend that aging baby
boomers are growing rapidly as purchasers of pet supplies because they increasingly view
their pets as family members.
As empty nests become refilled with dog beds and litter boxes, older adults have new
ways in which to spend their money and impart their lifestyles and attitudes. Natural and
health-oriented products are big with this demographic, and similar products for pets —-
natural cat litter, oral care products, supplements —- are poised to have a big impact on the
overall pet supplies market.
In addition there is a large group of young adult pet owners and traditional families that
are major buyers of pet supply products.
The pet food market buyers are also divided into segments:
Economy Brands — which are generally low in quality and price, and are often sold as
generic or no-name brands.
Mainstream Brands — which are currently the best-selling segment of pet food. They
are complete and balanced foods sold at affordable prices.
Premium Brands — which are more expensive than mainstream brands. They are
generally single-serving meals that provide all essential nutrients.
Super Premium Brands — which provide optimum nutrition for specific stages of a
pet’s life, such as puppy food, or for a specific type or size of animal. This segment also
includes weight-control food.
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Front End Marketing:
Your web site should contain many pictures of the products and model animals, a
section for a “cutest pets” photo gallery, secure online ordering, and newsletter sign-ups.
Back End Marketing:
There are numerous methods of driving back end pet supply sales, but the most effective
ones are the kinds that push the emotional buttons of the pet owners.
• One nice technique is to have a pet of the month featured on your web site. You can
allow pet owners to submit new photos every month with a different pet featured
each month only announced on the web site where you will also have promotions
for your products.
• Offering free e-newsletters with valuable information regarding taking care of
pets will assure that your prospects will eagerly read your newsletter and the
promotions you include along with the articles.
• Being able to offer new “breakthrough” nutritional products that can offer the
buyers hope for better health for their pets will have a strong likelihood of
generating back sales.
Product Sourcing:
There are many wholesale and manufacturing sources for pet supply products. Below is
a sample list of a few:
Animal Brands
One School Street
Califon, New Jersey 07830-4341
Tel: (908) 832-9557
Fax: (908) 832-9310
E-mail: info@animalbrands.com
Glo Marr Products
400 Lincoln St.
Lawrenceburg, KY 40342
Tel: (800) 228-7387
Pet & Garden Manufacturing Plc Incorporating
The Old Creamery
Queens Road | Sanquhar
Dumfriesshire | Scotland DG4 6DN | United Kingdom |
Tel: +44 (0) 1659 50141
Fax: + 44 (0) 1659 50142
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Petersen Pet Provisions
203 6th Ave.
Greeley, CO 80631
E-mail: info@petersenpet.com
Prevue Pet Products
224 N. Maplewood Ave.
Chicago, IL 60612
Tel: (800) 243-3624
E-mail: customerservice@prevuepet.com
Pricing and Markup:
Because this is such a fiercely competitive industry, you’ll need to keep your prices in
a competitive range with the other players. Below are some various sample prices to give
you an idea of the price ranges of pet supply products.
Dogs:
$6.99 - Chewy Pal Dog Toy - Dog
$13.99 - Greenies Dog Treats - Regular - 14 pack
$46.70 - comfort pet warmer
Cats:
$19.07 - Kitty Nest
$28.62 - Cat Lounger
$34.50 - Kitty Window Perch
$54.56 - Automatic Cat Feeder
Miscellaneous Products:
• Penguin on Wheels - Price: $ 1.99
• Pet Food Can Covers 3 Pack - Price: $ 1.69
• Cosmic Kitty Herbs - Price: $ 2.39
• SAM Toob-A-Links - Price: $ 2.69
• Betta Bio-Gold - Price: $ 2.69
81
Getting Started:
A good source of information in getting started is industry trade associations. There are
several in the pet supply industry.
Manufacturers Association, Inc.
255 Glenville Road
Greenwich, CT 06831
Tel: (203) 532-0000
Fax: (203) 532-0551
E-mail: info@appma.org
Pet Industry Joint Advisory Council (PIJAC)
Suite 400
1220 19th Street, NW
Washington, DC 20036
Tel: (202) 452-1525 / (800) 553-7387 (members only)
E-mail: info@pijac.org
At first you will probably need to purchase on a cash basis from suppliers, but you
may be able to obtain credit terms once you’ve been doing business for a while. To buy
wholesale, some distributors may require either proof of a business license or a sales tax
number.
Restrictions:
There are no special licenses required to sell pet supplies. However, there are some
regulations about products that are consumed by pets internally as well as some pesticides,
cosmetics, and grooming products.
In addition to the FDA, two agencies oversee aspects of the U.S. pet food industry and
have an impact on pet supply regulations:
Association of American Feed Control Officials (AAFCO) and the National Research
Council (NRC). The AAFCO was established to develop nutritional and labeling standards
for pet food and to promote uniform regulations between states. The NRC has no
regulatory responsibilities but makes nutritional recommendations to the AAFCO based on
research. The contact information for these groups is below:
National Research Council
2101 Constitution Ave. NW
Washington, DC 20418
Internet: http://www.nas.edu/nrc
Committee on Animal Nutrition
Tel: (202) 334-3062
Fax: (202) 334-1978
E-mail: ckirk@nas.edu
http://www.nationalacademies.org/catdog
82
U.S. Department of Agriculture (USDA)
14th St. and Independence Ave. SW
Washington, DC 20250
Tel: (202) 720-2791
Internet: http://www.usda.gov
Insider Tips:
Direct marketers in the pet supplies industry have found that certain techniques are
proven to help increase sales.
Gift Certificates — The use of gift certificates is effective in other retail markets and
has proven to be in pet supplies. By offering gift certificates you allow for other people to
spend money on the pets of people they know and care for who otherwise might not feel
confident enough to make a selection themselves.
Catalogs — While you may not want to simply mail catalogs to lists you may acquire,
you will definitely want to use catalogs with pictures of cute pets to drive sales.
Customer Service — 7 days a week 24 hours a day - Once you have a sales level that can
accommodate the cost of this feature, it’s worth considering, particularly if you market high
end pet supplies. Many people are highly emotional about their pets and if you can answer
their concerns any time —- day or night — you can build a strong loyal clientele.
Free Shipping — If you offer free shipping for orders over a certain price, you will find
many customers making sure to exceed this minimum level. Interestingly enough this
tactic works in many other direct marketing businesses, but it has most definitely shown to
be effective in this industry.
To Learn More:
Doctors Foster & Smith
P.O. Box 100
Rhinelander, WI 54501-0100
Tel: (800) 381-7179
http://www.drsfostersmith.com
R.C. Steele (Petsmart)
1989 Transit Way
Brockport, NY 14420-0910
Tel: (716) 352-9160
http://www.petsmart.com
83
Overview:
You will market audiotapes or CD’s via a web site and e-mail. There are many different
types of audio products that can be marketed, such as human resource training programs
for businesses, instructional language programs, sound effects, audio books, original
music or entertainment, and commercial musical. Because the commercial music industry
is dominated by several major industry players with hundreds of millions of dollars in
resources, this category will focus on other types of audio products that can be marketed
without competing against such well-funded competitors.
There are some very successful businesses in this category. To give you an idea of the
potential market, take a look at Audio Book Club, which sells over 65,000 audio books
through mail order, and the Internet.
Another direct marketer of audio products, Books on Tape, carries the world’s largest
selection of unabridged audio books — about 3,000 titles — and generates in excess of $10
million in annual revenue.
Buyers:
As noted in the overview section, there are many different types of audio products that
can be marketed. As a result of the broad range of products, there are many different types
of potential buyers for audio products.
The buyers for audio products vary greatly. There is a large market for personal selfimprovement
audiocassette courses, such as “self image,” “learning to meet members
Internet Business Idea #8
Audio Products
84
of the opposite sex,” and “persuasion courses.” Other audio products include business
courses, academic study courses, and real estate or investment courses. Besides courses
there are many other audio tape products, such as the marketing of royalty free music,
sound effects, audio books, and original music and comedy.
