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!

DON’T FALL FOR THE FREE MASTERCARD AND VISA RIP-OFF!

I’m sure you’ve seen them! You know the kind. They arrive in your mail from some “official looking” bank claiming that you have been Pre-Approved for a Mastercard or VISA credit card.

Of course, you don’t have to have any credit. You can even have bad credit or have just filed bankruptcy or even be rated as a “slow payer.” It doesn’t matter because these companies want to give you a second chance! Bull! This is a typical example of what I personally call “A Legitimate Scam” — something that can be done but has a hidden meaning that is non-appealing to the average consumer.

Why would companies want to make it easy for you to obtain a credit card? Do they like you? Do they want to help you because they know you have been through hard times and need a break? NO! They only want your money! You mean nothing to them!

How the thing works is that you must send $35 to receive an application that provides you with a name and address listing of banks willing to give you a VISA and/or Mastercard without any credit approval. That’s a stiff price to pay for a sheet of paper, don’t you think? The instructions that come with the application will let you know how the scheme works. You must open up a bank account with the bank once that bank approves you. Big deal! They make it appear that you have won some contest or something and people will feel “good inside” that someone has approved them.

But that’s not all. The minimum amount you must deposit is $200 but you can deposit as much as you want. In return, you get a Mastercard or VISA credit card with a credit limit up to the amount you deposit. Wow! What a great honor! This is no break! Think about it. If a stranger gave you $200 to hold for him until Friday wouldn’t you feel safe in granting them a $200 loan? I mean — it’s their own money you’ve got. If they default, you’ve got the full amount to pay off the loan. It takes a twisted mind to take $200 from you, grant you $200 credit with your own money plus charge you astronomical interest rates just to take the money from your hand and give it back to you. That’s insane!

Of course — to combat this insanity, the great and wonderful banks claim to help fix your credit report. They say that if you maintain payments in a correct fashion, this information will be reported to the credit bureau. Yea, right! When Shell calls the credit bureau to check your credit for a gas credit card, your report shows 47 defaulted loans and a bankruptcy. However, there is one company that you make payments to on-time. Big deal. Don’t you think the rest of your bad credit will still be the deciding factor in Shell’s final decision? You bet you bottom dollar!

Look at this: the bank makes money from the interest of your deposit. The bank also makes money by charging you 18% to 22% interest for the right to use their Mastercard or VISA. Plus the bank is guaranteed their money because if you don’t pay on time, they take the money out of the bank account you opened with them along with any interest you have accumulated.

Why would anyone with $200 to deposit want a credit card with a $200 limit? If you have $200 and want to buy an item for $200 — go out and purchase it. That way, you’ll own it lock, stock and barrel. No interest, no payments, no hassle! Plus, you won’t owe your soul to the company store — so-to-speak.

Credit is a wonderful thing if you use it intelligently. I know people who charge $100 at the beginning of the month and use that $100 to make $300. It’s free money for 30 days. Then, when the bill comes, they immediately pay the entire balance and come out smelling like a rose with $200 to the good. Credit is also needed in certain circumstances for establishing clout. You can’t call in a telephone order unless you can charge the purchase to your credit card. This delays you from getting items you want now.

In fact — some companies will try and make you feel “low class” if you don’t own a credit card. I am proud to say that I DON’T OWN one. When I’m in a store and they say “Would you like to put this on your charge?” I promptly say, “No, I pay for everything I buy!” They immediately shut up. And if they would snap back with a rude answer, I’d leave the stuff sitting on the counter, walk out of the store and get what I needed somewhere else. You don’t have to take abuse just because you don’t choose to line the pockets of the rich credit card companies! It’s insane!

If you’ve ever had a credit card and charged $200, you know you end up paying back $400 or more (unless you pay the balance within 30 days.) Stop allowing these “so called” banks to rip you off.

WHERE TO PURCHASE YOUR OFFICE SUPPLIES

Whatever you do, DO NOT, purchase your office supplies at your local drug or grocery store. The office supplies sold here are only for people who want to write a letter back home to Mom and Dad, or to send an occasional greeting to a friend. Businesses do not purchase their office supplies from these types of stores because of the extreme difference in price. My mother used to always purchase her business envelopes at the grocery store. She thought the price was very cheap when she only paid $1.29 for 50 envelopes. Her lined writing tablet contained 100 sheets for around $1.29 also.

However, I can drive right down the street to Staples Office Supply and purchase 500 envelopes for $4.00 — 10 TIMES the quantity for only $2.71 more. In addition, I can buy 500 sheets of 8 1/2×11 laser paper for $2.99. So not only am I getting TWICE more the size of paper (her writing tablet was approximately a 6×9 area) but I also got 5 TIMES the amount of paper — and all this was only $1.70 more! What a difference! So don’t be fooled on supposedly cheap pricing of office supplies.

If you live in a small area that does not have any office supply stores, you need to contact: Quill Corporation, PO Box 94080, Palatine IL 60094-4080 and request their latest catalog. Since I have been in business-related situations all my life I have had to learn how to cut corners all the time — I have found Quill to have the best mail order prices around. Not only is everything reasonably priced — they don’t have a sale and raise prices on everything else like some other company’s do. This tactic that some company’s use is blatant abuse and demonstrates bold faced greed!

What Do I Buy?

Most every small business will need the following “staple” supplies to start with:

• paper (typing paper or paper for your computer printer)
• ink pens
• tape and tape dispenser
• stapler and staples
• paper clips and dispenser
• 1 or 2, 3-ring binders
• 3-hole punch
• envelopes (business size #10)
• 8 1/2×11 paper trays or wire baskets for organizing the “to do” and “to do later” pile manila file folders and labels
• hanging files to fit in your file cabinet (I started out using a banker’s cardboard storage box so the hanging files would fit; since I didn’t have the money to afford a metal file cabinet)
• ruler
• scissors
• staple puller
• rubber bands
• glue stick or other paper glue
• highlighter markers
• scrap note paper or post-it note pad (get in a habit of writing everything down so you can follow-up effectively)
• roladex or address book

This should be enough to set-up any basic office. Your filing system is the most important thing to your business right now. If you start it out right you can keep up with it. Neglecting to set it up correctly in the beginning will start a pattern that is very hard to break later on — and can eventually destroy your business. Let’s take a couple minutes to discuss some basic accounting procedures so you can set your files up correctly from the very beginning.

The Next Step

As soon get your beginning office supplies, before you do any business by mail you need to get a letterhead and envelope. People will not take you seriously until you do. One simple and easy way to get these two items is to type your name, address and phone number at the top of a piece of white paper. Either print it out on the laser printer of your computer or have a competent typesetter like Muchmore Marketing, PO Box 50027, Reno NV 89513 do it for you. (The cost is around $5.)

You then purchase some nice letterhead stationary at your office supply store and copy your letterhead onto the paper. Letterhead stationary is not expensive either and the best grade only runs about $7 for 250 sheets. It’s money well spent.

To obtain your business envelope, check with mail order printers. Prices normally are $24 per 1,000.