THE LEGITIMATE SCAM

After spending the last 2 months talking to people who don’t know anything about “our” type of mail order, I found it evident that every one of them was introduced to mail order through “The Legitimate Scam!” What is this scam and why can’t it be stopped? Basically, because it IS a legitimate scam!

Now come on Victoria, who ever heard of a legitimate scam?

EXAMPLE 1:  Collect names for us. We pay $20 each. Guaranteed!

The truth is this company WILL pay you $20 for each name you collect for them. What they DON’T tell you is that each person has to spend $100 or more by placing an order before you get your $20.

The beginner is led to believe that all they have to do is get out their phone books and start sending the company names and addresses. In return, the company will send them $20 for each name and address they send them.

When they send away for the details they discover the “Legitimate Scam” and think everybody in mail order is operating this way. Result: Mail order is labeled as a scam and illegal business activity.

Here’s another example:

EXAMPLE 2:  How to flood your mailbox with $1 bills. Just send $1 for information.

To the seasoned pro, he or she can recognize this scam as very obvious — but to the beginner it’s very intriguing. Besides, it only costs $1 to find out.

What the beginner finds out is that they are expected to run the same ad in newspapers and tabloids. Other people will send $1 for information and their mailbox is “supposedly” flooded with $1 bills. This ad is NOT illegal. It asks you to send $1 for information and you DO get the information.

These types of ads are all a bunch of paper-passing — and I classify them under the heading of a “Legitimate Scam.” You can’t complain that your order was not filled. You can’t complain the idea is not possible. You can’t complain the ad promised something it didn’t deliver.

Around 1965 a guy ran an ad in 1,000′s of national magazines that said: “How to make $10,000 a year. Send $1 for the complete answer.” A co-worker I knew responded to the ad and in return received a piece of paper that said: “Get a job.”

So friends, if this type of activity has been going on since 1965 — and I suspect it really started in the Garden of Eden, why do you think we can put an end to it today?

However — don’t confuse the “Legitimate Scam” with “Lead-Generating Ads.” A mail order buddy of mine will run an ad that states: “Want to make a lot of money? Call (his telephone number.)” This is NOT necessarily a scam or rip-off. Since there is no cost involved — it might be worth your time and effort to call the number and see what this dealer has to offer.

Also, some dealers run ads that don’t tell you what the product is because they have an entire package of information they want to send you. It would be too costly to advertise the complete information in a small 1″ or 2″ ad, so they run “Lead-Generating Ads” to bring them inquiries. This is also NOT illegal and is common business practice. You’ll also find that real “Lead-Generating Ads” DON’T ask you for a lot of money up front. They only tell you enough about the product to entice you to send in a SASE (self-addressed stamped envelope) or $1 for more information. They are unlike the “Example 2″ that basically tell you the scam before you order it! (It may take a little time for you to make the distinction between these fine lines.)

However, our duty as good mail order dealers should be to ban together and inform the public that “normal” mail order is NOT a part of the “Legitimate Scam.” And when we see one — we should cut it out and send to a mail order publisher to expose. So many people overlook the power of the PRINTED WORD. Instead of complaining, people should be writing their mail order publishers when they are ripped-off, providing them with documentation and a 2 or 3 paragraph summary of the “Legitimate Scam.”

Use wisdom. Get your facts straight. Have documentation to back-up your findings and submit them! Wouldn’t it be great if everybody in the world were honest? What a wonderful world this would be!

THE CHEAPEST WAY TO DISTRIBUTE 8 1/2 X 11″ CIRCULARS

Most of you may already know this, but beginners don’t — and they overlook this golden opportunity that mail order offers them — co-op dealing!

Co-op is short for “co-operative.” That means that two people share in the cost and distribution of a product or service. In other words, it’s kind of like having a “buy one get one free” coupon for 2 hamburgers. You and a friend will split the cost of 1 hamburger, giving you both a hamburger for lunch. This way, you both saved 50% over the cost of buying each one separately. This is one common example of co-op dealing — and you can do the same thing in mail order.

Co-op dealing is very beneficial (and usually safe) for everyone involved. One example of co-op dealing in mail order is to send your 8 1/2×11″ camera-ready circular to a co-op printer and they’ll print your ad on one side, their ad on the back side and ship them back to you for a low cost of around $10 per 1,000. You get your printing almost free and the other dealer gets his or her flyers mailed on the back of yours free.

But what do you do with them when they are mailed back to you? If you’re new to mail order it’s doubtful you have a mailing list to distribute them to. Plus, postage costs alone would run you about $290.00 first-class. At this rate it would have been cheaper to send the camera-ready to a tabloid or adsheet publisher rather than by a co-op. But don’t despair.

Simply have the printer ship your copies to a co-op circular mailer instead of sending them to you. A couple good circular mailers we recommend are BMG Services, PO Box 429, Johnson KS 67855 (your cost is only 1c for each 8 1/2×11 pre-printed circular) or Thorn Gifts, 1807 Stillwater #5, St Paul MN 55119 (your cost is only 5c for each 8 1/2×11 pre-printed circular.) Why the difference in price? BMG mails by bulk rate and Thorn mails by first-class. Either method is effective and sure beats paying 29c each.

