Issue #2007
- WEALTHY: Find a winning stock with a "glance" (Charles Delvalle)
- HEALTHY: Why you should call me Martha from now on (Jon Herring)
- WISE: Paul Valery on being a businessman
ALSO IN THIS ISSUE:
- How a simple calculator can save your business (Bob Bly)
- Not all that bubbles is Champagne (Michael Masterson)
- It’s Good to Know… about your Social Security number
- Add "adduce" to your vocabulary
How to Write a Winning Sales Letter
Is it possible to go from a blank sheet of paper to a completed sales letter in 48 hours? There’s a good chance… if you use what’s called the Filet of Soul technique.
You start with the most successful promotion that your company (or your competitor) is running for a similar product. No, you don’t steal the copy – you "filet" it, cutting down to it’s backbone… the "architecture" that makes it work.
Analyze the copy, section by section. What emotions does it evoke? How does each paragraph make you feel? Write it all down… and that’s it. You now have a rough outline for your own successful sales letter!
I discovered this technique in the "75 Secrets for Writing Winning Copy" report included with ETR’s Direct Marketing University program. I keep it on my desk, right next to my computer, so it’s always handy whenever I need a fresh shot of inspiration.
- Patrick Coffey
Discover the Next Hot Market
By Charles Delvalle
When you invest in a "hot" market, you have a better chance of buying into a stock that will make you money. So how can you tell which markets are hot? By viewing the Major Industry Groups candle scans at Stockcharts.com. This tool lets you compare 26 different indexes that cover all the different market sectors, including Natural Gas, Computer Hardware, and Oil Services.
To use it, go to the Stockcharts website and look for Candle Glance Groups on the left-hand side. Once there, you’ll see two predefined scans: Major Industry Groups 1 and 2. Click on either of them to instantly view the way various sectors are performing.
Had you been using this tool regularly, you would have discovered, for example, that Oil Services has made one of the strongest rebounds among the 26 sectors after the late-February/early-March correction. Since that means the Oil Services sector is one of the strongest-growing sectors in the market right now, it makes sense for you to look for a company within that sector to invest in. Of course, you need to do some checking to make sure the market forces driving this sector aren’t going to disappear overnight.
[Ed. Note: Charles Delvalle is a contributing editor to ETR’s Investor’s Daily Edge newsletter, and a regular contributor to INCOME,
ETR’s new investment service. INCOME lets you in on the safest high-dividend-paying companies, with the goal of providing you with a total return (dividends plus capital gains) of at least 14 percent per year. In recent weeks, Andy locked in gains of 38, 28, 24, 21, and 18 percent.]
"A businessman is a hybrid of a dancer and a calculator."
Paul Valery
The Most Important Piece of Equipment Any Marketer Can Own
By Bob Bly
What’s the most important piece of office equipment any marketer can own?
It’s not a color printer… or even a PC.
It’s a pocket calculator.
Costs only a few bucks to buy one, yet many marketers I speak to seem either not to own one… or, if do they own one, they don’t use it.
Here’s what leads me to this conclusion…
At least once a week, I get a call or e-mail that goes something like this:
"Bob, my name is John Q. Public. I’ve self-published a terrific book, and I want you to write a direct-mail package to help me sell it. What do you charge?"
After I ask a few questions, I find out what I need to know…
The book has a cover price of $15… John printed 3,000 copies at a short-run book printer for $3 a copy… and, therefore, his net per copy is $12 each.
I tell John to forget it, because he’ll never make money selling that book with a direct-mail campaign.
John is shocked. He spent nine grand of his kid’s college fund printing those 3,000 books. They are cluttering his spare bedroom. His wife wants them out of the house.
Bookstores have no interest in carrying John’s self-published book. Newspapers aren’t reviewing it. He was counting on direct mail to make him rich and famous. And here I am, crushing his hopes and dreams.
"Why can’t you write a direct-mail package to sell this book?" John wants to know.
"Do the math," I urge John.
I get out a calculator and do it for him. And here’s what we find…
His net revenue is just $12 per book.
