Mr. X answers your questions...
I've gotten a lot of questions from everyone, so I thought I'd take some time today to answer some. Some are quite good, some quite bad, and one or two, well... just plain UGLY!
Here we go:
Question #1:
Greetings Mr. X,
My question is involving those that are in the dreaded 'paycheck to paycheck' rut. In your experience what would be the best (in terms of financial obligations and risk) method to start in the information industry [assuming the person as a webfront of some kind - Domain Name, or otherwise {free site} ]
Affiliate Advertising for Commission
Get 5 or 10 good e-books on a certain topic and condense onto a CD or E-Book and resell that
Network Marketing
Or something I'm totally overlooking
Most the people I've talked to that despise working for someone else's wealth tell me that the #1 reason they do not branch off is because they either don't know how to start, or (more commonly) they don't know how to lay the bricks for the solid foundation. If one of these people would come to you and say "I have $500 that I'm ready and willing to invest in my future, just not sure which fork in the road to take." how would you respond to that person in regards to what has been said thus far in this message?
I thank you for your time and wish you have a truly wonderful day!
Sincerely,
Michael D.
Mr. X: Thanks for the great question, Michael. As I talked about in a previous email, most people make the mistake of getting a product and then trying to sell it. The right way to think about this is, "how can I build a list of customers/prospects who like me and want to buy things from me?" When you begin to think like this, it takes you in the direction of finding markets, then finding out what they respond to, creating a front end product to get them in the door, then finding other, relevant products to sell to them. For someone starting out, I'd recommend creating a lower cost e-book in a tested and proven category, with the idea of breaking even on the front end (the first sale to the customer), and then referring your customers to affiliate programs. That will give you some cash to invest in your education, and build a true multi-media information marketing business.
Stay away from network marketing--your income there is dependent on other people taking action, which is a bad place to be in.
For someone just starting out, with a small amount of money to spend, I'd recommend investing in one of Dan Kennedy's products, and getting familiar with the "big picture" of building an information business. I'll have more info on Dan's products tomorrow. Also, it's a good idea to pay attention to guys who already have a proven information marketing business--Michael Kimble, Corey Rudl, Yanik Silver, Matt Furey, John Alanis, Early to Rise, etc. Study what they do and look for commonalities.
Question #2:
Where do I find SRDS at? My library refuses to purchase this service. I live in a very conservative state. They are on a budget for other more important things, like newspapers and videos...you know, the important things in life. SRDS is around $500 or more. I am on a budget also...without the welfare that the library is sustained on. I am curious to hear your reply.
Mr. Teed Off
Mr. X: Gee, it's easier to get "teed off" than it is to take serious action and make something happen, isn't it? Let's see, let me think a bit, and come up with all the ways a person might find a copy of the SRDS:
1. Call another library anywhere in the country and see if they
have an old copy they'd be willing to sell you for cheap.
2. Look on Ebay (which I hate) and see if someone is auctioning one
off.
3. Join a discussion group on marketing and advertising (they're
all over the internet) and ask if someone has a copy you can get for cheap.
4. Call all the ad agencies in town and see if they have a copy
they could lend you, or sell you for cheap.
5. Go to a university library and use theirs.
6. Call the advertising department of any major university and see
if they have a copy they could let go for cheap.
Look, if you're going to let one library telling you "we don't have it" stop you from getting a copy of it, the probability of you succeeding in business is between slim and none. Business is all about solving problems, letting nothing stand in the way of your success. It literally took me 30 seconds to come up with those six ways to get one, and in 15 minutes I could probably come up with 20, any one of which may get me my result. If you want to succeed in anything you have to ask yourself, "How can I get the result I want?" instead of what most people tell themselves, "I can't do this because...." Switch the two statements and you'll eventually get the results you want.
Question #3:
Hi there. I'm not sure if this is the correct place to ask this question but here goes. My question concerns the money back guarantee's usually given for marketed products. What percent of people return the product and ask for their money back and how is that accounted for in the accounting books? I have been contemplating entering the mail order/internet information marketing business and have been thinking about this question. I would just like to know roughly how much of the sales I would have to hold for returns/refunds. I would appreciate it if you could give me an answer.
Thanks!
Jon P.
Mr. X: Thanks for the question Jon. The truth is, the "return rate" depends on the market and the product. If you have a crappy product, the return rate can be high, and I'd tell you to find another product. However, you can have a great product, but if you sell it to a crappy market (freeloaders, whiners, etc.) that has a history of returning a product, it can be high as well. What you want is a highly responsive market, and a great product to sell it to. Also, returns will be higher on the "front end" (the first sale of a product to a customer) than on the back end (sales of other products to existing customers) because you don't yet have a relationship with the front end customer.
The truth, though, is not to get caught up in the "return rate," but to simply factor it in to your business from the beginning, and adjust pricing, margins, etc., as you go along. In fact, your return rate can actually be too low--if you're not getting any returns, your sales message isn't strong enough and you're missing out on people who would buy from a stronger message.
In one online business I run, the return rate is right at 4%, in another business I consult for, right at 11%. I have a friend with a very large mail order business whose return rate is 20%. Each of these businesses is profitable and healthy because the return rate is factored into the overall economics. Also, keep in mind all of these business instantly honor refund requests, and I'd recommend you do the same.
