How to Make Money with Classified Ads - part 2

posted by khairulazmi.com on 22nd, 2007

How to Make Money with Classified Ads - part 2

THE 2-STEP APPROACH

The proven method of selling mail order items of information is called the two-step approach. Basically, you place a short classified ad in the back of a magazine or tabloid. The ad does not mention price, but tells the reader to write for free details. Once you have an inquiry, you then send information concerning what you have to offer, and watch those orders pile in. Essentially, a mail order classified ad buys a name and potential business. It may just break even with the actual orders placed. The real money comes from subsequent sales.

Profit begins at the second sale and gets bigger and bigger as the sales continue.

WHY NOT CHARGE IN THE CLASSIFIED?

You’ll get far more responses from an ad for free information than you will for gods - at any price. And, since you want a POTENTIAL BUYER, you’ll have more inquiries for materials you want to sell later.

Charging a small fee to cover postage or the cost of the inquiry will never make you break even - people won’t be bothered. And a small fee doesn’t necessarily weed out non-buyers. If you find your classified is pulling people who aren’t interested in your offer, you can change the advertisement to be more specific as to what you really have for sale.

WHERE TO PLACE CLASSIFIEDS

The best advice in placing classifieds is to follow the leader. Find where other goods in your category are being sold and do the same. The mail order business is not a place to be real different - especially as a beginner. Although your product must have an appeal different than the others. Stay with the pack and advertise in the same publications.

Look for repeat business. You can review back issues of publications at your library or buy some copies of the publications you might advertise in. If a certain ad has appeared time after time, you can bet it’s a winner.

Write for the details of some of the offers similar to the one you have. You might even purchase a sample product or two so you can get a good feeling for what is being offered, how the ads run, and what kind of prices are successful.

If you have a specific product or information that is appropriate to a specialized type of magazine, check out all the magazines of that topic. Which publication carries most of the ads? What is the circulation of the of the publication? A magazine with a higher circulation may cost more to place a classified, but bargain rate publication won’t be the best investment if they don’t bring the inquiries.

Consider your dollar-for-dollar inquiry. How many people may read your advertisement for the cost it takes to place the ad? Many products have special seasons, and classified ads are no different. December generally returns varied responses because of the holiday season, and is not a good month to include in your testing. The summer months are generally slower for classified responses and mail order packages. The best time to try your ads are the fall, winter and spring months.

….will be continue to part 3 of Make Money with Classified Ads