Front End Marketing Methods:
With the constant growth of on-line sales, you will want to have a web site that allows
you to market your audio products possibly with samples or sound bites from the
products. There is also a very strong growth with companies that actually sell the audio
products by allowing consumers to download them online.
Back End Marketing Methods:
Once you have gotten your customer to order from you, you will want to continue
to announce newly available audio products that are similar to the customer’s previous
orders.
Additionally, there may be opportunities to market other related products. For example,
if you are selling instructional music audio products, you could also sell sheet music to
your customers.
Your Product’s USP:
You will need to build either an identity for the specific audio products that you sell or
the way in which your company can offer audio products to customers. You will need to
offer something that makes customers want to buy from you. Maybe your audio products
are very difficult to find or you have an instructional system that is unique and very
effective.
Sourcing Your Product:
If you are going to produce your own audio products, you will have to decide if you
are actually going to do the audio production and editing yourself or hire a professional to
do it. If you don’t know much about doing professional audio recording, at least you may
want to start by using a professional. Once you have produced a “master” copy, you will
then reproduce the audio product you will sell from the master. If your operation is small,
you may want to do your own duplicating with your own equipment. This is especially
true if you’re going to market CDs that can be duplicated with professional quality from
almost any computer.
If you are doing high volume, then you will want to have a duplicating house do the
copying for you. Every major metropolitan area has ample numbers of audio production
services that are available in the local yellow pages or that you can find via the Internet.
85
Pricing and Mark-up:
A general rule of thumb requires that in direct marketing you need to have at least a 5:1
mark up. If you are selling audio products that you are producing yourself, this will be easy
to achieve. The actual cost per completed audio product can be as low as a $ .50-1.00 — less
if you are mass-producing them. Many direct marketers have healthy per order averages,
such as Soundsprints, which is sold 100% and has an order average of $60. The other main
force that will guide your pricing will be the competition. In most categories there will
be some other types of competitors and if you keep your prices in line with established
competitors, you will know that your prices will be within a range of what the market can
bear.
Getting Started:
First, you’ll have to choose what kind of product you wish to sell. The easiest ones to
have a high profit margin with and less copyrighting and sourcing concerns with are those
that you can create yourself. Remember that you don’t have to be a musician or a language
teacher to sell audio products on these subjects; you just need to be able to hire someone
that is.
Once you’ve determined what kind of audio products you wish to sell, you’ll need to
develop some inventory.
Because this is a product intensive business, you’ll also need to make decisions on how
you manage your inventory and your fulfillment.
Restrictions:
There are no special licenses or other legal requirements to be in the business of selling
audio products; however there are laws, which regulate your offerings. Most importantly
make sure and do not make any false claims or misleading statements or make illegal
offerings.
In the marketing of audio products there is a common practice called, “the negative
option.” This involves a marketing program in which the customer regularly receives
literature describing the product; and then if the customer doesn’t wish to have the product
automatically sent, the customer must send back a return card declining to have the
product sent. This technique has been proven to be highly successful with audio products,
but there are specific guidelines, which regulate the “negative option” practice. To obtain
these guidelines or other useful publications see below:
Public Reference
Federal Trade Commission
Washington, D.C. 20580
Tel: (202) 326-2222
TDD: (202) 326-2502
86
Depending on what kind of audio products you’re selling, you may have to comply with
various copyright laws.
As with all questions of legality, it’s strongly recommended to consult an attorney that is
experienced in this area before you launch your business.
Insider Tips:
An often-overlooked marketing technique in many categories of direct marketing, but in
particularly of great importance in the marketing of audio products is the guarantee. One
direct marketer, The Teaching Company out of Springfield, VA., offers taped lectures by
prominent professors of philosophy, physics, economics, astronomy, literature, history, and
other academic subjects. They offer a LIFETIME SATISFACTION GUARANTEE. If you are
not completely satisfied with the purchase you have paid for, you may return it with a note
describing why you are disappointed and they will issue a full refund or credit your charge
card for what you paid for the course or courses.
The kinds of courses they offer are not small, nor are they inexpensive. One is “How
to Listen to and Understand Great Music” by Professor Robert Greenberg of The San
Francisco Conservatory of Music. You get 48 lectures of 45 minutes on audio cassette tapes
for $149.00. With this kind of confidence in their own products, it’s not hard to see why
consumers feel the same when it’s time to order.
A guarantee should do all of the following:
1. Assure your customer of the quality of your product.
2. Spell out your terms and conditions clearly.
3. Specify a generous time period for evaluation.
4. State what you will do if the customer is dissatisfied.
You should state your guarantee unequivocally: Unconditionally Guaranteed. No-Risk
Guarantee. 100 Percent Satisfaction Guarantee. No Questions-Asked Guarantee.
Another marketing technique used by direct marketers of audio products is to build
a loyalty program. Quite simply a loyalty program is any program, which rewards your
customer for continuing to do business with you. Airlines use them in the form of “frequent
flier miles” and you can create your own program. For example, if the customer purchases
the “Learn Spanish At Home” courses 1-4, then they receive number 5 for free.
Another advantage audio products have over most others is that prospective customers
can listen to actual samples of the products on the phone. You can set up a system in which
customers can sample the products manually with a live person or through a computer
system that you set up. This kind of option is especially useful for marketers of sound
effects or royalty free music, but you can use it with many audio products.
87
Studying Competitors:
Soundprints
333 Main Ave.
Norwalk, CT 06851-1552
Tel: (203) 846-2274
http://www.soundprints.com
Sound Ideas
105 W. Beaver Creek Rd. #4
Richmond Hill
Ontario, Canada L4B 1C6
http://www.sound-ideas.com
Homespun Tapes
Box 340
Woodstock, NY 12498
Tel: (845) 246-2550
Fax: (845) 246-5282
http://www.homespuntapes.com
88
89
Overview:
There is a broad range of self-improvement subjects as well as how the information is
conveyed. It’s possible to market written publications, video, and audio recordings as well
as live seminars. Your courses can cover everything from being a more effective speaker or
businessperson to how to develop and maintain better personal relationships.
Buyers:
The self-help industry is very large and is expected to grow 12.9% annually through
2004. According to Marketdata Enterprises, Inc. there is $4.7 billion in estimated yearly
sales of self-improvement products and $400 million in yearly sales of self- improvementrelated
audio books.
The major category of the market is comprised of general motivational, spiritual, and
self-help products and programs — 32% of total sales. Weight loss and exercise are major
categories of self-improvement, representing 16% and 25% of the market, respectively.
Some specific types of self-help programs being successfully directly marketed are weight
loss programs; stop smoking programs, motivation programs, relationship programs,
language programs, and financial improvement programs.
The self-improvement industry has many companies that generate large revenues. For
example, The Self Care Catalog, which provides “healthy living” products, generates
revenues of over $20 million annually. And another direct marketer, Natural Journeys has
sold over 40,000 units of its course, which teach women how to feel confident about their
sexuality and their place in the world.
Internet Business Idea #9
Self Improvement Courses
90
Primary Marketing Method:
You’ll be able to market these products with your own web site and via e-mailings to
select lists.
Back End Marketing Methods:
Once you have gotten your customer to order from you, you will want to up sell your
customers as well as continue to announce newly available self-improvement courses
similar to the ones the customer has previously ordered.
One direct marketer who does a very good job of up selling is Tony Robbins’ selfimprovement
courses. They start by convincing the customer to buy a 3 volume set that
prices at $49.95 and move the customer up to a continuing purchase program of buying
new monthly volumes that results in the customer moving up in the end to purchasing a
$250 course.
Your Product’s USP:
Your USP will need to focus mostly on the unique way in which your self-improvement
course can help the prospect improve certain areas of his life. Many self-improvement
courses are heavily dependent on the personality behind the course. For example, Tony
Robbins’ courses rely on promising to provide the prospect with the unique insights of
Tony Robbins and the tremendous improvements that can result in your life from adopting
his principles. If you don’t have access to a personality as dynamic and as well known
as Tony Robbins, you can establish credibility through other means such as academic
credentials and even more convincing, the successful results of people who’ve used the
course.
