Dear Early to Riser,

Last time we ran Clayton Makepeace in ETR, Michael Masterson told me his article was so good, he wished he'd written it himself!

Clayton's done it again. Today, he'll show you how to increase response to your ads by up to 45%.

- Charlie Byrne
ETR Editorial Director

www.earlytorise.com
Wednesday, March 1, 2006
Message #1665

WEALTHY: An upside that's hard to ignore
HEALTHY: Syndrome X? What's that?

WISE: David Ogilvy on headlines

ALSO IN THIS ISSUE:

The most important element of your sales pitch (Clayton Makepeace)
Confessions of an aging music fan (Michael Masterson)
Are you using these 2 words the right way?

* Highly Recommended *

Highly Recommended – Start Making Money Today

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- Charlie Byrne

A Bargain Stock Isn't Always a Bargain

Everyone loves a bargain … shoes 30% off, books marked down 20%, Valentine's Day candy half-price on February 15th.

But would you buy something more valuable at an even steeper discount? If you saw a diamond necklace selling for 90% off – would you think it was a steal? Or would you wonder if it's a fake? Or flawed? Or (the greatest sin of all!) so ugly no one else wants it?

Well, a recent study published in a mutual funds newsletter says you should approach stocks with the same mindset.

The study was based on the price to earnings (P/E) ratios of stocks. After looking at three groups of stocks – with P/Es below 15, between 15 and 19, and above 19 – the study found that while the average returns of the first two groups were almost the same, the lowest returns by far came from the expensive third group. Its average returns – at 5.5% – were about a quarter of the less-expensive groups' 19.5% returns.

And the probability of negative returns was 46% for the most expensive group compared to the 14%-17% of the two other groups. Not surprisingly, the group with the lowest P/E had the lowest probability of negative returns.

The risk of investing in expensive companies is hard to ignore. And you don't even enjoy a higher upside for taking on the extra risk. The highest returns you get from investing in the most expensive group are slightly lower than what you would get from investing in the least expensive group. This was the only bit of the study that was mildly surprising to me.

Of course, this is just one study and it evaluated returns from holding stocks for only two years or less. But it does bring out an important point that I can't emphasize enough: Because of their low prices and low valuations, "value" stocks not only have less distance to drop but more distance to climb in order to grow into "normal" valuations. In other words, value investing makes it much easier to buy low and sell high.

- Andrew Gordon

[Ed. Note: Andrew M. Gordon and his staff, along with Dr. Erik Epp have created a new free weekly eletter called Money Insight: Useful Ideas  For Growing Your Money Quickly and Safely…” In this age of cheap “information” Money Insight strives to decipher the best safe-money strategies from the deluge of mainstream financial news, as well as uncover undervalued opportunities for quick profits. Check it out at:

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"The headline is the 'ticket on the meat.' Use it to flag down readers who are prospects for the kind of product you are advertising."

- David Ogilvy

Creating a Power-Packed Headline

By Clayton Makepeace

Every part of your sales message is important. Your opening is crucial. Your presentation of product benefits … of proof and credibility elements … of the offer and premiums … of your guarantee … and of your closing "ask-for-the-sale" copy are all critical.

But of all the things you do to produce a sale, nothing equals your headline when it comes to pushing response through the roof. In my 33 years in this business, I've seen great new headlines produce 25%, 35%, even 45% lifts in response and ROI.

Why are heads so important? Two reasons:

First, your headline is the demurely raised eyebrow … the whisper in the ear … the tap on the shoulder … or the shrieking air raid horn (remember those?) that makes it impossible for your prospect to look at anyone but you. (More precisely, at anyone's ad but yours.)

Second, your headline is the gateway to your sales copy. It is what persuades your prospect to read your sales message.

When you study the most effective headlines ever written, you can't help but notice that they accomplish these twin tasks by offering the reader a BRIBE – a strong benefit in exchange for reading the sales message.

