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AZ-MARKETING

DESK REFERENCE GUIDE

MUST
READ !!!

LINKS
a
Author

Lorenzo Tartamella

C.E.O.

Houser & Swire Group Corporation


MUST READ !!!

I call this section “Must read”


since I know that most people
just skip the Introduction.
Introductions are similar to relationships. They are meant for two
individuals to get to know and understand each other.

The first thing you must learn is to “read” “read” “read” In the real world
of marketing, the power of reading and understanding what you read will
become a key factor in your success.

When you first thought of opening your business, chances are no one
told you, you would need to become a professional marketer.

No one told you of the hundreds of ways to make your product or


service known to the others.

No one told you that the quickest and easiest methods are not
necessarily the most effective or the least expensive.

No one told you that you would spend a significant portion of your profits
promoting your products, just so that you could make more money for
more promotion.

There is a solution.

Before you spend any more time, or any more of your precious
resources, “read” ”read” ”read” my book! The Az-Marketing Desk
Reference Guide.

This Guide is designed help you open your imagination to every known
marketing technique known to man, on how to effectively market a
product or service and your business.

Use the table of contents to plan your journey to discovery.

The Az-Marketing Desk Reference Guide just as roadmap outlines all


conventional, non-conventional, and new approaches to marketing.

I present a comprehensive compilation of options with resources and


references for finding additional information on each subject.
I recommend books in almost every category, as well as websites that
are an absolute must for marketing in today’s world.
I proceed to help you design and refine your Marketing Plan, from the
vast number of choices and experiences that I have been involved over
the last 25 years.

I wish for this guide to become your official blueprints for your success.
Proceed with caution and care.

Don’t kid yourself. Marketing is a very expensive tool to use. For the
“guys” think of it as an expensive power tool. For the “gals” an
expensive kitchenware. Both can be very expensive fragile, and
dangerous.

One important key to marketing is to “stay within your budget” and use
testing wherever possible. It will be up to you to find the proper
techniques that will achieve maximum exposure and work for your
industry.

From inexpensive 1.00 classified adds to a 2 million dollar 30 second


television commercial and everything in between until you know a great
deal about the markets for your product, invest in methods you can
afford and for which you can anticipate a reasonable return.

Marketing is all the activities in a company that create sales, including


but not limited to packaging, publicity, advertising, and promotional
activities, you will learn the art of designing and creating a Marketing
Plan using the techniques, tools, and tasks outlined in my book.

Regardless of your product or service, whether you are just beginning in


business or well experienced, whether you plan to work full or part-time,
this manual is a comprehensive, organized, and informative platform for
you to design your Marketing roadmap.

You may have devoted years to perfecting a product that you feel could
truly make a difference in people’s lives. You may have a connection
overseas for commodities you believe will sell well in your City, State,
Province, or Country. You may have a low cost service that will benefit
thousands of people. You may be a manufacturer, or inventor who
wishes to sell an innovative or new product. Whatever it is, without
MARKETING, nothing happens.

Start by showing excitement. As a marketer or Director, you indeed


have the most difficult task of all. In every project, you will become the
Ace, the President, the Salesperson, the Manager, the Consumer, the
Client, the Advertiser, the Relations office, the Budget Coordinator, and
so much more.

There is no right or best way to market. Although there are some


exceptions, generally the process of introducing new, unusual, or
unique products to the marketplace takes money, time, persistence, and
patience.

Imagination and creativity are crucial to the development and execution


of a product or service.

The ideal program for your product and what appeals to you personally
may be different than for someone else. Though your personal taste of
marketing methods is important, always consider opinions of others
around you.

In the final analysis, your decision must present and represent only one
factor of success that equals Sales and Profits.

Put it in writing, create your overall marketing strategies and utilize a


plan. Follow guidelines to track techniques and results especially when
you are using more than one medium of marketing and advertising.

Unfortunately, consumers and businesses today are overwhelmed by


new advertising techniques. With an abundance of choices in products
and services, a Marketer must be clear with the message being sold in
fractions of a second…

Be Creative…

POWER PHRASES TO LIVE BY

Attitude is everything
Believe 100% in your Plan
Always be enthusiastic
Have fun
Tell everyone: once you’ve launched
Knowledge: know your product
Be adventuresome
Go Beyond conventional
Go Beyond comfortable
Set goals
Change brings growth
Use the imagination
Don’t ever lie

Volumes and Volumes have been written on the subject of Marketing.


Very little is new here. The Az-Marketing Desk Reference Guide is not
an animated product, but a complete scope, of information,
organization, and presentation of the world of Marketing written for
everyone to enjoy learning from a beginner to professional.

Information, and knowledge, is the highest grossing commodity in the


world today. More billions of dollars are spent on acquiring information
than any other single product in the entire world.

Remember, that when all else fails, blame Marketing, however without it
nothing happens.

You are on the path to great marketing! Good Luck!

Lorenzo Tartamella
C.E.O
INTRODUCTION A B C D E F G H I J K L M N O P Q R S T U V W X Y Z LINKS
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mm ADVERTISING

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Recommended Books

The 33 Ruthless Rules of Local Advertising by Michael Corbett -


Advertising locally is not always easy. Change a typical local 10%
success rate to 90% with this special guide.
1001 Advertising Tips by Luc Dupont - A step-by-step guide to
creating advertising that sells products, offering readers insights,
tools and techniques for marketing. The book covers positioning,
pricing layout, illustrations, color contests, endorsements,
sponsorships and much more.

Advertising Manager’s Handbook by Robert W. Bly- Highly useful


and well organized, this manual offers techniques with guidelines,
sample checklists, and templates on virtually every form of
advertising. Regardless of your advertising budget, you will find over
800 pages of helpful information for planning and executing
successful advertising strategies, from a highly respected individual
in the field.

Advertising Secrets of the Written Word: The Ultimate Resource


on How to Write Powerful Advertising Copy from One of
America’s Top Copywriters and Mail Order Experts by Joseph
Sugarman, Dick Hafer (Illustrator), Ron Hughes (Compiler) - This
book is an invaluable resource for assisting you in writing powerful
advertising copy for flyers, brochures, ads, sales letters, press
releases, and more. The first section covers Understanding the
Process, including the all-important First Sentence; Selling the
Concept, Not the Product; The Art of Personal Communication; and
Editing. The second section covers Understanding What Works,
including Anticipating and Resolving Objections; The Sense of
Urgency; Clarity; Rhythm; Avoid Saying Too Much; Timing; Telling a
Story; and much more!

Do-It-Yourself Advertising & Promotion: How to Produce Great


Ads, Brochures, Catalogs, Direct Mail, and Much More (Wiley
Small Business Edition, 2nd Ed.) by Fred E. Hahn, Kenneth G.
Mangun (Contributor) - “Practical, tested techniques and insights into
every major form of advertising: newspaper ads, flyers, direct mail
brochures, catalogs, and audio ads with detailed checklists and step-
by-step instructions,” from the publisher John Wiley & Sons. These
are high-impact techniques you can create and develop on a limited
budget.
Ogilvy on Advertising by David Ogilvy - An advertising legend
shares his years of experience. Learn from the creative genius of
one of the most knowledgeable men in the field. Oglivy demonstrates
the wit, passion and discipline of a true master. This book is highly
recommended as a basis for truly understanding the advertising
industry.

Start-Up Marketing: An Entrepreneur’s Guide To Advertising,


Marketing, and Promoting Your Business by Philip R. Nulman -
A useful, and easy to follow manual that offers you a step-by-step
program for increasing exposure, profitability, and recognition for
your small business. This is a blueprint for business success, a
thorough guide to advertising, marketing, and promoting your
business.

Streetwise Do-It-Yourself Advertising: Create Great Ads,


Promotions, Direct Mail, and Marketing Strategies That Will
Send Your Sales Soaring by Sarah White (Preface), John A Woods
(Contributor) - Access the techniques of ad agencies with the
templates, worksheets, examples of ads, direct mail pieces, and
press releases included in this book. Develop your USP, choose
promotions, develop an advertising strategy with print ads that sell,
radio advertising, direct mail advertising, and much more

Testing Advertising Methods (Business Classics Series) by John


Caples, Fred E Hahn - For more than 60 years, John Caples was a
guide to thousands of advertisers. This updated version of his classic
book, by respected marketer Fred Hahn, retains all the original
information with its easy-to-read format. In particular, Caples
emphasizes that the purpose of advertising is to create sales. David
Oglivy, an advertising legend himself, says Caples book is the best
book he has ever read on advertising.

Recommended Websites

http://advertising.utexas.edu/research/Topics.html
The Department of Advertising at the University of Texas, Austin
“offers a wealth of information not only about the Advertising Industry
and various research areas.” In particular, find “Research
Resources” on the homepage menu bar, with online papers and
articles, a dictionary of terminology, educational software, advertising
books, rules for style in writing, biographies of advertising giants,
links to Advertising World, Famous Slogans, Advertising quotations,
and much more. Advertising World is the “Ultimate Marketing
Communications Directory with Resources for advertising and
marketing professionals, students and teachers. The most extensive
advertising-related links on the Web!” Over 75 advertising-related
topics, provide hundreds of valuable links.

http://dmoz.org - This useful site is organized by volunteer


“Netizens” who help organize and classify sites. There are nearly
90,000 classified sites here, so this is a resource to bookmark. On
the homepage, click on business, find advertising, and click on it for
over 1,500 links to useful sites.

www.businesstown.com - Business Town offers feature articles,


channel or subject listings where you can find pages of free reports,
and discussion forums on how to “start and run a small business
without tossing your shirt, your sleep, and your sanity!” Bookmark
this website because you will want to refer back here for other
subjects.

www.usaworld.com/Mall/FillerAds.htm - Interstate Enterprises has


been offering low advertising rates since 1975. They are one of the
largest advertising agencies in the USA. They place ads for the “big
boys” who don’t pay full price. Get “giant” circulation for your one
inch advertisement for as little as $20. Other high volume, low-cost,
advertising programs are available on this website.

Advertising and Marketing are related activities often confused or


considered one and the same. Unless you are directly involved in
either industry, the differences can appear very subtle. Marketing
involves all the elements that create sales. The critical function of
advertising is to introduce, inform, and educate prospects to make
the decision to buy. As a product or service provider, your
understanding of the distinctions between the two is far less
important than selecting the techniques and activities you feel will
maximize your ability to sell your product or service.

This chapter offers ideas, skills, and techniques for creating and
writing effective advertising. The amount of information on the
general subject of advertising is staggering. Several of the
recommended books are classics written by masters in the field.
before discussing techniques on how to write and what to include in
an advertisement, brochure, or sales letter, let’s take a closer look at
what advertising does and what it does not do.

The purpose of Advertising is to inform, educate, and excite


potential buyers so they make the decision to buy. Advertising
does not actually sell the product, but it does sell the idea.
Marketing, on the other hand, involves the comprehensive
efforts a firm makes to sell their products or services. Marketing
involves packaging, promotions, advertising, and all the efforts to
grow and expand the company through the sales effort. Marketing is
almost always targeted to a specific audience. One or more
advertising programs planned and orchestrated together become a
marketing campaign or a Marketing Plan.
Advertising is critical to your business. Without it, no one knows
about your company or that your product exists. There are a number
of different media as well as proven techniques to provide
information to potential customers about your product or service. The
goal is to be as convincing as possible in the space available.

Think for a moment about billboards, known as outdoor advertising,


or TV and radio commercials. These are well established mediums
for advertising products. Messages in these media are designed to
inform the public. They allure, they intrigue, they excite, they
convince. However, the media itself does not actually physically sell
products to consumers.

The exception is when a TV or radio commercial provides an 800


telephone number or an address where buyers can get more
information and place an order. This form of advertising is called
Direct Response. The product provider hires the media to advertise
and promote his/her products. Chapters D-Direct Mail and Direct
Selling and Chapter V-Video, TV, and Cable have more information
and references on advertising through Direct Response.

A new phenomenon emerged in 1999. Dot com advertising, or


advertising an Internet Website, became a major business for TV
and radio. The objective of dot com advertising is to get qualified
buyers to go to a website prepared to purchase. Once there,
information on the Website finishes the job of selling. Dot com
advertising is designed to intrigue potential buyers so they remember
the website address and go there. Advertising does not actually sell
the product. It informs, acquaints, convinces, and excites potential
buyers.

Another misconception regarding advertising is that it can control


people’s buying habits. Although many individuals in the advertising
industry would like to influence what people buy, advertising does
not control habits. People purchase products and services because
they perceive value. The product either meets a need or desire, or it
is affordable. Advertising can be persuasive and trends certainly do
develop.

For example, advertising managers of Crest Toothpaste convinced


hundreds of thousands of people in the 1950s that they had the
formula for fighting cavities. Decades later, some people continue to
buy only Crest. Effective advertising informs and convinces, perhaps
for a lifetime of buying habits, but the product must deliver all that it
promises for people to continue purchasing it. People used Crest,
and cavities diminished. Advertising is persuasive, but it does not
control what people do.

In a similar fashion, more and greater quantities of advertising will


not create sales. Companies that buy more expensive advertising in
greater quantities hoping to create sales are acting in desperation
and flirting with disaster. Not to be repetitive, but advertising cannot
create sales. Nor does more advertising. Advertising is effective
when targeted and focused with firm objectives in mind. No amount
of money will get people to buy a product they do not want or cannot
use.

Advertising does not have to cost you a lot of money. The idea is to
combine several different techniques to develop a Marketing Plan
that will work for your product or service. The following scenario is an
example of how a how a small advertising effort could blossom into
some significant marketing opportunities. Hundreds of potential
scenarios exist. Your imagination, your attitude, and your desire are
the only limits to developing marketing programs for your product or
service.

Imagine that you own a gift shop in a mid-sized town near a big
metropolitan area, perhaps an outlying suburb. You decide to send
holiday cards to your preferred customer list of 1,000 to show them
your appreciation of their support and loyalty. You decide to
sponsor a 3-day Holiday Sale, and invite them as your special
guests.

Begin by outlining the tasks needed to complete the project.


Someone has to design the card, print, and mail these
invitations/holiday cards. You and your staff need to decide whether
to have a drop-in Open House & Holiday Sale with refreshments, or
whether customers will call-in orders for those days. Regardless,
staff will need to host the in-house or field the calls if you are
planning a special phone-a-thon.

If you decide on the Open House, someone needs to handle the


arrangements for refreshments and decorations. You need to budget
expenses for printing, postage, decorations, and refreshments. This
sounds like a fun activity, and an opportunity to clear some inventory,
as well.

Let’s employ the services of an imaginary marketing advisor to see


how we can boost this plan, and create some additional benefits for
you. Our marketer likes the idea of combining a holiday card with an
invitation to an Open House & Holiday Sale, and suggests you add
and advertise a free raffle on each of the three days. He/she
suggests you contact a local travel agent to co-sponsor the event,
and assist you in obtaining a discounted vacation trip for the Grand
Prize.
Our marketing advisor suggests you advertise the time and date of
the Grand Prize Drawing. Also, invite your customers to bring friends
and family. Additionally, give floor prizes, or simple promotional
items, to everyone who comes. These might be gift-wrapped in a
grab bag, items like: pens, magnets, key chains, and holiday
ornaments, all bearing the company name, logo, and phone number.
(See Chapter Q- Quick and Quality Ideas That Work.)

Get with the spirit of the season and offer to donate a percentage of
your profits to a local charity. Decide which one, call them, and find
out their Christmas wish list. At the same time, our marketer
suggests sending a Press Release to all local and surrounding
media announcing the Open House. Invite the public to come,
reserving special hours just for your invited customers.

Make sure your Press Release informs the media that you are
donating a percentage of the proceeds of all sales to charity. If you
achieve your goal, and have the money to purchase the charity’s
desired item or items, you create the opportunity for a second
publicity event to bestow the check.

You began with the idea of having a holiday sale and open house for
your best customers. That idea remains. Offering a special
appreciation day for your valued customers is an excellent way of
maintaining their support and loyalty. You targeted an audience and
established a goal, two important focus points of any advertising.

The whole event takes on a much bigger dimension with the


donation of a percentage of your profits to charity, holding a free
raffle, and inviting the media. In addition to your best customers
(who will be great salespeople for you at the event), you reached out
into the community and involved a local organization and their entire
membership.

The chances are excellent you will receive local and maybe regional
media attention, as long as you adhere to some easy guidelines for
the correct form to use in inviting the press. Depending on how much
space the media allows for holiday stories, you might get
considerable attention. As mentioned, keep the interest and
momentum after the holidays by creating another event and
presenting the donation. (See Chapter P- Publicity and Press
Releases.)

One important task of Marketing is understanding, predicting, and


satisfying customer desires and needs. Not every company can have
an Open House & Holiday Sale. Many can, Small gifts and a raffle
with a Grand Prize drawing extends your appreciation to the form of
a holiday gift. Donating proceeds to a charity shows your interest in
the community. Inviting the media creates excitement for everyone,
and is an opportunity for you to get some “free advertising” or
publicity.

Whether you make money at this Holiday Sale is a moot point. Your
original goal was not necessarily to make money, anyway. If you
garner the interest and support of some of your local and regional
media, you will be the envy of every competitor and business in your
community. You will also have created a situation for your company
no amount of money can buy.

Use many of the techniques, plans, and activities described in this


manual to create similar types of marketing activities. As you read
about various methods, think about ways of combining them.
Consider the cost and the appeal of the activity to you personally. If
you think that your product or service can benefit from an activity,
give it your best effort. Enjoy the process of planning and creating
events like the one described above. Follow the logical steps to
complete the necessary tasks. Remember, attitude is contagious,
and business does not have to be all hard work. If you are enjoying
yourself, your staff will too.

The federal and state government the all have laws regarding
advertising. Chances are you will not have to worry about violating
these laws, but it is still a good idea to know what is illegal. The
Federal Trade Commission is the enforcement agency for the U.S.
Government; state enforcement is the state attorney generals’ offices
role supported by various consumer protection agencies. The laws
govern deceptive and false advertising. Follow the guidelines listed
below to insure that you aren’t accused of either.

This is not a case of Big Brother watching or attempting to interfere


in your affairs. The FTC is not out looking for violators either. In
general, they act in response to consumer and competitor complaints
of misleading advertising. After an investigation, the accused violator
is urged to comply with reasonable standards for advertising. If
voluntary compliance fails, the FTC, or a state attorney general’s
office, usually issues a cease-and-desist order, and assists the
parties that are being harmed by preparing a civil suit for damages.
During the time the suit takes, the FTC or attorney general may seek
a court order, or injunction, to stop the offensive ad.

Once resolved, the FTC or attorney general may seek punitive


compensation for the damaged party, and require that the violator
run ads admitting deception. As mentioned, you are not likely to
experience prosecution for violating the advertising code of ethics as
long as your remain truthful in your advertising. The courts are
favorable to the government’s point of view, because suits are not
undertaken frivolously. However, if you adhere to the following, you
will find yourself well within the bounds of compliance.
Competition In Advertising - It is permissible to compare your
products or services to your competition. Before you do, be
absolutely certain that you have all the facts correct, especially in
cases where you see flaws or gaps in what they offer or present.
Check your information again and again. Do not use false or
misleading statements about your competition in your ads. Your ad is
more powerful when you emphasize the special unique benefits of
your product, such as price, guarantees, specials, etc.

Special Offers - If you are offering a special sale, be accurate about


claims of savings and discounts. Be sure you can and will offer
everything precisely as you present the information in the ad.

Credit - “Easy credit” means that you offer credit to those with poor
or no credit. If possible, print the full terms (in small typeface) in your
advertisements to avoid any confusion. Your offer has to be
sincere.

Inventory - Make sure you have adequate stock to meet anticipated


demand before you advertise. If you are uncertain how much to
have available, estimate by using industry statistics, and responses
your competition receives for similar advertising. Make a reasonable
estimate, and provide for contingency manufacturing and assembly
as best you can. Best effort is what counts.

Understand Your Offer - The saying everyone wants something for


nothing is true. If you are offering anything for free, make sure that
the offer is really free, and that you are not recouping your expenses
in other ways. In other words, do not hide your costs. Be clear in
your advertising and with yourself that there are no conditions to your
offer.

Endorsements - If you have a celebrity, whether local, national, or


international, who subscribes or supports your product or service, get
proper accurate quotations and permission to use either photos or
quotes. Indicate “by permission” in the advertising text. If a local
group or club endorses you, follow the same procedures. Though
your celebrity contact may not object, unless you get complete
authorization to use his/her name in your endorsement, your
competition can accuse you of false or misleading advertising.

Be Precise - All of the above adds up to these two words: be


precise. And, be truthful. You will not get customers, or the kind you
want to keep, unless you portray, in every advertisement and
marketing piece you release, honesty and truthfulness in your offer.

With these caveats in mind, let’s look at the components of good and
effective advertising. You know advertising is going to cost you
money, money from your hard-earned, well-deserved profits. It is
also going to cost you time, time away from the other important tasks
of running your business. You will agree that it is essential that you
spend money and take the time necessary, or else the entire concept
of starting a business is senseless

Before you place or pay for any advertisement, jot down these 5 W’s
and answer them to the best of your ability. Go through this exercise
each and every time you plan advertising, whether you are placing a
small advertisement, or strategizing an entire marketing campaign.

1. Who is my target audience?


2. What are my objectives with this advertising?
3. Where should I place this ad? Which media?
4. Why is my offer unique?
5. When is the best, most strategic time to reach this audience?

Begin with these basic questions to identify your purpose and set
specific goals. For instance, let’s focus on the WHAT. Ask yourself
what you hope to accomplish. Many of the other key elements will
become clear. Is your purpose to sell more products to your existing
customer base? That is a very important goal. It is much easier to
keep a satisfied and loyal customer than find a new one and create
and sustain his/her loyalty. Maybe your goal is to reach into the
community or wider, to expand your customer base. You can see
that where you place the ad, and what you say to each “audience”
would be very different.

Some of the techniques in this manual are highly effective for one
customer base, some work for others, and some work for all. Direct
Mail, as an example, is excellent for keeping in touch with existing
customers, as is Telemarketing. Making friendly calls to existing
clients is an easy and enjoyable task for your staff. Both
Telemarketing and Direct Mail are used just as often to acquire new
customers. Expos and Tradeshows represent a great opportunity for
outreach. You can generate hundreds of new, fresh leads for
expanding your customer base.

You can also see that by defining your goals, you define your target
market. It’s not essential to answer each of the 5 W’s in order. Begin
with what you want to create and move from there. You may find that
you develop something different than what you had envisioned, and
more exciting too!
Another important objective of advertising is to increase awareness
of your company and its products. There are a number of ways to
further this objective. Place a year long ad in the Yellow Pages or
begin an Outdoor Advertising campaign in your area using billboards
and signs. You can organize a series of Publicity events planned to
attract the press, radio, and television. You can open a Website or
expand your existing one by undertaking steps necessary for
bringing more qualified buyers to your Internet store. You can offer
an e-Zine, or electronic newsletter or magazine at your Website, as
well.

Whatever you choose to do, focus on your goals and your target
audience. With these objectives in mind, you can develop a number
of scenarios depending on the time and resources you are willing to
allocate.

Another reason product providers advertise is to increase sales.


After all, the object of business is to grow, develop, and gain more
market share. All of the techniques mentioned above, and many
others mentioned in this manual, work well for increasing sales.

There is no science to advertising which offers a formula for success,


such as: “if this…then that”. Advertising involves trial and error and
understanding. If you take the time to outline the component parts,
the purpose and objectives, you will be able to target your market
more successfully than if you just randomly advertise. It is difficult to
generalize about which techniques work best in any given situation
because every product is different and each product provider has
his/her own resources to consider.

When you find something that does work, archive it so you can use it
again, but keep developing new ways to bring exposure to your
company and products. If you run the same ad repeatedly, you will
be perceived and categorized as stale, unimaginative, and
unadventursome. You don’t need to do everything at once, but
explore all the options you can afford. You can even study what your
competition does.

Investigating how your competition runs their advertising gives you


clues about what they perceive is important to customers. Armed
with this knowledge and information, you may be able to reach into a
sympathetic customer base using your own advertising techniques.
Driving your competition’s customers to your company is not wholly
sinful, as long as it is honest. If you can offer an improvement,
customers will come to you. The marketplace flourishes because of
the enhancements, developments, and improvements from new
product providers.

Targeting your competitions’ market requires a different message


than you would present to prospects unfamiliar with your product.
The key thing to remember is that the purpose of advertising is to
inform and educate. The “pitch” depends to which customer base
you are appealing.

In general, buyers make a purchase because they believe the


product or service will improve the quality of their life or the life of
someone they know or love. Look at your product or service. No
doubt you were initially attracted to it because of some benefit you
found valuable or useful, so much so that you decided to build a
business around it

Buyers also seek value. Cost has traditionally been a key benefit in
successfully marketing products. With our rushed and harried
lifestyles, convenience is becoming an increasingly important factor
in product decision-making. Some consumers will knowingly pay
more when a product offers the benefit of convenience. This
phenomenon is evident in a number of markets, and appears to be
an important trend to watch.

Another advertising activity for you and your staff is to create “a


hook,” or your identifying mark. Your hook can be an easily
recognizable symbol, a description or a phrase that distinguishes
your company, your product, or both. Your hook creates an identity
for you in your field and in the marketplace. It separates you from
everyone else.

A “hook” may be your key benefit, or it may allude to your


competition’s claim to fame. It may also be one singular feature or
benefit of your industry that no one has yet signaled out for
advertising purposes. You may be able to capture the imagination of
the buying public, and essentially pre-empt others in your industry.
You can and you should trademark any “hook” or mark you want to
keep for your own use. (See Chapter L-Legal.)

Non-major players rarely capture the identity of an industry because


the major players pay Madison Avenue advertising agency
executives ten of thousands of dollars to write and create hooks.
These symbols, slogans, and jingles focus the buying public on their
company regardless of the quality of their products.

Hertz has a hook (slogan). Coca-Cola has a hook. 7-Up has a hook.
You will be most effective in establishing a signature identity if you
pick one memorable thing about your company or product with which
you want to become associated, and stick with it. Use it everywhere,
especially in all your advertising.

If you cannot think of a “hook” yourself, run a contest in your


company with a prize if one is chosen. Hooks are helpful, fun, handy,
and useful, but not essential. They are not widely used in
advertising, so they are unique.
A fundamental and essential component to creating good advertising
is what is known as “positioning” also called “your positioning
statement,” or your “Unique Selling Proposition,” or “USP.”
Positioning involves successfully creating the impression in your
potential buyer’s mind that what you have is of particular value and
importance to them.

This USP is the quality that distinguishes your product from everyone
else’s. What is important is the buyer’s perception of the difference,
whether real or not. Watch your deceptive advertising guidelines, but
search for some quality about your products that can set you apart
from others in your industry. You could use this quality or key benefit
to create your hook. A hook catches customers’ attention. Your
Unique Selling Proposition convinces them.

You cannot hope to reach everyone with your message, just as your
products are not for everyone. According to statistics we retain very
little of what we see and hear, partially because we are constantly
barraged by advertising. Many people develop the ability to shut their
minds off when the advertising begins, or read only the top ¼ page
of the newspaper. This is not to say your efforts are futile. As
mentioned, you have to advertise. Your job is to be creative, focus
on your target audience, and deliver a strong, clear, and forceful
message.

Understand what pleases your best customers most about your


product and you will more than likely identify your USP. If there is a
way to use your hook to promote your USP, do it. If it doesn’t work,
pull the hook, but retain it for other uses.

Your USP is the single most important tool you have to differentiate
you from everyone one else selling products like yours. A simply
stated, clear, focused, “Unique Selling Proposition” means your
advertising dollars work harder. You and your staff can concentrate
continuously on improving the ways you communicate the
satisfaction customers experience from your products.

If you are just beginning your business, without a database of


satisfied customers, evaluate what benefits customers seek from
your industry that they are currently not getting from your
competition. The process may take some market research or
conducting a simple survey, both of which you and your staff can
handle. Your business plan has some documentation on the
industry, and you can utilize this information now for your marketing.
Check the Recommended Books and Websites in this Chapter, and
in Chapter U- U.S. Government Resources for several references for
advice and assistance from experts.

Keep your Unique Selling Proposition short, no more than a minute


when spoken, or one average paragraph if written. To capture the
attention of over-advertised and over-worked consumers, you must
sell them on the unique benefit or benefits of your product. As you
sit down to write your USP for the first time, begin by listing those
qualities that make your product unique.

It may be as simple as your offering free shipping, or an unlimited


money back guarantee. Maybe you offer more convenient hours, or
lower prices, or regular sales. Always be as specific as you can. List
your hours if they are more convenient than anyone else’s. Show
that your price is always the lowest. Sell them on the desirability of
regular sales.

The question you have to ask yourself is this: If I have or offer what
everyone else has or offers why would customers bother or care to
buy from me?

This is another area where you can seek the assistance of your staff.
It is important that you all have a unified understanding of the USP.
Asking each staff member to write a company USP will help you
understand what they do and do not understand about the business.
Compile and share the results you receive anonymously with them.
Reserving the final authority, solicit their assistance in drafting a final
copy.

Once you pinpoint your speciality, advertise it, and you will have
customers seeking you. A word of advice: be sure that you have the
resources and ability to fulfill what you offer. Disaster looms if you
attempt to take on more than you are capable or willing to provide.

The Unique Selling Proposition, answers 3 main questions.

1. What is the product or service? Name it.


2. Who benefits? Be specific.
3. Why is it unique, unlike all the others?

Make your USP the banner heading on all printed materials:


stationery; packaging boxes, envelopes and labels; and sales,
advertising, and marketing pieces. Whether you are writing a sales
letter, constructing a sales brochure/order form, or writing an
advertisement for a newspaper or magazine, always put your USP at
the top center.

Your hook functions as a slogan to attract attention. It is a catchy


phrase that can be successful in bringing customers to your door to
find out more. Be very precise and concrete with your USP. Be sure
to answer the What, Who, and Why.
Having that task completed, most ads will need the addition of just a
little more information to act as a strong incentive to pull customers
your way. Depending on your goal and target audience, you will
want to include the following:

4. Where
5. When
6. How

You may not need to answer all of these. The core of your message
in any advertisement is your Unique Selling Proposition. Write the
other information, particular to that ad, in several ways to see what
sounds most interesting and most natural.

When you write an article about your company, product, or service


for a newspaper or magazine, or if a media company interviews you,
you have no choice where the article is placed, or what information is
presented. When the magazine or newspaper publishes your article,
or the radio or TV station broadcasts your interview, you have
created Publicity, also called “free advertising.” The media exercises
complete discretion on what is said, how it is said, and where it is
printed or broadcast.

When you pay for advertising, you are paying for the opportunity to
choose what you want to say, where it appears (which section and
sub-section), when, and how often it appears.

Before you begin writing an ad, ask yourself if you have room to
include some other major benefits of your product besides the USP.
List the other benefits in order of importance to you. As you write
the advertisement, always stay in the active tense with action verbs.

Strong words and phrases give your advertisement excitement or


“sizzle”, words like: powerful, unsurpassed, remarkable, sensational,
superior, amazing, unlimited, guaranteed. For the next week, read
the newspaper with a highlighter and pick out words that are used to
excite and delight the reader in advertisements and news stories.

Look for phrases that are geared to move a prospect to action.


Phrases as obvious as: Act Now! Get Started Today! Limited Offer!
Send for Free Details! Don’t delay, Order today! The subject of each
of these short imperative sentences is implied, and it is “You!”

Advertisements are most powerful when written from the second


person, or “You,” point of view. The imperatives are commands to
action. Use “You” in your ads, too. “You will like….” “Just what’ve
you’ve been waiting for…” The second person point-of-view engages
the other party, literally pulls the customer into your world.

A sales letter for Direct Mail, or a letter, in combination with a


brochure, is only effective if it maps out specifically what the new
customer needs to do to acquire the product. Short, classified ads
only two lines long must direct interested parties how and where to
get more information on the product. You can simply say: “Call 1-800-
----- Today!” If you are sending a brochure, include an order form on
or inside a brochure: “Select Your Products Today!” Also, if you take
payment in several forms, be sure to state these ways on your order
form, such as: “Send Check or Money Order to:----“ or “We accept
Visa and MasterCard.”

Remember a good advertisement not only moves your prospect to


action, it also makes it easy for them to place an order. If you are
going to invest the time and money in advertising, make sure that
you guide your new customer through the steps he/she has to take
to make a purchase. Make it easy for them!

Use many of the same guidelines you follow in writing


advertisements when writing sales letters. Keep the language
simple, and don’t assume that people will understand complicated
words. Both your sentences and your paragraphs should be short,
for easy, user-friendly reading. People like to scan information, and
it is very difficult for even highly educated people to scan long
paragraphs with long sentences and sophisticated words. So if you
want prospects to read your letter, make it easy for them.

A sales letter can be as long as you want. However, if you want


people to read it, keep it short and to the point. Two pages, or one
page front and back should be sufficient. The formula for writing a
“winning sales letter” incorporates four steps. Employ these
elements and you will be on course with the most successful
advertisers.

1. Attention - Get the prospect’s attention. You can do this using


some of the key words or action phrases listed earlier.
2. Interest - Get the prospect interested. Begin to introduce the
benefits. (“How would you like…? You can have…” Did you
know…”)
3. Desire - Get the benefits on paper clearly and concisely. List all
the benefits and make the prospect want that product.
4. Action - Tell the prospect exactly what to do. “Mail in the Order
Form today!” “Call 1-800xxxx for more information.” Show the
prospect the compelling need to act without delay. “Limited Offer,” “
Supplies Limited” or “Call within 72 hours and receive FREE with
your order ----…”
There is a formula for writing successful advertising, and this is it.
Advertisers refer to it as AIDA, for Attention, Interest, Desire, and
Action. Virtually all successful sales ads, sales letters, and
advertisements include these components in this order. Remember
AIDA when structuring all your sales materials.

Your sales letter is what sells the product in Direct Mail. Enclose a
flyer or color brochure for interest. Your letter must be so compelling,
that the prospect decides he/she has to have that product. At the
same time, you want to be friendly and personal.

The best way to write a sales letter is to imagine yourself sitting on


the sofa making a sales presentation to your potential customer. Use
a tape recorder to brainstorm your ideas and to hear what people will
read. You can relate personal stories, as you would in a
conversation, but keep them short and relevant. If you can, use the
prospect’s first name in a few places in your sales letter.

Customers pay attention to a letter that has their name within the
body of the document. They know the letter is more than a mere
form letter. Creating customized letters takes longer as each one
must be personalized, and more than likely you will need to print
these letters in-house. You do not need to customize everything all
the time. However, experiment to see if giving your letters a personal
touch improves your results.

Another way to bring human interest to a sales letter is to include


some brief testimonials from satisfied customers. Add testimonials in
quotations, or italics, with the first initial, last name, and the state, or
the city and state where the customer lives.

In the end, if your letter doesn’t look like a standard letter, don’t
worry. You have a lot to include, and you want it to look interesting.
Prepare your text. Then cut, paste, and move testimonials, your
hook, your USP, the ordering information, the free offer if there is
one, and the money-back guarantee, around the paper until you
have something that looks good.

Make sure that you assign staff to follow-up your mailings with phone
calls to everyone, if possible. After a week or two, at the most, send
another mailing or a postcard. If you have to mail several times to
get responses, do it. Successful Direct Mail campaigns most often
take 3-5 mailings, or more, before you begin to see substantial
returns. Each piece, each postcard, goes to the same list. People
need to be reminded that you are interested in them. (For more
information, see Chapter D- Direct Mail, and Chapter T-
Telemarketing.)

Another way to advertise your business, your product or service is to


make yourself available as a local public speaker, by offering
seminars, or teaching classes at a local community college. Not
everyone enjoys speaking before groups, but if you feel you have the
energy and talent to convey information in a special, unique, or
unusual way, start preparing some notes now. Many community
groups meet on a regular basis, and are interested in speakers to
augment their programs. As soon as you make it known that you will
speak for no charge, you will get invitations.

Develop a subject of general interest, and connect your product or


service to your talk. You can also create a slide presentation on a
subject related to your product or service. Speaking engagements
are a great opportunity to network with business people and in the
community. Take product brochures with you, and have a clipboard
available for people to sign their names to receive mailings or a
newsletter. These people make great leads for special product
offers.

If you don’t sell a lot of product as a result of these efforts, do not be


disappointed. You will have an impact on some people. Remind
people to sign the clipboard to stay informed of new developments.
Always remember to ask for referrals. You may meet someone
whose connections lead to great opportunities for advertising your
business and promoting your product.

Take on these activities as your time permits and if you enjoy the
process. Meeting people and getting referrals is your goal. Direct
sales can happen, but you must first find a clever way to connect
general information with your product.

Advertising is a primary factor in effectively marketing your products.


Successful advertising introduces, describes, presents, acquaints,
informs, educates, interests, stimulates, and excites potential buyers.
Whether it is one advertisement in a newspaper or magazine, a
series of radio spots, presenting a product at an Expo or Tradeshow,
or a number of other techniques, successful advertising convinces a
“prospect” to buy. The effectiveness of any advertisement is
measured by the corresponding sales results.

There are many ways to advertise products. Develop and plan your
goals for each advertising activity you undertake. By definition,
advertising requires that you pay someone a fee. Understand what
you want to accomplish, and then select the medium or techniques
most appropriate to reach or target your audience within your
budget. Consistently reiterate your Unique Selling Proposition in
everything you do to woo, win, and widen your customer base.

The roles of advertising and marketing appear to overlap more and


more. Advertisers using traditional mediums like TV, radio, and print,
understand the effectiveness of focusing on specific demographic
groups and targeted markets.
On the World Wide Web, the distinctions between advertising and
marketing are insignificant. Businesses large and small have a 24/7
(24 hours a day, 7 days a week) virtual store. However, because the
Web is so enormous with growth projected to continue at even
greater rates, the biggest task for any business is getting qualified
buyers to a Website.

Website owners are turning to traditional advertising media, like TV,


radio, newspapers, and magazines, to educate and inform
prospective buyers. Some Website owners are targeting very
specific markets. It is difficult to know when advertising becomes
marketing and when marketing is advertising. Understanding the
distinctions is not as important as planning and executing activities
that sell your product or service. That is what the rest of this manual
is about. Enjoy!

INTRODUCTION ABCDE F GH I J KL M N O P Q R S TUV W XY Z LINKS


a
mm BOOKS & PREPARING A MARKETING PLAN

B
Recommended Books

The Recommended Books and Recommended Websites listed here


relate in a general way to Marketing. Subsequent chapters offer books
and websites specific to the topic of that chapter.

22 Immutable Laws of Marketing: Violate Them At Your Own Risk


by Al Ries, Jack Trout - This book is also available on cassette if you
enjoy listening to tapes in your car, while doing chores, or relaxing.
These two best-selling authors are highly regarded marketing
consultants. Get the definitive rules of marketing from two highly
regarded pros.

101 Ways to Promote Yourself by Raleigh Pinskey- This book gives


you a hundred and one ways to promote your business for little or no
cost. Learn insider secrets that most entrepreneurs and small business
people rarely discover, including some methods and activities that will
stop your competition cold.

222 Ways to Promote Your Small Business on a Budget by Ron E.


Gielgun - More often than not, it is the creative, unusual, and original
ideas applied to standard marketing or promotional techniques that
brings attention to a small business. This book is full of ideas that require
initiative and action more than money. Be innovative with the
suggestions and ideas offered for marketing your products in the
following areas, such as Online, Mail Order, Trade Shows, Point of Sale
Promotion, Cold Calling, Media, Overseas, and more.

301 Do-It-Yourself Marketing Ideas: From America’s Most


Innovative Small Companies by Sam Decker (Editor), Jay Conrad
Levinson (Introduction)- This book is a sequel to 301 Great
Management Ideas, a popular bestseller from the editors of Inc.
Magazine. All the ideas presented here were developed by small
companies and are proven to work. The format of a single idea per page
by category makes for quick and convenient reference. Concepts are
both easy to implement and inexpensive, requiring little or no resources.
Says Jay Levinson, one of the authors: “Cozy up to marketing with no
fear of making a mistake---(the ideas in this book) will give your business
the marketing zest and momentum it needs to satisfy customers and
attract prospects.” Specifically you will find 49 Tips for Improving Sales,
48 Ideas for Marketing Using New Technology, 60 Ways to Outperform
the Competition, 57 Original Methods for Direct Marketing and
Distribution, 31 Tips for Finding Funding, and 33 Methods for Building
Your Customer Base. This book will get your creative ideas working to
develop your own original Marketing Plan.

1001 Ways to Market Yourself and Your Small Business by Lisa


Angowski Rogak Shaw - This book was written for the entrepreneur as
well as the small businessperson. Ms. Shaw begins her book by helping
you develop a Marketing Plan. She then offers hundreds, literally a
thousand and one, ideas on how to proceed, advertise effectively, and
implement your plan inexpensively. She offers ideas and suggestions for
Getting Publicity, Direct Mail, Marketing on the Internet, Trade Shows,
Working with Current Customers, Working the Phones, and more.

Guerilla Marketing: Secrets for Making Big Profits from Your Small
Business by Jay Conrad Levinson-Guerilla Marketing is the latest
update in a series of more than thirty books by Jay Conrad Levinson and
his collaborators on effective marketing tactics. Since 1983, companies
large and small have studied marketing strategies from Mr. Levinson and
his colleagues, especially the importance of acquiring market share. This
new and revised edition covers strategies for marketing on the Internet,
new ideas for targeting customers with repeat business, as well as
management techniques in an era of telecommuting and freelance
employees. Guerilla Marketing is defined, also the Thirteen Most
Important Marketing Secrets, Secrets of Developing a Creative
Marketing Plan, Secrets of Saving Money, Ideas for Marketing, such as:
Personal Letters, Trade Shows, and more.

Marketing Warfare by Al Ries, Jack Trout - The authors of the best


selling book, Positioning: The Battle for Your Mind take the stance in
this book that marketing is warfare, involving battles, strategies, and
plans to beat the competition for customers. In particular, you must
defend your “turf” from competition at all times. One chapter deals
entirely with the Superiority of the Defense. Other chapters include: The
Nature of the Battleground, The New Era of Competition, and Strategy
and Tactics. This book will help you better understand how your
competition thinks and why they act the way they do.
Power Marketing for Small Business (Psi Successful Business
Library) by Jody Hornor, Vickie Reierson (Editor) - Learn effective
marketing strategies from a pro. Ms Horner has spent more than 20
years helping small businesses. This easy-to-read and easy-to-use book
teaches you how to develop a marketing plan that works, complete with
examples, samples, checklists and worksheets. It provides advice you
can apply and use, and covers the essentials of marketing and sales
techniques, advertising, budgets, and follow-up. Also Learn how you
can increase your profits.

Uncommon Marketing Techniques by Jeffrey Dobkin, Michelle


Axelrod, E. Joseph Cossman (Preface), Edward M. Moldt - Jeffery
Dobkin is a small business owner and highly respected marketing
consultant. This book is a series of articles on practical, low-cost, and
effective marketing techniques that provide satisfying, high end results.
The book is especially useful for start-up businesses. The authors
demonstrate the importance and significance of a multi-step approach to
marketing campaigns.

Winning Marketing Strategies by Barry Feig - This book contains


more than 600 marketing and sales strategies for a variety of situations.
The book includes worksheets for every activity, allowing you to take the
information and apply the strategies to your situation.

Recommended Websites

Below are several extensive and very thorough websites on small


business development. Each of these sites offers detailed information on
marketing. Be sure to bookmark websites you want to revisit in your
Favorites file while online.

www.about.com – This Internet Directory consists of articles and


information from thousands of “guides,” specialists in various areas.
Search the homepage for topics of interest, or type in your topic area like
a Search engine. Access useful articles, many of which contain links to
additional websites.

www.aeu-inc.com - The Advantage Books Website offers you a


selection of books in virtually every area of developing a small business.
They also have pages of free reports in a number of categories. “Our
goal is simply to provide the best special interest and how-to information
available anywhere, and to offer it at the best prices and highest level of
convenience possible.” Find the Free Reports under Special Offers.
Subjects include Advertising, Business Management, Financial Planning,
Mail Order, Printing and Publishing, and much more.

www.allbusiness.com - All Business is another great website to review


with hundreds of articles in a number of business related topics. Articles
are well organized and often provide links to additional, specific
information within an article. In general, the articles are short and
succinct. Join All Business for FREE, and access 40 tools and services,
350 forms and agreements, their free email newsletter, and big
discounts on business products.

www.ama.org - This is the homepage and site for the American


Marketing Association, a trade industry association you may want to join.
The AMA is “a great resource for anyone involved in marketing.” The
Organization provides a number of tools and resources for its members
including ten journals, a career center with job postings, programs and
events, a library information center, and online education programs. The
AMA has 90 local chapters across the U.S.

www.gmarketing.com – This is the official website of Guerilla


Marketing where you’ll find daily tips, access Jay Levinson’s bimonthly
newsletter, an extensive Bookstore, and a Directory of vendors and
resources for various types of marketing and advertising.

www.infousa.com/homesite/news.html - Info USA has one of the


largest databases for lead generation. They list over 200 million
consumers 12 million businesses, and have 3 million customers who use
their databases to generate leads, find new customers, and develop
direct mail and telemarketing campaigns. Access special articles and
news features daily on the “News and Information” tab of the
homepage. At the “News and Information” page, find hundreds of
Business Basics articles on the left menu bar on such topics as
Marketing Products, Market Research, Pricing Your Product, Marketing
Strategy, The Sales Plan, Your Target Buyer, Positioning Message,
Financing Options, and more.

www.lowe.org - You will find over 3,000 quality articles from


Entrepreneurial Edge Magazine, and more than 400 links to business-
related websites. Subjects on the left menu bar of the homepage
include: Managing Growth, Leadership and Management, Human
Resources, Financing, Marketing, Sales, and more. You will also find
financial templates, a large bookstore, and other useful resources.
www.onlinewbc.org - This is the website for the Online Women’s
Business Center. The information on this website combines the
expertise and the resources of the U.S. Small Business Administration
with several corporate sponsors providing more than 1,000 FREE
articles on starting, managing, expanding and running a small business.
Whatever your gender, find resources from starting a business to the
most current theories on business principles and practices. The
Marketing Mall has articles on marketing, public relations, and
advertising. Also, check out the Finance Center, the Management
Institute, and the Technology Tower.

www.smartbiz.com - The “How-To” Resource for Small Businesses.


This website offers “thousands of FREE how-to resources geared
specifically to help you run your business or department smarter” from
America’s top writers, books and publications. Browse over 60
categories, and links to thousands of tradeshows.

www.toolkit.cch.com – This is the website for the Business Owner’s


Toolkit presenting Total Know-how for small business. Click on the
Table of Contents on the homepage to find thousands of pages of
information on topics such as Starting Your Business, Planning Your
Business, Getting Financing, Marketing, Building Your Personal Wealth,
and more.

Recommended Online Bookstores

www.123-books.com- 400,000 titles, with discounts

www.amazon.com- 2.5 million titles, with discounts and fast, efficient


service
www.bn.com - quality, discounts, lots of titles

www.booksamillion.com- lots of titles with big discounts

www.books.com - the original online bookstore has now joined and


linked with Barnes and Noble
www.bookcloseouts.com - 5 million books, up to 85% discounts

Purchase a few resource and reference books in the areas of marketing


in which you plan to focus. These volumes will assist you in developing
ideas and strategies, and could save you from common mistakes and
errors. A minimal investment in books is an investment in the future of
your company and can literally save you both time and money as you
start your business, as you expand, and as you grow. There is nothing
like re-inventing the wheel for making your life difficult and possibly
disastrous, so avoid that treacherous path at all costs!

Instead, read and refer to the rich experiences of others that you will
find in books. With one or two possible exceptions, each chapter of The
Marketing Desk Reference contains several to many easily accessible
books that will enlighten and enliven your process.

Amazon.com is purported to be the largest bookstore in the world with


over 2.5 million titles in stock. Their service is excellent; they ship orders
within 24 hours; confirm orders almost immediately via email; and offer a
30-day unconditional money back guarantee. If you order a book that
does not provide the information you want or expected, you can return it.
Compare this policy to most bookstores that will not accept returns under
any circumstances. Do not hesitate to order books you want to preview,
but do not abuse their return policy either.

Where you purchase your books is your choice, of course. If you feel
inclined to support your local economy, call your neighborhood
bookstore to see if they have the titles you want in stock. If not, ask
them if they will the order the books for you, and how long you will have
to wait for your order.

Depending where you live, you may find few of your requests are
stocked locally. As excellent as these books are, many of the
Recommended Books in The Marketing Desk Reference are considered
specialized books, and the everyday demand is not sufficient enough for
many bookstores to stock copies. Every title listed is in stock and
available from Amazon, unless otherwise noted. Barnes and Noble and
many of the other online bookstores handle these titles as well.

In addition to being the largest bookstore in the world, Amazon is also


one of the largest and most profitable websites on the Internet. What,
you ask, is the correlation between “Amazon” and discounted books,
records, CDs, tapes and more? How would anyone know or understand
the relationship? Management at Amazon budgeted funds, most likely in
an early Business Plan, to promote the name Amazon.com and the
website in traditional advertising mediums such as radio, television,
newspapers, and magazines.
Amazon was one of the first e-businesses to recognize that having a
business on the Internet was not enough to guarantee the consumer
would come to shop and purchase products at their “Web store.”
Amazon mounted a conventional advertising campaign that was so
successful the site is virtually a household word.

Other websites followed Amazon’s lead, sites like Priceline.com and


Mother Nature.com, as they too discovered that online sales were
directly proportional to the amount of offline advertising they sponsored.
In 2000, numerous Dot com companies rushed to the traditional media
to advertise their presence.

Though some media observers thought the Internet would diminish the
marketing importance of traditional media, the exact opposite situation
has occurred. By some estimates, in the year 2000, at least 25% of the
available traditional advertising market is being purchased by “dot com”
companies. Traditional advertising is powerful because these methods
not only motivate people to purchase products, they also create
consumer consciousness and “brand” recognition.

Amazon was the first successful Internet company that had the insight
and vision to utilize radio and TV to make their presence known. What
has made them so successful, however, is the second vision and
decision that management made. Every Internet company should
seriously consider implementing policies such as these. As regards
shopping for books, most people want to browse before they buy.
Amazon management has worked diligently to create superior customer
service. In many cases, you can get a book delivered to your doorstep
with a 30-day money back guarantee in less time than it will take you to
plan a trip to your local bookstore.

When you visit Amazon on the Internet, you often find a review of the
book from the author or publisher. Check for customer reviews as well.
Amazon provides a list of other popular titles related to your subject, as
well as a list of authors who write about related subjects. You can easily
be distracted by so many options when looking for a book. Stay focused
on your objective of choosing a FEW meaningful guides on topics that
interest you the most with special attention to books related to the
particular methods and tasks you are considering for your Marketing
Plan.

For an abundance of FREE and very useful information on virtually every


subject matter related to small business organization, visit the websites
listed at the beginning of this chapter. Some offer excerpts from popular
“how-to” books. Several provide links to books you can purchase directly
from the author. Any search engine will link you to more websites for
online bookstores if you want to further investigate prices or titles. Once
on a website, type in the subject you want to search to get a display of
the titles that store carries.

A computer is a functional necessity for all your small business


operations. Using the resources available through your ISP (Internet
Service Provider); your browser, (usually Netscape, AOL, or Explorer);
and search engines and directories accessible to you on the Internet,
your computer is also as complete a library of information as you will find
anywhere.

Access to the Internet costs less than a dollar a day, and is a fully
deductible business expense. In addition to providing broad-based
business information, Internet access gives everyone in your family the
opportunity to research subjects online, and communicate instantly via
email with people and businesses all over the world.

As you read through the chapters that interest you in The Marketing
Desk Reference, think of the techniques you want to include in your
Marketing Plan. Writing up a marketing plan is not as important,
essential, or necessary as having a Business Plan. If you have not
already done so, see Chapter G-Getting Started for guidelines on
completing a Business Plan. Your Marketing Plan can be a section of
your overall Business Plan. Regardless, develop a Marketing Plan that is
a working document for you and your staff to use internally as a
guideline to planning and coordinating your marketing activities.

For your Business Plan, the marketing section minimally includes what is
known as the 4 Ps of marketing: Product, Price, Promotion, and Place.
If you not do have a separate section on the Product, you will want to
explain it in detail in this section. Chances are you cover the product
information elsewhere. Elaborate on the benefits and include some of
the features, as well. For the purposes of preparing a Marketing Plan for
you and your staff, you will want to briefly outline each current product.
As the company adds products, you can add and date pages to your
existing list.

Price is the second important component in marketing. For the Business


Plan, you want to outline the pricing structure and payment policies fully.
Having this information in a notebook for reference by staff is a good
idea, as well.
A third aspect to describe involves the Promotional techniques and
methods you plan to use to inform and sell your product to the public.
Most of the major marketing techniques that companies large and small
use to promote their products are listed in The Marketing Desk
Reference. List the techniques you plan to implement with a suggested
timetable for beginning each one. Outline a budget for each effort, so
that you anticipate how and where your marketing dollars are going. An
internal Marketing Plan changes and you make adjustments as you
reach goals or redefine them. Whether you are writing your Marketing
Plan for internal use, or for your Business plan, list projected activities
you anticipate beginning once other efforts are running efficiently.

A diversity of activities that is manageable by you and your staff is the


best plan for success. You want several on-going efforts because you
can only guess what program of activities might be successful.
Ultimately, what works as a technique or program may not be the effort
you imagined. The most important result is your sales volume. Evaluate
what is working, and continue to expand and grow those efforts.

The final aspect to explain in the traditional marketing formula is Place.


The question is: where will the sales, or the most sales occur? If you are
concentrating on Telemarketing and Direct Mail, most of your sales will
be generated in-house. If your plan is to attend Expos and Tradeshows,
inventory leaves the office or shop, and travels to the show where sales
occur. The best part of an Expo is the sales you generate from leads you
bring home. Both Expo home sales and Internet sales are likely to be in-
house.

Catalog and magazine sales, radio, TV, and cable sales may be handled
partially in-house and some aspects may be handled through a
fulfillment company. In some cases, all the activities of these and other
sales will take place off-site. Assign responsibility for the management
activities of sales wherever they occur, including such tasks as data
entry, inventory, handling, packing, shipping etc.

A good Marketing Plan includes a description of your Target Market.


Analyze the lifestyle and characteristics of your customers so you
continue to make your products available to the most likely buyers.
Before you allocate significant funds for promotions or advertising, profile
your ideal customer. Include such factors as age, sex, profession or
professional status, income, education, and residential status. With
these guidelines, and others you develop, look for the best opportunities
to reach your Target Market of customers and clients.

Understanding your Competition is, of course, very important. Get


specific information about other companies in your industry from trade
associations. You want to know your local competition, as well as other
companies that are making a significant impact. Look for information
online using the Recommended Resources in this and other chapters.
You not only want to know who your competition is and where they are
located, you also want to know what strengths or weaknesses they
possess relative to your assessment of your own abilities.

Before you begin marketing, research the demand for your product or
service. Determine if there is a substantial demand for what you offer, or
whether you will need to create the demand. Estimate what percentage
of the market you can and will serve. This number is your market share.

If you are writing a formal Business Plan use some of the above
information in your Marketing Section. Explain why your product or
service is unique, how it fills a need in the marketplace, and what makes
it particularly appealing. Show how you are different from your
competition. For an internal Marketing Plan, a few statements on these
subjects serve as reminders and help keep a focus on your efforts.

The purpose of this chapter is to provide you with some general


resources for beginning a journey of discovering into the world of
Marketing. Subsequent chapters offer much the same format. Both the
books and the FREE information available on the Internet offer the
opportunity to explore each subject in greater depth, and gain additional
insights into the techniques you can pursue to make your business
enterprise more effective and more profitable.

INTRODUCTION A B C D E F G H I J K L M N O P Q R S T U V W X Y Z LINKS
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mm CATALOGS

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Recommended Books

101 Tips for More Profitable Catalogs by Maxwell Sroge - Noted


speaker, educator, and publisher for the Direct Marketing Industry,
(See Catalog News under Recommended Websites), Sroge offers
success tips and information on the creative process of designing
and executing a catalog, including a Catalog Overview; Developing,
Choosing, and Testing Effective Lists; Choosing Products to Sell;
Producing and Mailing Your Catalog, Marketing, Telemarketing, and
Fulfillment. Novices and experienced catalogers can benefit from
his insights and experience.

The Catalog Handbook from Enterprise Magazine - According to


their own assessment, this is “The Most Complete Directory of
Catalogs Available Anywhere,” including Autos, Books, Clothing,
Computers, Food, Gardening, Gifts, Videos and much more. Order
online at www.franchise1.com/catalog.html., or toll-free at 800-
272-0246. They are located in Milwaukee, WI.

The Catalog Management Handbook by The Editors of Catalog


Age Magazine - Published in January, 1999, this is the second
edition of their book originally published in 1991. It contains over 100
articles from Catalog Age magazine. Find information and insights
unavailable anywhere else, and from leaders in the field. Articles
include Business-to-Business activities in the Catalog Industry,
Marketing and Management, Merchandising, Operations, Copy and
Creative, Printing and Production, Internet Marketing, and a special
section on Small Catalogs.

The Catalog of Catalogs VI: The Complete Mail-Order Directory


(6th Edition) by Edward L. Palder - This is the latest edition of a
very thorough and useful Directory of Catalogs. Find catalogs by
product with listings of all the catalogs that carry your product or type
of product, and find catalogs alphabetically by company. nine
hundred categories and over 15,000 companies are cross-
referenced and verified for this edition, published in May 1999. A few
of the categories are: air compressors, books, curtains and blinds,
computers, copiers, luggage, skiing, ski-diving, and yoga.

Nationwide Directory of Mail Order Catalogs – Order online at


www.craftassoc.com from the Craft Association. This Directory is
divided into categories with sections on how to get your products
listed in mail order catalogs, what catalogs are looking for, how to
price your products, and how to create promotional literature.

Secrets to Selling Your Products to Catalog Companies by Jack


Briscoe, Jr. – Order this book from www.gcwoodworks.com

Get the inside secrets from a pro, “This book was written with one
thing in mind: to give you the secrets of a successful marketing
campaign that will allow you to get your products into Catalog
Companies, which welcome new products, and by the very nature of
their operation, perform the advertising function.” You will learn not
only how to get catalog companies interested in your products, but
also how to get people to buy from the catalogs, about preparing a
Vendor’s Information kit, and good sources for mailing lists. You can
also order directly from the author 800-230-5201.

Selling to Catalog Houses by Ron Payle – Order from Advantage


Books at: www.aeu-inc.com. This book offers more ideas, tips, and
information on how to sell products to catalog houses.

Recommended Websites

www.catalog.savvy.com – Catalog Mart is “the easiest, fastest,


and most direct way to receive just about any catalog offered in the
U.S. today.” Catalog Mart lists more than 10,000 FREE catalogs in
more than 800 topic areas. All you do is fill out the electronic order
form, and your catalog request is automatically forwarded to the
catalog houses. Catalog Mart’s vendors send their latest catalog
FREE with no obligation.
www.catalogsfroma-z.com - 1,900 of the “best mail order catalogs
from around the world with 45 categories to choose from. ninety
eight percent have a toll-free number to order the catalog.” (When
you order a catalog, be sure to ask for information on how to list your
product in their catalog.)

www.buyer’sindex.com – A specialized search engine listing over


17,000 web shopping sites and North American catalogs with over
153 million products for businesses and individuals. Get your
product and website listed here, and get indexed in your category.

www.catalogage.com - View the highlights of this monthly


magazine online, and pick-up timely news stories weekly. Also read
special features dealing with Marketing, Technology, and Business-
to-Business. Catalog Age provides you with profiles of industry
providers, archives of past articles and editions of the magazine, list
rental, and an access to an extensive bookstore with categories of
marketing information. You will find a list of the top 100 catalogs by
sales volume for the previous year.

www.cataloglink.com – Browse categories for catalogs of interest,


then order the ones you want (most are free). This website is
organized much like an online shopping mall, and was designed for
the consumer to find and order catalogs for shopping convenience.

www.catalog-news.com - This is a “comprehensive catalog


industry resource” from Maxwell Sroge’s Company offering two
newsletters; an excellent Direct Marketing bookstore; Direct
Marketing links; catalog, creative, and consulting services; a series
of “Insight Reports;” and much more. If you plan to use Catalogs in
your Marketing Plan, this website is very useful and informative with
FREE relevant and applicable tools.

www.catalogsusa.com – Catalogs Across America offers several


FREE Directories including a Free Catalog Directory, a free Online
Shopping Directory, a free Travel Directory. and a free Professional
Directory. You can get a FREE listing for your business in the Online
Directory

www.catalogworld.com – The “Catalog Junkies Website.”


Find your favorite catalog, request a free copy, select by
categories, order online, and add your product and/or
website to the Catalog World Directory.

www.dsa.org - The website for the Direct Selling Organization, the


national trade association of companies that distribute goods and
services directly to consumers. This association, like many other
trade organizations, offers members seminars and events, industry
information and statistics, and programs for educational
enhancement. The DSA provides information and access to industry
suppliers. Currently there are over 140 member companies.

www.mallofcatalogs.com – “Choose to get On or Off mailing lists


of hundreds of free and priced catalogs at this website.” Browse
through many topic areas to get details of the catalogs. You can
also add your company to the Mall of Catalogs .

www.teraglyph.com/cathome.htm – search the alphabetical Atlas


of Direct Mail Catalogs, offering contact information on over 15,000
catalogs. This site also offers links to other catalog websites.

Catalog marketing is one segment of the Direct Response Industry.


Any marketing program that advertises directly to the public without
a retail middleman, is direct response marketing. Flyers, letters, and
postcards you send as part of a Direct Mail campaign are direct
response marketing. Commercials and Infomercials on Radio,
Television, or Cable, as well as articles, advertisements, or classified
ads in Magazines and Newspapers are also forms of Direct
Response Marketing.

The Direct Selling Association (DSA) is the national trade


association of companies that manufacture and distribute goods and
services directly to consumers. Founded in 1910, the association
currently has approximately 140 member companies. According to
DSA statistics, U.S. sales in the Direct Response industry more than
doubled during in the last decade, to over $23 billion.

The DSA defines direct selling as “the sale of a consumer product or


service in a face to face manner away from a fixed retail location.”
Some consider commerce on the Internet an extension of the Direct
Response Industry. Adding e-Commerce revenues to the annual
figures of other segments of this industry will dramatically increase
total annual revenues for the entire industry in the years to come.
Direct Mail Marketing is similar to Catalog Marketing. If you have
more than one product, you may be sending literature that is similar
to a mini-catalog, such as a catalog printed on simple newsprint.
Several large, major mail order houses distribute 5 or 6 million
catalogs every few months. Each of these may be a hundred or
more pages, slick, photographic, and glossy, looking much like a
magazine. Either extreme, and everything in between, is direct
solicitation from a business to the consumer and is called Direct
Response Marketing.

The main difference between Catalog Marketing and Direct Mail is


that you send your own sales literature and brochures with a Direct
Mail solicitation. Also, in Direct Mail Marketing, customarily you
handle all telemarketing and response inquiries, fill the orders and
ship them, (known as fulfillment), and manage credit card
transactions. However, some product providers find that sourcing
these tasks to companies that specialize in completing them is a
more efficient and expedient that managing them in-house.

Catalog advertising gives you the opportunity to place your products


in someone else’s catalog with a number of other vendors. First,
you must sell the idea of your product or service to a catalog or
several catalogs. Once you are accepted, you may contribute ideas
for how your product or service is presented in the catalog. These
companies have huge art studios where highly trained and
experienced graphic designers prepare their catalogs. In most
cases, you will not have the opportunity to approve the final “copy”
before it is printed.

Orders for your product or service result from readers viewing the
information in the finished catalog. In essence, customers decide
whether to order on the basis of this information. You may or may
not be able to get contact information on customers who buy your
product. Catalogs view purchasers as their customers. If you
enclose a “customer satisfaction card” in your packaging, some
buyers will return it. If you have a product guarantee, returns may
be negotiate through you.

In essence, the catalog company is your customer, and the buyers


are their customers. There are a number of benefits of this
arrangement for you. A professional company prepares a
presentation of your product. You get national exposure, and the
opportunity to sell your products to thousands of customers through
their customer database. You, however, only have to manage the
catalog account. Now imagine having a half a dozen, or fewer, major
catalog accounts, and selling thousands to tens of thousands of
units a year.

When your product is in several major catalogs, your only concern is


having enough stock to keep up with their orders! These orders will
generally increase, as well. For some small businesses, several well-
placed catalog accounts provide the bulk of their business.
Anticipate orders of 1,000-5,000, or more units, at one time. These
orders are thousands of dollars in your pocket for you to develop
other markets for your product.

Unlike retail establishments, catalogs welcome new products. In


fact, catalog houses are constantly in search of new products to
keep their inventory new and their publications fresh. Because these
companies depend on new and different products to sustain them,
they are always receptive to new offers. One might go so far as to
say they NEED and WANT new products. Once your product is
accepted and introduced in a test run, the catalog company is likely
to place a substantial order.

Another benefit of marketing through catalogs is that a series of


large purchase orders demonstrates consumer demand for your
product, and paves the way for marketing with major retailers.
Normally retailers are not inclined to request your product, but if you
show them a record of significant catalog purchase orders, you will
have some bargaining power.

The Direct Response Industry is enormous, in large part because


there are thousands of stations and outlets in the United States for
radio, television, and newspapers. In addition, there are well over
15,000 Catalogs, and thousands of magazines. The Direct
Response Industry is a highly visible one, offering an ideal vehicle
for moving new and innovative products into the public arena.
Whether your product is listed in a major Catalog, discussed on
syndicated radio, highlighted in a newspaper or magazine, or
presented on television or cable, the exposure can boost sales into
the hundreds or thousands of units literally overnight.

As a result, securing a spot on one of the top-rated TV home


shopping shows, like QVC or HSN, is becoming increasingly
desirable and competitive. Yet, there are thousands of other radio,
cable, network TV, newspapers, magazines and Catalogs that can
bring high visibility promotion to a product, as well.
There are a few things to remember when contacting any media,
including Catalogs. If you plan to explore TV, cable, radio, or
newspapers, review this information again when you reach those
chapters.

Acceptance by a media company requires a lot of communication on


your part. Remember, you will have one opportunity to make a
positive, lasting impression with many of these companies. Be sure
you are ready with all the materials you need.

Do not even consider sending an idea, or a sketch of your product.


Make sure you have more than a prototype. Direct response media
companies market their products to the public NOW, and NOW is
whenever you present it to them. Unless your product is on the
assembly line or ready to ship, they will not be receptive. This does
not mean you need to have 20,000 already packed. You need the
true and honest product that the consumer will buy, with
manufacturing or assembly already arranged.

You can begin by E-mailing the Catalog companies a Press


Release. (See Chapter P- Publicity and Press Releases.) You can
also send a letter. Be sure to follow-up your email or letter with a
phone call. Sending an email can take the “cold-call” feel out of
phoning any prospect because, in the conversation, you can refer to
your email letter. Be careful to avoid “spamming” or sending
unsolicited emails. You can acquire lists of media agents who
routinely expect to emails on products and services.

Your object is to get information to the companies you feel will be a


good fit for your product. You may find more success by calling a
direct response company, before you send a letter. If you have
decent long distance rates (which you should), a preliminary
telephone call to a Catalog, magazine, newspaper, radio or TV
station, may be very effective.

The first person you are likely to speak with is the receptionist. Ask
for the name of a buyer to whom you can address a personal letter,
and ask for their extension for future reference. If you are lucky
enough to reach an actual “buyer” on your first call, introduce
yourself politely, and explain that you are sending a letter and
brochure about a new product.

Ask the buyer if he/she would like a sample, but be aware that
buyers normally want just information in the beginning. A good initial
package is a personal letter from you, a sales brochure or literature,
and a color glossy picture of the product. Save yourself money by
getting a professional picture and making color copies.

Be sure to present a professional appearance in everything you do.


Letters should be typed or printed on your company letterhead.
Make some reference to the product at the top of the letter if its not
included in the letterhead or name of the company. Make sure the
sales literature is well organized, attractive and concise.

Handle yourself politely on the phone. Stay to the point. These


people are very busy, so make your best impression. Be sure to give
the person to whom you speak your name, and the name of the
product. Also, make sure to mail the information that day. If you are
sending your packet across the country, Priority Mail is a good
hedge against potential postal service delivery delays.

Plan a budget for this initial contacting phase. Don’t forget to include
your phone bill as one of your expenses. If you plan to contact a
number of companies, prepare a number of kits in advance so that
everything is ready to send, except the personal sales letter.

In the interest of expediency, you can offer to fax your letter and/or
brochure. Depending on your phone service, this could actually be
cheaper than mailing, and much faster. Regardless of whether you
fax or mail, follow-up with a phone call to your contact either later
that day (when you fax), or within the next few days after you mail.
This call is extremely important. Don’t expect the “buyer” to call you
back or have an answer for you.

You want his/her impression of the product. What you need to


ascertain is if the buyer has read the information you sent. Don’t be
afraid to come right out and say: “Have you had a chance to look at
or read the information on (name the product).” “When do you think
you will have time?” “What would be a good day and time for me to
call you back?”

Keep in mind that some of these media buyers are reviewing


hundreds of products a week, and many have other job
responsibilities with their respective companies. Keep a notebook
near your phone to record with whom you speak (company and
person), when (the date), and the nature of the conversation. You
can keep this information in a Day-Timer as well. Always get a
name, even if you talk to a receptionist. In time, she will recognize
your voice, after you have made a number of calls, and she will help
you get a little closer to your goal.
Timing is a crucial factor in the Direct Response Industry. Buyers
often begin preparing for the holidays on December 26... for the next
year. If there is any slowdown in activity, it is in the early months of
the new year, right after the holidays. By the end of the spring,
however, most Catalogs have completed their listings for the year.
By the fall, it is too late to begin holiday promotion in any media.

Begin contacting media companies in your local area or region, and


expand from there in ever widening circles. Contact national media if
you want, but remember the bonuses of being a local celebrity.

The buyers with whom you speak recommend the products


company executives showcase, so they are important and influential.
Be aware of how you present yourself to them. Personify the three
“Ps.” Be Pleasant. Be Persistent. Be Patient. Be all three, all the
time. You can often win with Persistence, but be sure to remain
Patient and Pleasant throughout the process when dealing with an
agent from any media. As difficult as it may be to remain cool and
calm, your self-control and gentle persistence are as likely to win an
account for you as a great product.

If you are thinking about creating your own catalog, consider this: the
biggest catalogs, such as Miles Kimball, Harriet Carter, Lillian
Vernon, Hanover House, etc., mail several million catalogs every few
months. These companies are really nothing more than giant mass
mailers. They sell products in huge volumes. They are not inventors,
developers, or manufacturers. They are going to buy each and every
one of their products from someone. Be one of those someones.

In addition to the above, here are some considerations for you to


ponder when deciding whether to focus your marketing campaign on
Catalog distribution. Catalog companies generally want to represent
the manufacturer or owner. If you are a distributor, then there must
be money for you too, and that generally decreases everyone’s
profits. Remember the following as you research the thousands of
Catalogs, or decide to create your own.

1. Which catalog companies promote my line of products, or


merchandise like mine?

2. Is my product unique or different enough to meet the catalog


houses’ classification as a new product?

3. What quantity, size, or other variables can I offer as a discount?

4. What is the ratio of the customer’s price to my cost? Is it 5:1, or


better, insuring I make money? If not, what will I make per unit?

5. If I have the option, do I want to arrange my own fulfillment?

Generally, Catalog houses will buy your merchandise from you after
first testing it in a trial run. As a general rule, once they agree to
market your product you are no longer involved in the distribution or
fulfillment of any product orders they receive.

Fulfillment involves everything from taking the order to processing


the payment, data entry, packing the product, and shipping it. If you
want to manage these aspects of your product, inquire about
handling the fulfillment through your office. In most cases, you will
need a dedicated 800 order line, fax machine and copy machines,
packing and shipping facilities, and data processing to maintain
billing.

You have more contact with your customers with an in-house


fulfillment center, but you also have all the headaches. Depending
on other marketing programs you pursue simultaneously, you may
need this in-house fulfillment center, regardless. Another possibility
is to out-source all fulfillment by hiring a separate company to
complete the tasks, and eliminate all of these activities from your
own physical plant entirely.

Catalog Marketing takes researching to locate the companies you


feel are best for your product. It can take time to contact a number
of companies and to get responses. The good news for you is that
these Catalog Houses are always looking for new products, different
products, and innovative products.

Continue working to develop contacts and interest in your product


even after you have established some accounts. Several accounts
can mean thousands of units a year that you ship to one of only a
few “customers.” In return, you will get a nice big check for which
you will have many uses. Once these accounts are working on
automatic, you can find many, many other ways to market your
product.

One of these additional methods is to run your own Direct Mail


Campaign, the subject of the next chapter.
INTRODUCTION A B C D E F GH I J K L M N O P Q R S T UV W XY Z LINKS
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D
Recommended Books

2,239 Tested Secrets for Direct Marketing Success by Denny


Hatch, Don Jackson - This book is a compilation, according to
author Denny Hatch, of the “accumulated wisdom, maxims, rules,
discoveries, revelations, standards, principles, canons, and codes of
20th Century Direct Marketing. Read for sheer enjoyment. Marvel at
it for its crystal clear insights. Revel in it for the costly mistakes it
will save you.” Find tidbits of wisdom here on such subjects as
Catalogs, Direct Mail, Media, Direct-Response TV, Fulfillment,
Headlines, Lead Generation, Lists, Space Ads, Telemarketing,
Brochures, and much more!

Business to Business Direct Marketing: Proven Direct


Response Methods to Generate More Leads and More Sales by
Robert W. Bly A practical, hands-on guide to increasing business-to-
business sales which are different than sales of business-to-
consumer. Every business must buy a variety of merchandise just to
stay in business. Marketing consultant Robert Bly offers three
hundred pages of tips and ideas on how to market to other
businesses.

The Complete Direct Marketing Sourcebook: A Step-By-Step


Guide to Organizing and Managing a Successful Direct
Marketing Program by John Kremer - This book is a revised
edition of Mail Order Selling Made Easier which was originally
published in 1990. The book covers the basic principles of direct
marketing, with 70 checklists, worksheets, forms, charts and sample
letters for use in a direct mail campaign. Chapters include Finding
Products, Setting Prices, How to Design an Effective Package, How
to Find and Test Mailing Lists, Selling Through Catalogs, Serving
Your Customers, and more.

Direct Mail and Direct Response Marketing: Techniques the


Experts Don’t Want You to Know by Tom Mundy – Review the
information and order online from: (www).palis.com. Look for the
tab on the left menu bar that says: “Direct Marketing Secrets of Tom
Mundry,” and find Direct Mail insider information and tips known only
by the largest corporations including: how to get the names and
addresses of thousands of buyers, how to get a minimum 20%
response, how to mail out 10,000 pieces of mail each week and not
pay postage, and how to get FREE first class postage.

Do-It-Yourself Direct Marketing: Secrets for Small Business by


Mark S. Bacon - This is a 2nd, revised edition of a very through and
complete book on Direct Marketing. The first section is an important
one: Defining Direct Marketing, including the Growth of Direct
Marketing, and How Direct Mail Will Benefit Your Business. The
2nd section discusses Finding Your Market and Buying, Creating,
and Using Lists in a number of different formats: Postcards, Card
Paks, Free-Standing Inserts, Catalog Print Ads, and Broadcast
Media. Other topics include Building Urgency, Online Marketing,
Letter-Writing, Business-to Business, Customer Service and more.

The Elements of Copywriting: The Essential Guide to Creating


Copy That Gets the Results You Want - Gary Blake, Robert W.
Bly - This is an expanded, new edition of Robert Bly’s classic, The
Copywriter’s Handbook, with the added contributions of Gary
Blake. The authors cover both copywriting principles and various
forms of copywritten material. Chapters include the Fundamentals
of Persuasive Writing, Power Copywriting Techniques, and
Headlines and Body Copy. This version covers writing copy for the
World Wide Web, press releases and press kits, print
advertisements, Direct Mail and more.

