ac easyway

Let's say you are selling a book for $100. And it costs you
$1 to mail each letter. Also, it costs you $10 to fulfill every order. And in
this example, let's say you are getting a 2% response with a 10% refund rate.

To mail 1,000 letters would cost you $1,000. A 2% response
rate would equal 20 orders. So you'll gross $2,000 (20 x $100). Take those 20
orders and multiply it by the $10 for fulfillment, and you have to fork over
another $200. But don't forget those refunds. A 10% refund rate would be 2
refunds at $100 each which causes you to give back $200.

That means you net $600. (Do the math yourself so you'll
completely understand this.)

But, what if you use the "I won't cash your check or
process your credit card for 30-days" idea? Let's see how the math works on that
scenario.

Okay, we mail our 1,000 letters and it still costs us the
same $1,000. But, as I said earlier, using this technique usually triples
the response rate. That means we now get 60 orders (instead of 20). And that
means, you'll gross $6,000 (60 x $100). Now take those 60 orders and multiply it
by the $10 for fulfillment, and you have to shell out another $600. But don't
forget those refunds. Remember, using this technique usually doubles the
number of refunds. We now have a 20% refund rate from 60 orders (12 refunds).
Multiply 12 refunds times $100 each and that means you have to give back $1,200.

That means you net $3,200. (Again, do the math yourself so
you'll completely understand this.)

So, here's the question: Would you rather conduct your
business in an "ordinary" way and have a profit of $600... or... use the
"30-day-hold" technique and have a profit of $3,200?