Sourcing Your Product:
While it is possible to distribute other party’s self-improvement courses, it is
undoubtedly more profitable if you can create your own. Remember, even if you don’t feel
you’re qualified to create such a course, you can still market your company’s own original
courses by simply acquiring the services of someone who is capable of creating such a
program.
Your actual program can be a home study course or you could market conferences or
seminars. If you are going to create your own home study course, it may consist of printed
material, video and audiotapes, and web-based interactive components.
For video and audio products: If you don’t have the expertise to produce professional
level products, you can find many companies with this capability in the local phone book
of any major metropolitan area or the Internet.
91
Pricing and Mark-up:
A general rule of thumb requires that direct marketing needs at least a 5:1 mark up. If
you are selling self-improvement courses that you are producing yourself, this will be easy
to achieve since it is the information and not the physical product that creates its value.
Self-improvement courses can range from as low as $19.95 for a little booklet to several
thousand dollars. The median range for self-improvement courses is in the area of $79.95
-$300. Besides simply calculating to charge in order to be profitable, it is a good idea to
study similar competitors products so you can have a better idea of what prices are already
proven to work in the marketplace.
Restrictions:
There are no special licenses required to sell self-improvement courses. However, if you
are giving out specialized advice in an area that is usually served by licensed professionals
such as doctors, lawyers, or accountants; there may be legal constraints.
You should also be careful about not making false claims or claims that are simply not
permitted under the law. Some areas such as health improvement courses may fall under
the jurisdiction of several different regulatory government agencies. Before embarking
on your venture, it’s highly recommended that you seek the advice of competent and
experienced legal counsel.
Insider Tips:
When marketing to your target it’s important to position your product in a way that
will make sense to the prospect. The AfterMarket Company for The Midwest Center
sought to generate orders for “Life Without Limits,” an audiocassette and workbook
program designed for people who suffered from chronic anxiety. In this campaign, “Life
Without Limits” was positioned as the next logical step in the self-improvement process for
customers who had completed the Midwest Center’s “Attacking Anxiety & Depression”
program. The campaign focused on expressing sympathy, compassion, and a real solution
to the problem of severe anxiety.
Another technique to generating new self-improvement course orders is to target those
customers that ordered before and are now inactive.
Direct marketers of self-improvement courses also find that believable testimonials are
essential. Tony Robbins incorporates testimonials from world leaders, sports, and music
figures, as well as everyday people.
If your product is successful in the direct market arena and has something new to offer,
you may want to eventually expand to retail distribution where you can really cash in.
Bodywisdom Media markets a DVD that is unique because one DVD has many titles such
as Yoga for Inflexible People, Yoga for Athletes, and Yoga for Everybody; as well as 15-
Minute Office Yoga on CD-ROM. The product is new, but already selling in Target, Best
Buy, Borders, and Wild Oats. The titles are now also top sellers at Amazon.com.
92
Competitors to Study:
Division of Creative Living
272 First Avenue,
Suite 9B,
New York, NY 10009 USA
Tel: (800) 230-8870 – (416) 227-9665
E-mail: info@creatingpower.com
http://www.creatingpower.com
UniversalClass.com Inc.
56 North Plank Road, Suite 1-311
Newburgh, NY 12550-2116
E-mail: customercare@universalclass.com
http://www.self-improvement-courses.com
Bridgeworks Inc.
5808 McLeod Rd. N.E. Suite J
Albuquerque, NM 87109
Tel: (888)-514-1400 - (505) 837-1400
http://www.bridgeworks.com
93
Overview:
You’ll market home health tests that diagnose a wide range of conditions or illnesses.
Buyers:
The home health tests industry is a very large and active segment of the direct marketing
industry. Some of the largest categories in this segment are Date Rape Drug Tests, Diabetes
Tests, Drug Screening Tests, Influenza Tests, Lipotone Weight Management Tests, Male
Fertility Tests, Menopause Tests, Ovulation Tests, Pregnancy Tests, Blood Pressure Tests,
and Prostate Disorders Tests. The blood pressure home health test kits alone were in excess
of 244.4 million last year.
Front End Marketing Method
The most likely secondary method for front-end marketing will be operating a web site
and e-mail solicitations. There are many direct home health test competitors with web
sites that you can study. To locate them, just key in home health tests into any major search
engine.
Back End Marketing Methods:
The home health test market can offer a substantial number of back end opportunities
varying upon the type of test products you market. If you market products that test for
certain conditions that may require some sort of treatment, you could potentially also
market such treatments. For example, if you sold a men’s fertility test product, you could
also sell men’s fertility supplements.
Internet Business Idea #10
Home Health Tests
94
Your Product’s USP:
You will need to convince your prospective customer that you can offer very specific
advantages when they purchase from you. Some of the benefits that you can offer could be
saving money by having discount prices, ensuring privacy by having a very discreet order
fulfillment system, or giving the prospect peace of mind by only offering first rate, wellknown
brands of test kits that have been proven safe.
Sourcing Your Product:
There are many sources for wholesale supplies of home health testing products. A search
through business directories or any major search engine on the Internet can provide you
with many leads. However, here is a sampling of suppliers to give you an idea of product
lines, pricing, and terms.
Craig Medical Distribution, Inc.
1185 Park Center Drive
Building P
Vista, CA 92083-8305 USA
Tel: (760) 598-7170
Health Care Concepts
7124 Hull Street Road
Richmond, VA 23235
Toll Free: (888) 436-3669
Tel: (804) 276-7666
Fax: (804) 276-0675
Shilog
P. O. Box 1887
3551 Mt. Moriah Road
McAlester, OK 74502
Tel: (800) 574-4868
Fax: (918) 423-5569
Pricing and Mark-up:
A general rule of thumb in direct marketing requires that you need to have at least a 5:1
mark up. Besides simply calculating what you’ll need to charge in order to be profitable, it
is a good idea to study similar competitors products so you can have a better idea of what
prices are already proven to work in the marketplace.
95
Restrictions:
You do not need to have any special licensing to sell home health tests. However, there
are many government regulations pertaining to the sale of home health tests.
One private trade group that you may want to check with acts as a liaison between
government regulatory bodies and private industry:
The Association of Medical Diagnostic Manufacturers
555 Thirteenth Street NW 7W-404
Washington DC 20004
Tel: (202) 637-6837
You should also carefully review the available information on government regulations
from the FDA. They can be contacted at:
Food and Drug Administration
5600 Fishers Lane
Rockville, Maryland 20857
Tel: (888) INFO-FDA - (888) 463-6332)
http://www.fda.gov/
Finally, it is strongly suggested to consult legal counsel that has experience with this
type of business because violations of government regulations can result in civil and, or
both, criminal liability.
Insider Tips:
One method that direct marketers have found to be successful is to make their web
site appear as if it is almost an informative newsletter and not promoting sales. Articles
describing the uses and benefits of the testing devices can be printed along with “space
advertisements” for your particular products spread out through the web site. If you don’t
feel comfortable writing about the products, many suppliers have ready-made literature
that they will provide for you.
Another powerful tool for marketing your home health tests is endorsements. These
endorsements can be from well known or celebrity personalities that use the products.
Or the endorsements can come from people with academic or professional credentials. In
addition, professional organizations, and sometimes-even approvals from government
agencies can serve as endorsements. A very commonly used tool in this category by
direct marketers is “Doctor Approved.” If you’re going to use an actual person for the
endorsement, including a picture of the person is highly recommended.
Many people that buy home health test kits have a recurring need to use these products
and thus can be motivated by special promotional pricing offers. Once they begin to make
their purchases from your company, they will be more inclined to just continue to buy from
your company as long as your regular prices are competitive. A time sensitive type offer
has proven effective for a number of direct marketers in this category.
96
Direct marketers in this category have also found that offering discreet ordering options,
allowing people to order without personal human contact, increases response as well
promoting discreet packaging for the delivery of the products.