The Lead Generation Handbook: How to Generate All the Sales


Leads You’ll Ever Need Quickly, Easily, and Inexpensively by
Robert W. Bly - A comprehensive guide to the numerous techniques
for generating sales leads, including samples, forms, worksheets,
and other useful tools. Among the topics covered are direct mail,
telemarketing, seminars and other presentations, publicity, trade
shows, and the Internet. Learn how to design lead generation
programs that increase response rates, and generate more ad
inquiries. Learn how to monitor and measure your results, about
follow-ups, and much more.

Inside the Leading Mail Order Houses by Maxwell Sroge - This


book provides the “inside scoop” on the largest direct marketing
companies. Profiled are the names, addresses, phone numbers,
and key executives of 200 companies with a description of the type
of business. Find out the details of ordering data from the most
successful companies.
Persuading on Paper: The Complete Guide to Writing Copy
That Pulls in Business by Marcia Yudkin - Whether or not you
agree with Ms. Yudkin that anyone can learn to write copy, you will
learn the mechanics of what constitutes effective copy. A series of
steps teaches you how to “persuade on paper.” Topics include:
understanding your market, choosing the language which best
appeals to your target market, advertising, editing, formatting,
graphics, and printing ideas and tips. Ms Yudkins’s goal is to teach
you to write effective copy. At the very least, your copy writing skills
are likely to get much better.

Response! The Complete Guide to Profitable Direct Marketing


by Lois K. Geller - (Also see Direct Marketing Techniques:
Building Your Business Using Direct Mail and Direct Response
Advertising.)

Here is a strategy for creating a Direct Marketing program from a


leading expert in the field, a step-by- step understanding of the
components of building a solid campaign from planning and
budgeting to developing loyal customers. Learn how to create
profitable packages, use print ads, radio and TV, and how to use
both in-bound and outbound telemarketing. Winning Direct
Response Advertising: From Print Through Interactive Media
by Joan Throckmorton, Thomas Collins - This book thoroughly
covers writing and executing a successful direct mail campaign and
covers proven formulas with key sales guidelines. Most of the book
focuses on Direct Mail, but the final chapter serves as a great
introduction to writing and preparing copy for the broadcast media.

Direct Mailing List Sources on the Internet

http://caldwell-list.com - Caldwell offers free consultation and on-


going guidance based on 30 years in the business. They also claim
to have the lowest prices with most accurate, deliverable lists. Visit
on the Internet or call: 1-800-241-7425.

www.bestpricedlists.com - These Internet-based list brokers can


get any of over 30,000 lists for less, including: sales leads,
telemarketing, or email. Visit them on the Internet or call 1-800-964-
2378.

www.infousa.com Directories/CDs include the 50 states’ business


directories, an all USA business directory with 193,000 names, US
physicians and surgeons, and US manufacturers. Consumer mailing
lists with free white and yellow pages you can load onto your site.
Also see business article links.

www.myprospects.com Select prospects from a data base of 14


million businesses and 180 million consumers by defining
geographic boundaries and a selection of prospect qualification. Pay
only for the names you select. First 200 free plus free label making
software. Also read the free Online Direct Marketing Tutorial

Recommended Websites

http://members.aol.com/JSResource - Jones Strategic


Resources connected to over 50 outsource providers for fulfillment,
can help you find the right vendor for your product

www.all-biz.com/articles/question.asp -“Questions People Ask


Me” Direct Mail marketing consultant, Jeffrey Dobkin answers a
number of questions about Direct Mail based on his book: “How to
Market a Product for Under $500,”

www.amlist.com - American List Counsel provides you with tools


to make your direct mail process “as productive as possible.” They
provide data and list sources, and a Knowledge Center, a virtual
business library with how-to articles, and an Ask an Expert program
to get answers from a real person.

www.amlist.com - The Advertising Mail Marketing Association offers


members news and information on the latest developments on using mail as
a business medium.

www.dmnews.com Sign up for top stories from Direct Marketing


News which come to you as daily email.

www.craftassoc.com/modisk.html - Order the Craft Association’s


Guide to Breaking into the Mail Order Business, with over 45 articles
on the secrets of mail order. View the full list of the topics on the
website. A few are: A Dozen and One Ways to Reduce Postage,
Important Mail-Order Tips, Sources of Free Mailing Lists, What
Does It Take to Make It in Mail Order, 101 Ways to Improve Your
Direct Mail Response, and more.

http://homebiz-info.com – Get complete information here on how


to start a mail order business from home. Find articles and
information, order a business start-up kit, and stay up to date with a
free newsletter. Every week there is a feature article regarding
pertinent information on developing your business.

www.palis.com/index.htm – Get 294 Mail Order and Direct


Marketing reports FREE, and access to hundreds more. Scroll down
the topics to choose areas of interest to you.
www.thinkdirectmarketing.com –This is a Direct Marketing
membership organization offering tools and benefits to boost your
Direct Marketing programs, including, product discounts, marketing
tips, news, and a Marketing Solution Center with an Ask the Experts
center. Search a North American database of 110 million listings to
get powerful lists for low prices.

One of most inexpensive ways to reach your target audience is


through Direct Mail. It is also one of the least obtrusive and one of
the best ways to contact people. A prospect can examine the
contents of your letter at his/her leisure. The letter stays on a desk
or mail table until the prospective customer feels like taking the time
to read it. As expensive as they can be, radio and TV commercials
are on the air, and gone. If a prospect misses some of the
information, that is too bad. Maybe he or she will catch another
airing of the commercial. A letter is personal and permanent.

If you enclose a small token or gift, (see Chapter Q-Quick and


Quality Ideas That Work), and stamp “Free Gift Enclosed,” you can
bet your prospects will open your letter. Very, very few people throw
away a first class letter stamped “Free Gift Enclosed.” People are
curious. They want to know what is inside that envelope.

We live in the Information Age. Communication technology


abounds, with video, DVD, computers, email, faxes, phones, cell
phones, and satellites, to name a few. Yet, the U.S. mail, known
affectionately in the computer world as “snail-mail,” is still the
primary means of communication for both business and personal
purposes.

Direct Mail as a sales medium is as old as the pony express.


Success with Direct Mail depends on three things: your list….your
list…. and your list. Of course, other factors play important roles.
You must have an interesting, useful, and unique product. Your
sales letter and your product presentation must be direct and
informative, yet pleasing, as well. Enticements to get your customer
to order, such as give-aways, coupons, contests, and various other
incentives, also influence a customer’s decision to buy.

Contact several list brokers to get several competitive quotes. One


of the great advantages of Direct Mail is how specifically you can
target your mailing audience. Initially, you may want to send several
small mailings to narrow the definition of your ideal customer, and
discover the key characteristics of your target audience.

To get a list of responsive buyers requires testing, and changing,


updating and refining your list. Adapt and change the list and the
information you mail until you begin to get the responses you want.
Only change one variable at a time. Refining your mailing list is a
scientific endeavor. Any college freshman will tell you to change
only one variable at a time to develop a comprehensible explanation
of probable cause.

Begin by refining your sales letter with a special offer geared to


prompting more people to order. Offer a “bakers dozen,” or two
products for the price of one. Another good offer is to encourage
customers to order by a certain date to get a second product for half
price.

There are endless variations on pricing a product to provide


incentives. You need to know your “hard” or basic costs. From there
you can offer a number of variations in order to stimulate sales. If
you have a consumable, reusable, product that current customers
order repeatedly, consider offering a “2 for 1,” a free product with the
purchase of the first one. You can afford to offer extra “perks” to
new customers who will most likely order regularly from you in the
future.
Another test of your Direct Mail campaign is to refine and re-design
the opening comments of your sales letter. See if you can make
your offer even more customer friendly. You really have to catch and
hold the customer from the beginning in a sales letter. You want
them to read on, but they won’t unless you grab them and pull them
into the exciting world of your product. Do this by stressing the
benefits to them. Write the whole letter with the customer’s needs
foremost.

Individuals who have consulted and worked with Direct Mail for
many years, all re-iterate the value and importance of the postscript
at the end of your letter. Research shows that many people read
the P.S. even before reading the letter! You know what you want the
reader to see first: your friendly offer stated clearly, and succinctly.
Reiterate the offer concisely in your postscript. If you doubt the
validity of this phenomomen, test it. Put something else in the P.S.

You can test variables in the materials, and you can test your list.
Tests should be small, no more than a hundred pieces. You can
even test to see if you want to spend your time and resources on
Direct Mail. One word of caution, though: know your product. Have
experience selling it at Trade Shows, through Telephone Marketing,
or Direct Sales to customers. Do not attempt to sell anything
through the mail unless you have had some experience selling it
face-to-face.

You can further refine your offer by sending a variety of test offers to
individuals on one list. You might get a very clear indication of
which offer appeals to your target audience the most, if you receive
a lot more orders from one offer than all the others. In the same
way, you can test the responsiveness of a target market by sending
one offer to a number of potential lists, and study the common
characteristics of those who respond.
Direct Mail is a tremendous opportunity for you once you have an
established customer base from which to draw testimonials.
Testimonials are a very powerful sales tool in Direct Mail offers.
Once you have been in business for awhile, you have a clear
understanding and assessment of your ideal customer, and can
select a suitable mailing based on many objective criteria. Define
your target audience, and have the list broker of your choice select
candidates who fit the age, gender, income level, and educational
background. You can require that the candidates fit one, two, or
more of you criteria. Often hobbies and interests help to define the
type of person that would become a likely buyer.

You may have heard that the response to Direct Mail is often less
than 5%. A campaign of multiple mailings is likely to increase your
overall percentages significantly. Though you want all sales efforts
to produce revenue, there are a number of others reasons to
promote your product or service through Direct Mail.

You can build an awareness of your product or service in a personal


way using Direct Mail. Direct Mail is perhaps the most personal of all
advertising methods except face-to-face selling. You can support
community fundraising efforts using your product, include
educational information, including seminars or workshops you offer.
Direct Mail supports other concurrent advertising programs, like
outdoor advertising or radio spots in the same geographic area. If
you have a storefront or your products are available in another retail
location, Direct Mail can bring traffic to the store.

One very important reason to use Direct Mail is that the process
gives you the opportunity to build your own mailing list of buyers and
hot prospects. Direct Mail is a good way to test new products and
get feedback before spending a lot of money on media advertising.
Direct Mail allows you to target a specific audience, something you
cannot do easily with media advertising. Results are immediate,
and measurable.

Boost your sales in Direct Mail by planning a follow-up telephone


campaign. Virtually any list service will locate a mailing list for your
local area or region, and provide local phone numbers if your long
distance phone bill concerns you. Long distance rates continue to
drop, and making calls across the country during business hours is
much less of a financial burden than at any other time. Check to see
if you have the lowest rates available in your area.

You have researched candidates likely to respond to your offer, and


have a list of likely buyers. Now, you must write some killer copy.
Make them an offer they can’t resist. Good ad copy is extremely
important. Good copy always focuses on customer benefits rather
than the product.

Write your letter like you are having a conversation. Be friendly, and
helpful. Offer a few free tips. Use short, clear, concise words and
statements. Use the letter to personalize the information in your
brochure. Finally, end all good copy, including a sales letter, with a
“call-to-action,” a direct prompt aimed at moving the customer to
make a purchase. Send this sales letter first class with one of your
brochures, and possibly a trial or sample product.

Study a copywriting book, or a series of articles, that will help you


make the information compelling. (Check the recommended
resources at the beginning of Chapter P-Publicity for books with
helpful copywriting words and phrases.) If possible seek
professional advice when you first begin. Photocopy stores and
print shops often will assist you with layout at no extra charge.
Sometimes these businesses have semi-professional staff available
to assist you in writing ad copy. You can do a great job yourself if
you keep in mind several important factors.

Although you are writing a sales letter, what is most important is that
you realize this letter is actually yours sales presentation. In a
sales presentation, (see Chapter S- Selling and Closing the Sale),
your major focus is to assist the prospect in uncovering the benefits
of the product for himself/herself. The most important factor in any
sales presentation is meeting the needs and desires of your
potential customer. Make that hurdle, and you make a sale.

With Direct Mail, you are not talking on the phone (at this point,
anyway) to your prospect and you are not in a face-to-face meeting.
You need to make your letter personal, friendly and conversational.
Imagine having a conversation on the telephone or speaking with a
potential customer and attempt to duplicate the mood and feeling.
After you write this sales letter, read it aloud to yourself and see if it
sounds natural. Keep your letter to about one page, or one page
double-sided. Keep in mind people are busy these days. Make
every word and every phrase count.

State your offer very clearly in several places. If you have some
testimonials from other satisfied customers, you can use parts of
what these people say to present your offer from a client point-of-
view. You can state an offer in more than one way, but be very clear
what you are offering.

Be sure to “ask for the sale” in at least one very prominent place.
You can offer to sell your product through a clip off coupon; by using
Visa, MasterCard or a check; or give an 800 number for them to call
for more information. The 800 number can be a message machine
only where you retrieve names and numbers. Asking for the sale is
also known as the “Call for Action.” You must tell prospects what to
do and how to do it. If you want to make sales, leave nothing to
chance or guess work. Convince them they want your product, and
tell them how and where to order.
Your Direct Mail effort should be a campaign, and not just a single
mailing. It often takes several solicitations to prompt prospects to
purchase. As part of this campaign, coordinate a telephone follow-
up to one of the mailings. Mail as often as you can afford to pay the
costs. The timing of a mailing can mean the difference between a
prospect buying and not buying, so continue to make your offer. The
telephone campaign will enable you to get a pulse on the prospects’
interest and readiness, and give you a purpose for staying in touch.
People are generally very responsive to anyone who shows interest
in their life situation. Be friendly, concerned, and persistent, and
watch your sales increase.

Several online companies offer outsourcing service for Direct Mail.


You design the information on your computer, send it to them via
email or fax, and they handle the rest. Representatives check the
brochure and sales letter, and return a proof with each piece of your
mailing, so you can approve the finished product. You never have to
leave your desk.

These companies arrange for the printing of your brochures and


letters. You send them your mailing list, and they complete all the
mailing tasks: folding, stuffing, sealing, and adding the postage. The
turn-around time for the complete process and cost for the service
varies. One distinctive advantage to sending your Direct Mail with a
company that specializes in bulk mail is that you can send to a
worldwide list.

You also save on domestic postage, as well. They mail in such bulk
quantities that their cost often drops to 27 cents per piece.The
process pools your mailing with a number of other mailings. The
total number of pieces gives everyone a discount. The availability of
this cooperative effort means you win by saving time and money.

For more information on Eletters, contact:


http://prodigy-business.digitalwork.com
www.4eletter.com/about.asp
www.allbusiness.com/business_center/tools
(See related Direct Mail articles)
www.infousa.com

With the Internet came email, the “free” way to send letters around
the world instantaneously. Many have discovered email is also a
great way to contact prospects. The use of email for business
solicitations has been abused, however. Unless the recipient has
requested your information through a company or service on the
Internet, unsolicited email is considered highly undesirable.

People who send solicitations to others that have not requested


information are “spamming.” The Internet community considers
spamming a serious offense. If reported, your server is likely to
terminate you, and you can be placed on a persona nongrata list.
Getting reinstated with any other server can be very difficult.

A new form of email advertising, called “Opt-In” is gaining support


and credibility. Postmaster Direct, a site sponsored by NetCreations,
has been sending promotional messages to people who request
information since 1996. They boast of over 3,000 topical interest
lists and over 5 million Internet names. You can purchases lists
from them beginning at 10 cents an address.

“Opt-In” email, will cost you less per piece than regular mail and
you won’t have to contend with mailing procedures. With
Postmaster Direct your offer often will be included with as many as
30 or more other offers, though you can select a solitary mailing and
pay much more. Some marketers report response rates as high as
15%, or more, with sales in the thousands per day using Postmaster
Direct, but these percentages are not the average.

The best way to decide whether “Opt-in email” is right for your
product or service is to subscribe (for free), get the mailings, study
them, and decide. You can visit the Postmaster Direct website at
www.postmasterdirect.com.

Direct Mail is an excellent way to market your product or service. A


number of companies have built fortunes through Direct Mail.
Letters, cards, gifts and free offers establish these relationships.
Plan campaigns with multiple mailings for best results. List
companies can provide highly targeted lists of customers likely to
respond to your offer. Work with several until you find one that is
helpful and provides consistently good leads. Several services on
the Internet have made the mechanics of Direct Mail easier and less
expensive.

Be direct in your solicitations. Be friendly and offer a solution. You


will make sales and build a solid base of happy and satisfied
customers.

INTRODUCTION A B C D E F GH I J K L M N O P Q R S T UV W XY Z LINKS
a
mm EXPOS, TRADESHOWS & CONVENTIONS

E
Recommended Books

150 Top Tips and Tactics for Effective Trade Show Exhibiting-
Published by Exhibitor Magazine and edited by Paula Marlow, this
booklet is available for a minimal price online at
www.exhibitornet.com “Save time and money.” Learn how to
increase the effectiveness of your Tradeshow exhibit. Find the
Exhibitor Store on the left menu tab on the homepage, click onto
the Order Page for this booklet and the Exhibit Planning Guide listed
below.

Exhibit Planning Guide - A collection of worksheets for planning,


executing, and following-up a successful Tradeshow. Prepared by
the staff at Exhibitor Magazine, this little booklet will keep you
organized and on track with your budget and deadlines. The
insignificant cost covers their printing, shipping, and handling, and
provides you with a very inexpensive, highly useful tool for getting
the most from your exhibiting experience.

Expositions and Trade Shows by Deborah Robbe -One of the first


authoritative guides on how Tradeshows and Expositions work, this
book delineates the key players and their responsibilities: the show
manager (the hosting company); exhibitors (you); location or venue
managers and staff; convention and visitors bureaus; service
contractors; and the attendees.

Guerrilla Trade Show Selling: New Unconventional Weapons


and Tactics to Meet More People, Get More Leads, and Close
More Sales - Jay Conrad Levinson, Mark S. A. Smith, Orvel Ray
Wilson - According to the publisher, this book is “packed with
insider secrets, tips and techniques. It is ideal for any size business
that wants to use Tradeshows as an effective marketing weapon.”
According to motivational guru, Brian Tracey, this is “the definitive
book on how to sell more, faster, and easier at Tradeshows. It is
loaded with practical, proven principles, methods and techniques
that anyone can use to double, triple, and quadruple their revenues
at any Tradeshow they attend.” This is a highly useful, condensed
volume with hundreds of ideas. According to Mark Smith, one of the
authors, “This book was written to give small businesses the edge
when selling at Tradeshows. For less than the cost of a meal at your
next show, you’ll have all the secrets you need to turn your exhibit
into a buyer magnet.” The book covers pre-show contacts through
post-show follow-up and everything you need to know in between.
Show and Sell: 133 Business-Building Ways to Promote Your
Trade Show Exhibit - Improve your Tradeshow presence and
success with these tips. Like other promotional arenas, competition
is growing for customers and market share. Learn how to choose
the right Tradeshows for you, how to pinpoint your target audience,
how to write an effective ad for the show directory, how to time the
follow-up material so your prospects will read it, how to track your
promotional items to see which ones work, what to do and say with
prospects when they are in your booth, and much more! The book
also includes worksheets and checklists.

Recommended Websites

www.expobase.com/exbweb/abouteb.htm- The website for the


Publishers of the Exhibition Bulletin a comprehensive monthly
guide of the trade fair world. Published since 1948, the Bulletin lists
exhibitions and contacts for more information. It provides
“accessible and accurate information for those in marketing and
sales” so they can plan, and know when and where events take
place.

www.expoguide.com - Search for Tradeshows, Expos, and


Conventions alphabetically, or by date, or by location

www.gesexpo.com - GES is “the leading Tradeshow and Event


Marketing company in North America.” The company stages some
of the most recognized tradeshows in America, assists other
companies in producing tradeshows and expos, and helps
individuals with the design and execution of displays. TradeshowU
provides 2-3 trainings a month around the country providing all the
information you need to mount a successful Expo or Tradeshow.

www.isquare.com - Locate Tradeshows for dozens of industries.


Find a show near you or in any other city. Your search can be time
specific by month.

www.tradeshowadvisor.com - At this site find assistance in


planning and executing a successful Tradeshow exhibit,
including the design and manufacture of your modular
exhibit; and arrangements for show services such as
promotion, advertising, transportation and labor
assistance. The website also offers FREE advice on
exhibiting.

www.tscentral.com - Search over 50,000 shows by city and


additionally in 16 key industries. Also, you can register online to
attend or exhibit.

www.tsnn.com - Find Tradeshows, exhibitors, and suppliers, then


link to the supplier network for what you need for your display.
TSNN helps you find trade shows and events by name, industry, city
and date. Tradeshow News Network offers travel and destination
information, industry news and jobs, and more.
www.tsnn.com/exhtips.htm - This is the Trade Show News
Network’s mini-book of 14 valuable FREE tips you can read or
download. The articles were complied by the Trade Show Exhibitors
Association whose mission is to provide “knowledge to marketing
and management professionals who utilize the Tradeshow medium
to promote and sell their products.” If you have never exhibited
before, or if you want to streamline your operations for future shows,
study these articles for useful information from the pros.

Expos, Tradeshows, and Conventions offer highly intense and very


extensive marketing experiences for product and service providers.
Though preparation can take months, the actual show is usually less
than a full week and often just a long weekend. In most instances,
the public is invited and encouraged to come and view new
products, buy products and services, attend seminar and lectures,
and meet businesses like yours.

You display and sell your products side by side with others in your
industry, including your competitors. Thousands of people can
crowd into an Exposition Hall, presenting you with a tremendous
opportunity to gain exposure, sell products, and generate leads for
future sales.

Tradeshows originated as means for different segments of an


industry to gather together and share information. Inviting the public
to view a showcase of products proved highly lucrative to industry
members. Today, Tradeshows are how industries present
themselves to the public.

Expositions, Tradeshows, and Conventions are a growing industry


with more than 10,000 shows every year in the United States alone.
Conventions are often internal sub-industry gatherings, but usually
include several days for the public to come and participate in
seminars and view displays. Expos are generally theme-oriented
events organized for the public, and often include a number of
related industries.

Be prepared for a whirlwind of activities packed into a few, long


days. Product and service providers, like yourself, set-up very
elaborate booths to sell directly to the public; new products are
displayed for the first time; industry suppliers offer specials; and
displays, panels, forums, seminars, and speakers offer information
on a wide range of industry-specific subjects for both exhibitors and
the public.

If you have a new product to showcase, prepare a press release


and press kit, (see Chapter P-Publicity) because the press is always
at these events looking for stories. Coordinate any special activity,
display, or demonstration with the show manager, the company that
is sponsoring the event. You may get on the program that way.
Coordinating with the show manager insures your demonstration
does not conflict with another scheduled activity. The idea is to have
the press at your booth gathering a crowd and creating excitement,
not competing with someone else for the attention of the public.

Expos, Tradeshows, and Conventions offer you the opportunity to


meet directly with suppliers in your industry who have offices in a
different part of the country. Before the show begins, arrange
appointments with reps in the evening hours. A lot of the business
transacted at Expos and Tradeshows takes place in nearby
restaurants and bars into the late evening hours. You can also meet
other individuals and groups that are instrumental in your field. Be
prepared to meet your competition, as well.
In summary, Expos, Tradeshows, and Conventions provide you with
the opportunity to generate publicity, make sales, create leads, meet
suppliers, and network with those in your industry, all at the one
time, in one place.

If you have never attended a major Expo or Tradeshow, or even if


you have, consider participating in at least one as an attendee, or
visitor, before becoming an exhibitor. Attend the lectures and
forums with the idea of offering your expertise as a presenter or
panel member in the future. Once you become an exhibitor, you
won’t have the free or leisure time to make such explorations.

Expo and Tradeshow exhibiting is an art that improves with time,


experience, and observation of the performances of others. Set a
goal of selling so many units, and developing a certain number of
leads. Selling product at the show is immensely gratifying, but the
real benefit of Expos and Tradeshows comes after the show when
you take the leads you generate in those few, long days and
develop them into lifetime customers.

Walk the Hall with a large pad of paper, a camera, and a tape
recorder. Take notes on anything and everything that interests you
or catches your attention. Interview exhibitors whose booths you
find particularly attractive. The most polished displays are more than
likely operated by people who have been exhibiting for some time.
You will observe that most exhibitors are continuously busy. Write
down specific questions, and ask if you can record their answers.
Early mornings, before the crowds descend, are the best time to
seek an interview.

Written goals help you to understand and evaluate this technique as


a method of marketing your product. You and your staff will be
expending a great deal of time and resources preparing and
executing the display. Recorded expectations provide you with
criteria for measuring your success after the show ends. Compare
your results with your ambitions. See how many of the “leads”
become customers.

Observation is one path to success when marketing at Expos and


Tradeshows. From your observations and the information you
gather, develop your own criteria for booth design. Take pictures of
booths that impress you for any number of reasons: the color
scheme; the use of space or extra equipment like chairs, sofas,
pillows, tables; the way the products are displayed; the use of signs;
or any other aspect of the booth layout.

It is not entirely necessary that you attend a show in your own field
for these explorations, but seeing displays of related products and
services provides very useful information. You will notice that
booths that are easy and logical to enter and navigate are the most
satisfying to you as an attendee. When it comes time to design your
own booth, weigh the relative importance of every item you want
inside and around your booth.

The comfort and ease with which visitors experience your booth or
display is pivotal to your success. Unless they are comfortable,
intrigued, and interested, potential customers will not linger at your
venue. There is so much for them to see and do, they will simply
move on to view another display.
You will also notice that the booths with prominent and inviting signs
attract many visitors. The ideal display is both informational and
pleasing. Most attendees at an Expo or Tradeshow do not stop at
every booth. Ask yourself what makes you stop at one booth, but
not at another. As you design and execute yours, give attendees a
reason to stop! They will stop if a sign or something else draws their
attention. Warm, rich, colors in your booth or on your signs; an
unusual or highly attractive product display; or some kind of activity
usually is reason for people to pause and look.

These events offer more than just another venue for you to sell your
products. They are your most direct, face-to-face, medium for
selling a significant inventory of your product or service. Unlike a
retail environment, where you are alone in your own store, you are
literally packed into a large Exhibition Hall with hundreds of other
merchants, separated only by a curtain or waist-high railing. At times
the Hall virtually vibrates from the energy and excitement.

Your booth area is a complete mini-store. Exhibitors have different


objectives for going to Tradeshows. Some are there to showcase
their products in the most attractive and interesting manner. Others
display with the goal of generating tremendous sales and leads. Still
others go to shows to make connections and network with people in
the industry, seminar and forum speakers, and attendees. Whatever
goals you have, there will be hundreds to thousands of potential
customers passing your booth each day.

Interest as many of the casual passers-by as you can to enter your


portals and purchase your products or service. If they don’t seem
inclined to buy, encourage them to leave their contact information.
The Expo and Tradeshow environment rivals the best retail
shopping days of the Holidays in major malls. Create a memorable
experience that encourages prospective buyers to leave their
personal information and/or return to your booth again. Make it
easy for them to give you their information. Make it fun. Have a
drawing for products or gifts. All you need is a way to contact them
in the future, and they become potential customers.

Making contacts and networking is another important reason to


attend Expos and Tradeshows. You meet other product purveyors,
and many suppliers. You are likely to have a deeper understanding
of your industry and your product after attending a Tradeshow. So
much information is exchanged when an entire industry converges
in one place for a weekend. You will get ideas for manufacturing;
advertising, promotion, and marketing; and the packing and shipping
of your products.

As a serious businessperson, and one who is dedicated to providing


the best for your customers, consider attending at least one show a
year. After attending a few, become an exhibitor.
The experience is definitely intense: long days, people around you
all the time, and lots and lots of noise. The financial rewards are
substantial enough that some inventors, distributors and trades
people sell on the “tradeshow circuit” exclusively as their only
means of marketing their products. Making the circuit with just one
major show as it travels to different cities around the country can be
very lucrative with the right product or product line.

As you narrow your choices on shows with which to exhibit, ask the
“show manager” how many other exhibitors will be displaying. It is
best to know the purpose and anticipated attendance of an Expo or
Tradeshow rather than guessing yourself.
We attended an industry Tradeshow where one segment of an
industry was displaying to the rest of that industry. A few selected
tradespeople paid a fortune to display at this show. Unfortunately,
the exhibitors were allocated the farthest aisle in the Hall. Few of
the attendees were aware of their presence, and no one was paying
any attention to them or buying products.

The attendees’ purpose in coming to this particular Tradeshow was


to meet each other and other industry representatives. The public
was not even invited. The product displays contributed an ambiance
to the Exhibition Hall and benefited the show manager. However,
without the public and with attendees who were present for industry
purposes only, the exhibitors were ignored.

The lesson, of course, is to do your homework before you deposit


money and commit to exhibiting at any Exposition, Tradeshow, or
Convention. Ask the show manager what advance publicity and
advertising they have planned to attract the public. These are
legitimate questions for you to ask.

A portion of your exhibitor’s fee should be allocated for advertising


the show. If you don’t ask, you could discover too late that the show
managers have no plan for publicity. The entry fee may be low for
that show, but the likelihood of making sales or collecting leads is
marginal.

Only you can decide if your product is right for the Expo,
Tradeshow, and Convention market. Not every product and service
is. You can research the viability of exhibiting by asking show
managers if other products or services similar to yours are
displaying. Ask them to share contact information with you about
other exhibitors.

When you reach an exhibitor, ask him/her if they have exhibited at


that show in the past, and what their experience was like. See if they
will volunteer their other favorite Tradeshows. Generally, people are
friendly and will talk to you, but you must be willing to inquire. You
can also call your trade association and ask them what they know of
the shows you are investigating, and whether any other members
have ever exhibited at them.

Introducing a novel or unique product at a tradeshow can create a


lot of publicity for you, generate substantial show sales, and give
you the opportunity to harvest “a ton” of leads. The public attends
shows to see new merchandise, so you will be a top attraction if you
introduce a new product. If you have a consumable consumer
product people will use and then reorder, you are likely to have
great success.

Don’t spend a lot initially on your entrance fees alone. You be the
judge whether a particular show is charging more for booths than
you are willing to pay. You will find that planning and executing a
successful display is a big job that takes time and costs a lot of
money in addition to the entrance fee.

If you should exhibit at a show that is financially successful for you,


stay with that show! Return to that same locale with that same show
later in the year, or even a year later. Go to other cities with the
show, if traveling is financially feasible. Keep contact with customers
and leads by sending postcards telling them when you will be in
town next.
You will need to reserve one of the show’s large display areas if you
plan to demonstrate your product, or if attendees will be
experiencing the product in any way. End aisles are often reserved
for demonstration booths. If you are uncertain whether your product
lends itself to demonstration, take some time to imagine and
visualize how you might create a special event. There are no rules,
so be creative and imaginative. Booths that have activity get more
traffic. An almost indisputable law of human nature is that wherever
a group gathers, more will congregate. It is to your benefit to always
have a crowd around your booth.

If your product benefits from explanation, or is interactive in any


way, Expos, Tradeshows, and Conventions provide a tremendous
medium for you. You cannot afford to miss the opportunity to
demonstrate your product live, in front of a constantly changing
audience of potential customers. If you or a member of your staff
has a flair for the dramatic, you can have an audience all day and all
night long at these events, and be seen by thousands.

Products that need to be experienced to be appreciated are at a


disadvantage in most advertising medium. Expos and Tradeshows
are your platform, a golden opportunity to unveil and showcase the
uniqueness of your product. There are thousands of shows a year in
cities across North American that offer you hundreds of
opportunities a month to demonstrate your product to the buying
public.

Consider starting with a show located in a town near you. When you
are just getting started in business, it is a good idea to get to know
the people in your community and the surrounding area. You will
make some great local business contacts when you exhibit at
Expositions and Tradeshows in your own area. If you have an
established business, attending a local show is just as important to
you as it is to someone just getting started in business. The contacts
you make will be all the more meaningful.

For first time exhibitors, being near home has several advantages.
You can replace inventory easily, whether you need to restock your
supply of products or information. You can include staff part of the
time without having to pay for travel or lodging. You will save
expenses related to your own travel, food, and lodging. These
expenses can often cost more than your booth. Use the money you
save to mount an even more spectacular display!

There are a number of sites on the Internet with search engines for
finding Expositions and Tradeshows by location or by industry.
Check the Recommended Websites at the beginning of this chapter
for several very easy and useful ones. Make sure that the show or
shows you choose are appropriate for your product or service. It
won’t help to be near home in a totally unrelated industry.

Another way to find shows related to your field is to contact industry


trade associations. Your product may span several industries. If so,
you have more opportunities for displaying and making contacts.
Subscribe to all related industry trade journals for up-to-date news
and developments in your field, and get advance notice of
Tradeshows.
Unless the show is sponsored by your industry, do some
investigations before you sign up to exhibit. In particular, you want to
make sure that the attendees fit your customer profile. Ask the show
manager about a demographic profile of attendees from previous
years. If the show is near home, inquire from your local customers if
they have ever attended the show.

Treat Expos and Tradeshows in the same manner as other


advertising mediums. You must target your audience. Unless
attendees fall within the population for which your product has
appeal, you are wasting your time and money attempting the
impossible. Your product or service has an appeal for some group.
Make sure that your marketing efforts are targeted to reach them.

Expos and Tradeshows offer exhibitors a variety of display space at


escalating prices. You will pay more for a big space like a corner
aisle, or highly desirable space such near the front of the hall. If you
plan an active demonstration, be sure that you purchase adequate
space. The show managers will help you, but they want to sell the
most expensive venues, so you use your own judgment.

Providing give-away or promotional items such as key chains, water


bottles, magnets, pens, or calendars is a generous gesture.
Unfortunately, offering gifts does not guarantee people will stay long
enough to learn about or buy your product or service. In addition to
your free gifts, consider more subtle ways of drawing people into
your booth, like soothing or inspiring music, a pleasant aroma, or a
food snack that might encourage people to linger a bit longer.

If you feel music, aromas, or food snacks are inappropriate for your
booth, concentrate on the design of an eye-catching sign. Use
bright, but compatible, contrasting colors. Make your signs easy to
read from a distance. If you are uncertain about which colors work
the best together in the color spectrum, consult your printer. Be sure
to highlight the benefits of your product in signs you post, and in
your handout literature.

As expensive as Expo and Tradeshow spaces can be, creating a


small area for attendees to sit down and rest will guarantee you’ll
have people in your booth area. If you plan demonstrations, having
an area for people to sit is highly desirable.

Develop a simple but colorful and informative one-page flyer that


visitors to your booth can take with them. Make sure that everyone
leaves your booth with a good solid reminder of your product. Do
not use your most expensive literature. People will not appreciate a
4-color, multi-fold glossy, and a portion is likely to end up on the
exposition floor. Send your more expensive literature to “leads” after
the show when you can include a friendly cover letter.

You can bring some of your high quality literature with you for
people with whom you have a conversation and want to maintain
contact. The point is that your high quality literature is expensive
and you can’t afford to have thousands of copies go to waste. You
want a simple one-page flyer with a picture of the product to jog the
attendee’s memory. Make the bottom 1/3rd or backside a cut off,
mail-in, order form for your products.

It is extremely important to keep your information and flyers highly


visible, neat, and orderly at all times. If you have an idle moment,
hand flyers to people walking by, and invite them into your booth.
It is best to have one or more companions with you so you can take
breaks and walk the show. These days are too long to be working
alone. In addition, the noise of the crowd is deafening, and you can
have periods of intense activity at your booth. When you do get
break, walk the Hall. Attempt to cover the whole area several times
during the days you are exhibiting.

You will be amazed how many ideas you will get from other
displays. Bring plenty of literature, order forms, and product samples
from your booth when you walk the floor. Meet other exhibitors,
collect their business cards, and hand them your literature. You
never know what contacts will develop from extending yourself to
others, even those who would seem to be competitors.

If you are providing a demonstration of any kind, make sure that


after every demonstration, all viewers have literature before they
leave your booth. Never expect a return visit from anyone,
especially if the show is big. The best idea is to get sales right then.
Be sure to ask for the sale right then! If you don’t ask, they probably
won’t buy.

Make it easy for your customers to purchase on impulse. A good


sales technique is to offer a special that is good only for that
moment. If your product sells for $29.95 you can consider offering a
second product for $24.95, or less, if you have the profit margins.
Sales volume makes you money but make sure that you don’t lose
by giving up too much of your profits. You can also give a sample of
a companion product, a discount, a gift certificate, or a coupon for
future purchases.

Put the music on and sell! With two or more people from your
company in the booth, one person can handle the sales
transactions, while the other person answers questions, hands out
literature to everyone, and generally maintains the theater
atmosphere. Most people are unaware of the fact that they hang
around as long as there is an appearance of activity. Keep the
show going!

You want to come home from a Expo or Tradeshow with hundreds


to thousands of leads. If possible, incorporate into your
demonstration a product give-way drawing. Get business cards or
have them fill out small cards you provide. Collect as many names,
addresses and phone numbers as you can. A daily drawing, or
Grand Prize give-away, if you have an expensive item, is worth the
price of a fishbowl of leads your staff can work for weeks after the
show.

Continue the offer of a price reduction for the second purchase of an


equally priced product after the show. Offer this reduced price for a
limited time, if the customer buys now. In the Direct Selling Industry,
analysts and specialists refer to this sales method as “upselling.”
You can make offers of a reduced second product in catalogs,
newspapers, magazines, on radio and on TV. Make the offer in
Direct Mail by setting a deadline to place the order. Remember,
people like bargains. Figure out what you can realistically afford,
and offer a 2-for-1 special as often as you can.

Be sure to prepare a checklist of everything you can imagine


needing for exhibiting at the show. Begin your list weeks before. If
you are having signs made, get them designed and made well in
advance, in case there are changes that need to be made. If you are
using fabric to cover tables or counters or for hangings, make sure
everything is hemmed ahead of time.
Make lists and plan. Don’t forget: tape of several varieties, push
pins, twine and rope, pens and pencils, a cash box with your
merchant account paraphernalia, and a big fish bowl for your daily
drawing. Begin your list on a clipboard and keep it handy. Jot down
ideas of items to bring whenever something comes to mind.
Depending on your situation, you may want to include the following,
and allocate responsibility for these items to staff that will be
attending with you:
1. Budget
2. Booth design and materials
3. Items for the booth, including: products and
samples, display containers, extension cords, lights,
signs, tables, chairs, pillows, benches, misc. decorations

4. Banners
5. Container for business leads
6. Catalog and flyer holders
7. Catalogs and flyers
8. Lead and Order forms
9. Promo gifts
10. Press Kits
11. Attractive name badges for staff
12. Admission badges from show manager
13. Staff housing, food, and transportation arrangements
14. Staff work assignments
15. Computer for generating orders, database entries etc.

There are thousands of Expos, Tradeshows, and Conventions every


year. Cities like Orlando, San Francisco, Las Vegas, New York, and
Honolulu, host more Tradeshows than other cities, for obvious
reasons. In fact, there are often dozens of Expos and Conventions
a week in each of these cities alone. Finding the shows that are
right for you depends on your budget. Test locally, then branch out.

Take the time to plan how you want to present your company and
your product. You don’t need to rush into the Expo and Tradeshow
circuit, but start the process now, especially if you believe you have
the right product for this market. Make sure your audience comes to
the Expos and Tradeshows where you plan to display. Start slowly,
set goals, and evaluate your experience realistically. The
opportunity for finding customers and opening markets for your
products is tremendous!

INTRODUCTION A B C D E F G H I J K L M N O P Q R S T U V W X Y Z LINKS
a
mm FUNDING & FINANCING YOUR BUSINESS

F
Recommended Books

Financing Start-Ups: How to Raise Money for Emerging


Companies by Robert Brown, Alan S. Gutterman - (Also see 2000
Financing Business Start-Ups: How to Raise Money for
Emerging Companies by Robert Brown.) Financing Start-Ups,
offers guidelines for all aspects of the fundraising process. Brown
has spent 25 years guiding companies to success. The book
contains clear and concise descriptions, appendices with a sample
business plan, due diligence requests and documents, lists of
venture capital and bank funding sources, forms and checklists, and
a CD so you can personalize the forms.

Financing Your Business (Run Your Own Business) by Iris


Lorenz-Fife - This book is one in a series called, Run Your Own
Business, according to the author this book “gives all the
information you need to plan, apply for, acquire, and manage the
financing of your business, guide you in evaluating the profit
potential of your enterprise, and figure your ability to carry debt.”

Finding Money: The Small Business Guide to Financing (Wiley


Small Business Editions) by Kate Lister, Tom Harnish
(Contributor) – Find “solutions to small business financing” with
detailed information on 17 different financing sources and how to
access them.

Guerilla Financing: Alternative Techniques to Finance Any


Small Business by Bruce Bleckman, Jay Conrad Levinson, Jay
Conrad Levinson (Contributor)- Although published in 1992, several
years before the boom on the World Wide Web, much of the
information in this book is useful and applicable today. Non-
traditional methods for finding funding sources for any small
business are presented with insight and innovative techniques. In
particular, the information is useful if your requirement is less than
$250,000. The book explains both the terminology and the venture
capital process in an easy and understandable manner.

Small Business Financing: How and Where To Get It by Alice


H. Magos - “Each source of public and private debt and equity
capital is thoroughly, but simply, discussed – from bootstrapping and
IPO’s, to commercial loans and SBA-guaranteed programs – and
everything in between.”

Venture Capital Handbook by David J. Gladstone – This book was


published prior to the Internet explosion, so there are no references
to the information or resources available on the Internet. Even so, it
provides a solid foundation for understanding the Venture Capital
process, and is an excellent guide to writing a business plan that
works. The author presents all the information you need to go after
Venture Capital: what investors expect of company owners,
formulas for profit participation, and exit strategies.

Where to Go When the Banks Say No: Alternatives For


Financing Your Business by David R. Evanson- There are
funding alternatives when your bank refuses to loan you money. The
first section of the book is devoted to The Sources of Equity Capital,
including: Capital from Angels, Initial Public Offerings or IPOs,
Venture Capital, and a special chapter on eight unconventional
ways to fund a business called, Creative Financing Sources. The
second section prepares you for Securing Investor Support,
including Valuing Your Business, Presenting Your Financials, and
Preparing Your Business Plan.

Recommended Websites

https://ace-net.sr.unh.edu - The Angel Capital Electronic Network


is a new program sponsored by the SBA. Click on the
“Entrepreneurs” tab on the top of the homepage. AceNet helps you
find funding that requires more than debt financing but is too small
for Venture Capital. The range is $250,000 to $5 million.

www.businessfinance.com - Access a FREE capital search


engine. Follow the easy steps to find potential matches for funding
needs including, commercial financing, Venture Capital, equipment
leasing, investment funds, government funds, and real estate
finance. This is the website for America’s Funding Directory. They
offer an Expert Center where you can download their Successful
Funding Workbook, get experienced, retired, executive counseling,
learn how to raise investment capital, get high tech help and other
information at the Business Information Centers. They will assist
you in getting loans through SBA Certified and other friendly banks.

www.thecapitalnetwork.com - The Capital Network (TCN) offers


an introductory service for investors and entrepreneurs based on
their mutual interests, funding a variety of diversified businesses.
The country’s largest capital network funds from $50,000 to
$10,000,000 and has helped businesses raise over $200 million
since 1992.
www.datamerge.com/financingnews/financinginsights .html -
Look for the page for the “Small Business Financing Insights
Articles.” Go to the homepage to find financing information, be sure
to check the links for other Web resources.

www.financehub.com - Finance Hub is the original Venture


Capital Center on the Web, since January of 1995. List your
venture in their database for a nominal fee, visit over 50 Venture
capital firms, and read articles on how to get Venture Capital. One of
the original sites on the Internet, and it is still outstanding.

www.garage.com - Garage.com “helps entrepreneurs and


investors build great businesses.” Entrepreneurs receive mentoring
and expert advice, access to a high-quality investor network,
research and reference materials, and topical forums for both
launching and growing a start-up. Garage.com offers an attractive
and quality program for investors, as well. Additionally, the
Newsroom offers stories, opinions, and articles of interest to both
investors and entrepreneurs.

www.inc.com/articles/details/0,6378,ART869_CNT53,00.html - If
you can’t access this article at the URL above, locate it through the
mother site, www.inc.com. This 12-page article by Jill Andresky
Fraser is entitled, “A Hitchhiker’s Guide to Capital Resources,” and
was originally published in Inc. Magazine, Feb 1, 1998. Ms. Frazer
discusses various means of obtaining capital and offers some
tremendous resources along the way.

www.loanwise.com - Loan Wise is “business financing made


easy.” Comparison shop, apply, and secure term loans, lines of
credit, equipment leases, and more from many of the nation's best-
known financial institutions. Borrowers submit just one short
application, to a variety of lenders, free of charge, and receive those
lenders' decisions on the screen instantly.

www.quickyes.com - Quick Yes is a free online application for


financing that is sent “through our nationwide network to
participating banks and independent financing companies. The
Quickyes Matching Engine ensures that the application goes to
lenders most likely to approve it.”

Funding or financing a new small business is the topic of as many


books and articles as any subject related to business. This one
topic, more than any other, ultimately defines the success or failure
of a new business enterprise. You are probably aware of the statistic
that most new businesses fail, or fail to thrive sufficiently to meet the
business owner’s expectations.

The inability of a new business to generate significant positive cash


flow does not constitute failure. It does not signify that management
is lacking, or that the product or service is unworthy. Any
professional business advisor will tell you that what most new small
businesses need is time, sometimes several years, to create
significant profits or a consistent, positive cash flow.

As a new business owner your ability and willingness to tough it out


in the beginning, facing problems head-on and jumping through
hurdles when necessary, is very likely to yield to smoother sailing
later on. Whatever you do, don’t quit! Hang tough. Give a solid and
sincere effort everyday to streamline your production, find your
markets, and create sales and success in your business.

There is no one formula or series of formulas to follow for obtaining


financing for your small business or enterprise. Certain
characteristics of your business may appear to fit one particular
profile, but it is very important that you remain realistic and open to
all potential financing and funding opportunities. Flexibility is
important in meeting potential investors.

Your first responsibility in finding funding is to create the best


possible Business Plan. (See Chapter G- Getting Started.) You may
need to make some additions and adjustments to present your
company’s information in the best format to investors. In particular
your Business Plan needs to emphasize your company’s strong
points, and at the same time, explain some of the weaker traits.

Although the purpose of this manual is to offer a comprehensive


view of marketing opportunities in one volume, your ability to obtain
financing plays a crucial and pivotal role in your overall success. As
a new small business owner or as a business owner exploring new
avenues to the marketplace, you have enormous options for
financing your business.

This chapter is a short guide, or overview, of a number of those


funding alternatives. Obviously, adequate financing is a necessary
pre-requisite to initiating and executing a successful marketing
campaign. For more in-depth information on the kinds and
opportunities for financing and funding your small business, refer to
the recommended resources at the beginning of this chapter, check
your public library, browse bookstores, and surf the Internet. Also
see, Chapter J-Joint Ventures and Venture Capital and Chapter U-
U.S. Government Resources for more information, contacts, and
resources on these funding opportunities.
If you are just beginning, in the start-up phase of your business
development, your business requires initial capital funds for several
one time, fixed expenses. If you have been operating for a year or
more, you have passed through this phase and your basic operating
expenses are more than likely stabilized within a fairly narrow range
of known monthly expenses. The following is a list of some of the
basic expenditures you need to budget to begin operations. Some of
these expenses are one-time purchases. Others will be on-going
monthly costs.

1. Rent deposits and first month rent


2. Office equipment and supplies: desks, supplies, paper,
phones, file cabinets, computers, fax machine, copiers
3. Other office furniture and fixtures
4. Product and/or supply inventory
5. Rent deposits and first month rent on warehouse or additional
storage space
6. Rent deposits on manufacturing equipment and space, if
needed
7. Vehicles, if needed, leased or purchased
8. Insurance premiums
9. Other special items your business many require

Prepare a budget so you understand both how much money you


minimally need to get started, and where you plan to allocate those
funds. Look at this staggering sum, and ask yourself if you
personally have the resources to manage an investment of this
amount of capital in your business.

Personal Financing is the first source of potential funding for your


new enterprise. In addition to investing your life savings, anticipate
working very long hours to get your project underway. Have a very
clear understanding of your personal financial needs and the needs
of your family. Design a monthly budget for your family expenses so
you can meet your personal needs. If you plan to hire help, whether
in the office or in manufacturing, budget payroll expenses for a
number of months, as well.

Insider Financing, or Friends, Family and Associates is your


next logical source of funding to supplement your own financing
abilities. If your personal resources are insufficient to start
operations, maintain them for 6-9 months, and maintain the
standard of living for your family, seek assistance from those who
know you. You can be very creative with friends and family for loans
or credit. Negotiate whatever terms you can to maximize your
freedom.

Approach friends and family with the passion that you feel for your
product or service. Seek a low or no interest, long-term loan to
assist you in getting started. These financing agreements are
important opportunities for family and friends to support your efforts.
Using funds they can collectively amass is almost universally more
satisfactory than borrowing funds from any outside source.

You have a minimal to non-existent monthly obligation to the debt


when you borrow from friends and family. Your monthly cash flow is
actually increased because you are not servicing a debt. You can
allocate funds that would pay the debt to other needed areas,
including marketing. Additionally, if your cash situation fails to
develop as rapidly as you anticipated, often you can re-negotiate
indebtedness easily with friends and family.

Conventional loan balloon payments come due, regardless of


whether you are in a position to pay them. Having to find the funds
to make a sizable payment at the wrong point in your company’s
development, can be disastrous. You can see how seeking
assistance with business funding from “insider sources” can assist
you in starting your business in several meaningful ways.

If you can accomplish your start-up expenses with what you have
saved and what you can obtain from family and friends, you will
have many opportunities later for more long-term financing to
expand your operations. If you need more cash to get the operation
underway, you have several options.

Borrow Against Your Credit Cards by requesting a courtesy


check from the bank that issues you the card. Virtually every bank
that issues credit cards will send you several checks with your
account number imprinted on them, if you request them. Write a
check to yourself to cover the expenses you need, and deposit this
credit card check in your business checking account. With several
checks available, withdraw only the amount of money that you
absolutely need. If you find you need more money, then withdraw a
second or third time.

Your credit card or cards each have a credit limit up to which you
can withdraw cash. You can also withdraw cash from ATMs for most
credit cards. Another alternative for withdrawing funds from your
credit card is to take the card to your bank and ask to withdraw cash
against your available credit line. Your bank will call the bank that
provided you the card to verify the cash limit available.

Accessing cash for your business through ATMs is not advisable.


Withdrawing a lot of cash in $20 bills can be time-consuming and
risky. Also many ATMs impose a limit on the amount of money you
can withdraw, and you may desire more. Different banks provide
different services. In particular, banks tend to service customers
differently. A bank manager has tremendous latitude in what
services he/she will provide for a customer. If you have an
outstanding personal relationship with your bank manager, ask
him/her, in advance, if the bank would be able to provide you with a
cash withdrawal from your credit card.
If you think that you might want the option of accessing cash for
your business through a personal credit card, the most reliable, and
the safest means is to get the courtesy checks from the credit card
company. You will not get the canceled check back from the credit
card bank, but you can copy the check. You have a record of
precisely how much you “borrowed” from yourself, and you can
deposit the money as cash at any point. These checks are generally
free, and you can request them simply by calling the customer
service number for your credit card.

Remember that most credit cards charge the highest consumer


interest rates allowable by law. Credit cards are not for borrowing
long-term money. Know how you are going to repay the money
before you withdraw any funds from a credit card. View this money
as a 30-day loan. If you stay within the monthly payment window,
you will manage the situation very well. Otherwise, you can get into
serious debt, and create problems that will plague you and your
business. Good credit is valuable! Be very careful and prudent.

A Conventional Bank Loan may be easy to secure, especially if


you have a good relationship with your bank. The loan process can
take time, but the convenience of having a loan with your local bank
cannot be denied. Be sure that you have the means to make the
monthly loan payments before you commit yourself to the
indebtedness.

Online Conventional Loan Programs give you the opportunity to


submit an application to a large number of lenders at one time.
Once you qualify, you may find you have some leverage to
negotiate the terms with a number of different lenders. There are
several websites that specialize in helping small businesses find
loans, and the entire loan application process is managed online.
See the Recommended Websites in this chapter for the addresses
of those websites.

Small Business Administration (SBA) Loan Guarantees are


available if you can’t get conventional financing. The SBA does not
loan funds. It guarantees them, up $750,000 for as long as 25 years.
The SBA Low Doc Loan is convenient, but if you go this route,
make sure you know and understand the various loan vehicles the
SBA offers. Chapter U-US Government Resources, has more
information on SBA loans.

The SBA sponsors SCORE (the Service Corps Of Retired


Executives), a national organization of over 12,000 retired business
people who offer free, confidential, one-on-one advice and
counseling to small businesses. For more information on SCORE
and their counseling programs, see Chapter U-US Government
Resources.
A Business Line of Credit is another option, especially if you have
a good relationship with your bank. A Line of Credit is an excellent
vehicle for a small business. You will need collateral like a house or
paid car. You sign documentation for a fixed amount, and receive a
checking account that allows you to withdraw money, to the loan
amount, as you need it. Deposit income from the business or
another source back into the account to lower your monthly
payment. Each month your payment fluctuates, depending on the
amount you have borrowed for that period.

Venture Capital Funding or An Angel Investor may be an option


for seeking either start-up or ongoing funding, depending on the
nature of your business. Angel investors become pseudo partners in
your business. He/she will post funds to your account with a
mutually agreed upon arrangement for repayment, and then function
as an advisor to you. “Angels” are often recently retired business
people with a lot of money and a lot of expertise. The advice and
guidance you receive, not to mention the cash, will be tremendously
valuable.

Venture Capitalists amass large sums of money to purchase


percentages of new companies, usually using other people’s money.
Their financial involvement with you almost universally means an
investment in your company as a loan, and a stock option or stock
purchase, as well. They will take at least one, maybe more positions
on your Board of Directors, and one of their partners will participate
actively in the day-to-day operations of your business.

Venture Capitalists wield a tremendous amount of power when they


enter into a financial agreement with a business. All Venture Capital
investments have a cycle that typically lasts 7-10 years. At the end
of the funding period, they expect to recoup their money and profits
to pay their investors. Usually an exit strategy is outlined in your
agreement. You may take your company public or sell it. Assets
may be liquidated. Whatever monies the Venture Capitalists loaned
will need to be repaid on a pre-determined date.

Sufficient capital is the one element absolutely essential and


fundamental to a successful start-up enterprise. Understanding the
financing requirements of your business is crucial to your survival.
Every business has its own unique financial needs. Production,
personnel, capital equipment, the physical plant, development, and
research are just a few important aspects common to many
businesses.

There are many sources of information and guidance available to


assist you in better understanding what your needs are, and how to
get the money you require. The right combination of information,
expertise, and funding options are there for you. You have clues in
hand. Now set out on your Treasure Hunt!
INTRODUCTION A B C D E F GH I J K L M N O P Q R S T UV W XY Z LINKS
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mm GETTING STARTED - YOUR BUSINESS PLAN

G
Recommended Books

Adams Streetwise Small Business Start-Up: Your


Comprehensive Guide to Starting and Managing a Business
(Adams Streetwise) by Bob Adams – This book is well organized
and useful, with helpful tips and information for the novice thinking
about beginning a business, to the seasoned professional. It is easy
to understand, but thorough, covering a wide range of subjects
including hiring, marketing and sales, accounting, advertising, legal
issues, and more.

The Business Planning Guide: Creating a Plan for Success in


Your Own Business by David H. Bangs – This is the 8th (!) edition
of this book which Forbes named as its favorite and most useful
small business guide! With two complete sample Business Plans, a
sample partnership agreement, checklists, and worksheets, the
reader can analyze revenues and expenses, evaluate cash follow,
forecast revenues, and much more.

Business Plans Made Easy: It’s Not as Hard As You Think! by


Mark Henricks - Business and technology writer for Entrepreneur
Magazine, Mark Henricks developed this easy-to-read,
comprehensive guide to demonstrate the importance of a Business
Plan, and to show how the process doesn’t have to be difficult. This
complete presentation shows you step-by-step how to create and
use Business Plans: for start-up, expansion, attracting valuable
employees, monitoring your business performance, future planning,
or finding partners.

BUSINESS PLANS THAT WORK for Your Small Business by


Susan Jacksack, and the CCH Small Office Editorial Group
(www).toolkit.cch.com – This book “translates complicated
marketing and financial concepts into down-to-earth practical
advice, clearly explains all the essential elements and formulas.”
The book includes five sample Business Plans, giving readers
plenty of information from which to develop their own plans. Learn
how to arrange a plan for your audience, organize and format it,
analyze the industry, your target market, and your competition,
create financial statements, design a marketing and sales plan, and
ways to use your plan as a management tool.

Entrepreneur’s Guide to Preparing a Winning Business Plan &


Raising Venture Capital by Keith W. Schilit, Victor Kiam (Forward)
– This book demonstrates the absolute necessity of have a clear
and concise Business Plan for attracting investors. Learn how to
value your business so you can insure that the investor will get
his/her money back. “The difference between a successful
enterprise and one that never gets off the ground is the Business
Plan presented to investors.”

The Field Guide to Starting A Business by Mark Levine - A


comprehensive guide to starting a business, with ideas on how to
make your dream take shape, to opening your doors, to expanding
your business. Whether you are fresh out of Business School,
working for someone else, or sitting at home with nothing to do,
learn the basics of getting started from this helpful guide.

Guts & Borrowed Money: Straight Talk for Starting & Growing
Your Small Business by Tom S. Gillis – This book offers insight
and wisdom on the problems all businesses encounter, with
specific directions on what it takes to survive, and thrive. Focus on
your goals, avoid the common pitfalls, and do what is necessary to
get your business started. Gillis talks about four stages of business:
idea, survival, growth, and bureaucracy, and offers practical
techniques for managing each stage. Examples of topics covered
are: Advertising, Sales, Audits, Budgets, Employee Management,
Loans, Hiring, Forecasting, Financial Statements, Insurance,
Marketing, and Team Building

The Prentice Hall Encyclopedia of Model Business Plans by


Wilbur Cross and Alice M Richey – Find 62 Business Plans with an
interactive CD to customize a Business Plan to your situation.
Included is a Basic Business Plan, a Plan for Retailers, one for
Small Service Firms, Small Manufacturers, Home-Based
Businesses, Research, Educational, Franchises, Non-Profits,
Importers/Exporters, and the Internet. The chapters contain lists and
checklists to guide you in developing your Plan. In addition, the book
provides resources for small businesses including Business
Schools.

What No One Ever Tells You About Starting Your Own


Business: Real Life Start-Up Advice from 101 Successful
Entrepreneurs by Jan Norman - Learn from the common
business mistakes of 100 Entrepreneurs who became successful
despite the mistakes they made. Learn what to do, what to watch
for, and how to make your business life easier. Learn how to make
organizational, marketing, and financial decisions like an expert.
Sections of the book include: Look Before You Leap, Early
Decisions, The Money Chase, including: “Don’t Give Away Your
Baby,” Management Issues, Helping Hand (s), and Marketing.
Your First Business Plan: A Simple Question and Answer
Format Designed to Help You Write Your Own Plan (3rd edition)
by Joseph Covello and Brian J. Hazelgren – Now in its 3rd edition,
this book takes the mystery out of writing a business plan. Clear and
concise in presentation, it outlines the steps necessary to
formulating and creating a plan, including how to develop the
financial information necessary to meet investor requirements. The
material is organized and easy to follow. Topics include some
Powerful Guidelines; the First Pages; Your General Company
Description; Present Situation; Objectives; Market Analysis;
Marketing and Sales; Management; Financial Projections; Executive
Summary; and more. Also see The Complete Book of Business
Plans: Simple Steps to Writing a Powerful Business Plan (Small
Business Sourcebooks) by the same authors.

Recommended Software

The Prentice Hall Encyclopedia of Model Business Plans,


Prentice Hall Press – interactive CD-rom

BizPlan Builder – from www.digitalwork.com management tools.


This product is widely regarded as the best software available for
creating a business plan. Includes whole sections you can import
into your proposal. Digital Works claims this software has raised
over $100 million in funds in 10 years. Your whole project can be
completed in a matter of hours.

Recommended Websites

There are numerous websites on the Internet with literally thousands


of articles on various aspects of starting a new small business.
Below are just a few sites you can visit. From these you can link to
many more. You will find that much of the information from site to
site is similar. If you find a site you like, be sure to bookmark it until
you have exhausted the information at that site.

Many of browsers and search engines have pages of information on


different subjects, and “Business” or “Small Business” is often one of
them. Be sure to check:
www.altavista.com
www.excite.com
www.go.com
www.infoseek.com
www.lycos.com
www.msn.com
www.yahoo.com

Below are a number of very important websites to visit. Some have


been mentioned before, but they also have extensive information on
Getting Started in Business.
http://home3.americanexpress.com
www.allbusiness .com
www.bizproweb.com
www.bplans.com
www.businessfinance .com
www.inc.com
www.inreach.com/sbdc/book/toc.html
www.isquare.com
www.lookupusa.com
www.lowe.org
www.onlinewbc.org
www.toolkit.cch.com
www.tsbj.com
www.about.com

This manual is organized to provide easily accessible information on


many ways you can market your product or service. There are some
basic steps in organizing your business before beginning any
marketing or advertising. Be methodical and follow the advice of
most business advisors and virtually everyone who has ever started
business. Write a Business Plan!

The major thrust of this chapter presents the importance of creating


The Business Plan, but as effortlessly as possible. If you already
have a Plan that is working for you, check to see that it is up-to-date,
reflecting current sales and production volumes. Be sure to
periodically update your Business Plan to demonstrate current
performance. You need a Business Plan that is a changing and
dynamic product of your business, reflecting the continual and
constant growth of your enterprise.

If you are satisfied with your Business Plan as it is, you might
wonder if you have any use for this chapter. It’s not too late to check
off a few basics that could save you time, money, and a lot of agony
later. There is never a better time than NOW to complete those
tasks that you may have purposefully or inadvertently overlooked as
you began your business enterprise.

A few of those tasks and issues are mentioned here. At the end of
this chapter are some other suggestions that will make your
business run a bit smoother.
If you have been planning to incorporate but keep procrastinating,
now is the time to take care of this matter. Each state has a
department whose responsibility it is to properly incorporate
businesses in that state. These offices are usually connected to the
Secretary of State’s Office for each
state.www.isquare.com/stateoffices.htm is a website that lists all
the state offices of incorporation. Call today and get your information
packet, or go to www.corporate.com. For a modest fee, the folks
at this website will handle the situation for you.

You are not alone in the world of small business enterprises! Small
businesses account for more than half of the gross national product,
according to the SBA, the U.S. Government’s Small Business
Administration. The SBA defines a small business as one that
employs less than 100 people. There are nearly 24 million small
businesses in the U.S. today.

Not surprisingly, small businesses are the fastest growing segment


of the business community, and account for about 95% of the
business population. 9 out of 10 small businesses employ fewer
than 20 people, and fully one half of these are home-based,
employing fewer than five people. Nearly half of the U.S. workforce
is employed by small businesses, according to government
estimates, and a new one starts every 10 seconds.

Numerous books and countless articles have been written about


starting and operating a small business. Look into the websites,
books, and software listed at the beginning of this chapter. These
aids are helpful if only as a reference guide and checklist for getting
going as efficiently as possible.

The authors whose books are listed at the beginning of this chapter
are experts in their field. They have spent years and years
developing their own businesses and advising clients like you, as
well. Take advantage of their expertise. Starting your small business
is as easy as baking a cake, if you are willing to follow a proven
recipe. You can also save yourself from making errors that can
become very costly.

The reasons for starting a business are as varied as the individuals


who make the decision to begin them. Some want to free
themselves from the routine of a job working for someone else.
Some have saved enough cash to start and manage their own
enterprise. In either case, the desire to be your own boss and to
apply knowledge and skills to a new endeavor are often the
motivations for beginning. Some start a new project part time hoping
to produce extra income for their current situation or for retirement.

Whatever the reasons for starting, the unfortunate fact is that the
survival rate of small businesses is dismal. According to the SBA,
the number one reason why small businesses fail is lack of
planning. Inadequate financing is often another reason for failure.
Unfortunately, most small businesses do not make it to their second
year.

Too often several basic mechanisms are ignored or postponed in


the haste to get the product into production, to sell it, and to turn a
positive cash flow. Though marketing and promotion are critical to
the success of any business, tabling preliminary basics inevitably
costs the business owner dearly. Start this journey into the world of
owning and operating your own enterprise with your two feet planted
firmly in front of you and two good, sturdy walking shoes, tied
securely. In other words, be prepared. Plan.

If you have started your business without a written Business Plan


worthy of presenting to a potential investor, consider this:
statistically, those that have a written Business Plan have a much
better chance of succeeding than those that do not. Cover the
fundamentals before you spend any more money on marketing and
promotion.

A written Business Plan serves several important functions. You


may feel confident with the plan in your head or the notes you have
stored randomly about your office. These alternatives to a written
plan may work satisfactorily for you, but the purpose of creating a
written Business Plan is to have a professional presentation ready
for advisors, consultants, industry professionals, and most
importantly, for potential investors. If you ever hope to raise
operating funds from outside the company, look into creating a
Business Plan now.

Another important reason to create a Business Plan is that a written


document forces you to organize your thoughts about your
business, and develop a timeline for your company’s future.
Organizing, developing, and formulating a Business Plan forces you
to examine your business from a number of different angles.

A Business Plan delineates tasks and resources, and correlates the


relationship between various activities and functions that need to
occur for your enterprise to become a successful and smooth-
functioning one. You can visualize, imagine, and dream of the
potential for your business, but creating a Business Plan forces you
to crystallize your hopes into concrete words and ideas, and put
them on paper in black and white.

No two Business Plans look alike, and there is no right way to write
one. The format varies depending on your product or service and
you, the business owner. There are important features to include,
however. Regardless of your format, creating a written Business
Plan forces you to take a critical and structured view of your
business, and to plan and project the future. You will no doubt agree
that these exercises forge a carefully outlined plan of attack, and
should therefore, increase your odds for success.
Begin your Business Plan with an Executive Summary. This is an
overview, or outline of the information you plan to present, and lists
all the subjects you intend to cover. Draft an outline as you create
the other sections, and actually write the Executive Summary last,
after you have completed everything else.

Once the plan is written and compiled, you will want to create a
table of contents. There is no correct format, but often a business
plan will first have a cover page with the name of your company and
pertinent contact data, followed by a Table of Contents, followed by
the Executive Summary, followed by your different sections.

Your product or service is the prime focus of your business plan.


The plan should reflect enthusiasm and excitement for your
product. Describe what it is. Use pictures and visuals so the
investor can see the product. Explain why your product or service is
unique and important. Describe how it is different from the
competition. Maybe you have secured patented technology, or an
innovation in production that reduces the cost, or maybe you have a
new and improved formula.

Whatever it is, your product is unique and you know why. Exclaim
it! At this point you can bring in industry research or newspaper
articles supporting the validity of your passionate position. You can
create a separate section outlining your projected costs and
expenses, and the funds you anticipate needing to reach your sales
goals. Check with your industry’s trade association for information
that will help you estimate these figures, and document them. Trade
journals often have relevant material. You can search the Internet
or ask your local librarian for assistance locating data.

You’re not writing a dissertation. However much you love or believe


in your product, plan for the entire document to be approximately
twenty to thirty pages. You want to present a thorough view, but do
not overwhelm the reader.

Other information you want to include falls in the general category of


Market Analysis. Statistics are very helpful here also. You can a
provide a brief overview of the current state of your market segment
from information you gather at the public library, from the Internet, or
from industry sources. Explain why you believe the market is
growing, shrinking, decreasing, etc. Also explain how your product
fills a need, or fits a niche. You can project the hopes and dreams
you have for your product or service, but document as much as you
can from industry or other substantiated figures.

Be sure to include information, statistics, or demographics of whom


you believe will buy your product or service. This can be a separate
section. Whether your investor is your uncle or an investment
banker from across the country, he/she wants to know you have
customers. One way to project this information is to explain why
your product or service answers potential customer’s needs and
desires. Point out the benefits of your product or service from the
consumer’s viewpoint, citing considerations such as: it is higher
quality (than the competition), it is less expensive, or it solves
problems and is new and innovative.

A final issue with investors involves the experience of the personnel


of your company. Before investors commit money to a small
business enterprise, they want reassurance that management has
the experience to handle every angle of the business. Hopefully,
you and others on your team have sufficient business background to
satisfy this concern. Otherwise, the investors may ask you to retain
a consultant or advisor to assist you.

Be gracious, even grateful, if there is a contingency clause to the


investment offer that you receive the guidance and counseling of a
mentor. Remember, the investment is dependent on your success.
A consultant keeps close watch on all accounts, payables and
receivables, and oversees the expenditure of funds. As much as
you feel capable of providing the direction your company needs,
accept the guidance that is offered. You don’t need to wear every
hat in the joint!

Several chapters in this manual provide more information on


obtaining financing and funding as your business grows. In
particular, review Chapter F- Financing and Funding, and Chapter J -
Joint Ventures and Venture Capital, and Chapter U – US
Government Resources.

The responsibility for a few simple, but critical, tasks is often


mistakenly overlooked in the early days and weeks in the operation
of a small business enterprise. Many larger, more urgent, and
seemingly more significant tasks necessary to getting a business
started take precedence. From the very beginning of your business,
make the decision to manage the following tasks yourself for both
safety and security. These responsibilities can be assigned to
others, but you will agree that taking charge of them yourself is
worth the resulting simple peace of mind.

You organize the computer system, including access routes and


how files are arranged. Know who has access to what information at
all times, and maintain privacy wherever necessary, including email.

Make sure you have adequate locks and alarms throughout the
plant or store or office. If you don’t install them yourself, walk
through your entire location with the manager of a reputable security
firm and get his/her advice on what is needed where. After the
installation, supervise a test run yourself.
Take the time to open the in-coming mail everyday. Scan letters,
categorize, file, and delegate responses to them. Copy every check,
and then pass them to the bookkeeper. Be the first to receive
checks and bills, the first to read correspondence from customers
and buyers, and the first to see offers and industry data. Develop a
system so that you can easily sort the mail everyday quickly and
effortlessly, and hand it over to others for management and
responses.

Make sure you retain the necessary back-up of professionals to


insure your needs are covered. Take the time to interview and retain
a lawyer. You can obtain most business forms and documents you
will need from books you can buy, at the library, or off the Internet.
Always have a lawyer review any document that commits you or
your business. Your local Chamber of Commerce can recommend
several attorneys whom you can interview. Chambers are great
associations. Consider joining one near you. Comprised of local
businesses people, these groups provide opportunities for
professionals to meet each other in a relaxed social atmosphere.

In addition to a retaining a lawyer, and depending on the size of your


business, you may want to hire an accountant/bookkeeper unless
you feel you have the time and capability to manage your own
books. Remember, though, you are at the helm of a brand new ship
and you can only manage so many tasks. Having someone else
perform the bookkeeping functions does not mean you will lose
control of the financial operations. You will have more time for other
tasks that are not as easily delegated if you let someone else keep
the books.

Select a bank and banker that can provide you with the services you
feel you will need. Ask about a business line of credit. Compare the
programs and rates of banks in your area. If your business will be
making deposits on a daily basis, a bank with a branch located near
you is a convenience. Get to know the bank manager. Offer a
sample of your product, if appropriate, or a small gift. Establishing a
good relationship with your banker is very important. He/she can be
instrumental in assisting you with every aspect of your banking
needs.

Consult an insurance agent to establish the coverage for all aspects


of your business. In addition to fire and theft insurance, you want
coverage for liability claims in the event someone accidentally gets
hurt. Workman’s compensation covers your employees on the job,
but people come to a business for a variety of reasons. If someone
falls or is injured in any way, you can be sued. Study health and
retirement benefits for employees. Find an agent by asking an
associate for a referral, through the Chamber of Commerce, or
speak with your personal insurance agent.

In the case of all of these auxiliary people, get comparative quotes


and a comprehensive listing of the services each has to offer. In
particular, make sure that their services can expand with your
anticipated expansion. The process of interviewing each one will
take time, but your time will be well spent if you don’t have to
change representation later.

In theory you have developed an initial start-up budget, you know


where the money to get started is coming from, you have selected a
location, signed a lease, and established the form your company will
take for now (i.e. partnership, corporation, L.L.C., sole
proprietorship). You need to apply for a federal tax I.D. number
regardless of the business form you choose.

Set a starting date, hire the necessary personnel, open your doors,
and go into production. If your Business Plan is written, proofed,
printed, and ready to go, you have hundreds of options open to you
that you would not have if the plan were only in your head.

Write the plan! And, Good Luck!

INTRODUCTION A B C D E F GH I J K L M N O P Q R S T UV W XY Z LINKS
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mm HATCHING YOUR PLAN

H
Recommended Books

101 Simple Things to Grow Your Business by Walters, Dottie


Walters, Colleen Wilder (editor), Lilly Walters - This book contains
simple and easy to implement strategies for expanding and growing
your business. The ideas are both inexpensive and highly useful
ways to enhance your company’s image and get more sales.

The Complete Guide to Running and Growing Your Business


by Andrew J. Sherman - This book covers structuring your
business, employee relations, business contracts, strategies for
raising capital, growth strategies for business, managing business
conflicts, how to handle financial difficulties, marketing and sales
plans, cyberspace, and much more. Find resolutions and solutions
to many business dilemmas in this helpful book.

The Frugal Entrepreneur: Creative Ways to Save Time, Energy,


and Money in Your Business by Terri Lonier - No matter what
your business is, saving money is a bonus. This book presents
hundreds of readily adaptable tips and techniques using creativity to
save time, energy, and money. A few examples include: tips on how
to save money on printing and other promotional costs, how to find
low-cost and even FREE business equipment and supplies, and
how to develop marketing on a “shoestring.”

Keeping the Books: Basic Record keeping and Accounting for


the Small Business, Plus Up-to-Date Tax Information (4th
edition) by Linda Pinson, Jerry Jinnett - A thorough easy-to-use
record keeping system for the small business owner with little
financial background, with forms and sample worksheets, including:
Record Keeping Basics; Understanding Income; Expenses and
Deductions; Cash and Accrual Accounting; Preparing Financial
Statements and Taxes; and more…

Product Leadership: Creating and Launching Superior New


Products by Robert Gravlin Cooper - According to the author, the
best approach to business is to view yourself at war with the
competition. You must be prepared to fight the product
development war, and win. The real value of the book is that it sets
the standards for excellence in product development, including:
learning how to implement and oversee systematic high-quality new
product processes; managing product portfolios; determining which
products to back with company resources; and discovering
techniques to outperform the competition. Mr. Cooper’s message to
owners is be willing to innovate, or you will surely die. What he
requires is discipline to set policies and direction, and a commitment
of resources to support those projects. Read about the Stage-Gate
New Product Process, Seven New Critical Success Factors, What
Separates the Winners from the Losers, and more.

Start-up: An Entrepreneur’s Guide to Launching and Managing


a New Business (5th edition) by William J. Stolze -If you wonder
whether you have what it takes to be a successful entrepreneur, this
book will help you understand the qualities necessary. The author is
a successful entrepreneur who has also counseled hundreds in the
problems associated with starting a business. The book is full of
gems of wisdom. Take them to heart. Mr. Stolze also started a
Venture Capital Group, and offers his phone number to call for
advice.