To do a small test of a traditional direct-mail package – outer envelope, sales letter, flier, order form, reply envelope – could cost him $600 per thousand or more.
Let’s say he tests a thousand pieces. At a cost of $600, he needs to sell 50 books just to break even. That’s a response rate of five percent – very difficult to achieve with a rented mailing list.
To double his money on the mailing and make a profit of $600 on every thousand pieces mailed, he’d have to sell 100 books. That’d mean a 10 percent response to his mailer – almost impossible.
I explain all this to John. He becomes more depressed with every word. I’m not telling him what he wants to hear.
"Don’t worry," I tell John. "There are dozens of marketing consultants and copywriters out there who will tell you it can work – and they’ll be happy to take your money and write a promotion for you."
But that doesn’t matter. Because the numbers say that, no matter how great the direct-mail copy is, the promotion won’t make money.
John didn’t need me to tell him that. He could have determined it for himself by using the most powerful tool a marketer can own: a pocket calculator.
The problem with many marketers – especially entrepreneurs – is that they are "idea people," dreamers who think big. Unfortunately, the idea of marketing is not just to innovate… or be creative… or have great ideas… or create really nifty products and services.
It’s to sell your products and services at a profit.
And to be an effective marketer, you have to know a few numbers – like product pricing… cost of goods… profit margins… typical response rates… cost per thousand.
You then get out your calculator. And, based on those numbers, you can quickly determine whether your idea can fly – or is doomed to lose money.
(By the way, while it’s not difficult to calculate the response rate needed to break even on your direct-mail campaign, I don’t have space to show you the simple formulas here. So I’ve created a free online calculator you can use at dmresponsecalculator.com.)
In John’s case, even if his book sold for $40, I still would have discouraged him. That’s because the profits in direct marketing are mostly in the "back end" – repeat sales to customers who buy an initial product from you.
But as a self-publisher who has only one product – his single self-published book – John has no back end. And, therefore, no viable business.
[Ed. Note: Get Bob Bly's insights into marketing your business quickly, cheaply, and easily with ETR's Direct Marketing Masters Edition.]
Warning! Brace Yourself and Your Wealth for a Whole New Wave of Housing Hurt
The "Second Wave" housing tsunami of 2007-2011 is on the horizon. From Wall Street to Main Street, nobody’s money is safe.
I can give you three very simple, very safe ways to hedge your investments against this coming mega-bust. I’ll even pay you up to $307 to look the plan over. Click here to learn more
Reader Feedback: "You have given me a valuable gift."
"Bob Bly’s article on the ‘Green Sheet’ tactic for seminars was outstanding! You have given me a valuable gift.
"I have been hectoring my loan officer associates in banking that they are not ‘bankers’ or ‘loan officers’; they are salespeople. When someone asks me what I do for a living, I tell them, ‘Well, I work for a bank, but I am in sales.’ Sometimes I just say, ‘I’m in sales,’ but that normally doesn’t lead to a follow-up reaction as opposed to the former response.
"In fact, if you want to be successful in business, you should consider that you are always ‘in sales,’ no matter what your title. Sell your company, sell your service, sell your product, sell yourself."
- Warren Sandberg
Annapolis, MD
[Ed. Note: How has reading ETR helped you - maybe even changed your life? Send your comments to ReaderFeedback@gmail.com. Include your name and hometown... and we may print your e-mail in a future issue.]
A Healthy Meal You Can Prepare in 10 Minutes
By Jon Herring
Yesterday, I suggested that you start buying canned wild Alaskan salmon. Not only is this fish free of harmful pollutants, it is also inexpensive, high in omega-3s, rich in protein… and it tastes great. Plus, it’s an excellent substitute for tuna, which can be high in mercury. My fiancee and I eat a couple of cans of salmon just about every week for lunch.
I like to eat it right from the can, but most people prefer it the way Kelley prepares it… like you would make a tuna salad, with diced celery, onions, and mayonnaise. Another one of our favorite canned salmon dishes is salmon cakes… which are a cinch to make.