Whether explicit or implicit, shouted or whispered, the best heads you'll ever read – or write – will be a proposed transaction: "Read this … and this very specific, very wonderful thing will happen for you."

Allow me to show you three of the most powerful headline techniques ever – approaches that have produced huge winners for the big shots (and, yes, for me too).

1. Pure benefit headlines present only the primary practical benefit offered by the product.

"Who else wants a whiter wash
- with no hard work?"

Once upon a time, pure benefit headlines were all the rage. And they worked. But today's prospects are being offered identical benefits by dozens, scores, or hundreds of competing advertisers.

Unless the benefit you're offering is truly unique – or presented in a very unique and intriguing way – you'll need to do more than just present or imply a benefit.

Here's how John Carlton turned a benefit head into something absolutely unique, and made his ad a must-read:

"Amazing Secret Discovered by One-Legged Golfer
Adds 50 Yards to Your Drives, Eliminates Hooks and Slices
… and Can Slash Up to 10 Strokes From Your Game Almost Overnight"

2. Pure emotion heads directly address the emotional need, frustration, or fear that the product's primary benefit addresses – only hinting at the practical benefit.

"Tell The 'Health Police' To Take A Flying Leap –
And Return To Life's GUILTIEST PLEASURES!"

Pure emotion heads have worked very well for me. But ONLY when they are followed immediately with a strong presentation of the benefits that are being promised.
3. Combined benefit/emotion heads present the product's chief benefit and either imply or state the emotional payoff for the reader.

"Laugh All The Way To The Gas Pump!
How rising gas prices can make you up to 307% richer in 2006"

Regardless of whether your headline is pure benefit, pure emotion, or a combination of the two, there are dozens of ways to give it greater selling power.
Here are a few …

Present a proposition: Great propositions make a statement that the reader already believes and tantalize him with the implications of that statement.

 "For every illness, there is a country
where it simply doesn't exist …"

Propose a transaction: Transaction heads add credibility to your promised benefit by disclosing that you're asking something from the reader in return.

 "Read This Now …
Or Kiss Your Money GOODBYE!"

Use specificity to create credibility: Include specific facts or connect your headline to a current news event.

"1,384 'ENRONS' Are Now
Racing Toward BANKRUPTCY"

Get the prospect's natural curiosity working for you: Intrigue and curiosity heads tease the benefit or begin the conversation by telling a fascinating story.

 "How I Made a Fortune With a Fool Idea"

Try this. Sit down with a headline you're working on now and ask yourself these six questions:

1. Does your headline offer the reader a reward for reading your sales copy?

2. What specifics could you add to make your headline more intriguing and believable?

3. Does your headline trigger a strong, actionable emotion the reader already has about the subject at hand?

4. Does your headline present a proposition that will instantly get your prospect nodding his or her head?

5. Could your headline benefit from the inclusion of a proposed transaction?

6. Could you add an element of intrigue to drive the prospect into your opening copy?

Spend 15 minutes on it … and I'll bet you come up with something great!

[Ed. Note: Clayton Makepeace offers help in reaping maximum profits through the Internet, direct mail, and print advertising every week in his e-zine The Total Package. Learn 177 of his surprising secrets that have doubled his clients' profits in a year and quadrupled them in 36 months in his newly published e-book "Double Your Profits in 12 Months or Less!"

http://www.makepeacetotalpackage.com]

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Today's Action Plan

March 1st. This is the perfect day to take a hard look at your 2006 marketing campaign to make sure it's as strong as possible. Start, today, by using Clayton Makepeace's suggestions to improve the headline of your best sales letter or ad.

Reader Feedback: "The most useful collection of tips I've found in any book"

"I just finished Michael Masterson's Power & Persuasion. I found the most useful and practically important collection of tips I've found in any book. It's very strong, confident, and direct … cutting through the 90% junk advice that doesn't matter.