Studying Competitors:
Medical Graphics Corporation
350 Oak Grove Parkway
St. Paul, Minnesota 55127
Tel: (651) 484-4874
Fax: (651) 484-8941
http://www.medgraph.com
Acon Laboratories, Inc.
4108 Sorrento Valley Boulevard,
San Diego, CA 92121, USA.
Tel: (858) 535-2030
E-mail: info@aconlabs.com
http://www.aconlabs.com
Medical Home Products, Inc.
100 Second Ave. South
Suite 300N
St. Petersburg, FL 33701
E-mail: contact@medicalhomeproducts.com
http://www.medicalhomeproducts.com
97
Overview:
You’ll market real estate investment courses primarily by sending “mail packages” to
lists of potential buyers of real estate investment courses that you will rent from list brokers
and your own “in-house” list that you will gradually build. These real estate courses will
teach customers how to buy real estate with little or no money down, how to get rich in
foreclosures and probate properties, how to finance creatively, how to get pre-qualified for
mortgages, and how to find bargain properties for pennies on the dollar.
Buyers:
The market for potential buyers of your courses is vast for several reasons. Both people
without much wealth are interested in learning how to obtain riches in real estate without
capital and people with substantial assets are interested in learning how to increase their
wealth substantially through real estate. With the maturation of the “baby boomers” and all
the negative media questioning the viability of social security, this huge market is hungry
for ways to secure its long-term prosperity.
The reason they are drawn to real estate is simple: real estate has created more
millionaires than any other investment vehicle in this country. In addition, a career in
real estate investing sounds attractive because you work your own hours, it’s one of the
safest kinds of investment, and it’s prestigious. Furthermore, current trends in the real
estate market favor small real estate investors. According to Survey of Real Estate Trends
2002, Improvements in current conditions were observed in the single-family sector, where
respondents cited higher sales volumes and home sale prices than six months ago. Also
there are tight conditions continuing in residential markets. It’s these markets that your
prospects will most likely see themselves becoming involved in.
Internet Business Idea #11
Real Estate
98
The real estate investment course industry is a very active category in the mail order
industry. Since the real estate course category is very large with many competitors and
products, there are many good lists. For a list of recommended list houses please see the
Fast Start Rolodex.
Primary Marketing Method (front end)
Your primary method of selling will be to send “direct mail packages” to your lists.
You’ll want to test several real estate investment course buyer lists to promote your courses.
Albert B. Ashworth, Inc. uses a 9 x12 34 p. mail package. Another very large direct
marketer with many courses that it sells including making money in real estate is
Nightingale-Conant Corp. Some of their most commonly used packages are 8.5 x 11 16 p.,
9 x 12 16 p., and #10 3 or 4 p. Another large direct marketer, The Hume Group, uses a 9 x12
17 p. and a 6 x 11.5 16-20 p. with a great deal of success.
Many of the competitors in this category maintain web sites, which promote their
different products. Besides, being a vehicle for back end profits, a web site could prove to
be a profitable venue for initial orders if you market the site well.
The television infomercial area has also proven to be a very lucrative source of revenue
for direct marketers of real estate courses. However, keep in mind that infomercials are
expensive to produce and put on television, as well as being very risky for newcomers.
Unless you have an abundance of capital, this would be an area to enter with great caution.
Another potential source of front-end prospects is advertising in publications. In the area
of magazines, you could try advertising in the business opportunity magazines that are
available at every major bookstore.
Back End Marketing Methods:
Once you have gotten your customer to order from you, you will want to up sell your
customers, as well as continue to announce newly available real estate courses with a new
twist to the ones the customer has previously ordered.
One direct marketer of real estate courses, Tyler Hicks, has numerous other courses
besides his primary course on how to make a fortune in real estate. Some of the other
attractive courses he offers are:
• How to Borrow Your Way to Real Estate Riches Using Government Sources
• Refinancing Proposal for a Multi-Family Apartment House
• FHA Multifamily Building Loan Package and Business Plan
99
Your Product’s USP:
Your USP will need to focus mostly on the unique way in which your real estate course
can help the prospect become wealthy in real estate. Many real estate courses are heavily
dependent on the expertise and successful track record of the personality behind the
course; because without that credibility, the prospect will be extremely skeptical. There are
numerous stories in the media about “getting rich” in real estate courses that are negative.
If you don’t have a successful track record in real estate, you should consider hiring
someone or find a partner that does.
Not only will you have to prove to the prospect that your course will work, you will
need to prove that it can work for them — that you have some techniques to teach that
are different from all the other ones out there. Perhaps you know of a way to find bargain
properties other than the typical ideas that are pitched all the time or other “secrets” that
make your courses sound irresistible.
Sourcing Your Product:
While it is possible to distribute other party’s real estate courses, it is undoubtedly more
profitable if you can create your own. Remember that even if you don’t feel you’re qualified
to create such a course yourself, you can still market your company’s own original courses
by simply acquiring the services of someone who is capable of creating such a program.
Your actual program can be a home study course or you could market conferences or
seminars. If you are going to create your own home study course it may consist of printed
material, video and audiotapes and web based interactive components.
For video and audio products: If you don’t have the expertise to produce professional
level products, you can find many companies that have this capability in the local phone
book of any major metropolitan area or the Internet.
Pricing and Mark-up:
A general rule of thumb requires that in mail order sales you need to have at least a 5:1
mark up. If you are selling real estate courses that you are producing yourself this will
be easy to achieve since it is the information and not the physical product that creates its
value. Real estate courses can range from as low as $19.95 for a little booklet to $500. The
median range for study courses is in the area of $79.95 -$300. Besides simply calculating
what you’ll need to charge in order to be profitable, it is a good idea to study similar
competitors products so you can have a better idea of what prices are already proven to
work in the marketplace.
Restrictions:
There are no special licenses required to sell real estate investment courses. However,
if you are giving out specialized advice in an area that is usually served by licensed
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professionals, such as lawyers, by offering instruction on how to write up real estate
contracts; you must be very careful not to cross over into “practicing law.” Before
embarking on your venture, it’s highly recommended that you seek the advice of
competent and experienced legal counsel.
To obtain publications from the FTC that explain federal guidelines on marketing these
kinds of courses contact:
Federal Trade Commission
Washington, DC 20580
Tel: 202-326-2222
TDD: 202-326-2502
Insider Tips:
Segmenting your market can greatly increase your response rates in many different
types of mail businesses, but it is particularly important in this category. The same “mail
package” will not necessarily attain the same results depending on many different factors.
If you’re mailing to prospects who believe they are “serious investors,” they are not going
to be responsive to “mail packages” that explain the basics of real estate. Likewise, business
opportunities seekers with no experience in real estate and little capital are not going to be
responsive to offers that discuss complicated real estate strategies and require substantial
capital.
Another excellent technique to increase orders is to offer premiums. Especially enticing
to prospective real estate course buyers are premiums that offer information on other ways
to finance real estate deals. With the cost of buying real estate, almost every prospect will
need to finance his deals and they are well aware of that. Free bonus booklets that offer
things like, “8 Bonus Surefire Methods to Finance Properties without a Down Payment”
will help drive sales.
Stressing the notion of “unearned income” is a powerful tool in your sales copy when
marketing real estate courses. One of the big attractions that real estate has as a vehicle to
become wealthy is that it’s possible to simply just own it without any work and have it
grow in value substantially. Focusing on the idea that it will be possible for the prospect to
become very wealthy without “working for the money” is a powerful tool when marketing
real estate investment courses.
Studying Competitors:
Real Estate Fortunes
228 West Lincoln Highway, #133
Schererville, IN 46375
http://www.realestatefortunes.com
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Real Estate Investor’s Club of L.A.