Recommended Software

Accware is a “fully integrated, Windows based, affordable client-


server business and accounting software which integrates all your
company’s departments includes sales, marketing, purchasing,
inventory control, management, service, shipping, receiving,
accounting and e-commerce.”
www.icode.com

Recommended Websites

www.hooversonline.com - Hoover’s Online: The Business


Network is a site devoted to the busy professional. The core of
Hoover’s is the proprietary company and industry information on
thousands of U.S. businesses. Hoover’s Online has extended these
services to include other topics of business interests, including
money management, career development, news, and business
travel. Hoover’s Career Development Center, accessible from the
Homepage, lists “hundreds of thousands of pay-as-you-go courses
in Business, IT/Computing, and Engineering. The list is staggering.

www.myservice.com - Get Advice Here, for FREE. Get 24-hour


Online Consulting on topics such as: legal, taxes, business,
banking, insurance, computers, and more.
www.onlinewbc.org – The online Women’s Business Center
provides hundreds of articles on numerous subjects from “Learning
About Business, with subcategories of starting, growing, and
expanding and more, to “Running Your Business” with
subcategories of management, finance, marketing, technology, and
more.

www.score.org - SCORE is sponsored by the Small Business


Administration. with more than 12,000 retired business counselors in
nearly 400 regional offices. Initiate the relationship with an email to
a SCORE center near you. A team of counselors may meet with
you, or come to your place of business and meet with you there.
The service is FREE.

www.supplierfinder.com - Buyer-Finder is a free to register


search engine for suppliers in all fields. “Bypass the long selling
cycle…search for exactly what you need in a matter of minutes.” List
your product or service free of charge with a link to your Website.
www.ezines.com/secrets.html- This is an article by Jeannette L.
Rosenberg, entitled: “Secrets to Running A Successful Business.”
Ms. Rosenberg is a business advisor, motivational speaker and TV
producer in Kirkland, OR. She offers a number of useful tips in this
four-page article.

The purpose of this chapter is to present ideas, information, and


resources that will assist you in launching your enterprise
successfully. The resources in this chapter are useful once you have
your Business Plan written and you have “opened shop”. Some of
the books and Internet websites recommended in Chapter G-Getting
Started also contain information that is appropriate to launching or
hatching a new business, so be sure to review those sites as well.

The specific needs of every business differ. Like their owners, no


two businesses are exactly alike. Resources exist that can help you
problem-solve issues. Books and articles delineate stages of
business development and every angle of every aspect of starting,
developing, running, growing, expanding, and selling your business.

Now imagine that today is the official opening of your new


enterprise. You arrive early, before anyone else. Alone in the
freshly, furnished offices, and/or the magnificent state-of-the-art
manufacturing facility, your eyes sweep across the panorama before
you. With an elfish grin, and a long sigh, you murmur to yourself.
“Finally! I’m here. I made it!” You think to yourself, all that we
have to do now is open this shop and make money!”

Don’t we all wish business was that simple. You think the hard work
of getting everything together is finally over. You hope you have a
moment to breathe now that the operation is going. The fact is that
few new small businesses have a relaxed, deliberate opening day.
Day by day we build, we prepare, we do what is necessary to staff
and begin the process of making a business happen. There is no
definitive “starting moment” like the races. The moment you can get
product or services out the door, you do. Business means keep
ahead, keep up, and keep afloat.

Regardless, you have worked hard to prepare for a point in time


when you know you are no longer planning. Your business has
happened. You are in business! Everyone wishes you the best.
There are some basic steps you can take to insure that you are in
the minority that survives the first year.

Business observers and experts from virtually every industry agree


that the single most common reason for business failure is the lack
of adequate planning. Hopefully, you made the effort and took the
time to organize your ideas, projections, hopes, and dreams into a
coherent Business Plan. Hopefully, circulating this plan to a range of
sources procured sufficient financing for your start-up. Starting a
business with insufficient funds is courting certain disaster. It means
you have failed to plan adequately and that you hope you can make
money fast enough to make up shortfalls. A plan that depends on
uncertainty is doomed. If you have had any lingering doubts, take
the time now to review your budgets.

Unfortunately, even the best plans can go awry. The unexpected


can always happen. Imagine this scenario: you underestimate your
growth potential and find more demand for your product than you
can produce. You decide to increase production and make more
product, and arrange for extra staff to assist you. The problem is
your inventory is spent, and you can’t get enough raw materials to
fill orders. In the meantime, a competitor has lowered his price, has
greater production capacity with ample supplies on hand. A dream
situation of massive demand for your product quickly turns to
disaster.

You could have just as easily overestimated the value of your


product, attached too high a price tag, resulting in sluggish demand
and too much inventory. Or, your manufacturing plant might
experience equipment malfunctions, putting you behind production
schedule.

Let’s begin with the conviction that your business is going to be a


fabulous success. Understand that success doesn’t just happen to
those who are lucky. You work, plan, and decide consciously that
you will do what it takes to be successful. Here are a few concepts
that you can integrate into your thinking to propel you to where you
want to go.
Customers Come First. Always. Develop ways to get feedback
from your customers on how they experience and like your product
or service. Find a way for them to express exactly what they want.
Make adjustments and adaptations however you can. When you
give your customers exactly what they want, you will be successful
beyond your imagination. Remember that what you are selling is
more than a product or a service. It is an answer to their needs,
wants, and desires.

Promise a Nickel and Deliver a Dime. A great way to guarantee


customer satisfaction is to promise a lot, but deliver even more.
Strong customer loyalty results when you give consumers more than
what they expect. People buy products for one of three reasons:
they like the price, they appreciate the quality, or they want the
service. Determine which of these three qualities your company
offers the most, and become a standout in your industry and/or your
area.

Always be thinking of ways to improve the quality of your


products, the pricing, and the service of your company.
Encourage your staff to develop new ideas by offering contests and
other incentives. As the saying goes, let the company “Be the best
it can be!” If genuine and sincere, this attitude will carry you a long
way in the appreciative responses of your customers. They will refer
others to you, and come back to buy more.

Attitude Is Everything. So, maintain a positive attitude at all


times. This may seem like a platitude but you are the captain of
your ship. You provide the direction, the tone, the momentum, and
the beat everyone carries. Stay positive. Stay hopeful. Be cheerful.
Be all of those things, and more. Regardless of how you really feel,
maintain an air of certainty and optimism. Without your firm belief,
the foundation around you, from your closest associate to your
newest employee, will falter and crumble away. Remember, as long
as you walk in that door in the morning, you are in business to
provide a great product or a fantastic service

Value Who You Are. As you develop your niche and your company
becomes known for its reputation, move with caution so that you
don’t compromise the company or yourself in any way. Your
reputation is of supreme importance. Be aware of maintaining a
good public image in the community and in your industry. You can
be outspoken, if you chose, but carefully weigh your options before
you make any move that will harm or tarnish your position.

Utilize Your Business Plan. Consult your Plan often to be certain


that you are meeting your projections and aligned with your goals. If
you do nothing, else, do this! It is easy to loose track of the larger
picture when you are dealing with numerous situations on a day-to-
day basis. Your Business Plan is your personal roadmap to
Destination Success. Follow it like a contractor would view the
blueprints to a building. You may come to know it by heart, but still
refer to it and review it from time to time. If you need to make
adjustments, do so, and keep your Plan up-to-date.

Choose Success. Plan for it. Regardless of how you feel about
any situation, change your thinking, and the situation changes.
Let a deliberate, conscious choice to succeed propel you forward.
Begin today, or next week or next month. Write down reasonable,
attainable goals. Then write what steps you need to take to meet
your goals.

Motivational theory is functional and gratifying when you labor


tirelessly and relentlessly to make a dream happen. There are also
some very practical steps you can take at this point to insure
stability in your business.

Be a Good and Fair Manager. This is most likely the most


important and possibly most difficult task before you. You have to
balance being a boss and being friends and a confidant to your
employees. You have to call the shots and make tough decisions
from time to time. As Harry Truman said: “The buck stops here.”

Your employees will respect you if you keep active in your business.
Be there everyday. Take time in each department to hear what is
going on, give suggestions and lend direction. Listen. Listen to your
staff. Listen to your customers. If you have a manufacturing facility,
get out on the line and show your employees that you can and will
participate in every aspect of the business. Take the time to make
calls with the sales reps.

In lean times, be willing to cut your own salary and benefits before
you ask others to take a cut. If the situation gets critical, you must be
willing to make big sacrifices before you can expect others to stand
with you. You may need to rely on savings for your personal needs,
or cut back to bare essentials. Don’t even consider asking staff to do
what you are unable or unwilling to do yourself.

Physical Plant. Consider leasing equipment rather than buying it,


including office equipment. When the cash begins to flow, then buy
equipment from earnings. Look into the programs of companies that
lease equipment with a lease-to-buy program. You may spend more
in the end, but you will have more cash for your business in the
beginning. Searching out a leasing company may be more time
consuming than dropping a credit card at an office supply
warehouse, but you will have hundreds to thousands of dollars more
available for other uses. You will know when to begin buying your
equipment.
Personnel. You can save a considerable amount of money by
seeking the assistance of family or friends to work with you for
deferred salaries and bonus incentives later. Your Uncle Harry just
retired, and though he wants to travel, his experience would be very
helpful, and you would not have to pay him now. Your circle of
friends and associates is huge, so give some thought to whom you
might solicit.

Hire Part-time Help and Independent Contractors. The IRS has


provisions regarding part-time work, so make sure your accountant
is aware of any stipulations that need to be clarified. Benefits for full
time employees can be very costly. In addition to social security,
which is mandatory, you customarily have to pay health insurance
and retirement. Often there are people in the community who are
happy to work part-time and who will not expect full time benefits:
mothers with children in school, high school students looking for
spending money, retired individuals. There is a pay-off with the
stability and reliability of your workforce, but remember that full-time
employees are prone to problems of their own too.

Subcontract Part of Your Production or Office Work.


Nevertheless, be cautious about whom you hire. Check references
and the quality of the company’s work. Make sure you prepare a
written agreement stating the function, role, delivery schedule, and
compensation involved. You do not want more headaches just to
save a few dollars.

Keep Good Books and Records. Careful record keeping and good
bookkeeping are essential for an understanding of your business.
You need accurate and verifiable records that are easily accessible.
Good records are critical for proper management, planning, and tax
preparation. Before you take steps to streamline your operation to
make it more profitable, understand where your money is going.
Costs, expenses, and sales volume are all factors in your profits.
Reducing expenses may be prudent once you determine where
there are excessive or unnecessary expenditures. Study and
understand the factual information before you make any decisions
or act subjectively on a whim.

Find the information you need in your Income Statement, also


known as the Profit and Loss Statement. You should receive this
information monthly or quarterly from your accountant or
bookkeeper. You will find your expenses itemized by category. A
second column shows your income sources, which would primarily
be your sales volume. By comparing expenses month-to-month or
quarter-to-quarter, you can determine where to reduce expenses
without hurting your operations.

Certain expenses are fixed, and not adjustable, such as rent,


utilities, your salary, and salaried employees. Other expenses are
variable and depend, for the most part, on the volume of sales being
generated at any given point. Some variable expenses are
advertising, salaries of part-time employees, commissions, salaries
for salespeople, packing and shipping costs.

By comparing Income Statements from month to month you can


evaluate whether an increasing sales volume is bringing you
increased profits. Sometimes the expenses associated with
increased sales can consume your profits. If this is happening, you
have to cut costs or change your pricing structure if you plan to keep
growing.

Bringing your Business Plan to life, opening shop, and entering the
business arena is easily as difficult as all the steps you had to take
to just get started. Hatching Your Plan and getting a firm foothold in
your business and in your industry takes dedication, determination,
and perseverance. If you’re still in business after a year, you have
beat the odds. Stick with your Plan, constantly review and analyze
your financial situation, and make adjustments to trim the sails.
Attention to detail now will set you on a course sailing right out of the
harbor. Very soon you will be on the high seas running with the
wind. Good luck!

INTRODUCTION ABCDE F GH I J KL M N O P Q R S TUV W XY Z LINKS


a
mm INFOMERCIALS

I
Recommended Books

Infomercial Insights available from Cannella Response Television.


Order your copy online at www.tv-infomercial.com. This book is a
must for understanding the industry. Get a huge discount by
ordering from the website. You will find it helpful, insightful, and
truthful. Do not miss it if you have visions of making an Infomercial.

The Complete Guide to Infomercial Marketing by Timothy R.


Hawthorne – The author is one of the leaders of Infomercial
production. This is a step-by-step guide that draws on his 20 years
of experience producing some of the most profitable Infomercials
ever made. Hawthorne discusses How to Determine Product
Viability, the Financial Realities of Infomercials, Identifying Your
Target Audience, Infomercial Strategies, Media Planning, Buying,
and Analysis, Inbound Telemarketing, Fulfillment and Packaging.
The book also contains a chapter on the history of Infomercials and
one on the future of Infomercials.

Recommended Websites and Reports

www.dmnews.com - Direct Marketing News is the news magazine


for the Direct Marketing Industry. They offer two free e-Zines, the
DM News Daily, and the new iMarketingNews Daily. On the left
menu bar on the homepage are the alphabetical listings of subject
topics. Find the heading “Infomercials/DRTV” for the latest articles.
Other topics of interest to you may include Catalog Marketing,
Internet Marketing, Legal/Privacy, Production/Printing, and
Teleservices.

www.imstv.com - Infomercial Monitoring Service, Inc is “the most


accurate and authoritative resource for information on the Direct
Response television industry.” They watch and report on every
minute of national paid cable programming, more than 15,000 hours
every month. IMS reports what programs are aired, where and
when, and is now reporting on short form spots, as well. Over
750,000 are followed. Understand trends, what your competition is
doing, where programs are showing most frequently and much
more. Check out sample reports online. A variety of subscription
packages are available.
www.infomercialindex.com – Find the most complete listing of
Infomercials on the Internet at this website. Click on Resources on
the homepage and find an alphabetical listing of companies
providing Resources to the Industry: Producers, Distributors,
Fulfillment Services, List Management, Legal Services, International
Distribution, Radio, Long Form Media Buying, Short Form Media
Buying, Telemarketing, Trade Associations, and Video Duplication.
You can get a lot of information and advice here before you commit
to any Infomercial production plan.

www.la411.com - You may not live in California or near it, and you
might choose to use a local company to assist you in developing
your Infomercial. As you might suspect, the single most
concentrated area for the talent and tools necessary for making
Infomercials is in the Los Angeles area as part the film industry. LA
411 is a directory of resources for creating a top-notch production.
Resources include: Production Companies, Directors and
Producers; Crews, Sets & Sound Stages; Location Services and
Equipment; Support Services including stunts, animals and more;
Camera; Grip; Sound; and Lighting Equipment; Props and
Wardrobe; Post Production Facilities for Editing; and more.

www.responsetv.com – Get response TV’s Third-Annual “State of


the Industry Report: The Infomercial Industry.” Also study other
valuable and insightful information and ideas at the Response TV
website.

www.altavista.com, or www.infoseek.com, or www.yahoo.com,


or any search engine - type in infomercials into the “Search” box,
and scroll to “Companies” and click on the box to find companies
involved in Infomercial production and distribution.

How often have you surfed the channels on TV only to be drawn into
an intriguing and engrossing program which, you discover, is
actually a commercial?

Infomercials are not regularly scheduled programs you find in the TV


guide. In the industry, they are known as long form advertising. To
the public, an infomercial looks like 30 minutes of programming.
They are educational and informative in tone but have very definite
sales’ pitches sprinkled throughout the 30 minutes. The most
effective infomercials present the product’s features and benefits in
such a compelling manner that the viewer becomes an instant
buyer.

Infomercials create consumer awareness, and develop name-


brand identification. The message offers consumers a solution in a
carefully woven series of premises. Infomercials often use experts
or celebrities to reinforce the benefits in the consumer’s mind.

In a highly competitive field, like health, diet, or fitness, there are


numerous other products with similar properties. Instilling the
recognition of your name brand is extremely important in all your
sales efforts. It is especially important with infomercials. The last
thing you want is for consumers to go out and buy another brand or
generic version of your product after seeing your Infomercial.
Infomercials as an advertising tool are very compelling to product
providers. In 1993, Infomercials grossed less than a billion dollars.
In 1994, they grossed over four billion! As a product provider, you
want your part of those numbers. The problem is, that producing an
Infomercial can be a very expensive project. An Infomercial may not
cost as much to produce as a 30-second spot for nationally
syndicated TV, but it still will cost thousands of dollars.

According to one industry calculation, infomercials cost


approximately one-fifth, on a per minute basis, what a 30-second
national spot costs. Production of your Infomercial is not your only
cost. You need to shop for and buy airtime to have your film shown.
You can hire a media-buying firm that buys large blocks of airtime
wholesale and then retails slots to product providers. Or, you can
purchase time directly from the networks including Cable.

Before proceeding you really need to look closely at whether


producing an Infomercial is the most expedient use of your
marketing dollars. If you haven’t already, seriously consider bringing
investors into your business at this point. Do not spend your own
resources or business profits on this medium, even if your sales are
breaking your own expectations.

Fortunately, there are a wide variety of other methods to market


your product. You probably do not need an Infomercial, at least in
the beginning. Some product providers erroneously believe that all
they need to do is get an Infomercial produced, and their product will
meet with instant success.

Unfortunately, not every Infomercial produced is a success. In fact,


many more fail than succeed. If the public’s response to an
Infomercial you produce is negligible, the wisest move is to pull it off
the air, get the footage back to the editing room for a re-work, or
start over entirely. Your thousands of dollars are gone, but
continuing to air a functionally deficit Infomercial is useless and can
be damaging to your product.

A much more efficient and effective use of your advertising dollars is


to plan a marketing campaign using several different approaches,
including some media. Do not stretch yourself so thin financially on
an Infomercial that you exhaust your resources on just one shot at
the big time. There are so many ways to market products and
services! You can be highly effective and successful without
spending thousands and thousands of dollars on the chance of
Infomercial success.

If your product proves highly successful in other marketing efforts,


and you have access to sufficient funding to make an Infomercial,
then begin to investigate the necessary steps and procedures.
Proceed cautiously and carefully to preserve both your health and
wealth.

You can discover what kinds of products sell well in the Infomercial
medium by watching the television yourself for a few days. Certain
categories of products have an appeal in this medium and do well
most of the time. These include: exercise and fitness home
equipment; other categories of vanity-oriented products like hair and
facial accessories and products; diet and weight loss programs;
housewares and kitchen gadgets; and self improvement programs,
seminars, audio tapes and books.
Your product or service need not necessarily fall within these
categories to meet with success in the Infomercial world. However,
some of the following criteria are important to consider when
evaluating how receptive the television audience will be to your
product.

One-of-a kind and totally unique products are difficult to find these
days, but your unique selling proposition is particularly strong when
you can claim that you are the only product like it in the world. If you
are the original, you certainly want to proclaim that fact. Once your
product is exposed to the mass media, you can be certain that there
will be copies, so be sure to state, from the very beginning, that you
are the original.

Price your product so the appeal is irresistible. Shopping on TV is


not like going into a retail store where you can hold the product in
your hand, sniff and smell it; or try it on or out (as in exercise
equipment); or turn it over and shake it. TV shoppers expect a deal
when they watch to shop. Otherwise, they would rather be retail
shopping or golfing. Give your potential customers enough incentive
to make them want to purchase your product at that moment.

You can get an idea of some specific pricing models by looking at


the home shopping networks. They expect a minimum 4:1 markup
on products they accept. They are much more enthusiastic about
products that can handle a 5:1 or 6:1 markup. What this means is
that they can sell the product for 5 or 6 times your cost, and still offer
customers a great deal.

When you produce an Infomercial, you can set your own price. You
want to recoup some of your expenses, but you don’t want to price
yourself beyond what the consumer will pay. You may feel you can
make more money at one price, but if you can sell more products at
a lower price, the quantity of sales may net you more dollars in the
end. Pricing is very important, so seek the counsel of friends and
associates, and use as many objective criteria as you can.

Targeting a market for TV is difficult. Therefore, your product should


have a wide and broad appeal to a large audience. You don’t know
who will see your Infomercial or when. Unless you can honestly
state that your product could benefit virtually anyone, you are taking
a big chance with the thousands of dollars you will spend on
production. Do not fool yourself either, because you will still lose.
Regardless of what you want personally, to meet with any degree of
success your product must be an item anyone would buy from an
independent Infomercial

Infomercials are particularly effective with products that demonstrate


in an exciting manner. Viewers get involved in the activity and relate
to what the product is doing or about to do. In particular if a solution
to a problem emerges in the demonstration, you can sell viewers all
day.

If you have investigated Infomercials in any way or if you have any


knowledge of TV advertising costs, the following financial
information should not be a surprise. Remember, the costs of an
Infomercial extend beyond the basic costs to make or produce it. In
addition to production, minimally, you have to purchase airtime each
time you broadcast your Infomercial. You have to find and hire a
professional in-bound 800 telemarketing firm that can handle your
orders when there is “spike,” or burst of calls. Additionally, you may
want to hire another company to handle shipping and handling, or
the fulfillment of product orders.
The production costs alone are staggering. Budget a minimum of
$75,000-$100,000 just for the production phase. If you do complete
your Infomercial for less, you will have more money to purchase
more airtime. Chances are the production costs will be closer to
$150,000-$350,000, which is the industry average. If you don’t have
financial reserves like these, find some other marketing methods
until you can bring in a joint venture partner or venture capitalists
who can fund a project like an Infomercial. Whatever you do in
marketing and advertising, always stay within your budget. For
every Infomercial you see on TV, there are a number that have
failed. Whatever the reasons for the lack of success of an
Infomercial, ten of thousands of dollars were spent and lost. The
recommended plan is not to undertake an Infomercial project unless
you can afford to lose everything,

The costs after an Infomercial is produced are not insignificant. You


can purchase your own airtime, but the media buying companies
that specialize in purchasing big blocks of time and running TV
campaigns are professionals who know the industry, and have
close, working relationships with stations and networks across the
country. They make a percentage, but your Infomercial might not
get aired properly without them. Do not spend tens of thousands of
dollars and lose your entire investment because of poor media
strategy. (For information and contacts for media buying companies,
and fulfillment companies, see the Recommended Resources in
Chapter V- Video, Television, and Cable.)

Be prepared to spend thousands of dollars every week. Estimates


on the cost of airtime vary tremendously. What you are capable of
and willing to spend are the mitigating factors. Airings for a
successful Infomercial can cost from $50,000-$100,000 a week. You
might elect to spend only $25,000. Airtime for some successful
Infomercials has run as high as $500,000 a week.

If your Infomercial makes between $10 million and $50 million in


gross sales, you are one of the very lucky ones with a truly
successful Infomercial. Most people would be very happy making
$10 million in product sales. You can expect to make anywhere
between 5% and 20% of the gross sales with your Infomercial. If
your production costs were $250,000 (average) and your combined
airtime and fulfillment costs are $250,000 (10 weeks @$25,000),
and you made a 5% profit on $10 million sales, you would break
even.

If you could make a 10% profit, you could have spent $500,000 to
make $ 1 million dollars. These examples assume that your
Infomercial will be a successful one and generate $10 million in
gross profit.
If you spend $500,000 advertising in other mediums could you
generate $10 million in sales? Possibly.

In other media you would not need to spend $500,000 before you
would see a return. If you have been reading the chapters of The
Marketing Desk Reference sequentially, you will remember that
Catalogs, for example, can order thousands of your products. In
Catalog Marketing, you prepare a sales package and then make
phone calls and send inquiry letters to Catalog companies. You mail
your package to the companies that respond and express an
interest.
With relatively little work and insignificant costs, you can sell
hundreds of thousands of dollars of inventory. Catalog companies
buy all their products from product purveyors like you. The glitz and
charm of a television Infomercial are missing to be sure, but
Catalogs are always looking for new and innovative products. For a
review of Catalog Marketing, see Chapter C-Catalogs.

If broadcast media fascinates you, Radio is offers several exciting,


low and no cost marketing opportunities. See Chapter R-Radio for
more information about marketing products and services on the
Radio.

Finally, there is a new kid on the block in the world of Infomercials.


This new darling of the industry is called the Short Form DRTV Spot
or the Short Form Infomercial. (DRTV is short for Direct Response
TV.) This hybrid is similar in length to a network commercial,
usually 60 seconds, but the format is like an Infomercial. Production
costs are still significant, but the cost of the airings is significantly
reduced by buying blocks of unpurchased, or remnant airtime.
Chapter V-Video, Television, and Cable explores how effective the
Short Form Infomercial has become for advertisers.

Infomercials represent a level playing field in the big time, if you


have the money and are willing to risk it. They offer the average
person the opportunity to advertise and market products next to
celebrities and major corporations on Television. You can see that
the costs are astronomical and hardly within the reach of any
average small business budget. Standard industry minimum
production costs of $75,000-$300,000 represent only the beginning
of the costs to produce and broadcast an Infomercial.

The short form DRTV Spot is currently experiencing skyrocketing


popularity. Although production costs are still very expensive, the
average length of the short form Infomercial is only 60 seconds.
Because of their length, these spot messages do not require special
programming, and the average cost for airtime is can be as low as
$45 per showing.

Whether to make an Infomercial now or later is your choice. Make


certain you understand all that is required to fund an Infomercial
before you commit to producing one for your product. Be objective,
cautious, and critical. Pencil some numbers to see how many
products you need to sell to break even. Look at what your
anticipated profits will be per product. If you truly believe you can
make money, have another unbiased individual run the numbers
also. If you both agree there is a strong potential for profit, then
interview production companies for a realistic assessment of current
costs.

Do not gamble on an Infomercial unless you can afford to lose all


the money you invest, and still remain personally prosperous with
more than sufficient funds for your business to grow, expand, and
flourish.

Unfortunately, you have to spend a great deal of time, tremendous


effort, and a large fortune before the first potential customer views
anything. The risks are huge, but if you are successful in producing
a winning Infomercial, the rewards can be enormous.

INTRODUCTION A B C D E F G H I J K L M N O P Q R S T U V W X Y Z LINKS
a
mm JOINT VENTURES, VENTURE CAPITAL

J
Recommended Books

Angel Financing: How to Find and Invest in Private Equity - Books


specifically on Angel Investing are difficult to find. When your personal
options are exhausted, and your funding needs are too small for
institutional investment, Angel Financing may be an option. “Angels”
are individuals with a high net worth who have time to invest some solid
advice in an emerging company. This book covers everything from the
valuation process to writing an investor-oriented Business Plan, and is a
comprehensive guide to private investments, a subject about which
every small business person should have some knowledge.

Attract The Perfect Investor For Your Business by Ted Wooley,


order a copy of this booklet online for a discount at
www.insiderreports.com You can also read highlights from each
chapter of the book which covers finding traditional and private (Angels)
Venture Capital sources. The book describes how to make “power
presentations,” build a credible business plan, and a dozen “closing
tools.” Appendixes include sources for Venture Capital, including
sources on the Web, and FTC regulations regarding the solicitation of
capital.

Directory of Venture Capital by Kate Lister – This book helps you


decide if you are a candidate for Venture Capital, and whom to contact
with detailed information on more than 600 Venture Capital companies.
Plan a targeted approach to your search for Venture Capital with this
resource. Each company is carefully profiled

Joint Ventures: Business Strategies for Accountants- Find this


study course at www.proedsvc.com , or toll-free from 1-800-998-
5024. Ask for Course #1710 from Professional Education Services.
Although written for accountants, the information may be helpful to you
in developing your Venture Capital proposal.

Pratt’s Guide to Venture Capital Sources 2000 by Stanley E. Pratt –


This book is considered the “Bible” of venture capital. It is very
expensive, but extensive, and is the most authoritative listing of Venture
Capital Sources available anywhere.

The Venture Capital Cycle by Paul A. Gompers, and Josh Lerner -


The authors, professors at Harvard University, present an academic, but
very important look at the Venture Capital process they call The Venture
Capital Cycle: fundraising, investing, compensating, exiting, and
reinvesting. If you are serious about seeking Venture Capital funds, the
insights and knowledge you get from this book will be extremely helpful
in understanding your investors’ expectations.

Recommended Websites

Joint Ventures
http://home.eathlink.net/~fpearce/Jointventure.html – This site links
businesses together. Find a joint venture partner through a closed
proposal process.

www.insiderreports.com/legalfrm/b10198.html – You can find a joint


venture agreement sample form here at Insider Reports. Use the
sample as a guide for what to include in an agreement. As with all legal
agreements, consult a qualified attorney for accuracy and
completeness.

www.struc.com/news/51int.htm - This is a short, but helpful article


highlighting the benefits of entering into a Joint Venture Agreement,
particularly in the area of software development.

www.wjmurray-assoc.com/jvdevelop.html - You can register for a


seminar on Joint Venture development and execution at this site. The
course incorporates case studies. Find the course syllabus listed on the
site.

Venture Capital

http://pacific/commerce.ubc.ca/evc/vc_title.html - This site is


brought to you by the W. Maurice Young Entrepreneurship and Venture
Capital Research Center at the University of British Columbia. They are
endeavoring to create and maintain as complete a list as possible of
Venture Capital resources on the Internet. As of March, 2000, you can
link through them to: 28 Venture Capital connection websites that bring
entrepreneurs and Venture Capitalists together; 19 Venture Capital
consultants composed of both profit and non-profit groups that provide
information on business plan development, guidance with legal issues,
marketing services, and other consulting services; 44 Venture Capital
information services that provide information including Venture Capital
Associations, libraries and magazines; 71 Venture Capital Investors, a
list of firms organized by developmental funding stage, specialty, and
country. You can link to over 150 websites relating to Venture Capital
from this one site!

www.nasvf.org – This the website for The National Association of


State Venture Capital Funds, located in Oklahoma City at 301 NW 63rd
St., Suite 500, Oklahoma City, OK 73116. Call for the phone and
location of your state affiliate at 405-848-8570 or fax them at 405-842-
3299.

The Internet is a unique and powerful platform for both investors and
entrepreneurs to find Venture Capital partners. There are many
excellent websites where entrepreneurs and small businesses can list
their company, receive guidance in writing Business Plans, and find
assistance in locating money. Below are few of the most popular sites,
in alphabetical order. There are others that offer similar information. If
you seriously want to find funding for your company, review and tour as
many of these sites as possible to analyze which programs are best for
you. Each of the programs listed below offers different options. You will
benefit by taking the necessary time to carefully evaluate all your
options.

Venture Capital Programs

http://ace-net.sr.unh.edu (Entrepreneur Tab on top)


http://financehub.com
www.garage.com
www.insiderreports.com
www.nfib.com
www.nvca.org
www.nvst.com
www.privateequity.com
www.pwcmoneytree.com (Entrepreneur Resource Center)
www.sourcecapitalnet.com
www.startupuniversity.com
www.vcaonline.com
www.vcapital.com (Venture Capital Online)
www.v-capital.com (Venture Capital Marketplace)
www.vfinance .com (Venture Capital Resource Library)

Developing a Joint Venture for your business and securing Venture


Capital are two very different processes. Both provide you with a
means to grow and expand your business. A Joint Venture happens
after your company is established, and it is an excellent opportunity to
pool your resources with one or more other companies to expand and
diversify your product lines.

Venture Capital often provides seed or startup money needed to take an


idea and get it into production. There are no hard and fast rules,
however. Venture Capital companies can fund well-established
businesses in order to boost them to a new level.

If you haven’t yet completed your Business Plan, you will need to do this
to secure either Joint Venture or Venture Capital consideration. In the
case of a Joint Venture, you will want to scrutinize the other company or
companies, and they will want to know about you.

Your Business Plan should be solidly written, critiqued by someone


familiar with the process, and nicely packaged. See Chapter G-Getting
Started for more information about preparing a Business Plan. Also, see
Recommended Websites online in this chapter for companies that will
assist you in making the necessary adaptations to your existing
Business Plan for either of these projects.

The second activity you need to accomplish is making sure you have a
capable and experienced management team in place. If necessary, you
may need to bring in additional personnel if you really want to obtain
Venture Capital funding or secure a Joint Venture agreement. Team is
the important concept here. Both Joint Venture companies and Venture
Capital firms want to see more than just you. Regardless of your
experience or capability, surround yourself with other skilled managers
in the areas of marketing and production.

Finally, clothes are the man or woman. Always present your best
professional appearance. In interviews, meetings, or on the phone, be
cheerful, positive, and focused. Make sure correspondence follows
proper business format, is neat, grammatically correct, and written on
your company letterhead. The “other side” will let you know if you are
too formal, and you will know when you can be more casual.

Now, imagine yourself dressed in your best business attire, hair neatly
groomed, and crisp clean, copies of your Business Plan tucked into your
portfolio. Let’s take a tour of these two options for creating the
necessary funds to expand your business.

Joint Ventures
A Joint Venture is a formal relationship between two or more companies
to enter into a specific enterprise utilizing the resources, talent, and
tooling of each company to expand business for all the companies
involved.

Each company entering into a Joint Venture becomes a member of the


venture for their own specific purpose. Often companies join forces
because of the synergy they will create. They acknowledge that by
working together they can create a bigger enterprise than they could
accomplish individually. They acknowledge that the contribution of other
entities will enhance their capacity to expand and grow, whether in
manufacturing, management, markets, or any number of other business
divisions.

Joint ventures are mutually beneficial in every way, or a company would


not agree to participate. Expansion and growth are the goals, but each
company maintains its own identity. A Joint Venture is not a Merger. .

There are numerous reasons for companies large and small to team up
together. Just a few are: to create a new income stream by merging
technologies or products; to expand into new markets from local to
regional, to national, or even to international; to combine technical or
research expertise; or to merge production or product lines for more
efficiency; and to make government bids together.

The major difference between a Joint Venture agreement and securing


Venture Capital is that each company in a Joint Venture contributes one
or more special parts of the puzzle to complete the picture.

Your company may be a good candidate for a Joint Venture


arrangement, but you won’t know what possibilities exist until you go
“venturing.” First, ask yourself some frank questions. Would a joint
venture expand your markets? Do you have the manufacturing,
personnel, and management to expand? If not, do you have the desire
and ability to tool-up and hire more staff? What is your current capital
situation? Can you afford to take risks?

Let’s say that after some soul-searching you decide to explore what
options exist for you with a Joint Venture partner or partners. The ideal
situation is to find a company that has had a successful experience with
a Joint Venture in the past. You will want to retain an attorney to do your
due diligence, regardless, but your learning curve will be dramatically
reduced by working with an experienced partner.

Secondly, you must have a good feeling about the other company, from
the CEO (Chief Executive Officer) or the COO (Chief Operating Officer)
to others you meet either in person or on the phone. Analyze whether
these are people with whom you could work. If they seem to have a
genuine desire to cooperate and are excited about the proposed
venture, you have found a match to pursue. If their style is abrasive, or
their mannerisms offensive, or suspicious, you should stop right there.

You can choose your wife or husband and you can choose your
employees. A joint venture partner is not a mother-in-law, so choose
wisely so that party doesn’t begin to feel like your least favorite relative.
At all costs avoid entering into a business cooperation enterprise fraught
with questionable emotions.
In the process of deciding whether you have an affable chemistry, you
want to begin learning what you can about the other company or
companies. You can start with their technical know-how and
manufacturing capacities, their knowledge of the market, and move into
the fundamentals of exchanging financial data.

You will want to discuss whether to incorporate the joint venture as a


separate company. Joint ventures are not mergers. Each company
maintains its own business activities, organization, structure, and
integrity. Creating a new business entity can be cumbersome, but may
prove beneficial to the health of the companies undertaking the joint
venture. Incorporating also limits the liability of the owners and the
assets of the cooperating companies.

It is highly desirable for joint venture partners to establish who will take
the leadership position, and who will remain in a more passive role.
Establishing a clear line of authority and decision-making creates a
mechanism not only for setting goals and accomplishing tasks, but also
for averting problems before they arise. Part of the discussion of which
party will take the major role involves staffing the new enterprise. As a
general rule, the workforce for the new enterprise comes primarily from
the company which assumes the greater position of leadership.

A joint venture arrangement, like any other change, can cause


confusion and uncertainty with employees. Since job security affects
performance, internal communication is more critical than ever. Every
situation is different, but a joint venture should only affect employees
who are involved directly in the new venture. Everyone else maintains
business as usual. When a company enters into a joint venture it is for
the purpose of expansion. Everyone should view the change as an
opportunity.

Joint ventures are risky, so it is important to do your due diligence, even


if you think you know enough about your partners. They are studying
you, and you must carefully study them. Financial disclosures will reveal
a great deal about the business abilities of your joint venture partners.
Your lawyer can advise you on how many months/years of bank
statements, end-of-year reports, and tax records you should seek. Your
accountant can translate this information into a report that will assure
you of the management skills and financial solvency of the other
company or companies.

Make sure that you protect yourself from any past legal or financial
liabilities your joint venture partner may have incurred. Also, the
success or failure of your joint enterprise must in no way be affected by
any legal or financial undertakings in the future. A proper investigation
of potential partners is another important reason to hire a capable
attorney to assist you in arranging your joint venture.

Your attorney can advise you on possible legal entities to consider for
your joint organizational plan. Regardless of the legal organization you
decide upon, you need to create a contract that covers several
important areas. Your attorney can assist you in developing the
agreement that literally sets the wheels in motion for your joint business
operations.

Call this contract The Joint Venture Agreement between Company A


and Company Y. There are a number of items you need to cover. The
more important items are listed here. Make sure the purpose and the
goals of the joint venture are stated clearly in the contract so that you
understand and agree on what you are doing together. To avoid
misinterpretations or misunderstandings in the future, state the purpose
as clearly as possible.
Carefully delineate the role of each partner in the contract, and provide
for a mechanism for changing or adapting those roles. In defining the
roles, state the obligations of each partner, (i.e., who is responsible for
making decisions). Also include an exit and/or buy-out clause should a
partner decide to withdraw from the venture.

The agreement should cover what expenses can be reimbursed and


how profits and losses will be allocated. You can study a joint venture
agreement form for your own edification at several Recommended
Websites at the beginning of this chapter. However, for your safety and
peace of mind, as well as the reassurance that all matters are
adequately covered, consult an attorney before entering into the
contract

Venture Capital

Venture Capital refers to the funds invested by a specialized


management company, or an individual, known as an Angel, in an
unrelated business. There are specific criteria for investment, but all
Venture Capital investments require a demonstrable growth potential
before they will finance a new or emerging company.

More than 3,000 venture capital firms invested nearly $13 billion in the
3rd quarter of 1999 in start-ups and expansions of other companies.
According to the National Venture Capital Association, (NVCA), 1,190
companies received a record $12.9 billion dollars during July, August,
and September of 1999. Less than 20 years ago, in 1980, the amount
of venture capital invested was $1.1 billion for the entire year.

According to Price Waterhouse Coopers, who survey the Venture


Capital Industry on a regular basis, every part of the country set new
records for Venture Capital financing in the third quarter of 1999. They
also discovered that some Venture Capital companies invested in 10 or
more projects with total investments of over $15 million.

Much of the growth of Venture Capital Investment is in technology and


Internet-related start-ups, but don’t despair if you are not in the high-
tech arena. According to the NVCA, all industries received more
funding including biotechnology, medical and health. Some Venture
Capital firms are interested in investing only locally or regionally. Others
favor minority and women-owned companies. According to Price
Waterhouse Coopers close to $5 billion was invested outside the
traditionally active areas of Silicon Valley, in California, and New
England.

In addition, by contacting your local regional affiliate for the Private


Equity Review, you can publish your company profile in the review.
Information on how to contact the 12 affiliates is listed in the
recommended resources portion of this chapter.

Venture Capital companies take a number of different forms. The


largest group is composed of private and public firms that manage
money. Other Venture Capital firms include: financial institutions like
brokerage firms and banks; corporations with a venturing division; family-
owned and managed venture groups; and SBICs (Small Business
Investment Corporations).
In 1958, Congress passed the U.S. Small Business Investment Act
which provided tax and other financial advantages, such as discounted
loan rates and access to government debt loans, to banks and other
businesses willing to assist young companies. Until then, most capital
investing was from private channels. The 1958 Act created the
incentives for corporate investments, and created the SBICs.

Venture Capital companies raise their funds from a number of sources.


According to NVCA, over 50% of the money Venture Capital firms use
comes from institutional, public and private pension funds. The rest of
the money these firms aggregate comes from foundations, corporations,
endowments funds, insurance companies, and wealthy individuals who
want to leverage a part of their investment portfolio in start-ups by
participating in pooled funds.

Individuals, known as Angels, may be interested in investing in your


company. They will take you under their wings, as it were, guide and
consult with you, and provide the necessary capital for your expansion.
These are often wealthy individuals with a background in business or
management or retired people who have the means and time to work
with you.

Typically, a Venture Capital company or an Angel buys a minority


ownership position in your company as a long-term investment. They
purchase stock and securities sufficient to maintain an agreed upon,
non-controlling position. You maintain the majority interest and continue
to manage and direct your business on a daily basis, only now you have
a cash windfall.

Like the Angels, the venture capital company assists and advises you
in developing your products or services, referring you to experts in the
field from their network of associates. They will take at least one
position on the Board of Directors, and play an active role in guiding you
either through your start-up or expansion. They are present to insure
their investment is used wisely, but they are also professional managers
who take pride and enjoy sharing their knowledge to help others get on
a solid foundation. The venture capital company has no interest or
desire in a take-over of your company. The more successful you
become, the happier they will be.

Their primary object is to find well-managed, rapidly growing companies


to invest funds they manage for a good ROI (return on investment).
Venture capital investing is a business with a clearly defined cycle, and
you may be one of several beneficiaries in this cycle for them.

Your contract will specify a period of time when they will liquidate and
“exit.” This time frame is commonly 3-7 years. When they liquidate their
investment, the venture capital company pays their investors, takes their
management fee, and begins the cycle of raising money again,
investing in other companies with rapid growth potential. They hold until
the exit date, liquidate, and return capital to their investors. The cycle is
7-10 years in duration; they may have a number of concurrent
companies and cycles. For the investors, the 3-7 is a long-term
investment.

Imagine being on the team that invested in the very early stages of
Apple Computer, Intel, Microsoft, Federal Express, or Genentech, to
name a few. These were all funded as rapid growth potential companies
by Venture Capital investors.
You may not really be interested how a Venture Capital company
makes their money, but you should be. There are a number of ways
they divest, or liquidate their position in your company. The most
common way they “exit” is by raising cash from a public stock offering.
You may be able to arrange a buy-out, or liquidate some assets, or a
combination of these. A merger or acquisition is another possibility.

One advantage to obtaining Venture Capital financing is that you don’t


have to pay back any money for 3-7 years, depending on the date you
agree for them to “exit.” In that time, your business could grow
substantially. The long-term orientation of Venture Capital is highly
appealing to rapidly growing companies whose financial situation can
fluctuate dramatically during rapid expansion. A conventional loan is an
expensive monthly encumbrance. Venture Capital funding is often in the
multi-millions, an absolutely prohibitive amount to consider repaying
through a conventional loan format.

The venture capital company and its investors are aware of the high
risks involved in investing in rapidly growing companies. Most venture
capital firms make multiple investments in each cycle. Some firms
manage as much as a billion dollars; others manage several million.
Obviously, not every investment has a satisfactory ROI. However, the
overall rate of return is substantial enough for them to continue, and
based on the latest data available for the 3rd quarter of 1999, the
venture capital industry itself growing rapidly.

Generally, seeking a Joint Venture or Venture Capital is a financial


option you consider once your business is operating and creating a
positive cash flow. Each has its merits. Both are means of funding
expansion and growth. You may want to explore both. Understand
every minute detail to which you are committing yourself and your
business before finalizing any agreement. Be cautious. You’ve worked
hard to get where you are.

INTRODUCTION A B C D E F G H I J K L M N O P Q R S T U V W X Y Z LINKS
a
mm KNOW HOW

K
Recommended Books

10 Steps to Empowerment: A Common-Sense Guide to


Managing People by Diane Tracy – This book shows how to
delegate responsibilities to employees to increase your time, and
ways to increase the confidence and trustworthiness of staff

50 Powerful Ways to Win New Customers: Fast, Simple,


Inexpensive, Profitable and Proven Ideas You Can Start Using
Today! (2nd ed.) By Paul R. Timm - Become a “customer magnet”
with simple techniques for drawing people to your products and
company.

Business Know How: An Operational Guide for Home-Based


and Micro-Sized Businesses on Limited Budgets by Janet
Attard - “More than 800 ideas, tips, and hints to help you avoid
problems and operate more profitably with less effort: tips for
starting, managing, and growing home-based and small
businesses.”

Best Books for Growing Firms - Find books suggested by


Fortune Small Business/Ultimate Resource Guide at the following
address:
www.pathfinder.com/fortunesb/resources/best_books.html

Rules & Tools For Leaders: How to Run An Organization


Successfully (3rd ed.) by Perry Smith. Topics in this book include
Leading, Establishing Standards, Organizing Priorities,
Decentralizing and Delegating, Creating a Vision, Hiring and Firing,
Making Decisions, Leading in Crisis Situation, and many other
important management functions.

Recommended Websites

Now is the time to research the Internet, if you have not done so
already. There are so many resources for you! Get online and study
the wealth of information that is free and readily available. Look for
“links” on each website you visit. Clicking on a link will take you to
an entirely different website with similar or related information.

www.1800mylogo.com - 1-800-My Logo is one of the few places


on the Internet “dedicated to the creation of Corporate Identity.” 1-
800-MyLogo creates logos, slogans, and jingles, for small and
medium sized business. Ask them about creating your “hook.” They
will also design stationery and assist you in an advertising
campaign. Unique identity packages are available, as well. Visit the
links on their homepage for many more excellent business sites.
www.amanet.org - The Website for the American Management
Association International provides conferences, special events,
research reports, seminars, and more. Seminar topics are many,
including management skills, sales, accounting, financial
management, training, leadership, insurance, and more.

www.bizmove.com - “The Small Business Knowledge Base is a


comprehensive free resource of small business information. It is
packed with dozens of guides and worksheets, guidelines and tools
you need to successfully manage your business.” Sign up to get
their useful e-Zine, Biz Tips, and a CD-ROM called Managing a
Small Business, which covers 220 topics.

www.businessknowhow.com - This useful site offers information,


resources, and articles on “how to succeed in your home office,
business, or career.” Resources include the National Small
Business Resource Directory with over 2500 businesses. Advertise
your products and services (for free), and find suppliers or potential
partners. Search for consultants, trade associations, magazines,
and other business resources.

www.connect.claritas.com - Research demographic information.


Find 90 Preformatted Reports with over 19,000 variables on
consumer and business markets. Claritas Connect is the “premier
provider of custom targeting and marketing analysis resources, and
has been in business for over 25 years.

www.guru.com – Guru.com is the Web’s “premier exchange for


connecting independent professionals with contract projects. Over
200,000 specialists list their professional expertise.

www.infoworth.com/ask.htm - Submit questions at “Ask the


Experts” about starting, managing, financing, or growing a
business. Answered questions are published on the website.

www.insiderreports.com/bizrpts/resource.htm - Insider
Reports.com is a great business site. Be sure to check their
resources at www.insiderreports.com. This page lists The
Resource Directory for Small Business Management, SBA booklets
that you can download or order directly from the SBA Titles include
Marketing Strategies for Growing Business, and Management
Issues of Growing Business.

www.isquare.com - Another site with a tremendous number of


valuable resources and links. The Small Business Advisor has a
large table of contents with information on US and state
governments, a series of frequently asked questions, and a section
on business services. The site has a long list of links for related
sites, and their own articles of information on a number of business
topics.

www.office.com - Sponsored by the SBA, provides “online


learning tools and information resources for small business owners
with step-by-step training covering the key aspects of operating a
thriving business.” Check it out!

www.onlinebusadv.com - This site offers “a wealth of free advice,


training and information on managing people, sales management,
profit enhancement, marketing, strategic planning, customer service,
and a host of other business related topics.”
www.professionalcity.com - At this site you will find “all the
information, materials, products, and services needed to execute
your profession better and faster.” “Neighborhoods” on the website
provide extensive information.

www.score.com - You can get advice, counseling, and assistance


for any phase of business development. If you have yet to locate
your nearest SBA office or contacted SCORE, (Service Corps of
Retired Executives), now may be the time.

www.smallbizmanager.com - “All you need to start and grow your


small business.” This site provides links to a number of useful sites
for information, business tools, and services.

www.trainingforum.com - This site is “the online resource for


premium training information.” The Learning Center offers over 150
skills and technology courses for on-the-job training and continuing
education. The Events Database offers over 400,000 professional
seminars, conferences, and training programs. The Products Center
has information on training, products and organizations. The
Speakers Database has information on experts, consultants and
speakers who can benefit your organization.

www. trainingnet.com - “The largest selection of sources for


experienced managers and executives, over 1,200 providers” with
thousands of training opportunities including University courses,
software programs, books, seminars, and workshops. Eight major
categories breakdown to hundreds of subcategories so you can
easily find what interests you.

www.usadata.com - Provides “data-to-go” information that can


solve your marketing information needs. Get Information about
consumers, competitors, and markets. Through custom data reports
you can understand your customers better. A number of pre-
packaged industry reports are available.

More than likely, at the time you started your business, the
innumerable tasks required to open were so time-consuming and
immediate it was impossible to anticipate or plan for the complexity
of issues you now face. It is much more difficult to generalize about
the needs of ongoing businesses than start-ups. The on-going
functions of every business vary considerably, and every business
owner has quite different experiences and background.

If you have been in business for a year or more, congratulations!


Pat yourself on the back. You are among the scant 10% who
succeed for more than one year. Such is the sad reality of life in the
business world. However, if your accounts are in good order, and
you are making money, you have “made it.” Your chances of staying
in business are excellent. You are the envy of thousands who failed
for numerous reasons. Still, some planning and analysis will make
this next phase more effective operationally, and optimize your
opportunities to market your products.
Though you can seek ideas and advice for solving problem issues
and concerns, only you can make the decisions on how to proceed
with your company. Venture Capitalists envision a cycle for every
business. Each cycle has an ending. For successful businesses, the
final phase ends in a sale to a new owner. When a business fails to
turn a profit, continues to lose money for several years, and
boosting management fails to change the financial picture, venture
capitalists recommend liquidation as the only realistic and viable
solution.

Fortunately, we are not planning either scenario in your case. You


plan to retain your company, and expand with increasing revenues
and market share. In this chapter, you will find ideas that take you
forward in business development, whether your markets require
expansion, or because you are ready to inaugurate a new growth
phase.

Resources are readily available for assisting you. Begin by


investigating the Recommended Websites for this chapter and other
chapters in this manual. Most websites list topic areas, so it is
relatively easy to find articles and resources in the areas of
immediate interest or particular concern.

Several sites offer advice and free consulting. In particular, contact


SCORE, the Service Corps of Retired Executives. Explore the
additional Websites listed in Chapter X- X Sites to See or find the
section in Chapter W-World Wide Web that describes Internet
search engines and how to develop a quick, highly successful
search program of your own.

Keep asking questions and searching for a counselor whose


experience and style matches yours. Many issues you face are
common or similar enough that you can gain insights and benefit
from the experience of others. Doing so saves money, time, and the
unnecessary agonies of trial and error. To get valuable assistance
that is available, you must first be willing to seek advice.

Check the course catalogs at your local junior colleges, and college
and university extensions for business and management courses.
Whether you want more information on managing employees,
customer relations, general management issues, accounting,
marketing and sales, or other areas, continue to educate yourself on
aspects of your growing business. You will know when your
knowledge is sufficient to carry you through any situation or crisis
that could arise.

Make the effort and find the time for your own personal
development. Even though your time is limited by the demands of
your business, you and your company will benefit from the time you
make to study books, attend weekend seminars or other educational
courses, and research information on the Internet. All of these
resources are available to assist you in becoming the best manager
you can be. The tips, ideas, and systems management skills you
learn will make your job easier and more enjoyable.

One mark of a successful person is the clearly demonstrable desire


to learn more and grow better at what they do.
In addition to finding advice, information, and resources on the
Internet, and seeking advice of experts locally, contact both your
local and national trade associations. You will find these
organizations provide a vast amount of useful information, all of
which is free to members. If you have not yet joined, locate your
local chapter or call the national organization. You can locate many
national organizations on the Internet. Trade associations provide
industry and competitors’ sales figures, helpful tips and ideas,
information on new industry products and services, consumer and
demographic data, and other valuable information.

Another reason you want to join is that every trade association has
at least one Tradeshow or Expo every year. Be sure to be there to
make your company known, to learn from your competitors, and to
build market share for your company. Trade shows exhibit what the
industry is doing and planning. You want to stay as current as your
can. Subscribe to all the trade magazines in your industry for the
same reasons. Facts and figures help you plan and execute a
marketing plan, target your market better, and know what and how
your competitors are doing.

Management is a frequent concern of small business owners after


being in business for more than a year, especially if the company is
growing and expanding rapidly. It should be. According to Dun &
Bradstreet, 90% of business failures are linked to inadequate or
poor management. Except for highly specialized graduate programs,
the skills and abilities of a good manager are not taught in school. A
number of the Recommended Websites for this chapter offer articles
on the many aspects of management. Some of these websites offer
booklists, training seminars, and software, as well.

Another area to consider and evaluate is the pricing structure of


your product. Your initial price may be such that making the profits
you need appears impossible to attain. You certainly want to make
more than what it takes to stay afloat from month to month.

Marketing and advertising take a good chunk from your profits,


probably more than you initially anticipated. In fact, statistically the
largest ongoing business expense is marketing.

Consider every possibility you can to make small adjustments to


your pricing. Change or combine some items. Offer specials and 2
for the price of 1, and raise the price. See if you can create diversity
to your product line. Make one change at a time to get a sense of
the positive or negative impact it has on your orders. Only you know
how the price structure could affect your profits. Only you know how
easily a change can be instituted. Since every business is different,
pricing is a totally individual issue. Look at this area, and analyze the
possibility of instituting some changes.

If you don’t have a consultant at this point, see if you can arrange to
find someone who has business experience, whether it is a relative,
a friend, a SCORE advisor, or a referral from your trade
association.

Issues like price changes are highly sensitive. You want to retain
your loyal customer base and continue to develop new customers.
However, you are not in the business of providing products or
services at cost. Having a business consultant gives you an
impartial opinion that can be extremely valuable, and the advisor
can offer suggestions and alternatives that can help you make
important decisions.
This example of product pricing and relative profits is only one
illustration of hundreds of possible concerns that could exist at this
point in your business. Fresh ideas might provide a jumpstart to get
you moving forward smoothly again.

There are no problems. There are only too few questions. Keep
asking questions, and solutions materialize. Today you can access
resources to more information in an hour than you can fully absorb
in several years. Keep writing down your ideas, your questions, your
answers and your solutions, even though they may seem ridiculous.
A resolution or series of resolutions will come to you. Like an
elaborate jigsaw puzzle, a picture will emerge and you will know
what you need to do.

Look carefully at your marketing plan, especially if you want to


create expansion and growth. With suggestions from your staff,
delineate a clearly defined, goal-directed plan. The first question you
need to determine is whether the company has a plan or whether
you are still experimenting with different techniques to see what
works. As soon as possible, meet with key operation managers to
outline a plan.

You, as owner, need to commit the funds necessary for marketing


and advertising. This is very difficult to do, because experience tells
you results are intangible and elusive. Developing a successful
marketing plan is a major component to the success of your
business. The methods and techniques you use are your
prerogative. Staff can suggest or recommend. But you pay the bills,
and only you know what you can afford to budget for marketing. If
there is little passion or few suggestions from staff, get clues on
what works for your type of product or service by observing where
your competition advertises. If matching what your competition does
is cost prohibitive, scale down your efforts and explore others.

Remember the purpose of advertising is to lay the groundwork for


future sales. Every advertising method takes money. Your
advertising efforts planned and coordinated together are your
marketing plan. The good news is that you can build from a local
base and utilize many local resources. Regardless, expect to spend
money to make money. To reap you must sow. Plan your strategies
and follow your plan. If you cannot afford an advertising method,
save that idea for later, and do something else instead.

Define a budget. There is no definitive answer on how much you


should invest in advertising or how much you should re-invest from
profits in more marketing efforts. Every business is different, and
every product provider has different needs and expectations from
his/her business. 25-30% is a substantial amount of money to take
from profits. To grow, expand, and make money, make those
percentages your goal.

Having a marketing plan will save you time, money, and constant
uncertainties. A plan is enabling to staff. They know what they need
to do and when they need to do it. A plan takes the guesswork and
hunches out of marketing. There is no right way or wrong way to
advertise, so follow your plan. At the very minimum decide what
methods you want to use, which media you will employ, and how
much you plan spend in a specific period of time, like six months or
a year.
Look carefully at your plan and your budget to make sure you are
not over-committed. Remember you are in business to make
money! Draw a line at the point where you can manage
expenditures yourself. Below that line, add a wish list of additional
marketing programs you would undertake if you could locate a
venture capitalist or a joint venture partner.

There are very expensive media options and less expensive ones.
You always have choices. Just start marketing. Get the advertising
systems on a chart and get going. Think of it this way: if you
decided to take a trip, but made no plans whatsoever, chances are
you would not make your destination. Get on the road with your
plan (map) in hand. You will make it!

Advertising qualifies leads to buy your product or service. In some


situations, you will create a sale. In most cases, you and your staff
work with those leads until they become buyers. Training courses on
sales and sales techniques are available both on the Internet and
through local SBA offices. You can hire consultants to come to the
office and work with staff if you feel the program will benefit.

You have partners in your advertising efforts whether you have


elicited their support yet or not. Your satisfied customers are
valuable allies. Ask for testimonials when you talk to them on the
phone. Use what they say about your product in your newsletters,
advertising, and sales letters. People love to read testimonials. You
can never have too many. Run contests and awards for every
category of best customer you can imagine. Ask them for referrals
and reward them if a new customer purchases as a result of their
referral. Then begin to work on the new customer for referrals.

Keep a card file on every customer who refers someone to you, and
reward the person with the most referrals. Keep all your customers
in a database so you can retrieve information and communicate with
them. Networking with existing satisfied customers just
keeps growing and growing as soon as you make your desires
known. The monetary investment is minimal: a few phone calls,
some letters, and maybe some samples are all you need to get
started. Someone on staff, probably you, should spearhead the
effort. It is so important and easy to work with your satisfied
customers on an on-going basis, you don’t want to pass it off to a
staff member who feels he/she has more important tasks to
accomplish.

You generate goodwill with your customers when you personally


communicate with them. Let your satisfied customers know how
much you appreciate them. Send them a gift or personal note of
appreciation when you receive a referral. (See Chapter Q- Quick
and Quality Ideas That Work.) Send them birthday cards and
holidays treats. The goodwill that you foster with these small efforts
will come back to you many times.

Your ability to get the support of existing clients really has to do with
attitude. If you approach them because you want more customers
(which you do), but avarice is your only apparent motive, then you
are likely to get less support, understanding, and cooperation, than if
you come from the point of view of wanting to share the unique
benefits of your product. Getting testimonials is important because
people will say exactly what the product has done for them. Be sure
to print and use the testimonials in your literature. People love to
see their name highlighted. At that point you can call and say: “You
know, George, I’ve been thinking, since XX has helped you with
your YY, can you think of friends or family members who might
benefit as well? I’d like to send them a free sample.”
The key point here is that whether George recommends one or ten
people now, you have him thinking about how much better his life is
as a result of your products. You can also write a letter, which is less
pressure, and ask for referrals. Offer a free or discounted product for
every referral.

In your advertising and in your discussions with clients and


customers, always remember that benefits sell product. People buy
once they believe the quality of their life will improve. Improvements
can be to their health, their finances, their lifestyle, their education,
to anything that improves in the quality of their life.

Did the magic word Free get George to sit up and listen? You bet it
did. Free? What do I do? People will stand in line for free anything.
Add something “Free” to an advertisement whether it is a free
sample of your product, free information, or a free audio or video,
and you will get a greater response than the same advertisement
without a free offer.

Figure out a way to key or code your advertisements, so you can


track which advertising is generating the most responses. You
probably had a good idea who would respond to your product when
you began; by now the focus should be very clear. You want to
examine what media and what methods reach your specific
audience the best.

You cannot place a display ad in a major metropolitan newspaper


just once and expect to grow a business. (See Chapter N-
Newspapers and Magazines.) Those ads are very expensive, and
although you may get some responses, you don’t want to spend
several months of your advertising budget on one display ad.

Marketers know the public is inundated by information overload, and


needs to see or experience an advertisement multiple times to make
a decision to purchase. The sad truth for product providers is that
this means not three or four times, but more like seven to nine times
before Joe Q Public decides he wants to buy. Realistically, before
you can assess the effectiveness of any campaign, you need to
continue to spend money for several months. Every product or
service needs consistent marketing in the same media, over and
over, again and again, to get results.

Polls show that the public responds to ads that they see over and
over. However, most small businesses cannot afford to run months
of display ads in major metropolitan newspapers. The first step is to
narrow the demographics of your target market, i.e., age, sex,
education, occupation, etc. Then use media and techniques you can
afford, and which are most likely to reach your audience.

Covered more extensively in Chapter P-Publicity are the ways you


can bring free advertising to your company. Free. No cost to you.
Briefly, consider writing an article for your local newspaper. Editors
are always looking for stories. You might even connect with them for
a regular or semi-regular column. Think of what you can offer, visit
them, and make a proposal. Take a sample of your writing to give
them. Either one article or an extended column gives you the
opportunity to tie your product and or the company into the
information. Your brief bio at the end of the article or column can
also provide information on the company and product.
You can also arrange to give talks or lectures in your community
and surrounding areas. Civic groups are always interested in
speakers with a special interest or expertise. Be lightweight about
your products and the company. Bring some brochures, invite them
to an Open House, or suggest a coordinated charitable event and
donate to them. Figure a way to tie your talk into their organization
or some special need of their membership.

Always have a large quantity of business cards with you. Outreach


activities can bring you new customers regardless of whether you
personally encounter a customer at a function. People go home and
tell their wives, husbands, children, neighbors, friends, and
associates. Unknowingly, they network for you. Since you are local,
an interested individual will call you or stop by the company.

Have your business cards printed with “Please call for an


appointment” if you want some advance notice before strangers
appear at the office. Speaking to civic groups like Rotary, Kiwanis,
senior groups, church organizations, and others builds rapport and
goodwill. Chances are good you will get customers, too.

The two primary ways to increase profits are to increase sales or to


decrease expenses. Increasing sales is always an important focus
and high priority for any company. Consider how cutting costs would
increase your bottom line profits. Implementing a cost savings or
expense reduction plan can have a significant impact on your
bottom line profits. You have to work at this effort, though.

Study your ledger book or a recent expense statement. Scrutinize


each expense category carefully. Discover where most of the money
is going, and see if there is a way to reduce those expenses. For
instance, when was the last time you checked long distance rates
and plans? Stay current with variable expense items like the rate
you pay for long distance calls. Look at the utility bill. Without
causing discomfort, is there a way to reduce that expense? Have
someone look into finding a discount supply house for your office
supplies. Compare different prices and check the Internet for
options.

There is a strong likelihood that your company can order toll-free


from a discount office supply catalog or the Internet, have the
supplies delivered to your office, and spend less than you are
currently paying. Support other local businesses only if they are
competitive with the larger discount houses. Your profits are
important too!

As you look at your ledger or expenses statement, study the areas


of highest expenditure and plan small ways to reduce costs over
time. If you have a large postage expense, consider modifying the
more expensive packages to lower rates. Begin by building an email
database of your most valued customers, and gather email
addresses for every new customer. Keep different lists if you want,
but begin communicating with everyone by email.

Study your accounts receivable column. Accounts that are past due
60-90 days or more days need immediate attention. Have someone
with phone skills and strong abilities contact those individuals.
Authorize your assistant to arrange installment payments, if
necessary. Then turn to your accounts that are 30 days past due
and contact those people to make payment arrangements.
See if you can reduce your materials supplies cost if you are a
manufacturer. Whether you periodically need to purchase expensive
items, or have used the same supplier for some time, ask for a
premium customer allowance, in other words, a preferred discount.

Every supplier has a tier of discounts that are not publicly available.
If they value your account, they will attempt to meet your request. It
is possible to negotiate a new price for anything anywhere if you are
willing to make the effort. Make the effort. You never will know
what is possible until you seek the possibilities.

Barter is not an uncommon practice in American business. It is one


of those things that happens and probably with a fair amount of
frequency. In a situation where your supplier might have a use or
application with your finished product, bartering, or trading supplies
for finished product makes logical sense. There are other instances
in business where a trade is beneficial to both parties. The reason
why we do not hear too much about this exchange is that the
government does not receive a share. However, if you find the
possibility exists, you certainly won’t be the first company in the
history of the world to engage in fair trade.

Study your accounts payable. Ask some vendors if they would


extend their expectation of payment to a longer period. This
scenario really only buys you some time, but if you feel paying later
in the month, or at a different time of the month, would ease your
monthly cash flow, approach the company for a new arrangement.

Analyze your inventory for excess stock. Look at ways you could
reduce any materials or inventory and still make the production and
product quotas you want. Clearly sitting with a warehouse or more
of inventory may be in excess of what you really need to have
available at any point in time.

These are suggestions for streamlining your operations so that you


can improve your profits. You know other areas of your company
that could be trimmed. Some of these suggestions might make a
difference and some won’t apply to your situation at all. You may
find that there is little you can do to adjust your expenses. Keep the
concept in mind and periodically review all your expenses.

If someone leaves the company, rather than replacing that position


with another full-time person, consider delegating the functions of
that job to several existing positions. Give people who assume new
tasks a raise to compensate them for the additional work. You will
end up spending far less than if you have to pay a full salary with
benefits.

All your efforts to trim costs may be obliterated by one expense, if it


is currently insufficient: your insurance coverage. Building a
business and watching it grow is exciting. Planning expansion is
challenging. All your work and all your efforts could be lost if one
employee, or one visitor is injured and you don’t have adequate
insurance. A fire or flood could destroy your business without proper
coverage. As hard as it is to accept, you may need to increase your
insurance coverage when you expand. Contact to your agent to
make sure you are covered adequately.

Coverage for business property damage and liability are key


concerns. However, as you expand and your net worth grows, make
certain that you cannot be held liable for a claim beyond your
coverage amount. One way to protect yourself is to attach an
umbrella policy to your liability policy that will take effect in the event
that a claim exceeds your coverage.
The same umbrella policy may be able to provide additional
coverage in the event of excessive property damage. If the value of
inventory on hand is consistently increasing or you have added
square footage or buildings, you need to re-evaluate the amount of
coverage you are carrying for property damage.

Being under-insured is senseless. It is almost as bad as not being


insured at all. There is no way you could benefit from filing a claim
that fails to cover your loss by tens of thousands of dollars or more.

In the last few years another policy has emerged for business
owners that speaks to the issue of adequate coverage. It is called
Employment Practices Insurance. This policy covers you if an
employee sues for sexual harassment, wrongful termination, job
discrimination, or a number of other claims against you or your
company. Most often the policy provides both for your legal
expenses and for a settlement for damages. You say you can’t
afford coverage like this, but consider carefully whether you can
afford not to carry such a policy.

A vehicle that is in the name of the company must have a


commercial policy that can be as much as 25-30% more than your
personal policies. Adding the company car to your personal policies
might look like a way to save money, but a claim could result in the
insurance company voiding your policy for misrepresentation. The
question is whether the risk is worth the potential damage.

If employees use their own vehicles to pick up, deliver, or drive for
company purposes, you can add on what is called “Hired and Non-
owned” auto coverage to your commercial policy for a nominal
amount. You can see how this coverage protects you and your
assets in the event of a claim.

A final word on insurance: make certain that your worker’s


compensation policy is current. Most states require these policies
wherever people are employed. Costs vary by industry, but every
employer must carry minimal insurance in the event that an
employee is hurt on the job.

Insurance policies do not affect your marketing efforts directly, but


marketing and insurance are both expenses that must be budgeted
from available profits. Adequate plans for both are as important now,
as your company grows and expands, as they were in your first
days of business.

If you want to stay in business, you will always have marketing


expenses. Coca Cola spends over $2 million dollars a year to retain
its market share. The more successful you become, the more
vulnerable you are to lawsuits. Protect yourself adequately and
review your coverage periodically.

You are a success. Stay alert to the possibilities of trimming costs


even as your company grows and expands. Seek advice and
counsel from others who have experienced concerns similar to
yours. Having a real person as a guide or a mentor is a delightful
experience. Books, seminars, software, and courses abound in all
aspects managing and expanding a business. Consult them often
for time and money saving tips and ideas. You are on the success
track. Information, knowledge, and advice are your guides as you
climb the ladder of prosperity.
INTRODUCTION A B C D E F G H I J K L M N O P Q R S T U V W X Y Z LINKS
a
mm Legal: Trademarks, Copyrights & Patents

L
Recommended Contacts

The Library of Congress, Office of Copyright


http://lcweb.loc.gov/copyright - The Public Information Office phone
number is (202) 707-3000. For applications or forms, call (202) 707-
9100

The Small Business Advisor


www.isquare.com/stateoffices.htm
This site offers a list of State Offices to contact for incorporation
information, with phone numbers.

US Patent and Trademark Office


www.uspto.gov For help and general information, call the PTO Toll-
free @ 1-800-786-9199

Recommended Books
301 Legal Forms and Agreements (…When You Need It in Writing!)
by Mario D. German, Sondra Servais (Editor) – “ The do-it-yourself
library of ready- to-use legal documents for virtually every personal and
business situation. This easy-to-use book offers perforated forms that
can be personalized, adapted, or used right from the book.”
The Complete Book of Business Forms and Agreements/Book and
Disc by Cliff Robertson - “…over 400 ready-to-use business and legal
forms, contracts, and agreements for thousands of business uses. Each
document is written in concise, easy-to-follow language, preceded by
simple instructions on how to complete and use it. For ultimate
convenience, a 3 ½” disk is enclosed in the book. Just pop the disk into
your computer, type in your information and you are ready to go!
The Complete Book of Small Business Legal Forms (2nd Ed.) by
Daniel Sitarz - An easy-to-use handbook containing “standardized
legal forms for use in most routine legal situations. Concise,
understandable instructions explain when the forms are necessary,
what the legal effects of each form will be, and how to easily prepare
them.”
E-Z Legal Guide to Trademarks and Copyrights by Michael C.
Donaldson - Covers the basics of copyright and trademark law, and
provides all the forms for applications. “Clear, simple instructions for the
layperson.”
How To Register Your Own Trademark: With Forms (2nd Ed.) by
Mark Warda - Every company needs a trademark. This guide covers
all the basics from start to finish in an easy-to-follow format complete
with checklists and flowcharts.
Patent It Yourself (7th Ed) by David Pressman - Patent attorney,
former patent examiner, and inventor, Pressman covers the entire
process thoroughly and completely. The Patent Office, patent attorneys,
librarians, and inventors all recommend this book. It includes all the
forms and instructions needed to file a successful application. It also
includes advice and suggestions on marketing, and is considered the
definitive guide on how to patent yourself.
Patent Searching Made Easy: How to Do Patent Searches on the
Internet and in the Library by David Hitchcock - Covers information
like how to classify an invention properly and how to find patents
relevant to your search since 1971.

Recommended Websites
www.about.com - This is the network of sites led by expert guides
with more than two dozen excellent links for inventors. Go to
“Inventors,” then to “Inventor Basics”.
www.adlaw.com - This is the website for the law firm Hall, Dicker,
Kent, Friedman, and Wood. They offer legal information for advertising
and marketing professionals.
www.corporate.com - The Company Corporation is a service
company. “Since 1899, entrepreneurs, accountants, and attorneys have
turned to us for their incorporating needs.” The company formed over
125,000 new corporations last year. They also provide all the auxiliary
services for running a smooth business, including tax, payroll, and
insurance.
www.lawyers.com - Lawyers.com is “your connection to legal
information & resources.” Here you can “find a lawyer, learn about the
law, and know your legal options.” This is an extensive site worth
visiting.
www.legaldocs.com - Legal Documents Online. Prepare customized
legal documents online. Choose a document, complete the
questionnaire, click submit and you can download to file or print. Many
of the documents are free to download and personalize, and there is a
nominal fee for others.
www.lib.utexas.edu/Libs/ENG/PTUT/ptut.html - This complicated
URL takes you to a useful patent tutorial at the University of Texas, one
of the Patent and Trademark Depository Libraries. Also, link to the
tutorial on the homepage: www.lib.utexas.edu
www.nameprotect.com - Protect your Trademark or Service Mark in
3 Steps with this online program for filing your trademarks. Step 1:
Search potential conflicts in the US Federal Trademark Registry Online,
$35 for unlimited name searches. Step 2: Comprehensive Search by an
Expert, results delivered to you by Fed Ex, $175-$495. Step 3:
AutoMark Online Registration. Print out and send to U.S. Patent and
Trademark Office with required government fee of $325. Auto Mark
software costs $65.
www.nolo.com - The Self-Help Law Center is “America’s leading
source of self-help legal information.” The site has an impressive list of
articles on patents, the differences between patents copyrights, and
trademarks; small business and employment information; real estate;
personal debt, wills and estate planning. They provide recommended
forms, guides, books and software.
www.parcorpsvcs.com - Incorporate online for as little as $45 plus
the state fee. This is the lowest price available anywhere. You also get a
pre-approved new merchant account (for accepting credit cards) with no
application fee. Check their bookstore for helpful books.
www.patents.com - The Intellectual Law Web Server provided by the
Law Firm of Oppedahl & Larson LLP provides a very extensive site
offering information on patents, copyrights, trademarks, trade secrets,
and other intellectual property. Information is both thorough and very
helpful.
www.quickforms.net - Select a document or agreement, and Quick
Forms will automatically draft it for you with your information. Nominal
fee charged for each document created.
www.siccode.com/forms.php3 - Sic Code.com is the website of The
Worldwide Business Exchange. They offer an extensive list of FREE
legal forms you can cut and paste.
www.smartagreements.com - Smart Agreements is the Teneron
Corporation Website. More than 600,000 copies of SmartAgreements
have been sold. Smart Agreements contain more than 130 agreements
and 60 topics of business law, all with complete explanations.
Information has been both selected and reviewed by attorneys and
business professionals for ease of use. Buy one or more “bundles” that
suit your needs and receive over a dozen bonus agreements.
www.venable.com - This is the website of Venable, Baetjer, and
Howard, LLP, the first law firm to list on the Internet. They offer over 200
articles at their website, and a free e-book called So You Want to Be on
the Internet. Scroll down the list of free articles and bookmark this site
for reference. Order the book for good, solid information about creating
a presence on the World Wide Web.
www.yourbizservices.com - The website of Agenus, Inc. offers
incorporation, LLC, Trademark, Copyright, and other business services.
Incorporation attorneys are available for consultation. If you incorporate
your business here, you can obtain additional legal services for a
reduced rate. There are a lot of links here for starting and running your
business.

Throughout your business life you will need to review legal contracts
and documents that will engage and commit your company to a course
of action or activity. At times you may feel smothered by a cloud of
legality that dictates everything. The purpose of these documents is to
clarify and establish relationships using law and equity. If you have
started your business, you have already had to negotiate several
contracts.

If you have not yet incorporated your business, now is the time to take
that step. Incorporation involves forming a legal Corporation or a Limited
Liability Company (an LLC). Incorporating protects you and your
personal assets in the event of a lawsuit, debt, or any liability involving
your business. Your home, your savings and investments, your cars,
virtually all your personal worth is at risk if you fail to insulate yourself
with a corporation or an LLC. If that is not enough incentive, a filing as a
corporation can mean hundreds to thousands of dollars you can save
annually in taxes and deductions.

Usually a business is incorporated in the state in which you live, though


you are not required to do so. You can incorporate in any state. States
like Nevada and Delaware have favorable tax advantages because they
do not tax corporations. This means if you incorporate there you will
only have to file and pay federal tax. You do have annual registration
fees in these states, which are minimal, and you need to maintain an
legal address where you can receive mail.

You do not need a lawyer to assist you with incorporation. In general,


all you need to do is call the Secretary of State’s Office and request the
incorporation packet. The Secretary of State’s Office for each state
located in the state capital. There are several online services available
for assisting you with incorporation. These sites are listed in the
Recommended Websites at the beginning of this chapter.