Let's get to it...
Mr. X.
Group M Marketing
Kimble and Kennedy Publishing
Here we go:
Question #1:
Greetings Mr. X,
My question is involving those that are in the dreaded 'paycheck to paycheck' rut. In your experience what would be the best (in terms of financial obligations and risk) method to start in the information industry [assuming the person as a webfront of some kind - Domain Name, or otherwise {free site} ]
Affiliate Advertising for Commission
Get 5 or 10 good e-books on a certain topic and condense onto a CD or E-Book and resell that
Network Marketing
Or something I'm totally overlooking
Most the people I've talked to that despise working for someone else's wealth tell me that the #1 reason they do not branch off is because they either don't know how to start, or (more commonly) they don't know how to lay the bricks for the solid foundation. If one of these people would come to you and say "I have $500 that I'm ready and willing to invest in my future, just not sure which fork in the road to take." how would you respond to that person in regards to what has been said thus far in this message?
I thank you for your time and wish you have a truly wonderful day!
Sincerely,
Michael D.
Mr. X: Thanks for the great question, Michael. As I talked about in a previous email, most people make the mistake of getting a product and then trying to sell it. The right way to think about this is, "how can I build a list of customers/prospects who like me and want to buy things from me?" When you begin to think like this, it takes you in the direction of finding markets, then finding out what they respond to, creating a front end product to get them in the door, then finding other, relevant products to sell to them. For someone starting out, I'd recommend creating a lower cost e-book in a tested and proven category, with the idea of breaking even on the front end (the first sale to the customer), and then referring your customers to affiliate programs. That will give you some cash to invest in your education, and build a true multi-media information marketing business.
Stay away from network marketing--your income there is dependent on other people taking action, which is a bad place to be in.
For someone just starting out, with a small amount of money to spend, I'd recommend investing in one of Dan Kennedy's products, and getting familiar with the "big picture" of building an information business. I'll have more info on Dan's products tomorrow. Also, it's a good idea to pay attention to guys who already have a proven information marketing business--Michael Kimble, Corey Rudl, Yanik Silver, Matt Furey, John Alanis, Early to Rise, etc. Study what they do and look for commonalities.
Question #2:
Where do I find SRDS at? My library refuses to purchase this service. I live in a very conservative state. They are on a budget for other more important things, like newspapers and videos...you know, the important things in life. SRDS is around $500 or more. I am on a budget also...without the welfare that the library is sustained on. I am curious to hear your reply.
Mr. Teed Off
Mr. X: Gee, it's easier to get "teed off" than it is to take serious action and make something happen, isn't it? Let's see, let me think a bit, and come up with all the ways a person might find a copy of the SRDS:
1. Call another library anywhere in the country and see if they
have an old copy they'd be willing to sell you for cheap.
2. Look on Ebay (which I hate) and see if someone is auctioning one
off.
3. Join a discussion group on marketing and advertising (they're
all over the internet) and ask if someone has a copy you can get for cheap.
4. Call all the ad agencies in town and see if they have a copy
they could lend you, or sell you for cheap.
5. Go to a university library and use theirs.
6. Call the advertising department of any major university and see
if they have a copy they could let go for cheap.
Look, if you're going to let one library telling you "we don't have it" stop you from getting a copy of it, the probability of you succeeding in business is between slim and none. Business is all about solving problems, letting nothing stand in the way of your success. It literally took me 30 seconds to come up with those six ways to get one, and in 15 minutes I could probably come up with 20, any one of which may get me my result. If you want to succeed in anything you have to ask yourself, "How can I get the result I want?" instead of what most people tell themselves, "I can't do this because...." Switch the two statements and you'll eventually get the results you want.
Question #3:
Hi there. I'm not sure if this is the correct place to ask this question but here goes. My question concerns the money back guarantee's usually given for marketed products. What percent of people return the product and ask for their money back and how is that accounted for in the accounting books? I have been contemplating entering the mail order/internet information marketing business and have been thinking about this question. I would just like to know roughly how much of the sales I would have to hold for returns/refunds. I would appreciate it if you could give me an answer.
Thanks!
Jon P.
Mr. X: Thanks for the question Jon. The truth is, the "return rate" depends on the market and the product. If you have a crappy product, the return rate can be high, and I'd tell you to find another product. However, you can have a great product, but if you sell it to a crappy market (freeloaders, whiners, etc.) that has a history of returning a product, it can be high as well. What you want is a highly responsive market, and a great product to sell it to. Also, returns will be higher on the "front end" (the first sale of a product to a customer) than on the back end (sales of other products to existing customers) because you don't yet have a relationship with the front end customer.
The truth, though, is not to get caught up in the "return rate," but to simply factor it in to your business from the beginning, and adjust pricing, margins, etc., as you go along. In fact, your return rate can actually be too low--if you're not getting any returns, your sales message isn't strong enough and you're missing out on people who would buy from a stronger message.
In one online business I run, the return rate is right at 4%, in another business I consult for, right at 11%. I have a friend with a very large mail order business whose return rate is 20%. Each of these businesses is profitable and healthy because the return rate is factored into the overall economics. Also, keep in mind all of these business instantly honor refund requests, and I'd recommend you do the same.
Let's get to it...
Mr. X.
Group M Marketing
Kimble and Kennedy Publishing
