Gary Halbert · whole document (52)
zjlk personal computer
ABC Publishing
123 Elm Street
Massillon, OH 44646
OK, this causes "x" number of people to send you a
short letter to get your free info. Then, what you do is, send
them a long letter (the free report) which gives them
some info and gets them excited enough that they want more...
which... they can get by the simple expedient of buying
another report from you which gives them the real
scoop.
There's dozens of variations of this formula.
You can generate leads by radio and TV instead of printed
media, you can generate leads now via the Internet (you shouldn't,
just yet), your "sales letter" can be a free
recorded message, a video tape or an audio tape. Maybe the
people can call for the free info instead of write for it.
Whatever.
But basically, it's all the same formula.
Inexpensive lead-generating ads followed by long, intense,
detailed sales presentations.
Let's do a little math: Say it costs you
$100.00 to run your lead-generator ad. Say it works pretty
well and you get 100 replies. Say it costs you about two bucks
to capture each name, print, get all the lettershop work done
and mail out your sales letters. Alrighty, now you've spent
$300.00 so far. Let's say you are selling your report for
$19.95 plus $3.00 shipping and handling and, after all
fulfillment costs, you have a gross net of $15.00 per sale.
From your 100 sales letters, you get five sales or, after
fulfillment costs, $75. Deduct that from the 300 smackers you
shelled out to buy the leads and mail your letters, you're in
the hole $225.00.
Well, shit, that sucks, doesn't it?
Let's double the response from those
100 letters. Now, we've got 150 fungolas after fulfillment
costs and we're only down $150. Still no good. Let's triple
the response to where we are getting 15 orders from those 100
sales letters. At a net of $15 per order times our 15 orders,
we've got after fulfillment $225 which, when subtracted from
our inescapable $300 "get going" costs, we're still
down $75.
Let's jack up our response once again. Now,
we're getting 20 orders from our 100 sales letters. At $15 per
order after fulfillment costs times 20 orders, we've got $300.
Not counting our time, we are finally at break-even. Do you
understand the significance of what you've just read? Don't be
too sure. Maybe you've got it but, just in case you're a true
dimwit like Brad Antin or someone like that, please let me
make it perfectly clear...