4233 Redondo Beach Blvd
Lawndale, CA 90260
Tel: (800) 927-4316
http://www.getrichthrurealestate.com
Like New Books eBook Store
P.O. Box 4118, Wallingford, CT 06492
Web Site: http://www.likenewbooks.com
E-mail: sales@likenewbooks.com
Toll Free: (888) 358-8375
Professional Education Institute (Carlton Sheets)
http://www.carletonsheets.com/
Tel: (800) 603-3942
Gateway Investment Properties, Inc
107 S. West Street, Suite 111
Alexandria, Virginia 22314
http://www.preforeclosure.com
E-mail: support@preforeclosure.com
Customer Service Line: (703) 823-6020 extension 1
Fax: (703) 671-6454
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103
Overview:
You will market tools through e-mail/mail promotions and online sales. The tool sector
is essentially broken down into several different categories:
• Hand Tools are those that are manually powered. Hand tools include anything
from axes to wrenches, pliers, screwdrivers, shears, punches, chisels, hammers, and
toolboxes, hoes, chisels, wedges, and drift pins.
• Pneumatic Tools are powered by compressed air and include chippers, drills,
hammers, and sanders.
• Electric Tools include chainsaws, electric drills, high-grade motors, angle grinders,
impact electric drills, jigsaw cutters, tappers, fasteners, and grinders.
• Garden Tools include hoes, shovels, picks, and spades.
The tool industry, which is a part of the larger hardware industry, is a very large sector
of the economy. The National Retail Hardware Association (NRHA) membership generated
an estimated $186.9 billion in sales last year. Of that number $28 billion was for retail tool
sales.
Some of the largest competitors have very large annual sales; for example, Snap-on Tools
generated $4.5 billion for the full year 2003. The future of the business looks good as NRHA
projects a growth rate of 5.5% annually through 2006.
Internet Business Idea #12
Tools
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Buyers:
While there are women who purchase tools, it is still a sector in which men do the
majority of purchasing.
Buyers who buy enough tools for you to target can be broken down into several
categories. Targeting your promotions to mesh well with your prospects will go a long way
to ensuring successful promotions.
1) Buyers who purchase tools for their business needs:
A) Auto Mechanics
B) Gardeners
C) Handymen
D) Plumbers
E) Home improvement business owners
F) Painters
G) Electricians
H) Others
2) Buyers who purchase tools for a hobby:
A) Home improvement
B) Auto Repair buffs
C) Gardeners
D) Crafts
Front End Marketing:
Front-end sales will be driven by both e-mail mail promotions and web site sales.
Most direct marketers maintain a web site to market their products. In fact, there are
some companies that only sell online. A prime advantage to marketing tools online is that
it’s a product category in which pictures of the products are usually necessary and it’s very
inexpensive and easy to use product photographs online.
Some of the other features that most direct marketers of tools have on their web sites are:
• Secure online ordering
• 24 hour ordering and phone or fax ordering
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• Frequently asked questions section (FAQs)
• Lengthy product descriptions that accompany pictures and price listings
• Money-back guarantees
Back End Marketing
The tool industry offers many back end marketing opportunities because there is a
constant need for replacement of tools and the ability to upgrade as well as purchase
related tools.
• Every product shipment should include literature on related tools or accessories.
• An e-mail club that features a special deal on a tool of the month.
• Follow-up mailings for replacement tools in categories of tools that have a rapid
depreciation from use.
• Offers to upgrade tools to more expensive tools. For example, offering buyers
power tools instead of the manual hand tool.
Your Product’s USP:
Tool buyers have many choices in the marketplace. There are not only many direct
marketers of tools, but there are many retail options from the local hardware store to your
major chains. So it’s imperative that you can offer competitive advantages that will attract
customers.
Be a Discount Seller of Tools — Offer your tools at prices below what a customer’s local
retailer will sell them for.
Offer Great Customer Service — Many more expensive power tools have a lot of
features. If you can offer expertise in explaining these benefits to your customers, they may
buy from you even if your prices aren’t cheaper.
Offer a Wide Product Line — Because a retailer only has limited shelf space, it can only
offer a certain number of tools. As a direct marketer you really have no limitation since you
can easily add pages to a catalog and a web site. By offering a manufacturer’s full product
line and not just the most popular items, you can offer a valuable benefit that can secure
many loyal customers.
Specialize in Prompt Order Fulfillment —- There’s probably no more cost effective
way to make customers happy and generate repeat business than providing prompt and
accurate order fulfillment.
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Sourcing Your Product:
There are many potential suppliers to purchase your products from on a wholesale basis,
both domestically and internationally.
For leads on international sales, an excellent source of suppliers are international trade
organizations:
Indian Machine Tool Manufacturers Association
Plot 249 F, Phase IV
Udyog Vihar, Sector 18
Gurgaon 122 015, Haryana
Taiwan Hand Tool Manufacturing Association
3rd Fl., No. 687-1,
Min Tsu E. Road
Taipei, Taiwan
Tel : ( 02 ) 27152250, 27130667
Fax : (886)-2-27152617
http://www.taiwanhandtools.com
There are also many sources of domestic suppliers. Below is a sampling to get started.
Handy Hardware Wholesale, Inc.
Terry L. Matheson
Drop Ship Program Manager
8300 Tewantin
Houston, Texas 77061
Tel: (713) 388-3628
http://handyhardware.com
Harrison & Bonnini
1122 Harrison Street
San Francisco, CA
Tel: (415) 861-8300
Fax: (415) 552-0796
Handy Hardware Wholesale, Inc.
8300 Tewantin Drive
Houston, TEXAS
Tel: (713) 644-1495
The Stanley Works
1000 Stanley Drive
New Britain, CT 06053
Tel: (860) 225-5111
Fax: (860) 827-3895
http://www.stanleyworks.com
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Pricing:
The tool market can range from products priced as low as a couple of dollars for
screwdrivers to several hundred dollars for a power saw. Because this is a competitive
market, your prices must be competitive with other industry players.
Below are a few sample prices to give you an idea of what kinds of revenues you can
expect to generate.
• Jig Saw Kit $139.99
• Jigsaw Blade $39.95
• Piece Socket Set $74.69
• Angle Grinder $88.88
• Nail gun $199.88
Getting Started:
Various tool suppliers have different requirements to do business with them. Many of
them will want verification of basic business information, such as business licenses, sales
tax numbers, and bank account information.
It may be difficult to obtain credit terms when you first begin, so be prepared to initially
pay cash for inventory. Below is a sampling of one supplier’s requirements to obtain credit
terms:
1. In existence a minimum of seven years under current ownership.
2. Bank rating equals five years at current institution with a balance.
3. On time payment record with at least five trade suppliers.
You can also obtain useful information to plan your start-up by contacting a trade
industry association. Below is the most prominent one in this industry:
National Retail Hardware Association
5822 West 74th Street
Indianapolis, IN 46278
Tel: (317) 290-0338
http://www.nrha.org
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Restrictions:
There are no special licenses needed to enter the tool selling business. However, be
especially aware of these rules that some competitors in this business have had problems
with:
• Misrepresenting discounts - If you use a technique, such as one of the insider
techniques like the “compare with regular price,” be careful not to misstate the
discount or savings.
• Many of the tools in the marketplace have trademarks; so if you use their names or
images in your sales literature, use the correct trademark.
• Make sure that if your money back guarantees have limitations, such as tools can
only be returned unused, that they are prominently and accurately stated on the
ordering page.
Insider Tips:
• Using a “loss leader” also can be effective in driving sales for the tool industry. Pick
one low-priced tool and offer it prominently for an outrageously low price, often
at a just break-even or a loss; so that the customer can’t resist looking through the
sales material and possibly buying some more regularly priced and profitable items.
• Many times buyers of tools have very specific needs and require tools that aren’t of
the more commonly stocked variety. A number of direct marketers have found that
by accommodating special orders they can build a loyal customer base.
• A great promotional technique that more than one direct marketer of tools uses is
to offer a “deal of the month.” This gives you a reason to contact the customer each
month with an offering that the customer will most likely open up and at least
look at.
• A sales generating technique that’s used frequently in this industry is to “compare
with regular price.” This can be done online and in printed sales material. You
simply list a full retail list price along with your “discount” price and highlight the
“savings.”
To Learn More:
Below are a number of online competitors who you might want to study.