There are literally hundreds of other legal documents available that you
can familiarize yourself with now, or in the near or distant future. There
are at least a dozen websites on the Internet that offer you every
conceivable legal document you could need for your business or
personal life. Although these may be perfect forms and perfectly legal,
please consult with an attorney before you sign any document that
commits you or your company to a legal position.

The ease with which you can find information and research a topic or
question of interest is one of the great benefits of the Internet. The
ready availability of legal documents is wonderful, and easy accessibility
is tremendously useful.

One alternative is to prepare documents yourself if you want, and give


them to your attorney for review. If he/she is fair, you should only be
charged the minimum time the firm charges for document review. For
less than a few hundred dollars, you can have the confidence that the
document you sign is complete and accurate.

Reference legal information and answers to many legal questions on


the Internet at many of the Recommended Websites at the beginning of
this chapter. If you find answers to your satisfaction, and you are not
committing yourself in writing as a result, you probably saved yourself
several hundred dollars in time you could be charged for legal
research.
Be careful to keep facts separated from opinion. You can certainly
demonstrate the results of your research to an opposing party in an
effort to convince them of your position. You may be right, and that may
end the disagreement. Be careful that your position and the position of
your company is never compromised. You can protect yourself from this
concern entirely if you always have an attorney pre-approve any
document you sign.

With that said, Recommended Websites offer both information and


sample forms whenever you begin the process of creating a legal
document. The Recommended Books are highly regarded, as they are
in every chapter, and you can progress quite successfully using the
information and forms in them, as well.

With those tools available to you, the major focus of this chapter is
trademarks, copyrights, and patents: what they are, how they differ from
each other, and what getting them does for you. Virtually every business
will use one or more of them at some point, so it seems natural and
relevant to focus on these important documents.

This chapter is one of several that offers auxiliary marketing information.


Though not a marketing technique or strategy, understanding the role
and purpose of trademarks, copyrights, and patents, is extremely
important prior to inaugurating a full scale marketing campaign.

Before you become a public entity, you want to be certain you have the
protection available to you for products, designs, names, logos, and all
intellectual property. You might have the same name as another
company, or another company could register your name before you.
You might lose anticipated product identity or find it seriously
compromised. The last thing you want as you are finally ready to break
into the public sales arena is a prolonged, annoying, and expensive
legal battle to regain your company or product name.

Trademarks

A trademark distinguishes your company from all others. There is one


IBM, International Business Machines, one Motorola, one Ford Motor
Company, one AOL, one Amazon, etc. From the U.S. Government
Printing Office, General Information Concerning Patents brochure:

A trademark is a word, phrase, symbol or design, or combination


of words, phrases, symbols, or designs, which identifies and
distinguishes the source of the goods and services of one party
from those of others.

If you have a service industry, a service mark fulfills the same purpose
for services as trademarks do for products. “Marks” distinguish you from
other service industries. According to the PTO, trademarks most often
appear on the product or its packaging, while a service mark appears in
advertising for services.

Trademark or service mark rights occur in two ways. Actual use of a


mark can constitute establishing the right of use. The other right of use
happens through the filing of an application to register a mark in the
Patent and Trademark Office stating that the intention of the trademark
is for commerce in the United States. However, federal registration is
not required to begin using a mark, nor is registration required to
establish the rights of that mark.

Remember the purpose of a trademark is to create an identifying and


distinguishing symbol or phrase that sets you apart from other
companies selling similar products. The government clearly delineates
two separate rights with respect to the trademark or service mark. The
first is the right to register. The second is the right to use.

A trademark does not prevent other companies from making the same
products you do, or from selling the same products or services under a
different mark. Once you register and use a trademark you can
successfully prevent other companies from using your “mark” or a
similar and confusing mark. Though you are not required to register a
trademark, or service mark, another company may copy you or could
apply to use a very similar trademark.

Registration is the process that grants you official use. The possibility
exists that someone else will knowingly or unknowingly use your mark.
You have a strong case to insist they cease using the mark with your
official government registration. If they refuse, and litigation occurs, you
have every right to seek punitive damages, and the courts look very
carefully at who has the official registration for use.

The fee you pay to register is $245. This fee covers both the
processing and the search for any conflicting trademarks. You are not
required to research possible conflicting trademarks before you submit
your application. You can perform a search if you chose at the PTO
public search library in Arlington, VA., or at a patent and trademark
depository library.

Call the PTO at the toll-free number listed at the beginning of this
chapter to locate the nearest depository library. The libraries all have
CD-ROMs with the trademark database of both registered and pending
marks. Finally, you can have an attorney who specializes in trademark
law research for you. The PTO does not give advice. The government
does not refund your money if they find a conflict because of the of the
time staff attorney-examiners spend researching.

Trademarks last indefinitely, unlike patents and copyrights. The initial


term for a federal trademark is 10 years with 10-year renewals periods.
An interesting twist is that between the 5th and 6th year, the registrant
must file an affidavit with certain information to keep the registration
current. If you fail to do this, the presumption is that you are no longer
using the trademark, and the government cancels the registration.
Anyone who claims the right to use a trademark or service mark may
use the TM (trademark) or SM (service mark) symbol. You do not need
to have a registration on file, or even a pending registration to use these
symbols. Your claim for use may or may not be valid. The symbol ®
can only be used once the Patent and Trademark office issues the
registration.

If you are involved in interstate or foreign commerce, register your


trademark with the Patent and Trademark Office. Trademarks are not
registered for local use. U.S. Trademarks are enforceable only in the
United States and its territories. If you plan to take your business
international, you will need to register your trade or service mark in each
individual country according to local laws. The PTO does not offer
advice in these situations. You can get information from the different
countries, through U.S. embassies, consulates here in the U.S., or you
can seek advice from your attorney.

There are two kinds of applications for trademark and service marks.
The first is a “use” application for someone who is using the mark in
commerce. File an “intent to use” application if you are advertising, but
not yet selling products in interstate commerce. You can only register a
trademark or service mark if you have a “bona fide” intention to use it in
the course of commerce and trade. You cannot register a trademark to
reserve or hold a design or phrase. For general information and
procedures for registering, request your copy of: “Basic Facts About
Trademarks,” from the Patent and Trademark Office.
Copyrights

Unlike trademarks, which are not legally binding, copyrights are a form
of intellectual property law. They protect “original works of authorship”
according to a circular entitled, Copyright Basics, published by the
United States Copyright Office. Copyright protection is “available to
both published and unpublished works.” According to FAQs:

A copyright protects original works of authorship including


literary, dramatic, musical, and artistic works such as poetry,
novels, movies, songs, computer software, and architecture.

It is illegal for anyone to “violate any of the rights provided by the


copyright law to the owner of the copyright.” The Copyright Office lists
the following rights on of the copyright owner on page 1 of Copyright
Basics:

1. To reproduce the work in copies or “phonorecords.”

2. To prepare derivative works based upon the copyrighted work.

3. To distribute copies or phonorecords of the work to the public by sale


or other transfer of ownership, or by rental lease, or lending.

4. To perform the work publicly, in the case of literary, musical,


dramatic, and choreographic works, pantomimes, and motion pictures
and other audiovisual works.

5. To display the work publicly, in the case of literary, musical,


dramatic, and choreographic works, pantomimes, and pictorial, graphic,
or sculptural works, including the individual images of a motion picture
or other audiovisual work; and

6. In the case of sound recordings, to perform the work publicly by


means of a digital audio transmission.

Copyright protection begins as soon as a work takes tangible form.


Copyright ownership immediately becomes the property of the author. If
there are co-authors to a work they are considered co-owners of the
copyright, unless they have a different agreement. In the case of a
collective work, each contributor is considered the copyright holder of
his/her own work, except in the case of work created in the course of
work, job, or employment. Works created within the framework of
employment are considered work for hire. The employer, not the
employee, is considered the author and copyright holder.

There are several categories of work that are not protected by copyright.
These include short phrases, titles, names, slogans, and familiar
symbols or designs, and listings of contents or ingredients. Another
category that is not protected by copyright includes works with no
original authorship such as tables and lists of public information, or
standard lists of information. A work must have a tangible, recordable
form or it is not eligible for copyright. Thus, ideas, procedures, systems,
principles, concepts are not eligible for copyright protection.

It is not necessary to register a copyright to receive protection.


Publication is not a prerequisite either. You are protected under
copyright law “from the moment the work is created,” (from the FAQs),
and the Copyright Office need not be involved for you to receive
copyright rights. There are, however, distinctive advantages to
registration.

You will need to register if you want to bring a lawsuit against someone
who is infringing on your copyright. If registered, you may be entitled to
both statutory damages and attorney’s fees in successful litigation. As
long as registration occurs within five years of publication, your
registration is considered prima facie evidence in the courts.
Another reason to register your work is to create a public record of your
copyright, and to receive an actual document to support your claim. You
do not have the legal precedent of original copyright unless you file an
application and receive a Certificate. Though you are protected once
your work has tangible form, whether published or not, the physical act
of registration involves the creation of a dated certificate validating your
claim.

The U.S. Copyright Office is the only place your can file an application
and receive a Certificate of Copyright. Applications are available online
at the Library of Congress, Office Of Copyright (see Recommended
Contacts at the beginning of this chapter), in some public libraries, and
in some reference books. To avoid confusion, call the Copyright
Office’s 24-hour forms hotline at 1-202-707-9100, and request an
application by mail.

To register, include your completed application, a non-returnable copy


of your work, and a non-refundable deposit of $30. A Certificate of
Copyright can take a number of months so don’t expect a response
immediately. Depending on how busy they are in the Copyright Office,
plan on 6-8 months before you receive anything.

The effective date of a Copyright Registration is the date the Copyright


Office receives the application with the attachments listed above. The
Office receives more than 600,000 applications every year. If they need
more information, a staff member will call or write you. Though it may
takes months to receive communication, you will either receive a
Certificate of Copyright bearing your filing date or a letter explaining why
your application was rejected.

Effective March 1, 1989, the use of the copyright notice, Ó, is no longer


required under U.S. law. The notice is still useful, however. It informs
the public that the work is protected by copyright, it identifies the
copyright owner, and lists the year of first publication. This date can be
important in the event the work is infringed upon because it establishes
copyright in writing. With copyright notice, the other party cannot claim
innocent infringement.

Use of the copyright symbol is the choice and responsibility of each


copyright owner. It is not necessary to get permission from the
Copyright Office, or register with them to use the symbol. Everyone has
seen the copyright symbol, but in case you do want to use it without
registering, there are three important components:

1. The copyright symbol, the letter “c” in a circle.

2. The year of publication.

3. Your name, or the name of the person who holds the copyright claim.

Example: Ó 2000 Mary J. Smith

According to the Copyright Act, if you publish certain works in the United
States, and maintain exclusive right of publication of that work, you are
legally required to deposit in the Copyright Office, within three months of
publication, two copies of your work for the use of the Library of
Congress. This is called the “Mandatory Deposit,” and it applies to most
published works. It is not necessary for you to register your work or
receive a Certificate of Copyright. You can, of course, use the symbol,
as explained above. You satisfy the “Mandatory Deposit” requirement
by applying for a certificate, and with the application for certificate you
are required to deposit only one deposit of your work.

Copyright protection endures longer today than ever before. Since


January of 1978, the term has been the author’s life plus 70 years after
the author’s death.

Patents

Patents are the third form of intellectual property covered in this manual.
According to the PTO, patents give the patent holder “the right to
exclude all other parties from making or manufacturing, using, or selling
the invention within the United States, its territories and possessions.”
Once a patent examiner determines the invention is new and unique
and bears no resemblance to any patented invention, the United States
Government issues a Patent to the registrant.

Every request to patent an invention must meet three basic criteria:

The invention must be useful. It must have utilitarian value and


represent an improvement or some totally new process.

The invention must be novel or new. It cannot resemble other


inventions substantially. If the invention has appeared in print media
anywhere in the world one year prior to your application, you can’t get a
patent. You cannot begin to market a product and apply more than a
year later for a patent.

The invention must be non-obvious. This means that the invention is


more than a mere change of materials or creating something in
existence in a different size. Non-obviousness refers to how the Patent
and Trademark Office views the invention. If the similarity to something
existing is obvious, you fail to meet the third criteria.

The PTO issues three kinds of patents. Patents are not issued for
ideas. A patent application must contain at least one, if not several
drawings, to scale, of the invention. The three kinds of patents are:
Utility Patents - “for any new, useful, and non-obvious process,
machine, composition of matter, or any new, useful, and non-obvious
improvement of the above.”

Design Patents - “for new, useful, and non-obvious ornamental design


for an article of manufacture.”

Plant Patents - “for any distinct or new variety of asexually produced


plants.”

As of June 8, 1995, the term of utility and plant patents was extended to
20 years from the date of application. Design patents are effective 14
years from the date of application.

The issuance of a patent grants the patent holder the right to exclude
others for making, using, or selling the invention. However, receiving a
patent does not automatically give the patent holder the right to make,
use or sell the invention. If you invent something, and someone else
patents an improvement, you cannot sell or manufacture your invention
without infringing on the new patent.

There is a mystique and aura surrounding receiving a patent. It by no


means guarantees that you are going to make any money with your
invention. You can spend a great deal of money on patent lawyers to
get that piece of paper. The PTO issued 88,793 patents in 1987. Their
estimate is that only about 8% of those patents would go into
commercial production. Yet, U.S. citizens spend between $8,000 and
$15,000 to get the “deed” that bestows patent holder status.

The saddest truth, however, is that patents don’t provide you with any
real protection. If someone copies your idea and begins producing it,
your only recourse is to go to court and endure lengthy and enormously
expensive litigation. The Patent Office is not a regulatory or policing
agency, and they won’t even guarantee your patent. 80% or more of all
patent infringements cases that go to court are overturned or ruled
invalid in court.

Essentially, you can anticipate years of fighting a losing battle and


wasting another fortune to protect the piece of paper that cost your first
fortune. While you are battling the legality of your patent, the infringer
and anyone else can mass produce your invention. There is nothing you
can do to stop them. If you are one of the 80% who lose, they continue
and you have no recourse or compensation for lost time and money.
Meanwhile, your invention, which you might have successfully produced
and marketed had you gone into production without the patents, is now
in the hands of others.

Of course, you are the only one who can decide whether pursuing a
patent is logical and reasonable. After all, if no one attempts to infringe,
you have 20 years to produce your patented product without any
competition.

Carefully consider the statistics. The process of getting your patent can
cost a bundle. Once you get it, you cannot stop another party from
copying you unless you are willing to initiate and endure a very long and
costly legal battle. Once in court, you are four times more likely to see
your patent claim overturned than stopping the infringement.

Receiving a patent to frame and hang on your wall is indeed glamorous


and impressive. However, you could be far more successful bringing an
invention to life by putting your money into manufacturing the product
and getting it into the hands of the end user, the consumer. Unless you
have good reason to be certain that the profits in marketing the
invention will substantially exceed the costs of getting a patent, you
should seriously consider and evaluate the merits of pursuing the patent
process.

You can file an application for a patent yourself. Remember, this


process will take quite a bit of time. The process is called PRO SE.
According to the PTO as many as 1 out of 5 of all patents are filed PRO
SE. You must be able to prove your invention is novel, so you will have
to conduct an extensive patent search using the Patent and Trademark
Office’s patent database.

You can search patents online at the PTO website, or go to one of the
Patent and Trademark Depository Libraries. You can find a list of all the
Depository Libraries at the PTO Website by clicking on “Local sites.”
Some states have several Depository Libraries. Check recommended
books and Websites at the beginning of this chapter for more
information and resources on filing a patent yourself.

Most of the thousands of dollars paid to file patents are spent on patent
attorneys. The actual fees for filing depend on the type of application,
the complexity and number of claims, and whether you qualify for a
discount as a small business or individual. With or without an attorney,
you will still need to pay all fees. The average cost is between $400
and $1,000. Also, Utility Patents have anniversary dates which require
maintenance fees: after 3 ½ years, 7 ½ years, and 11 ½ years.

Once you file a patent, the application is assigned to an examiner who


is an expert in a field of technology related to your patent. The examiner
studies your cited references, and researches related patents and
technical literature to determine whether or not you have a valid claim
for a patent. This examination can take as long as two years.

However you choose to proceed with the legal issues you face,
including patents and trademarks, keep a broad perspective of the goals
you had when you first began your business. A patent may be important
and necessary. Registering a trademark clearly is. Other forms and
documents, like incorporating, take time and energy and are important,
as well.
In everything you do, always consider the interests of your product and
your company first. Avoid situations that could result in expensive and
lengthy litigation. Sometimes you have to “take a step back” and
remove yourself emotionally from the decision for the welfare of the
company. Recognize that it is difficult, at times, to separate your
personal needs from the needs of your company.

Thoughtful evaluation aided by the counsel of friends, family, and


associates may point to a position that will save you considerable time
and money. You do have personal needs and desires, but, in the end,
the best interests of the product and the company, are your best
interests.

INTRODUCTION A B C D E F GH I J K L M N O P Q R S T UV W XY Z LINKS
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Recommended Books

1001 Ideas to Create Retail Excitement by Edgar A. Falk - Now in


its 6th printing, this book provides over 300 pages of easy and
inexpensive ideas retailers can use in sales, promotions, customer
relations programs, community events, special events, and more. If
your goal is to get your products into retail, learn some exciting ideas
about retail promotion in this book.

Effective Marketing Management Using Merchandising and


Financial Strategies for Retail Success by A. Weeks, V. Miller-
Mordaunt, M. Perenchio, and D. Metcalfe - This workbook style text
takes you through the development of a seasonal marketing plan. It
can be used for Retail Buying, Marketing, or Financial Planning. The
text includes forms, charts, and assignments.

The Guide to Retail Business Planning: The Complete Handbook


for Creating a Winning Plan for Any Retail Business by Warren
G. Purdy - This book is a popular guide from the magazine Inc. that
was written with step-by-step instructions for creating a business plan
for owners or managers of retail or service businesses. The guide
includes samples of successful plans, and includes a resource
directory to find the information you will need to complete your plan.
Use this resource specifically to plan retail and other aspects of your
Marketing Plan.

Masterminding the Store: Advertising, Sales, Promotion, and the


New Marketing Reality by Donald Ziccardi, David Moin (Contributor)
- Written by the head of a leading New York retail advertising
agency, this book shows you how to identify your best customers,
analyze their buying habits and develop a unique message based on
these findings for both traditional and non-traditional advertising. The
retail market is more competitive than ever. You have to do more
than produce a quality product or service. This book can help you cut
costs and maximize marketing dollars, and bring the right products
and services to customers where they want them

Recommended Websites

www.business24-7.com – Massive Mall offers an extensive


collection of Start Your Own Business Manuals. These are retail
businesses and services that may be similar or related to your
product or service line. The manuals are not “How To” in orientation,
but rather offer key connections to various product/retail/service
areas. They are reasonably priced, with an average cost of $12.95.
Order manuals which interest you at this site.

www.narda.com - NARDA is the North American Retail Dealers


Association, the trade association for retail dealers. Their mission is “
to enhance the ability of independent dealers to build progressive
businesses.” They have an impressive list of services they offer their
members, including: Education, Financial Services, Consultations, a
Credit Union, a Bank Card Program, Retirement Plans, Group
Insurance, Employee Training, Advertising and Sales, and a very
extensive Business Library. Check out the listings for this Library on
the website.

www.retailernews.com - Retailer News offers “creative solutions for


retail owners, managers, and sales people.” The website includes a
cover story (article) with additional Articles available by pushing the
tab on the left menu bar. You will also find Archives, a Search tool, A
“Retail” Forum, Chat Rooms, Links, Web Services and more. The
Marketplace has an extensive recommendation of Retail Books,
Electronics, Videos and more.

www.retailing.com - If you are retailing now, and don’t know about


this website, go there now! If you are planning to put a product or
products into retail outlets, like mass merchandisers, go to this site as
well. Power Retailing has a program to increase your sales. The
Strategic Marketing Plan provides a means to Acquire New
Customers, Turn Merchandise to Cash, Recoup Money You have
Invested in the Business, and Obtain the Highest Possible Dollar
Return. Follow a 12 Step Program to Success with 40 Ways to
Improve your Profit Margin.
Mass Merchandisers are big retailers who often discount their
products. At some of these stores, such as Wal-Mart, Sears, Target,
and K-Mart consumers can shop for free. Others like Costco and
Sam’s Club position their stores as wholesale buyers clubs.
Members pay a yearly fee for the privilege of shopping at their large
discount outlets. Still other mass merchandisers are known as
“category killers.” These giant retailers dominate a specific product
area, such as Office Depot with office supplies, or Home Depot with
home improvement products.

Each is a major corporation servicing hundreds to several thousand


stores. Collectively, U.S. retail is big business, very big business with
total annual sales approaching $3 trillion dollars, according to figures
released by Hoovers Online. These mass retailers are all national or
international companies. Each orders a tremendous volume of every
product they sell. The combined sales of all stores for one “hot”
product may exceed hundreds or thousands of units in a day or a
week.

You are not unlike every other small business owner in dreaming of
ways to secure a contract with a mass merchandiser who will see
your products. $3 trillion (the actual listed figure is $2.7 trillion) is an
almost incomprehensible figure. As a merchant, it is only natural to
want a slice of that pie. Unfortunately, regardless of the product’s
appeal, mass merchandisers rarely take a chance with a small
company or a new, unknown, and untested product. One reason is
that shelf space is at a premium. Another reason is mass
merchandisers usually have their own label and market national
brands.

Once you can demonstrate high sales volume in other areas, your
chances of securing a contract with a mass merchandiser increase. If
you have had your product on radio or TV, in magazines, had a
successful Direct Mail campaign, or sold successfully in catalogs,
they will look more closely. These other marketing efforts can
positively influence a merchandiser’s decision, especially if you have
sales orders to demonstrate demand.

Customers can be very powerful advocates but it is doubtful you


could mount a campaign that would affect the decisions-making
process of a major mass merchandiser without strong sales figures to
validate your claim. Plan a marketing campaign that brings high
visibility to your product, and focus on big retail outlets once other
markets have been established.

Of course, every product is different. There are always exceptions to


customary patterns in business. You do not hurt your chances later
by making overtures now to see what the response will be. Sending a
well-worded sales letter with samples of the product (if economically
feasible) could give you some valuable feedback.

You must be the judge. Spend your time and money where you
believe the effort will be most productive. There is no set or pre-
determined formula. Take all the possibilities that are presented in
this volume, formulate a budget for what you plan to spend, and
begin the task of making your product known and desired.

Another way to begin a marketing campaign with mass


merchandisers is to call and ask for the name or names of
manufacturers’ reps they use for your line of products. Then you can
interview several people, hopefully, and select one who is willing to
work with you to get your products accepted. You will have to pay
this person a percentage of your profits for the accounts they bring to
you, customarily 6%, but you can expect to get regular reports on the
progress of negotiations with the different mass merchandisers.

The best reason to work with a rep is that your time can be free to
pursue other marketing avenues and to maintain the on-going
management of your business. As a manger, the more business
responsibility you are able to delegate to other professionals, the
more time you will have to create and develop every aspect of your
business. From marketing to finances to equipment design, give
others responsibility when possible and appropriate. Challenging
others with responsibility will give you the time to focus where you
are most needed.

Working with a manufacturer’s rep can be an education for you, as


well. You probably have an idea of a price for your product.
Hopefully, you developed your price based on research in the
marketplace and knowing your competition. Reps are in the
marketplace all day, every day, and they will tell you from the
beginning if your price isn’t right. You can adjust the price, or table
the idea of placing it with the mass merchandisers. It doesn’t matter
what the product is made of, or how it’s made. The bottom line is
going to be what the cost per unit is to the consumer. Retailers know
what they want, know what they can sell, and you won’t change their
mind. A rep has an understanding of what mass merchandisers
expect. It is worth your while to get his/her opinion.

Promoting a new product through any marketing channel requires


determination, patience, and persistence. In particular, mass
merchandisers may appear to have little time or desire to view or
discuss your product. Do not be easily denied. If you believe your
product has a place in the warehouses and enormous showrooms of
these huge retailers, maintain your steadfast belief in your product
and its ultimate value to the consumer.
Your conviction is primary to convincing others. Keep your emotions
out of the situation as much as possible, and keep plugging for an
entrée to their world. One of the buyers is likely to budge, give you a
fair interview and listen to what you have to say. Your job is to
maintain absolute certainty with maximum calm throughout the
process.

Large retail and mass merchandisers maintain huge warehouse


showrooms. The public arrives and wanders the aisles, viewing every
item. The industry leaders in mass merchandising are so enormous
because they took business from smaller outlets and retail stores.
Generally, you will find that their size will be directly proportional to
their lack of desire to take on new and unknown products. The bigger
the chain, the more reticent they will be to looking at anything new
from an unknown small business. They have the pick of every field,
after all.

Their concerns may be legitimate to some extent. If they showcase


the products of an unknown company, what guarantees do they have
of adequate supply and consistent quality? What guarantees can you
make that you will provide product 1, 3, or 5 years in the future. Be
prepared to document your position for many large chains. Use your
Business Plan, product orders, testimonials, and other
documentation to support your claim of stability and expected
longevity.

If you do get a contract, be aware that you are at their mercy. Do not
expect them to treat you with common courtesy because they will
wield power in every way. They are mega-giants and your account is
not significant to them. Their behavior is neither consciously rude nor
deliberately demeaning. As an example, payment to you of goods
sold may take months, regardless of your efforts to collect. They may
discount your product without informing you, and leave you holding
the bill for the loss.

Get a detailed, inclusive contract that covers as many foreseeable


situations as possible when you are dealing with any big company.
They will attempt to manipulate you to their advantage in every way.
The harsh reality for you is that they will survive just fine without you,
and they know it.

Before you rush into the agony and ecstasy of landing a sales
contract with a mass merchandiser, you might do well to study and
understand consumer-buying habits. A 14-volume study was
released recently called The 1995 Point-of-Purchase Advertising
Institute (POPAI) Consumer Buying Habits Study. Located in
Englewood, NJ, the Institute is an international trade association
active in legislative affairs that protect the interests of its members.
This extensive study was undertaken with Meyers Research Center
with three major objectives:

1. “To understand the characteristic of consumers’ shopping


trips, and their perception of store ‘shopability’.”

2. “To measure the degree to which supermarket and mass


merchandise store shoppers decide on product and brand
after entering the store.”

3. “To profile the amount of the characteristics of P-O-P


materials present in-store and the extent to which those
materials influence shoppers’ in-store decision-making.”

Data was collected from interviews with 2,811 supermarket shoppers


and 1,399 mass merchandise store shoppers. 4,200 consumers at 28
supermarkets and 14 mass merchandise outlets participated from 7
different geographic regions. The mass merchandisers included Wal-
Mart, Bradlees, K-Mart, and Target. This was the first time these
national chains allowed POPAI to interview on site.

The report showed that in-store advertising heavily influences the


purchasing decisions of consumers. “Shoppers pay attention to
displays, signs, coupon dispensers, sampling-demos, and
announcement activity, recall them, and are far more likely to make
an in-store decision to purchase a product that has P-O-P (point of
purchase) support than a product that does not.” The contention of
the report is that the level of in-store decision-making by the
consumer has increased significantly in the last decade.

When you secure an agreement for a mass merchandisers to market


your product, make sure that your contract specifies how and where
your product will be displayed. Ask for some P-O-P attention for it.
The vast number of choices and the incredible volume of
merchandise available at the big retail outlets overwhelm today’s
shopper. The P-O-P displays, often strategically placed at the end of
aisles, highlight and focus attention on specific products. You want
your contract to specify where your product will be located in the
store, and whether there will be samples, demonstrations, or other
activities to get the attention of the customers.

The POPAI study indicates that three fourths of all brand purchase
decisions are made in the store. This percentage is true at both
supermarkets and mass merchandise stores. Mass merchandise
shoppers tend to drive farther for good value, whereas supermarket
shoppers tend to maintain store loyalty. Mass merchandise shoppers
take time “to consider purchases in their overriding quest for value.”
Profiles of the mass merchandise shopper indicate that they are
young, less affluent, and more oriented toward the family than
supermarket shoppers. They are likely to bring family members with
them on shopping trips. For many consumers shopping is “a
family/social experience, and a clean environment and good service
are as important as value or excitement.”

Mass merchandise shoppers are less likely than supermarket


shoppers to plan purchases ahead of time. As an example, only 17%
of mass merchandise shoppers use a shopping list, compared to
47% of supermarket shoppers. Unplanned purchases in mass
merchandise stores include “apparel, accessories, hardware, craft
and hobby items, infant/toddler wear, greeting cards and related
products, first aid items, toys and sporting goods, food wraps, foils,
garbage bags, candy/gum, magazines, and books.”

Mass merchandise shoppers are more likely to pay by cash than


supermarket shoppers, but they are most likely to pay by credit card.
Consumers who use non-cash methods buy “in larger quantities and
make more unplanned purchases than those that use cash,”
according to the POPAI Study.

The average shopper at both types of store tends to spend more


time than planned and usually goes through the whole store, even
though they know it well. The POPAI Study shows that the average
trip lasts about an hour and the customer covers most of the store
searching for value. Snack and beverage, especially sodas sell well
at both venues. Nearly one third of all mass merchandise customers
purchase “candy, crackers, or some other snack item.”

These statistics offer a clue as to what shoppers are looking for, what
they do when they go shopping at a mass merchandise store, and
what they tend to buy. Though you may have a tremendous product,
consider some of the many other marketing opportunities before you
attempt to convince the big, mass merchandisers to display and sell
your product. The choice is yours, of course. Study your options
carefully, and seriously consider other activities as well.

Below you will find contact information for many of the biggest mass
merchandisers in the United States.

U.S. Mass Merchandisers

American Drug Stores 858 Drug Stores


American Food Stores 817 Food Stores
709 E. South Temple 801-539-0112
Salt Lake City, Utah 84102 801-539-4588
Tim Cogif, Buyer
Company merged with Albertson, also of Salt Lake City, Utah

Big B 384 Drug Stores


2600 Morgan Rd. 205-424-3421
Birmingham, AL 35202 205-425-8339
Paul Bruno, V.P. Merchandising

Bloomingdales’s By Mail
475 Knotter Dr. 203-271-5300
Cheshire. CT 06411 202-271-5321
Andrew Hannen, Buyer
John DiFrancesco, V.P. Marketing

Bruno’s 254 Drug Stores


800 Lakeshore Parkway 205-940-9400
Birmingham, AL 35211 205-940-9568
Lisa Krancq, Sen. V.P. Marketing

Costco (aka Price Costco) 300 Stores


999 Lake Dr. 206-313-8100
Issaquah, WA 206-803-6593
Nancy Griese, G.M.M.
Richard Dicerchio, COO, Exec, V.P. Merchandise

CVS (owns Revco) 1362 Drug Stores


1 CVS Drive 401-765-1500
Woonsocket, RI 02895 401-766-2917
Robert Fiorelli, Sr. V.P. Merchandising
Tom Lane, Merchandising Mgr.
Eckerd Corp. 1707 Food Stores
8333 Bryan Dairy Rd. 813-399-6000
Largo, FL 34647 813-399-6369
Edward Kelly, Sr. V.P. Merchandise
Jeff Joyner, Food Mart Merchandise Group

Fingerhut, Inc. Mail Order Catalog


4400 Baker Road 612-932-3100
Minnetonka, MN 55343 612-936-5411
Richard Tate, Sr. V.P. Merchandise

Great Atlantic & Pacific Tea Co 1002 Stores


2 Paragon Dr. 201-573-9700
Montvale, NJ 07645 201-930-4034
George Graham, Sr. V.P. Merchandise
John Kirk, V. P. Purchasing

Harco Drug 153 Drug Stores


3925 Rice Mine Rd. N.E. 205-345-2400
Tuscaloosa, AL 35406 205-345-4302
Gene Bailey, Director Purchasing, Housewares

J.C. Penney 1238 Stores


6501 Legacy Dr. 214-431-1000
Plano, TX 75024 213-431-4944
Donna Gering, Merchandise Mgr.

K-Mart 2171 Discount Stores


3100 W. Big Beaver Rd. 810-643-1000
Troy, MI 48084 810-643-3085
Dan VanHammond, Merchandise Mgr.
Tom Hoffockon and Reid Mc Intyre

Kohl’s Dept. Store 145 Department Stores


N. 56W. 17000 Ridgewood Dr. 414-703-7000
Menomonee Falls, WI 53501 414-703-6501

Kroger Co. 2153 Food Stores


1014 Vine St 513-762-4000
Cincinnati, OH 45202 513-762-1547
Ron Barclay

L.L. Bean, Inc. 8 Stores/ Mail Order


Casco St. 207-865-4761
Freeport, ME 04033 207-552-2802
Chris Mc Cormick, Sr. V.P. Advertising and Mktg

Long’s Drug Stores, Calif. 328 Drug Stores


141 Civic Dr. 925-937-1170
Walnut Creek, CA 94596q 925-210-6222
Terry Burnside, V.P. Merchandising
Dave Cahoon, Merch. Mgr. Housewares

Montgomery Ward Direct


600 S. Hwy. 169 612-595-3300
St. Louis Park, MN 55426 612-595-3355

Publix Super Markets, Inc. 523 Food Stores


2600 County Line Rd. 941-688-1188
Lakeland, FL 33801 941-284-5535
Bessie Foster, Rick House, Bonnie Nelson,
General Buyers

Revco D.S. Inc. 2167 Drug Stores


1925 Enterprise Parkway 216-425-9811
Twinsbury, OH 44087 216-425-1087
Bruce Schwallie, V.P. Merchandising
Steve Moss, Senior Buyer
Rick Hunziker, Buyer
Rite Aid Corp. 2759 Drug Stores
30 Hunter Lane 717-761-2633
Campbell, PA 17011 717-731-4737
Mary Verbryke, V.P. Purchasing
Gerald P. Cardinale, V.P. Marketing
John Van Bon, Buyer, Housewares

Safeway 1056 Food Stores


201 4th St 510-891-3000
Oakland, CA 94660 510-452-2306
Bob Roitor

Sears 810 Stores


3333 Beverly Rd. 847-286-2500
Hoffman Estates, IL 60179 847-286-8351

Service Merchandise Co. 409 Catalog Stores


7100 Service Merchandise Dr. 615-660-6000
Brentwood, TN 37207 655-660-4329
Jim Brennard, Group V.P. Merchandise
Richard Sellers, Sr. V.P. Mktg & Adverstising

Shopko Stores, Inc. 129 Food Stores


700 Pilgrim Way 414-497-2211
Greenbay, WI 54307 414-496-4165

Spiegel, Inc. 20 Stores/ Catalog


3500 Lacey Rd. 630-986-8800
Downer’s Grove, IL 60515 630-769-3100
Robert E. Conradi, V.P. Merchandise

Super D Drugs, Inc. 115 Drug Stores


4895 Outland Court Dr. #101 901-366-1144
Memphis, TN 38118 901-367-3750
Carl Wheeler, V.P. Purchasing

Target Stores 673 Mass Merch. Stores


33 S. 6th St. 612-304-6073
Minneapolis, MN 55402 612-370-5660
Mike Fadell

Walgreen 2132 Drug Stores


200 Wilmot Rd. 847-940-2500
Deerfield, IL 60015 847-940-2804
Harry A. Friedman, DMM Housewares
John Wood, Buyer

Walmart Stores, Inc. 2133 Stores


702 S.W. 8th St. 501-273-4000
Bentonville, AK 72716 501-273-1986

Winn-Dixie Stores, Inc. 1175 Food Stores


5050 Edgewood Ct. 904-783-5000
Jacksonville, FL 32254 940-783-5558
Dennis John, Mgr. Purchasing and General Buyer

INTRODUCTION ABCDE F GH I J KL M N O P Q R S TUV W XY Z LINKS


NEWSPAPERS & MAGAZINES a
mm

N
Recommended Books

Checklists for Print Media Advertising, Planning and Buying: 13


Basic Checklists: 195 Specific Things to Check When Planning
and Buying Advertising by R.L. Ehler- Mr. Ehler brings his extensive
background as an ad agency co-owner, media planner and buyer,
advertising manager, magazine and newspaper editor, and market
planner to each chapter, covering such topics as Budgeting,
Objectives, Developing A Media Mix, Performing a Media Analysis,
Scheduling the Advertising Message, Follow-up, and Monitoring
Performance

Recommended Websites

A number of Websites provide assistance and guidance in placing


advertising in newspapers and magazines. Below are just a few you
can visit to see if what they offer suits your needs.

http://ajr.newslinks.org - The American Journalism Review links you


directly to the Websites of the major metropolitan newspapers in the
U.S. serving populations of 1 million or more. The site also lists the top
50 magazines by subscriptions.

http://globaltower.com/e/exporter/benefits.html – You can


advertise your products with The Exporter newspaper and reach
importers in 120 countries. Each issue has 40,000 copies in English
and Spanish with pass-along readership estimated at over 100,000.
They guarantee you will get leads, or they will run your ad for free.

www.888allmags.com - This site offers you up to 85% off the retail


price on over 950 magazines for new subscriptions, renewals, or gifts.

www.advertisingresults.com/usrpages/hanson.htm American
Classified Services offers a national advertising discount program that
allows you to place your ad in multiple publications for as low as $1-$2
a publication. With one order, and one payment you can be in multiple
states in multiple publications.

www.chicom.net/resources/press.html The Chicago Computer


Solutions, Inc. website provides a link to all the state press
associations (and Canadian Community Newspaper Associations).
Link to these sites and place your ad with up to a 70% savings.

www.cnpa.com - California Newspaper Publisher’s Association lists


all the other state press associations and other links.

www.discountadvertsing.com - A cost-effective program for


advertising by states, not in the major newspapers, by low-cost
advertising that reaches thousands for a small price.

www.enews.com - At Enews.com “try any (magazine) title—FREE


for 90 days, then lock in an incredibly low price subscription,” Over 900
magazine titles with the deepest discounts on the Web.
www.gallery.uunet.be/internetpress/American.htm

North American News offers newspapers listings and magazines


which are listed alphabetically, or find by quick search; lowest prices
on the web…guaranteed.

www.gebbiepress.com - The All-In-One Media Directory offers


complete company data on US Radio and TV stations, Daily-Weekly
Newspapers, Trade-Consumer Magazines, State Press Associations
and Newspaper Associations. They have over 23,000 contacts in their
database which is not expensive to purchase. Order a free sample
disk.

www.jenntech.com /newspaper - Sells a list of over 40 regional


agencies that place discounted classified ads in hundreds of papers,
reaching up to 2 million people. In addition to The Complete Agency
List, you get a bonus list of Canadian agencies which place ads in over
600 newspapers, a national magazine discount advertiser for both
display and classified ads, and the best discount advertising program
for USA Today. Buy the total package for a nominal fee.

www.magazinedata.com - On the homepage of this site are phone,


fax, and links to Magazines and Ad Agencies for an easy way to
contact hundreds of publications.

www.mediafinder.com - Media Finder is a subscriber based “media


research service with information on over 100,000 publications and
catalogs including 35,000 magazines, journals and tabloids; 24,000
newsletters; 11,000 newspapers. This is one of the most extensive lists
anywhere of print publications.
www.magazineremnants.com - Register as a buyer with
MagazineRemnants .com to access low cost magazine advertising
space. Listings are offered to members on a first come first serve
basis, and are posted sometimes several times a day. “Special
opportunities if you seek low rates and are flexible about ad sizes,
issue dates, regional opportunities and specific magazine titles.”
Custom listings are available for your specific needs at greatly reduced
prices.

www.newspaperlinks.com - Search by state, then by city or


newspaper name to locate a newspaper in the U.S or Canada. Search
for classifications availability in different newspapers. This is a good
place to begin your research on newspapers, especially if you want to
know about specific ones.

www.newspapers.com - Reference the world’s newspapers here,


including special pages for trade journals, classified advertising
publications, college and university newspapers, industry news, foreign
newspapers by country, state press publications, specialty publications.
The website offers more than 17,000 links.

www.papers.com - “The premiere Newspaper Advertising Agency on


the Web dedicated to helping you reach more customers by providing
newspaper advertising programs for any size budget.” Papers.com
has many packages to fit different advertising needs.

www.thriftynickel.com/flash/national_main.html Thrifty nickel


papers also known as the Penny Savers began in 1970. Today, there
are over 100 magazines providing effective and affordable advertising.
Millions of people read them each week.

www.tradepub.com - Trade magazines are always free to qualified


professionals. Individual publishers make the decision whether you are
qualified to receive their publication free of charge. You can always
request a sample copy. “Finding and subscribing to quality professional
magazines has never been so convenient and easy.”

www.usnewspapers.net - U.S. Newspapers is “America’s Discount


Newspaper Advertising Network” with savings as high as 80% off
newspaper advertising open rates. Rates available for multiple
newspapers on a statewide basis, but not for individual newspapers.
Prices vary so visit this Website, read the guidelines and call them for a
quote.

Newspapers

More money is spent annually on newspaper advertising than any


other medium, and every year the amount spent increases.
Newspaper advertising has a number of advantages. Depending on
what you offer, how many times your ad appears, and where you run
your advertisement, it may be seen by hundreds, to thousands, to
hundreds of thousands, possibly even millions of people.

In terms of exposure, newspapers are relatively inexpensive. According


to the Audit Bureau of Circulations (ABC FAS-FAX), The Wall Street
Journal was the leading daily newspaper in circulation for the six
months that ended in September of 1997. The average daily circulation
was 1,774,880 million. USA Today followed at a close second with
1,713,674 million. Trailing behind these two national newspapers were
the major metropolitan newspapers led by The New York Times and
The Los Angeles Times.

Unfortunately, exposure does not always equate to sales. To be


successful in business you want people to know about you, read your
ads and buy your products. As a small business, you can spend a lot of
money on display ads and get plenty of exposure, but pick up only a
few customers.

There are a number of reasons why even the best advertisement fails
to bring about substantial sales. An advertisement must be so
compelling that it catches the reader’s attention and literally ignites in
him/her the desire and decision to buy the product right then.

Your advertisement needs to propel the reader to action so that he/she


will get to your point-of-purchase. You want potential customers on
your turf, either phoning your office for more information, or asking for
the discount you offer, or placing an order for a limited time offer. If
you have a retail outlet, you want people coming in with your discount
coupon. Be sure to get an 800 number into your phone lines if you
advertise beyond your calling area. People will not call to buy
something and pay long distance rates.

An advertisement may fail to draw a big response because your


product or service is not suited for the general population, which is the
audience of most newspapers. Any advertising is going to be more
powerful if you know whom to target. If your product appeals to a broad
cross-section of the general population, newspapers may be a good
medium for you. If your product or service is best suited for a particular
demographic group, or is a niche product, you are likely to find more
success using specialized magazines as your vehicle in the print
media.
As you know, newspaper readership includes virtually everyone. The
appeal is broad and general; cross-cultural; multi-aged; and meets the
varied interests of a tremendously diverse population with different
education, and background. Though some may be interested in
carefully reading through the newspaper everyday, most people only
scan it, or look at certain sections. Catching the reader’s attention,
getting him/her to read your entire ad, and make the firm decision to
buy, is a complex effort.

When you place a display ad, you are competing with other
advertisers for the attention of readers. Some of the other advertisers
may even be your competition. Just getting noticed is a big task for a
small display ad. Turning this casual or rushed, lackadaisical or harried
reader into a buyer from a relatively small, sometimes poorly printed,
two-dimensional newsprint advertisement necessitates a special offer.

One way to know if your product or service is right for newspaper


display ads is to study what your competition is doing. If they are
advertising in your local newspapers, or in large metropolitan
newspapers, or in a series of both, chances are they are getting
results. Make your advertisement exciting and different enough to
catch potential buyers and get them to call you instead.

Remember, almost every family gets a newspaper, either by home


delivery or from a newsstand. People expect several items in their daily
newspaper, and advertising is one of them. In fact, people buy certain
newspapers just for the grocery coupons and special sales
advertisements from department stores and other stores and retail
outlets.

Newspapers will sell to you, and you can buy as much space as you
want to purchase. The price is by the column inch. As you know,
advertising appears in almost every section, and classifieds advertising
is in a separate section. You can purchase a full-page, a ½ page, or a
¼ page space for a regular display ad or for an “advertorial” which
offers information or editorial content in addition to an advertisement. In
either case, you are going to pay a rate based in the column inch. If
you are determined to place newspaper advertising on your own, check
your paper for a few days to see what size you want to purchase.

In addition to the availability of virtually any size ad, newspapers offer a


great deal of choice on how you want your ad to look. You can use
color, pictures, or diagrams of your products. You can even use a
multiple page format with promotional items like coupons, discounts,
contests, or mail-in certificates.

Newspapers are more permanent than other media like radio or TV,
but not as permanent as magazines. Some people read through
newspapers at their leisure and often look through them a second time
to find an article or something of interest. It is a good idea to have
multiple exposures of your advertisement using the same format, with
only small changes or additions. You want readers to become familiar
with you from the appearance of your ad. As long as you are getting
responses, placing the same ad multiple times lends credibility to your
company and your offer.

Most people discard newspapers every day or every few days.


Therefore, budget an advertisement that you can run consistently two
or three days a week for a period of time. You want to project an image
of being a permanent, stable, and dependable business. Readers do
notice regular advertisers. Someone who only glanced at your eye-
catching advertisement might take the time to read it or even look for it
another day.

Another advantage to newspaper advertising is that usually you can


make last minute copy changes up until the time the paper goes to
press. Once the paper goes to print, or is on the presses, though, you
cannot make any additional changes.

Your advertisement can appear within a matter of days from the time
you submit it, depending on your choice for a first publication date. In
addition, responses to newspapers advertising can be immediate.
People read the offer, order right then, later in the day, or the next day.

Keep in mind when designing your advertisement that newspapers are


generally local in nature. People read the daily newspaper to find out
what is happening in their community, and much of the advertising is
from local companies. If you live near a major metropolitan area,
consider using your newspaper advertising to target the local market.
There may be millions of people within your own geographic area.
Many newspapers use advertising inserts in their newspapers. Quite
often these are light pastel, 8 ½” x 11” sheets with an advertisement
and offer. The advantage of inserts is that you get stand-alone copy
that most people will handle, see, and read. An insert is likely to literally
fall into just about everyone’s hands when they open the paper. If you
select this option, you pay a per sheet inclusion price for the total
circulation of the newspaper. In a very large area, you may be able to
exclude some areas to keep your costs down.

Sometimes you can get the sheet pre-printed and delivered to the
newspaper offices where the carriers or other personnel insert it.
Whether you use an outside printer, or have the newspaper print your
insert, you will still have a per sheet charge based on the total
circulation. Before you rush to save a few nickels by hiring an outside
printer, calculate the cost of printing and delivery of the tens to
hundreds of thousands of copies by a small offset printing firm.

Very few people read the entire newspaper on a daily basis. People
read selective sections, and occasionally skim over others. The fact is
that even if you run your advertisement for a number of consecutive
days, only a percentage of the total potential circulation population is
going to see or read your offer.

No one can really tell you how many people will see or read your
advertisement. Just because a reader opens the page where your
advertisement is displayed, does not mean he/she will read your ad.
Just because someone reads the ad, does not mean he/she is paying
attention enough to make a decision to purchase either at that time or
in the future.

Using inserts is one way to overcome a major problem with newspaper


advertising, that is, the “clutter effect.” At a certain point, the
abundance of advertising leaves readers too overwhelmed to look at
any advertising at all. The “clutter effect” is compounded visually by
poor reproduction quality in the printing of some newspapers. Be sure
to check into the quality of the color reproductions for a number of days
prior to your publication date before you pay any additional cost for
color. Even then, there is no guarantee you will get good quality the
day your advertisement appears. Newspapers are mass-produced
daily and the quality can vary substantially.

A much less expensive form of newspaper advertising is in the


classifieds. If you don’t want to invest the funds in a display ad
campaign, consider running an advertisement for a FREE offer in the
classifieds. Remember that your goal is to sell your product or service.
If you can catch the attention of the crowd, or a few in the crowd, and
get them to call or write you, then you are one step closer to making a
sale.

Selling your product or service through the classifieds is not


recommended. No one will respond, and you will just waste your time
and money. However, if you follow the formula for writing a good
advertisement, and offer a FREE report, a FREE consultation, a FREE
cassette or video tape, you may be surprised by the calls. There is no
way of knowing for sure or guaranteeing any response. There are so
many variables. Every business is different. The appeal is different.
The product is different The approach is different. An offer in the
classifieds is likely to catch attention if your offer has value to the
people reading through the ads.

You can hire agencies or purchase a list of agencies that place


classified ads in newspapers for less than $1-2 per paper. Check the
Recommended Websites at the beginning of this chapter. You can also
contact the Press Associations of each state. These organizations
have free space available to them in different newspapers in their state.
Often, they resell all the spaces at a tremendous discount. Besides the
discount that is obviously advantageous, you can place your
advertisement in hundreds of papers per state with just one phone call
to the state newspaper association. Several sites in the Recommended
Websites list State Press or Newspaper Associations.

Call several of these Press Associations to get an idea of what is


involved. What they offer both in terms of price and publication space
will vary from state to state. Ask each one to mail or fax you the list of
publications they represent with circulation figures for each publication.
Ask them if you can place one classified ad with them for just one of
their publications, and if there is a flat rate for placing just one
classified.

Find out if there is maximum number of words or lines allowed per ad,
and if there is an extra word charge. Ask them if they can bold
headlines. Ask if they work with other state Newspaper Associations
and if they can place your ad in other states for you. Ask if they have a
discount available for running more than one ad at a time, and if they
offer display space or just classified space. You will also want to know
their deadlines, where you send the ad, and how they want payment.
Once people begin to call from your ad, be sure to get their name,
address, phone number, and the best time to call them back. If you
have sales staff, have them speak with potential customers when they
phone in. Have them get the personal information, and set up a time for
a return call after they receive the free information. If a free
consultation is involved, schedule it right then, and make a note to call
the day before with a reminder.

The basic formula to follow in writing an effective ad, whether as a


display ad or classified ad is called the “ AIDA formula”. Copywriters
have used this formula for years, with great success for all advertising
copy including sales letter, sales materials, and Press Releases.
According to some, unless you follow this formula, you will not receive
a satisfactory response to your advertisement.

1. Attention. The first object is to catch the reader’s attention. Do


this with words, graphics, pictures, drawings. There are power words
you can use. If you have an interesting or powerful image, use that.
People are easily drawn to pictures. Attention applies to your headline
in particular. You want to grab the reader and pull him/her in.

2. Interest. Go right into the benefits, especially your unique


selling proposition, your USP. Sell them on why you are better,
different than anyone else. Use bullet points or numbers or short,
concise and highly active words to hold their interest and keep them
with you.

3. Desire. You are the best. They believe you. Now offer the
irresistible that seals the deal. Make an offer they absolutely cannot
resist, a free consultation, offer a free booklet of information, a gift
certificate or coupon good for the purchase.

4. Action. Ask for the order. Ask the customer to take action. Ask
for the Sale. “Call Now!” Call Today, Limited Time Offer!”

This formula is a tried a true method for writing advertising that works.
Practice writing ads using the AIDA technique by cutting out classified
and display ads from your newspaper. Just clip some randomly, read
them over, and apply the principles. Use a pen to cross out
unnecessary words and a bold highlighter to emphasize words and
phrases that follow the AIDA method. List the words and phrases that
appeal to you for use in your own ads. If you take the time to rewrite
the ads more powerfully, you will get an idea of the flow of a strong ad.
Any newspaper has plenty of copy waiting for you practice your
knowledge and skills.

Some other factors that make for a strong newspaper advertisement


include:

1. Make sure the headline is strong and bold. Pick your words
carefully so that statement pulls people to the ad. You want to draw
attention to yourself.

2. Make sure your phone number is strong and bold.

3. The body of the ad gives the benefits. Everyone and everything


has features. Benefits sell because they make people feel good.

4. Keep paragraphs short. Make every word count. Use words and
phrases that excite.

5. Show the product in action, if possible. A picture “is worth a


thousand words.” Use people in the picture or use a picture of people
using the product. People add human interest. Readers want to see
what they are going to get.

6. If your price is a selling point, make sure it is clear and bolded.

Test your offer in several small publications before you spend a lot of
money. You want to know that your ad has draw, that people are
reading it, and that you will get responses. See if your competition is
using print media for advertising, and where they are advertising. This
investigation may take some time and effort, but you can learn from
what others already know. Check the newspaper carefully every day of
the week for more than one week to see what advertisements appear
in which sections.

Magazines
Much less money is spent annually on advertising in magazine than in
newspapers. In fact, of the media tabulated in 1996 and 1997 by the
Newspaper Association of America, magazines ranked 6th in overall
expenditures of advertising dollars. For media advertising, only cable
Television ranked lower in actual dollars spent.

Magazines depend on advertising as a major source of revenue.


Whether you investigate magazines on your own or join a discount
magazine placement service online, keep in mind that magazines are
interested in getting your advertising dollars. Be cool, be confident, and
be persuasive about what you are seeking.

Newspapers rarely deviate from their published rate cards. There are
always advertisers waiting to get published, and department stores and
grocery stores run regular specials. You can negotiate with magazines,
however. You may not get the price reduced, but you can get other
special amenities, and depending on the publication, you might get a
month free. Make the effort to get a special arrangement.

The largest circulation magazine in America is the NRTA/AARP


Bulletin with 21.1 million subscribers followed by Modern Maturity with
21 million subscribers. Both of these magazines focus on the interests
and needs of the older population. Reader’s Digest posts a subscriber
base of 15.1 million, and TV Guide comes in fourth. Of the top 50
magazines by circulation nearly half are online. If you want to see the
complete list of the top 50 magazines, go to http://ajr.newslink.org

Magazine advertising has some unique features. Magazines offer


highly specialized subject matter. Since there are literally thousands of
magazine categories and sub-categories, and close to 15,000
magazines published in the U.S., target marketing is both easy and
effective. If you have been working within an industry, you are probably
aware of the magazines and journals that cover that field. If you are
new in the field, finding appropriate publications is easy using
alphabetical lists of published magazines located on the Internet and at
your public library.

Magazine advertising also involves display ads and classified sections


as you know from reading them. Depending on the circulation and
subject matter, display ads and classifieds can both be expensive. The
Internet has websites that offer you several months of FREE issues to
many magazines. Other websites allow you to subscribe to as many
magazines as you want, with the first month free, and the option to
cancel. Take advantage of these offers to compare different
publications.

You know that magazines are much more visually appealing than
newspapers. Their slick, glossy paper and bright colors highlight
products. Magazines are also more permanent. They sit on coffee
tables, and in dentists’ and doctors’ offices for months. People turn to
them several times for relaxed and casual reading.

A proponent of newspaper advertising would say that magazines can


not deliver the readership of a major metropolitan newspaper. Which is
true. However, because the audience can be specifically targeted, you
are likely to reach a great number of truly interested customers,

Contact each publication separately to inquire about their advertising


rates. You can write or email for information, or request a media kit.
Narrow your choices to ten or fewer and call the number listed in the
magazine. A receptionist is likely to refer you to a salesperson, or take
your information herself. Once you begin speaking with someone from
the magazine, keep in mind that they are anxious to develop you as a
client. There are thousands of magazines published every month, and
all of them are looking for advertisers to support them.

After you have given your mailing information, ask the representative if
they do “P.I.” or Joint Venture arrangements with advertisers. “P.I.” is
the abbreviation for “per inquiry”. In a Joint Venture or a P.I. deal, the
magazine or other media including TV shopping, radio, or newspapers,
advertises your product at no cost to you for a percentage of the
profits. What often happens is that the media company buys the
product at below wholesale from you, sells it above retail, and keeps
the difference.

The benefit to you is obviously a huge boost in sales. What you need to
do is evaluate whether the resulting sales will improve your cash flow
position. Too often product and service providers equate brisk sales
activity with increased cash flow until they see the income statement
for the period, and realize that profits were negligible. Successful
marketing begins with understanding of your cost per unit. With
services you do need to calculate your overhead and other costs.
Whatever you do, do not sell a product until you know what it costs you
to produce, unless you expect chance and luck to make you money in
business.
The goal of every business is to make money providing a product or
service of value. The only way you can know if the public or your
targeted market agrees that the product has value, is to market it to
them and see if they purchase your offer. The only way you can
determine whether selling this product is worth your time is if you make
money doing it. Otherwise, you are operating a charitable
organization. The only way you can make money is to understand
what your product costs you, so that you can build in profit to make the
whole endeavor worth your time.

Generally speaking PI deals work when you have four or five times
your cost in profits. Only PI deals with magazines, catalogs, and home
shopping networks require these large margins. The advertiser wants
profits too. Though it sounds like a huge figure, a number of
manufactured consumer products do have these margins. If you have
two or three times your cost as the final price, you have to realize that
most of your profits in a PI deal will go to the advertiser.

As an example, you have a $12 cost and you feel the product can sell
for $36. That is a $24 profit per unit, a pretty healthy profit. However,
to seal a “P.I.” deal, the magazine is willing to buy it for $24, but wants
to sell it for $48, putting you out of the league with your competition. If
you were to Direct Market your product to targeted customers through
mail and phone, or go to an Expo, or place a newspaper display ad, the
profits would be yours (minus the cost of the advertising.)

Consult sample legal (Chapter L-Legal) agreements to decide what you


want from such an arrangement. You can establish a minimum
number of units a media company can purchase at one price. If they
want fewer, they pay more per unit. You can establish a minimum price
they can sell your product in their market. They cannot sell it for less.
You want to protect other markets you have established, both from
sales your staff creates (inside sales) and other venues on the open
market. You don’t want to undercut the efforts that are already ongoing.

Negotiating “P. I.” deals and other forms of media joint ventures is not
easy. If you believe you have a beneficial product for the readership of
a magazine, be very persistent and insistent. The magazine’s business
is publishing a magazine. They depend on advertisers to support their
production expenses. Therefore, the likelihood of their promoting a
product is slim. They are more than willing to take your money to
advertise.

It is not easy to negotiate a “P.I.” deal unless you have comfortable


profit margins. Even then, not every advertiser is willing to consider
arrangements. They are not standard, but they are negotiated. Your
call is for information, and so you want to know if they make “P.I.” or
joint venture arrangements. If you do begin to negotiate one, visit your
attorney for advice and suggestions. Tell him what you want from the
arrangement and let him guide you.

Before your friendly magazine rep hangs up, ask about writing an
article for the magazine. Get the deadlines for submission, the name of
editors, and other details like number of words, limitations on space for
drawings and pictures.

You are an expert in your field as much as anyone else. Write, or have
some one assist you in writing an article and submit it to your first
choice of potential magazines that might publish it. Give them time to
respond, but tell them you plan to submit it elsewhere. Consider writing
a series. If you can get an article published, find a way to mention your
company and your product or service. If nothing else, put the
information about your company in the biographical information about
you.

If you find that the display ad costs in the magazines of your choice are
too high for your budget, place a classified ad offering using the free
report or free consultation concept explained in the newspaper
section. Even the cost of placing a three-line classified ad in some
magazines will astound you.

Another consideration is to locate one or more trade magazines within


your field or industry. These are regular, subscription magazines some
of which you may be familiar with already. Writing an article for these
publications is highly desirable for creating an awareness of your
company and products within the industry. Subscribing is also a good
idea because you may get ideas of markets to target with your
products.

Reproduce any article you write as a pamphlet. Take copies to trade


shows, include them in your Direct Mail letters, and in your media or
press kit. Have copies available at the front desk, and distribute them
when you have an Open House. Ask your printer to reproduce them so
they look like they are right out of the magazine, in full color. Double
check competitive pricing on the job, though, because color
reproduction costs can be very expensive.
Re-producing articles you write or articles about you is good public
relations. It is difficult to evaluate how the monetary expenditure affects
sales. You build belief in you as an authority or expert and credibility in
the product and company. You have numerous uses for your money,
so be more sparing about distribution if you feel the cost is excessive.
However, invest some money and have the information available. The
day will come when you will be very glad you did.

Newspapers and magazines represent the major opportunities for


advertising in print media in the United States. Most people read
several publications monthly, at the very minimum. Most newspapers
are available daily and most magazines are available monthly.

Advertising in these publications is a tenuous proposition unless you


have thousands of dollars with which to experiment. The cost for just
one display ad can be thousands of dollars. Placing the ad without
knowing whether readers will respond is a highly expensive and
speculative experiment. Placing just one ad makes little sense because
it is the repetition of advertising that makes it work.

A display ad in a major metropolitan newspaper could cost thousands


of dollars for one advertisement for one time. You can ask for rate
reductions or special arrangements, but generally these privileges are
reserved for the publication’s regular customers. Before you invest your
money in a display ad in any large metropolitan newspaper or national
syndicated magazine, investigate discount advertising opportunities
using agencies or state press associations.

Writing articles of news or interest and submitting them to both


newspapers and magazines can establish brand recognition for your
company or product. Depending on your product or service, newspaper
and specialized magazines might be the perfect venue to introduce
your product.

You do have a number of options. Very expensive advertising in the


major metropolitan newspapers and the top magazines will be there for
you at a later date once you have perfected your advertisement and
your offer and once you know your ad can turn readers to buyers to
make that staggering investment pay off.

INTRODUCTION AB CD E F GH I J K L M N O P Q R S T UV W XY Z LINKS
OUTDOOR ADVERTISING: SIGNS &
a
mm BILLBOARDS

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Recommended Books

Advertising Without an Agency: A Comprehensive Guide to


Radio, Television, Print, Direct Mail, and Outdoor Advertising
for Small Business by Kathy J. Kobliski – Books on Outdoor
Advertising are few to none, but Ms. Kobliski covers the subject well
in one chapter devoted to Outdoor Advertising information. The
information on the other subjects is also very useful to add to your
library.

Outdoor Fact Guide 1998 - published by the OAAA, this guide


provides “facts, figures, and resources to anyone considering the
medium, a simple, handy, tri-fold reference guide. Contact the
Outdoor Advertising Association of America, at 202-833-5566

Planning for Out Of Home Media - published by the Traffic Audit


Bureau in 1995. This is the third edition of a comprehensive guide to
planning and buying out-of-home media. Includes mechanical
specifications and color illustrations. Contact TAB at 212-972-8075

Recommended Websites

http://advertising.utexas.edu/world/Outdoor.html
The Department of Advertising at the Univ. of Texas at Austin offer
links to many Outdoor Advertising Companies’ Websites with the
city and state noted. Find a company near you to begin your
investigations.

www.d-net.com/min2/min41855.html - Get the Buyers Guide to


Outdoor Advertising by annual subscription here. The Guide lists
companies with their addresses, phones, contact personnel,
population served, number of advertising posters, and whether the
signs can be illuminated. Phone (212) 789-1400 to reach the
publisher for more information.

www.oaaa.org - The site of the Outdoor Advertising Association of


America. You can visit their Website or email them at
info@oaaa.org (remove parenthesis). Ask them to send you the
names of some member companies located near you.

www.signweb.com/links/SWParticipatingMembers.html - The
most complete list of original equipment manufacturers and sign
supply distributors, updated weekly. List is alphabetical so finding by
location is difficult. Most companies offer Websites so come here
after you have a list of names you want to investigate.
Signs are the oldest recorded form of advertising. Egyptian
merchants chiseled sales messages on stone tablets, and
positioned them along well-traveled public roads. These “billboards”
of olden times conveyed messages to pedestrian foot traffic in much
the same way as our colorful, image laden billboards send
messages to our highly mobile, automobile dependent society
today.

The development of paper and the printing press in Europe in the


1500’s created a popular surge in advertising with signs, but it was
not until the late 19th century that a new form of printing, called
lithography, made possible the posting of bills on wooden boards.
These signs became known as “billboards.”

Outdoor Advertising, or Out-of-Home advertising includes many


forms of signage. In fact, if you have a sign in front of your door or
building, you are using outdoor advertising. Most businesses use
Outdoor Advertising to let the public know of their location. Signs
and billboards vary in size, color and overall look depending on what
message the business wants to project.

Signs and billboards dot the countryside and city skylines. Outdoor
advertising communicates with an audience in transit, or on the go
and away from home. Surprisingly, billboards were more prevalent
thirty years ago than today. In 1970, more than 90% of all outdoor
advertisers used billboards.

The industry has adapted and shifted with the changing


demographics of the population. Outdoor advertisers have moved
closer to the target audience, which is still an audience that is “out-of-
home” and on the go. They use a number of locations with
messages appropriate to the venue in order to capture the attention
of folks who are not at home.

Some of these new locations include bus interiors and exteriors, and
bus shelters; park and street benches; newsstands; rapid transit
interiors, including inside train and subway stations, on platforms,
and inside the trains; in malls and on kiosks; in taxicabs and airport
terminals; sports arenas; and ski areas. Aerial advertising, using
blimps and planes, is a specialized form of outdoor advertising that
is very expensive but highly captivating when targeted at the right
audience.

You can create your own out-of-home, Outdoor Advertising with a


little imagination and some good paint. Consider all the places in
town where you drive in a week’s time, and how many times you
visit the these locations. Use your cars and trucks as traveling
billboards. Outdoor Advertising can be moving, stopped at a
stoplight, or parked and convey a message as easily as a sign or
billboard. If you don’t want a permanent sign on your vehicle, or for
employees who use their vehicles during business hours, find a
magnetic sign supplier or figure a way to attach and remove signs
during non-business hours.

Consider a more elaborate sign outside your building such as the


kind that allows you to change the message. If you are on a heavily
travelled street with traffic stopped in front of your business, you can
create a series of impressive messages right outside your door. If
possible get a special sign box that can be lit from behind so you
can run the messages 24 hours a day. Make sure that you make
the messages short and readable and check and double check for
spelling errors. Make sure than the reader knows where to go to
purchase. Give the address and phone number. And use arrows.
Billboards come in three standard sizes. Bulletins are 14 x 48 feet,
or 672 sq. ft. They are most often used in high density traffic
locations and are either computer printed or hand painted prior to
installation. The contract for Bulletins is usually a multi-month
contract, but you can have your billboard moved to other locations at
agreed upon intervals so it doesn’t stay in one place too long. This
system is called the Rotary Bulletin and you get a lot more market
coverage if the Bulletins are rotated.

30 Sheets are 12 x 25 feet or 300 square feet in size. These


billboards are usually seen on both primary and secondary freeways
and interstates. They are often lithographed or silk-screen posters
and are actually made of 30 poster panels. The contract for 30
Sheets is usually 30 days with exposure at just one location.

Eight Sheets are 6 x 12 feet or 72 square feet. These billboards


are often aimed at catching pedestrian traffic or placed in areas
where vehicles are slow moving. You see Eight Sheets in urban
neighborhoods, suburban shopping areas, and point-of-purchase
displays. Eight Sheets are customarily 30-day contracts.

The Outdoor Advertising Association of America (the OAAA)


maintains that outdoor advertising is a comparatively inexpensive
form of advertising. Their statistics remained consistent for the two
years of 1998 and 1999. In a comparison study with other media,
the cost to reach 1000 adults with outdoor advertising is significantly
less than radio, TV, magazines, or newspapers.

The average cost to reach 1,000 adults with Eight Sheets posters is
$0.81, the cost to reach the same number with 30 Sheets averages
to $1.69, and the cost for the Rotary Bulletins is $3.68 per 1,000
adults.

Compare these figures to the most expensive form of media


advertising, television. A 30-second prime-time spot costs an
average of $18.90 to reach 1,000 adults. TV also offers what is
known as 30-second prime time network spots where the average
cost to reach 1,000 adults is $10.40.

Radio costs are about half of the 30 second-prime time spots, or


$5.57 to reach 1,000 adult listeners on a 60-second drive spot
commercial. Both magazines and newspapers rank relatively high
for the cost of reaching 1,000 adults. Newspapers cost an average
of $11.03 for a quarter page black and white ad, and magazines
cost $9.14 for one 4-color page.

These statistics are published on the OAAA Website. They were


compiled by the following organizations and groups: Outdoor
Planning System-Harris Donovan, Inc. Marketer’s Guide to Media
1996 MRI Spring Report plus rate card Grey Advertsing-1996 Media
Modules A.C. Nielsen NTI, F.C.C., NAA, MPA, MPTS Analysis.

These conclusions leave no doubt that dollar for dollar Outdoor


Advertising is the least expensive medium. The conclusion that the
OAAA makes is that advertising with out-of-home companies is 80%
less than television, 60% less than newspapers and 50% less than
radio advertising.
Other estimates rank the use of billboards and other Outdoor
Advertising at about 1% of every U.S. advertising dollar.
Newspapers and Television each command a large share of the
advertising dollar with about 25% each. Direct Mail plays a
significant role with close to 20% of each dollar, and Radio and
magazines command 6% and 5% respectively. Other forms of
advertising combined make up the balance.

Still, we all might learn from the newest kid on the block, the “dot
com” companies, who have recently embraced not only TV and
radio, but Outdoor Advertising, as well. Ironic as it is, the very
newest advertising category has embraced the very oldest form of
advertising with tremendous enthusiasm. If you drive in or around
any metropolitan area, you have seen this phenomenon for yourself.

Competitive Media Reporting1 announced in December of 1999 that


high-tech companies used Outdoor Advertising 531% more in the
first nine months of 1999 than the same period the year before in
1998. Even more impressive is the growth rate of Outdoor
Advertising for just the third quarter of 1999, up a staggering 849%
from the third quarter of 1998.

In 1999, tobacco advertising was banned from Outdoor Advertising,


and the third quarter of 1999 was the first full quarter in which no
tobacco advertising was permitted. Until that time, as many as
14,000 billboards nationwide promoted cigarettes. Although the
industry was uncertain of the impact, it appears that the removal of
tobacco industry billboards made room for others to enter the
market. As small as the industry is relative to the traditional media
advertisers, Outdoor Advertising experienced an increase of 10% in
usage for the first nine months of 1999.

Outdoor advertising requires some special requirements to be


effective. The message must be very simple and the copy very
short. Experts recommend a maximum of 10 words, and fewer is
better. Most Outdoor Advertising is viewed while driving or on a
moving vehicle such as a bus.

The viewer’s first priority is the road ahead of him/her, so the


message must be very simple and very clear. The background
needs to be very simple as well, so as not to distract the viewer from
the message. A driver viewing a billboard, or any form of outdoor
signage or advertising, has to get the message in 2-3 seconds. If the
background is busy and confusing, that is what he/she sees.

Identify your product very clearly within this 2-3 second message.
Photographs say a great deal, so use words sparingly and
communicate through images. If you have a product that lends itself
to this simple message format, outdoor-advertising is likely to suit
you very well.

You can completely saturate a geographic area through the use of


several billboards in different locations at one time, or by locating
one billboard in a particularly prime location. Remember commuters
will see the same billboards for 30 days, so the more intriguing and
interesting your advertisement, the more responses you will get.

Outdoor advertising is most effective when used as an adjunct to


other advertising, like radio, TV, or newspapers in your area, or the
area where your billboard is mounted. Outdoor Advertising cannot
introduce concepts. It serves as a reminder, a strong and repetitive
re-enforcer, but is unlikely to yield strong results as stand-alone
advertising or marketing.
Remember your billboard is on display 24 hours a day. Drivers who
travel the same route every day view the same Outdoor Advertising
over and over. Frequency of viewing is highly effective for reminding
people about your products or service, and is a characteristic unique
to Outdoor Advertising.

Advertisers pay one fee, but countless numbers of people see the
advertisement numerous times. Every other media requires that you
pay for additional displays, recordings, or viewings. Savvy marketers
and advertisers know that a potential customer usually needs to
view an advertisement more than once or twice before they make
the decision to purchase.

The frequency of viewing offered by Outdoor Advertising is one of its


greatest advantages, making it a powerfully competitive medium
and the envy of sellers of other media who cannot offer repeated
exposure opportunities within the scope of their medium.

In 1998 the most frequent use of billboards was for local services
and amusements, followed by public transportation, hotels, and
resort advertisements. The third largest category for advertising in
Outdoor Advertising in 1998 was retail.

Another excellent feature of Out-of-Home Advertising is that it is


geographically very specific. You cannot target a particular area with
your advertising any more specifically other than with Direct Mail,
neighborhood flyers or door hangers. Based on space availability in
your locale, choose a site for your advertisement near your business
so that potential customers are right near the point of purchase.

Use your billboards as directional signs to bring traffic right to your


door. Find a location that can offer simple directions to your site, and
use directions like: “The corner of 6th and Market,” or “in the 600
block of Main St.” People can not remember street addresses as
they are driving, so find ways to make the directions easy to
remember.

At this point you may be wondering, who is in charge of Billboards.


The question is a valid one. There are nearly 1,000 sign companies
in the United States, which is a relatively small industry. Each State
Department of Transportation administers permit programs. The
Federal Highway and Beautification Act provides guidelines for the
states. States can enact stricter laws than federal regulations, but
they cannot enact legislation that is less restrictive. In 1998 there
were, according to the Federal Highway Administration, 396,000
“traditional standardized billboards on federally controlled roads.”
(Source: OAAA)

If you want to know the guidelines for your state, you can find your
state website at: www.state.(your state’s postal initials).us.
(Remove all parenthesis.) On the state websites, look for the state
agencies and go to the Department of Transportation. If you cannot
find the information on Outdoor Advertising Permits quickly, simply
email them and they will respond.

The OAAA lists ten good reasons why you should consider Outdoor
Advertising. To read through them all, go to their Website. In
summary, Outdoor Advertising is beautiful. Computer printing on
vinyl creates incredibly vibrant colors. This technique introduced in
the 1970’s has become an industry standard. 80% of billboards
today use vinyl rather than hand painted paper. Vinyl not only
produces more vibrant colors, it is more durable, images translate
precisely, and it is more versatile.
Whether you use vinyl or paper, the results are stunning. You can
extend your message in several ways. One is to list a phone number
which is toll-free to cellular phones, or rent the use of a low band
radio frequency near you which is normally not very expensive.

Outdoor Advertising catches the attention of and can reach


thousands effectively on a daily basis. No other medium can reach
so many so effectively. Outdoor Advertising is exactly suited to a
mobile society. According to the OAAA, there is a customized
solution to any advertiser need, size-wise and location-wise.
Technology has improved the production process, posting of panels,
and allows instant viewing of locations via desktop computers and
the Internet.

There are, needless to say, disadvantages to Outdoor Advertising.


Scheduling boards can take time and getting a good location can
sometimes be difficult. Obviously, there is little reason to pay for a
poor location. Another problem is that Outdoor Advertising
companies often require the purchase of multiple boards or multiple
contracts.

Research the companies that will give you the most reasonable
arrangement for your budget. It may not be your local vendor. Keep
in mind as you discuss the issue of multiple boards with them, that
broad coverage and saturation of a particular area involves multiple
boards to achieve the best results.

Unless you offer the toll-free phone number of a low band radio
frequency, you need to budget other media at the same time to give
potential buyers more detailed information on your product or
service. If your website is simple, broadcast it on the billboard in
strong bold letters. The frequency of viewing with Outdoor
Advertising is helpful only if the viewer has the opportunity to learn
more about your products through another media. If you try and say
too much on your billboard, the whole effort may fail. Keep the
billboards simple and beautiful and find other ways to get the
information to your customers.

An advantage to you is that the billboards convey a message, and


though people might like to ignore them, they will often glance to
see what is there. With TV or Radio people can change the channel
or turn off the volume to block commercial messages. Newspapers
and magazines can be tossed out. Outdoor Advertising is a bonus
for you because the viewer is likely to read the message regardless.
For some people billboards are a nuisance and aggravation. They
may not like them, but if something catches their attention, they do
look at it.

Surveys show that, for the most part, Americans like Outdoor
Advertising. The industry has monitored public opinion for the last
25 years and results show that Americans overwhelmingly believe
that Outdoor Advertising is useful to drivers and provides beneficial
information while they are on the road. These independent polls,
conducted by various research organizations, demonstrate the
widespread belief that Outdoor Advertising is useful to business.

