Articles > Mail Order Business

Running a mail order business from the comfort of one's home is the dream of millions of people. Running a business through the mail appeals to people who are sick of their day jobs, want more independence in their lives, and who want to make large sums of money easily. Wouldn't it be nice if you could go to your mailbox everyday and find is stuffed with money and checks from all over the world?

It's possible, but be cautioned: mail order is definitely a risky business! For one thing, this is a realm that is definitely loaded with sharks ... that is, there are a lot of mail order rip-off artists out there who are always trying to get you to try their system, plan, method, or whatever. They always promise "huge sales! enormous profits! $10,000 per month easy!" and that sort of thing.

Well, just about all of it is false - but you knew that, right?

If you are going to get started in mail order, you should ignore all the wild claims that are everywhere, and stick to a simple marketing strategy based on buying wholesale, advertising and selling at a profit. You can choose just about any product imaginable, from books and cigars, to turtle eggs and leach farms. Just make sure you sell your products at a profit, and that you make enough to cover your advertising and other expenses.

Starting a mail order business does not have to be a complex task. You choose a product, place classified or small display ads in national magazines, and wait for people to call in with their orders. Once the order has been received and payment has been made, you ship the product and take the money to the bank. That's it in a nutshell.

There is also another way to sell other than buying ads. You can purchase mailing lists, which contain the the names and addresses of potential customers. You can buy lists from a number of places. There are list brokers, and you can also purchase lists directly from many magazine publishers, who derive names from their subscriptions lists. Once you have a list in hand, you will need sales materials, usually in the form of a sales letter, brochure, or something similar, to send to people. Your sales letter is what makes the pitch to the potential client. If the pitch is good enough, you will make good sales. If your pitch is not so good ... well, you'll be licking some pretty tough financial wounds.

While all this sounds easy, it is not quite as cut-and-dried as it seems. First of all, advertising is expensive. Even a tiny classified ad of less than 20 words can cost from $100 to $200, depending on where you place it. And no matter how large the circulation and how good the response, you will most likely need more than one classified ad to really get your business off the ground. In fact, you may need at least 10 ads, but 20 to 50 are much better. Anything less simply will not produce the response rate and cash flow you will need to make your operation viable. That means an upfront investment of about $1,000 in ads alone will be required.

On the other hand, it is true that just one classified ad can make you rich - but that is rare! Don't be fooled into thinking that one ad in one newspaper will make all your dreams come true. The odds of winning a jackpot in Las Vegas is probably more likely.

Instead of relying on "pie in the sky" claims and methods, go about your mail order business in a small and practical way. First of all, you should not only choose a good product, but also carefully match that product with a market that will be interested in it. If you try to sell rock CDs at a senior citizen's center will you have many sales? Not likely. But this is precisely the mistake that many mail order wannabe's make. They choose just any product and buy any ad in any paper and expect everything to match up perfectly. If you are selling high-tech gadgets, advertise in magazines

that targets the gadget oriented crowd.

The same goes for mailing lists. You should specify to a list broker exactly the kind of customer you are seeking - customers that have a high probability of being interested in your product.

There are many other things to consider in the mail order business. Who will be your wholesale supplier? How do you find good products to sell? How do you write a classified as that really pulls? Should you pay a professional copywriter to produce your ads and your sales copy? How do you test market an ad or product? Why do you need to test market? How do you handle sales taxes? What are the postal and government regulations, and how do you stay out of trouble?

As you can see, mail order is much more complex than is apparent from the outset. We tell you this not to discourage you, but to save you from being lured into the lair of the rip-off artists, who will tell you that making money in mail order is as easy as watching TV or reading a book. It isn't.

On the other hand, running a mail order business is an excellent and rewarding way to be self employed, if you do it the right way. Before you buy your first ad or choose your first product, do a lot of homework. Get yourself down to the library or local bookstore where you'll find dozens of good books on the subject of mail order. Once you start reading, you'll be hooked - and nothing makes for success like true enthusiasm for what you are doing.

Copyright 2004 by DeAnna Spencer

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