Mytoolstore.com
4730 W. Spring Mountain Road
Las Vegas, Nevada 89102-8703
USA
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Tool King
11111 W 6th Ave,
Lakewood, Colorado 80215
http://www.toolking.com
Tel: (303) 963-4511
Toll free: (877) 975-8665
Fax: (303) 963-4512
Advantage Gases & Tools
527 Danforth St.
P.O. Box 8361
Portland, Maine 04102
Fax: (207) 772-3173
http://www.toolsforless.com
Outlet Tool Supply
8040 El Camino Real
Atascadero, California 93422
USA
Tel: (805) 461.7120
http://www.outlettools.com
Tools R Us
5461 Holt Blvd
Montclair, CA 91763
Tel: (800) 819-TOOL
http://www.etoolsrus.com
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111
Overview:
You will market photography equipment and supplies through e-mail, mail and a web
site. Some of the types of merchandise that you will sell are:
• Cameras
• Camcorders
• Multi-mode cameras
• Camera cases
• Camera lenses
• Batteries
• Memory cards,
• Lenses and filters
• Digital camera accessories
• Photography books
Some of the brand names that many direct marketers carry include Kodak, Fuji, Toshiba,
Canon, Sony, Panasonic, and Nikon.
Internet Business Idea #13
Photography Equipment
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The photography equipment and supplies business is a very large business, but there are
dynamic changes that are happening rapidly and must be understood to assure success in
the industry as a direct marketer in the short-range future.
• Digital-still camera sales increased by 35 percent on a unit basis during the first
seven months of 2002, while analog-still camera sales fell by 25 percent.
• According to a study released this week by InfoTrends/CAP Venture, sales of
digital cameras will exceeded those of conventional, film-based (reloadable)
cameras in the year 2003 in North America.
• Digital camera unit sales will grow from 20 million units in 2004, and to 42 million
units in 2005, the same InfoTrends study says. In contrast, film-based unit camera
sales will total 18.7 million this year, 19 million units in 2004, and 18 million units in
2005.
• According to CEA Market Research forecasts, digital camera factory sales will reach
more than $2.9 billion in 2004.
• Film processing activity is declining in the United States further each year.
• Nearly 18 percent of film units processed during the first seven months of the year
were one-time-use cameras — up nearly two percentage points from the yearearlier
period.
While clearly there is still a large market for film-based cameras, there is an
overwhelming trend toward digital cameras and, when film is used, for consumers to use a
“one time use” camera.
Buyers:
There are certain attitudes or behavior patterns that are useful to understand when
making strategic decisions in this business on products to offer for sale and the methods of
marketing them.
The following are buyer breakdowns developed by Chris Chute, senior analyst at IDC,
based in Framingham, Massachusetts.
According to Chute, the average digital camera buyer “doesn’t really know what to look
for,” in terms of features or specifications, and “they are generally concerned with price
and the recommendations of friends” over any specific features or options when making a
purchasing decision.
• About 20 percent of U.S. households will have digital cameras, far below the 60
percent of households that have PCs. This translates into about 20 million cameras
that will be in use by the end of the year.
• The U.S currently makes up about 40 percent of the worldwide market for digital
camera shipments, with Japan close behind. But the Japanese market is more
saturated in terms of households with digital cameras.
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Other buyer information is also available:
• According to the Photo Marketing Association International (PMAI), women are
typically the managers of family memories and represent 60 percent of primary
users of all cameras and camcorders.
• Sales trends reinforce the highly segmented nature of the U. S. camera market.
• Consumers have increased their purchases of relatively inexpensive and easy-to-use
film-based cameras, while at the same time they are raising their demand for the
relatively more expensive and sophisticated digital models.
Front End Sales:
Front-end sales will be driven by e-mail and web site sales. Because a significant percent
of all camera sales come in fourth quarter for the Christmas season — as high as 50%
according to some experts — plan the timing of promotions to reflect that reality.
Online sales will be driven by the operation of a web site that offers online ordering.
With an online store, it is easy and inexpensive to add new products and offer color
photographs displaying the products.
You will also want to be able to accept credit cards, take orders 24 hours a day, offer
hours where customer representatives can be reached by phone, and offer a physical
address for regular mail.
Back End Sales:
There are significant opportunities for back end sales in the direct marketing of
photographic equipment and supplies.
• If you are selling a film-based processing product, you will of course have a chance
to offer new items for sale with each frequent transaction with the processing
customer.
• For all equipment, digital- and film-based, there is the opportunity to offer add-on
products such as filters and lenses.
• Because the customer ends up with a “prized photograph,” there is the opportunity
to sell the customer products, which allow him to proudly display these photos.
• Through the use of different clubs or e-mail newsletters, the customer can be made
aware of new product breakthroughs since this is a technology driven business.
USP:
When consumers purchase photographic equipment and supplies, there are certain
qualities that they look for.
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Quality — When customers purchase cameras and other related equipment, what they
are really doing is purchasing the future pictures they will take and the enjoyment they
will derive from taking these pictures. Thus, they expect that the pictures they will possess
and proudly show will reflect a high standard of quality. They must feel sure that the
equipment they purchase from you will deliver these results.
Competitive Pricing — While pricing may not be the single most important factor when
making their purchases, customers will most likely do some comparison shopping and, all
things being equal, may make their decision based on price. If you aren’t able to offer the
lowest price; you still may be successful by offering other benefits, but your prices will still
need to be in the range of competitors.
Service — Here is an area that you can excel in if you can’t compete on price. You can do
things like offer a 24-hour hotline for customer questions and instant shipping on orders.
Product Selection — One great thing about direct marketing compared to brick and
mortar retailing is that you can offer an enormous variety of product selection without
having to incur the same kind of inventory costs that a retailer with a physical location
would have to in order to have the same selection. A vast product selection can be a strong
competitive edge for a direct marketer in this category.
Sourcing Your Product:
There are many domestic and international sources to purchase your products at
wholesale pricing. The kind of suppliers you use and the terms you receive will be affected
by the kind of volume you are purchasing. Below is a sampling of suppliers:
Maziuk Wholesale Distributors
1251 W. Genesee St.
Syracuse, NY 13204
Tel: (800) 777-5945
http://www.maziuk.com
Wholesalers Direct
http://www.wholesalers-direct.com/
info@wholesalers-direct.com
Abdula Al Homaidi Trading Store
P.O. Box 6431, Riyadh
Saudi Arabia
Tel: +966(1)4023921
Cinesales Corporation
C-93, Wazirpur Indl. Area, Main Ring Road
New Delhi, Delhi - 110 001 (INDIA)
Tel: +(91)-(11)-27377971 / 27377972 / 27377973
Fax: +(91)-(11)-27373671
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Eastern Photography Company
203, Magnum House-II,
Karampura Commercial Complex,
Opp. Milan Cinema,
New Delhi - 110 015
India
Tel: 25920156-57
Fax: +91-11-25920157
Northern Forecourt Services
24 Chatsworth Street
Sunderland
Tyne and Wear
SR4 7TR
Tel: 01915144134
Pricing:
The pricing of photographic equipment and supplies varies a great deal. Small accessory
items can cost under $10, while expensive cameras can cost as much as $1000 or more.
This is a competitive business so it’s imperative to keep your costs in line with other
competitors.
Below are some price comparisons:
• The cost of reloadable cameras average less than $100, while digital cameras
average about $280.
• Cameras priced between $100 and $200 occupied 19.4 percent of the total unit share
in 2002, up 3.8 percent from the same time a year earlier.
• Prices for 2-megapixel cameras have dipped under the affordable $200 threshold
and go up to $400 for higher featured models.
Below are a few sample prices for equipment offered by direct marketers:
• Canon PowerShot $852
• Binoculars $54.53
• Digital Camcorder $454.54
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Getting Started:
Some suppliers may request a proof of business licenses and banking information in
order to accept orders. You may also have to pay in advance or C.O.D. for orders until you
establish some business history and are offered credit terms for orders.