A few of these results demonstrate that Americans consistently


appreciate what Outdoor Advertising offers. In 1991, a poll
conducted by the U.S. Travel Data Center showed that 93% of
travelers felt that billboards were important to travelers for tourist
and travel-related services. According to the market research firm of
McNabb/DeSoto & Company, 71% of the customers of budget and
economy hotels were influenced by a billboard in their choice for
lodging., and 60-75% were influenced by directional billboards.
In 1992, 20/20 Research, polled Tennesseans. Nearly 80% said
they used billboards to locate products and services when traveling.
The same number disagreed with banning billboards. These results
were surprisingly comparable to a poll by the Rhode Island Survey
and Research Services that found the same number 80% felt
billboards should be allowed with regulations.

The results of a poll taken in March, 1997, by the firm of Penn,


Schoen, and Berland, revealed that three out of four Americans felt
the information on billboards is useful. Three in four also agreed that
billboards are the primary source to find travel information. Also in
1997, Greene Marketing, Inc. polled 1,243 registered voters in
Missouri. 71% said they felt billboards were useful for travelers to
locate services, and 73% said they felt billboards help generate
business.

The key message of these polls, and many others that were taken in
the last 25 years, is that Americans support the concept of billboard
advertising, and believe that billboards are an important source of
information for travelers on the road.

Billboards offer some distinctive advantages that may be


appropriate for your product or service. Research options to find a
company that offers you a package that meets your needs.
Fortunately, Outdoor Advertising is a small industry. The drawback
is that there are a finite number of billboards across the country.

Outdoor Advertising is one aspect of developing a total campaign


for marketing your product or service. If it appeals to you,
investigate the possibility of integrating an Outdoor Advertising
campaign with one of more other techniques to bring the attention
and focus to your product or service which you desire and which
you deserve.

INTRODUCTION A B C D E F G H I J K L M N O P Q R S T U V W X Y Z LINKS
PUBLICITY, PRESS RELEASES & THE PRESS
mm KIT a

P
Recommended Books

Bulletproof News Releases: Help at Last for the Publicity


Deficit by Kay Borden – Learn how to write a press release that will
catch the editors’ attention, and get your release into the right
hands. Ms. Borden uses her experience as a newspaper editor and
the advice of 135 other media professionals to guide small
businesses professionals and entrepreneurs into the world of
publicity and free advertising. The book includes chapters on What
Makes Your Business Newsworthy, News Writing for Non-
Professionals, Working with Editors, and much more.

The Complete Guide to Publicity: Maximize Visibility for Your


Product, Service, or Organization by Joe Marconi – This
comprehensive guide to publicity is full of ideas for creating
everything from a low cost media campaign to savvy corporate
strategies. Mr. Marconi outlines the steps necessary to create
optimum results, from defining your goals, to the publicity
opportunities from Press Releases, to utilizing the Internet.
Learn to analyze various media opportunities, plan events, and
anticipate results. Plan a publicity campaign to market virtually any
product.

Phrases That Sell: The Ultimate Phrase Finder to Help You


Promote Your Products, Services and Ideas By Edward Werz,
Sally Germain - This book begins with How to Write Copy That Sells
and The 10 Basic Rules of Copywriting. It stresses the Importance of
Finding Your USP, called your PSP here, or your Principal Selling
Proposition, Writing Benefit-Oriented Copy, Knowing Your Audience,
and Understanding Your Product. You also need to Tell Your Reader
What To Do. The authors list Seven Steps to Writing Winning
Slogans and offer numerous phrases you can employ in your writing
using the descriptive qualities of products and services, or people
and personalities.

Six Steps to Free Publicity: And Dozens of Other Ways to Win


Free Media Attention for You or Your Business by Marcia Yudkin -
If you want to be featured in newspapers, magazines, on radio, and
TV, and you don’t want to pay for it, get this book. This easy, step-by-
step guide will give you the information and tips you need to create
the news releases, tip sheets, and letters to get recognized and
featured. Included is information on how to overcome “writer’s
block,” and the six steps to writing and getting a news release
distributed. The essentials of building a PR campaign are all in this
book. Learn best possible publicity methods for your company,
product, or service.
Writing Effective News Releases: How to Get Free Publicity for
Yourself, Your Business, or Your Organization by Catherine V.
McIntyre - Written by a reporter and columnist, this book describes
precisely how to write good, attention-getting news releases using
actual news releases as examples. In addition to examples and
samples of material from a variety of media, Ms. McIntyre provides a
valuable resource section with more books and references on
developing effective and well-written news releases.

Words That Sell: A Thesaurus to Help Promote Your Products,


Services and Ideas by Richard Bayan - This book is a handy
reference as you design sales letters, brochures, press releases,
advertisements, radio announcements, or TV or radio scripts. The
book contains 2,500 words and phrases you can use to persuade,
captivate, and motivate. Use it as a starting point for writing
materials and refer to it as you proceed.
Recommended Software

Press Blaster is “a windows application that turns your PC into your


own home in-house Press Release distribution center.” The
database contains over 7,000 media contacts. It includes an email
program so you can email your contacts, or you can print labels. Get
the word out to the media about your new product, service, event or
website by emailing your own press release. You get new updates to
the data base every month. To learn more and order your copy, go
to www.pressblaster.net.

Recommended Websites

Information on Publicity can be obtained on many of the sites listed


in Chapter G-Getting Started, Chapter H-Hatching Your Plan, and
Chapter K- Know How. Those chapters list resourceful websites that
offer tremendous libraries of information.

http://desktop-journal.com – This is a short page, but worth


reviewing for information on how to write and send Press Releases.

http://lamar.colostate.edu/~hallahan/hpubty.htm This FREE


Publicity Primer provides helpful information and ideas, in bullet
format, for getting started with writing Press Releases and planning
a Publicity Campaign. Learn what is newsworthy; basic formats and
genres to use; and accepted conventions for presenting information.
Learn three ways to generate publicity: written materials;
spokespersons and interviews; and staged events. Find thirty ideas
on how to generate news stories for your organization. The site
offers a free checklist of materials, and pointers for writing an
excellent news release.

www.advertsing4free.com - Offers 12 pages of information on an


information kit called, “The Magic Power of The Press Release
Package.” The kit is not free but does offer a number of resources
including a book, audios, and videos.

www.dern.com/welltemp.html – Writer Daniel Dern offer ideas on


what is newsworthy, and how to construct a “well-tempered” Press
Release by avoiding hype and unnecessary jargon and sticking to
the facts. He also includes a short, but clear list of “do’s and
don’ts.”

www.gopressrelease.com - Go Press Release sends your press


release to over 10,000 journalists, writers, editors and media outlets
for one low price, under $100. On the website, they offer a Press
Release Writing Service, with examples to study.
www.ideasiteforbusiness.com/direct.htm - Click Press Direct
sends email messages to the publications you want to contact. A
blank message addressed to the business editor allows you to paste
your message and send. To access Click Press Direct, just complete
a simple survey. Find many helpful resources, articles and
information on the homepage.

www.internetwire.com - Internet Wire has been a leader in Online


Press Release distribution since 1994. They distribute “direct
company news, including Press Releases, financial announcements,
graphics, and other time-critical business communications materials
to a worldwide audience of media, analysts, and consumers.” In the
technology sector alone, they have worldwide distribution of over
9,000 technology media. They distribute to the top daily, national
and international newspapers, and major TV, and radio stations.

www.marketingsource.com - This is the web page for Concept


Marketing Group, an organization that assists growth oriented
companies in developing professional marketing strategies. You will
find articles, library associations’ data base, and assistance in writing
Press Releases at this site.

www.newsbureau.com – Internet News Bureau has a targeted list


of over 2,000 journalists who subscribe to receive Web-related news
stories, and Targeted Modules of hundreds of journalists in specific
areas. Get assistance or have a Press Release written by one of
their media professionals. They also have an International List of
press agents in foreign countries and can have your Press Release
translated in native languages. Says Beth Schimel of SCORE, “
Without this valuable resource, we would be struggling to keep a
current media list…Internet News Bureau makes our job a lot
easier!”

www.pressflash.com - Press Flash is an online distributor of


press releases. They send your release to the personal fax
machines of more than 1,100 journalists who cover Internet related
stories. All releases are addressed to the Editors by name

Publicity is free advertising for your product or business. Whether


you are invited for an interview, or the press comes to an event you
plan or sponsor, or you write an informational or educational article
for a newspaper or magazine, you don’t have to pay any of the costs
associated with the press coverage.

The fact is that the media is continuously looking for stories. Stories
and information are the lifeblood of their industry. Whether you have
one or stage one, they are very likely to come as long as you write a
good press release. No matter who is covering the story, whether
newspaper, radio, or TV, the media company covers the costs of
reporting it and airing or printing it.

The media pays the expenses whether you are interviewed by your
local newspaper or by a large, metropolitan newspaper; whether you
are the invited guest on a local radio station; or interviewed on
nationally syndicated radio; or whether you are interviewed on
national TV news. In most cases you will pay your own travel, food
and lodging. Only the rich and famous receive amenities hosted by
others.

Publicity is this: free advertising for your product and company.


Grasp the importance of this. Value the concept, and always be
thinking of ways to bring publicity to your company. Every other form
of advertising costs you a lot of money except engineering publicity.
Your job is to create excitement for something newsworthy. You can
make an event happen or you can capitalize on events within or
outside your company. In everything you do, always be thinking of
the opportunities for publicity. Remember, the media wants stories.
They will pay the costs to get them.

Understand you will have expenses associated with a publicity


campaign. Any event you plan will have expenses, and you have
costs involved in preparing and sending the press releases.
Consider creating a Press Kit as a way to present extensive
information on your company when the press comes to an event you
sponsor. Depending what you decide to include in them, Press Kits
can be expensive. Press Kits magnify the event by providing more
detailed and specific information on your company. See the end of
this chapter for what to include in a Press Kit.

You could be paying a very high price to advertise in some of the


very media that begins to feature you for FREE because of the
publicity you generate. Ironically, you may receive much more
coverage in FREE publicity from the events you stage than you are
getting from paid advertising.

Publicity can be fun and exciting both for you, your company, and
the public. Be sure to order reprints of all articles and photos directly
from newspapers that publish stories about your company. Get
copies of videos from TV interviews and audios from radio
interviews. Get permission from these companies to use pre-
published information in brochures, company audios and videos, and
promotional efforts. Be sure to keep copies on file in the company
archives.

Understand that publicity offers no guarantees. You take what you


get, and you use what you get to your full advantage. You don’t have
any control over what is said about you, your product, or your
business. You are not in charge of writing the story. The press can
not be bought, so they report what appears interesting or meaningful
to them. What is important and of vital interest to you may either be
misunderstood or considered insignificant to the reporter who is
there to cover a story.

Misinterpretations are common no matter how clearly you state


information, and there is nothing you can do about it. Calling the
media and complaining about a story guarantees they will never
come to see you again. Instead, if you feel it necessary to set the
record straight, develop a playful rebuttal that is neither
condescending nor demeaning to the media. In other words, stage
another event in a comical and light-hearted way. You will get more
publicity, which is, of course, what you want.

There is no guarantee the press will come to an event, either.


Reporters can change their minds at the last minute, even if they
indicated they were planning to come. They might receive a last
minute assignment deemed more newsworthy. Do not expect them
to call with their regrets, either. They simply will not show. Keep
inviting them, sending them Press Releases and making an effort to
involve them in your activities.

If only one or two reporters appear at an event at the scheduled


time, treat them like royalty. Proceed with your plans and remain
totally upbeat. There are cases where a single reporter’s story
generated interest that developed into major national exposure.
Whatever you do, do not moan over those who do not show. Be
warm, friendly, and genuinely pleased with those who do come.
Even if reporters come to an event you have planned, there is no
guarantee they will report the activity, or that the report will appear in
the newspaper or on the evening news. A scheduled, taped, and
edited story can be preempted by “late breaking news,” and never
rescheduled. A reporter can miss the deadline for the story, and be
onto something else the next day.

With no certainty that you will receive coverage and the possibility of
altered interpretations of your material, you are probably wondering
if seeking publicity is worth the effort. After all, you are busy enough
with every other detail involving your business without having to
think about anything so uncertain. The answer, of course, is a
resounding, Yes!

You want publicity, and not just because it is free. Focus on the
positive aspects of attracting free advertising to your business or
product. Publicity creates good solid public relations you cannot buy
for any price. Events that you sponsor, which attract the press,
create excitement in the community. If you get national attention, you
become an instant celebrity, an overnight local sensation.

Articles and interviews bring continuous attention to your company


and your products. As you know, being in the public consciousness
is outstanding for generating and maintaining sales activity. Plan a
schedule of timely orchestrated media events to remain in the
limelight, and be prepared for the moment when a call comes
requesting an interview on national radio or TV.

People rely on the press as a highly credible source of factual


information. Good press is a virtual endorsement of your company
and products. The attention an interview or profile in the media can
bring you and your company can be the beginning of magnificent
exposure that could change the nature of your business. Great,
good, bad, or indifferent, publicity is free advertising. Develop your
contacts, write Press Releases, sponsor activities and events, and
acquire all the benefits you can.

This chapter addresses some of the steps you can take to create
desirable publicity from the press: writing a clear and succinct Press
Release and assembling a meaningful Press Kit. For more in-
depth information on these subjects, review the Recommended
Books and Websites at the beginning of this chapter.

You can obtain publicity or “free advertising” from other media


sources besides the press. Discussed in more depth in chapters that
relate especially to those sources are: TV, radio and magazines. In
particular, see Chapter N- Newspapers and Magazines, Chapter R-
Radio, and Chapter V-Video and TV. The purpose of this chapter is
to develop an understanding and appreciation for the value of
publicity, and to give you some tools to pursue a publicity campaign
successfully.

A good Business Plan can make the difference between a


successful business enterprise and the one that never gets started.
In the same way, a well-crafted Press Release can make the
difference between a story editor reading your information or literally
tossing it in the waste can.

Editors briefly review all press releases, and assign reporters to


cover the stories. As much as 90% of all releases are so poorly
written, they get thrown into the trash without a second thought. It is
vitally important that you understand what you want to say in your
Press Release. Evaluate how well you communicated your ideas
before you send it.
Because news is the lifeblood of the media, this entire, enormous,
industry depends upon reporting fresh, new, interesting stories every
day. Most newspapers print daily. Radio and television stations have
hours and hours of programming to fill daily.

As you have seen creating positive and beneficial publicity for your
business will require proactive involvement on your part. Securing
publicity requires attention to detail and a few skills which you can
acquire. One thing is certain, the media is unlikely to beat down
your door, but they will appear if you present a compelling reason for
them to do so. Once you secure some press coverage, keep the
momentum by supplying more information and updates, and by
creating additional events to sustain media interest in your company.

Decide on a central focus before you begin writing your first Press
Release. Your three choices are: the product, the business, or you.
Your focus can change at a later date, but keeping an “identity” to
one of these three entities gives the press a focus. Ask yourself
which is most interesting to the buying public. If you are a celebrity
or a star, or even a family member of a well-known personality, you
can build the business around yourself. People want to buy
products from you because they emulate you, they like you, your
looks, your work, or what you represent to them. If you are not in
this category (you should know), then you are left with the other two
choices.

If you have a multi-faceted, multi-dimensional, diverse, or unusual


product line, focus attention on the company. Emphasize several of
the most attractive products in your line, as examples, because most
people relate to specifics rather than generalities. You want to
develop an image around the company, and although your products
are your primary focus, you want the company name to standout.
This is particularly important if you plan to continue introducing new
products.

If your product is new, unique, one-of-a kind, or if you are a single-


product company, emphasize the product. You can introduce
additional products later very successfully, especially if they are
technologically related to your “flagship”, or original product.

To create publicity and grab the attention of the media, you want to
create a newsworthy event around your chosen focus. Remember,
the press is interested in news. The public is fascinated with the
human interest element which sometimes makes news of a
non-newsworthy event. Develop a strong, clear message because
people believe what they read in the press or watch on T.V. The
human interest element is much more appealing to the average
person than an advertisement. Learn to be subtle and you will have
the public in the palm of your hand with good press following you.

If you haven’t had an official opening, pick a date and time and invite
the press from your area. Invite friends and have all your employees
invite friends. Have an open house highlighting what is unique about
your facility or your product. If you’ve been in operation for a while,
your first event can be similar to an opening. You can connect the
event to an anniversary of your business. Be sure to invite
neighboring businesses in the area. If you don’t want people coming
into your plant or office, find a local non-profit group, or a school,
where you can create a special demonstration celebrating your
anniversary, and invite the press there.
Aligning yourself with non-profit organizations in your community is
good business. Non-profit organizations have mailing lists and
organizational affiliations themselves, and when you co-sponsor an
activity with one of them, your business will appear in their
newsletters and announcements. Creating the association may be
as simple as picking up the phone and inquiring about some activity
you can co-sponsor.

Some of your employees may have connections with local schools


or other non-profits and be able to make some initial introductions for
you. You can even run a contest within the company to brainstorm
ideas for publicity events. Your employees will enjoy the fun.
Someone is likely to suggest a carnival with you in the hot or cold
seat receiving a continuous dunking or barrage of water bullets. If
you get some good publicity because you donate the proceeds to
charity, can you endure the price you have to pay?

If for some reason you decide against an open house, then stage an
activity around a holiday or something related to your product or
product line. Whatever you do, you want to create as much
excitement as you can to attract the press and make the event
memorable. Build on the excitement as you plan more activities.
Extend your geographic circle of media contacts with each
successive activity, and watch your reputation grow geometrically.

With your focus in mind and the event decided, your next
consideration is a date. If you want an open-air, outside event, make
sure no rain or snow is in the forecast. Whenever you schedule an
outdoor event, a prudent plan is to pick a location where the
activities can be moved inside easily in the event of inclement
weather.

Make sure to give yourself enough time to write a good Press


Release, get it printed and distributed to the press. Give the press a
few days to a week’s notice before an event. You don’t want to alert
the press too many days in advance or your event may looked
staged just for them.

Remember your Press Release is offering news, and most news just
happens. You also don’t want to field a lot of questions in advance,
either. If you allow too much time, the press may call to get more
information and decide not to come. A good Press Release is so
important that you might want to draft the Press Release first. Make
sure it has all the necessary components, prior to picking your date.

One recommendation as you proceed with this effort is to develop


what is known as a “hook.” A hook is what distinguishes you from
others, including your competition. It is something that you do, or
the way you do something, that is different from all the rest. It can
be as simple as an unusual handout, a small token you always give
at your media events. If there is a way to tie your hook into your
product you will have a familiar and constant advertising charm.
When you go to a tradeshow or expo outside your area, carry your
“hook” with you. It becomes a company trademark.

If you are excited about the publicity prospect for your business, but
uncertain how to make preliminary plans for more that a few events,
the following list offers some ideas for events to which you could
invite the press. There are no right or wrong events. Your
imagination, and the imagination of your employees, friends, and
associates should bring lots of ideas to paper. Planning and
executing is up to you. Have fun, because the process should be
enjoyable, and if you are misrepresented, just plan another event to
set the situation straight. Give more the second time, more food,
more gifts, more decoration, and see if the press doesn’t become
more receptive.
Ideas for Press Events
1. Official Opening
2. 6 month Anniversary
3. 1st Anniversary
4. New hours
5. New location
6. New Product
7. New Services
8. New Staff
9. Awards or Recognition
10. Community Service Activity or Benefit
11. Appointment to a Committee
12. Appearance on national TV or radio
13. Holiday Specials
14. Holiday Celebration
15. An activity with a Non-Profit Organization
16. Present an award to a City Councilperson
17. Support of a Popular Legislative Initiative
18. Gift to the Schools
19. Teach a class or seminar
20. Publish a book or article
21. Attend an Expo or Trade Show

Your imagination is the only limit to the activities you can announce
in a Press Release or turn into an event to create awareness of your
company and your products. These events are not for selling, except
indirectly. For instance, have a guest book for people to sign as they
arrive. Plan a free raffle and have people fill out a ticket with their
address and phone number to capture mailing list information.

Writing a Press Release

A Press Release is the written announcement you send to the


press about your news or upcoming event so they can publicize it.
There is a specific format that will greatly increase your chances of
having the information printed and press at the event.

1. Write the announcement like a newspaper article. Newspapers


receive stacks of press releases on a daily basis. If the editor can’t
find the substantive information immediately, he/she won’t take the
time to muddle through the information, and is likely to toss the press
release. You don’t have to compromise content, but you want the
editor to grasp immediately what your release is about. Often, an
editor will use what reads best and requires the least amount of
editing.

2. Use the active tense. The following is an example of the active


voice, or tense:
The XYZ Company plans a barbeque honoring retiring vice-
president, Tom Jones.

The passive tense is: The XYZ Company is planning a barbeque


honoring retiring vice-president Tom Jones.
Most passive voice verbs use a form of to be, such as I am, you are,
he is, we are, and they are. She has been studying for over an
hour. The active tense would be: She studied for over an hour. If
you use verbs that express action alone, without to be or to have,
you are in the active voice.

3. Include the 5 W’s: Who, What, Where, When, and Why. The
statement above naturally leads to a continuation:
(The XYZ Company plans a barbeque honoring retiring vice-
president, Tom Jones,) on May 24th at the Civic Plaza in Westville.
Festivities begin at noon. The first two sentences answer the 5 Ws:
Who: XYZ Company
What: a barbeque
Where: Civic Plaza in Westville
When: May 24th at noon
Why: vice-president Tom Jones is retiring

If this was all the information the newspaper printed, the public
would know enough about the event to decide whether or not to
come.

4. Include a contact name and phone number, for more


information. Always include the contact information at the very top of
the news release as well:
For more information, call the XYZ Company at 434-4444. Ask for
Kathy

4.Use short paragraphs of only a few sentences each. This makes


the editor’s job even easier because he/she can literally lift
information as it is from your news release, and print it without
cutting or editing it.

6.Use short sentences without superfluous or unnecessary words.


Avoid the use of adjectives. They are merely embellishments, and
are a distraction in newspaper format. You want to present factual,
objective information. Be sure to avoid the use of slang.

7. Use good grammatical form. Spell all words correctly. Any


word, name, or number can get copied wrong making the printed
version incorrect, but make sure the error is not yours.

The rest of your Press Release is for other pertinent information of


importance. For this particular event you could mention special
activities planned for the barbeque. You might briefly explain how
long Tom Jones worked for XYZ, and some of his contributions

Quote yourself or other parties in reference to Tom Jones and his


contributions to the company, but make sure that anyone whom you
quote is knowledgeable and will handle the press appropriately
should a reporter seek an interview. Depending on the space
available, the editor will pull information from your press release and
print what he/she feels is important.

You can attach a fact sheet written with bullet points if you have a lot
more information you want to give the editors. The Press Release
itself must be simple and to the point. Be sure to mark the end of
the Press Release so there is no confusing your release with your
fact sheet. You can use a symbol like this: “###” or write “-end-“.
Either one centered on the line below your last line of your text is
proper form.

You can attach a photograph with or without a


Fact Sheet. Make sure you attach with a paperclip information who
about who is in the photo, and where the photo was taken. In this
case, you could have Tom Jones at his desk at the XYZ Company,
or outside in front of the sign on the building. A headshot of him
would be fine, but you may as well plug the company visually, as
well. The story is more interesting when the subject in the photo is
either doing something or demonstrating something.
.
7. Print the final draft on your company letterhead. Make sure
that you spell-check the material, proof-read it yourself carefully, and
have someone else proof-read it, as well. Remember, you are
writing to journalists, professional writers. They will not take you
seriously if your work contains typos or poor grammatical form. You
want to present as professional an appearance as possible and
catch his/her attention immediately.

8. Keep Press Releases to one page, double-spaced, with


indented paragraphs. In draft copies, remember to allow the
necessary space for the letterhead. You can go onto a second page,
but you would do better to condense your information. You are not
elaborating on the history of your company, or the development of
your product in the Press Release. Save that information for your
Press Kit.

The important concept here is that the editors have short spots to
fill. Help them out by providing just the right amount of well-written
information that can be added without any editing. They might print
only a paragraph if that is all the space they have. If you have just
the right amount of information, with all the necessary facts and
figures, you could be selected. If not, you are material for the
trashcan, no matter how interesting your story. Read through a
newspaper with a hawk’s eye to see how much of what is really
relevant is relayed within the first few sentences.

After you have edited your Press Release, type or print it. Use a
Standard Press Release Format like the following:

1. Type the name and phone number of the contact person on the
upper left hand side of the page, flush against the margin. First write:
For More Information, Contact:

2. Skip two lines. Flush against the right margin, type “For Immediate
Release,” followed by the date. You can also type, “For Release On
(a specific date, such as) April 30, 1999,” or “For Release on or after
April 30, 1999.”

3. Skip two lines. Flush against the left margin write your title or
headline. Make it short and to the point. “Barbecue Planned,” or
“XYZ Company Plans Barbecue for Retiring VP.” The first headline
might draw in more readers. You can center this title in the middle of
the page, below the other information.

4. Skip two lines. Begin the body of the Press Release like a
newspaper article, such as, (Westville)…Write the body of your
Press Release.

Once you have delivered or mailed the Press Release, go back to


other important work. Your job is finished for now. If you have only
made an announcement, the press will contact you if they plan to run
your story. Otherwise, proceed with the plans for your event.
Calling the newspaper will not endear you to the editors and
reporters. They will call you if they want more information. Watch the
newspaper for any coverage. They may or may not tell you if they
decide to print your feature. If it is just an announcement, you
probably won’t hear from them.

Should you get a call, be sure to return all press inquires promptly,
and free your schedule for any requested interviews. If you are not
the listed contact person make sure that whomever you list is fully
capable of giving information and an interview about the company.

If nothing happens, create or wait for the opportunity to create


another event. Keep polishing your Press Release writing style and
keep submitting your releases. You will get attention at some point.
Be ready for the day when the press is anxious to cover your
developments!

The Press Kit

A good way to introduce your company to the media is with a Press


Kit. You can do this with your employees, by yourself, or even hire a
PR company to do it for you. The latter will cost money, but you are
certain to get a very professional-looking package.

Your Press Kit is most attractive if you get some glossy black or
white folders with pockets on the inside. A big sticker featuring the
company logo makes the outside very attractive. You will find
abundant other uses for these sticker-logos so investigate the cost of
getting a gross made. In the left pocket, on the top, put a copy of
your current Press Release (if you have one). Under that you can
include the labeled Fact Sheet and a few photos. Include a headshot
of you, the President of the Company, a color glossy of the product
or product line, or a good color drawing. You can include several
photos, but remember the cost involved.

The top page on the right side should have a one-page description
of some vital statistics on the company. Include the name of the
company, who formed it, when and where it began, what the
products are, the number of employees, annual revenues, and other
pertinent information

If you have been in business for some time, include a one-page


history of the company, an audio, or video if you have one, bios on
all the principals, and a list of current staff. If you have developed
sales materials, like pamphlets and brochures, include those items
here. This is your opportunity to present yourself in full color to the
press. You want to keep a number of these available for the day you
are inundated with requests.

Developing a publicity campaign may not be the first major


marketing effort you want to launch. Concentrate on several
techniques that can create direct and immediate sales when you are
first starting. If you feel your product or service is newsworthy and
timely, develop your publicity plans and activities while you
coordinate other marketing efforts. Whether you are just getting
started or you have been in business for a long time, providing news
about your company and your products, in a clear and coherent
manner, can make the difference between great exposure in the
press or none at all.
Sales of your product or service are quite likely to increase as result
of information you provide the press. The public trusts information
they learn from news stories and editorials more than from claims
made in advertising. As a result, some product providers generate
tremendous sales from well-coordinated publicity campaigns and the
free advertising that results.

You are the one to generate the stories and interest that bring the
press to your door. As CEO, you are the captain of team, in this
endeavor as well as all others. You decide what and how information
about your company is disseminated. Work with your staff to plan
the Press Kit. Write and develop the Press Releases, and plan the
events. Creating Publicity takes some time and effort. The process
can be a lot of fun, and tremendously rewarding as well.

It is essential that you develop the skills to write and coordinate an


on-going publicity campaign before you can expect to generate
significant product sales. Brush up on your copywriting skills and
study the resources recommended at the beginning of this chapter.
Like many other programs and activities, you never know how
successful you will be until you make the effort.

Enjoy the process!

INTRODUCTION A B C D E F G H I J K L M N O P Q R S T U V W X Y Z LINKS
a
mm QUICK & QUALITY IDEAS THAT WORK

Q
Recommended Books

The Perfect Sales Piece: A Complete Do-It-Yourself Guide to


Creating Brochures, Catalogs, Flyers, and Pamphlets (Wiley
Small Business Editions) by Robert W. Bly - This book offers
inspirational ideas for the novice as well as the experienced graphic
artist. Plan, budget, design, and write your own sales
literature.Learn what works and what does not from an influential
and independent copywriter and consultant. Presented as a learning
guide, you will find step-by-step procedures from developing the
initial idea to creating the final production, including writing copy,
design techniques, and illustrations. Additional information
demonstrates the latest technologies of desk-top publishing,
including the use of fonts, typefaces, and folding and binding
choices.

The Best of Brochure Design 4 (No.4) by Rockport Publishers


(Complier) - Effective brochure design is an art
form that involves creativity and skill to assemble all the components
into a piece of literature that conveys the necessary information and
is enjoyable and memorable at the same time. This book details the
product brochure, the service brochure, the promotional brochure,
and the self-promotional brochure with a number of designs and
styles for each type. The book includes hundreds of design ideas for
how to best convey your message.

Recommended Websites
Brochures

www.tcguide.com - Word Magic will write or edit any form of


communication, including brochures, flyers, ads, and articles. Find
out more about how they can assist you by visiting this site. The
goal is to help you create effective communications that are also
clear and interesting.

www.write101.com - If you want some tips on improving your


writing, visit this site. You can order a tutorial, over 200 pages sent
to your email address, subscribe to a weekly e-Zine of writing tips,
access archived articles, take a short test, and gain an
understanding of what you need to do to improve your writing skills.
You can also have your sales pieces composed here. A helpful site,
so check it out.

Card Decks

http://postcards.cashconnection.com/Carddeck.htm
Cash Connection is an Internet Services Provider that mails a Card
Deck to 100,000 prospects four times a year. The site has full size
pictures of what Card Deck postcards look like.

www.acpinc.com/healthinfo/cardpack/main.html American
Custom Publishing supplies senior and consumer health information
products to more than 1,500 organizations. The Health Information
Resource Center, a member organization, offers two Card Pack
opportunities. The first targets 20,000 “senior level corporate
benefits/health administrators, and managed care executives. The
other reaches 20,000 health promotion program managers whose
responsibility is keeping employees and dependents healthy and
‘smart health conscious consumers.’ ”

www.bignetprofits.com/onemil-thumb.htm - This Internet


Marketing Company thinks BIG. They mail their Card Deck to a
million people. Check their pricing and ask all the questions you
need to get a fair comparison with other Card Decks.

www.capitalwave.com - Capital Wave is an Internet Consulting


Company which offers Card Deck participation to fit virtually any
budget. The Card Deck mails quarterly to “business owners,
directors of sales and marketing, entrepreneurs and opportunity
seekers.”

www.catalogcity.com - Catalog City offers hundreds of catalogs.


Become a member and request the catalog of Venture
Communications, a major Card Pac marketing company.

www.chelseadirect.com – The Network Marketing Success


Center mails six times a year to 150,000 new leads each mailing, for
a very reasonable cost. Submit your own camera-ready Card or pay
for their typesetting.
www.d-net.com/min2/min41867.htm - This is the site of The
Business Publication Advertising Source, or d-net. This is the page
of the “CommerciallyProduced Directory,” 7500 business addresses,
phones, faxes, key advertising personnel, and publication dates for
technical and trade publications including more than 600 Card
Decks. Contact the publisher of this directory at 800-232-0772 or fax
847-375-5001. The directory is expensive but offers innumerable
contacts.

www.groupcomputing.com/Information/AdvertisingInfo
Group Computing Magazine mails Card Decks to a list of 50,000,
and is a great targeted list for computer related products. This page
is hard to reach and at printing there were no apparent tabs or links
from the homepage. Email: sheryl@groupcomputing.com (remove
parenthesis), call 801-942-1431 for Card Deck Information, or fax a
letter
requesting Card Deck Info to: 801-942-6273.

www.homebusinessmag.com - Home Business Magazine Online


has a number of very useful “channels” with daily articles, including
business start-up, business management, marketing and sales.
They offer a reasonably priced Card Deck to their subscription list.

www.internetmatrix.com/carddecks/cards.htm Internet Matrix


mails four times a year to 100,000 people. As with most Card
Decks, every issue fills up, so you want to reserve spaces early.
This Card Deck includes the design of the card with your price.

www.mbbonline.com - MBB has mailed Card Decks for over


twenty years. Nationally recognized companies like American
Express, Avis, Epson, and others, appear side-by-side with your
offer. They have built a solid database of loyal customers, and their
Card Decks consistently bring buyers.

www.thedesignlist.com/index.html - The Design List is “your


comprehensive resource for marketing to architects who specify or
buy your products.” This exclusive list of professionals reaches
70,000 practicing architects who enjoy the Card Deck format.

www.vulcanpub.com/imdcd/advertising/directmail The
Industrial Machine Card Deck mails twice a year to 50,000
“contractors in the utility, marine, electrical, commercial and
industrial fields. They also mail to 50,000 “companies in highways
and streets, excavating and grading, bridges and tunnels, utilities
and sewers, landscaping, non-residential building, concrete and
other related industries.” If your product or service relates to these
areas, be sure to contact them.

www.market.comm/Interstate/carddeck.html -Interstate
Enterprises has a card deck program that allows you to test 400
cards for as little as $19.95 (you submit the camera-ready card). 400
cards might not be enough for an adequate test, but you can’t beat
the price. The average cost to get just one lead to become a
customer is more than $20.

www.worldprofit.com - Dr. Jeffery Lant’s World Profit Mall offers


lots of marketing information to entrepreneurs and small business
owners. To find his Card Deck information, scroll down the
homepage to the bar called Advertising Options and look for Card
Deck Advertising. The program is very inexpensive, and gets you
great exposure for very little money.

Merchant Discount Programs

www.entertainment.com - One of the options in Merchant


Discount Programs is to advertise with the yearly Entertainment
Book Contact them through this website to see if advertising with
their book is appropriate for your company or product.

www.fundraisingcards.com/ricknew.htm - This site offers a


manual on how to start your own Merchant Discount Product
program, including plastic cards and coupon books.

www.valpak.com/info/advertising.jsp - This is the URL for Val-


Pak, the nation’s leader in “local cooperative direct mail.” You can
download the PDF file using adobe reader to get their media kit with
advertising options and guidelines. Locate your local Val-Pak office
on the website or by calling 1-800-661-0964 (U.S.) or 800-268-6866
(Canada).

Promotions

www.ppa.org - The PPAI is the Promotional Products Association


International, composed of companies providing promotional
products to other businesses. Search for a member company in
your area on the website. The link is near the bottom of the
homepage under the “Promotion Clinic.” There is a link to
information on promotional ideas there, as well. You do not have
to be a member to search the directory. If you want specific
information on a particular company, or type of company, contact
PPAI. Contact information is available on the website.
www.gopromos.com - Go Promos is an online superstore for
promotional and discount promotional products. Find items by
category, by industry, by events, and as special gifts. Join the Go
Promos Club and receive special benefits. Find specials listed on
the homepage.

A number of marketing and advertising techniques require a great


deal of planning, substantial sums of money, and continuous follow-
through just to launch them. This chapter offers several relatively
simple techniques that can be less expensive and less time
consuming than other more conventional efforts. You can sell
products and services directly to new customers using these
techniques, or use these methods as a way of collecting qualified
leads. These programs are as effective in bringing qualified leads to
your company as traditional methods.

The common ground with these methods is that they will not cost a
lot of money, will not take too much time, and will bring you
customers. A combination of these systems alone can bring many
potential buyers to your door and secure their loyalty to you, as
well. Here are some Quick and Quality Ideas That Work.

Brochures

One of the oldest and most frequently used marketing techniques is


the brochure. There are several varieties of brochures, among them
the product brochure, the sales brochure, and the company
brochure. Information here relates to a general all-purpose
brochure. Every company selling a product or offering a service
needs at least one brochure to use for a number of different
occasions.

When a potential customer calls about your products, you want to


send a brochure with a personalized a sales letter in a very routine
manner. The combination of a brochure and a letter gets substantial
information buyers with little effort. If your office or showroom is in a
location that has public access, keep a stack of brochures on the
front desk or counter for people who drop in to take with them. At
every publicity event, you want plenty of brochures highly visible. At
Expos and Tradeshows, you want to create an inexpensive version
of your brochure to hand out to as many people as possible.

You can design, produce, and print brochures in-house, or design


them in-house and have them printed on glossy, velum paper at a
local printer. You can also out-source the entire job. There are
printing companies on the Internet that will print and mail your
materials to you for less than a local printer will charge just to print
them. These companies will also assist you with design and layout.
Go to any search engine and type in “printers” for a choice of
companies.

Since your staff time is limited, you may find that outsourcing the
first generation of brochures may be the simplest method for getting
the job done. You can plan to make additions, modifications, or
changes when you reprint.

Regardless of how you choose to make the brochure, create a mock-


up of what you want included. Specify both content and design or
appearance, including colors. Consider drafting material for the
content on the following subjects: the history of the company
including biographies and credentials of company principals; the
products, their history and development; pictures or drawings of the
products in use or in action with people, if possible; testimonials;
prices; and ordering information.

You can make one fold of your brochure into an order form to
encourage people to cut and mail. Make sure you let them know the
ways they can pay you, i.e., checks, cashier’s checks, or credit
cards. If you accept major credit cards, leave adequate spaces for
your customers to write the information needed to process the
request. The name as it appears on the credit card, the expiration
date, and the full 16-digit number, are usually sufficient. Call your
merchant card services company to verify the information you need
to place phone and mail orders.

The primary purpose in developing a brochure is to get the attention


of the person who takes one or receives one in the mail. You want
to capture their imagination. Content is vital for effective and
meaningful brochures. The design, layout and visual appearance
contribute immensely toward creating an overall lasting impression.
Make colors interesting, exciting, and energetic. Make the
appearance inviting. Make the experience of reading your brochure
memorable. A dynamic and fascinating piece of sales literature has
a greater chance of creating orders than a plain and dull one.

Card Decks or Card Paks

Card Decks involve sending your advertisement on a postcard in a


packet with several dozen other offers. Card Deck companies
manage the entire arrangement, from assembling the advertisers
and developing the mailing list, to printing the advertisements in as
many as four colors, and mailing the packets, usually in heat-sealed
clear cellophane.

Card Decks are a unique opportunity to co-op advertising


expenses and let some one else do the work. Some ask that you
present camera-ready copy. Others will do the typesetting for you
for a minimal additional charge. In the latter case you can create a
mock-up of your advertisement to retain a standard look about your
ads, but you do not have to do anything else.
The cost is the most tantalizing feature of using Card Decks, though
organizers believe that the results are remarkable as well. It takes
time (and money) for you, your staff, or a paid graphics professional
to create a Direct Mail piece. Each letter then costs 33 cents (and
rising) or 23 cents for each postcard. The mailing list is an additional
cost of several hundred or more dollars. The time to prepare the
mailing and sort it for a slight postal discount is often considerable.

The cost of Card Deck postcards ranges from 1.2 cents a card
to around 5 cents per card per mailing. Most companies have a
price scale so that you can send your offer to less than their entire
list, but the cost per card is more. When and how often mailings are
sent varies from company to company, but each has published
mailing dates and closing dates for inclusion

A full postcard is the standard size for card decks. Many companies
offer a ¼ card, which is literally ¼ of a card with margins all around
(so it is not very big) where you list your information with three other
businesses or opportunities. Information is on one side and the back
is preprinted with your address for the prospect to return the
postcard to you for more information. A jumbo card is the size of an
extra large postcard. Card Deck companies permit only a few
jumbos per mailing, so you have to get your name in early to
reserve one of those.

Card decks are becoming more popular with technical trade


associations and other organizations that maintain large databases
and mailing lists. Spend some time investigating companies that
offer card deck advertising opportunities. Inquire about how they get
mailing lists and what they know about the names on the list. If you
have highly technological products you would want to avoid
opportunity seekers and look for a company within your field.
Though it may take some investigation, finding a card deck related
to your specialization is an opportunity to contact thousands of
targeted customers for a fraction of the cost of doing it yourself.

Consumers do enjoy receiving card decks and will read through the
contents. A postcard is adequate enough space to stimulate the
reader to inquire for more information. The space is similar to a
display ad described in Chapter N-Newspapers and Magazines.
Follow the same format explained in Chapter N for writing a strong
classified advertisement. Use the A-I-D-A formula and always stress
the benefits.

Your objective is to get the reader excited enough to find a stamp


and mail that postcard back to you. Once you have it, you have a
good solid lead to pursue through phoning and/or your own Direct
Mail program. Many advisors who use Card Decks suggest that you
not prepay the postage to return the card to you. You want a
proactive lead, not a lazy one. However, you can arrange with the
Post Office to have each card pre-stamped, and then pay only for
those that are actually sent back to you in the mail. An undeniable
fact is that you are likely to get more responses if the postage is pre-
paid. The question is whether you will get more buyers by providing
the pre-paid postage. Offer the return card both ways and make
your own determination.

Make sure that you obtain all the data you want from your new
prospect on the message section on the back of the card. In
particular, have them list all phone numbers including home, work,
fax, and cell. Get an email address. Start building an email file. Ask
them if they would like to receive communication, information, or
product updates through email.

Potential buyers from Card Deck Mailings are more responsive to


some product and service offers than others. In particular,
prospects are interested in items that will enhance their businesses
such as office supplies, mailing lists, or telecommunications. They
are also interested in advertising and marketing information;
computer and computer products; and software. Other products of
interest to the public include financial services, insurance, health,
and travel. Personal growth and motivational information such as
books, and audio/video tapes are also popular.

Check the Recommended Websites at the beginning of this chapter


for suggestions on where to begin searching for the right Card Deck
company for you. Keep in mind that Card Decks choose the mailing
list so you have no control over who will see your advertisement. If
you are confident their list will contain people who will respond to
your advertisement, consider signing up for a minimal or test run to
see what results you get. If, however, you want more control, stay
with your personal Direct Mail program.

Card Decks are reputed to offer the lowest cost per lead of any
marketing or advertising method in any genre. It is your job, of
course, to make buyers out of leads. Special incentives, discounts,
and additional offers will often tip the balance in your favor if a
prospect is uncertain whether to buy or not. There are no
guarantees on the number of responses you will get, but historically
vendors receive an average of 300 responses to Card Deck offers.
Depending on your product, your offer, and the number of cards you
elect to send, you may get many more.

Compared to other much more expensive forms of advertising that


can yield virtually nothing, you will have tens to literally hundreds of
responses for your advertising efforts. If you find a targeted Card
Deck within your industry, or you are offering a new and unique
consumer product, there is a strong likelihood you will get hundreds
and hundreds of inquires.
Expect your first responses from a Card Deck within 5-7 days.
People will continue to respond for several weeks. If you want to
track how many responses you are getting, do not list your Website
where potential customers can go to order. You can put in an 800
number, but you will get more qualified prospects if you urge them
“To Fill Out This Card and Mail It Today!” It is very easy to pick up
the telephone on someone else’s dime, but it takes some effort to
find a stamp, fill out the card, and get it in the mail.

You want qualified buyers, people who have put forth a slight bit of
effort to reach you because they want to buy your product or
service. Offer a bonus if they mail the card within the next 10 days. If
you decide to provide an 800 number, be sure you and your staff
are prepared to handle the calls.

Creating urgency is important whenever you are selling a product or


service. Otherwise people will take forever to decide whether to
order, and that can mean never. Create urgency by providing
incentives and specials or with phrases like “while supplies last.”
Develop a strong, qualifying voicemail script for your 800 phone
number. In particular, give more information about the product or
service, and get their name, address, and phone numbers in
exchange. Send a letter with a brochure and price list, or call the
respondents to get an order. In either case, offer an added bonus for
placing a phone or fax order from your initial return call.

Credit Card Promotions

Also known as credit card syndications, these are the product and
service offers you receive with your monthly charge account bills
from gas companies, department stores, and major credit card
companies like Visa, MasterCard, American Express, and Discover.
The offers are printed on colorful glossy paper and enclosed with
the bill by the credit card company. Sometimes offers are printed on
the reverse side of the return payment envelope with a tear-off flap
order form for the customer to include when they make their monthly
payment.

Generally, the offers are for relatively low priced consumer-oriented


products that have broad and widespread appeal. Prices are rarely
more than $20-$30 per item, and more often than not the price is in
the $5-10 range. If your product could sell for these prices and still
leave you a profit, investigate finding a sponsor in the credit card
merchandising field.

A good place to start is with the bank that services your credit
card(s) and at the bank where you maintain your personal and
business accounts. Get the name of other credit card companies
from friends and relatives. Call customer service to request a list of
companies that provide products to your bank. Tell the customer
service representative that you have a tremendous product to offer
as part of their direct mail advertising, and ask them to direct you to
the person responsible at that bank.

Credit card companies are not in the product merchandising


business, so you may need to persevere until you reach someone
who is knowledgeable or willing to divulge information. Many credit
card companies have several to hundreds of “business partners,”
other companies that merchandise products in conjunction with the
credit card company’s billing cycles.

Two companies that you can contact regarding your product for
syndication are listed below. Send a brief sales letter and brochure,
or call first and see if they would like a sample as well. If you just
mail, be sure to call within a week to see if the sales letter arrived
and to inquire if they would like to see a sample.

Hanig Aspen Direct 800-473-8288


31 W.001 NorthAve.West Chicago, IL 60185
Attn: Importing

Japs-Olson Co. 800-331-7804


7500 Excelsior Blvd.
St. Louis Park, MN 55426-4516
Attn: Kathy Baker

Door Hangers

Door hangers are used primarily to announce activities or events,


and are often used for political campaigns. If you open an office
near a residential neighborhood, door hangers are a good method
for announcing your presence. Use door hangers to inform the
community of special sales events, as well. Advertising involves
creativity, so use your best intuition about what will work in any
given situation.

Your local printer can create a “flyer” for you using a standard
template to print a notice that will slip over a doorknob. The cut
extends several inches below the opening for knob itself, so you can
quickly and easily slip a “flyer” over most residential door handles.
Door hangers are legal to use. If you want to double check on the
legality or advisability of using them in your community, call your city
or county offices.
A very community-friendly approach to using door hangers is to give
the individuals who are hanging them for you some brochures,
flyers, or sealed envelopes with the same information. They can ring
the doorbell, smile, and hand deliver the information if someone
answers the door. “We want to let you know about our special sale,”
or “This is an invitation for you to come to our Open House.” Make
sure a phone number is listed for people to call for more information.
After your worker has delivered the notice, they should say
something like: “Please come,” and then leave.

You can hire junior high and high school students to place these
door hangers. If someone tries to engage them in conversation,
they need to keep moving and say: “Call the phone number inside.
They can give you all the details. I am just taking this information
from house to house for them.”

Under no circumstances do you want to place flyers, or information


of any kind within mailboxes. Doing so violates the U.S. Postal
Commission Regulations, and the penalties are severe. Make sure
that everyone who handles your literature is aware that they can
leave flyers on doorknobs, on fence posts, slide them under doors,
or under the front porch mat, but never put them in someone’s
mailbox.

Merchant Discounts:
Coupons and Direct Mailers

Merchant Discount Programs come in a number of formats. Some


are published by a local company or non-profit organization and
distributed within that area. Some merchant discount programs
involve large national companies with many regional offices that
solicit advertising locally, and combine their offers with some
national companies.

From previous chapters you know that there are a number of ways
you can offer discount and incentive programs through your own
advertising. You can create your own coupon book for your
products, either as a fundraiser with a local charity or for the benefit
of your customers and clients.

Merchant discounts vary, but the savings is quite often significant for
customers or potential customers. Merchant discount programs take
many forms. Some are in the form of a booklet of removable
coupons, others are plastic or paper cards that are punched for a
specific number of purchases, and still others are separate coupons
that arrive in an envelope in the mail.

Before you inaugurate a coupon program, study your costs and


understand what you can afford to offer without losing money or
giving the product or service away. Any time you offer a discount or
incentive program, carefully analyze your ratios. It is a good idea to
know what your cost per unit is, or in the case of a service business,
cost per consultation. Discount coupons are excellent marketing
tools as long as they do not swallow your profits. Make sure you are
still well in the black column in the ledger book after the discounts
are calculated, or find other incentive methods.

You need to make a good offer, especially in these nationally


syndicated coupon books and mailers. Otherwise, you won’t get
many responses and you will have wasted your advertising dollars
at the same time. Not every product or service is appropriate for
this type of advertising, either. You can get a good idea of the types
of products and services that work well in merchant discount
programs by studying local coupon books and the Val-Pak mailers.

Coupon offers present inexpensive products and services for new


customers. Merchant Discount Programs also increase the
frequency with which existing customers purchase products or
services. Coupon booklets are reminders for people to make
appointments for conditions requiring regularly scheduled
maintenance, such as automobiles, carpet cleaning, pet care, hair
and nail care, gardening and yard work, housekeeping, and many
other situations. Finally, coupons are incentives for customers to
become regular clients.

The national leader in mailed coupon packages is Val-Pak, that


familiar baby blue envelope that arrives every 6 weeks or so with
thirty to forty advertising discounts from local merchants. Over 50
million households receive the Val-Pak coupon envelope
approximately every six weeks. Val-Pak coupons are now available
online and consumers can download their choices. If you are
interested in inquiring about advertising with Val-Pak, you can find
your local office by visiting their Website listed in the Recommended
Websites at the front of this chapter.

If you are interested in starting or helping to start a Merchant


Discount Program in your community, you can purchase a manual
that can serve as a guide. Check the Recommended Websites
under “fundraisingcard.” Be sure to ask the questions you need to
know before purchasing the book.

Another nationally syndicated coupon book with local merchants is


the Entertainment Guide published by Entertainment Publications
Inc. They solicit restaurants, hotels, theaters, clubs, movie theaters,
and other entertainment venues in different areas. If your product or
service relates to entertainment on a national scale, you may be
able to get a listing in all the Entertainment Books nationally. If you
are in the entertainment field with a local presence, contact them
about offering discounts in their yearly book for your area.
The website for Entertainment Publications is listed at the front of
this chapter. You can sell The Entertainment Books as they are
always in demand or purchase them for gifts, promotions, or
incentives. Contact Entertainment Publications directly if you want to
purchase a quantity at wholesale prices.

Package Inserts

Whenever you mail an out-going product package, include


information about your company, the products, new developments,
etc. This is your way of thanking customers for purchasing, and
providing information on new products and services. Consider
having some one on staff develop a short newsletter, which can be
bi-monthly or quarterly. Provide interesting tidbits of information
about the company, the products, and the industry. Include such
things as the schedule for upcoming Expos and Tradeshows and
any appearances you have scheduled for TV or radio. As CEO, you
can write a regular column.

A company newsletter can also include staff profiles with digitally


reproduced pictures so your customers can place names with faces.
If your product lends itself to contests of any sort, customers will
enjoy participating in almost any game or contest you present. Be
sure you always include a product and price catalog or sheet with
every order. Some companies include a postcard asking for names
of family, relatives, friends, or co-workers who would enjoy receiving
information.

Promotional Products

Promos are small to significant gifts of appreciation you give to


clients or customers, visitors, potential customers, or employees.
Promos are free gifts you give to increase and maintain awareness
of your business. Use them in conjunction with other advertising or
as stand-alone tokens of appreciation. Use promos internally within
your company as incentives to increase performance or as a reward
to a vendor or employee for exemplary work or service.

Promo companies inscribe your logo, “hook” or USP (see Chapter


P-Publicity) along with your company name and phone number on
the products you choose. They can engrave the name of a special
client, customer, or employee for a truly personal special gift.
Clothing items, like hats or shirts, are fun for employees to wear
together especially in athletic competitions with other companies.
These simple items contribute to building company spirit, which can
bring increased job satisfaction and improved productivity.

Promotional items are excellent advertising, and are considered by


some to be the best vehicle for carrying an advertising message.
Standard promotional products are items people use everyday like
pens, magnets, mugs, notepads, watches, calendars, etc. Your
name and logo inscribed on any of these reminds people of your
business. Items like pens, mugs, and notepads get carried around
offices and into other offices, so more than just the recipient of the
gift sees your advertising.

There are well over 15,000 standard promotional items available


from a number of companies that specialize in these items. Some
companies advertise that they stock up to 700,000 products. There
are dozens of companies on the Internet that offer many similar
products. Go to any search engine and type in “Promotional
Products.” Check the Recommended Websites at the front of this
chapter PPAI, the Promotional Products Association International,
the trade association for the promotional products industry.

The PPAI says that the first promotional product coincided with the
birth of this country when someone issued commemorative buttons
in honor of George Washington’s inauguration. Since that day, the
industry has grown to nearly $12 billion a year by some accounts.
Promotional items work and they are a definite bonus to any
marketing campaign.

Promotional items are very effective for attracting people, and a


crowd, to your booth at Expos, Tradeshows, and Conventions. It
may require extra creativity, resources, and planning to relate
promotional products to your product line. If a relationship exists,
people will not only remember you and your company, they will
remember your products, as well.

Regardless of what items you decide to use, FREE gifts always


attract people. Anything unusual causes excitement and a crowd
because everyone wants to know what is happening. You will see
the same reactions if you have a promotional item available near a
retail display. A small gift item related to your product acts like a
magnet in drawing people to your point-of-purchase display.

Research conducted at Baylor University shows that a promotional


product included with a Direct Mail letter increases responses by as
much as 75%. In particular, when gifts were packaged in small
boxes or tubes, the response to the Direct Mail solicitation was very
high. Remember, people get mail everyday in standard business
envelopes. You want to stand out in their consciousness as soon as
they see the mail. “What can this be?” Psychologically, you create
interest and curiosity from the moment they see your package.
Give a unique gift, and people want to order from you. They want to
know you.
Another variation that costs more is to plan a Direct Mail campaign
with the idea that you will mail a number of promotional gift items to
the people on a specially selected list over a period of time, of
course. Give them time to order between each mailing. Use a list
with phone numbers and attempt to reach them on the phone.
A campaign like this can work as long as you have significant profit
margins, and you are intent on working the leads into solid, reliable
customers. It will not help you to send $25 worth of gifts to get an
order for a $20 product. Work in the way that best suits your budget.
As long as you stay within a budget, Promotional products are great
advertising at Expos and Tradeshows, in the retail environment, and
with Direct Mail.

All of these Quick and Quality suggestions require some


investigation on your part. Though they are relatively inexpensive
and easy to create, make sure you ask some questions of the
providing company to determine whether your product or service is
appropriate for the program. Of all of these programs, be sure to get
a brochure developed soon. You will find so many uses for it! A
brochure is like a flag for your company and product. Make getting
the first edition made a high priority. You can continue to make
changes and additions through each successive printing.

Use the other techniques and programs as you feel inclined to add
another feature to your marketing program. Card decks, merchant
discount programs, promotional products, and package inserts will
not take much of your time or resources, but are all likely to
contribute to sales and the growth of your customer database.
Credit card promotions may take some time and effort, but if your
product is right for the medium, you could stumble onto a gold mine.
All of these programs are fun, and they offer quality returns.

INTRODUCTION AB CD E F GH I J K L M N O P Q R S T UV W XY Z LINKS
a
mm RADIO

R
Recommended Books

60 Seconds Sells: 99 Hot Radio Spots for Retail Businesses by


Michael Redmond - Whether or not you are in retail, here are 99
great radio ads to adapt to your product or service in many different
categories of businesses.

Effective Radio Advertising by Marc C. Weinberger, Leland


Campbell, Beth Brody - This book will help you understand the
difference between good ads that work and bad ads that do not. You
will also appreciate what radio has to offer, as well as the flexibility
and targeting factors that make it an attractive advertising medium.

Radio Advertising: The Authoritative Handbook by Pete


Schulberg, Bob Radio Advertising Schulberg, Peter Schulberg -
The comprehensive guide to radio advertising covering every area
including format, markets, buying time, integrating radio into a
complete marketing plan and more. Written with practical advice and
humor by a veteran of the industry.

Recommended Websites

http://ajr.newslink.org/rneradi.html -The American Journalism


Review provides links to various types of radio stations. These are
the links to news/talk stations in the U.S. There are eleven pages of
stations. You can link from this website to each one, and many have
email addresses for contacting them.
http://ajr.newslink.org/statradi.html – Another series of pages
from the American Journalism Review which lists radio stations in
the United States by State. You can link, and email to many of
them.

http://members.aol.com/_ht_a/radioinfom/page/index.htm- Find
out more about production and purchasing time slots for a 30 minute
radio infomercial here. Mide Consulting will assist you. They receive
commission from the stations, so ask all the questions you need to
understand the process.
www.radioairtime.com/buyradio.htm - Radio Airtime has
affordable rates nationwide for commercials and infomercials.
Whether you are looking for 30 or 60 second spot, or a radio
infomercial, compare their prices with local quotes to find the best
deal for you. 1-888-368-4252.
www.radiotalk.org/alltalk.html - This website lists stations with
a talk only format in the U.S. by call letters, city, state, and dial
settings. Link to each website. Get a list of News/Talk stations as
well.
www.rronline.com - “The Radio and Records Industries
Information Leader.” You can find websites for many talk radio
stations by scrolling to Radio Websites and clicking on News/Talk.
www.web-radio.fm/fr_newstalk.html - A Directory of News/Talk
Radio stations in Canada and the U.S. Listed by call letters, dial
settings, city & state or province.

Radio is one of the most flexible mediums for marketing your


products. You can choose the station, the hours, and how often you
want your advertisement broadcast. You target potential customers
almost as successfully as in Direct Mail. Since every radio station
has a definitive format, target stations that are most likely to appeal
to your ideal customer. Radio stations retain their format and covet
their listeners, so knowing the general age range and interests of
your target audience, select stations that would appeal to them the
most.

Radio is more a part of our lives than any other media. Virtually
everyone listens to the radio. Statistics show that 98% of Americans
households have radios, and 95% of our cars have radios. Figures
also show that 95.5% of Americans listen to the radio every week.
We wake to it every morning to get the traffic, news, and weather
before leaving home. We drive to work and home again with the
radio entertaining us. We play it on the way to shopping and while
taking the kids around town. We listen while doing household chores
and fixing things in the workshop. We have the radio on while doing
yard work and gardening. We even listen to the radio while working
on the computer.

Most adults listen to the radio for as much as three hours a day.
Radio delivers information that helps us plan our lives. We develop
a natural affinity and belief in what we hear. The trust we develop in
what we hear on the radio has a positive effect on the credibility of
radio advertising. Advertising is legitimatised because of the other
functions radios serve for us.
Radios are universal, accessible, and personal. Radios are close to
us, in our bedrooms, bathrooms, and virtually every room of our
homes. The radio is a friend. People feel very sociable with the
hosts of programs that they listen to regularly. There is a
relationship of trust and faith that radio will provide us with the
information we need and want.

Most households have at least 5 radios, one in each car, one in the
bedroom, one in the kitchen, and one in the family room or living
room. In addition, teenagers have their own radio-stereos. The radio
can be on in virtually every room of the house, with four or five
stations playing at one time.

TV has become more fragmented with the addition of more


networks, cable, and satellite dishes that carry hundreds of stations.
TV advertising offers product providers less opportunity to find their
target market in a more and more diverse industry. Newspaper
readership is on the decline as our busy lifestyles consume us, and
people do not have the time or do not find the time to read the
newspaper.

Radio allows us to have our hands and eyes free to do other things
while we listen. It either entertains us or provides information while
we are busy with other activities. Research shows what successful
advertisers know: listeners retain information from radio
advertisements even though they are involved in other activities at
the time. Be one of those special advertisers that informs and
makes people stop, listen, and pay attention to your message!

Product providers who advertise on radio like being the sole


feature during a 30 or 60 second spot. While your advertisement is
playing, just your message is before the listener. You do not have to
compete with any other advertisement as you do in print media.

Radio is cost efficient. It has the possibility of reaching thousands of


people at one time. Repeated airings of the same message in a
short period of time means potential clients may hear your message
more than once. Your product or service takes on more importance
in their mind when they hear the message for the second or third
time. The frequency with which your listeners hear your
advertisement is very important in radio. Listeners must hear your
spot so that from sheer curiosity they will inquire. Your first
responses to a radio campaign might take more than a week for the
simple reason that the listeners have not made a decision.

Since radio is experienced entirely in audio, you must paint a picture


in your prospect’s mind. Words can evoke vivid images and seeing
the product is not as important as conveying the benefits to your
prospect. Radio costs significantly less than television, and you
have a far better chance of catching the attention of a radio
audience. Not only is TV fragmented these days, viewers often hit
the mute button when the advertising comes on.

Your advertisement has to be good, and unusual. Another feature of


radio for you is the more spots you buy, the less you pay per spot.
More than likely you will want the commute, or “drive time” slots, to
reach the largest captive audience. In some areas you may have to
pay almost twice as much for the radio prime time hours as the non-
commute daytime hours or nighttime hours.

You will find all the radio stations that broadcast in your area in the
Yellow Pages, or you can access them on the Internet. Radio
stations are often listed in the entertainment section of the Sunday
newspaper. Call each station and ask for the ad rate sheet to get an
idea of the prices for different time slots in your area. Also ask each
station their specialty i.e., news/talk, all news, classical, jazz, top 40,
oldies, country-western etc.

There are more than 20 different radio formats in the United States
today, and more than 10,000 radio stations. Beginning to advertise
locally in your area makes the most sense. In addition to the ad
sheet, ask each station if they have demographic information on
their listeners. Tell them you are planning to buy advertising and you
want to know who listens to their station.

You personally do not need to research the stations, call them, and
ask for rates and demographics. Have someone do this for you,
and study the information. If creating radio advertising feels
premature to you now, get the information and look at the prices so
you know what to expect. You may be pleasantly surprised how cost
effective and relatively inexpensive radio advertising can be.

As indicated, radio’s greatest benefit to you is that each station


appeals to a specific and generally very loyal audience. Each station
has a certain type of programming and the announcers, hosts, or
DJs have their particular personalities. People are loyal listeners to
radio because of their music or listening preferences, and because
they get attached to personalities on a particular station. Some
people listen to all news stations all the time, others listen only to
jazz or classical, and others listen to easy listening, or golden oldies.
Teenagers listen to what other teenagers like, and no one else likes
their music, especially their parents!
Radio makes an excellent advertising medium because of the focus
of the audience, the interests, lifestyles, and relative ages. You often
have a perfect target audience awaiting you. Stations sell
advertising so they generally know what their listeners are interested
in buying, and they can be of tremendous assistance. Sometimes
you can pay announcers or DJs to read the advertisement. To
listeners, the voice of their favorite personality presenting
information on a new or unusual product or service is like an
endorsement. Listener loyalty is a big factor in radio and it can be
used to your advantage, so be sure to inquire if an announcer will
record the script. Before you approach any station, listen to the
various hosts to get a good sense of their voices.

Approximately 18-20 minutes of every radio hour is used for


advertising. Radio spots are generally 30 seconds or 60 seconds.
Some stations offer 15 second spots. The cost of these incremental
units varies tremendously by geographical location, and the time of
the day. The “drive times” of 6 am-10am and 3pm-7pm are most
desirable for advertisers. Most of the audience is in their cars,
captive and listening. The morning is the most valuable because
people don’t want to be late for work, and they are tuned to the radio
to hear what is happening with traffic and weather.

Since radio is a personal medium, write your advertisement as if


you are talking to another person. Be passionate, be convincing, be
cheerful, be concerned, be caring, be giving, be helpful, be hopeful,
and be generous. Make your message different, whether someone
is in the car and late to work, at home doing the dishes, running
errands about town, or waking up in the morning, you want them to
pause and listen to the message in your advertisement.

Radio is special and unique because the whole message takes


place in the mind of the listeners. Do what you can to make yours
out of the ordinary and unusual. People love to hear a child’s voice.
Have a conversation with a child. Use background sounds or
music. Stand out.

Another great feature of most radio advertising is that you can target
a specific geographic area with your message, unless you advertise
during a nationally syndicated program. It is unlikely you will start
radio advertising with a national show. Test your ad in a local region
where you can use other media to support the radio advertisement.

Place an ad in your local newspaper at the very same time you are
running radio ads. Link the newspaper to the radio advertisement so
the reader immediately makes a connection between the two. Use
the same key words and phrases. In the print ad, use a picture of
the product if appropriate, list your company address, phone
number, and website. Highlight all the benefits again. Remember,
potential customers need to see a product or service advertised a
number of times. Radio reinforces what they read. What they read
and see in the newspaper comes immediately comes to mind when
they hear about it on the radio.

If you have advertised in the Yellow Pages, refer to that ad in your


radio advertising. You will create an awareness of your company
and its services in the public mind. As you know, the Yellow Pages
lists page upon page of companies in various categories. When
someone goes to the Yellow Pages, your company is familiar and
stands apart from all the other listings if they have heard you on the
radio.

Radio advertising and Yellow Pages advertising are mutually


supportive. Radio keeps the public aware of your Yellow Pages
advertisement. Your Yellow Pages advertisement can provide
important information to augment the radio: “See our ad in the 2000
Suburban Yellow Pages, page 469, that’s page 469, and give us a
call. We have a special gift waiting just for you.”

Start a Direct Mail campaign after you have run your radio
advertising for a week or so, and refer to the radio station on which
you advertise in your sales letter. Direct Mail can target a
geographic area more thoroughly than any other advertising.
Sometimes people toss what appears to be advertising aside, or
directly in the trash. Send a number of different pieces, including a
free gift or gift certificate, to the same household in a Direct Mail
campaign.

If you are targeting a specific geographic region, consider using


Outdoor Advertising in conjunction with your radio advertisement.
Outdoor Advertising attracts the attention of drivers who are drawn
to bright and colorful images. Billboards are available in one of three
standard sizes. (See Chapter O-Outdoor Advertising.)

Commuters are exposed many times to Outdoor Advertising, every


day for the period that it is posted, which is usually 30 days. Outdoor
advertising alone is limited because the commuter, or driver only
has a few seconds to absorb the information. Radio, however, is
informative. You have the time to convey your message. Radio and
Outdoor Advertising are excellent together because Outdoor can
project images of your product or service while radio can present the
benefits.

Radio is a tremendous advertising venue for your website. You


probably noticed that 1999 was the year that dot com businesses
took over the radio and television airwaves. The newest of business
forms began buying a significant amount of traditional advertising
media.
The Internet is so vast that Website owners, or dot com businesses,
discovered that they need advertising as much as anyone else to
make people aware of their products and services. Accidental
surfers that happen by a Website are not qualified, knowledgeable
and ready buyers.

Radio is a terrific medium for advertising a simple Website address,


or URL. If your Website address is complicated, stay with print
media where the potential buyer can cut out the address and carry it
to his/her computer. If your Website is the name of your
product.com, consider advertising on the radio like some of the
biggest Internet companies. You may think they are advertising a
Website when you hear the ad. In reality, they are advertising a
business with product or services to sell, just like you.

To begin your campaign, narrow the stations to use for your


advertising to two or maybe three. You can expand after you see
how this medium works for your product. You may know the stations
well. Regardless, listen to them with the ear of an advertiser. Listen
at different times of the day. Listen to the kind of ads that are
running, and imagine your product as part of that group. If you feel
that you have found a compatible situation, pursue arranging to
purchase time slots and getting a high quality recording of your
message. Eliminate any station that fails to meet your criteria for
broadcasting to the audience you want to target. Continue to be very
selective.

Radio offers the unique opportunity to air your message in the time
periods of a 24-hour day that you want to have your message
broadcast. Plan your first radio advertising campaign for a relatively
short but concentrated period of time. Start with two or three weeks,
and plan to run more than one spot a day. In fact, run several spots
a day, several times a week. You want potential customers to hear
your advertisement more than once. Any one of the above
mentioned media will reinforce your radio message.

This one campaign for the radio alone could cost anywhere from a
thousand to several thousand dollars depending on the targeted
area. That figure is just the cost of the airtime. You have the costs of
producing the actual commercial, as well.
Create the commercial yourself. Who else knows your product or
service as well as you? After all, you write the copy for all your other
advertising. The radio station may attempt to convince you that their
staff has experience and knowledge. What they are offering to do
will make your product sound like every other product. They are
likely to insist there will be no extra charge.

Ask yourself what a free advertisement is worth. Hold firm to your


position. Write and design the message yourself. Speak it as you
write it, so you can hear the sounds. People will tune out if you talk
about you or your company. They want to know what your product
or service will do for them. Remember: benefits, benefits, benefits.

You may know that it takes longer to speak a message than it does
to read it. Most 30-second spots contain less than 70 words.
Mention your company by name at least three or four times during
your spot to reinforce who you are. You may not have the best voice
to record the version that airs, but practice your radio commercial on
a number of people to get feedback on the sound, rhythm and
content of the spot. Make any adjustments and additions before
hiring a professional to record it.

Approach the radio station you selected to see if a host from one of
their shows will tape your message, or for recommendations of
experienced local talent. The rhythm of the spoken word has a
cadence to it that professionals know and understand. Sound travels
across the radio airwaves differently than if you are having a
conversation or speaking to someone directly. Regardless of who
performs the message, you want a clean, clear tape for the station
to play.

Having a professional or professionals deliver your message is very


important in conveying your message to your audience.
Professionals understand the subtleties of sound volumes for
creating intimacy and excitement. Plan to invest in a good voice to
deliver your message. You can work with this individual but chances
are good he/she will understand how to dramatize the benefits and
bring on the excitement at the right moment.

Be sure to evaluate how appropriate radio advertising is for your


product or service before spending time or money. You now
understand some of the benefits and some of the disadvantages
that radio offers. If your product is familiar to many people, you have
an obvious advantage. Since the listener cannot see what you are
offering, he/she must rely on the imagination to produce a
recognizable image. Products that necessitate a visual
demonstration do not advertise well on radio. Highly visual products
are best to market at Expos and Tradeshows or on Television.

If your product or service can be adequately explained and


understood without sight, radio is likely to work quite well.
Remember most people don’t buy because of the way something
looks (except maybe diamonds, clothes, and cars.) We all know that
there are other items in life, right? What usually causes a sale is
emotion. Someone feels right about a product or service. They
believe it is right for them, or it will help them. Radio can emphasize
the emotional aspects of products and services more than any other
media.
Some interesting statistics have emerged recently about women
who listen to radio. According to Bill Burton, COO of The Detroit
Radio Advertising Group, workingwomen spend 63% of their media
time listening to the radio. There are nearly 61 million
workingwomen in American today.

Workingwomen comprise 46% of the entire workforce. 8 million


women own their own businesses, and 80% of all checks are written
by women. Women listen to a lot of radio, write a lot of checks, and
control a great deal of wealth. As you write your product or service
advertisement, know who is waiting to buy your products.

When you are writing your offer, remember the abbreviations, KISS:
Keep It Simple, Silly. Without visuals you rely on the listener to
conjure up images that make what you present real and alive. As
with most advertising copy, less is actually more. Use the same
guidelines repeated throughout this manual, AIDA: Attention,
Interest, Desire, and Action.

Have a strong headline that gets the listeners Attention. Asking


questions on the radio is often a good way to set a conversational
tone. Once you have their attention, hold their Interest with the
benefits. Use a hook or USP if you didn’t use it for your headline.
Pick your words carefully. You can always add copy if you find you
have some time left in your spot. Remember, music or sound effects
take seconds, and as does dramatization and delivery.

Follow your benefits with some offer that creates the Desire.
Something FREE always gets people wanting what you have.
Finally, close with a call to Action. Get them to call, come by, write,
look in the Yellow Pages, or direct them to a website or Billboard.
When giving an address, leave out the numbers and just give the
cross streets, as “located on 8th & Pine next to---.” Phone numbers
on radio are very difficult to use unless the number is very simple.

Though you can buy both 30 second and 60 second time slots, in
many areas the 60 second spot is only 1/3 more than the 30 second
spot, which gives you more value for your money. Part of your time
is absorbed repeating the company and product name, and
repeating directions and or a phone number. Seriously consider
paying for the added length of a 60 second spot so you can hold the
audience captive and deliver your message adequately.

One way to get FREE publicity is to promote your business with a


Big Radio remote broadcast. Invite a radio DJ to your location. The
station broadcasts from your location, and the DJ reads your
commercials live while he is broadcasting. This jointly sponsored
affair is good promotion for both of you. The radio station brings
DJs, support personnel, and free gifts for shoppers. They also
create a spectacle in your parking lot with all their vehicles. People
come from all around to see what is happening. All the activity is
great publicity for your business location.

Provide or sell inexpensive food and drinks, give discount coupons,


and prizes, as well. A Big Radio event is especially advantageous to
product providers with retail outlets. However, any business location
can host a Big Radio event and the public will suddenly appear in
large numbers. Outdoor events in good weather attract even more
people.

Though the event provides great publicity, the real advantage to you
are the live airings of your spots. You may be able to negotiate as
many as 30 or more spots while they are on location at your place of
business. You can bet that people listening will know where you are
located by the end of the day.

Big Radio Events are fun. The first time will involve some extra
planning by you and your staff to create a day that is enjoyable for
everyone. Be sure to get a list from the station of all the supplies,
i.e., large tables, chairs, display boards, electrical equipment, etc.
that they need you to provide. Have extra tape, markers, and display
boards available. Shopping for needed items the day of the event is
no fun for anyone.

After the event, send a hand written note to both the DJs and the
station manager thanking them for their time. Include a product, if
feasible, or a small gift with your logo. They are likely to remember
you next time you invite them back.

Talk Radio is another FREE radio opportunity for you. You will need
to brush up on the facts and figures of your industry or a special
interest of yours that you can link to your product and/or your
company. Being a guest on Talk Radio at any of the nearly 1,000
exclusively Talk Radio stations, or any one of the over 3,000
News/Talk stations in the United States is not that difficult to
arrange. Canada also has a number of Talk Radio stations. Each
one of these stations needs guests everyday.

You absolutely do not have to be an expert, but you either need to


be knowledgeable or have an interesting slant on some issue. You
are as qualified as anyone else in the area in which you have
knowledge and expertise. The procedure for getting on Talk Radio is
to inform the radio stations where you want to appear that you would
like to present a timely or current topic during their programming.
Any topic is timely or current as long as you demonstrate passion
and conviction.
You will be invited as a guest on a Talk Radio show because of
what you know or believe. Make only brief references to your
product. You can mention both the products and the company, but
you are not appearing to advertise or market your products or
service directly. You can have customers, friends or relatives call in
to talk and give personal testimony about what the products have
done for them. Stay with the format, answer the host’s questions,
and respond to the audience honestly and truthfully. Make
reference to the products or your company occasionally and only
when it is appropriate.

You can be a guest on any Talk Radio show in the United States or
Canada. The station manager or the host of the show calls guests
who are a long distance from the radio station for a remote
interview. Distance creates a mystique and importance about you
and what you have to say. The radio station will call you at a
designated time either at your home or in your office. The host
interviews you as though you were sitting next to him/her in the
station.

The format is the same as if you were in a radio studio. Listeners


call in with questions or comments, and you talk to them as well.
Because radio is entirely an audio experience, the format of your
being on the telephone works fine. If you are at home, be sure to be
in a quiet room away from distractions and noises of babies, young
children, dogs, and doorbells. Whether you are at home or in your
office disable call waiting and block any other background noises.

Any topic works for Talk Radio. Remember, more than 3,000 radio
stations schedule guests at least five days a week. Any topic on
which you can speak with some authority that has anything to do
with making life easier or more enjoyable and fun will work.
Combine the ideas of several experts and develop a new
perspective on some issue of local or national importance. Pick a
topic or subject that you can relate to your products and/or your
company so you can mention them sensitively at least several
times.

You must believe in the subjects about which you speak. Unless you
have a great passion or interest in your topic, you will not appear to
have the conviction that is necessary. Take some time to develop
your ideas. Talk Radio offers you a tremendous opportunity for
exposure to a large audience. It is reasonable and logical that you
want people to know how your company and how your products are
solving problems or making the quality of life better for people.

