Gary Halbert · whole document (10)
a roll out money
Look,
testing you ideas will cost you some money. However, when you
read Section 5 of this report, you will learn how to test an ad in
a daily newspaper at the lowest possible cost. And, if you are a real
hustler, you can use the info in Section 9 to mail thousands of sales
letters virtually free.
Besides
that, if you decide to test your idea via "conventional" direct mail,
it should only cost you $1,500.00 or so if you are willing to do most
of the work (addressing, sealing, stuffing, etc.) yourself. So anyway,
once you do your test and you have actual numbers, then, here is what
you do. You write me a letter something like this:
Dear
Gary,
Some time ago I had an idea
for selling a report my wife wrote on "How To Lose Weight Without
Starving" and I wrote a newspaper ad offering her report for sale.
I ran the ad in the "Podunk Daily News" which has a circulation of
53,000 and the ad cost me $1,200.00 for a one-time insertion.
I priced the report at $12.00
plus $1.50 postage and it costs me about $3.50 to fill an order. Therefore,
every order yields up $10.00 in "contribution to overhead." My ad
pulled in 220 orders for a total gross of $2,970.00.
At $3.50 to fill an order
it cost me $770.00 to fill all my orders. Therefore, my total costs
($770.00 to fill orders and $1,200.00 to pay for the ad) were $1,970.00
which, when subtracted from my gross of $2,970.00 left me a bottom-line
profit of...