There are also a number of industry associations that have a wealth of information
available to assist in launching a start-up in this field. Below is the contact information for
several of the most prominent ones.
IRM Publications
7600 Jericho Turnpike
Woodbury, New York 11797
Tel: (516) 364-0016
Fax: (516) 364-0140
Consumer Electronics Association
2500 Wilson Blvd.
Arlington, VA 22201-3834
Tel: (703) 907-7600
Fax: (703) 907-7675
Photo Marketing Association International
3000 Picture Place
Jackson, MI 49201
Tel: (517) 788-8100
Fax: (517) 788-8371
http://www.pmai.org
Insider Secrets:
• One technique quite a few direct marketers use is to have photo contests for their
customers and then post winning photos on their web sites. There’s nothing like
having their photos posted for the world to see to drive customers to view your
web site repeatedly and see your latest promotional messages.
• Many direct marketers also maintain a discussion board on their web sites. This
discussion board can only be available to post messages to registered users who
must provide an e-mail and physical mailing address so that you can build your
lists.
• There is a certain gratitude factor that many direct marketers of photography
equipment and supplies use by offering free items, such as free downloads of
software. There are companies that will eagerly provide this software to obtain
exposure and you earn the goodwill of your customers who will be inclined to
return the favor with future purchases.
• Photo instructional courses can be a profit center themselves or serve a similar
purchase as the above-mentioned strategy for software.
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To Learn More:
Below is the contact information for some of the prominent direct mail and online
competitors in the photography equipment and supplies industry who you might want to
study.
Camera Wholesalers
2770 Summer Street
Stamford, CT 06905
Tel: (203) 357-0467
Photo lab: (203) 358-8080
sales@camerawholesalers.com
http://www.camerawholesalers.com/
Argus Industries Inc.
1610 Colonial Parkway
Inverness, IL 60067
Tel: (224) 836-3400
Fax: (847) 934-3441
http://www.arguscamera.com
Continental Camera Sales & Service of Buffalo, Inc.
5795 Transit Road
Depew, New York 14043-2819
Tel: (716) 681-8038
http://www.continentalcamera.com
StarDot Technologies
6820 Orangethorpe Ave, Building H
Buena Park, CA 90620
Tel: (888) –STARDOT – (888) 782-7368
Abt Electronics
1200 N Milwaukee Ave
Glenview, IL 60025
Tel: (847) 967-8830
http://www.abtelectronics.com
Ritz Interactive, Inc.
2010 Main Street
Suite 400 Irvine, CA 92614
Tel: 949.442.0202
Fax: (949) 442-0210
http://www.ritzinteractive.com
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119
Overview:
You’ll market videos by e-mail promotions to prospective customers and through your
web site. You can sell either prerecorded videos that are already made or you can sell
videos that you produce.
American consumers spend over an estimated $120 billion on entertainment —movie
tickets, cable television services, home video, theme parks, recorded music, newspapers,
magazines, and Internet access.
While videos make up only a small portion of these expenditures, it’s clear that a great
deal of money is spent on consumer entertainment. One of the most well known video
retailers currently has $4.96 billion in revenues with a database of 50 million customers! So,
if you can offer videos that consumers find appealing, there is ample opportunity to carve
out a very profitable market share.
Buyers:
There are many types of video buyers. There are buyers for all sorts of informational
topics, sports and hobbies, human resource training, instructional videos, all kinds of
different movies from old classics to foreign films, and sex videos. The kind of lists that you
seek will vary greatly with the type of videos you want to market.
Internet Business Idea #14
Videos
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Front End Marketing Method
Your primary method of selling will be to send e-mail promotions to your lists and
through your web site. With the constant growth of on-line sales, you will want to have
a web site that allows you to show pictures from your videos, possible clips from the
videos. There also is a very strong growth for companies that sell the videos by allowing
consumers to download them online.
Back End Marketing Methods:
Once you have gotten your customer to order from you, you will want to continue to
announce newly available videos of a similar category as the customer previously ordered.
Additionally, there may be opportunities to market other related products. For example,
if you are selling instructional dance videos, you could also sell music or dance shoes to
your customers.
Your Product’s USP:
You will either need to build an identity for the specific videos that you sell or the way in
which your company can offer videos to customers. You will need to offer something that
makes customers want to buy from you. Maybe your videos are very difficult to find. One
mail order video seller, Critic’s Choice Video and DVD, sells videos of mainstream movies
that have been released over the years. But it has a large catalog and offers low prices along
with convenient ordering options.
Sourcing Your Product:
If you are going to produce your own videos you will have to decide if you are actually
going to do the videotaping and editing yourself or hire a professional to do it. If you don’t
know much about doing professional videotaping, you may want to at least start by using a
professional. Once you have produced a “master” copy, you will then reproduce the videos
that you will sell from the master. If your operation is small, you may want to do your own
duplicating with a set of your own VCRs. With a professional quality VCR to playback
your master and some professional wiring, you can run off high quality videos. If you are
doing high volume then you will want to have a duplicating house do the copying for you.
Every major metropolitan area has ample numbers of video services available in the local
yellow pages or that you can find via the Internet.
If you are planning on reselling already-made videos, where you find your suppliers can
really vary greatly depending upon the category you sell. A very volume mail order video
seller called L. Scott Sales markets female wrestling and other similar sex-related videos. It
gets its suppliers by purchasing wholesale from hundreds of mom and pop operations that
also retail their own videos. The same principal can apply to many other types of videos,
such as martial arts instruction, exercise, and countless others.
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If you want to market mainstream commercially made movies that are on video, you
will need to buy through the same wholesalers that other catalog and retail sales operations
buy from. This kind of operation will require the most capital to develop a supply of
inventory. Below is a list of wholesale suppliers of these kinds of videos:
Pioneer Entertainment
peaproducts@pioneer-usa.com
Ingram Entertainment
Tel: (800) 621-1333
Pricing and Mark-up:
A general rule of thumb in direct marketing requires that you need to have at least a
5:1 mark up. If you are selling videos that you are producing yourself, this will be easy to
achieve. The actual cost per completed video can be as low as a $1-2.00 if you are massproducing
them. Depending upon the nature of the video, it’s not uncommon for the retail
prices of your videos to range from $19.95 to $49.95, which allows a very substantial markup.
If you are distributing someone else’s videos you will need to make sure that you can
buy them at sufficient wholesale prices to allow enough profit margin for your business to
be profitable. The wholesale costs of videos vary greatly depending on the quantities being
purchased and the category of videos being marketed.
Getting Started:
Once you’ve determined what kind of videos you wish to sell, you’ll need to develop
some inventory and then create your web site and e-mail promotions accordingly.
Restrictions:
There are copyright laws that apply to the sale of videotapes, so make sure that you
comply with those by legally purchasing all of your videos.
Additionally, be careful if you are going to sell videos that are on subject matters that
could be considered controversial, obscene, or illegal. It is possible that a local community
could decide that your videos are obscene or otherwise illegal and actually start a criminal
prosecution against you because people in their community have been exposed to your
videos. If you’re marketing videos that have any risk of generating such a reaction, you are
strongly urged to consult a qualified attorney before you begin your marketing activities.
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Insider Tips:
One way to help increase sales is to offer free shipping. Philadelphia-based Movies
Unlimited has found that offering free shipping definitely pushes response higher. They
offer free shipping when a customer orders a minimum dollar amount of videos.
Another technique that seems to drive sales is providing easy access to as much detailed
information about the video as possible. Video Plus Direct, a U.K.-based video mail order
service, has launched a web site that offers consumer access to over 17,000 titles. Each
listing contains a summary of the movie plot and information on the stars, director, running
time, and price. The database can be searched by any of these categories.
Pictures online as well as “clips” have proven to be very effective at helping push sales.
As they say, “a picture equals a thousand words.” The use of pictures is very powerful
when marketing any videos that have an element of sex appeal. This would include
everything from exercise videos to any kind of sex industry videos.