"I've learned a lot of things I will use right away. (I still have 3 hours before I have to be at the office to see patients this morning.)"

Dr. Al Sears

The Biggest Health Risk You (Probably) Never Heard of

Have you heard of Syndrome X? Most people haven't. And yet it's one of the most devastating epidemics we've ever faced. The condition was identified in 1968 by Dr. Gerald Reaven of Stanford, and there are estimates that as many as 75 million Americans suffer from it. Perhaps most alarming is that in the last decade, the incidence among those in their 30s has increased by 70%.

The primary characteristic of Syndrome X (also known as Metabolic Syndrome) is insulin resistance. Insulin is the hormone your body uses to escort glucose from the bloodstream into the fat and muscle cells to be used as fuel. When you are "insulin resistant," these cells respond weakly, causing glucose to remain in the bloodstream and the pancreas to continue producing insulin. This chronic excess of glucose and insulin wreaks havoc on your tissues and organs, dramatically accelerating the aging process and giving rise to a host of worrisome conditions.

The online encyclopedia Wikipedia references five criteria associated with Syndrome X:

Waist circumference greater than 40 inches for men / 35 inches for women

High blood pressure (130/85 or more)

High fasting blood sugar (110 mg/dL or above)

Elevated triglycerides (150 mg/dL or above)

Low levels of HDL ("good") cholesterol – 40 mg/dL or lower for men / 50 mg/dL or lower for women

There are some variations, but the general consensus in the medical community is that three or more of these symptoms define Syndrome X and increase a person's risk of Type-2 diabetes, heart disease, stroke, and cancer. The good news is, this condition can be reversed. Tomorrow, I'll tell you about the defensive measures you can take.

- Jon Herring

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Saving For Retirement? The Picture Is Grim For Many…But Not All

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Notes From Michael Masterson's Journal: A Lesson in Music Appreciation

One thing a mentor will do for you is prepare you before they occur for things that will change your life. My father did a good job of this healthwise. He documented his physical tribulations so that I could see – 30 years ahead of time – what pains and aches life held for me.

What he didn't tell me about was the change that takes place in the area of your brain that controls your tastes – your appreciation of music, for example.

This morning, after weeks of tinkering with the idea, I set my satellite music channel to "Easy Listening."

I never thought this would happen to me. I have had a very sophisticated anti-elevator-music upbringing. I was listening to Chuck Berry and Duke Ellington before I had hair on my chin. I loved rock 'n' roll, rhythm and blues, etc.

And, yes, there was some progression. I came to like, even prefer, "classical" music and then opera.

About five years ago, though, I had my first run-in with "the other side." I found myself listening, every once in a while on the car radio, to country music. It was twangy and obvious, but the sentiments seemed true. And what's wrong with that?

Then, three years ago, TG got me to a Jimmy Buffet concert. K never forgave him for that. On Sunday mornings now, if I get up before she does, we listen to Jimmy Buffett rather than jazz.

And now this …

Don't get me wrong. I won't do it again. Not, at least, for another five years. But I can feel it coming. Easy-listening music does seem to calm me down, smooth out the rough edges.

And maybe I'm wrong about music anyway. Maybe this is the sum of all music, not the void. Maybe it's like the color white, containing everything.
I'll find out soon enough.

Word
to the Wise: Healthy vs. Healthful

Don't make the mistake of saying "healthy" when you mean "healthful" … or "healthful" when you mean "healthy." These two words are not interchangeable.

Use "healthy" when you're talking about a person or animal. Use "healthful" when you're talking about a food or climate.

Michael
Masterson
Copyright ETR, LLC, 2006

Have a Question for Michael Masterson?

Want to know the secrets to his success? Have a perplexing business problem? ETR welcomes your thoughts. Post them online at  http://speakoutforum.com/forum/

or send questions directly to Support@EarlyToRise.Com

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This entry was posted on Wednesday, March 1st, 2006 at 1:47 pm and is filed under Daily Issues .