Listen to local programs and long distance ones on the Internet to


get an idea of the personality and style of the hosts. Hosts are
generally pleasant and accommodating to their guests. They will
assist you and guide you by asking questions. Be sure to send a
handwritten note to the host as well as the station manager thanking
them for the opportunity to appear as a guest. Always take a few
moments to thank those who contribute to your success whether it is
a customer or client who buys frequently, the staff and DJs who
come to your location for a Big Radio event, or the host and station
manager of a Talk Show program on which you appear.
Appreciation and goodwill go a long way.

Radio interviews are similar to making an appearance on a Talk


Show, but the format is shorter and often recorded for re-broadcast.
If your topic is very newsworthy, the interview may appear as part of
a news program. Let your local radio stations know of your
expertise. They will contact you for comments, or schedule you for
an interview for many different kinds of programming.

Your Press Kit is a convenient introduction to your company. Use it


to full advantage. Let your local radio stations know who you are
and where you are. Radios do not send out surveys looking for
expert advice. Tell them what you know and become a local expert
for them. You can actually provide the same availability to your local
newspapers. Remember, publicity is FREE advertising, and though
you cannot control it, you can always make it beneficial through your
own efforts.

Often a radio interview results from a Press Release your company


sends to the news media. They call you for more information and
schedule an interview at your location at your convenience. You
can use an interview to mention your products if they relate in some
way to the subject of discussion. You may want to mention the
company, as being in the forefront of------, or developing-----, or
having a solution for-----.

Public Service Announcements are another form of FREE radio


advertising. Inquire from your local radio stations what their program
is for Public Service Announcements, (PSAs). Get them to send or
fax you their policies and information sheet. PSAs are short,
recorded messages by citizens advocating a subject of popular
interest, or voicing an objection to a previously recorded statement.
You could state a position, defend it, and say that you are the
President of -----Co., but you really would not have much more time.
The time you have to speak is rarely more than 3 minutes, and
usually much less. PSA information is valuable to have on file,
regardless of whether you can foresee a use for it at the current
time.
One final method of obtaining FREE publicity in radio is to inquire of
radio stations if they would sponsor a “P.I.” deal. As with all P.I.
deals, your product has to have a good profit margin to make this
arrangement work. In a P.I. deal, the radio station advertises your
product at no cost to you. When an inquiry results in a sale, you pay
them a percentage of your gross, sometimes as much as 50%. The
percentage depends on what you negotiate with them. Most
stations would rather have a published ad rate sheet, let you
advertise, and make your money.

P.I. stands for per inquiry and it amounts to the radio station joint
venturing with you on your product. Since radio stations are in the
business of entertainment and not advertising and sales, finding a
situation that works will take time. However, if time is what you
have, then definitely pursue this opportunity. Two sources for radio
stations that you may want to consult, besides those listed in the
Recommended Websites, are the Broadcast Yearbook on U.S. radio
stations, and the Standard Rate and Data Services Directory on
Spot Radio (SRDS). You can find these at your public library, or
have your librarian borrow them from another library.

If you use the Internet, you can attempt an email to the station’s
Marketing and Sales Manager. You may want to find names of
individuals by either calling or checking reference books. You can
email the station and ask for the name of the individual involved in
arranging PI deals. There are over 10,000 radio stations in the U.S.,
and each one advertises. You can start anywhere, but if you start
near home you can visit them personally with samples of your
product. It may not take long to reach a station that shows interest
or it may take awhile.

Be sure to have a package of information ready to send if you are


unable to meet with them in person. Include the scripts you have
written for the commercial. Do not include too many. One or two of
the 30-second version and one or two of the 60-second version are
sufficient. Include a sample of the product, if feasible, and several
brochures as well. Have a lawyer help you draft a simple Per Inquiry
Advertising Contract between you and the station. It is thoughtful
and helpful for you to include a self-addressed stamped envelope
for the station personnel to mail the contract back to you.

Write a short cover letter reiterating the oral agreements that you
have made with them, and mention the enclosure of the product
sample and/or brochures. Ask them to review the contract at their
earliest convenience, copy, sign, and return to you in the enclosed
envelope.

Make certain that your contract states the advertising period by


dates and the time slots that it will play each day. This is extremely
important to your success. If they play your commercial only at 3 am
you are not likely to get the responses you want. All the details of
the airings and the times of the airings should be negotiated before
you present a contract. Get an agreement in writing and then submit
the contract as a formal arrangement. Ask for an affidavide of
airings before paying them.

Retain the role of fulfilling product orders yourself. If the station


takes the orders and mails product, you lose contact with your leads
and customers. You can negotiate the fulfillment role by giving them
a few more percentage points of your profits. You want to be able to
make contact with all the inquiries, as well. As you know, some
people want to know more before they buy a product, and you have
to talk to them.

Tell the radio station you have the facilities for fulfillment (whether
you do or not, you will by the time the orders come in), and that they
will get a report weekly or monthly. Dedicate a separate 800 line so
that you do not mix the responses to these radio ads with any other
advertising.

Radio is an exciting medium for marketing your products. Everyone


listens to radio, and everyone has one or more favorite stations.
Radio stations have unique formats that appeal to specific
audiences so targeting demographic groups is relatively easy.
Although people are often involved in other activities when they are
listening to the radio, your advertisement is all that is broadcasting
at that moment. Get the listeners’ attention and you will have a
captive audience. Make your message so intriguing, whatever
people are doing, they will stop and listen.

Radio is the most personal of advertising media except possibly


Direct Mail. It is also inexpensive when you calculate how many
people you reach with one spot. Stations have reliable statistics on
the average numbers of listeners for different time slots. Ask your
station for the information that they have on listeners during the
days and specific hours you plan to air your commercial.

To get a first run cost, divide the cost of the production of spot plus
the cost to purchase the first airtime by the number of thousands of
listeners. Every additional run is the cost of that broadcast divided
by the thousands of people projected to be listening at that point in
time. Another way is to amortize the production costs for the entire
commercial. Regardless, the cost is likely to be considerably less
than a dollar per person for each broadcast.

Frequency of broadcast creates familiarity with your products on


radio, so either plan many spots in a concentrated period of time or
augment your radio advertising with other media to reinforce your
message.
Radio offers several FREE advertising options such as a Big Radio
event, appearing as a guest on Talk Radio, giving an interview for
news or other programming, and arranging special PI sales deals.
In each case, you have to take the initiative to create these FREE
advertising opportunities for your company. Always be sensitive to
what the station expects and minimize overt advertising of your
product. The one exception is the PI deal because the purpose is to
sell product. Be courteous and generous and you will be invited
back.

Have fun with all options before you!

INTRODUCTION ABCDE F GH I J KL M N O P Q R S TUV W XY Z LINKS


a
mm SELLING AND CLOSING THE SALE

S
Recommended Books

5 Steps to Successful Selling (Abridged) by Zig Ziglar - Zig Ziglar is


one of the world’s foremost master motivators. He maintains that
mastering the art of selling is what makes great salespeople. Selling
is not an inherent capability. It is a learned and practiced skill. This
audio cassette series emphasizes that the foundation of success in
selling comes from a positive self-image, one of five elements
necessary to master the art of selling.

25 Sales Secrets of Highly Successful Salespeople (abridged) by


Stephen Schiffman - This is an audio cassette series from “America’s
Number One Corporate Sales Strategist.” Mr. Schiffman shares 25
traits that will allow you to become a “high efficiency salesperson.” In
this practical, “results oriented” guide to selling, Mr. Schiffman
maintains that applying these 25 traits consistently will increase your
sales exponentially. You will find this 4 cassette series a
comprehensive guide with techniques that never fail to make sales.

The 25 Sales Strategies That Will Boost Your Sales Today! by


Stephen Schiffman - America’s #1 corporate sales trainer offers 25
simple, straightforward strategies for boosting your sales. Put these
strategies to use and you will not only generate more sales, you will
find you can establish, expand and maintain those important business
relationships. Some of these strategies are: Take Immediate Action,
Be Punctual, Seize Opportunities, Return Calls Within 24 Hours, Ask
the Right Questions, Put the Prospect’s Interests First, and Keep the
Closing Phase Simple. Every one is a gem of wisdom and insight,
and your sales process will just keep getting better and better as you
apply more principles.

365 Sales Tips for Winning Business by Anne Miller- This book is
a guide based on the author’s Year-in-a-Box calendar of the same
name. Designed as a tip-of-the-day inspiration for the sales person,
the book provides ideas, thoughts, and insights every day of the year.
Sample areas include: probing, listening, presenting, handling
objections, closing, negotiating, building relationships, creative
thinking, working smart, and attitude and motivation.
2000 Professional’s Guide to Target Marketing: How to Gain
Profitable New Business by David W. Cottle This book is about
establishing relationships with your customers that are meaningful and
sustainable. You know you are successful when your clients
appreciate the help and assistance you give them as a professional.
Included in the book are chapters on How to Get More and Better
Referrals, The Anatomy of a Sale, Making Your Telephone a ‘Power
Tool,’ Prospecting, Presenting Your Solution, How to Handle
Objections, Planning for the Future with Your Clients, and much
more.

The Academy of Master Closing by Tom Hopkins - This audio


series runs about an hour, and is a tremendous way to “attend” one of
Tom Hopkins seminars. Hopkins is considered by many to be the #1
sales trainer in America. In this series he shares the secrets the very
best sales people use to Close a Sale. Tom teaches you how to
gently bring the prospect to the decision to purchase. His techniques
are so subtle prospects are not even aware they’ve been sold.

Advanced Selling Strategies: The Proven System of Sales Ideas,


Methods, and Techniques Used by Top Salespeople Everywhere
by Brian Tracy - This book is based on the audio cassette and
seminars of one of America’s leading sales trainers. His “The
Psychology of Selling” has taught over 600,000 salespeople in the last
ten years. This book is a careful and deliberate examination of every
aspect of the sales process from initial planning, to presentations, and
finally to closing techniques. This is a hands on guide loaded with
techniques to improve performance. The book is also about attaining
the next level of performance. Whether you are new to selling or a
long time pro, this book will motivate you to another level, and not only
make you a better salesperson, but also make you better at
everything you do. The same material is available on audio cassette.

Bottom-Line Selling: The Sales Professional’s Guide to


Improving Customer Profits - by Jack Malcolm – This book is for
sales professional or if your product or service is business to
business. The book teaches how to uncover and understand a
company’s financials before attempting to sell to them using annual
reports, other available sources, and the Internet. The tenet is that you
not only need to understand what your product or service will do for
customers, but you need to understand how it will affect their bottom-
line. Understanding this increases the probability of making a
successful sale. Basically you can’t expect to help solve business
problems for your customers until you really understand their
business.

Can I Have 5 Minutes of Your Time? A No Nonsense Fun


Approach to Sales by Hal Becker, Florence Mustric (Contributor) -
Written by Xerox’s #1 salesman, this book is in its 11th printing in the
year 2000, and is rapidly becoming a classic for both the experienced
and savvy professional and the beginner in sales. The idea is to
present a fun approach to sales. Becker makes the complicated
simple and easy to understand.

Close More Sales: Persuasion Skills That Boost Your Selling


Power by Michael M. Stewart - Though endorsed by several large
Fortune 500 companies, this book is about individual selling by a
professional sales trainer. Topics include moderating hard-driving
sales; making closes more like consultative selling; using a customer-
centered approach to sell what the customer values; mastering the
entire sales process; proper planning from listening intently to the
customer to asking for the sale; and building your confidence through
expertise.
Close the Deal: 120 Checklists to Help You Close the Very Best
Deal by Sam Deep, Lyle Sussman, Sandler Sales Institute -
According to the authors: “Masterful sales professionals are neither
lucky or gifted. They do not dream, wish, or hope for victory. They go
out and make it happen.” The Institute trains thousands of sales
professionals. The book is full of practical tips and advice on finding
and analyzing buyers, determining their needs, and completing a sale
with topics such as Fifteen Steps to Better Listening, and Seven Fears
all Buyers Have.

High Probability Selling: Reinvents the Selling Process by


Jacques Werth - This book shows you how to find and set
appointments with potential customers who want the benefits of your
product. The book shows how to establish mutual trust, and how to
get to mutual agreements. Statistically 84% of the highest producers
in 23 different industries have developed, on their own, and intuitively,
the elements of a new sales model. The new model is “user friendly”
and is centered on values like integrity, honesty, and sincerity. This
value-oriented system empowers the salesperson to be the best that
he/she can be.

How To Master the Art of Selling by Tom Hopkins, J. Douglas


Edwards (Introduction) - Tom Hopkins is a master and champion
salesperson. If you want to be one or both, read this book. You will
learn everything you need to know to thrive in the sales environment.
According to many of his readers and followers, this book is the single
best training book on sales there is, and the best book ever written on
professional selling. One reader calls it “the essential manual for the
Art of Selling.”

The Sales Bible by Jeffery H. Gitomer - This book is about proven


techniques, and is “to the point, humorous, and engaging.” It offers
over a thousand techniques and is “a gold mine of practical, hands-on
information.” One reader claims to attribute “thousands of dollars in
sales tips” from this book. The book discusses how to cold call, how
to get an appointment, how to use voice mail to your advantage, and
how to make selling fun. This is the “ultimate book for sales people in
any industry,” according to another reader. The book gets to the very
essence of what sales is all about, relationships. The package
includes the book, a DOS format interactive computer disk and flash
cards.

Sales and Marketing Magazine - This award-winning marketing


business magazine is for top executives in marketing, sales, and
management. Each monthly issue delivers news, opinions, original
research, investigative reports, and interviews with the “titans” of
today’s business.

Secrets of Closing the Sale: Strategies and Guidelines You Need


to Become Proficient in the Art of Effective Persuasion by Zig
Ziglar - This is another audio cassette program where you can
receive the essence of a seminar with Zig Ziglar for a fraction of the
cost. To be the very best salesperson means you must care about
the people you serve so much that you find a solution that works for
you and for them. Ziglar’s ideas provide insights for novices and
seasoned professionals alike.

Selling Power Magazine - This is a leading magazine that keeps


readers up-to-date on selling and sales management. The magazine
helps readers expand selling skills and use new technologies through
expert advice and motivational aids. Be sure to see the magazine’s
website under Recommended Websites.
Ziglar on Selling: The Ultimate Handbook for the Complete Sales
Professional of the Nineties by Zig Ziglar - Master motivator Zig
Ziglar uses his forty years of sales experience to provide practical and
inspiring ideas on how to find prospects, how to deal with rude
individuals, and how to close the sale, how to deal with stress, how to
use the telephone, and much more. The book offers checklists,
questionnaires, and time logs.

Recommended Websites

www.salesdoctors.com - “The weekly sales magazine written by


sales experts to help you sell more of any product or service and keep
your customers coming back.” You will find 12-14 new sales, service,
marketing, and management articles at this website every Monday
morning. More than 1,000 previously published articles on sales,
advertising, and marketing are easily accessible. Other resources
include an extensive list of U.S. and Canadian advertising
associations.

www.sellingpower.com – The Website for Selling Power Magazine:


Your Daily Guide to Sales Success. Selling Power offers 6 Channels
of Information. Daily Features offers articles on management,
motivation, and skills, as well as a Top Story and E-News. Online
Exclusives offers a number of programs including workshops, online
specials, tech action and more. The Magazine channel carries back
issues of Selling Power, resource search, the current issue and more.
Subscriber services deals with corporate accounts and other services.
Books and Posters and Audio/Video are the other channels. You can
get a free sample copy of Selling Power at this site.

More popular literature is available on sales, the selling process, and


aspects of the selling process than any other marketing topic, except
possibly advertising. The Recommended Books for this chapter list
only a few of the hundreds of titles available on selling and the many
facets of the sales process. A strong sales program is just as vital to
the success of your Marketing Plan as a strong advertising effort.
When these three powerfully important components of your business,
marketing, advertising, and sales, are functioning efficiently and
smoothly, your enterprise is operating at peak performance levels.

Marketing is the plan, the process, the coordinated effort through


which advertising and the sales process reach the customer to
consummate transactions. Advertising sets the stage for sales.
Consider advertising a beacon, alerting and awakening potential
customers to your company’s products or services. Sales provide the
necessary follow-up mechanism to all your advertising efforts in every
medium.

The reality is very few people like to sell, and even smaller numbers
admit to enjoying the process. Ask ten people if they like to sell. Most
will respond with an emphatic, “No!” Estimates are that more than
90% of Americans tremendously dislike selling. However, throughout
our lives, whether we acknowledge it or not, we are involved in selling
ourselves. From your first job, and every one thereafter, you have to
sell yourself in the most convincing manner possible. The college
application process is a sales job. It has been for decades, but ask
any college-bound senior about the process today.

Ironically, though most people do not like to sell, everyone wants to


start a business. Products and services do not sell themselves,
except in an ideal world. When you start a business, whatever it is,
you must be the most devoted proponent and the most vocal
advocate. You must sustain so much belief and conviction in your
product or service that nothing and no one can deter you.
Some people think that the desire and ability to sell are functions of a
certain type of personality or that some people are naturally more out-
going than others. The actual reality may be closer to these maxims:
“You are right whether you believe you can, or you believe you
cannot.” “Attitude is everything.” “Decide you can do it, then go do
it.”

If you are a new business owner, your willingness to sell, not your
ability, is as integral to your success in business as you or your
product. You have to sell. If you have been in business for some time,
no doubt you have discovered that you are still the #1 salesperson in
your company, regardless of the number of the ace professionals you
have hired to do the job. Success at selling has more to do with
motivation and attitude than skill or experience.

You can study motivational theory, and polish some techniques. The
sales process is a series of progressive and somewhat routine steps
that culminate successfully when the buyer agrees to purchase. The
process of selling any customer does not end until you, the sales
person, decide you no longer want to associate with that prospect.

You must always be in control of the process. Never close the door on
a potential customer until you are certain that is what you want. If a
buyer states they are not interested or that they don’t have the money,
understand that those statements mean that they are not interested at
that moment. Most likely those statements indicate that they still have
some questions. Handle objections as a unarticulated request for
more information.

Ask your prospect for permission to add their name to the Direct Mail
list. Mention that you think they will find the information useful and
informative. Mention that you will call them back in about a month. If
their name came from the Direct Mail list follow the same procedure,
and continue to send them the letters, postcards, and offers that leave
the office. After a month, be sure to call the prospect to see how
things are going for them. You will be surprised how their attitude has
changed. The reason: you care enough to remember them and call.

Be organized in your phone sales. Keep a diary of who to call each


day. Make notes on each prospect in the computer database, and
refer to those notes as a reference. All that needs to be entered in the
diary for each day is the name and phone number and the date you
last spoke with them. Refresh your memory by going to the database
and to find your notes on each prospect.

There is a new attitude emerging in sales theory and practice with


quite a different approach on how best to influence customers and
consummate a sale. These changes constitute a paradigm shift, or an
entirely new and different way of looking at the best way to sell. New
models on how to create more successful sales are developing.
These new approaches have more to do with a different style of
relating to prospects than to any substantive informational changes.

The new style virtually abandons the hard sell approach of the past,
that pushy, forceful manner customarily apparent in traditional sales.
The new attitude is “customer friendly,” and focuses on discovering
and serving the needs and desires of potential clients. To some this
new style is considered non-conventional selling. Others find that
prospects respond enthusiastically when a sales person shows
genuine interest in their individual and particular needs. When a sales
person takes the time and cares about them as an individual, the
prospect’s receptivity turns the selling process into a way of fulfilling
needs.
The new sales model is all about personal interaction, and building a
relationship of trust with your prospects. You help buyers discover
they want your product because they believe your product will make a
difference in their lives. The process happens in three predictable
steps. First, establish a relationship of trust by asking the right
questions of each prospect. Second, discover their unique needs by
listening to their concerns and desires. Third, eliminate any objections
by presenting the right supportive material to back your claims.

In the sales process, customers buy product. First, however, they buy
you. The simple fact is that unless customers get a good feeling from
you, they will not buy anything from you. This is the main reason why
the tactics of coercion and pressure from years past no longer work in
sales. The public has many, many choices, and many, many brands.
Selling has become a question of winning the hearts and minds of the
consumer. Savvy customers know other opportunities to purchase
similar products will arise, and many will wait before leaping into a
purchase.

If your honesty, concern, and helpfulness demonstrate a care for


them personally, the chances are excellent that they will want to join
your product family. Present the product in any number of ways
depending on the particular questions posed by each prospect. There
are scripts you can study and exercises you can do prior to making
presentations. You have to be alert and interested in what your
prospect is saying so that you can present benefits in a personal way.

The key to your success is knowing how to Close the Sale. The most
difficult skill to master in the selling process is how to maneuver,
create, and execute an easy and positive conclusion to your
presentation whether it is in person, on the phone, at a trade show, or
in a retail location. For this reason, the rest of this chapter is devoted
to discussing ways to bring about this important, pivotal point in the
sales process.

Begin your phone calls or presentations with a proper introduction.


Tell the prospect who you are and the name of your company. State
your purpose and your objective. Begin the sales presentation with the
Close. When you tell them the reason for your call, you actually begin
the sales presentation with the Close. So, be straightforward from the
beginning. Adopt the attitude that the Close is a process, not an event,
or moment in time.

After your introduction and your statement of purpose, make a


statement about the product. Ask a question to get your prospect
talking. Once they begin talking, be quiet, listen, and make notes. The
conversation could go something like this: “I am calling today to tell
you about the great benefits of X,” then pause in case the prospect
feels like talking. “Tell me about your previous experience with X,” or
“Have you or anyone in your family ever used X?”
Your object is to get the prospect talking about himself/herself as
quickly as you can. You stated your objective. Now you want to
center the conversation on the prospect. You want to know what they
want, so you can show them how your product answers their needs.
The prospect is likely to share his/her desires and aspiration if you
make him/her feel like you are offering individual attention rather than
making a routine sales call.

Encourage them to talk. Use what you learn to guide the conversation
to the benefits of the product. The more the prospect articulates
his/her wants and needs, the more you can relate the ways your
product can help them. Let them talk about themselves while you
make notes on how your product or service will make their life better.
If you are sitting across the table, nod your head in agreement, and
write down a word or phrase that can return the focus to closing the
sale. If you are on the phone, take all the notes you want, stop them,
ask them to repeat what they just said. Constantly be solicitous.

Always be thinking of questions you can ask prospects so that they


uncover the benefits. You know the benefits of your product or
service. You want the prospect, who may never have heard of your
product before, to realize the potential benefits on their own. Closing
the sale with someone who has already articulated several benefits is
not difficult. They want you to ask them for their order because they
want your product.

The advantages to stating your intentions from the beginning provide


you with a barometer of anticipated responses. If the prospect is
close-minded, or has no intention of listening to or hearing your offer,
save yourself the trouble, and move onto someone else. A certain
percentage of people in this world object to everything as a matter of
principle.

In every company, with every product ever sold, you will always
encounter totally disinterested and completely objectionable human
beings. People who refuse to take at least a neutral position do not
represent failures on your part. Do not waste your time laboring to
convince someone who won’t be convinced when the world is full of
people who are open and interested

The last emotion you should feel in these cases is rejection. Some
people are stuck where they are, for whatever reasons. Accept the
fact that you are unlikely to interest them, regardless of what you say.
Some people decide against your product or service before you have
a chance to begin speaking.

If you have ever sold anything, you know the personality, so find an
easy exit and leave. Use something they say and be on your way.
You can say: “I understand your position, and I respect your opinion.
Now I have to go.” Gather yourself, and move on. Forget about those
who have no desire. Keep moving down your list looking for the next
interested, open, and excited prospect. A phrase, perhaps over-used,
goes like this: “Some will. Some won’t. So what? Someone’s
waiting…”

When you state your intentions early, from the beginning, you can
relax and let the prospect talk. When the moment presents itself,
swing the conversation back to your stated intentions to offer or sell
them your product. What you are selling is offering an opportunity for
them. You want to give those that will look, learn, and listen the
chance to purchase your product or service because it can make a
real difference in their lives.

Many, many products necessitate educating consumers. The


generally more attentive attitude that many salespeople have adopted,
including the process of the Close, developed because people in
sales began to see themselves as highly informed, educated, and
aware of the many benefits of their products. So often potential
customers lack the knowledge of the value of products and services.
You empower yourself if you think of yourself as an educator as much
as a salesperson.
What you and your staff are selling involves a process of discovery for
each new person or prospect you or they encounter. Keep your “pitch”
fresh and compelling by treating each new prospect individually. Don’t
just show an interest in your prospects. Be interested in them. Each
sales person needs to develop an individual sales process. An
individual program is difficult to train and master, but the process is
more satisfying than relying on a routine format with pre-determined
statements and questions.

Know what must be communicated in each sales encounter, then be


flexible and listen to the prospect. Asking a few subtle questions is
often all you need for the prospect to make the close on his/her own.

There is a turning point, when you and the customer are in agreement
that he/she will buy now or at a later date. All that remains is
completing the necessary paperwork. You know when that moment
arrives. The close is a process, but that mutual agreement is a
particular point in time. You breathe a sigh of relief, internally and
externally. You relax. A smile breaks across your face, from ear to
ear. The questions and objections of this prospect, now new
customer, are over. You made a sale.

There are some specific steps you can take to make the closing
process smoother. First, throughout your conversation seek
continuous agreement. Make very general and broad statements and
remember to continue asking simple questions, particular to what the
prospect is saying, like: “Do you feel you or your family could benefit
from ---?” Whether you are on the phone, in a one-on-one, face-to
face presentation, or presenting to a group, always ask questions in
order to get affirmative answers. “Do you understand how this works?”
“Does this meet some of your needs or concerns about---?” Get your
prospect to say “yes” a half dozen or more times, and the final
affirmative, to purchase, will come naturally.

By now, you probably realize that the best salespeople are the best
listeners. They ask questions that prompt prospects to talk about their
concerns and needs. People want to talk about themselves. You want
to sell to them. People want to improve the quality of their lives and
the lives of their families. You want to sell to them. They want
someone to listen to them. Be the person that listens to them.

Whenever you are presented with a question in the sales process,


make a big effort to respond with another question, rather than a “yes”
or “no.” In some cases the prospect may be searching for the Close
themselves. Whatever your prospects asks, turn their questions into a
question. For example, “Can you ship this to my daughter in Illinois
and bill me?” Instead of responding with, “Yes,” say “Would you like
us to ship to your daughter in Illinois?” The prospect will say, “Yes.”
You respond with. “Well, let’s write the order right now.” Sale closed.

Make comments as they talk. Be more than agreeable. Be


sympathetic and understanding. “I know. I have experienced the same
thing.” The best salespeople are empathetic personalities who gently
pull the prospect along to the point that there are no other objections.
Close from the beginning, and show you care. Answer every question
they ask with a question. Listen to them and be sincere.

Stay in charge of the situation. This is your sales call. Feel


comfortable to break into their monologue to mention other benefits of
the product or service. Generally, the prospect is open to hearing what
you have to say. In some sense, to them, you are an expert in the
field.
Be enthusiastic, even if they appear skeptical. Your excitement is
contagious if it is genuine. Follow a statement of benefits with a
question about their needs or desires. “ X provides you with----. From
what you’ve been telling me, it sounds like X could really be useful
(helpful, beneficial, advantageous). Do you agree?”

Learning to read customers intentions is not an easy task. However,


once you sense a prospect is sold, ask for the sale. Do not hesitate.
Overselling can kill a sale. If you keep selling to prospects after they
are sold, they can experience buyer’s remorse, a regret that is purely
emotional and which has no grounding in any concrete objection. Yet,
when it comes to writing the order, the would-be buyer is now “not
ready yet.”

Bring the prospect and the product together in one statement, like:
“From what you’ve been telling me, it sounds like X will be very helpful
in your house and for your family.” Pause for a moment. If the
prospect doesn’t object, then say, “So, can you see yourself using X?
Great! The next step is to fill out the paperwork.”

Depending on your product or service, having a free trial or samples


gets you “in the door” as a salesperson. As owner, you make the
sales process much simpler for your staff if you provide some offer or
give-away for the sales staff to present to prospects. The second,
return call or visit is a great time to be very precise about benefits.
Trial offers make the entire sales process smoother and easier.

There is a maxim that goes: “People love to buy but hate to be sold.” If
you begin the sale with the Close, then you can spend your time
selling by helping your potential customers to buy. Let them know you
care about helping them solve their problems, and they will respond
positively to your offer.

As important as a smooth Close is to developing a long-term


customer, the most important moments in the sales process are
unquestionably the first 30 seconds you spend with a prospect. When
you meet someone new, you know the importance of first
impressions. In that short half minute, you have the opportunity to
open the prospect to your products or the door may shut permanently,
regardless of how long and hard you labor to “sell.”

Always remember that any phone call is an intrusion into people’s


lives. So if you use the phone to cold call a prospect, be sensitive to
what is happening in the home or place of business. You want your
prospect’s attention, and if you sense you don’t have it, make sure to
say: “Is this a good time to talk for a few minutes?” or “Perhaps I can
call you later, or another day?”

Prospects interest in your products or services will run a full spectrum,


from the receptive and interested to the very negative. The great
majority of people to whom you speak are likely to have some
openness. You may have to “sell” some of these people. A prospect
may see the benefits, but still be unconvinced as to the necessity of
ordering at a particular point in time. In cases like this, you can resort
to some more conventional “sales tactics,” measures that force a
prospect to be more decisive.
One technique sales people customarily employ to move indecisive
prospects is to mention there is a deadline for obtaining the product or
service at the current price. By placing their order today, they can be
guaranteed today’s price. You create a buy or not to buy decision
when you present this situation to a prospect. You won’t know just
how serious a wavering prospect is until you take a measure of their
interest. Though you do risk losing the sale, you force a decision from
a prospect that might otherwise take many more agonizing sales calls
to attain the same result, positive or negative.

Address just one aspect of your customer’s life with genuine and
sincere concern, and you can make sales all day long. Take the time
needed to create a situation where your prospects trust you and your
opinions. See yourself as a messenger spreading good news. Watch
how quickly customers and prospects value your suggestions and the
recommendations that you offer. Be an advisor, an authority they
trust. Once they believe the options you offer will make a difference in
their lives, you will have customers for life.

INTRODUCTION A B C D E F G H I J K L M N O P Q R S T U V W X Y Z LINKS
TELEMARKETING
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Recommended Books

1-800-Courtsey: Connecting With a Winning Telephone Image


by Terry Wildemann - This book shows how to “get the desired
results from any interaction, whether it’s keeping customers happy or
convincing them to buy what you’re selling.”

Cold Calling Techniques that Really Work! by Stephan Schiffman -


This is the 4th edition of a highly successful book. His suggestions
are field-tested and proven and provide you with both the tools and
the confidence to make the calls that get face-to-face appointments.

The Complete Guide to Telemarketing Management by Joel


Linchitz - This book is “logical, well thought out step-by-step guide
(complete with sample forms and dialogue guides) to successful
telemarketing management… a practical, informative, guidebook for
any inside sales department.” The book takes a new approach to
telemarketing and employs relationships selling concepts and
customer dialogue with the previous approach of canned scripts.

Complete Handbook of All-Purpose Telemarketing Scripts by


Barry Z. Masser – “The one and only book for anyone interested in
telemarketing made easy.” Over 200 ready-to-use telemarketing
scripts including: Proven Openings for Cold Calls, Closing a Sale on
First Telephone Contact, Successfully Fielding Inbound Telephone
Inquiries, Overcoming Stalls, Objections, and Complaints.

Secrets of Successful Telephone Selling: How to Generate More


Leads, Sales, Repeat Business, and Referrals by Phone by
Robert W. Bly - This book provides a step-by-step program for
inaugurating a telephone campaign. Learn how to generate sales
leads, successfully qualify prospects, follow-up with your potential
customers, close sales, get the order, service accounts, and get
repeat orders. “Teleselling” is a way for any business to increase
the bottom line on profits. Mr. Bly helps develop scripts through each
step of the process. Included is an entire chapter on the Most
Common Telephone Selling Mistakes and How to Avoid Them.

Successful Cold Call Selling: Over 100 New Ideas, Scripts, and
Examples form the Nation’s Foremost Sales Trainer by Lee
Boyan – This is the 2nd Edition of this book, hence the “New” ideas.
Mr. Boyan helps readers understand their objectives while
demonstrating the importance of hearing and responding to the
customer’s needs. He provides step-by-step guidance in developing
a script and plan for the sales process. This book is about cold-
calling, but the information is helpful for all sales encounters.
Telephone Sales Management and Motivation Made Easy by Valerie
Sloane, Theresa A. Jackson - This book is about how to hire
wisely, motivate successfully, and ultimately gain the most from your
staff as well as your technology, and includes 50 creative sales
contests to stimulate interest and increase productivity.

Telephone Skills from A to Z: The Telephone “Doctor” Phone


Book (A Fifty-Minute Series Book) by Nancy J. Friedman, Phillip
Herould (Editor), Ralph Mapson (Illustrator), Carol Henry (Editor) -
This book is a helpful and insightful tool for those who represent
organizations on the telephone. It is a good refresher course for
experts, but easy to read and comprehend for those who are just
beginning. The book can be read in fifty minutes or less. It describes
typical scenarios that occur and with humor it provides realistic
solutions.

Recommended Websites

http://salesdoctors.com/welcome/besttelesales.htm
The Sales Doctors website has hundreds of useful, practical, and
concise articles. This one is entitled: “Telephone Sales Ideas: 42
Tips For More Effective, Powerful Telephone Sales-Telesales
Campaigns.”

www.coldcalling.com - Mark Sanford Ph.D. has a helpful site of


articles and booklets you can buy. Take the Cold Sweats out of
Cold Calling is a package that includes three special reports: Basic
Script Writing, Getting Through to the Decision-Maker, and
Prospecting for Names. Sanford offers a number of proven
techniques for becoming more effective when cold calling, including
learning how to overcome initial reluctance, making power
appointments, learning how to reach the decision maker, developing
an effective script, and learning to prospect for names.
“EXP is the convenient way to get expert advice and services.”
www.exp.com - You can find an expert on virtually any subject.
This is a pay service. You may hook up with someone who is
tremendously knowledgeable.

www.smartbiz.com/sbs/arts/dun10.htm - On this page you will


find a short, 2 page article entitled: “Blueprint for Successful
Telemarketing.” It is a step-by-step guide for implementing a
telemarketing and lead management program, and was developed
by Select Marketing of Austin, Texas. Use the information that is
helpful to you, but consider everything that is mentioned carefully.

www.smartbiz.com/sbs/arts/hph15.htm - On this page you will


find another, short article, “Sharpen Telephone Listening Skills
Through Training.” Success telemarketing involves developing and
fine-tuning the skill of listening. Listed here are some techniques to
develop that very important skill.

www.smartbiz.com/sbs/cats/tele.htm – Link to dozens of articles


on telemarketing including inbound, outbound, handling objections,
telemarketing centers, upselling, and on-hold message systems.
Also on these pages are telemarketing-related links to the Internet,
recommended books and periodicals, audio and video materials,
software, and more.

www.telemkt.com - Now called CRMXchange, this website is a


place on the Internet for “an exchange of information on customer
relationship management (CRM), sales, call center, and
telemarketing issues.” Get a free subscription to “Call Center
Solutions Magazine.” The site includes White Paper articles, and
archived information as well as discussion forums.

Every business has the need for good telemarketing skills. Even if
you haven’t started a telemarketing campaign, most of your
customer service matters are handled over the phone. You and your
staff need the skills and knowledge to turn an upset customer into an
ally and friend again. Many of the same skills are used in telephone
sales. Telemarketing with the right product offers and a carefully
developed script is the most powerful sales method next to one on
one, face-to-face sales. Though you can’t see the customer, you
have the opportunity to interact verbally, and exchange ideas,
thoughts, needs and desires.

Telemarketing is a very personable way of maintaining contact with


existing patrons or customers. A courtesy call to see how things are
going, to find out how they like the products, or if they need to order
more, is quite easy and usually very much appreciated. You can
grow your company by cultivating and servicing your existing clients.
Satisfied customers bring you continuous referrals, and tend to
increase their own orders over time. Seeking new customers is
indeed important, but make sure you take good care of the ones you
have.

Most businesses conclude sales over the phone, even if there is no


specific telemarketing effort. New customers call in to place orders,
and existing customers call in to place repeat orders. There are skills
your staff can develop that encourage people to buy. Phone
courtesy is extremely important in any company that is making sales
to the public. You want your staff to be pleasant and interested in
your customers at all times. The business that puts customers first is
more than likely to stay in business and be extremely successful.

Positive communication increases sales. It also increases the


productivity of employees. You know from experience that when you
encounter someone face-to-face who has an upbeat, positive, and
enthusiastic demeanor, you feel good yourself. Those who project
interest in the other party, excitement for the product, and joy in what
they are doing, win customers time and again on the phone.

The very first step in becoming effective on the phone is learning to


listen to the other party. You establish rapport with the person you
call by showing them that you care about them. A telephone call is
an interruption. By asking a few leading questions, and then listening
to the other person, you can detect their level of interest and energy.
You want to be upbeat and enthusiastic, but if some one says
his/her Mother just died, you want to change your energy to one of
sympathy and empathy.

Listen to the tone of the other person’s voice. If the customer is


speaking in a quite, slow voice, pattern yours after theirs, to a
degree. Maintain your enthusiasm, but mute it slightly. They may be
having a bad day, and won’t confess what the problem is. It is
important to maintain your own identity in phone conversations, but
parallel the mood or tone of the other person.

By the same token, if the other party appears very knowledgeable


and confident, adopt an attitude of certainty and confidence yourself.
If you are talking to someone from the South, who has a long drawl,
don’t try and imitate it, but slow your own speech down. Whatever it
is, make an effort to meet the other party on their terms. This is
called “paralleling,”
and it is very effective for establishing initial rapport with a client or
potential customer.
Besides “paralleling,” there are several other helpful hints that will
enhance listening skills on the phone. These are directed to you, the
owner, though it is unlikely that you will be making the calls. It is
important that you oversee the job and make sure it is being done
according to your standards and expectations. Telemarketing is one
of the contacts your company has with the public. As owner, you
want to know what is being said about the company, and how things
are being communicated.

Before you make any calls, prepare in your mind, and on paper with
your script, exactly what you want to accomplish with each set of
calls. Begin with an easy set of calls as a sort of warm-up. This
might consist of courtesy calls to existing clients. You can progress
to leads from other sources, such as leads from ads, postcards,
direct mail, trade shows, or referrals from clients. In all of these
cases, the prospect has some relationship to the company, so none
of these are actually “cold calls.”

Hi. This is (your name) from (XYA Company). Your friend and
our client Mary Sue Brennan suggested I call you about our
(Product). How are you today? (Pause) Do you have a few
moments to talk now?

It is more personal to use the first person (I) rather than we


(representing the company). Mention the relationship as soon as
possible. This will put your prospect at ease, knowing that you share
a friend or experience in common. Inserting “How Are You Today?”
is not necessary, but often warms the prospect up. Asking this
simple question indicates to them that you care about them, and you
are not just calling to sell them something.

Have a pad of paper available when you are calling customers or


prospects. Make sure that the desk area is clear of work and other
distractions that could inadvertedly grab your attention and cause
you to lose focus with a client or prospect. Rehearse and know what
you are going to say before you begin calling. Read over the script a
few times. Highlight key points you want to be certain you do not
overlook. Listening to the other party is critical, and knowing in
advance what you want to say will make it easier for you to listen.

As owner you have two choices with any telemarketing you


establish. One is to enlist the support of your staff, develop the
program and see how it works. The other is to outsource your
telemarketing (except inbound calls) to a telemarketing firm. There
are many advantages to keeping all business functions in-house. If
you need to add staff consider hiring part-time, experienced,
independent contractors.

If you decide to keep your telemarketing in-house, the more leads


you can generate for your staff through ads, referrals, trade shows,
etc., the less you need rely on cold call lists. Train your staff to listen
to prospects, first by “paralleling” very subtly, and then by planning
what they are going to say with scripts that help them cover
everything without having to remember every detail.

Use the pad on the desk to write the client’s name at the top of the
page. You can either do this before dialing the number or while you
are waiting for an answer. You don’t have to keep the entire list in
front of you or worry about losing your place. Not knowing whom you
called is very embarrassing. If you reach someone, use this sheet to
make notes about the person, their questions, concerns etc.

Use the notepad to jog your memory about the conversation. You
don’t need elaborate notes. Use single words and phrases if you
can. It is perfectly acceptable to ask questions or ask the prospect to
repeat something. You can appear very sympathetic, understanding
and interested by occasionally inserting comments like: “That’s true,”
or “I know what you mean.”

When you conclude the call, write the phone number next to the
name before you make another call. If you have Jim Smith at the top
of the pad, and there is no answer, make a notation on the master
sheet with the date and time you called. That way you know not to
call at the same time another day. If there is an answering machine,
which there almost always is these days, you have a golden
opportunity to leave a highly compelling, exciting message:

Hi, Jim, this is (your name) from (XYZ Company). Jim, I met you
at our booth at the KZ Tradeshow earlier this month. (If you are
calling from the lead list from the Tradeshow, you can say this
whether it is true to your knowledge or not, because it could be.) I
have some exciting specials coming up soon. Call me at your
earliest convenience at 222-2222. Ask for (your name), that’s
me, and I’ll tell you all about them. Call soon! I look forward to
hearing from you.

Scripts are essential in telemarketing. Develop and work with one so


that it feels natural to you. As the owner, be involved in structuring
what is said to your prospects and clients, but let your employees
work on the minor parts that help them achieve a level of confidence
and comfort with the process.

Begin with an outline of the topics you want the script to cover.
Everyone can dial a phone, say “hi”, and read from a script, but not
everyone has the ability to “think on their feet” when someone else is
on the other end of the line. Once you have a script written, role play
with a few employees at a time. It is up to you to decide who can
handle the job, and whose talents are best used in other areas.
Create large caption headings on topic areas for which you
anticipate telemarketers will need familiarity. If these are in big and
bold typeface, your staff can easily jump to another topic:

1. Develop some pointed questions of prospects that subtly


demonstrate the benefits of your product or product line. (If your
product is an improvement or an enhancement on something
existing, emphasize this.)

2. Seek agreement: “What if I could show you how you could…”


“Would you be interested?”

3. Develop a specific and clear sales pitch.

4. Develop answers to all the objections you can


Imagine getting from prospects.

5. Offer some closing phrases that seal the offer. A favorite is this:
“Have I answered your questions? Okay, great. Tell me (their
name), can you see yourself getting the----- for yourself or a
friend?” If they say no. Then you ask again, “So do you have
more questions?”

When prompted gently, most people will agree to a purchase at that


point. Then, you ask how they would like to pay. If they have strong
objections to buying right then, they will tell you.

After the script is written and read aloud several times, you will know
where it needs revising and editing. Your staff has to feel absolutely
comfortable with the script, and they should practice several times a
day with each other to gain familiarity. At some point, they will need
to begin making calls, and give the effort the best they can.
The testing phase is important because you will get feedback on
how effective it is. Begin by calling family and associates. Ask them
to take the process seriously, and tell your staff to be serious. It is
possible for everyone to break into hilarity. That is not the point.
After the “interview” is concluded, you can have the staff ask the
“prospect” for some feedback. If you have customers who are good
friends and associates, ask them if they would assist you and the
staff in a trial run.

Begin using your new script on existing clients. You want to keep in
touch with them anyway. If you need to adapt the introduction, you
can.

There are many benefits to developing a script. You can track the
effectiveness and evaluate various approaches if everyone is
working from the same message. The script is the neutral factor.
How your staff manages will reveal to you who is natural at
telemarketing and who has difficulty.

With a script in hand, the telemarketer has a much better chance of


staying focused on the points you want covered. You don’t want
anyone reading directly from the script, however. They should be
familiar enough with what needs to be covered that they can listen to
the prospect, and respond naturally.

Telemarketing provides a great source of feedback for new product


pricing and acceptability. Comparatively speaking, telemarketing is
not expensive, even state-to-state. A good script should pre-qualify a
buyer within a few minutes, and from there you can send literature,
and track sales, or make follow-up phone calls. State-to-state rates
are the lowest they have ever been. Check to see if what you are
paying is competitive.

If you integrate Expos and Tradeshows into your marketing


campaign, you want to be sure to call every lead once you return
home.You may gather hundreds of business cards which means
calling or leaving messages for a lot of people in a short period of
time.

A simple script for a follow-up Expo or trade show would be:

Hi! This is (your name) from (the XYZ Company). We met you at
the New York Show on August 15. How are you doing today?

Great. Listen, I know you must be busy. I was calling to find


out if you still have our literature from the show, and if I could
answer any questions about the products. (They don’t have the
literature any more.)

I completely understand. So much happens at those shows. I’ll


send you another packet. Is your address still…? Great! It will
go out today. I’ll enclose my card. Then you can call me if you
have any questions. Nice talking to you. Bye.

If they have the brochure then:

Great. So many people lose it. You must be very organized!


Say, have you had a chance to look at it? Are there any
products you can see yourself using or giving to friends? (
This is a powerful close. They almost always will say, “Well,
yes.”)
Great! I can take your order right now, over the phone. Now is
not a good time? I can call you back! Which is better for you
tomorrow, or Thursday?

What you do here is get them to agree in a very non-threatening


way, that they like the product line:

Can you see yourself using the products or buying them for
friends?

Once they say yes to that simple statement, you ask for the order.
Do not hesitate. Find a time in their schedule when you can call to
take the order. Write it down in a day-timer or diary. If they say they
are going to mail it, ask: Great! When can we expect to receive
it? Write it down and follow-up. Let shipping or billing know an order
is expected. Sometimes it takes this kind of precise attention to
detail to make operations move from low gear into high.

Telemarketing is one the most direct and least expensive forms of


marketing there is. Generate interest in your products through
advertisements for a FREE video, a FREE report, a FREE sample or
trial packet, or any other means you can develop. Once someone
inquires, they become a prospect, or a lead. Respond and get
connected to that person. Phone them, talk to them, and get them
interested in ordering.

Business cards you collect at Expos are also telemarketing leads.


Collect as many leads as you can when you exhibit at both Expos
and Tradeshows. Direct Mail prospects and referrals from satisfied
customers are other sources of leads to call.

Cold calls involve calling people with whom you have had no
previous contact. Usually you purchase these names and numbers
from a lead-generating company, or list broker. You can purchase
lists that are targeted to your ideal customer profile, people in your
own community, or many other characteristics you identify. Ideally,
you can generate enough interested prospects that you do not have
to “cold call.”

Be sure to spend time developing scripts so that staff knows exactly


what to say to prospects. In particular, work on developing a
powerful, compelling, and irresistible message to leave on the many
answering machines you will reach on any given business day.

INTRODUCTION ABCDE F GH I J KL M N O P Q R S TUV W XY Z LINKS


U.S. GOVERNMENT CONTACTS
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Recommended websites

www.sba.gov - The official site for the Small Business


Administration, the SBA. Call the SBA toll-free @ The Small
Business Answer Desk: 1-800-UASK-SBA or 202-205-7064 (fax).
Ask for the office nearest you, check your local phone directory
under the U.S. Government, or visit the SBA website and click on
“Local Offices” for a map of the U.S. with listings by state. Use
Adobe Reader to download forms and applications. If you do not
have this software on your computer, you can download it for FREE
at: www.adobereader.com . The download is safe and you will
find having this software installed on your computer is necessary
and useful for retrieving information, forms, and applications from
many sources.

Recommended Books

How to Obtain Local, State, and Federal Help for Your Business
by Ted Wooley – This book of highly useful information is available
from the Horizons Unlimited Group at www.insiderreports.com or
toll-free at 888-985-8585. Since billions of dollars are loaned or
given away, you should investigate positioning your company to
gain the most from this opportunity. This Insider Report covers the
entire spectrum of government assistance to businesses from
government loan guarantees to grants.

Small Business Resource Guide and Start-Up Kit – This is a


FREE 39-page guide from the SBA which you can download or print
directly from Adobe Reader. You can also scan it from your
computer screen and print pages that are interesting or relevant to
you. Topics include: Is Entrepreneurship for You? Getting Started,
Types of Business Organizations, Writing a Business Plan, Leasing,
Finding Money and Financing Your Business. There is a special
section on SBA Funding that would be very helpful to read before
applying for a loan with the SBA. There are sections on Licenses,
Taxes, Patents, Pro-Net and Ace-Net, (see Chapter F-Funding and
Financing and Chapter J-Joint Ventures and Venture Capital), The
Online Women’s Business Center, (see Chapter B- Books), SCORE
and local sources of assistance, and a Glossary of Terms.

Recommended Websites

Recommended Websites are located in the body of the commentary


for this Chapter. They are listed here alphabetically for quick
reference.
http://cbdnet.access.gpo.gov – The Commerce Business Daily
http://classroom.sba.gov – Online University Business Courses
through the SBA
http://classroom.sba.gov/officecom.html – Business Tools
through SBA, part of the SBA classroom, interactive tools include:
Business Development, Business Research, Customer Service,
Financial Management, Financing, Global Trade, Human
Resources, Leadership and Management, Legal, and Marketing and
Selling
http://pro-net.sba.gov - PRO- Net (Procurement)
http://web.sba.gov/subnet - Find prime contractors looking for
small biz bidders or partners
www.bidengine.com - Bidengine
www.business.gov/busadv - The U.S. Business Advisor
www.fedmarket.com - The Federal Marketplace
www.fedmarket.com/ –Jumpstation to State Purchasing
Departments
www.pueblo.gsa.gov - The Consumer InformationCenter
www.sba.gov/bi/bics - Business Information Centers
www.sba.gov/hotlist - SBA page with over 3,000 links
www.sba.gov/sbdc - Small Business Development Centers
www.score.org - SCORE, Service Corps Of Retired Engineers
www.state.ca.us - state homepage URLs, example given is
California. Substitute your state’s U.S. Postal initials for the ca.
www.uschamber.com –U. S. Chamber of Commerce

The United States Government sponsors a number of programs to


assist small business owners with information, education, training,
advice, and financial assistance for developing and maximizing their
businesses. The majority of these programs are sponsored by the
Small Business Administration (SBA), which was established by
Congress to assist in the development and growth of small
businesses. The programs are free to you, so take a close look at
the many ways your government can help you get the support you
need.
The U.S. government also issues the official documents that grant
copyrights, trademarks, and patents. Because of the legal
ramifications of these documents, these documents are covered
Chapter L- Legal.

You can receive training and assistance from the government, and
you can participate in the contract bidding system to sell virtually
every known commodity to the many U.S. government agencies and
departments, as well as all state and many county governments, as
well. Below is a summary of SBA’s loan guarantee programs.
Following that discussion is information on how to find federal, state,
and local procurement opportunities.

The United States Government recognizes the role that small


businesses play in fueling the U.S. economy. In 1953, the SBA was
established to provide “financial, technical, and management
assistance to help Americans start, run, and grow their businesses.”
(from the SBA) Over the years, SBA programs have changed to
meet the changing times, and adapted to the needs of small
business.

Our government should be interested in supporting small


businesses. They are the principal source of new jobs. According to
statistics released by the Department of Labor and the U.S.
Commerce Department, of 2.5 million new jobs created in 1996,
64% were in small businesses. What makes this statistic even more
significant is that small businesses tend to hire young workers, older
workers, women, and part-time workers. Nearly 70% of the labor
force receives initial job skills and training from a small business.

In addition, small businesses are responsible for 28% of jobs in high


technology, 35% of federal contract expenditures, and 47% of total
sales. Nearly half of all sales in this country are generated by small
businesses!

Even more astounding is that 97% of all U.S. exporters are small
businesses. Of 209,000 U.S. export businesses, 202,000 are small
businesses. SBA administrator, Aida Alvarez, stated on November
30, 1999, “Small businesses are leading the way when it comes to
exporting. They account for almost a third of all U.S. export sales.
The SBA is committed to helping this growth continue and that’s
why we’re reaching out to America’s 24 million small businesses in
cities and counties throughout the nation.”

The SBA has a portfolio of more than $45 billion in business loans,
loan guarantees, and disaster loans, making it the largest single
financial backer of small business in the country. In the last few
years, more than one million small businesses received offers of
assistance.

The SBA defines a small business as one that employs less than
500 people, or has annual revenue of less than $10 million. There
are variations by industry, but in general more than 97% of all U.S.
businesses qualify for SBA loan guarantees under these standards.
Other criteria are that the business must be a for-profit business that
it is independently owned and operated, and not dominant in its
industry.

A few businesses are restricted from applying or receiving SBA


loans and loan guarantees. These include non-profit organizations,
academic schools, live TV cable broadcasting, and businesses
involving speculation, such as real estate, lending, investments,
loans, and gambling.

Unfortunately government funding reductions have forced the SBA


to virtually eliminate all direct loan programs, including special
programs for Vietnam disabled veterans, the handicapped, and
businesses in areas where unemployment is high. Although the SBA
no longer loans money directly, it does offer a number of loan
guarantee programs.

An SBA loan guarantee is a promise by the government to pay the


commercial lender from 75%-80% of the outstanding principal if the
borrower defaults. With this guarantee banks are much more willing
to loan money, and they can still sell the SBA-guaranteed portion on
the secondary market.

SBA loan guarantees are particularly beneficial to small business


owners who lack sufficient collateral to obtain conventional bank
financing. In fact, before you can apply for an SBA guaranteed loan,
you have to show that you have been refused funding by a
conventional lender. That same lender may be happy to review your
loan packaged with an SBA guarantee.

In 1997, the SBA guaranteed more than $11 billion to nearly 50,000
businesses. According to SBA figures, their guarantee of nearly $29
million in recent years has made funding possible to 200,000 small
businesses that would not have had access to capital from other
sources.

The SBA guarantees up to $750,000, or 75% of the loan. If the


amount being borrowed is less than $100,000, they will guarantee
80% of the loan. The interest rate on a SBA guaranteed loan is
sometimes a little higher than a conventional loan. There is a
maximum cap banks can charge, imposed by the SBA, which
generally means the loan is competitive to the borrower, especially
when there are few options to getting other financing.
A distinctive benefit to an SBA guaranteed loan is that these
instruments usually have a longer term than the average
conventional business loan. The result is a lower monthly payment,
and more time to pay back the borrowed funds. The average
business loan is 3-5 years, but the SBA guarantee loans are
commonly as long as 10 years and sometimes more.

The SBA currently has a list of over 200 preferred lenders, and over
500 certified lenders. However, the best place to start is with your
own bank. The branch manager is more than likely familiar with
SBA loan guarantees, and can assist you with information and
applications. If your bank cannot help, ask your banker for a referral
to another local bank, or contact your local SBA office.

The following is a list of currently available loan guarantee programs


through the SBA. The SBA has survived nearly fifty years of political
turmoil with both political parties and through many administrations.
SBA programs exist because both the legislative and executive
branches understand the value and contribution of small business
enterprises to the American economy.

The SBA, like every government agency, is not totally immune to


potential funding reductions. Reductions in staffing and funding are
forcing more administrative functions onto lenders. Applicants
should realize that lenders don’t relish additional administrative
functions. A well-documented and effective business plan is more
important than ever before. Your organized, coherent business plan
could make the difference in obtaining your desired financing.

SBA Low Doc Guarantee Program

This program is one of the most popular programs administered by


the SBA. It is a relatively new program, and is administered as part
of the Section 7(a) loan guarantee program, (see below). Low
Doc was started in 1993 to streamline the application process for
small loans under $150,000. The application is one page, with the
small business owner’s information on one side, and the lender’s
request for the SBA guarantee on the back. Other documentation is
often required, such as two years personal tax returns, cash flow
projection for the business, for existing businesses, and year-end
financial statements.

Close to 90% of applicants receive funding. Once filed, applications


are generally processed in less than a week, and the SBA hopes to
shorten processing time to 36 hours in the future. The Low Doc
program has been effective because 4 years after it was
implemented, 50% of all SBA guaranteed loans were under
$100,000. Prior to the Low Doc program only 30% were under
$100,000. To qualify for the Low Doc Guarantee Program, the
request must be for less than $150,000, average annual sales for 3
years prior must be less than $5 million, and the total number of
people employed including all partners must be less than 100
people.

SBA Regular 7(a) Loan Guarantees

For loans in excess of $150,000, the SBA offers the regular 7(a)
loan program. You may borrow up to $750,000 on the guarantee or
receive a loan guarantee of 75% percent of the loan. Money can be
borrowed to start-up or expand a business. The terms depend on
the use of the money. Funds for working capital will generally be
limited to a period of 7-10 years. For the purchase of machinery and
equipment, the loan period can extend to 25 years, but is more likely
to be around 10 years. For the purchase or construction of buildings,
the loan maturity can be up to 25 years.

The interest rate on the SBA 7(a) Loan Guarantees is competitive


with rates for a commercial loan. However, the SBA funds up to
100% on working capital and equipment loans, and up to 90% on
real estate construction loans. Any standard conventional loan
would require a down payment from the borrower of 25-30%. So,
your yield is substantially more with a SBA loan guarantee.

The paperwork required for a regular 7(a) loan guarantee is much


more complicated than a Low Doc. You can check with your state
or local economic development center for assistance in filling out the
forms. (Information on economic development centers follows the
information on loans.) Also, your lender may be able to refer you to
a professional who can assist you, for a fee. Get a written
commitment from the lender that they will fund the loan before you
pay any money out of pocket. The lender should be able to give you
tentative approval based on the information you provide.

SBA Microloans

These small loans are for either start-ups or the expansion of an


existing business. The purpose is to assist the small business owner
in buying equipment or supplies, inventory, furniture or fixtures, or
providing working capital. The Microloan program is funded through
local and state non-profit organizations approved by the SBA, and
the maximum allocation is $25,000. Funds for this program are
limited so check with your local SBA office for applications and
deadlines.

Section 504 Loan Program


This program is specifically for the purchase of fixed assets.
Typically, business loans for purchasing fixed assets require a large
down payment and carry a variable interest rate, both of which are
difficult for the small or mid-sized business owner. The Section 504
program guarantees a long-term, fixed rate. A goal of this program
is to stimulate local economies by creating new jobs. Most
borrowers in this program are required to develop one job for every
$37,500 loaned. Generally, the program is utilized by existing
businesses that are ready to expand operations.

Section 504 loans are administered by Certified Development


Companies (CDCs), which are private, non-profit organizations that
assist in the economic development of the local community or
region. CDC financing is basically unlimited, but the amount the
SBA guarantees is limited to $750,000. Most Section 504 projects
are between $500,000 and $2 million, with the average project
about $1 million. If you are interested in applying for a Section 504
loan guarantee, check with your local SBA for eligibility
requirements and obligations you will need to meet to apply for the
loan.

CAPlines Loan Guarantees

This program was developed to meet cyclical short-term capital


shortages that many small businesses face. This umbrella program
of loans ties repayment to the cash flow cycle of a business,
functioning like a line of credit. The business owner draws down
what cash he/she needs to the amount fixed by the loan. The owner
makes regular payments but only on the current balance owed, and
repayment is tied to anticipated receivables.

These credit lines are primarily used to purchase supplies. Inventory


and accounts receivable are the collateral for the credit line.
CAPlines loan guarantees are asset-based, seasonal, contract, and
builders’ lines of credit. Contact your local SBA for more information
on qualifications and an application.

SBA Loan Guarantees for Exporting

As mentioned, small businesses comprise a huge percentage of


U.S. exporting companies. The SBA has two programs available to
assist small exporting companies. The EWCP, or Export Working
Capital Program, is for specific export needs and offers short-term
loan guarantees tied to a specific contract or cash cycle.

Like the CAPlines guarantee program, the EWCP is often structured


as a line of credit. These loan guarantees are available only to small
businesses that have been in business for at least a year. The
maximum SBA guarantee is $750,000 or 75% of the loan amount.
EWCP sets their own loans rates, and the SBA does not regulate
fees. Instead, the lender and borrower negotiate the terms.

The International Trade Loan Program

This program is for small businesses involved in trade, companies


preparing to commence exporting activities, and businesses that
have been adversely impacted by imports. The SBA guarantees up
to $1.25 million for this program, but only $750,000 can be used for
working capital. The remainder must be used to build or upgrade
plant or machinery. Other features of the EWCP loan guarantees
apply to these loans, and the maturity date for equipment and
facilities upgrades is 25 years as is the case with most SBA loans.

The Small Business Administration is not just involved in


guaranteeing loans to small business owners. They offer business
counseling and training programs, some of which are available
online. They sponsor several programs for growing and expanding
your business.

Business Counseling and Training

SBDCs - There are over 1,000 Small Business Development


Centers around the country. The program is a cooperative effort of
the private sector including community colleges, state and private
universities, and federal, state, and local governments.
Administered by the SBA, SBDCs offer counseling, training,
management, technical advice, and assistance to over 500,000
existing and prospective small business owners every year. The
direct URL is: www.sba.gov/sbdc

BICs - Business Information Centers provide specialized training


and counseling in hardware, software, and telecommunications for
pre-businesses, start-ups, or existing small businesses. Trainings
are provided by the Service Corps of Retired Executives. BIC
programs are available at more than 45 different locations
throughout the U.S. www.sba.gov/bi/bics

SCORE - The Service Corps of Retired Executives is an


organization of over 12,000 volunteers who are available at more
than 700 locations. SCORE volunteers provide confidential one-on-
one training, counseling, and assistance to small business owners in
any phase of business operations. There are 389 chapters of
SCORE, all sponsored by the SBA.
The Small Business Development Centers and SCORE offer
management and technical assistance to nearly 1 million small
businesses. Begin by emailing your question or area of concern and
you will be matched with a counselor with experience and training in
that area. You can also request a counselor near you. www.
score.org or call 1-800-634-0245.

The SBA devotes entire sections on their site to starting, financing,


and expanding your business. Much of the information is briefly
outlined here, but for a more detailed search, go to www.sba.gov
and click on your area of interest. The Small Business Resource
Guide and Start-Up Kit are free publications you can get through
your local SBA office.

The Kit offers guidelines for starting a small business, including yet
another guide to writing a business plan, an explanation of the types
of business organization, and in-depth information on financing
especially through the SBA. The Guide covers trademarks,
copyrights, patents, more information on SCORE, BICs, and
SBDCs. It’s free, so get a copy for your reference.

The SBA Website offers over 3,000 hyperlinks to other Websites for
information on starting, financing, and marketing your small
business, as well as sites with information on home businesses,
international trade, commerce, patents, legal regulations, science
and technology, non-profits, all the SBA sponsored programs, and
more. Go to the direct page at www.sba.gov/hotlist

You may think that this is enough, but there is more! Once you
have exhausted the 3,000 hyperlinked websites, you can attend
classes at your local SBA center, go to the university online, or
delve into the extensive online library. In addition to free counseling
with a SCORE volunteer, every local SBA offers a wide variety of
classes, seminars and conferences on every aspect of starting,
running, financing, and expanding your small business.

If you feel so inclined you can access university business education


at the SBA Online Business Classroom, http://classroom.sba.gov
Two of twenty modules from the Harvard Manager/Mentor Program
are available FREE of charge: Finance Essentials and Solving
Business Problems. The SBA partnered with Harvard Business
School Publishing to offer these at no cost to the small business
owner. The sessions are 10-20 minutes in length. You can also
access Harvard Business Review Articles, and Harvard’s
Entrepreneurs Resource Center.

The SBA recently added new online courses of their own. You’ll be
glad to know you can still find, what else? Another Business Plan
Guide! Other course topics include, How to Raise Capital for a Small
Business, How to Start a Small Business, Self-Assessment, Building
Your Business, Business Mentoring, Certification Programs, Small
Business Opportunities in Federal Procurement.

Also available at the Online Business Classroom are courses from


4-link University in basic computing, PowerPoint, and Windows.
These advance to learning and writing HTML. There are many
courses to take and the cost is negligible. For Level I courses in
professional development you pay only $4/month. For Level II, the
technical courses, you pay $8/month. You can combine the two and
have access to the complete catalog for $10/month. Register for 4-
link University on the SBA website at the Online Classroom.

University Access also offers Lessons and Information. You can


take the first lesson FREE. It is entitled “Introduction to
Entrepreneurship: Building the American Dream.” Find the
username and password to access this lesson on the SBA
classroom website.

What would this online University consortium be without a library?


The SBA partnered with office.com to provide step-by-step training
covering every aspect of operating a business. You will find articles
and information that are very helpful. Topics include business
development; business research and market analysis; customer
service and strategies to attract and retain customers; financial
management; how to prepare budgets, create cash flow statements,
income statements, balance sheets; how to analyze profitability;
financing; leadership and management; global trade; legal issues;
marketing and sales; and more.

The SBA provides tremendous resources for you to start, finance,


and expand your business. Whenever you feel the need or desire
for help, advice, or assistance, you can find answers and solutions
via email on your computer, by searching for relevant articles, or by
calling your local SBA, SCORE, Small Business Development
Center, or Business Information Center. These resources are all
free to you, so don’t become a martyr to your business or seek ways
to re-invent the wheel. Take the short cut to success. Just ask!

As mentioned earlier, the U.S. government is also a customer for


the small business owner. Each year federal, state, county, and
local government buy millions of dollars of goods and services from
their own citizens. Departments and agencies purchase just about
every commodity imaginable, from food to vehicles and motor oil to
computers and trash receptacles. There are over 90 federal prisons
housing anywhere from a thousand to several thousand inmates, as
well as state, county, and local correctional facilities. The air force,
army and navy feed and house thousands. All departments and
agencies use a multitude of supplies.
PRO-Net at (http)://pro-net.sba.gov is, in the SBA’s own words “an
electronic gateway of procurement information-- for and about small
businesses. It is a search engine for contracting officers, a
marketing tool for small firms and a “link” to procurement
opportunities and important information. It is designed to be a
“virtual” one-stop-procurement shop.”

Register your business for free on PRO-Net. You present a brief


executive summary, then link your website to your Pro-Net profile
using your homepage. Prime contractors seeking small business
sub-contractors or partnership opportunities with small businesses
search the current database of more than 170,000 small,
disadvantaged, and women-owned businesses. The SBA has a new
program on the Internet called SUB-Net for prime contractors to
post subcontracting opportunities. As a registered small business,
you can access this site to find solicitations for subcontracting or
partnership with larger companies. http://web.sba.gov/subnet

Pro-Net is very useful for researching other small businesses in


your industry or local area, and for finding business information on
other companies. The database includes profiles from SBA files and
other databases. You can search the database by SIC codes, key
words, location, or business type. As a procurement tool for you to
find business, Pro-Net is linked to the Commerce Business Daily,
the homepages of various agencies, and numerous other
procurement opportunities.

Doing business with any government entity, federal, state, county, or


local involves some paperwork, as you might imagine. Each has
different requirements. You can call the different federal agencies,
or visit their websites.

For the Department of Corrections of the U.S. Justice Department,


ask for a vendor application. They will send you a form, which you
return to them. They file it and refer you to various federal prisons
seeking your commodity. Make copies of the federal form and send
it to the prisons with your products and price list. You can get a list
of all the federal prisons from the Department of Corrections.

On the state level, each state has its own procurement or


purchasing division. Each state requires its own “vendor”
registration. For a few states, this can be accomplished via email
and online registration. For others, you need to call and request that
an application be mailed. For many, you can download the
application with an extensive booklet of information on doing
business with that state, and mail in the application. You will receive
an identifying code or number, which must appear on every page of
a bid and on the envelope when you mail in your bids.

You will need Adobe Reader to download many application and


booklets, and to download most state offers to bid. States that
require Adobe Reader to access their information provide a link for
you to download the Adobe software. Adobe Reader is handy to
have. Adobe opens compressed files so that scores of pages are
downloaded temporarily onto your hard drive. You can then read,
scan and print what you want. When you exit, the files disappear.
Remember to use the print command at the top of the Adobe
Reader bar, and not your standard print command. Otherwise, your
system might shut down!

Registration with the states doesn’t mean you have business. You
have to register to be able to bid on contracts (over $25,000) or
informal proposals. Bidding is competitive. Contracts are open to
bids for a relatively short period of time, and then they are closed.
The theory is that the lowest, qualified bidder wins. Bids are sealed
so no one knows what has been bid.

You can research old contracts on the Internet to see what was
previously bid on a particular commodity to give you an idea of
whether you can beat those prices. Prime vendors (big companies
and corporations) often receive the bids, but small businesses can
and do have opportunities.To view awards for previous contracts, go
to procurement from a state homepage, or use the Jumpstation
mentioned below to reach the procurement page for any state
directly.

The Federal Marketplace is the “Government Contracting


Resource Gateway”. Find them at www.fedmarket.com. Their
directory is called the Mammoth Vendor Directory and is comprised
of over 275,000 companies and is for both government buyers
looking for vendors and vendors looking for subcontractors and
partners. By far the most useful section of the Federal Market Place
is the Sales/Resources section.

There you will find Bidengine, an inexpensive highly useful tool that
will search all the federal, state and local databases for you for
offers to bid on specific commodities. You don’t need to spend hours
searching through thousands of procurement opportunities. Let
Bidengine do it for you! At the site, you can sign up for a free trial,
but be sure you are ready to search for real bids for your products
before you take their time and yours. You can go directly to the URL
for Bidengine: www.fedmarket.com

Also on the Sales/Resources tab at the top of the homepage for


Fedmarket.com is a direct link to every procurement department of
every state, and many large county purchasing departments. This
page is called the State and Local Jumpstation. The URL is:
www.fedmarket.com/sales_resources/bids/state You can get
there from the sales/resources tab at the Federal Marketplace.
On the front page of the Jumpstatioon is an alphabetical chart of all
the states. Simply click on any state and the Jumpstation will take
you directly to the state purchasing or procurement division. There
you will find out how to do business with that state, find forms to
enroll as a vendor, and you can search current open bids and old
contracts. The Jumpstation is useful because you can go directly to
the state page that deals with procurement and back and forth
between different state purchasing pages.

You can find the purchasing division of each state on their Website.
All of the states have Websites now, and they are easy to find. The
URL is www.state.(your state’s initial’s).us. Use the official U.S.
postal designation for the state you want. Be sure to write both
letters in lower case. An example is: www.state.ca.us (for
California).

Once you have registered to sell to a state or federal agency, get


the name of a purchasing agent within the department. Introduce
yourself and your products or service, and ask that person for
recommendations for finding current contracts.

Ask if he/she would email you notification when a contract comes


up for bid in your product area. If you request this service, you are
likely to get some consideration, and you will save yourself a lot of
time searching continuously for notification of bids. Some states
automatically send applications to bid via snail mail to all registered
contractors. Since each state is different, it is certainly legitimate to
ask if they can email you notification or send the application via mail.
Another reason to talk to a live person in the department, or email a
letter, is that there are a number of bids under $25,000 that are not
available for viewing in the contracts and awards section on the
Internet. Some states will direct you to a section that handles the
“proposals”, but if you don’t see any information, be sure to ask
someone in the department how to access the small (under
$25,000) contracts or proposals.

The federal contract/purchasing system will become wholly


electronic in the near future. The system, known as EDI or the
Electronic Data System, will simplify the bid/contract system
throughout the vast federal network and make information more
accessible. The states are likely to follow with versions of totally
electronic, computer-orientated solicitations, bidding, and
contracting.

When you decide to bid on a contract or proposal, make sure that


you follow the directions you receive precisely. Whether you are
bidding on a federal, state, or county formal contract or an informal
bid, all the information must be accurate. If you have a question or
need help, you can contact the bid officer listed at the top of the
proposal, or his/her office, but mere guessing resulting in incomplete
or incorrect information can be grounds for rejecting your bid
entirely.

If you are a woman, minority or disabled veteran getting certification


can be very helpful for getting funding, procurement awards, and
assistance for your business. Some prime contractors ask for these
designations when searching for a subcontractor. Contact you local
Business Development Center (BIC) or the Small Business
Development Center (SBDC) near you to get information on
business certification. Your local SBA office will have information,
as well.

The SBA also sponsors The U.S. Business Advisor, which “exists
to provide business with one-stop access to federal government
information, services, and transactions.” The U.S. business advisor
not only links to the SBA, but to every other government agency
providing information or assistance to business. The U. S. Business
Advisor has a separate, well organized website on the Internet that
provides a wealth of information. Some of the links take you to
information and resources on the SBA site, such as to downloadable
shareware and to the Small and Home Based Business Library. If
you want to connect directly to any U.S. department or agency, this
site will provide access to a direct link.
www.business.gov/busadv

The Commerce Business Daily is published every business day


by the Commerce Department. Each edition contains 500-1,000
notices relating to U.S. government procurement. Not all of these
notices are offers to bid, of course. Included in these notices are
sales of government property, and publication of procurement
contracts. What is astounding is that each notice appears only once!

All proposed contracts published in the CBD are over $25,000. The
site is confusing. There is no simple way to download a recent copy
of the Commerce Business Daily to view, and a subscription is very
costly. You can check with your local library to see if they have
copies or a subscription. http://cbdnet.access.gpo.gov

The United States Consumer Information Center, located in


Pueblo, Colorado carries hundreds of federal consumer
publications. Under “Small Business” you can find a guide called
“Doing Business with the GSA.” The General Services
Administration buys many goods and services for federal agencies.
The guide explains the GSA’s small business program and where to
find contracting opportunities.
Another guide explains all the SBA loan programs, interest rates,
and eligibility requirements. There is also a booklet that explains all
of the other programs of the SBA, and one on copyrights. You can
view the publications for FREE online or purchase printed copies.
You may be interested in a number of other subjects relating to your
business, so surf the catalog to see what information is useful to
you.
www.pueblo.gsa.gov

Another government site to visit is the U.S. Chamber of


Commerce. ChamberBiz is “an easy to use site that makes every
aspect of owning and operating a business faster, easier, and more
productive.”

ChamberBiz connects all the state and local chambers around the
country to small businesses. Joining your local Chamber as a new
business in town is important for understanding local issues that
effect your business, and for networking with other businesses in
your community. You are likely to generate some business too.
www.uschamber.com

The information presented in this chapter is a broad overview of


many of the resources available through the United States
Government, in particular the Small Business Administration which
was mandated by Congress fifty years ago.

The programs of the SBA alone are vast and inclusive. Take
advantage of opportunities available to you for FREE information,
training, assistance, and loan guarantees. Small businesses are the
very foundation of the American economy and society. Your
business is an asset to us all, and your government wants to help
you in as many ways as possible to guarantee your success.

INTRODUCTION ABCDE F GH I J KL M N O P Q R S TUV W XY Z LINKS


a
mm VIDEO, TELEVISION & CABLE

V
Recommended Books

Basics of Video Production by Des Lyver, Graham Swainson - This


book is a well-organized guide for first time directors and producers. It
gives a concise overview of studio equipment, crew responsibilities,
lightening, audio, wardrobe and more.

Before You Shoot: A Guide for Low Budget Film and Video
Production - This is a book for the novice, and explains terminology
and various activities of video production. A great place to start!

Film and Video Financing by Michael Wiese – All the ideas and
strategies you need to get the funding established for your video
production.

The Independent Film and Videomaker’s Guide by Michael Wiese -


A thorough manual on film and video production combining the creative
aspects with the necessary business functions of raising capital,
scheduling, and budgeting. Useful exercises at the end of each
chapter help you to formulate and design your own plans and ideas.
Covers the gear and equipment, writing a mission statement,
distribution channels, developing ideas for a script, producing a video,
music, Cable Network services, television, and much more.

The Low Budget Video Bible: The Essential Do-It-Yourself Guide


to Making Top Notch Video on a Shoestring Budget by Cliff Roth -
Primarily for shooting with a camcorder for personal and non-
professional uses, this book does explain a great deal of video
terminology

Making Videos for Money: Planning and Producing Information


Videos, Commercials, and Infomercialsby Barry Hampe - Learn
how to plan, write, and direct a video for clients. Though the
information may not apply to your situation, much is useful for your
process. Sections include: Planning (including research and
scriptwriting), Making Information Videos, Making Commercials,
Making Infomercials, and Business Considerations, including budgets
and a detailed production checklist.

Marketing with Video: How to Create a Winning Video For Your


Small Business or Non-Profit by Hal Landen – Read excerpts online
from several chapters in this book including The Elements of Video,
The Script Overview, Writing the Script, and Preproduction Planning.
As the author says, “This book and video show you how 135 million
VCRs ( in America alone) mean a lot of business for you! Order from
the author and Oak Tree Press online at
www.videouniveristy.com/ordrnew2.htm. Special online offer
includes the book, a video and catalog of public domain footage.