Studying Competitors:
Critic’s Choice Video and DVD
P.O. Box 749
Itasca, IL 60143-0749
Tel: (800) 544-9852
http://www.ccvideo.com
Videos with Values
1509 Washington Ave. Ste. 550
St. Louis, MO 63103
Tel: (314) 621-1509
http://www.videoswithvalues.org
Video Yesteryear
P.O. Box C
Sandy Hook, CT 06842-0847
http://www.yesteryear.com
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Overview:
Mail order cosmetic and beauty companies sell a variety of products which include such
items as permanent lipstick, moisturizers from exotic tropical locations, facial toners that
are sold as alternatives to botox, anti-wrinkle cream, pedicure products, and other skin care
products.
The direct marketing of cosmetics is a very large industry with several large players,
many small ones, and those that are growing. Avon Products, Inc. saw sales rise 8% to
$1.64 billion during the second quarter of 2003, compared with the second quarter of 2002.
And their net income was $171.5 million during the period, an 11% increase on year. The
cosmetic industry appears to be a growth opportunity market for several reasons:
• Despite the current large size of the cosmetic market, it is expected to grow steadily
throughout the 2002-2007 period.
• Interestingly, while traditionally considered a “women’s” market, American men
showed strong demand for men’s grooming products during the review period.
Over this same 1997-2002 period, sales of such products rose by nearly 42% in
current value terms, to reach a value of US$3.6 billion in 2002.
• Internationally, demand is high as well, with Europe’s overall cosmetic
consumption exceeding $50 billion annually.
Cosmetics
Internet Business Idea #15
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Buyers:
There are many potential buyers for cosmetic and beauty products that can be sold
through the mail with many different motivations.
• Professional and Executive Women who wish make their purchases through the
mail or online for convenience.
• Women who are seeking beauty products, such as lotions from exotic tropical
locations.
• Both male and female buyers of products like creams that reeducate the facial
muscles that lose their tone from years of squinting, furrowing the brow, and
making facial expressions.
• Males that want to buy cosmetic products but prefer other options than public retail
stores.
Front End Marketing Methods:
You may want to start by trying a single item offer with an e-mail promotion that
has a big promise such as an anti-wrinkle cream, a catalog of basic quality inexpensive
standard cosmetics, or smaller multi-product offering of related products, such as blends
of botanicals, essential oils, and herbs. Naturally, on your web site you will want to have a
nice assortment of products.
Back End Marketing Methods:
• You can send promotional e-mails that offer products that are natural add-ons to
your primary products. For example creams that reduce varicose veins are natural
products to promote to buyers of other youth-oriented products like wrinkle
creams.
• A downloadable catalog online is a great way to offer a full catalog without
incurring the expensive prices of physically printing a large catalog.
• Because it is necessary to constantly replenish cosmetic products every time a
reorder is sent, literature with a new product only available to your customers is a
great way to drive back end sales.
• With their constant repeat purchasing patterns, buyers of cosmetic products are also
natural for frequent purchaser programs which entitle them to receive a “free” new
product. With any luck once the buyer has tried this new “free” product, it will get
added to the regular purchasing program.
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Your Product’s USP:
Purchasers of cosmetics from direct marketers are generally seeking:
• Products that are difficult to find in typical retail outlets.
• Convenience that mail and online marketing offers.
• The ability to buy products discreetly.
• Good prices and product selection.
For example, while the trend is that men are purchasing more cosmetic products than
ever, many would rather do it discreetly. If you offer easy to use order options that have no
human contact such as fax orders, mail-in orders, and online ordering; you can appeal to
this group.
You can also appeal to the desire of many customers who are willing to try new products
that offer a chance to accomplish things that are not easy to do, such as getting rid of
wrinkles without surgery or making the skin appear younger.
And for some busy female professionals your company may be just the ticket, if you can
offer good selections of quality products at reasonable prices with quick delivery; so they
can make their cosmetic purchases at their convenience, quickly, and easily.
Sourcing Your Product:
There are many sources of wholesale cosmetics both domestically and internationally.
Below are a few:
Canadian Distribution
by Soluzione Spa Products
1015 Burrard Street #503
Vancouver, BC V6Z1Y5
Tel: (877) 684-2772
Interamerican
4300 NW 128-th Street
Opa-Locka, FL 33054
Tel: (305) 685-0918, - (800) 743-7274
Fax: (305) 687-7519
Aliza Cosmetics
A-110, Group Wazirpur,
Industrial Area, New Delhi,
Delhi, India-110 052
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Rus Import
Mr. Ranjan Vikas (Manager)
20, Kulakova Street, Moscow, Russia 123592
Tel: 7-903-5237574
Arrow Hair & Beauty Supplies,
Unit 2, New Meadow Road,
Lakeside, Redditch, B98 8YW.
Pricing and Markup:
First see if there are manufacturers’ suggested retail prices.
The other main force that will guide your pricing is the competition.
In most categories there will be some other types of competitors and if you keep your
prices in line with established competitors, you will know that your prices are within a
range of what the market can bear.
For example, a product called Frownies, which is a facial muscle relaxant that is supposed
to reduce wrinkles, retails for a healthy $69.99 an order.
Another direct marketer sells a product called Evelle, which is a skin conditioner it
markets in two-month supplies for $58.95.
Getting Started:
In order to obtain the kind of low wholesale prices that will allow for the substantial
profit margins generally required to be successful in direct marketing, many manufacturers
and suppliers require minimum orders that may be prohibitive if you’re starting on a small
budget.
Other suppliers may also ask for trade references and licenses before being willing to
consider offering credit terms.
Requirements:
Besides actual government laws that regulate the cosmetic and beauty industry,
there are many practices that are frowned upon, if not illegal and a standardized set of
business practices for the industry. A very helpful trade group that can offer a great deal of
information in this area is:
GMP Institute
A Division of ISPE
3109 West Dr. Martin Luther King, Jr. Blvd.
Suite 250
Tampa, FL 33607
Tel: (813) 960-2105
Fax: (813) 264-2816
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Restrictions:
There are no special licenses required to sell cosmetic and beauty products. However,
there is a great deal of regulation regarding the products themselves and the manner in
which they are marketed. The federal government offers a substantial amount of free
publications online and via the mail which can offer you guidance in this area. The primary
federal act legislating these restrictions is the Federal Food Drug and Cosmetic Act. For
information contact below:
Food and Drug Administration
5600 Fishers Lane
Rockville, Maryland 20857
Tel: 888-INFO-FDA
Tel: (888) 463-6332) - main FDA Phone Number (for general inquiries)
Insider Tips:
• Stressing vanity benefits is a proven tactic in the marketing of cosmetic products.
Let’s face it; people buy cosmetic products because they want to look their best to
other people. One direct marketer uses phrases such as “your friends will be filled
with envy” and “people will take notice.”
• Another direct marketer drives sales by offering a free e-newsletter, which contains
some valuable information for buyers, so that they make sure to read the newsletter
and of course the product promotions neatly tucked into it.
• Find ways to measure benefits. A marketer of anti-wrinkle capsules cites:
• Clinically tested, phyto beauty capsules help to reduce the depth of wrinkles by
44% and increase skin hydration by 10%.
• Many successful cosmetic marketers also stress that products or their ingredients
come from exotic tropical locales that are nearly impossible to obtain anywhere else.
How To Learn More:
Here are some major direct marketers and online sellers of cosmetic and beauty
products:
Avon Products, Inc.
9 W. 57th St.
New York, NY 10019-2601
Tel: (212) 546-6015
http://www.avon.com
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Mary Kay Cosmetics, Inc.
16251 N. Dallas Pkwy
Dallas, TX 75248
Tel: (972) 687-6300
http://www.maykay.com
Optiva Corp.
13222 S.E. 30th St.
Bellevue, WA 98005
Tel: (425) 957-0970
http://w.sonicare.com

Agora Learning Institute
245 NE 4th Avenue, Suite 201
Delray Beach, FL 33483
Phone: 866-565-1117 Fax: 561-265-3542
Canadian & Global Customers: 1-203-699-2995
Website: www.earlytorise.com
E-mail: support@earlytorise.com
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