In addition, you benefit from the mailing list of the circular mailer. If this particular mailer sells a mailing list, having them do a 1,000 or 5,000 “test” mailing for you would be a way to test their names. You should get a few responses from a mailing of this size but it all depends on “what” you are offering and the “price” you are offering it for. It’s very difficult to sell any item for more than $50 on a 8 1/2×11″ circular. For items costing more than $50, you need to use the two-step approach. In other words, use the 8 1/2×11″ circular to generate inquiries and follow-up with the complete sales materials that constitute the higher price the customer may decide to pay.

Another idea is that you could contact a dealer with products and services not conflicting with your own and ask them to co-op mail for you. In this deal, you would pay for the 2-sided printing (with the mailer’s ad on back of yours) and he/she would mail them for you free of charge. It works!

Another way to co-op deal in mail order is by co-op advertising. High Mountain Advertiser and Popular Advertiser are both long running co-op publications. You place your ad the first time through a dealer and all future ads are 50% less. Then you have the option of mailing pre-printed copies with your name in the publisher’s block as an authorized dealer. When other people order advertising, they will send their orders to you. You keep 50% of the money and send the rest (along with the order) back to the publisher. This way, you can have your 8 1/2×11 circulars printed and mailed in a publication at a 50% savings.

Coal Publishing, 27 South 4th Avenue, Highland Park NJ 08904 also offers co-op advertising in their “Small Business Keeps America Growing” tabloid. For the low cost of $35 per tabloid-size page, you can have your 8 1/2×11″ circular along with four 2-inch ads printed and mailed to a whopping 5,000 circulation. All you are responsible for is the mailing of 200 of them. Any beginner can handle mailing 50 per week to a mailing list or to their own customers. Besides, no one can offer you a 5,000 honest circulation for this price. This is a real money-saver!

If you market the direct mail method, it’s a good idea to send a good circular you plan to keep around for awhile to a mail order printer and have 1,000 printed on ONE SIDE. Then, you can use the back of 100 or so for testing purposes of other circulars. Run down to the copy shop and run the circulars through the copier by printing on the back side. Only run 100 or less and send them to the best names you can find. If they pull orders, you may have a winner and can have 1,000 printed. Nothing is more annoying than being stuck with 1,000 circulars with something you want to mail on one side and something outdated on the back.

Happy money-saving!

HOW NOT TO PROMOTE COMMISSION CIRCULARS

Most everyone exposed to mail order will be introduced to or involved in the promotion of commission circulars. You’ve seen them before. You place an order for them and place your name in the “Order From” box. When orders come to you, you keep 50% of the money for your efforts and forward the order plus the remaining 50% of the money onto the “Prime Source,” who will, in turn, dropship the order to the customer.

These work great if everyone does what they should — however, some people have found it necessary to even “cheat” with these. They will see a commission circular they want to promote. But instead of sending their order to the prime source to obtain a legitimate camera-ready copy — they simply place their name and address in the “Order From” box and begin advertising it.

What happens if you order from an individual or company who has done this? You probably won’t get your order and the guy or gal will pocket your hard-earned money! What a waste!

Because the “cheater” normally will not know who the prime source is and who to forward any orders to (since they didn’t respond in the proper manner), your order is tossed in the trash. This is bad business for you as well as the prime source who often times, does not even know this is happening.

Fortunately, we personally receive a copy of almost everything that is being promoted and can usually identify this fraudulent behavior with our own commission circulars. However, we are fortunate to be able to keep “on top” of this activity. But there are prime source dealers who are being ripped-off everyday! Let’s put a stop to it! How?

One way to combat this problem is to look the circular over for any major changes in the “type.” If the circular appears to be tampered with (and there is no special membership number assigned) you should question it before sending in your money. You might even consider requesting the name of the prime source without the address to prove the validity of the circular if you want to spend the time.

Another way of combating commission circular fraud is by writing a letter to the advertiser requesting “more information” about the product before you place an order. Some people don’t want to spend the time doing this because they might be “out of the mood” to place an order by the time they receive an answer. If you feel this way about a product — why even order it in the first place? You should never be placing an order just to spend money. Instead — it should always be for something you want and need. Besides, you only have to write a letter to people with products you REALLY want to purchase. After you have been in the business for awhile, and made a few contacts — you will normally know “what” and “who” to do business with.

It never ceases to amaze me what some people will do to cheat others out of $2 or $3. Can’t someone use more of their brains and think up their own offer without stealing others? It’s sad!

A professional con-artist would NEVER think of doing such a thing. A professional (and unfortunately smart) con-artist would play it safe on the small orders and wait to build their business up. Then — when they were generating $1,000′s of dollars — they would go in for the big kill. Anybody that risks their business on $2 or $3 is a penny-ante dealer with nothing going for them but continual struggle and unnecessary problems they could have voided.

Now please don’t misunderstand me. I am in NO WAY trying to exalt a professional con-artist and tell you to be like him or her. These people create their own downfall in the end also. All con-games are short-lived and play havoc on your professional, personal and spiritual life. You may be laughing all the way to the bank now — but one day when you need someone to bring you a drink of water because you are ill, no one will be there for you. Your money will be gone — along with your “so-called” friends!

Commission circulars in mail order are a viable part of keeping the industry functioning. They provide a good money-making avenue for new businesses because they are promoting established products and services that sell well already. A prime source should support their dealers who participate in their commission circular programs. One way to support them is NOT to be their competition. Instead of running your ads — run their ads instead. Regardless of “who” gets the order, the prime source still gets a portion of the profits — right? And if you help your people sell your products and make a little money, you’ll get more people signed up to sell for you!