Today’s Video- Equipment, Set-up, and Production by Peter Utz –


The purpose of this book is to teach you what you need to know for a
productive career in video. The book focuses on video production and
techniques for the small-scale operation. The book addresses both the
technical and aesthetic aspects of video making. Topics include how
monitors, receivers, recorders, cameras work; videotape copying and
editing, camera techniques and positions, lighting; camera switched
and special effects; planning and production techniques; scripts, and
more.

The Videomaker Handbook: A Comprehensive Guide to Making


Video by Videomaker Magazine, the Editors of Videomaker Magazine
– This book explains the basics while offering some tips from Pros.
The book provides complete production information and covers all
aspects of planning and making a video.

Television
100 Best TV Commercials: And Why They Worked by Bernice
Kanner (Introduction), Michael Conrad – A “critical but fond” look at the
best commercials in 15 different categories. The question is are there
universals that separate the great from the mediocre? This book is
useful because it explains what advertising does and when it does it
well. Almost half of the commercials are from other countries, so many
will not be familiar. You should get some great tips and insights from
reading this book.

Broadcast/Cable Copywriting by Peter B. Orlick - This is a very


thorough book on the rules and techniques for audio-/visual writing.
Special requirements of this media require short pieces. An entire
section of the book is devoted to radio advertising, and another to
television advertising. A final part is on the concept of developing an
organized and coherent campaign.

Direct Response Television: An Authoritative Guide by Frank R.


Brady and J. Angel Vasquez - This book provides information on how
to “capitalize on the potential and avoid the pitfalls of this hot medium.”
The book will show you what DRTV (Direct Response TV) can do for
you and how to do it, including how to produce a commercial, how to
choose partners and suppliers, and how to develop an effective
marketing strategy.

Direct Marketing Through Broadcast Media: TV, Radio, Cable,


Infomercial, Home Shopping, and More by Alvin Eicoff, Anne
Knudson - Mr. Eicoff is one of the pioneers of Direct Response
marketing in the broadcast media. Get insights and knowledge from
one who is intimately involved in the industry. You’ll learn how to test
and select the medium for your product; how to get the most from
radio, cable, and other interactive technologies; how to handle
customer responses; record keeping; and how to create DRTV
commercials that sell more product.

How to Make Big Money Selling on TV by Craig Daugard - Order this


step-by-step guide from: www.smartbiz.com/sbs/books/book97.htm.
Mr. Daugard is a veteran home shopping expert with 25 patents who
has sold more than half a million dollars on home shopping television.
Discover what you need to conceive, market, manufacture, and sell a
product successfully on the TV home shopping channels.

Television Secrets for Marketing Success: How to Sell Your


Product on Infomercials, Home Shopping Channels, and Spot TV
Commercials From the Entrepreneur Who Gave You BluBlocker
SunglassesBy Joseph Sugarman - From successfully marketing
space age electronics through catalogs and mail order, the author has
moved to the power of TV marketing. Producer of eight successful TV
infomercials, and creator of one of the most successful promotions on
QVC home shopping network, Sugarman shares concrete ideas
derived from successful experience. Learn how to get your product on
QVC, and discover the secrets to making a winning DRTV commercial.

Recommended Websites

(http)://ajr.newslink.org/nett.html - The American Journalism


Review provides a link to U.S. Television Networks on this page at this
website. You can email many of them.

(http)://ajr.newslink.org/stattele.html -Another page on the American


Journalism Review website which provides links to every TV station in
the U.S. by state. Many have email addresses for an easy and
inexpensive way to contact the programming editor.

www2.targetonline.com/tm/articlesearch/drtv.html - You will find


approximately a half dozen articles on DRTV at this site. You can
purchase them for $3 a page, including shipping and handling, or email
the editor to negotiate a deal. Included are: “Making DRTV Work,”
“Selling Short: Why Short-form DRTV is on the Upswing,” “Selling on
Television,” and “When & Why to Consider Infomercials.”

www2.targetonline.com/tm/articlesearch/drtv.html - Abrupt Edge


offers film and video resources on this site. Review different pages
from the left menu bar, or go directly to “Video Production” where you
will find a number of specialized books on video production. Some are
recommended here.

www.fulfillmentnetinc.com - Fulfillment Net will customize a


program to meet your needs including material warehousing,
computerized inventory, point of sale and point of purchase, give-
aways and coupons, and trade show inventory. Located in Green Bay,
WI, call 1-800-514-1119 for more information.

www.fwmedia.com/reports/maillist.htm – This is the website for


Free Wave Media. You can download over 600 reports for FREE from
this site. You will find Mail Order and TV Infomercial Production
Reports and Guides. Choose the areas that relate to your particular
interest.
www.icemall.com/national/cabletv.htm - This page at Icemall
provides links to the three major networks as well as a number of cable
TV stations.

www.outbackmedia.com/services.shtml - If you want to broadcast


anything, you need to buy media time. Buy it by yourself or with a
company that is experienced negotiating with national and regional
experience. This company has access to “fire sale” buying
opportunities and buying media in cable TV. They specialize in
intelligent, targeted, and cost-effective media buying plans, and are
Located in Las Vegas, Nevada/

www.pmci.com/pmci/fulfillment.html - Professional Marketing


Communications, Inc. is a possible fulfillment company for your
Infomercial or short form Infomercial spot. They specialize in a 24-48
hour turnaround on all orders. Every order is shipped the next day or it
goes free. Your price is locked in for one year. Inquire about their
FREE “Guide to Successful Fulfillment.” PMCI, 918 Woodley Rd.,
Dayton, Ohio 45403, 1-800-4242-7624

www.responsetv.com – This is the website of the former DRTV


News which became Response TV in 1999. Response TV is the trade
industry magazine for the Direct Response industry. There are
fantastic resources on this website, including: An Introductory Guide to
Infomercials; an article on Producing a Commercial and an article on
Producing an Infomercial; articles on Telemarketing, Fulfillment,
Payment Processing, Duplication and Processing; Online DRTV
Resources; and A Legal Review of Direct Marketing. Finally, there is a
searchable database of over 500 companies in the DRTV business.

www.strategicfulfillment.com - Strategic Fulfillment can provide


product and promotional fulfillment, credit card processing, and
inbound telemarketing. Located in Big Sandy, Texas.

www.televisionairtime.com/index.html – Buy media here. Purchase


advertising time from virtually any radio or TV station in the country.
Whether you have a 30 or 60-second spot or a 30-minute infomercial,
you will find highly competitive prices here. They will assist you in
planning a comprehensive media strategy.
.com/information/cablechart.html – This page is a list of Cable TV
stations with the number of households and percentages of men and
women in different age groups who view each station.

www.tvadvertising.com/tvad/tvbigidea/campaign.html – TV
Advertising can establish a campaign for your product. They offer a
FREE booklet, TV Advertising Secrets, which you can order from this
website. The book contains ideas and information on how to make a
TV advertising campaign more effective.

www.tv-informercial.com/media.htm - Cannella Response


Television can get great rates for media time on an impressive list of
national cable networks and much more, including Lifetime, USA, Fox,
Sports Channel, Comedy Central, Discovery, the Travel Channel, the
Food Network, and Pax TV. They are located at 492 North Pine St.,
Burlington, WI, 53105, phone 262-763-4810

Video

There are over 125 million VCRs in America. Between business and
home applications, the number is probably closer to 150 million or
more. Most mid-sized businesses have a VCR on the premises. VCRs
are most common in people’s homes, and many homes have several.
It is possible to bring television quality demonstration, information, and
advertising into the homes and businesses of prospective clients by
developing your own product and sales video.

In fact, video is a powerful sales tool you can use in many of your
marketing efforts. As you can see from the above figures, the
equipment for viewing videos is accessible and readily available. Take
a video with you to an Expo or tradeshow and run it continuously for
attendees.

It is not necessary to have a demonstrative product. A good video


contains testimonies of satisfied customers with some, but not all of the
product information. If you have a celebrity to endorse your product,
just having that person talking about the benefits of the product and
what it has done for him/her catches the attention of your audience.
Celebrities are not necessary, however. Use interesting, powerful, and
suggestive images to create much the same effect.
Use a video presentation when speaking to small groups or in
individual presentations. If you anticipate a large crowd, bring several
VCRs and monitors to locate strategically around the room rather than
rent expensive equipment to project video images onto a big screen.
Often a video presents just enough information for people to begin
asking questions. Your product video is good for one-on-one sales
presentation for the same reasons.

You can use your video to make a presentation to the program


manager of a radio station prior to an appearance on a talk show or to
demonstrate your product for obtaining a broadcast interview. Though
radio is totally non-visual, you can make the offer of a FREE video to
listeners. If you make such an offer, make sure you have arranged
inexpensive video duplication, and that your pricing margins can
absorb the costs of mailing possibly thousands of videos.

Analyze your profit margins before you undertake such a process.


Also have a good idea of the percentages of people that order product
after seeing the video. To increase these percentages, allocate time for
the sales staff to follow-up a video mailing with personal calls to all your
prospects. Make yourself available to speak with potential customers
who need or want a little more attention. (See Chapter S- Selling and
the Sales Process.)

You can use your video to make product presentation in your


negotiations with representatives of a catalog. Generally a catalog
uses its own in-house photography, but if you send them a video that
includes some professional still photography, they may want to use
what you have. At the very minimum, you can expose them to the best
representation you have of the product in a visual, moving, format.

There are many kinds of videos. The New York Film Festival lists an
incredible 75 varieties. There are sales videos, product videos,
corporate image videos, and presentation videos, to name a few.
Another kind of video is called a POP, or point-of-purchase video. You
see these in mass merchandisers or retail stores where the product is
being displayed. The idea is to offer visual presentation of the product
in use. The purpose is to get the attention of shoppers and get them to
buy instantly.

You don’t need to make more than one type of video, especially in the
beginning. As you write or outline the script for someone else to write,
be aware of the different groups and the different applications for your
video. Remember the various applications and uses above.

There are several other potential uses for a company video. A video on
your product or service will enhance your ability to interest another
company in a Joint Venture. A video will also be very useful in a
presentation to a Venture Capitalist. A video is a very strong marketing
tool in a targeted Direct Mail campaign.

When you are planning a Direct Mail campaign, outline the entire
campaign carefully. Know what you are sending to each customer at
each point in the campaign. Sending a video to people who have
already received several other forms of solicitation on your product can
be very powerful. A video also makes an excellent FREE offer in a
newspaper or magazine advertisement. (See Chapter N-Newspapers
and Magazines.)

You can either load your entire video on your website if you have
enough pages and storage, or you can offer an abbreviated clip, or
even stills. Customers can send for a FREE video through the
Internet. In every case, before you advertise a FREE video anywhere,
make sure you have the margins to send one for each and every
request you receive. It is very reasonable to offer a FREE video but
charge a shipping/handling fee. Your ad would run like this: “Send for
your FREE video on-------Enclose $3.50 for shipping and handling.”

Yet another application for your product or service video is in-house


staff training and personnel development. The focus of a marketing
video is to create sales, but new staff can learn a lot about the product
or service from your video. They can use quotes from the testimonies
in their own sales efforts. Be aware that you can order generic training
videos on the Internet. These videos are worth purchasing if you have
a large staff to hire and train.

Not every product or service lends itself to video presentation. Only you
can make the judgment as to whether a video will benefit your
marketing efforts and be useful in other ways, as well. Because no one
in your field or industry is using videos at this time does not mean that
they won’t be highly effective if budgeted wisely and used creatively.
The most important part of any marketing effort is the follow-up with
your potential clients and customers. Always make a number of
attempts to reach your prospect. Leave very compelling messages.
Remember, people are searching for friendly people that care about
the quality of their lives. You have a product or service that can benefit
them. Whenever you send your video from a request for the FREE
offer, be sure you have several ways to contact the person again.
Calling will definitely increases your sales, so be sure that you or staff
always follows-up on your leads, even if it takes several calls.

After four or five calls leaving messages, state that you have made a
number of attempts (you can give the exact number) to reach them
without success. State that you will not be calling again, but they are
welcome to call you at the office at any time. Be sure to tell them you
will be glad to hear from them at anytime, and be happy to answer any
of their questions. Leave your 800 phone number and always be very,
very, pleasant.

Time and money are hardly unlimited when you start a business, and
the demand for both grows with your business. A product video is
something that you can make or have made at any time. The question
is would your company benefit more from allocating the resources and
staff time to other endeavors. If someone on your staff wants to
undertake the project of making a video, there are very definite benefits
and uses to having one. At the beginning of this chapter are a number
of recommended resources for making an in-house video.

Let’s say you decide to investigate the possibility of creating a product


or service video. You can interview companies in your area, as well as
nationally to get a concept of the costs. Begin by looking in your Yellow
Pages, or on the Internet, for video production companies in your area
or your state. Call them and inquire about their procedures. Their
answers, or questions, will help you to formulate what you want and
how much you can afford.

Unless you are familiar with the process, or have associates in the field
of video production, these calls are important to establish a foundation
and help you develop an idea of what you want. These companies will
give you a list of the things you will need to decide about your video.
Call at least three companies to get an idea of competitive pricing and
the variations in programs.

One question every company will ask is what format you want to use
for producing the video. High quality video is called Betacam. Less
expensive, with lesser quality is SVHS (Super VHS) or Hi-8. It is a
good idea to locate copies of all these formats, transferred to VHS, so
you can see the difference for yourself. Regardless of the production
format, your video will be in VHS for popular viewing.

With at least three preliminary estimates, consider the advantages of


someone on your staff creating a video with your supervision. You can
undertake this project yourself, but work with at least one other person
who can keep the project moving when you have other matters that
need attention. This project is no different than any other activity that
can consume your attention, so make sure that you can delegate
responsibility when you have other urgent matters to manage.

The most important element of your video project is your script. The
script is the plan for your video. A good script is crucial to creating the
video within the budget and time frame. Before you hire a company, or
decide who is going to film the video, take the time to develop a good,
concise, script. You do not have to write it yourself. Hire a writer, if you
feel uncertain about the medium. You will want to work closely with this
individual in the presentation and development of the ideas.

Write your script like a play or a screenplay. Though you may be


directing the video yourself, production days will be confusing enough
without having to stop everything to add or make modifications to the
script. Regardless of who is directing the video, production involves a
lot of costs. If you work with a production company, you may not be
able to change anything on those days without incurring significant
additional expenses.

Include every element that you can describe in the script: day or night;
interior or exterior; characters or actors with dialog; customers with
testimonies; and audio and visual effects. The length of the script will
determine the length of the video. Generally the shorter the video, the
more effective it is. You won’t find many people who will watch a 45-
minute product video. Even 20 minutes is too long in most cases.
You are likely to get the best responses from audiences, with a short, 5
to 10 minute video. It is difficult to estimate how many pages your script
should be for this length video. A lot depends on how descriptive the
writer is, and how much action takes place. Write your script and ask
the director or the video company who will be shooting the film,
whether what you have is sufficient or too much. Use a screenplay
format, which you can find on the Internet or at your local library.

You will need to edit the video, so plan to shoot more footage than you
need for the finished product. When you begin editing, you will see
certain elements do not work or fit with your plan as you had
envisioned them before they were in moving color. Therefore, make
sure that you have enough other material to fill in. You want to avoid
having to return to shoot additional scenes after you have “wrapped”,
or finished your filming.

A good way to begin writing your script is to view other videos on your
type of product or service. Study how they present information on the
product, whether or not they use testimonials, and what benefits they
stress. As you view these, ask yourself if what they emphasize is
important. Viewing how your competition presents product information
is helpful in determining what you feel is important.

Write your script directed to your target audience. This project is no


different from any other advertising effort in its emphasis. Talk about
benefits. Show benefits. Describe them. Every “audience” has needs
and desires. Address them, and vividly demonstrate how your product
provides answers. The video is a moving, visual experience that
captures people’s imagination like no other.

Be as big and grandiose as you want in this effort. You can go


anywhere in the world or the universe with excellent images from the
Internet. You can use still photos and music of any kind to create a
mood. Be creative and have fun!

Remember the object is to get your potential customers to ask


questions and seek more specifics. You want to present some
compelling benefits visually and metaphorically. You want them to seek
more information. Have the beginning and ending frames post ways to
contact your company: your 800 phone number, the address of the
company headquarters, and your URL, or website address. You also
can add this information on the bottom of the screen during the video.

Here are just a few suggestions on the actual production aspects. Even
though the film will be transferred to VHS, shooting it with a home
camcorder or rented equipment makes little sense. Consider spending
the necessary extra money to hire professionals to shoot the film for
your video in one of the highest quality formats. You may make a TV
infomercial or short form DRTV infomercial at a later date. (See
Television in this chapter.) If your video master is of broadcast quality,
not only will you have superior footage for your video, you will also
have footage for your infomercial. Be sure you get several opinions on
the broadcast quality film format to use.

If you are a photographer, chances are you find close-up photos of


people more impressive than pictures with people reduced to tiny
images by a stunning background. Make sure that you get faces in
your video. Zoom into people. Make your video up close and personal,
as though the person talking is sitting right beside you.

Be very careful with gimmicks in a short video. Stay focused on your


message. Spend time creating a mood, but do it simply without fancy
stunts. Cost is another reason to avoid special effects. You can be
subtle and suggest an idea or situation without having to actually
portray it physically in the video. Focus on your message. Let your
customers speak with their testimonials to your new prospects.

One very good reason to make a video is to have the magic of this
medium available for whatever uses you can imagine and develop.
Psychologists maintain that when people are watching TV or video,
their minds switch into a semi-hypnotic state where they become very
receptive to suggestion.

People not only absorb information, they subliminally accept attitudes.


TV and video have a lure. A kind of magic spell emanates from the
“tube.” If you turn on the TV or slip a video into a VCR in a room where
people are casually chatting, within minutes all heads have turned, the
conversation dwindles and then stops as people become riveted to the
TV.

Your company video can have tremendous power on a multiplicity of


your sales and marketing techniques if it is well made and compelling.
There is no more gripping, engrossing, or enchanting technique for
capturing the attention of the buyers through an enormous range of
venues. Get a good video in front of people and they will buy.
Television

In general, the vast majority of us will never reach the point where we
want to spend advertising dollars as quickly as television will take it
from us. There are so many other alternatives to advertising and
marketing. Take your time in approaching most aspects of this
medium, regardless of your product or service.

TV can have a huge impact on viewers. The combination of sight and


sound with a moving picture literally mesmerizes everyone. Product
providers can demonstrate the product as if they were face-to-face with
the potential buyer, and reach thousands of people with one showing.
This is a rather staggering potential, but it is just a potential.

Celebrities have a great influence on people’s buying judgments.


Whether or nor they have any knowledge or experience of the product
or service, the fact that they speak intelligently (from a teleprompter)
gives the impression that they use the product. People pattern the
habits of people they admire, so they buy products because of a
celebrity endorsement.

You can target an audience with Television if you know what programs
your audience favors. Then the problem is securing a space, because
spots are limited, and there is a great demand for advertising time
during popular shows. Television marketing has no loyalty to stations
or networks. Find the programs your market follows, and advertise
there if you can.

An effectively targeted campaign can be very successful in reaching a


huge number of your ideal customers with your message. The problem
is there is no way to follow-up with these people. Some may see only
part of the message. Refining your message and making it so powerful
that you generate immediate sales is virtually impossible. Your
audience has to view the commercial several or many times, and each
broadcast costs you thousands of dollars.

Also people tend to deliberately tune out commercials. TV is for home


entertainment purposes, so when there is a break in programming,
most people get up for a snack or to go to the bathroom. Statistically,
men use the remote more than woman to “channel surf” or catch
glimpses of what is playing on other stations during a commercial
interlude. Some people attempt to watch two shows at once on
different channels. In cases like these, viewers are highly unlikely to
view the commercial messages.

No doubt the biggest problem with marketing products on TV is the


decentralization of the networks and the growing popularity of cable
and satellite programming. The three major networks no longer
compete for the TV audience. In many homes there are hundreds of
choices for viewing, so many that it is difficult to know where your
audience is at any given point in time.

Cable TV provides the opportunity to reach specific groups such as


other business people, and narrow your message to a neighborhood or
community. If you want to create an infomercial on cable TV, the cost
may be what a one-minute spot used to cost on regular commercial
TV, which is still thousands of dollars. There are 24-hour cable stations
that broadcast one infomercial after another. If you feel your product
would benefit from participation in such a program, contact various
cable stations in your area for opportunities.

There are opportunities in Television marketing for the small


businesses and entrepreneur. One of the newest hybrid advertising
formats in television marketing is called the DRTV spot or DRTV short
form Infomercial. DRTV (short for Direct Response TV) is the segment
of the industry that created the Infomercial. The 30-minute long form
Infomercial brought strong marketing results for celebrities and ordinary
people in the 1980s. The long form Infomercial still has a magical and
mystical appeal to many people. A common misconception is that if
you can get an Infomercial made, orders will flow like water.

The fact is that a significant number of Infomercials fail, and are pulled
from distribution. Statistics are incomplete. One figure commonly given
is that 1 completed Infomercial in 40 is a financial success. Others
maintain that the success figure is more like 1 in 15. Regardless, with
the substantial sums required for producing and airing an Infomercial,
one failure is one too many.

Though the medium is different, Direct Response Television and Direct


Mail function in much that same way. The purpose is to move the
consumer, in this case, a viewer, to purchase the product at that
moment. The medium for conveying the message is Television rather
than a sales letter.
Short-form spots are from 30 second to 3 minutes in length, but they
are most commonly 60 seconds. Unlike the 30-minute Infomercial,
short-form spots are not scheduled as a program. Instead, they are
inserted between existing programs. The distinguishing feature
between short form DRTV and a regular commercial is the element of
direct response. The advertiser (you) collects leads and generates
sales orders directly each time the spot airs. Run your 800 phone
number and your URL (website address) across the bottom of the
screen continuously throughout the 30 or 60 second message.

DRTV short form infomercials are known as spots. They give the
advertiser immediate feedback. The average length of a traditional TV
marketing campaign is at least six weeks. During this time the
advertiser is running multiple airings each week. The cost can be
astronomical for the advertiser while he/she waits for a change in
product sales in traditional means such as retail. Direct Response TV is
attracting advertisers from every major industry, including some large
corporations, because the advertiser learns from the first airing how the
public feels about the product.

Like the Infomercial, a spot deliberately solicits immediate sales


through a strong “call to action.” You know you have winner if the
phones begin ringing. If the response is poor, pull your spot, take the
film back to the studio and re-work your celluloid project. You probably
want to get the reaction from several airings, before you cancel a spot,
but you will save tens of thousands of dollars in scores of unprofitable,
possibly harmful airings. If your spot is successful in prompting people
to order, you will generate significant income. Throughout the short
history of this industry, 75% of the responses to DRTV advertising
come within the first 15 minutes of airing.

Television, of course, is a great medium for demonstrating your


product. The consumer needs to see certain products like exercise
equipment, home and kitchen gadgets, and jewelry. Tradeshows and
Expos are excellent viewing venues, but you can reach thousands
more effectively with a DRTV spot. Creating your own video is an
excellent way to provide your contacts a visual experience, but you
want to develop an outreach program that introduces your product to
new potential customers.

Television is the best medium for showing products in action. However,


do not undertake the production of a DRTV spot without a complete
investigation into the total costs you will incur. It is better to build your
business slowly and stay in business, than spend all your resources
attempting TV advertising that might not work. In other words, don’t let
this seductive medium bankrupt you.

If you are currently in some retail outlets, a DRTV spot gives a great
boost to those efforts. According to industry reports, “The Infomercial
Marketing Report,” you can anticipate selling 6 to 8 additional units in
your retail locations for each product you sell on TV from a DRTV spot.
Also, selling through DRTV sets a standard for your pricing with retail
outlets. If you successfully sell a product on television, you set a
benchmark for retailers.

There are some objective criteria for judging whether you have a
product that is well suited for DRTV advertising, or TV advertising in
general. Perhaps the most important is novelty. Your product must be
special. The uniqueness does not necessarily have to relate to utility,
or what the product does. It can relate to the price, especially if you can
offer a significant price break over competitors.

Two other important elements your product should have for a


successful DRT spot are a general mass appeal and a high, perceived
value. Targeting your audience is impossible on TV, unless you have
the money to buy spots for the programs your target audience may be
watching. The appeal of your product needs to be general enough to
capture the imagination of a percentage of the viewing public with each
airing.

A niche product is better marketed where you know you will find the
audience. You have precious little time to capture the interest of the
viewer. He or she will mute the channel, leave the room, or surf to
another channel within 15 seconds of the beginning of your spot,
unless you have engaged his/her attention.

The viewer is constantly evaluating your offer while the spot is running.
Not only do you need to create desire for the product, the consumer
must realize that this is a special offer he can’t miss. With only 60
seconds, the best way to create urgency is to make an irresistible
special offer, such as: “Buy one now at the regular price, and get an
additional product with a 15% (20 or 25%) discount.”
Offer to include a free copy of your video. Another possibility is to offer
a trial or travel size. Spend some time developing a unique sales pitch
just for this medium to boost the perceived value. Remember, people
love bargains. Package your offer so the customer feels like he/she
has a bargain.

If you are the first, be sure to proclaim your originality. Once your
product appears on TV, expect to be copied. As you will remember
from Chapter L-Legal, a patent is very expensive and doesn’t
guarantee much unless you are willing to spend a small fortune
defending your claim. Nothing stops your foes from plagiarizing your
product while you are involved in what can be years of litigation. The
best plan is to maximize your position in all your advertising, and
corner the market with massive exposure through as many techniques
as you can manage.

The main benefit of DRTV advertising for you is that you have the
opportunity to demonstrate your product to tens of thousands of
people. On TV, you are in their living rooms and they are watching. Be
big. Be bold. Be beautiful. Be exciting with your product. Impress your
customers so much that they want that product, now!

As in every marketing endeavor, stress the benefits. Always stress the


benefits. Do not air any commercial of any kind, unless you have
isolated at least several benefits and can demonstrate how the product
will make a difference in people’s lives.

The availability of financing for an expensive TV marketing campaign is


the final key element in this package. TV advertising, whether you
consider a short-form DRTV spot, a 30-minute Infomercial, or the very
expensive standard prime time commercial, could consume your entire
advertising budget or more. You could spend more on one DRTV spot
and the airings for it, than all other techniques combined. Be certain
you are going to make sales, and lots of them.

The production costs for a 30-minute Infomercial can range from


$150,000 to as much as $500,000 or more. As staggering as these
costs are, advertising agencies charge their customers a similar
amount for one 30-second commercial for prime time television.
Compare the costs of a one minute DRTV commercial to the average
$300,000 cost of a 30-second Madison Ave special. Depending on
what your script calls for in the way of location and talent, you can
produce a DRTV 60 second spot for about $25,000 to $35,000. You
can also run the costs up into the hundreds of thousands.

As mentioned in the video section, when you make a video for your
different advertising and promotional uses, employ a professional with
high quality equipment and the best quality broadcast film.

You can purchase discounted airtime for your DRTV spots from 30-
80% off the cost of purchasing regular airtime. These are basically
“remnant” or unpurchased time slots. You can pay as little as $25 to
$50 a minute. Scheduled time can cost as much as $4,000 a minute.
Most short-form spots air during off hours.

The disadvantage to buying discount airtime is that at anytime your


spot may be pre-empted by a full paying customer. If you rely on
discounted times, book as much as twice the number of spots you
would purchase outright for a specific period of time. Most DRTV spots
appear on cable TV, and the expensive prime time slots are usually pre-
sold.

Hire an agency, a media buying company, to manage the details of


purchasing your airtime. Several are recommended at the beginning of
the chapter and you can find others through search engines and
personal referrals. Ask your local video production company who they
would recommend.

There are thousands of TV stations across the country. Companies


specialize in just buying media packages at the best prices. They know
how to negotiate a program to fit your needs. They can help you target
different areas of the country, and secure the best rates for you. In
some cases, their reputation and buying clout will be the major factor in
getting your commercial spot on a station’s roster. You will receive a
statistical analysis of which stations are producing best for you, and
why.

In addition to a media buying company, you must hire a telemarketing


service to handle all your in-bound 800 phone calls. After an airing, the
800 phone service receives a “spike,” a huge influx of calls for a
relatively short time, usually less than an hour. Your spot stimulates
people to, “Call now! Operators are standing by!”
Most media buying companies have an in-house telemarketing service
for their clients, or can recommend several you can contact. You are
not obligated to use their telemarketing service, but having your
auxiliary support services in one company is convenient.

Just as you expect to receive a report on your DRTV spot’s airings


from the TV stations, the telemarketing service should deliver a
complete, accurate, and detailed report on the date and times of an
unusually high volume of orders. Use the two reports together to target
the best times and locations for future airings.

If your product meets these objective qualifying criteria, and you are
ready to spend the minimal funds necessary to create a DRTV short
form infomercial or spot, you can begin the process in one of several
ways. If you contact several media buying companies, you can
ascertain whether they can assist you directly with the telemarketing.
You can also discover what the costs will be to have them produce the
spot and how much involvement you can have. If you have a script and
broadcast quality footage, you may save yourself some money.

If the media buying company does not have a production unit within the
company, they will have many references for you. This job requires
professional expertise that you and your staff are unlikely to have.
More than likely, you can contribute to the project with the script, but be
advised that the director will make recommendations, and you will do
well to accept his professional assessment.

Another approach for you is to hire the professionals with the proper
equipment, and make the commercial spot yourself, edit it, and present
it as a finished product to the media buying company. If you plan to
make the spot yourself, use a visual and audio version of the AIDA
formula we have discussed in many chapters of this book. The
appearance is slightly different in various media, but the thrust will
always be the same.

With only a minute to present your entire information, use a short form
Infomercial spot that will get their Attention immediately and focus on
selling the offer to people. Use the attention-getting words in your
“voice-over.” Do not attempt to describe the product. You do not have
time.

From the beginning, ask for the order. Create the Action phase early
in your 60 second message by flashing the 800 phone number and/or a
website address across the screen. You can run these two along the
bottom of the spot for the full 60 seconds. Just the visual presence of
these two sources for more information and a place to order creates a
strong “call to action.”

Follow the standard form of the AIDA formula except that the “action”
phase must be introduced with enough time for the prospect to get the
ordering information written down carefully. 60 seconds is not very long
to create Interest and Desire, but that is your task.

Plan a strong offer that causes the viewer to stop and think about what
you are presenting. You can create interest by enhancing an already
attractive product at a reasonable price with coupons and discounts for
future purchases, 2 for 1 offers, free gifts and videos. If you can design
a “For TV Only” incentive offer you will be moving from creating interest
to establishing desire.

A final consideration in establishing the systems you will need to


advertise a short form Infomercial or DRTV spot, is deciding who will fill
the orders as they come into the telemarketing service. The easiest
solution is to hire a telemarketing company that provides fulfillment as
well, but the two are very different services.

A few fulfillment companies are recommended in the resources at the


beginning of this chapter. You can find more on the Internet by
searching under “product fulfillment companies.” You can also find
some listings in the Yellow Pages in major metropolitan areas.

One strong consideration is the location of the fulfillment company to


your manufacturing facility. If your product is large, bulky, or heavy, you
will be paying a significant amount of money to ship quantities of
product to the fulfillment center. Their job is to package and send
individual units to customers.

You can elect to manage your own fulfillment in-house to avoid


incurring the costs of shipping twice. You may want to begin handling
fulfillment, and “job out” the responsibility later. As you interview the
media buying companies, find out whether they have the support
infrastructure for telemarketing and fulfillment. If not, find out whom
they recommend for the services.
You can keep the fulfillment process in-house, but be sure to hire a
solid and reputable telemarketing service for your in-bound 800 phone
number product orders. No office phone system is sufficient to handle
the periodic “spike” in calls that can occur when a short form
Infomercial spot hits a receptive audience. You never know when the
burst in orders will occur, and you do not want to lose callers or orders!

Home Shopping

Another form of TV advertising that can be very lucrative is showing


your product through the home shopping shows and stations. There
are a number of shows that function as home shopping stores. There
are four actual networks that show products, most of them twenty-four
hours a day. You can get a schedule or program guide from the
websites of these TV networks.

TV Home shopping is relatively new. The Home Shopping Network


(HSN) began in 1985, followed by QVC in 1986. These two are the
largest. They move the most products, and have the biggest shares of
home shopping revenues. Shop at Home and Value Vision are smaller
and less well known. You may find the application and acceptance
processes for the smaller networks easier than for the two larger ones.

The public’s participation and fascination with home shopping only


seems to be increasing which is making the opportunity better and
better for product providers. In 1994, home shopping revenues were $3
billion, and every year revenues increase. Vendors, or the product
providers, like you, receive a good percentage of those revenues.

Home shopping has a demographic customer profile that fits the image
of a certain type of shopper. If your target customer matches this
summary, consider applying to the different home shopping channels
to see what interest you can develop in having them market your
product with them.

TV home shopping attracts highly educated, middle to upper income,


middle-aged and above women. Over 60% of home shoppers are
woman over the age of 35, and between the ages of 35 and 64.
Traditionally, these women search department stores for deals. The
annual household income is over $30,000 and closer to $70,000.

These figures are available from the NPD Group, a Port Washington,
New York market research firm. In addition to identifying well over half
the home shopping market, their figures indicate some regions of the
country account for stronger sales than others. In particular, home
shopping is popular in the Mid-Atlantic States and the East North
Central region of the U.S., comprising Ohio, Indiana, Illinois, Michigan,
and Wisconsin.

The format for home shopping is similar whether your product is on one
of the networks, on a home shopping program, or on another Cable
channel. A show host introduces an item and gives the regular retail
price. He or she then presents the (lower) TV price special for that day.
Sometimes celebrities are involved, especially if you contract with
them. Generally, the show host is a regular presenter for the network
or the show.

The host engages the audience with trivia games, drawings, and
various specials connected with the offer for that product. The format is
meant to be entertaining as well as a showcase for products. The goal
is to actively involve the audience rather than have them sit passively.
The number of people who actually purchase products usually
averages between 6-8% of the viewers at the time.

Home Shopping companies sell virtually every form of merchandise.


There is no limit to what they can sell. The products vary from food
items, to jewelry and clothing, to camping equipment and car
accessories, to toys and small home appliances. Some companies
feature brand name products, or discontinued items that the
manufacturer plans to replace with a newer model. One company has
experimented with financial services and mutual funds. The different
home shopping companies are looking for ways to distinguish their
programming, presentation, and products from the other companies.

Success for the home shopping networks depends upon an


entertaining presentation of a broad variety of products at great prices,
and the ability of the home shopping network to fill the orders properly
and promptly. Probably the biggest and most important part of the
home shopping business is the order entry process and fulfillment.
Customers call in to order a product they have seen on a home
shopping TV program. Telephone operators at the network enter the
order into the computer. The computer sends the order to the in-house
fulfillment center from which the product is shipped within 24 hours.
This basic three step process is an enormous undertaking because
each network sells thousands of items a day.

It is not uncommon for QVC and HSN to each ship in excess of 30,000
items in one day. Effective and efficient data processing with a high
degree of competence in the shipping department have made these
companies what they are today. Customer satisfaction is one of the
most essential ingredients in the ongoing success of home shopping.
People are naturally impatient to see the products they have
purchased, and are anxious for their merchandise to arrive.

Products are almost exclusively purchased with credit cards. Liberal


return and refund policies help ease customer concerns about
purchasing. The policy of the home shopping companies is to allow
customers to return merchandise within 30 days for a refund or
exchange. HSN and QVC average about an 11% return rate. The
industry as a whole averages anywhere between 8% and 17%. If a
customer returns the product, ultimately the product provider bears the
cost.

Regardless of discounts or special prices, the consumer still has to pay


shipping and handling. Unfortunately, if he/she decides to return the
product, there is a second shipping cost.

Much of the above information is from the Better Business Bureau.


When you decide to begin examining these avenues for your product,
be aware that most products on these shows offer price bargains.
However, the network presenter may exaggerate the savings claims. If
you elect to present your product, make sure that the pricing
information your host or presenter gives is honest and truthful.

In general, the home shopping networks are anxious for consumer-


oriented products that have at least a 4:1 mark-up. This means that
they can offer your product for four times your cost. They prefer a mark-
up of five or six times. If your profit margins are less than these
percentages, your product is not a candidate for home shopping. In
general, the minimum price of a product is $15. If you have a small,
reusable item consider re-packing or bundle-wrapping several units
together.

The process of acceptance and scheduling can take several months. If


you can, work closely with an advisor from the network. That person
can help you anticipate how long it will be before your product gets on
TV. If they accept you, they will send you a purchase order for a
specific number of units. You sell these products to the home
shopping network and receive a check.

Below are the four major home shopping networks with their contact
information. Contact the network or the show where you would like to
present your product. Ask them to send a full application. Ask any
additional questions you have. You can download the QVC application
from the Internet.

Home Shopping Networks

HSN- The Home Shopping Network


New Business Development
1 HSN Drive
St. Petersburg, FL 33729
1-800-436-1010

www.hsn.com - Click on “Company Info” to find vendor information.


On the vendor information page is a link “To Apply to Become a
Vendor.”

QVC - Studio Park


Vendor Relations
Mail Stop #128
West Chester, PA 19380-4262
610-701-8282

www.qvc.com - On the homepage, click on “Corporate HQ” on top


menu bar. On the Corporate HQ page, scroll down the Left Menu Bar
to the last topics, “Vendor Info.”

Shop At Home
P.O. Box 305249
Nashville, TN 37230-5249
615-263-8000

www.collectibles.com - “Shop at Home” sells specialty consumer


products, “primarily collectibles, through interactive electronic media,
such as broadcast, cable and satellite television, and the Internet.”
Shop at Home owns six TV stations across the country, and reaches
56 million households through its 300 affiliates, cable, and direct
broadcast satellites.” Collectibles.com seeks to become the premier
online community for collectors.

Value Vision
6740 Shady Oak Road
Eden Prairie, MN 55344
612-947-5200

www.vvtv.com - Browse the Specialty Stores online: including the


investor’s division, jewelry, computers, collectibles, electronics, pets,
health and beauty, fashions and toys. Contact them for information
and application to become a vendor. Value Vision inaugurated a
special wine division in April of 2000.

Cable

The average TV viewer may not be able to distinguish between Cable


and Television. In some areas of the country, one cannot access any
channels without a cable hook-up. For others the effect of getting cable
is getting more incoming channels. The fact is that cable is Television
for most Americans. This is a new phenomenon unknown even a
decade ago. Cable stations produce widely popular shows such as the
X-files. Decentralization has seen the market share of the one time big
three affiliates, ABC/NCB/CBS, drop more than 14 share points to
make room for the rise of Cable networks.

You have seen how cable companies embraced advertising DRTV long
form (30 minute Infomercials) and the newest hybrid, the short form
Infomercial spot. The home shopping channels and affiliates are on
cable stations, as well. The fact is that cable TV has emerged as the
major force in television within the last 10 years. The reason is that
Cable TV has both a targeted and a universal appeal. Viewers can pick
from a variety of programs 24 hours a day. Programming such as
news, sports, drama, sitcoms, movies, and lifestyles, is available on
Cable.

Cable television offers affordable primetime advertising, regardless of


whether the station is showing movies, specials, documentaries,
sports, or local programming. In every case the cost is significantly less
than prime advertising on the big three networks. Estimates vary, but
the average spot commercial on cable is $45.

Some channels like USA, ESPN, TNT, Lifetime, and Discovery offer
various promotional opportunities. Another interesting fact is that cable
attracts male viewers, especially on ESPN, Prime Sports, and
News/Business on CNN. If your product is geared toward men in
particular, developing spots for these channels could prove especially
lucrative.

One underlying commonality of all electronic media is a tremendous


capacity to arouse an emotional response in the viewer. This is true
whether you write and produce a video in-house, or hire a company to
create one for you. It is true for the 30-minute long form Infomercial and
the newer, shorter, much less expensive, 60 second DRTV spot
commercial. In each case, the medium captures the viewer’s
imagination. Sales are a logical extension.

The appeal of home shopping is much the same: to arouse and excite
viewers, and encourage them to “Buy now!” When your product is with
a home shopping network, they manage much of the promotional and
purchasing process for you. When your product sells well the first
time, home shopping will schedule more lucrative appearances for your
product to appear on their network.

What sets DRTV apart from regular TV advertising is that the spot or
Infomercial gives consumers enough information to make a purchasing
decision and gives them a way to complete the purchase.

The potential rewards are tremendous when your product is accepted


on the TV home shopping networks. You get exposure and sales at the
same time. Successful TV advertising is both a skill and an art form.
You can learn more about how TV and video persuade, entice, and
convince viewers through observation and study. Find individuals in
your community who specialize in production to understand the
intricacies of this magic medium.
INTRODUCTION ABCDE F GH I J KL M N O P Q R S TUV W XY Z LINKS
a
mm WORLD WIDE WEB

W
There is no reason anyone would want a computer in their
home.” - Ken Olson, Chairman and Founder of Digital
Equipment Corp, 1977

“I think there is a world market for maybe five computers.” -


Thomas Watson, Chairman of IBM, 1943
How rapidly our worldview changes!

Writing a commentary on The World Wide Web is a daunting


project. Hundreds of books have been written on both the Internet
and the World Wide Web, some very broad and others very narrow
in scope. In truth, separate aspects of the World Wide Web could be
entire chapters of this manual.

Presenting all the necessary and useful information for marketing on


the Internet would take several long chapters, and give the Internet
importance beyond what is appropriate for this manual. To keep
matters in perspective, this chapter presents useful information on
getting started with your marketing efforts on the World Wide Web.

Marketing Your Product on the World Wide Web: A Desk Reference


covers half a dozen specific marketing techniques in depth, and
includes dozens of recommended resources. You can read, or
download and print this booklet from The Marketing Desk Reference
companion CD which also provides a hyperlink to every website
listed in this manual.

After the recommended software listed below, the resources are


listed in the order of presentation of the topics for this chapter: the
history of the Internet and the World Wide Web, developing and
building a website for your business, finding a host for your website,
and some general promotional concepts.

Recommended Software

FrontPage 2000 - FrontPage is unquestionably the most popular


Web Design software. A large support system backs this product
including a Gallery of FrontPage-based sites that demonstrates how
novices and professionals use the software and e-commerce. Host
your website for free on Yahoo’s Geocities, Tripod, Angelfire, or Talk
City, and get recommended books that extend the features of
FrontPage. Downloads, support, and updates are available at:
www.Microsoft.com/frontpage/?RLD=29

Recommended Books

World Wide Web History


Weaving the Web: The Original Design and Ultimate Destiny of
the World Wide Web by Its Inventor by Tim Berners-Lee, Mark
Fischetti (Contributor); Michael Dertouzos - A blend of the history
of the World Wide Web with an evaluation of the current state of
affairs and where its founder thinks the Web is going.

Website Design and Building

Instant Html Web Pages by Wayne Ause - This manual teaches


you how to write Web pages. It comes with free software, and the all
the source codes for Web design on a companion CD. Customize
your own Web pages with twenty different examples of design,
creation, and programming.

The Non-Designer’s Web Book: An Easy Guide to Creating,


Designing, and Posting Your Own Web Site

Website Promotion

101 Ways to Promote Your Web Site by Susan Sweeny - This


guide to understanding and using the Internet to market products
and services presents tools and ideas for increasing traffic to your
Website. Readers report increased traffic and hits after
implementing the ideas presented in this book. Included is a handy
“toolkit” full of industry secrets that contribute to building an Internet
marketing plan.
Dan Janal’s Guide to Marketing on the Internet: Getting People
to Visit, Buy, and Become Customers for Life by Daniel S.
Janal - A widely regarded expert on online marketing and co-
cofounder of AOL (American Online), Janal demonstrates in clear,
non-technical language, how to build an online marketing plan to
boost your sales, with strategies, techniques, and guidelines. Six
powerful sections include: Online Marketing, Online Selling,
Promoting Your Website, Creating Customers for Life, Online
Marketing Tools, and Online Media Relations.

Essential Business Tactics of the Net by Larry Chase, founder of


the first online ad agency, and a recognized International marketing
expert. Chase covers how to use the Internet to make the internal
workings of your company more efficient and cost effective, and how
to implement effective online marketing, including prospecting
business leads, developing new audiences for your product and
services, and implementing direct sales and PR strategies.

Marketing on the Internet (4th Edition) by Jan Zimmerman, Jerry


Yang - Previous editions are considered the definitive book on the
subject. Worksheets help you define your planning and promotion.
The book includes a password to a companion website for updates
and new information.

Net Success: 24 Leaders in Web Commerce Show You How To


Put the Web to Work for Your Business by Christina Ford
Haylock, Len Muscarella, Steve Case - This is a comprehensive
handbook on e-commerce, what works and what does not, by some
of the pioneers of the Internet. The book includes new ideas on
online advertising and direct marketing. According to one of the
authors, “this book was written for business executives in ‘traditional’
companies who are trying to develop and implement effective
Internet strategies.”

Nothing But ‘Net: How I Generated $750,000 in Internet


Revenues With Virtually No Advertising Costs by Michael W.
Campbell - Written by a veteran of the Internet since 1993, this
book describes the step-by-step methods to promote virtually any
product or service on the Internet without having to pay advertising
costs including: how to achieve the best placement on search
engines, linking and banners, newsgroups, and excellent material
on creating a “buying environment” on your Website.1-800-280-
9807 Ext. 1306 or http://activemarketplace.com

Recommended Websites

Register Your Website

www.networksolutions.com - Network Solutions is the official


government sanctioned domain registration company. Find a
number of useful tools and resources on their homepage to assist
you in registering, hosting, and promoting your online business.
www.register.com - Register.com is the largest independent
domain registrar on the Internet. They have registered more than 1
million names. You can host your site with their partner Concentric
Network, or find other web hosting options of your own.

Design and Build Your Website

www.hooked.net/ - This site offers a tutorial on Creating a


Successful Website, and will show you how to do so, from deciding
on your site’s content, to creating the HTML documents, to finding a
home for your site on the Internet.
www.htmlclinic.com - Open and available online all the time, The
HTML Clinic “features step-by-step, easy to understand HTML
tutorials, designed to guide you through the complete process of
building a web page. Free online tools include: Mega Tag Creator to
set up your site for search engines, Pre-Made Frame Sets in the
most popular layouts to download and customize, Color Charts for
you to get the perfect color combination. Color-coded tutorials are
easy to follow.
www.ncsa.uiuc.edu/General/Internet/WWW/

index.html - The NCSA’s Beginner’s Guide to HTML. You can


download and print this manual (in three sections is best) for your
own use. This is a thorough, but introductory manual for learning
HTML. Use with other information located here.

www.pages4free.8m.com - Build a Website using the tools


provided on this site. The Quick Site Builder is for the beginner or
intermediate web designer using pre-designed templates. No
experience is needed. Transfer an existing website to FreeServers
using the Site Copier. Use the Pages4Free HMTL editor to design
your own site. (HTML is the basic language used in programming
and is a standard for Web design. It stands for Hyper Text Markup
Language, and is not difficult to learn. It is like a series of
commands for different uses.)

www.pageresource.com - “The HTLM Pit Stop.” Follow these


excellent tutorials step by step to learn HTML, Java Script, DHTML,
and CGI/Perl. Become a pro in no time. Additional articles provide
information on Website design issues. Also available are dozens of
links to other web designing resources. This is a very useful
website.
www.vjungle.com - VJungles’s slogan is “Dot Com Made Easy.”
Build a website, host it, set up email, manage your schedule, and
much more is available at vJungle. Take the Tour for an overview of
the activities vJungle can provide your small business.

www.webclipart.com - Web Clipart offers tutorials on Photoshop,


an industry standard but highly complicated program, articles, tips
and tricks to making web images, and free clipart. There are also
recommendations for additional software and books.

www.workz.com – Workz is a website dedicated to helping small


businesses grow and prosper online with tips and tools to build and
grow your web site. Workz is one resource for “marketing and
managing a website, and maximizing e-commerce opportunities.
Our network of sites provides the how-to checklists utilities,
resources, references, and tools needed to build, manage, promote,
and maintain a profitable business.”

Host Your Website

www.addr.com - There is no setup fee for this service, and they


offer possibly the lowest monthly virtual hosting plan. Choose from
three low cost plans with lots of features. Technical support is
reputed to be excellent. They can build a website for you or provide
a free online web page design tool.

www.bizland.com - “Bizland is a provider of FREE products and


services to the small business community.” Products and services
include: free web hosting (35MB storage), free domain name
registration assistance, free email manager, free business
promotional tools, free redundant T3 lines, and more. “Bizland’s
goal is to help the small business owner get online, promote and sell
products, and utilize the power of the Internet to help your business
succees.”

www.thedirectory.org - The Directory lists over 10,000 Web


Hosting Companies. Find a web hosting company by your
specifications or your zip code. Each month they post the 25 Top
Web Hosting Companies for the month.

www.gethosted.com - Get Hosted is “a comprehensive list of web


host providers.” Check this site before you sign up with any
program.

www.hostcompare.com - Recommended by PC Magazine and


offering “the largest host comparison resource center,” search more
than 2,000 host companies including companies offering
promotional incentives, comparison charts, automatic search tools,
and links to other hosting comparison guides.

www.hosthelp.com - “Host Help is here to offer you advice and


education before you start host shopping.” This site offers more
than a dozen valuable and informative articles to learn about web
hosting. Highly recommended.

www.netnation.com - Net Nation Communications offers a wide


variety of services including website and web store hosting, web
server co-location and domain registration. Like many other web
hosting companies, they offer complete support for Microsoft’s
FrontPage 2000 at no additional cost.
www.webhosting.com - Considered one of the finest, if not the
best, web hosting site on the Internet.

Promote Your Website

www.addme.com - “The most popular website promotion and


submission engine on the planet.” Add Me is a FREE service that
submits your Website to 30 of the most popular search engines and
directories. Add Me! Newsletter provides free tips and ideas to
promote both your website and your business, and has over ¼
million subscribers.

www.bcentral.com - Microsoft’s online services for small


businesses offers web services to grow your business, including
getting started, promoting, and managing. For $19.95 a month, grow
your business with their three-step program.

www.searchenginewatch.com - Important! Read their Search


Engine Submission Tips, formerly called A Webmaster’s Guide to
Search Engines. This thorough series of articles covers the
important topics of Search Engine submission, improving your
placement, how to submit a URL, using meta tags, and more. Even
if you don’t create your own website, you will want to know this
information for maximum Search Engine placement. Learn which
Search Engines are the hottest. Subscribe to their newsletter.

www.promotionworld.com - This website lists 1600 web hosting


plans by price and features. They offer a FREE monthly newsletter
that includes interviews with some of the top names in Web
promotion, and “all the FREE information on promoting your website
you will ever need with hundreds of tutorials, articles, interviews,
resources, and more.
www.smartage.com - Smart Age boasts over 1 million members,
the largest business community online. The Knowledge Center
provides articles and tools for online success, including developing a
website, enhancing one, promoting your business, and selling
online.

www.virtualpromote.com - Virtual Promote offers several pages


of tools, information, books, and software that you can reference to
link and further develop your Website. Their e-Zine, the Gazette, is
“the fastest growing promotion and marketing newsletter on the
Web.” Get the latest news on site promotion and e-commerce every
week.

www.webknowhow.net - Web Know How offers nearly 1500 links


to valuable resources involved in website design and building,
hosting, and promotion. Featured articles deliver other useful
information including a Site Optimization Tutorial which will help you
find “the best methods for optimizing your graphics and HTML code
for better website performance.” The site also contains articles, tips,
and tutorials on web Design with tutorials, tips, and icons, and
graphics. You will find lots of information here.

A Brief History of the Internet

The Internet has its roots in the Cold War military frenzy. The
battleground of the Cold War was the Arms Race. With no real
battles to fight, the top American military brass, with the assistance
of the CIA, configured a number of possible battle scenarios of their
own.

One of their fears was that the Soviets might obtain first strike
capability, and obliterate major American cites and military bases.
The theory of first strike capability held that the country that
launched the first nuclear missiles would have a major advantage in
derailing the capabilities of the other to fight back. Given this
potential scenario, the Soviets could destroy most major U.S.
installations during a first strike. The military wanted a way for the
remaining American Military Command to communicate with itself
should this situation ever develop.

The precursor to the Internet was created as a solution to this highly


delicate issue of national security. This small network project,
developed in the 1960’s, was called ARPANET (Advanced
Research Projects Agency Network).

ARPANET was purposely designed with no centralized “hub” that


would be vulnerable to attack. In fact, the system was quite
decentralized. Each computer was able to send data to the others
through several separate routes. Thus, despite the potential
destruction of more than one computer in the system, computers at
the remaining installations would still have a means of
communicating with each other.

The military’s vision of ARPANET was that it would be a highly


protected and secret system. Ironically, the Internet, which evolved
from it, has no ability or authority to regulate itself, and is highly
vulnerable to very real threats by hackers and malingering
troublemakers. Periodically, damaging “viruses,” or massive
amounts of irrelevant data, threaten the security and safety of files
of information for businesses and individuals alike. The real irony,
however, is that the long term legacy of the Cold War is a free,
worldwide communication network for information, commerce, and
industry.

In the 1960’s, the Internet, as we know it today, was a technological


impossibility. Most computers were the size of buildings themselves.
The smaller ones were housed inside enormous rooms, primarily on
University campuses. Universal and public access awaited a
monumental development.
In 1970, Steve Wozniak created the first personal computer, the
Apple I. Wozniak produced the popular Apple II soon after the Apple
I in the garage of his friend and partner, Steve Jobs, the past and
current CEO of Apple Computer.

According to Wozniak, the Japanese dropped the price on a new,


smaller chip, the memory component of the computer. These new
chips were the necessary technological breakthrough that made
possible the development of the personal computer. These small
desktop computers had the technological capacity to hook into the
emerging Internet. However, most of the early uses and commercial
software for the personal computer involved games, business
applications and spreadsheets, word processing, and printing.

In 1980, Dr. Tim Berners-Lee, an Oxford-trained computer


consultant pondered a simple thought as he was assembling some
research materials: “Suppose all the information stored on
computers everywhere was linked?” Berners-Lee’s thoughts were
similar, but more grandiose, to the plans of the American Military
two decades before. Dr. Berners-Lee had both the training and the
talent to build several systems that turned his seemingly random
thought into reality.
First, Dr. Berners-Lee developed a program that allowed him to
cross-reference his research papers using a single highlighted word,
known as a hyperlink. At the time he was working for CERN, the
European Center for Nuclear Research. Dr. Berners-Lee and
several associates decided the logical extension of this program
would be to hyperlink a series of unrelated documents. The year
was 1991, and the result was the first website on what was to
become the World Wide Web.

Dr. Berners-Lee went on to develop standard computer addresses,


known as universal resource locators, or URLs. He also created a
hypertext transfer protocol, called HTTP, and the hypertext markup
language, HTML. Finally, he created the first browser to link
unrelated computers. Thanks to Berners-Lee’s egalitarian
personality and humble genius, the World Wide Web is neither
exclusive nor is it a platform for his personal wealth or self-
aggrandizement. The exquisite beauty of the Internet is that it is
open and available for everyone to use and enjoy.

The World Wide Web is not the Internet. The Internet is a physical
network of interconnected computers. The World Wide Web is the
digitalized information that can be accessed by the physical
network. To access the World Wide Web, as you know, you must
link to the Internet using one of several browser connections. Your
server is the computer that connects you to the Internet, and is not
your browser, in most cases. Web browsers read HTML and format
web pages on the computer screens.

In the United States in the 1980’s the Internet evolved when the
National Science Foundation built a new, faster backbone network.
Primarily this new backbone was built to connect colleges,
universities, and research institutions using five new
supercomputing centers throughout the U.S. By 1995, parts of the
National Science Foundation were either sold or reorganized.
Today’s Internet is a collection of networks primarily operated by
major phone companies.

In the 1980’s AOL joined Compuserve as an Internet service


provider, or ISP. Universal and unlimited access was still several
years away. Users had to pay an hourly rate or were limited to so
many hours per month of usage. A mere ten years ago, in the early
1990’s, the main use for the World Wide Web and the Internet was
transferring files and emailing, accessing remote computers, and
chat rooms.

In 1993, Mosaic, the Internet’s first Web-browsing graphics program,


was introduced. Mosaic introduced today’s widely used “point-and-
click” Internet navigation, as well as color pictures and video, and
dramatically changed the Internet. Prior to Mosaic, the Internet was
a system of interlocking computers that transmitted black and white
text files. Though useful for government and universities for
transferring and sharing information and research, the general
public had little interest or application for the Internet.

The technological innovations of color, movement, and later sound,


created an explosion of commercial and entertainment
applications. The Internet blossomed, and the universality of Dr.
Berners-Lee applications became a reality. The World Wide Web
was born. Browsers like Netscape and Microsoft Explorer
incorporated the new technology, giving their members access to
new technology and imagery.

The most recent craze to hit the Internet is the 1999-2000 rush of
IPO’s or initial public offerings. New Internet companies with no
history, inventory, product, or valuation, hit the exchanges, primarily
NASDAQ, with prices skyrocketing in hours or days. Stocks of
known Internet companies, like Amazon and AOL grow each year
by three, four, five, even six hundred per cent. How long these
stocks will continue to make these moves is pure speculation.

One thing that is certain, there is always something new on the


World Wide Web. The World Wide Web is still so unformed and
unmolded, that innovative and distinctly different marketing,
advertising, and selling techniques emerge every year.

Much more is involved than posting a website. Talk to anyone who


makes a living selling on the Internet and you will find universal
agreement that successful Internet marketing requires a plan of
action, and consistent effort. Projections are that billions will be
made yearly. To cash in on your share requires some careful study
and planning.

Only a few years ago, less than 1,000 businesses were posted on
the World Wide Web. Today, there are millions. Web users and
surfers, customers and competitors, access the World Wide Web in
continuously growing numbers. Soon, the Web will be available to
consumers through cable TV.

How you market your product or service is your choice. Marketing is


a broad field. Many of the traditional techniques described in this
manual are excellent for your business. The World Wide Web,
accessible through the Internet, is a whole new technology for
marketing.
You do not have to understand the Internet or the World Wide Web
any more than you understand why the light goes on when you lift
the switch. You use light regardless of whether you can explain how
it gets there. The Internet has so many resources available to you.
Get on a computer and go surfing to some of The Recommended
Sites. Buy a couple of books. Seek out someone who has some
technical expertise.

The following sub-sections offer brief descriptions of the steps


necessary for creating an effective domicile for your business on the
World Wide Web. Your work here is serious business. Learn some
new words, new technologies, and new applications. Meet some
great people. Enjoy the challenges, have fun, and good luck!

Why You Need A Website

If you haven’t heard this quote from Bill Gates, the richest man in
the world, a man who has made billions in large part because of the
Internet, please heed his warning: “In the year 2000 and beyond,
there will be two kinds of businesses, those that are on the Internet,
and those that are out of business.”

It took almost 150 years for the manufacturing sector of the U.S.
economy to reach $350 million in annual sales. E-Commerce
reached that figure in approximately 36 months. Some estimate that
e-commerce revenues will reach $1 trillion by 2002. You probably
agree that as a business owner it makes sense to stake a claim to a
share of that incomprehensible figure.

Below are the steps necessary for installing or building your website
on the World Wide Web, and getting your site installed or “hosted.”
Included is some general information on marketing and promoting
websites that has evolved in the last few years. For an in-depth look
at six important Internet marketing techiniques, see the companion
booklet, Marketing Your Product on the World Wide Web: A Desk
Reference.

There is a place for your product or service on the Internet, but you
have to set the wheels in motion. Whether you join one or more
shopping malls or create a unique and singular website, someone
has to set up shop. No matter how much you pay for a website,
unless you treat it like a store, you are not likely to get many
customers. You will get “hits,” from people who happen by
purposefully or accidentally. Unless you create incentive and
excitement for them, they won’t stay long, and they will disappear as
easily as they appeared, probably never to come back.

Having a successful Website takes work. A strong or substantial


web presence minimally requires several focused hours daily
making contacts and links to other websites, developing your
promotional efforts, and staying current with options and
developments. Internet marketing involves the same ingredients for
success as business or life: a lot of hard work, money or the ability
to get it, friends and contacts, and a pinch or more of good old luck.

An online presence means you have the potential of reaching


millions and millions of customers worldwide for a nominal cost.
Estimates are that currently 50-100 million computers are linked
together to form Internet. Thousands of new users join every day.
Three or more people access many of these computers. What you
may not know is that surveys indicate an overwhelming majority of
these people intend to purchase products online.

An online store is open all the time, 24/7, (24 hours a day, 7 days a
week) for the shopping convenience of customers. Shoppers around
the world purchase products while you sleep. You don’t need staff to
manage the transactions. Every day you can make sales and
expand your business with new and potential customers. You
advertise, sell, and compete side by side with the biggest players in
your industry. The number of online stores is in the hundreds of
thousands, and the number of malls in the thousands.

Amazingly, e-commerce is in its infancy. A mere five years ago e-


commerce was virtually unknown. Never before, in all of history,
have there been marketing opportunities of such magnitude. For the
first time there is a truly level playing field. The wealthiest
companies in the world have Internet sites, and so can you. You
have the same opportunities to advertise and promote your site as
they do. The avenue to the customer is the same for you, as it is for
any company in the world.

If you aren’t on the Internet, make plans to develop your Web


presence in the near future. Whether you have never attempted a
Website or you are a disenchanted veteran, remember your Website
is no more than an empty, vacant building until you fill it with
excitement. Make it interesting, fun, and memorable. Draw people to
it with a multitude of promotional efforts. When you market your
products or service on the Internet, constantly advertise your
website address, or URL. Make additions and changes to your
Website to keep it interesting. Like a retail store, change the look at
least as often as season to season.
A Website greatly enhances your advertising efforts in other media.
Your URL is simpler and easier to remember than a phone number,
and you do not have to answer calls or return voicemail messages.
Broadcast your URL everywhere. Whether a potential customer
catches it on a billboard, hears it on the radio, sees it in the
newspaper, gets it on a postcard or in a letter from you, encourage
potential customers to visit your website.

Your Website offers detailed, organized, and interesting information


about your product or service. You have more space and
opportunity to present your information than any media. You can
even present a video with graphics and sound with a presentation
as interesting as an infomercial.

Customers can either order or contact you through email. What


other media offers an opportunity to communicate at no additional
cost? Offer visitors an opportunity to enter a free drawing if they
check where they first saw your advertisement. You will gain
valuable, comparative information on your other paid media
advertising, and you will achieve a very desirable objective of
capturing the email address of your visitors. Contacting a one-time
visitor creates a lead that has the potential of becoming a client or
customer, depending on your efforts to sustain their interest.

If you do not have a Website at this time, you have several options.
You can develop it yourself with the assistance of friends or you can
contact a Webmaster to build it for you. There are books that will
guide you step-by-step through the process if you want to develop
your site yourself. There is software that guides you step-by-step
through the process, as well. There are a number of Recommended
Websites that offer FREE tutorials and accompanying articles.
Finally, there Internet service companies will design and build a
website for you, register your URL, place you with search engines,
and help you develop advertising.

If you decide to develop your website yourself, you probably know


someone, or can find someone through the recommendations of
friends or associates, who has the expertise to take you through the
steps. Unless the Webmaster is a close friend or associate, be sure
to ask for a resume or references. The proper design of your
website is like any other business service you engage. You want to
feel comfortable that the person doing the job can handle the task.

Get a Domain Name and Design Your Site

As soon as you decide to create a Website, choose a domain name


that is your address or URL. Create a name that is short, simple,
and as closely related to your product as possible. You absolutely
want the option and flexibility of being able to use this address in
more traditional forms of advertising. The shorter it is, the easier it
will be to remember your address, and the better it will work for you.
As you can well imagine, many popular domain names are already
taken. Add numbers or letters to a common and frequently used
name to create a unique address.

One of your first considerations is how much you want to spend on


this project. Get an initial idea of the design and implementation
costs from the website development company you have or the
Webmaster you have chosen. If staff will be involved in the design
phase, you certainly want to re-delegate responsibilities and set
aside a reasonable period of time for completing the project.

Budget the cost of hosting your website and/or a monthly site fee for
online malls that require a payment. Once your website is designed
and constructed, your annual maintenance costs are fixed by the
hosting fee (if any), the mall fee (if any), and the annual domain
registration. In most instances, registering a domain name costs $70
for the first two years and $35 every year after that.

Your major expense for your online presence is promoting your


website, which can vary from as little as a few hundred dollars a
year to thousands, depending on whether you plan to advertise in
traditional media sources like TV, radio, newspapers, outdoor
advertising, and others.

Once you have a budget that is acceptable, begin developing the


website. Meet with the Webmaster or web development company
you selected to discuss your ideas. If you are working with an online
company, ask for daily updates to check how the project is
progressing. If you plan to build the website yourself or with staff,
organize your resources, outline your ideas, and assign tasks.

There are two interrelated components to consider as you develop


your website: the content of the site, and the manner or
presentation of the information. If you are relatively new to the
Internet, record your ideas, and plan to visit as many sites as you
can. Make notes of color schemes and formats that are appealing to
you. Anyone can master the techniques of building a Website.
Locate the resources you want to use, and begin!

Most sagacious website designers highly recommend muted


background designs and colors, especially on pages that contain
important text and information. Visitors do not enjoy having to
struggle to decipher information from a website. Wild colors, moving
images, and busy designs have their place. However, a visitor
looking for information does not want to be bombarded, so keep the
format simple and make the information exciting.
Keep text short. When both sentences and paragraphs are short,
people can skim and read with ease. Consider a column format with
plain, white space on part of the page. Avoid multiple, overlapping
columns packed onto one page. If you cover too much vertical
space, the reader must use a horizontal scroll bar just to read the
main text. Large margins and white space are inviting and relaxing.
Busy sites have the same affect as busy backgrounds. They are
tiring. Make the experience of being on your website enjoyable, not
difficult.

Be sure to include your email address and URL address at the


bottom of every page so that a potential customer can contact you
easily. People do not bookmark every website that interests them,
but they will print a page that interests them. Having your URL and
email address on each page of your site insures that your visitor can
find you again. Also make certain that your visitors can return to
your homepage easily from any page on your site. Ease of
navigation is an important feature for retaining visitors and bringing
them back again.

E-mail correspondence is a way for customers and prospects to


connect with you. Encourage people to email you with any
questions, thoughts, or suggestions. Check your email at least once
every day.

Promptly reply to all messages. Ask your Web host to isolate a box
just for this purpose so you can quickly and easily check your
customer and potential customer messages. Send orders to a
different box, but make sure to respond promptly to those also.
Keep an index of all customers who order through email. You will
save on long distance phone calls and begin a valuable customer
contact list at the same time.

The Internet is a terrific place for you to post your product catalog
and price list. You can make changes or additions, and add specials
easily. Depending on the products, offer a monthly special that will
bring your customers back to your Website at least once a month.
Changing your Website brings people back to see what is new and
different. The dynamics of novelty make the Website fun for you,
your staff, customers, and prospects. Offer contests, drawings, or
incentives. Be as creative and exciting as you can be, and
customers will return.

Find a Host for Your Website

Designing and building a Website, whether you do it yourself or pay


someone to do it for you, is the first step. Register your name as
soon as you make the decision to create a site. Even if it takes 6
months or more to build the site of your dreams, secure the name
you want so you own it exclusively and no one else can use it.

As you know, the Internet is composed of millions of linked


computers. To post a Website on the Internet, you need to find a
host for your site. In almost every case, you rent a server, a
computer that is owned by a company that links directly to the
Internet. Your Internet service provider (ISP) is a server. Check with
them for the web hosting services they offer their members.

There are over 10,000 web hosting companies on the Internet,


many are local ISPs. A number of directories, web hosting
comparison sites, web hosting information sites, and web hosting
companies are listed in the Recommended Websites for this
chapter.

Take some time to study the options available and carefully select a
program that not only suits your company’s needs now, but also
allows you to grow with the service. You can change companies, of
course, just like you can move from place to place. Much like a
physical move of your personal possessions, changing the home of
your Website can be exhausting and exasperating.

Web hosting services vary tremendously. There are a number of


companies that will host your Website for FREE. If the server “goes
down” your potential customers and visitors cannot access your
website. Some servers deny access to other servers for various
reasons, which would also stop a visitor from getting through to your
website. Carefully investigate any FREE service before you sign
with their program. Compare the services you get for no cost to
services that you get for a monthly fee. It is difficult to complain
about a FREE service. but the saying goes, “You get what you pay
for.”

Regardless of the program you choose, ask the web hosting


company for the email addresses of recent and long time
customers. Email these people and ask about the helpfulness of
tech support, the amount of down time they experience, and any
other issues that concern you.

Most web hosting companies will register your name for you, but
you will still owe the registration fees. Since finding the right
program of services and the right host may take time, register your
name yourself if you have one you really want to use.

With thousands of Web hosting companies there are hundreds of


packages from which to choose. FREE hosting exists, or you can
pay up to thousands of dollars a month for web hosting services you
can buy.
With FREE Sub-Domain Hosting your site is hosted under another
site’s domain name, and your World Wide Web address will look
something like this: (http)://www.theirname.com/yourname. Almost
universally you must agree to display the domain host’s
advertisements and their sponsors, usually as banner ads on your
site. This type of hosting is not very useful for a serious business
enterprise. The URL is too unrelated to your product and too long.

There are two types of Virtual Hosting, and both work for a small
businesses. There is a FREE version and you can use your own
hosted domain name, such as (http):www.yourname.com.
However, you share space on a server with a lot of other sites, and
in exchange for the “free” space you agree to advertise the web host
on your site.

There are numerous Paid Virtual Hosting services that are


reasonably priced and appropriate for small business needs. Most
of these programs begin at about $20 a month. Also known as
Shared Server Web Hosting, with this type of web hosting you “rent”
a portion of a server with a number of other sites, much like you
would rent an apartment in an apartment complex. You can use
your own domain name exclusively. Different programs offer
varying amounts of Meg storage, Gigabyte/traffic month (a gigabyte,
or GB translates into 1 million hits), POP3 email accounts,
autoresponders, free technical support, and many other features.

Some of the most important features you want to have are fast
connections to the server (no one likes to wait for a slow site to
load), more than adequate space so you can expand, and plenty of
data transfer capability.

Depending on the size of your company now, how big you anticipate
becoming in the next few years, and how large a role you plan for
the Internet in your marketing plan, you may want to look at an
entirely different level of web hosting called the Dedicated Server
Hosting. With these programs, you rent an entire server for your use
alone.

Having your own server is advantageous. You control the entire web
space. You can take more visitors at one time, and you can expand
your site more easily. Prices with most web hosting companies
begin around $150 a month. For the advantages and luxury of
having your own server, the price may seem very attractive. Be
sure to compare several programs before you commit to one.

You can own your own server, rather than rent space on one. You
own the actual hardware, but store it at the Web Host’s facility,
where they cover the physical maintenance. You control all aspects
of the arrangement and generally will have to set up your own
security. This option is called Co-location. It is the most advanced of
the web hosting programs and requires quite a bit of technical
knowledge and expertise. Most universities have their own servers.
As a novice, it is highly unlikely you would start with this type of
program.

The saying, “Buyer Beware!” truly applies to your choice of a web


hosting company. You have to sign a contract (lease) for a specified
period of time, probably a year. Not only read, but also understand
the fine and large print before you sign.

As best as possible anticipate your growth so that you have room for
expansion, or provisions available to you. If you have any doubts
about the service, keep searching for a better situation. Ask friends
and associates for their experiences. Ask the web hosting company
for references of customers with the program you are considering.
Basically, do your homework.

How well your site operates and how successful and popular it
becomes depends on the service you get from your web host.
Determine whether the speed of connection is great, satisfactory, or
below normal standards.

Ask about the hardware facilitating their speed of connection.


Unless they have fiber optic T3 lines (also known as DS-3) with
redundant backbone connections directly to the Internet, you are
very likely to experience slow or refused connections. Not everyone
is state of the art as far as connectivity, but you do not have to
accept anything but the best for your website.

As an example, you should be able to easily maintain and make


changes to your Website without having to wait for tech support to
assist you. Even so, tech support should be available 24 hours a
day, because when you have a problem, you need to fix it quickly.
Most highly reputable servers guarantee 99.9% uptime. A standard
has been established and that standard is a guarantee of 99.9%
uptime. Be sure to ask what guarantees your company provides.

Another factor to consider is the level of bandwidth, or the number


hits your site can accept. Unlimited bandwidth is obviously most
desirable, but many low monthly plans will probably limit you.
Make sure they measure their bandwidth in Gigabytes, not
megabytes. One Gigabyte accepts 1 million hits. If you can
negotiate 3 or 4 GB you will have some room to grow.
With most purchases on the Internet and elsewhere today, a money-
back guarantee usually provides the consumer will have an
opportunity to determine whether the product or service is meeting
their needs. If your web hosting company of choice does not provide
a 30-day money-back guarantee and option to void the contract,
seriously consider looking into other companies. There are many
variables to your web hosting service plan, and you have the right to
expect a trial period to see if you got what you thought you bought.
Make sure to ask, and negotiate a trial period for yourself if this is
not their standard policy.

Promote, Promote, Promote Your Website

Create your website and your Web Marketing Plan simultaneously.


Those who expend all their time and money creating a fantastic site
will be sadly surprised that nothing happens once it is hosted and
posted. As important as design and hosting are, promoting is not
only essential it is mandatory if you expect to create a business from
your impressive artistic portal.

An ocean of books, ideas, tips, and information is available on how


to successfully promote your website and business on the Internet.
Most of these sources are free and indexed on the Internet itself.
Dozens and dozens of Websites are devoted exclusively to
providing tips and information for creating successful e-commerce.
Many of these sites offer regular electronic newsletters, or e-Zines
that offer up-to-date tips and information. You could spend several
years before you exhausted the research,impressions, and
experiences of those who have marketed on the Internet and lived
to tell about it.

Web promotion is one of those subjects on the World Wide Web that
is so extensive and enormous that a complete review and coverage
is virtually impossible.

Designing, building, and finding a host for your website is like


building a new business home in the middle of the desert. Imagine a
gorgeous, state of the art showroom our in the middle of nowhere.
You expect hordes to come rushing to your facility because it is so
spectacular. Wide open sky, still, fresh air, the buzz of nature
everywhere, who wouldn’t come? They would, if they only knew you
were there!

The Internet is a void of sheer empty space unless you provide


signs and ads and shout compelling reasons for people to jump to
your URL. As important as your looks and the speed of your
connectivity are, you must actively market your presence to create
the business you desire and anticipate.

2000 is a tremendous transitional year for new merchants offering


both products and services on the World Wide Web. If you are new,
or if you have been online without experiencing much success, now
is the time to develop your Internet Marketing Plan based on the
experiences of those who have forged the trail for the first five years.
Programs and systems have been developed, designed, and
refined. You are the beneficiary. The time is now. The Internet is no
longer in its infancy. Exponential growth is imminent. Right now,
though you may be a novice, you are at the head of the pack.

Do not even contemplate building a website unless you find the time
to plan how to market your product and services on the World Wide
Web.

Are you ready? Do not let costs intimidate you. No one says you
have to hire a Webmaster to build a website. Get your domain
name, and build a website you can afford. Build it yourself, if
necessary, using one of the software products that are available.
Build it yourself using informational tutorials that are FREE on the
Internet. Just remember, most of your time and money needs to be
focused on marketing your website.

Getting customers to your website is a challenge but not an


insurmountable one. Your objective is to get lots of “hits” or “traffic”
through your Internet portal. Some qualified buyers and interested
visitors will visit you from seeing your address in other media. Some
visitors will stop by your site because they saw your URL on
envelopes, stationery, brochures, flyers, or your other promotional
literature.

You can even create a bumper sticker that is inexpensive, and


which provides a colorful and simple advertisement. Print your
“hook” or short USP, and make your URL standout in large letters.
Send them to your most satisfied customers.