Here’s what you do: Empty one or two cans of wild Alaskan salmon into a bowl. Add one or two eggs and a tablespoon or two of bread crumbs or crumbled crackers. Mix everything together and shape into patties. Saute in butter or coconut oil and serve with a wedge of lemon.
From start to finish, this takes less than 10 minutes. These salmon cakes are healthy, fast, and delicious… and can be served for lunch with a salad or for dinner with a side of vegetables. (Move over, Martha Stewart!)
Living Rich: Starting Your Wine Collection, Part 4 – Sparkling Wines
By Michael Masterson
Champagne is the king of sparkling wines, everyone agrees. Everyone but me, that is. I much prefer a Prosecco from Italy because of my inclination toward light and dry whites. But if you like Chardonnay, you may well enjoy the heavier, more aromatic taste of Champagne… and you should indulge yourself.
Because of the increasing popularity of Champagne, sparkling wines from other areas (only a sparkling white from the Champagne region of France can legitimately be called Champagne) have been appearing in wine stores and on some menus. These would include:
- Burgundies (Cremant de Bourgogne) and sparklers from the Loire (Cremant de la Loire) and Alsace (Cremant d’Alsace) in France
- Sparkling whites from Lombardy, Trentino, and Piedmont in Northern Italy
- Many solid sparkling whites from reliable climates like California and Australia
- Cava from Spain
Here are a few specific sparkling wines to consider. (I recommend keeping 5 to 10 bottles on hand, depending on how often you party.) All of these recommendations have a Wine Spectator ranking of 85 or above. Price estimates come from local and online stores and Wine Spectator.
- Heidsieck Monopole Brut Champagne Blue Top NV ($30)
- Montaudon Brut Champagne ($17)
- Lucien Albrecht Brut Blanc Cremant de Alsace ($20)
- Caves de Bailly Pinot Noir Cremant de Bourgogne Bailly-Lapierre ($20)
- Mumm Napa Brut Napa Valley Prestige NV ($18)
- Iron Horse Brut Sonoma County Green Valley Classic Vintage 2001 ($30)
- Zardetto Congeliano Prosecco Brut NV ($12)
- Codorniu Brut Cava NV ($10)
[Ed. Note: For more about starting your own wine collection, read Michael's article "A Start Up Collection for New Wine Collectors."
And learn how you can be part of an exclusive group of 25 to 50 ambitious businesspeople that Michael will be leading through an elite 5-day program that can help you dramatically increase the profitability of your business here.]
It’s Good to Know: About Your Social Security Number
Ever wonder what happens to your Social Security number when you’ve left this earth for a higher plane? According to John Clark, the regional public affairs officer of the Social Security Administration, you and your SS ID will spend eternity together.
Just like your fingerprints and DNA, Clark says that "each [Social Security] number remains as unique as the individual it was first assigned to."
Since the first SSN was issued in 1936, 420 million have been issued. And because there are nine-digits in a Social Security number, that allows for nearly one billion possible combinations – which means it will be a lo-o-o-n-g time before we have to worry about running out.
(Source: Do Penguins Have Knees? by David Feldman)
Learn how to "Hotwire” the Internet for fast and furious profits…
These days, it seems like everyone’s getting bogged down with all the technical jargon and being intimidated by the internet… and rightly so, because doing things the way all the ‘experts’ say is a real headache!
This system assumes you have absolutely no previous knowledge about making money from the internet nor any previous knowledge about computers.
Discover that much needed extra bit of breathing space and peace of mind an extra grand or two here and there can give you today. Read about it here…
- Patrick Coffey
Word to the Wise: Adduce
To "adduce" (uh-DOOS) – from the Latin for "to bring to" – is to cite as a means of proof in an argument.
Example (from a Booklist review by Roy Olson of How Doctors Think): "By far the largest number of examples New Yorker staff writer and Harvard physician [Jerome] Groopman adduces to show how doctors think shows them thinking well for the good of their patients."
[Ed. Note: Become a more persuasive writer and speaker ... build your self-confidence and intellect ... increase your attractiveness to others ... just by spending 10 VERY enjoyable minutes a day with ETR's new Words to the Wise CD Library.]
Michael Masterson
Copyright ETR, LLC, 2007
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