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When you select a product, your choice should be based upon your
knowledge of
how and to whom you're going to sell it. You may have the
greatest bargain in the world, but it will be of no value to you if you
don't know who's going to buy it, or how you are going to get the
word out about it.
The first rule to achievement of a fortune is to produce or buy your
product for
pennies and sell for dollars. So after preliminary market research
to determine who will
buy your product, the next question to answer is: How much will
the majority of this
market be willing to pay for your product?
For the sake of our discussion, let's say that you've written a "How-To"
manual on
how to make $100,000 a year compiling and selling mailing lists.
You check with a
number of printers and get a production cost of $l.50 per book in lots
of 1,000. You
figure that with sharp advertising, you can -sell a million of these
books at $10 per copy,
but that advertising will cost you $1.50 per book. Thus far, the
basic cost of your book is $3 per copy.
Even though you will probably be the one selling most of your books, you
must
realize that it will take you an awfully long time to move out a million
copies of this book.
It will keep you busy 25 hours a day, 8 days a week to do it all by
yourself. So the thing
to do is recruit as many other people as you can to help do the selling.
This means setting up a dealer distributor network.
To do this, you must make it worthwhile for other people to sell your
product.
You offer a percentage of the sales price on each book they sell for
you. Generally, this is about 50% for each single copy sold; 60%
when purchased in quantity lots of 25 to 99
copies; and 75% when purchased in lots of 100 copies or more. The
important thing is to
shave your profits to a minimum when you have other people doing the
work for you.
Let's use, then, our example of a $10 book that costs you $1.50 to
produce in lots
of 1,000. For people who buy from you in lots of 100 copies, you
could cut your profit to
$l per book, sell it to them for $2.50 per book, and let them do all the
advertising, as well
as the selling. Don't offer more than 50% on single copy dropship
sales, because you'll
have to furnish this type of dealer with selling materials, and continue
to do most of the
advertising yourself.
Setting up your distributor program will require advertising and a sales
kit for the
sellers. Thus, you should make up a series of "Dealers Wanted" ads
and place them in as
many different publications as you can.
The national "opportunity" magazines are the best place to place your
advertising
for dealers. Remember, the ad should be a call for dealers,
distributors and independent
extra income seekers. Do not try to sell your product in this ad.
Use it only to enlist or
recruit people to sell for you. Remember too, the more you run
your dealers wanted ad,
and the more different publications you run it in, the more people
you'll get to sell your
product for you. The easiest way to go is with "Dealers Wanted"
advertisements in as
many worldwide publications as possible.
You'll lose your shirt attempting to recruit sales people via direct
mail, and you'll
never make any headway with just a "Dealers Wanted insert" in each book
you sell. If you want sales people, you must advertise for them.
To actually get these interested opportunity seekers to sell your
product for you,
you'll need a dynamic sales letter and seller's kit to send out in
response to the replies to
your advertising. This kind of sales letter is usually four pages
in length, printed on 11 by
17 inch paper, and then folded in half, book style. But if it
takes 10 or more pages to sell
the prospect on the idea of selling for you, use the amount of space and
paper that's
necessary.
In addition to your sales letter, you should have at least three
camera-ready ads the
opportunity seeker can use to advertise your product. These should
include a classified
ad, a one-inch display ad, and a larger 2-column by 3-inch ad with blank
spaces for him to insert his own name and address. You should also
include at least one full-page camera ready circular he can use as an
"original" in ordering printing of his own direct mail
circulars.
If you've written your sales letter properly, that's all there is to it.
Some people
charge an "up-front" dealers registration fee. We don't recommend
this, for a number of
reasons - mainly because it immediately eliminates a great many people
who might want to at least try to sell the product for you, but are not
willing to "pay" to sell for you.
Some sellers charge $1 to $5 for details and complete dealership set-up
to offset
the cost of the initial seller's kit and postage. This is what we
recommend at the start. If you offer you program for nothing, you'll get
as many responses from curiosity seekers
and opportunity collectors as from bona fide prospects.
If you charge for the dealership set-up, you should include a sample of
your
product. For the more elaborate sales kits and expensive products,
most people ask for a deposit, which is refunded after a certain number
of sales are made by t he dealer. Any charges more than $5 should
not be mentioned in your "Dealers Wanted" advertisements, but held over
and fully explained in your sales letter.
This is how you set up a dealer/distributor network: Get other
people to sell your
product for you! You can, and should be prepared from the start,
before you place your
first dealers wanted ad, and proceed only as you can afford the
advertising costs from the profits of sales of your product.
It's simple, and it's easy, and, it can make you rich! You had to
have real interest
to have ordered this report. We hope that it has motivated you
with the entrepreneurial
spirit, and that you act on it!
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