The question remains: how to attract to your website potential


buyers from the close to 350 million people who are on the Internet
for their own reasons?

Think of Internet users as Netizens or foreigners (which many are)


from out of town. Should a Netizen drop in to browse a real store or
retail outlet, you have one opportunity to interest them in your
products. Once out the door, chances are they are gone forever.
Netizens have their own reasons for being on the Internet. Some
are there to shop, but many are not. When a visitor enters your
website, your goal is to capture enough relevant personal
information from to create a qualified lead. With contact information,
you can turn a casual, accidental, or purposeful visitor into a
customer. Without this effort, you will have “hits,” but like the
Netizens on the mall, they will be gone forever. The number of “hits”
to your site is only one indication of how successful you are. Of
greater importance to the long term success of your business is the
percentage of sales you can generate from those “hits.”

Offer incentives, gifts, coupons, or contests to entice these Netizens


to register with you. If you provide interesting information, links to
other sites, and relevant articles in a library, visitors may choose to
bookmark your site for a future return visit. Regardless of how much
information your visitors absorb about your product, you want to be
able to track everyone so you can cultivate interest in your products
or service.

Unfortunately, the self-promoting website does not exist at this stage


of the development of the World Wide Web. No device, tool,
technique, or mechanism facilitates such a dream site. You have to
work to get people to visit your site. Not unlike other marketing
techniques mentioned in this manual, you have to provide enough
information and incentive for them to become customers.

Imagine a physical mall with hundreds of thousands of stores. As a


visitor, even if you knew exactly what you were looking for, finding
it would still be an enormous task. You are likely to feel
overwhelmed by the thousands and thousands of choices.

In the few years that businesses have marketed products and


services on the World Wide Web, a number of different promotional
techniques have emerged for attracting customers to websites. New
programs and hybrids emerge every year. For a review of some of
the more accepted techniques, along with dozens of Recommended
Websites, please consult the companion booklet called Marketing
Your Product on the World Wide Web: A Desk Reference.

INTRODUCTION ABCDE F GH I J KL M N O P Q R S TUV W XY Z LINKS


a
mm xSITES

X
Recommended Books

The public schools in America play an unusual trick on young


and innocent minds. At age 13 or 14, they introduce algebra, a
wholly new mathematical model with a basic tenet that there is
something called the “unknown,” or “x”. This concept requires a
re-evaluation of the 13 and 14-year-old’s worldview. Every
young person of this age disputes the possibility that there is any
such thing as the unknown. They know everything, after all.

Yet the public schools persist in introducing this bizarre and


esoteric concept. In so doing, they break apart the innocent
bounds of childhood. Children are taught to use the basic
applications of what was mathematics to solve problems relating
to this “x” factor. Some have more difficulty than
others accepting, understanding, and grasping the mysteries
and properties of this truly alien concept.

Kids this age concede that what they do not know is certainly
known by others. An irony of life is that the older you get, the
more there is to know, and the less you feel you know and
understand. Blame it on Algebra I. Life seems to abound with
the unknown.

Such is the case with the Internet. No one person can list every
website or URL related to business. There are excellent
compilations available, as well as search engines and directories
that attempt to tackle these issues. Still, new websites appear
everyday, and old ones change, move or disappear.

There truly are X Sites to See when it comes to virtually any


topic on the Internet. The number of sites within any category, or
the total number of sites to see on the Internet, is an x factor
unsolvable by any algebraic equation. Certainly estimates are
possible applying certain known variables.

Below are dozens of additional websites that may be useful to


you. Many of these have hundreds to thousands of links to
business articles relating to topics in The Marketing Desk
Reference. For the most part, the Sites listed here do not appear
elsewhere in this book. Many are likely new to you. Be sure to
bookmark the ones you want to search in depth.

A general policy here and throughout The Marketing Desk


Reference is not to specify companies that provide commercial
services. Exceptions involve companies that provide necessary
services, such as fulfillment for DRTV short form commercials,
or, in the case of the World Wide Web, companies that perform
website services. To find information on companies such as
printers, advertising agencies, and other auxiliary marketing
services, use the search engines, or your Yellow Pages. Please
contact us with recommendations for websites that do not
appear in any of the chapters, or here Chapter X.

Enjoy discovering these additional Sites to See. They are in


listed in alphabetical order for easy reference. You will also find
a brief description of the subject matter of each Site highlighted
after the address.

http://adres.internet.com - Ad Resource: Internet


Advertising and Promotion Resources. Ad resource is “the
Buzz,” offering articles, commentary, columns, and insight on
Web advertising gathered from around the Web.

A part of the www.internet.com family of websites, Ad


resource provides timely information on current events that
affect the Web. News articles appear every week. Search the
database for articles on advertising, business, marketing, current
events, and software. Check out the Ad Resource Primer for a
good introduction to Web advertising and Web advertising
terminology.

http://angelfire.lycos.com - FREE homepages. You can get


your personal URL here with free online building tools. Besides
enabling you to get a free website and free building tools, this
website has special building guides, including how to promote
your site. They will help you get your site on the search engines
as well.
http://home.cnet.com - The Source for Computers and
Technology. “Our site gives you unbiased opinion and expert
review on business technology products and services.” Find
reviews on Hardware; Finance and Investing; Business
Enterprises with tech news, information systems, sales,
customer support and more; Internet Tools; Tech Trends; Web
Building including authoring, graphics, programming and
reviews; and Web Services including access, web hosting, and
web developers.

http://internet.com - The Internet Industry Portal.


This website hosts twelve channels, or other websites, and is
the official Internet Portal. The founders and originators of the
World Wide Web, CERN, gathered together worthy sites to form
this umbrella, known as www.internet.com . The channels
include Internet Technology, E-Commerce/Marketing, Web
Developer, Windows Internet Technology, Linux/Open Source,
Internet Resources, ISP Resources, Internet Lists, Download,
International, Internet News, and Internet Stocks and Venture
Capital.

http://smallbusiness.yahoo.com - Yahoo’s Small Business


Site is a search engine/directory with a wealth of information on
building a small business. Topics include: Starting a Small
Business, Finance, Sales and Marketing, E-Commerce, Office
Supplies, Printing, Technology, Communications, Government
Services, Legal, Human Resources, and International Business
and Trade. Yellow Page Listings include Direct Mail Houses,
Commercial Printers, and Graphic Designers. Also included here
are links to several spectacular sites, and featured articles.
Yahoo is an Internet Directory.

www.200sharewarelinks.com - Some of the Best


Shareware on the Internet. Find some great free software
here for business applications, and just for fun. New shareware
is added often, so check periodically to see what’s there. All the
applications are FREE.

www.aepublishing.com - “Bringing the American Dream


To The World.” A & E Publishing offers a Directory of over 30
Topics of FREE information and links, including Advertising,
Banner Advertising, Copy Writing Services, Business Services,
E-Magazine Advertising, Mail Order Tabloids, Free Resources,
Press Releases, Online Classifieds, Printing and Mailing, Free
Websites, and more. Free Websites is their “banner site.” Be
sure to view it, Advertising, and other Directory Topics of interest
to you.

www.all-biz.com - The Small Business Network.


All Biz provides a comprehensive suite of services as “an online
destination for content, applications, products and services.”
They use an integrated, multi-media approach to advertising that
includes the Internet, TV, print, radio, and other media so that
small business will have greater exposure to industries and
geographic markets of their choice. The information at All-Biz is
gathered from a variety of sources, including industry experts,
internal articles and publications. There are more than two
dozen “business zones,” including accounting and taxation,
advertising, banking, communications, computers/software, E-
Commerce, Entrepreneurs, Equipment Leasing, Human
Resources, I-University, Management, Legal, Manufacturing,
Marketing, Mergers/Acquisitions, Sales Management,
Telecommunications, and Travel.

www.askjeeves.com - “Have Question? Just type it in and


click Ask!” If you have never used Ask Jeeves as a place to
begin finding information on the Internet, give this Website a try!
Type in any question and the British butler, Jeeves, will search
the Web for you. You will get between two and six responses to
his interpretation of your question, approximately three to ten
Internet links to related Websites, and nine or ten search
matches from several Search Engines or Directories, such as
About.com, Alta Vista, Excite, and Webcrawler. The results for
each of the Directories and Search Engines are completely
different, so you get about 50 links to any question you ask.
Jeeves is a Directory, as well, with links to Money, Travel,
Health, Computers, Entertainment, Home and Family, and
Shopping.

www.beyond.com - The Place to Buy Software and More…


Beyond offers a huge selection of software in over a dozen
categories, including business, communications, developer
tools, games, graphics and multimedia, hobbies, the Internet,
Kids, References and Training, and Utilities. They offer
additional support information and a list of the current top ten
software products.

www.bizbuyer.com - Buy and Sell Business Products and


Services. A simple three-step process allows you to pick from
several quotes for goods or services that you need. Extensive
categories include, Internet Services, Office Equipment and
Supplies, Telecommunications, Business Consulting, Insurance,
Legal, (find an attorney), Real Estate Services, Travel and
Transportation, Computer Services, Sales, and Marketing
Creative Services.
www.bizoffice.com/library/library.html - The Small and
Home Based Business Library. This is a section of
www.bizoffice.com. There are thousands of business articles
you can easily access through file cabinets, much as if you were
at a library accessing information through card catalogs.

www.bizweb2000.com - Your Online Marketing Resource


Center. Jim Daniels of JDD Publishing offers tools and
information to help people “grow a full-time income from the
Web.” The site offers a domain name wizard, and design
services. You can get personal marketing help from Jim Daniels
and other successful webmasters. Jim provides FREE lessons
and Top 30 tips, books and software, and hosting. Over 35,000
subscribe to his BizWeb eGazette, Be sure to read and take a
close look at his book, Insider Internet Marketing, which
presents “every revealing market strategy, method, secret,
resource, tool and trick that I (as well as other prominent Internet
marketers) have employed to explode online profits, is now
available in one place.” On the website you can preview the
contents of this powerful and extremely helpful book.

www.clickit.com - Business to Business Services on the


Internet. This is the site for Access Business Online and Biz
Wiz. Their slogan is: “…making the world a smaller place by
connecting good business people.” Access Business Online is
“the single most comprehensive business-to-business service
designed to help you find customers, vendors, solutions, and
stimulate a flow of commerce on the Internet.” Biz Wiz is a
“Business to Business Intranet, a full service system connecting
300,000 registered and participating companies through a
common database and technology platform.”

www.elibrary.com -The Electric Library. Elibrary provides


answers to your questions with up to 30 search results for each
question. You can ask in natural language or “Boolean” which is
another way of asking the information from the computer.
Etracker searches the database for new articles on your favorite
subjects and delivers the headlines to your email address for
FREE. Elibrary Q&A provides online Q&A. You can get real
answers from real people by asking one of thousands of people
in the database, for Free!

www.entrepeneur.com – “You’ve got a Dream, Now Get it


Done.” Entrepreneur provides a “Starting a Business Tour,” and
a “Growing a Business Tour.” Their Business Channels include:
Staring a Business, Home Based Business, Money and Finance,
Sales and Marketing, Management, Technology, E-Commerce,
Inventions, Opportunities, and Lifestyles. They have an Expert
Center where you can ask real live people your toughest
questions. They offer Online Accounting Tools so you can be
your own CPA, and much more.

www.eweekly.com - The latest in online sales, marketing,


and eCommerce strategies to help you succeed online. This
FREE weekly newsletter offers much important information and
many free tips that can help your business online. Their
newsletter is the “World’s first complete e-Commerce Solution.”
As a member/subscriber you also receive discounts on many
business services. An example of a current article in their
newsletter is: “Getting Your Web Site Search Engine Ready.”
Archived past articles include: “How to Write An Effective Sales
Letter,” and “Positioning with a Unique Selling Proposition.” This
an important and useful newsletter to get each week.

www.freewell.com - Freewell offers dozens of FREE


information sources on the Web. You will find free books,
free CDs, free coupons, free entertainment, free games, free
hosting, free finance, free software, free magazines, free
marketing, free shopping, free sports, free sweepstakes, free
travel, and a FREE reports library, The Online Library of Free
Reports.

www.headlight.com - The leading source of online training


for small and mid-sized businesses. “Increase your skill and
your team’s skill by taking courses on the Internet with no
waiting for CDs or software to download. Courses on all aspects
of business: sales, management, finance, planning, and
personal development. You will also find business courses on
desktop operating systems, IT Pro, Unix, and Web
Development. Headlight offers free skills assessment to assist
you in finding the right course. Course costs vary. Generally, a
20-30 minute course costs $14.95, and 1 hour to 1 ½ course
costs $49.95.

www.homebusinessmag.com - “Delivering Daily


Supplements for the Marketing Soul.” Home Business
Magazine’s online edition offers new feature stories daily geared
to the growing number of home based business. Channels
include information and articles on: Business Start-up, Business
Management, Home Office, Sales and Marketing, Webmastery,
Technology, Network Marketing, and Money. Additional
resources include a Library of archived articles, Celebrity
Interviews, and more. Contact HBM if you are interested in
finding out more about their card deck.
www.hoovers.com - The Business Network and of over 11
million businesses. Hoovers has the largest listing of U.S.
business. They have expanded their expertise to topics of
business interest while maintaining the “quality, accuracy, and
reliability of their database.” Access a new program, called Lead
Finder to build your own targeted business database from their
11 million businesses.

www.insiderreports.com - Insider Reports is a Journal of


information offering, “the right advice at just the right time.”
Insider Reports offers daily articles on various subjects of
interests in their channels, which include: News, Consumer,
Money, Web Builder, Small Office, Business, and Classifieds.
Resources include Legal Forms, containing over 1,200 Business
Letters and Reports, and Archives. According to Business
Week Magazine, Insider Reports Web Building Program is “the
easiest way for a business to get a website.” Also, Business
Help includes Street-Smart Financing for Starting or Expanding
Your Business, Attracting the Perfect Investor, and Federal Help
for Your Business.

www.ideacafe.com - The Small Business Channel. “A fun


approach to serious business.” Idea Café has a number of
special sections. GenX Start-up caters to the needs of
Entrepreneurs in the Gen X generation with “info, advice, and
fun to feed your mind and your biz.” Idea Café’s Financing Your
Business offers useful information on Getting Ready to Get
Financing, preparing for a loan and much more as well as
offering sources of money, getting equity investors, creative
financing endeavors, and financing resources with online helpful
links and offline help and books. Other topic areas include: Biz
Communications Zone, Cyber Schmooz, Small Business
Hardware Review, Coffee Talk with Experts, and Idea Café’s Biz
Books Review. Idea Café’s Biz Web Guide has more than 100
categories of business related subjects with hundreds to
thousands of links. Two other sections are Work at Home and
Biz Horoscope. This is a fun site with a lot of very valuable
information worth discovering.

www.ideasiteforbusiness.com – Useful Ideas for Creative


Business People. Definitely bookmark this website for a
continuous source of magnificent ideas for your business. Each
issue has articles on the homepage (click on the light bulb to
reach the homepage). You can also access 405 FREE
Marketing Ideas here. Other articles are archived, and you can
scroll down the titles to find subjects of interest.

www.infojump.com - Information for the Masses. Infojump


has a search engine with over 5 million articles from more than
4,000 publications. Search by publication or Browse Publications
in over 50 categories, including Business and Economy, Finance
and Investment, Career and Employment, Computers, Internet,
Media, Newspapers, as well as Architecture, Automotive,
Fashion, Recreation and Fitness, Health and Medicine,
Government and Politics. Included in the publications list are
hundreds of e-Zines written and edited by Internet associates.

www.iwant.com - Want Something? Tell the World. At


Iwant you can post a Want, and people who can help will get it
to you. This is the world’s bulletin board. Wants include
collectibles, electronics, personal, real estate, travel, and
vehicles.

www.knowthis.com - The Internet’s Reference and


Resource Site for Marketing, Advertising, Research,
Selling, and E-Commerce & More. This website contains
“over a thousand carefully evaluated links to useful sites around
the Internet, each categorized and described. Begin with
Advertising and Promotion, Groups and Meetings, including
Conferences and Trade Shows, or Professional and Trade
Associations, Education, and General Research. There is an
extensive section on the Internet, Web and E-Commerce,
Publications, and Research. Though the approach is largely
academic, this is a highly useful site to bookmark and reference.

www.marketingsource.com - “Designed to assist


businesses with their traditional and Internet marketing
efforts.” Get answers to your questions in the Marketing Forum,
and browse the Articles Library. There are over 70 book
commentaries in the Book Reviews. Enter your company in the
Business Classified to network with over 2500 other
businesses. As a registered user you receive special discount
offers on marketing promotions, software, computer hardware,
and much more.

www.mep.nist.gov - Hands on Help for Manufacturers. If


you are one of the 385,000 small manufacturers in the U.S., you
contribute to more than one half of the country’s total value in
manufacturing. Facts indicate, however, that your productivity is
just half the rate of the large manufacturers. Check out MEP, the
Manufacturing Extension Partnership, a nationwide network of
not-for-profit Centers in over 400 locations across the country.
The sole purpose is “to provide small and medium-sized
manufacturers with the help they need to succeed.” The Centers
are linked through the Department of Commerce’s National
Institute of Standards and Technology. Each Center has the
ability “to assess where your company stands today, to provide
technical and business solutions, to help you create successful
partnerships, and to help you keep learning through seminars
and training.” MEP has assisted more than 62,000 firms with
such programs as process improvement, quality management
systems, business management systems, human resource
development, market development, materials engineering, plant
layout, product development, financial planning, environmental
studies, and much more. Visit this site to locate the Center
nearest you, and contact them for an assessment. This is a
FREE service.

www.pathfinder.com/fortunesb/resources – Find the


Ultimate Resource Guide for Small Business at this website.
This is a growing site, with new information being added all the
time. Information available as of May of 2000, included articles
and information on the following subjects: Angel Investor
Networks, Best Books for Growing Firms, Business Incubators,
Federal Grant Programs for Small Business, Technical
Assistance Programs, Top Commercial Lenders to Small
Businesses, and Venture Capital Sources.

www.pronetpreneur.com - The Professional Netpreneur’s


Website. Learn a lot from professional online marketers here.
Receive a FREE e-book for a limited time when you subscribe to
their newsletter. The book is entitled The Beginner’s Guide to
Starting a High-Income Business on the Internet. Find dozens of
FREE articles and FREE software, Website Design and
Promotional Consulting, and Website Hosting. Also learn how to
accept credit cards, and much more.

www.sbba.com - The Small Business Benefit Association.


“We provide discounted and customized benefits, services,
training, and resources to help small business owners succeed.”
Members receive special discounts and access to benefits and
services that are too expensive to obtain on their own. The
SBBA offers over 35 popular benefits in 7 core areas, such as:
Insurance, telecommunications, medical, dental, term life, and
financial support, such as accepting credit cards, merchant
accounts, checks by phone, managing finances and debt.
Services include discount buying in 16 areas such as office
supplies, travel, vision, moving and security, publications,
education and training, and hundreds of books in their huge
bookstore.

www.smallbizhelp.net - A Small Business Resource & Help


Center. This website has several malls with hundreds of links,
articles and reports, including: The Small Business Success Mall
where you consult with top marketing masters; The Product
Sources Mall, for direct sources in manufacturing; The FREE
Small Business Marketing Letter with reports on field tested
marketing ideas guaranteed to get you more business; and The
FREE SBA Reports, with useful information every business
owner should know. In addition, the website offers small
business Resource Links; FREE reports on topics such as
publicity, negotiation techniques, and bookkeeping; an interview
with internet success story Corey Rudl, who generates over $5
million each year and gets over 6 million visitors to his website;
and an income opportunity with one of the Web’s top affiliate
programs, E-Commerce Exchange.

www.smallbusinessresources.com – The Resources to


Succeed Online and Off. This website offers FREE, helpful
advice from over 100 small businesses and Internet experts.
Get access to hundreds of FREE articles on subjects such as
Management, Marketing, Self-Improvement, Retail and
Outsourcing. You will find a Shopping Guide with a number of
recommended websites on business-related categories,
including: The Internet, Office Supplies, Marketing, Computers,
Management, and Self-Improvement. There are new columnists
joining this group all the time.

www.smalloffice.com – The Fastest Way to the Rightest


Answers. Small Office has expanded with new features
including: Expanded Solutions, an online Community of
Business Experts who answer your toughest questions; More
Services to help you run and grow your business; Online Video
Training; and Smartoffice Radio, 24-hour programming now
online.” Channels include Technology, Marketing and Sales,
Employees and Human Resources, Law, Finance and
Accounting and Insurance, Doing Business Online, and The
Workplace. Find relevant articles on all of these subjects, with
the opportunity to Get Expert Advice, Search, Talk and Share,
Meet Live, Discuss, Get Organized, and Get Products.

www.smartbiz.com/sbs/store.htm – Over 2,000 of the best


business products—On this page, you will find books,
newsletters, reports, audiotapes, videos, start-up guide books,
and more. Products are “carefully chosen, reviewed, and come
with a money back guarantee.” They are categorized for easy
selection.

www.startupuniversity.com -“Start Up University educates


start-ups online, and helps entrepreneurs navigate the first
steps of creating a venture-backed company.” “We host local
hardcore ‘nuts and bolts’ seminars, by top industry VIPs, and
then distribute them to our global entrepreneur subscriber
base.” Learn how to Locate Angels, Build a Board, Negotiate
with Venture Capitalists, Write a Business Plan, Value Your
Start-Up, and Raise Venture Capital.
www.usadata.com – Marketing Intelligence On Demand.
Find information on this website about consumers, competitors,
and markets, so you can make better decisions. Order custom
data reports, consultant reports, and mailing lists. Pre-packaged
marketing information is available in the more than 20 topics
areas, including: banking and finance, The Internet, beverages,
leisure and health care, media and entertainment, computers,
business supplies and services, telephones usage, shopping,
and more.

www.thewarriorgroup.com – Learn the secrets of the


Internet Marketing Warriors. The Internet Warrior Group is a
membership club whose members receive tips, information, and
advice. The cost is a nominal when you add up all the bonuses.
Members who began marketing in the early 1990’s, when the
Internet was in its infancy, share their experiences and insights
with other members.

There truly are X Sites to See, thousands, tens of thousands, or


maybe hundreds of business-related websites. This list could be
two, three or four times as long. What is important is the quality
of the Sites, not the quantity. These and others listed throughout
The Marketing Desk Reference, provide specific hands-on
information, skills, and applications to make the job of marketing
your business easier. Learn from the experience of others.
Embrace knowledge wherever you can. You will be a better
businessperson and a better human being for your efforts.

INTRODUCTION ABCDE F GH I J KL M N O P Q R S TUV W XY Z LINKS


a
mm YELLOW PAGES

Y
Recommended Books

An Insider’s Guide to Dealing With The Yellow Pages by David


Lowe - This guide was written by a 20 year veteran of the Yellow
Pages industry. Learn some tips of the trade from one who knows
and understands Yellow Page advertising from the inside.

Getting the Most from Your Yellow Pages Advertising:


Maximum Profits at Minimum Cost (2nd Ed.) by Barry Maher -
This book is highly regarded, and considered the “bible” on the
subject by people who have used it to “make money and save
money while doing it.” Before you spend money, take a good look
at this book. It offers many ways to save you money and even more
ways to make you money. Maher helps you construct the right ad to
get maximum results with minimum expense.

The Truth About Yellow Pages: Making Them Work for You by
Tom Davis - Davis is a veteran of marketing telecommunications,
presenting yet another insider’s view of the industry with valuable
information on ad sizes, words that sell in the Yellow Pages, and
how to use color and graphics.

Turning Yellow Pages to Gold by Thomas G. Foster-This book is


highly regarded for the depth of information and its thorough
approach. It leads you through the entire process of choosing which
directories and headings, the best ad size and type, copy, layout,
and illustrations.

Recommended Websites

www.bigyellow.com - Locate over 17 million businesses in the


U.S. and Canada by hundreds of categories. Taking a trip? Locate
hotels and restaurants? Relocating? Need a realtor? Want to locate
a florist across town or across the country? Find what you are
looking for here. Also, advertise or link your business to Big Yellow
for as low as $20/month.

www.profitboost.com - Business consultant Thom Tschetter


offers a series of valuable insider tips. His entire booklet, Avoiding
The Yellow Page Money Pit: Lower Your Current Costs and
Increase Your Response Rate Significantly, can be downloaded
for a nominal fee or mailed to you as a hard copy. Thom shows you
how to save more than 25% without changing the content, and how
to write an effective ad that gets customers to call.
Yellow Page advertising is the single most widely used method for
promoting goods and services in the United States today. Over 37%
of local businesses use the Yellow Pages as their major source of
outreach, according to a report by the research firm, Local
Commerce Monitor. In terms of dollars spent, the Yellow Pages
ranks fifth in expenditures for advertising. In 1998, advertisers
invested nearly $12 billion in Yellow Page advertisements.

Businesses choose to advertise year after year in the Yellow Pages


because it is the only medium that consistently provides customers
who are ready to buy. Based on consumer surveys, when
someone opens the Yellow Pages, nearly 90% of the time they
either buy or intend to buy. When you yourself need a vendor for
virtually any product or service, where do you look first? The Yellow
Pages, of course.

From experience you know that the Yellow Pages has listings and
advertisements for dozens of businesses that supply just what you
need. From attorneys to plumbers, hair stylists to contractors, you
know you will have choices on price, availability, location, and a
number of other variables, simply by placing a few quick phone
calls.

According to another report from the National Yellow Pages Monitor


for 1997-1998, over 60% of those who search the Yellow Pages for
a product or service have no particular company in mind when they
open the Yellow Pages. The advertisements effect their decision on
which companies to call. Of the remaining 40% who have a
company in mind, approximately a third of them can be influenced
by a Yellow Pages ad.

As you know the Yellow Pages is the place to find emergency local
assistance, especially if you are dealing with a weekend or after
hours situation that requires immediate attention. Some people use
the Yellow Pages as a reference to locate vendors of unusual or
rarely purchased items or services. The Yellow Pages is also a good
place to look for a new vendor if you become dissatisfied with your
current provider of a particular product or service. When you are
new to a community, the Yellow Pages provide reliable and
reputable local listings for the goods and services you and your
family need.

Everyone uses the Yellow Pages. Whatever the reason people turn
to the Yellow Pages, everyone knows you can comparison shop
and “Let your fingers do the walking.”

Unfortunately, Yellow Page advertising is expensive. Unlike other


forms of paid advertising, you must purchase a contract for a full
year. Your cost will vary depending on where you are located and
what company is publishing the directory you select. Directories
serving large urban areas are much more expensive than ones in
smaller communities and rural areas because of the cost to print,
the circulation, and the number of potential customers the directory
reaches. The Yellow Pages industry calculates that every household
has at least one directory, and that every adult refers to theirs
almost 2 times a week.

A Yellow Pages contract is normally 12 monthly installments that are


charged to your phone bill. As a word of caution, be sure to add up
the total monthly expenses before you turn over your entire yearly
advertising budget to the Yellow Pages. Set a firm budget before
you meet with the Yellow Pages sales representative. Decide what
portion of your advertising budget you are willing to allocate to the
Yellow Pages, divide the number by twelve and keep that figure
firmly in your mind as you discuss possibilities and options.
Not only is the contract for a full year, but also the display ads are
often due six months before the publishing date. Be sure to allow
yourself the time you need to prepare your advertisement. Because
the monthly contract is a charge on your phone bill, you have to
make those payments for an entire year whether or not you make
any sales or are satisfied with the results.

One big advantage to advertising in the Yellow Pages is the


credibility that an ad there brings your business. The public
perception is that companies that list in the Yellow Page Directories
are established and stable. For this reason, make reference to your
Yellow Pages advertisement in all your other local advertising.

Some businesses are naturally better suited for the Yellow Pages
than others. Some businesses, in fact, rely almost exclusively on
Yellow Page advertising and personal referrals. For many in these
fields, the Yellow Pages is absolutely the right medium for them.
This includes: attorneys, realtors, restaurants, plumbers,
electricians, travel agents, dentists, florists, beauty shops, auto, tire,
and transmission shops, chiropractors, and even doctors. There are
many more, of course.

These businesses often represent highly skilled or trained consumer


oriented-services that just about everyone uses at some point in the
year. Since everyone has a copy of the Yellow Pages at home and
at work, the cost of the advertising is worth the expense to providers
in these and similar fields.

Whether or not you are in one of these fields, if you believe Yellow
Page advertising will bring significant customers, and you can afford
the expense, you should consider placing an ad. As long as you get
calls, having one ad that works all year long to bring you customers
can be very attractive. That one advertisement can virtually
eliminate the need to spend much more of your time on advertising.

Carefully evaluate whether your company offers products or


services the public needs and wants that would prompt someone to
look in the Yellow Pages for a provider. See if your business
category is heavily advertised now. Find out if you have many
competitors. Ask yourself if you were to place a small ad, would
people see it?

All business phones receive a “free” listing in at least one category.


(You pay for this “service” because business phones are more
expensive than residential phones, When you acquire a business
phone, Yellow Pages personnel list you unless you specifically
request no listing. Listing every business telephone makes the
Yellow Pages look mammoth. Every business appears, making
highly populated urban directories appear enormous.

Another consideration in deciding whether to place a Yellow Pages


ad is that you will be categorized with all your competition in that
area. Buyers, who may be ready to purchase, still have the
opportunity to shop around and compare. You want to be as close to
the top of your category heading as possible, especially if it is a big
listing. Most buyers start at the front of a category and progress
through until they find what they want.
Study the category in the directory in which you plan to place your
advertisement. If there are already a lot of ads and it looks very
cluttered, you may want to think of a similar category, plan
something highly unusual to catch the attention of prospects, go to a
different directory, or not place an ad at all. Follow your intuition. If
there is already a lot there, you could easily waste a lot of money.

Whatever you decide, always err on the side of caution when it


comes to spending money for expensive advertising. Logic tells you
that unless you are guaranteed results or are very certain of them,
watch very carefully where you put your money and how much you
spend.

Some interesting facts emerged from a study conducted by two


professors at the University of Missouri in St. Louis. Dr. Paul Speck
and Dr. Michael Elliot were commissioned by the Yellow Pages
Publishers Association, (the YYPA) in 1996 to gather facts about the
relative merits of Yellow Page advertising to other media, and how
“clutter” in advertising effects consumer choice.

Their results indicate that the public feels that Yellow Pages
advertising is more informative than other forms, including
newspaper ads, calls to 800 numbers, magazine, radio, TV, direct
marketing, and telemarketing. They conclude that the public feels
that Yellow Pages advertising is a “pure” information service.

Remember, the study was commissioned by the Yellow Pages


Association. The results should not be biased, but the way the
questions were asked may have effected the outcome. Still,
information is valuable, so it is presented here. According to the
Advertising Clutter Study, as it is called, Yellow Page ads rank the
highest in credibility because of the informative nature and the
efficiency of the presentation.

The Yellow Pages also ranks highest in the category of preferred


voluntary media, i.e. media that the public chooses to reference,
watch, or view. Newspaper advertising is a close second to the
Yellow Pages, followed by calls to 800 numbers, magazines, radio,
and TV, in that order. Involuntary advertising like Direct Mail, and
Telemarketing rank the least credible. However, involuntary
advertising is also by far the least expensive for you, the product
provider, to convey your message to the consumer.

Another question posed by the survey was how useful advertising


was. On a six point scale only Newspapers and Yellow Page ads
ranked above three. Television came in 30 percentage points lower
than the Yellow Pages, but newspapers edged out the Yellow Pages
by 12 percentage points. The results show that the public is not
thrilled with any form of voluntary or involuntary advertising.

Estimates vary, but the average American is bombarded by over


500 commercials a day. Radio and TV, though voluntary to the
viewer, broadcast as many as ten spots at one time. When asked if
advertising wasted their time, respondents agreed that the biggest
waste of time was marketing calls to their home.

Everyone has received a “phone solicitation” at an inconvenient or


inappropriate time. Many times people won’t listen to a
telemarketing message even if a real person is on the other end of
the line. However, with the right products and with sensitivity to the
prospect’s needs, telemarketing can be a powerful way to develop
new customers. (See Chapter T- Telemarketing.)
Of those polled in the Advertising Clutter Study, 43%, by far the
biggest percentage, said that Yellow Pages advertising rarely
wastes time. The results indicate that phone calls to the home and
Direct Mail posed the biggest nuisance, then TV ads and radio ads.
Newspaper advertisements ranked closest to Yellow Page ads in
usefulness. Most people expect newspapers to carry advertising,
and often people buy certain newspapers just for their specials and
coupons.

Although most Americans hear, read, or watch as many as 500 ads


a day from other mediums, the average use of the Yellow Pages is
not even 2 times a week for the average adult. Small as that number
appears relative to the total daily advertising exposures, 2
references a week to the Yellow Pages per adult in the U.S.,
means American adults refer to the Yellow Page Directories over
18 ½ billion times every year. Getting a piece of that activity would
boost any business.

Here are some basic facts about the Yellow Page industry you
should know. There are two types of publishers for the Yellow Page
Directories. Publishers related to a telephone company or telephone
service provider are called Utility publishers. The others are
Independent publishers, and they are not directly associated with
any one of the phone companies. Be careful to determine who the
publisher is, because looks can be deceiving. In general, you will
receive more exposure with a directory connected to a phone
service provider, or a Utility publisher.

In addition to two types of publishers, there are actually five kinds of


directories. Major metropolitan areas have multiple directories. The
“core” directory is the one with the most usage in that area and the
one that reaches the entire marketplace for that area. If you want
your listing in the major directory for your area, be sure to tell the
representative you want the “core” directory.

Large areas often break down into suburbs or neighborhoods, each


with individual directories. Listings in these directories are not limited
to just businesses in those areas, but the concentration is most
often for businesses that serve a particular geographic region.
Anyone can pay to advertise in any Yellow Pages Directory they
choose.

A third kind of directory combines a number of smaller directories


into one large directory. Some areas offer business-to-business
directories. If you provide a business or service particularly suited
for businesses, this directory might be an excellent choice for your
company. Finally, some regions offer niche directories aimed at
reaching particular cultural or demographic groups.

Despite the difference in population and targets, all Yellow Page


directories list particular information in a same basic format. Listings
are alphabetical within a heading, and although few Yellow Page
directories list the over 4,000 headings, you are most likely to find
your business easily categorized within one or more topical
headings.

All directories list the Name, Address, and Phone Number of the
business. When thinking how to categorize yourself, you can use a
profession (as in the list provided earlier), the type of product you
provide, or the type of service your business provides.
The Yellow Pages are predominately for advertising local
businesses and services. In fact, less than 15% comes from national
franchise-type operators who place ads for the benefit of their local
outlets.

You may still be wondering whether advertising in the Yellow Pages


can offer you a good return. Consumers use the Yellow Pages for
products and services that might otherwise require shopping
around. In other words, a quick call can answer what they need or
want.

If you place an ad for a year, you need to commit to provide the


product or service for that time, and your staff has to be trained to
handle these calls expertly. In fact, if someone calls from the Yellow
Pages, you should take the call. The opportunity to develop a life-
long customer is waiting, and you want to be the sources of
information, encouragement, and advice.

Customers who use the Yellow Pages believe that they will find
what they are looking for relatively quickly. Make sure your phone
number stands out, because the whole goal is to get people to call
you.

Everyone wants to save time and money these days, so listen,


listen, listen, to what this potential customer wants and be as direct
and to the point as possible. If you are not able to provide the
product or service they seek, say so. If you sense they will listen and
be persuaded to look at your product or try your service, explain
what you have.

Since consumers pick up the Yellow Pages to find information, be


informative if you decide to place an ad. Use your Unique Selling
Proposition, use your hook, and be sure that your phone number is
big and bold. Give as much information as you can. You will be side
by side with your competition. Give brief testimonials and don’t
worry about cramming in too much information. You want to have
the most information.

Be prepared for a tough sales pitch from the sales reps whose job it
is to sell you the most advertising he/she can. It’s best to know
exactly what you want before you meet with any sales
representative. If you have the Yellow Pages design your ad, which
they will say is part of the cost of your advertisement, keep in mind
that you may end up by looking like everyone else.

It is far better for you to have your art department, your printer, your
own graphics specialist, or you, yourself, create the ad to look as
you want it to look. It is best for your Yellow Pages ads to resemble
your other advertisements, so people can relate to style, fonts,
logos, hooks, and other characteristics that are your unique style. If
you let the art department at the Yellow Pages design your ad, you
loose control of “your look”.

Here are some guidelines. If you are going to invest thousands of


dollars in a one time yearly Yellow Pages ad, seriously consider
buying a reference book like several recommended in the beginning
of this chapter. Many of the authors have worked with or consulted
people who have worked in the industry for years. Chances some of
their great tips will help you save time and especially some money.

1. Headline - You need to stand out from everyone, especially


your competition. Use a benefit in your headline if possible. Being
different is better. People will notice you.
2. Body - Talk benefits, benefits, benefits. Tell them what makes
you unique, your USP. If you only have a small space, use bullets.
Avoid features. Everyone can offer features.

3. Make them an Offer - You do this in all your advertising, so


do it here, as well. Whatever you offer is an added benefit, whether
it is a free consultation, a discount, a free estimate, or even a free
report.

4. Bold your Phone Number - The most important part of your offer
is getting them to call you. Make sure that your phone number is big
and bold so customers see it clearly. Keep some open space
around it, so that it stands out.

These guidelines follow the basic AIDA formula explained in


Chapter A-Advertising. You get their attention with a different and
unusual ad. You get their interest with the benefits you offer them.
You get their desire by offering them something for free, something
few yellow page advertisers do, and finally you get them to action,
with a big BOLD phone number preceded by Call Now! Or, Call
Today!

Not only do you want your ad to be the most informative and the
most unusual, you also want to be the biggest ad in your heading, if
you can afford it. It will be very expensive to be the biggest ad in a
category. Consider this: surveys show that as many as 30% of
Yellow Pages shoppers call the biggest ad in a heading. That is a
huge percentage of these qualified and ready-to-purchase buyers
that gravitate to one company just because it has the biggest ad.

When it comes to Yellow Pages ads, there is no way of knowing


exactly how big is big enough. The previous year’s directory will
give you an idea of the biggest ad in your heading from the previous
year. You will know the minimal size you will need to be.
Advertisers usually go up a size from year to year. Rarely do they
go down, so you can expect that the biggest will either be a size
bigger or the same size.

The decision about the size of your ad is as much related to what


you hope to accomplish as what others in your field are doing. There
is absolutely no reason to start with a big and very expensive color
advertisement your first year unless you are absolutely committed to
this method of marketing your business, and you are quite certain
that Yellow Page advertising is the right medium for you.

The Yellow Page sales reps will attempt to sell you on the biggest,
most elaborate advertisement their agency can develop. They will
attempt to convince you that their designers know exactly what
appeals to the public. Stand your ground on developing your own
advertisement in your own way.

Use your other adverting mediums, your Direct Mail letters, your
newspaper and magazine ads to see what headlines and
information get the most responses before you guess or place a
Yellow Pages advertisement. You may already know from trial and
error what pulls the most response.
To track responses to your Yellow Pages advertisement, consider
dedicating a special line that runs into your existing phones lines, or
have the calls come into an extension. You can even make up an
extension that only Yellow Page customers would use when calling
into your main number. Some companies use a discount just for
their Yellow Page advertising: “Mention this ad for a 20% discount.”
Train your staff to ask new customers where they heard about your
company.

Regardless, advertising in the Yellow Pages will cost you a small


fortune. Be certain that this is the right medium for your product and
service, and develop some way to track the responses so you can
calculate your return. You will want to know if this method of
advertising is bringing you significant customers before you sign
another contract committing your company to another year of
advertising.

As mentioned, your layout is very important in a Yellow Pages ad.


You want the buyers to see you first as they thumb through the
pages. Be creative. Utilize borders and color, if you can afford the
expenditure. Color, like size, draws attention to your ad. Color also
costs quite a bit more. Again, look carefully at the listings from the
year before. If there already are a lot of advertisements in your
heading with red color, then the extra expenditure may not be worth
the cost.

Color, like many of the other elements is ultimately your decision,


but do plan to make your border interesting and different from others
in your field or industry. If you can use a symbol from your industry
to make the border, you will have something different than the
standard dark, solid, black line.

Like anything else you write and print, you can copyright your Yellow
Pages advertisement. This is a good idea if you develop a special
border or explain a benefit of your product or service in a unique
way. Copywriting is not difficult, you can do it online, and you don’t
have to do it immediately. You do want to be the first to submit the
information.

Put the © symbol, followed by your company name, followed by the


year. You can do this as a precaution and warning to others not to
use anything in your advertisement, but you will need to complete
the paperwork and register as first user if you want the copyright.
(See Chapter U- US Government Resources for information on
copywriting.)

The Yellow Pages is an excellent method for reaching a consumer


base that is ready to purchase goods or services. As a product
provider, you need to study the listings in your field or specialty to
see if others are using this medium.

The cost of placing an ad is amortized over a year, but the total can
be staggering. Still, some vendors in some fields, see as much as
an 800% increase in business inquiries as a result of listing in the
Yellow Pages.

If you are convinced this is the medium for your product or service,
do everything you can to be the biggest, brightest, and boldest
advertisement in your heading. Make every effort to get placed at
the top of the heading, as well. The extra funds expended virtually
guarantee that you will get the most calls, the most business, and
the most sales!
INTRODUCTION A B C D E F G H I J K L M N O P Q R S T U V W X Y Z LINKS
a
mm eZINES

Z
Recommended Books

The Directory of e-Zines by Ruth Townsend is actually an electronic


database service. Advertising in e-Zines is similar to advertising in a
newspaper, but your ad appears in an online publication. Not all e-
Zines accept advertisements. The Directory of e-Zines is a
compilation of e-Zines that do. Choose from over 70 subject categories,
offering 30 specific and individual, characteristics for each E-zine you
choose, such as the publisher’s name and contact information, the
frequency of publication, and the cost to place an ad. E-zine advertising
is free in some cases. When there is a charge, the cost is usually very
reasonable. Find more information on www.lifestylespub.com.

Recommended Websites

Listed after the commentary are a very few selected e-Zines with a brief
description and the URL where you can get more information and
request a subscription.

Some contend that the word “e-Zine” is derived from electronic


magaZine, hence e-Zine. Though this explanation seems plausible and
logical, the Zine is an actual literary form. E-zines, or electronic Zines,
bear many resemblances to the pre-computer, pre-Internet
communication media.

Zines are “alternative” publications generally found outside the


mainstream culture. They are self-published hand and homemade
magazines most often photocopied and mailed to friends and
associates. They are very personal in nature and distributed for
presentation of ideas, for fun, and to poke fun. They are not for profit.
Zine subject matter is counter-cultural in nature, a means of sharing
social and political activism and freedom of expression on a variety of
topics. Zines are not advertised in any formal way. The virtues of each
one spread through word of mouth. By some estimates there may be
as many as 50,000 Zines in distribution.

If you are interested in knowing more about Zines, The Book of Zines:
Readings from the Fringe, Chip Rowe (editor), and ZINES! Volume
One: Incendiary Interviews with Independent Publishers, by V. Vale
(editor), provide numerous samples of Zine writing, and you can make
your own decision about the derivation of the e-Zine literally format,
which is certainly here to stay.

E-Zines subscriptions are almost universally free at this time. They are
generally the ideas and perceptions of one individual distributed
electronically to an email list on a regular basis. The author develops an
email mailing list from friends and associates, through word of mouth,
by promoting the newsletter on his/her website, and on the website of
affiliates. The subject matter of e-Zines is as extensive as an
encyclopedia.

Anyone can write an e-Zine, publish it, advertise it, and begin emailing it
to people who request it. In fact, e-Zine publishing is fast becoming one
of the more popular ways to advertise on the Web. Known as “opt-in
mailings,” e-Zines are sent only to people who have asked to receive
them through a simple subscription process.

If you provide enough fresh and interesting material to keep readers


interested, they’ll continue to subscribe, follow your suggestions, buy
products and services you recommend, and tell others.

Webmasters promoting products and services on the Internet have


discovered that advertising in the thousands of regularly published e-
Zines is an inexpensive way of reaching hundreds of thousands of
people without “spamming” (sending unauthorized emails). Since the
“advertising” is contained within the body of the newsletter, it is
considered a part of the requested information.

Some e-Zine writers want to remain strictly original in the content and
information of their publication. Some writers will not accept outside
advertising. They recognize a potential risk of alienating some of their
readership if they become too commercial.

Others trade articles, promotional information, and advertising with each


other. After the recommended list of e-Zines is another list of websites
you can contact for information on writing, and advertising in e-Zines.

A study by Forrester Research shows that e-Zine advertising is


currently yielding response rates from 14% to as high as 22%.
Compare these figures to banner advertising, once the norm on the
Internet, which yields about 1%. Though less “visible and colorful,” you
can understand why product providers are excited about sharing,
exchanging, co-oping, or buying E-Zine advertising.
Ironically, the cost to advertise in e-Zines is currently less expensive
than banners. For the authors of e-Zines selling advertising creates an
additional source of income. If the trend continues, the e-Zine may
begin to resemble an electronic magazine more than the Zines.

There is no definitive list of e-Zines on the World Wide Web. Several of


the resource websites have been tracking their growth for years. Every
day new e-Zines appear, and older ones change or disappear. There
are well over five thousand in English alone.

The list below is by no means comprehensive in the sales and


marketing field, but it does cover the spectrum of e-Zines available. Big
companies and corporations, like IBM and Barnes and Noble, offer a
small business e-Zine on a regular basis to anyone who subscribes.

There are also e-Zines from a great number of small companies and
individual business owners. Some e-Zines from Web marketing
masters are sold-out or are at the maximum allowable capacity. Such is
the case with Paul Wiley’s “All the Secrets…” e-Zine. Others, like Web
Promote and Internet Marketing Chronicles have a hundred thousand
subscribers or more.

Sign up for as many e-Zines as you feel you have time to read. You
can unsubscribe if the information is not useful to you. Each issue
comes with a simple way to remove yourself from the list. To sign-up for
each one, sign onto the Internet, type in the URL address given onto the
address bar of your browser, and push Go! Or return. In most cases,
the addresses given will take you directly to the newsletter or the e-Zine
subscribe page.

If your computer will not click through, go to the home page of the site
and search for buttons that will lead you to the e-Zine subscription.
Websites that offer e-Zines, usually advertise the e-Zine on the front or
home page. For the website www.aoksites.com ,
ww.aoksites.com/ezine/subscrb.html is the URL for the newsletter.
Remember to enter the www on the menu bar line WITHOUT the
parenthesis.

It is a good idea to write down the name of the e-Zines to which you
subscribe so that when you receive their email, you are comfortable
opening the newsletter. Many people will tell you not to open mail from
anyone you don’t know because viruses spread through email. Prudent
e-Zine authors are now sending queries to verify that you wish to
subscribe. You have to return a reply before you get on their e-Zine list.

Recommended E-Zines

About.com Newsletters - About.com is a “a network of sites led by


expert guides.” You will find articles, chat discussions, forums, and
much more on almost every subject imaginable. About.com offers
newsletters on numerous subjects. Click on the newsletters tab on the
front page menu bar and read the selections on the newsletters page.
www.about.com
AD-itude Online Ezine - Receive a free ad submission on this E-
Zine. Dedicated to keeping subscribers “in tune to the latest Internet
marketing techniques.”
www.ad-itude.com

AllBusiness Newsletter - AllBusiness.com offers “solutions for growing


businesses,” and is an extensive site for business information. Scan to
the bottom of the front page to signup for their newsletter. While you’re
there take time to browse the site directory for information you can use.
www.allbusiness.com

Bn.com Insider - Barnes and Noble will keep your bookshelves lined.
Choose from 70 categories. “Get recommendations, reviews, special
deals, articles and chat updates on new books, software, and music.”
www.bn.com/Insider

BizTips - The Small Business Knowledge Base provides this free


newsletter with “cutting edge tips, tricks, and techniques to help you
succeed in your small business.” Find nine helpful channels of
information on the homepage, as well as their “Managing a Small
Business CD.” This is an informative, useful, and well-organized
website to explore. www.bizmove.com

BizWeb eGazette - from Jim Daniels at JDD Publishing, offers “cyber


marketing tips, articles & classifieds in each bi-monthly issue.” This
website is full of excellent material. www.bizweb2000.com

Business Know-How Newsletter - from Attard Communications, Inc.


offers information and helpful articles on the mechanics of building a
business. “Learn how to make more money with less effort.” This
website has a lot of useful information.
www.businessknowhow.com

Buyer Zone Newsletter - Check out Buyer Zone for all your office
equipment needs. You can get online comparable quotes from local
business on all business needs. www.buyerzone.com

The Donohue Letter - from ChamberBiz, the website of the U.S.


Chamber of Commerce. Tom Donohue is President and CEO of the
U.S. Chamber of Commerce. The newsletter provides “indispensable
business news and information you can customize to your business
needs.” www.chamberrbiz.com/registration/email_reg.cfm

d’Work Zone - from DigitalWork, “your business workshop,” featuring


“easy-to-use business services designed to assist you in completing
critical tasks for your small business.” The e-Zine is dedicated to
providing you with practical advice on working online and growing
revenue.” www.digitalwork.com
Ecommerce Made Easy Ezine - from the promoters of Explode, a
manual on finding success with Internet marketing. The newsletter
offers “breakthrough e-business information, tips and commentaries on
web design, e-business management, newsletter publishing, and
promoting on the Internet.”
http://aaecommercesolutions.com/subscrib.htm

ELibrary Tracker - from Infonautics Corp. is not really a newsletter,


but you select topics of Interest and they regularly email articles to you
from the media and other sources, for free. They are very consistent.
Also see the “eLibrary Tracker Business
Edition.” www.elibrary.com ,
http://business.elibrary.com

E-Zine AdSource Weekly - from the E-Zine AdSource Directory,


gives you weekly articles, tips, information, and techniques covering all
aspects of e-Zine advertising. With your subscription you get the E-Zine
Advertising Manual FREE.
www.ezineadsource.com

The FreeTips – TipSheet™ - There are no classified ads on this e-


Zine. It is “100% all Original Content.” Every issue contains “a useful
FREE program or web resource to help your business.” The website is
a source for thousands of business resources, tools, and
links. www.freetips.com

The Gazette - from Jim Wilson of Jim World is now in its fifth year.
The weekly Gazette is delivered to “your email box full of the latest
news in site promotion and e-commerce.” The website also has helpful
tools and information for promotion www.virtualpromote.com.

Insider Reports Journal - The Horizons Unlimited Group brings you


“cutting-edge, privileged and hard to find information that will keep you
in the know about important matters directly impacting your life, your
career, and your finances.” The journal includes regular features on
creative sales and marketing.
www.insiderreports.com/forms/frmsubscribeezine.htm

Internet Marketing Chronicles - Highly respected and widely


subscribed (over 85,000 opt-in subscribers), the Internet Marketing
Chronicles offer useful tips and information for the online marketer,
“simple, proven, and risk-free ways of starting and promoting any
business, product, or service on the
Internet.” www.netnetmoney.net

Internet Marketing Tips - from The Internet Marketing Center. At one


time subscribers paid $147/yr to receive this now FREE newsletter with
“cutting edge promotional tips and tricks.” Topics include advanced web
page design and promotion, search engine tips, affiliate programs,
online ads, banners, e-Zines, online newsletters, sales strategies, copy
writing, and much more. www.marketingtips.com/subscr.html
Key Marketing Quick Steps - from Key Steps.com offers to “help
increase your Website traffic, rank high on search engines, and all
about eCommerce.” The website offers a host of free reports and
articles as well as links to other similar sites.
www.keysteps.com/TrafficBuilders/ezines.htm

Jupiter’s Digital Digest - Jupiter Communications, widely regarded as


the worldwide authority on Internet commerce, has hosted the Online
Advertising Forum in New York City since 1995, and Breakfast Forums
held around the country where company analysts present their latest
research. Jupiter is a research firm focusing “exclusively on how the
Internet and other technologies are changing traditional consumer
industries.” www.jup.com/jupiter/digest

Links Rx Newsletter - is from Bob Cortez, of Total Quality Marketing,


a business marketing consultant with a website that offers a unique
promotional plan to bring more traffic to your site. This is the home of
the World’s First FFA Links Search Engine.
www.tqm-online.com

Marketing Flash! - from marketing consultant and professional


services coach Robert Middleton, this monthly marketing e-Zine is
“dedicated to helping service businesses attract new
clients.” www.actionplan.com/flash.html

The Marketing Resource Center Newsletter from Concept Marketing


Group is “designed to assist businesses with their traditional and
Internet marketing efforts.” Register for free with the BusinessFind
search engine and with Business Classifieds. Search the Articles
Library and attend Marketing Forums. Registered users receive this
biweekly newsletter. www.marketingsource.com

The Planning Newsletter - from the planning people at Palo Alto


software, the specialists who designed Business Plan Pro. This
newsletter contains “new articles, site updates, product
announcements, and other valuable information.”
www.paloaltosoftware.com/newsletter.cfm

OneList E-Mail Communities - Onelist features over 280,000 email


lists and communities. Join “list groups” which interest you for a lively
exchange of information and ideas. Find people with similar interests
who share common goals and aspirations.
www.onelist.com

SCORE eNEWS - Once a month SCORE (the Service Corps Of


Retired Executives) sends “SCORE tips, trends, info on small biz
resources, and the occasional small biz quiz from SCORE- ‘Counselors
to American’s Small Business.’ ” www.score.org/enews/

SHBBL: Small and Home Based Business Links - Choose from 30


topic areas and “receive news, special offers, and discounts targeted to
your interest.” The site has powerful links to information you can use for
your business, including a very extensive library of information.
www.bizoffice.com/frame_index.html
Small Business Center Newsletter - from IBM, which has over
40,000 products. Their newsletter offers “priority notification of special
offers, the latest e-business news and more, with a very conventional
approach.” www.ibm.com. Once on the website, click on small
business on left menu bar, on small business page click on e-
Newsletter on left menu bar.

The Small Business Journal Newsletter - Site designed and


maintained by CGNet Corp. This website offers articles, resources,
books, software, discussion forums, advertising opportunities including
their Easy Access Directory, and their
Newsletter.” www.tsbj.com

The Tip Sheet™ - from Ed Osworth has 100% original content in


every newsletter, and no classified ads. Each issue has “a useful FREE
program or web resource to help your business.”
www.freetips.com/tip_sheet.html

The Write Way - from Jennifer Stewart, offers tips to help you with
your online writing tasks. The website has a home study course to
improve your writing skills. www.write101.com

Web Marketing Today - from Dr. Ralph F. Wilson, who states: “Our
goal is to help business people learn how to market their products and
services more effectively by means of a Website, and to provide on-
going support, encouragement, and marketing ideas for Web marketers
worldwide. ”While we will learn from large corporations on the Web, we
focus on marketing strategies which can be accomplished with the
limited budgets typical of small to medium-size businesses.” Delivered
twice monthly. This e-Zine currently has over 80,000 subscribers
worldwide.” www.wilsonweb.com/wmt

WebPromote Weekly - “This leading email newsletter is packed full of


free information on the latest online promotion developments,
opportunities, and tips to make your website more competitive.”
WebPromote offers FREE tools on their site and online marketing
products. This e-Zine is the choice of over 400,000 webmasters, web
publishers, marketing managers and other professionals.
www.webpromote.com

Weekly Guerilla - This is a weekly update from the folks at Guerilla


Marketing with all that’s new at Guerilla Marketing Online. Subscribe to
this free newsletter and you’ll be entered into a free monthly drawing for
“nifty stuff” from their sponsors. www.gmarketing.com

Weekly Newsletter - from eMarketer, a popular “weekly round-up of


ecommerce stories, interviews and stats from news, Internet sources,
and publications both online and off. Stay current with the fast-changing
internet world.” www.emarketer.com/services/eservnewsl.html

There may be as many as several thousand more e-Zines on business,


sales, and marketing, and tens of thousands more e-Zines on literally
hundreds of other subjects. Opportunities exist to advertise and
exchange advertising with many of these publications.
At this point, you might be thinking about developing an e-Zine of your
own, both for your current customers and as a means of expanding your
business. If you have a Website or plan to build one in the near future,
developing a unique e-Zine that captures the imagination of your visitors
is a very good way to keep them coming back as customers.

The resources below offer endless opportunities to explore e-Zines on


virtually any subject, including business, sales, and marketing. Some of
these websites are resources for finding e-Zines to advertise your
product or service for pay or exchange. Others provide information for
developing an E-zine of your own.

If you are considering developing an E-Zine, here are a few tips to


consider as you make your plans. Develop a loyal customer base by
providing unique material, special offers, and interesting, useful
information. Word will spread about the information you have to offer,
and you will gain more subscribers. Each new subscriber becomes a
potential customer of your products or service.

You may want to investigate sites with articles you can reproduce for
free, unless you have endless ideas about which you plan to write. Offer
a bonus to those who recommend new subscribers. Preview “coming
attractions” of features and offers coming in future issues so that your
readers get excited, and tell others about your e-Zine.

A common format for e-Zines is to offer a table of contents at the very


beginning so readers can scroll through information that interests them
and get a quick overview of the entire contents. Previews of coming
attractions for future issues can be a regular feature in the table of
contents. Whenever possible solicit and use product testimonials as a
regular feature also. Testimonials double as human interest, and are
extremely convincing to potential buyers

Offer your readers specials or discounts on your products or services.


These may be unrelated to your product, but offer something everyone
wants. Whatever you decide, let your subscribers know you
appreciate them by offering something unique. A frequent service
offered by many e-Zine writers is the onsite availability of articles from
back issues. Subscribers like to skim through previous information.
The process of making back issues available is called archiving. .

Many e-Zines use a professional mailing list service to manage and


distribute the e-Zine. Though a mailing list account costs you money,
you will find the convenience immeasurable. You will free yourself from
simple mechanics to focusing on the creative aspects of writing your e-
Zine.

E-Zine Resources

E-Zine AdSource Directory - This is a list of nearly 600 e-Zines with


an average circulation of 10,000+. You receive a 20% discount on
placing ads in these e-Zines with your Directory Membership. There are
over 80 categories from which to choose. Cost to advertise is as low as
$6 per 1,000 e-Zines. The AdSource Directory will run your online
campaign as a full service Ad Placement Service.
www.ezineadsource.com
The E-zine Center offers 30 categories of nearly 600 e-Zines,
including business and marketing. Choose a category, click on it, and
get a list of e-Zines with a solid description of each one and how to
subscribe. www.ezinecenter.com

E-Zine-List - This is a gallant effort to maintain as complete a list as


possible of e-Zines on the Internet. John Labovitz has attempted to
record all known e-Zines since 1993, when he was looking to publish
his print Zine, Crash. As he says on his website, “When I started the list,
e-zines were usually a few kilobytes of plain text stored in the depths of
an FTP server… the number of living e-Zines numbered in the low
dozens, and all of them were produced using the classic self-publishing
method: scam resources from work when no one’s looking.” The latest
edition of the E-Zine-List, updated in June of 1999, contains 4,225 e-
Zines, with 440 business-related e-Zines. On his Website you can
navigate this list in several ways. Each entry gives key information on
the e-Zine including the title, a brief description, where to find it, and
who publisher it. www.meer.net/~johnl/e-zine-list

EzineSearch - The World’s Ultimate e-Magazine Database is a


subscriber service, but you can get data as a non-subscriber. The home
page lists the Top 100 eZINESearch Categories, with the number of e-
Zines available in the database for each. Also on the home page is a
button to click for the new e-Zines of the day. Email the Webmaster to
become a subscriber and attain full reprint rights of the list for
resale. www.ezinesearch.com

E-Zines Today - Offers in excess of 1200 e-Zines all of which are


free subscriptions. Add your e-Zine to their list, also for free. The
database is alphabetical, so you can print by letters of the alphabet, or
browse and print sections.
www.ezinestoday.com/freesubs/freesubs1.htm

Free Advertising Directory’s Helpful E-Zines and Newsletters - Print 14


pages of single-spaced, e-Zines, over 400 business links, on the
homepage of this website. This site lists the names of e-Zines, and their
subscriber address only. www.ecki.com/links/ezine.shtml

ListCity - “THE resource for the e-Zine community.” They offer two key
databases for e-Zine advertisers and publishers. The first is the
Advertising Exchange Directory, which consists of listings of e-Zines
interested in advertising exchanges. The second is The Book of e-
Zines, a database of advertising contact information and rates for
hundreds of e-Zines. http://list-city.com

Newsletter Access - “The Web Source for expert Information in


every field.” You can browse or search a directory of over 5,000
newsletters and “learn about what the experts say about everything
from how to make money in the stock market, to how to pick a fine
wine.” Also on the Newsletter Access Website is the Publisher’s
Corner with pages of information to help you publish your own e-Zine.
www.newsletteraccess.com
ZineZone - This CMGI Company is a leader in the field of
development of new Internet, interactive media and database
technologies. ZineZone offers over “900+ subject-specific Web guides,
or Zines which bring you “dynamic best-of-the Web content on topics
ranging from Star Wars to extreme sports. From cancer to journalism to
ice climbing, you’re guaranteed to find need-to-know info.” As a
ZineZone member you can create “your own personal Web magazine
on the subjects you’re passionate about.”
www.zinezone.com

E-zine Publishing Course - For a nominal fee, enroll in a four week


course taught by Kelley Williams of Liberty, Texas. At the end of the
course you will have “a subscriber base, your first issue will be finished,
if not already released, and you will have promotion knowledge that will
help you in ANY online business.” The course does not include web
design, but you will learn about publishing a web-based e-Zine. The
course syllabus is on the website.
http://kwilliams.hypermart.net/course.html

Good luck with e-Zine, browsing, searches, advertising, and designing.


The e-Zine offers an inexpensive way to reach hundreds of thousands
of people with your product or service. Whether you publish your own in
tandem with the development of your Website, or experiment with
advertising in others’ e-Zines, or subscribe to e-Zines for tips and
information, be sure to add this final concept, the letter Z, for e-Zines, to
your overall marketing plan.

INTRODUCTION A B C D E F G H I J K L M N O P Q R S T U V W X Y Z LINKS
LINKS

Chapter A
http://advertising.utexas.edu/research/Topics.html
http://dmoz.org
www.businesstown.com
www.usaworld.com/Mall/FillerAds.htm
Chapter B
www.about.com
www.aeu-inc.com
www.allbusiness.com
www.ama.org
www.gmarketing.com
www.infousa.com/homesite/news.html
www.lowe.org
www.onlinewbc.org
www.smartbiz.com
www.toolkit.cch.com
www.123-books.com
www.amazon.com
www.bn.com
www.booksamillion.com
www.books.com
www.bookcloseouts.com
Chapter C
www.franchise1.com/catalog.html..
www.craftassoc.com
www.gcwoodworks.com
www.aeu-inc.com
www.catalog.savvy.com
www.catalogsfroma-z.com
www.buyer’sindex.com
www.catalogage.com
www.cataloglink.com
www.catalog-news.com
www.catalogsusa.com
www.catalogworld.com
www.dsa.org
www.mallofcatalogs.com
www.teraglyph.com/cathome.htm
Chapter D
http://caldwell-list.com
www.bestpricedlists.com
www.infousa.com
www.myprospects.com
http://members.aol.com/JSResource
www.all-biz.com/articles/question.asp
www.amlist.com
www.dmnews.com
www.craftassoc.com/modisk.html
http://homebiz-info.com
www.palis.com/index.htm
www.thinkdirectmarketing.com
http://prodigy-business.digitalwork.com
www.4eletter.com/about.asp
www.allbusiness.com/business_center/tools
www.infousa.com
www.postmasterdirect.com.
Chapter E
www.exhibitornet.com
www.expobase.com/exbweb/abouteb.htm
www.expoguide.com
www.gesexpo.com
www.isquare.com
www.tradeshowadvisor.com
www.tscentral.com
www.tsnn.com
www.tsnn.com/exhtips.htm
Chapter F
https://ace-net.sr.unh.edu
www.businessfinance.com
www.thecapitalnetwork.com
www.datamerge.com/financingnews/financinginsights .html
www.financehub.com
www.garage.com
www.inc.com/articles/details/0,6378,ART869_CNT53,00.html
www.inc.com
www.loanwise.com
www.quickyes.com
www.altavista.com
www.excite.com
www.go.com
www.infoseek.com
www.lycos.com
www.msn.com
www.yahoo.com
http://home3.americanexpress.com
www.allbusiness .com
www.bizproweb.com
www.bplans.com
www.businessfinance .com
www.inc.com
www.inreach.com/sbdc/book/toc.html
www.isquare.com
www.lookupusa.com
www.lowe.org
www.onlinewbc.org
www.toolkit.cch.com
www.tsbj.comwww.about.com
www.isquare.com/stateoffices.htm
www.corporate.com
Chapter G
www.digitalwork.com
www.altavista.com
www.excite.com
www.go.com
www.infoseek.com
www.lycos.com
www.msn.com
www.yahoo.com
http://home3.americanexpress.com
www.allbusiness .com
www.bizproweb.com
www.bplans.com
www.businessfinance .com
www.inc.com
www.inreach.com/sbdc/book/toc.html
www.isquare.com
www.lookupusa.com
www.lowe.org
www.onlinewbc.org
www.toolkit.cch.com
www.tsbj.com
www.about.com
www.isquare.com/stateoffices.htm
www.corporate.com
Chapter H
www.icode.com
www.hooversonline.com
www.myservice.com
www.onlinewbc.org
www.score.org
www.supplierfinder.com
www.ezines.com/secrets.html
Chapter I
www.tv-infomercial.com
www.dmnews.com
www.imstv.com
www.infomercialindex.com
www.la411.com
www.responsetv.com
www.altavista.com
www.infoseek.com
www.yahoo.com
Chapter J
www.insiderreports.com
www.proedsvc.com
http://home.eathlink.net/~fpearce/Jointventure.html
www.insiderreports.com/legalfrm/b10198.html
www.struc.com/news/51int.htm
www.wjmurray-assoc.com/jvdevelop.html
http://pacific/commerce.ubc.ca/evc/vc_title.html
www.nasvf.org
http://ace-net.sr.unh.edu
http://financehub.com
www.garage.com
www.insiderreports.com
www.insiderreports.com
www.nfib.com
www.nvca.org
www.nvst.com
www.privateequity.com
www.pwcmoneytree.com
www.sourcecapitalnet.com
www.startupuniversity.com
www.vcaonline.com
www.vcapital.com
www.v-capital.com
www.vfinance .com
Chapter K
www.pathfinder.com/fortunesb/resources/best_books.html
www.1800mylogo.com
www.amanet.org
www.bizmove.com
www.businessknowhow.com
www.connect.claritas.com
www.guru.com
www.infoworth.com/ask.htm
www.insiderreports.com/bizrpts/resource.htm
www.insiderreports.com
www.isquare.com
www.office.com
www.onlinebusadv.com
www.professionalcity.com
www.score.com
www.smallbizmanager.com
www.trainingforum.com
www. trainingnet.com
www.usadata.com
Chapter L
http://lcweb.loc.gov/copyright
www.isquare.com/stateoffices.htm
www.uspto.gov
www. about.com
www.adlaw.com
www.corporate.com
www.lawyers.com
www.legaldocs.com
www.lib.utexas.edu/Libs/ENG/PTUT/ptut.html
www.lib.utexas.edu
www.nameprotect.com
www.nolo.com
www.parcorpsvcs.com
www.patents.com
www.quickforms.net
www.siccode.com/forms.php3
www.smartagreements.com
www.venable.com
www.yourbizservices.com
Chapter L
www.business24-7.com
www.narda.com
www.retailernews.com
www.retailing.com
Chapter M
www.business24-7.com
www.narda.com
www.retailernews.com
www.retailing.com
Chapter N
http://ajr.newslinks.org
http://globaltower.com/e/exporter/benefits.html
http://globaltower.com/e/exporter/benefits.html
www.888allmags.com
www.advertisingresults.com/usrpages/hanson.htm
www.chicom.net/resources/press.html
www.cnpa.com
www.discountadvertsing.com
www.enews.com
www.gallery.uunet.be/internetpress/American.htm
www.gebbiepress.com
www.jenntech.com /newspaper
www.magazinedata.com
www.mediafinder.com
www.magazineremnants.com
www.newspaperlinks.com
www.newspapers.com
www.papers.com
www.thriftynickel.com/flash/national_main.html
www.tradepub.com
www.usnewspapers.net
http://ajr.newslink.org
Chapter O
http://advertising.utexas.edu/world/Outdoor.html
www.d-net.com/min2/min41855.html
www.oaaa.org
www.signweb.com/links/SWParticipatingMembers.html
Chapter P
www.pressblaster.net.
http://desktop-journal.com
http://lamar.colostate.edu/~hallahan/hpubty.htm
www.advertsing4free.com
www.dern.com/welltemp.html
www.gopressrelease.com
www.ideasiteforbusiness.com/direct.htm
www.internetwire.com
www.marketingsource.com
www.newsbureau.com
www.pressflash.com
Chapter Q
www.tcguide.com
www.write101.com
http://postcards.cashconnection.com/Carddeck.htm
www.acpinc.com/healthinfo/cardpack/main.html
www.bignetprofits.com/onemil-thumb.htm
www.capitalwave.com
www.chelseadirect.com
www.d-net.com/min2/min41867.htm
www.groupcomputing.com/Information/AdvertisingInfo
www.homebusinessmag.com
www.mbbonline.com
www.thedesignlist.com/index.html
www.vulcanpub.com/imdcd/advertising/directmail
www.market.comm/Interstate/carddeck.htm
www.worldprofit.com
www.entertainment.com
www.fundraisingcards.com/ricknew.htm
www.valpak.com/info/advertising.jsp
www.ppa.org
www.gopromos.com
Chapter R
http://ajr.newslink.org/rneradi.html
http://ajr.newslink.org/statradi.html
http://members.aol.com/_ht_a/radioinfom/page/index.htm
www.radioairtime.com/buyradio.htm
www.rronline.com
www.web-radio.fm/fr_newstalk.html
Chapter S
www.salesdoctors.com
www.sellingpower.com
Chapter T
http://salesdoctors.com/welcome/besttelesales.htm
www.coldcalling.com
www.exp.com
www.smartbiz.com/sbs/arts/dun10.htm
www.smartbiz.com/sbs/arts/hph15.htm
www.smartbiz.com/sbs/cats/tele.htm
www.telemkt.com
Chapter U
www.sba.gov
www.adobereader.com
www.insiderreports.com
http://cbdnet.access.gpo.gov
http://classroom.sba.gov
http://classroom.sba.gov/officecom.html
http://pro-net.sba.gov
http://web.sba.gov/subnet
www.bidengine.com
www.business.gov/busadv
www.fedmarket.com
www.fedmarket.com/
www.pueblo.gsa.gov
www.sba.gov/bi/bics
www.sba.gov/hotlist
www.sba.gov/sbdc
www.score.org
www.state.ca.us
www.uschamber.com
www.sba.gov/sbdc
www.sba.gov/bi/bics
www.sba.gov
www.sba.gov/hotlist
http://classroom.sba.gov
http://web.sba.gov/subnet
www.fedmarket.com
www.fedmarket.com/sales_resources/bids/state
www.state.ca.us
www.business.gov/busadv
http://cbdnet.access.gpo.gov
www.pueblo.gsa.gov
www.uschamber.com
Chapter V
www2.targetonline.com/tm/articlesearch/drtv.html
www.fulfillmentnetinc.com
www.fwmedia.com/reports/maillist.htm
www.icemall.com/national/cabletv.htm
www.outbackmedia.com/services.shtml
www.pmci.com/pmci/fulfillment.html
www.responsetv.com
www.strategicfulfillment.com
www.televisionairtime.com/index.html
www.tvadvertising.com/tvad/tvbigidea/campaign.html
www.tv-informercial.com/media.htm
www.hsn.co
www.qvc.com
www.collectibles.co
Chapter W
www.Microsoft.com/frontpage/?RLD=29
www.networksolutions.com
www.register.com
www.htmlclinic.co
www.ncsa.uiuc.edu/General/Internet/WWW/
www.pages4free.8m.com
www.pageresource.com
www.vjungle.com
www.workz.com
www.addr.com
www.bizland.com
www.thedirectory.org
www.gethosted.com
www.hostcompare.com
www.hosthelp.com
www.netnation.com
www.webhosting.com
www.addme.com
www.bcentral.com
www.searchenginewatch.com
www.promotionworld.com
www.smartage.com
www.virtualpromote.com
www.webknowhow.net
Chapter X
http://adres.internet.com
www.internet.com
http://angelfire.lycos.com
http://home.cnet.com
http://internet.com
www.internet.com
http://smallbusiness.yahoo.com
www.200sharewarelinks.com
www.aepublishing.com
www.all-biz.com
www.askjeeves.com
www.beyond.com
www.bizbuyer.com
www.bizoffice.com/library/library.htm
www.bizweb2000.com
www.clickit.com
www.elibrary.com
www.entrepeneur.com
www.eweekly.com
www.freewell.com
www.headlight.com
www.homebusinessmag.com
www.hoovers.com
www.insiderreports.com
www.ideacafe.com
www.ideasiteforbusiness.com
www.infojump.com
www.iwant.com
www.knowthis.com
www.marketingsource.com
www.mep.nist.gov
www.pathfinder.com/fortunesb/resources
www.pronetpreneur.com
www.sbba.com
www.smallbizhelp.net
www.smallbusinessresources.com
www.smalloffice.com
www.smartbiz.com/sbs/store.htm
www.startupuniversity.com
www.usadata.com
www.thewarriorgroup.com
Chapter Y
www.bigyellow.com
www.profitboost.com
Chapter Z
www.lifestylespub.com.
www.about.com
www.ad-itude.com
www.allbusiness.com
www.bizmove.com
www.bizweb2000.com
www.businessknowhow.com
www.buyerzone.com
http://aaecommercesolutions.com/subscrib.htm
www.elibrary.com ,
http://business.elibrary.com
www.ezineadsource.com
www.freetips.com
www.virtualpromote.com
www.insiderreports.com/forms/frmsubscribeezine.htm
www.netnetmoney.net
www.marketingtips.com/subscr.html
www.keysteps.com/TrafficBuilders/ezines.htm
www.jup.com/jupiter/digest
www.tqm-online.com
www.actionplan.com/flash.html
www.marketingsource.com
www.paloaltosoftware.com/newsletter.cfm
www.onelist.com
www.score.org/enews/
www.bizoffice.com/frame_index.html
www.ibm.com
www.tsbj.com
www.write101.com
www.wilsonweb.com/wmt
www.webpromote.com
www.gmarketing.com
www.emarketer.com/services/eservnewsl.html
www.ezineadsource.com
www.ezinecenter.com
www.meer.net/~johnl/e-zine-list
www.ezinesearch.com
www.ezinestoday.com/freesubs/freesubs1.htm
www.ecki.com/links/ezine.shtml
http://list-city.com
www.newsletteraccess.com
www.zinezone.com
http://kwilliams.hypermart.net/course.html

INTRODUCTION A B C D E F G H I J K L M N O P Q R S T U V W X Y Z LINKS
ADVERTISING
BOOKS & PREPARING A MARKETING
PLAN
CATALOGS
DIRECT MAIL & DIRECT MARKETING
EXPOS, TRADESHOWS &
CONVENTIONS
FUNDING & FINANCING YOUR
BUSINESS
GETTING STARTED - YOUR BUSINESS
PLAN
HATCHING YOUR PLAN
INFOMERCIALS
JOINT VENTURES & VENTURE CAPITAL
KNOW HOW
Legal: Copyrights, Trademarks & Patents
MASS MERCHANDISERS
NEWSPAPERS & MAGASINES
OUTDOOR ADVERTISING: SIGNS &
BILLBOARDS
PUBLICITY, PRESS RELEASES & THE PRESS
KIT
QUICK & QUALITY IDEAS THAT WORK
RADIO
SELLING & CLOSING THE SALE
VIDEO, TELEVISION & CABLE
WORLD WIDE WEB
xSITES
YELLOW PAGES
eZINES

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