Greetings & Salutations:
This month, we're gonna talk about ...
Getting Rich Publishing Your Own Newsletter!
Articles written on this subject have ranged ... as they always
do ... from the ridiculous to the sublime. Some were well-written
bits of wisdom covering the mechanics of producing a newsletter.
Others propounded upon the importance of graphics. A few
suggested topics and content to consider.
Having been a newsletter writer/publisher for 30 years, some
of the articles made me laugh with delight. Others just
about made me cry with disappointment. A few gave me gas-pains.
But, they all forgot the First Law of Business ...
Demand Creates Supply!
Supply DOES NOT Create Demand!
Think about it. -- If I have 1,000,000 widgets; valued at
$5 each, how much money will I make? -- Not a Penny ... unless
somebody else wants my widgets and is willing to pay the price.
-- If there is no demand, the supply is worthless.
By the way, if our ego-maniacal government would apply the
First Law of Business to the drug problem in this country, there
wouldn't be a drug problem. -- Eliminate the 'demand' and the
'supply' won't matter. -- Spend the Big-Tax-Bucks on educating
our children not to use drugs and arrest the 'users' (even the
so-called 'recreational' users) and send them to rehabilitation
camps paid-for with the tax-money now used to capture 'suppliers.'
-- Eliminating the 'supply' will never solve the problem.
Eliminate the 'demand' and the problem will solve itself.
No Demand = No Profit Motive = No Supply!
No matter what kind of 'business' endeavor you choose ...
including Newsletter Publishing ... the First Law of Business
always applies.
That law is succinctly expressed in the maxim ...
Find A Need & Fill It!
Therefore, before you entertain the thought of starting your
own newsletter, you must first determine that there is a 'need'
(demand) for the information you intend publishing.
In my book ... "Own Your Own Mailorder Business"
... http://www.businesslyceum.com/mailorder.html
... I tell you how I started my first newsletter, the "Business
Intelligence Network." -- It came about because my readers
'demanded' more and more of the same kind of information. --
The 'need' found me, so I filled it ... profitably.
As a matter of fact, in all but one instance, that is the
story of my life in newsletter publishing. -- Twenty-eight years
ago, I purchased the "WorldWide Business Exchange,"
... http://www.businesslyceum.com/wwbx.html
... after having been a paid-subscriber to it for well over 5
years. I 'knew' it was needed, because I, myself needed
it. -- In all the other cases, the 'need' found me.
In 1984, after writing the booklet, "Offshore Banking
Is Not Evil," my readers demanded more information on
the subject ... which lead to the creation of "Offshore
Banking News."
Although I wrote "The Burning Match" ...
a booklet about Stock Market Investing ... in 1987, it didn't
really catch-on until 1989. Then, the demand for more detailed
information generated "The Burning Match Newsletter"
and "The Burning Match Trading System" and "The
Burning Match Society."
"Mailorder Marketing," came into existence
because, before publishing my "Own Your Own Mailorder
Business" (OYOMB), in June, 1996, I sent and gave copies
of the final manuscript to a number of my friends and members
of my family. -- Each, in turn, asked for 'more.' So, in
anticipation of the demand the book would generate, I initiated
the newsletter. (I wasn't wrong.)
But ... I'm only telling you about the newsletters that were
successful and profitable.
During that same time period, I started no less than four
other newsletters. (I won't even mention their names because
they were such dismal failures.)
Why did they fail?
Well ... being a profit-motivated entrepreneur ... in each
of those failures, I had found what I thought was a 'need' and
proceeded to 'fill that perceived need' for a profit. -- In other
words, I created the supply with the greatest need being my profit!
With the "Business Intelligence Network," "Offshore
Banking News," "The Burning Match Newsletter,"
and "Mailorder Marketing," my sole intent and
purpose was to share something I had learned (the hard way) with
others who had a 'need' for that information ... without going
through the hard-won learning process I had.
Don't get me wrong. I am still profit-motivated - but
- I learned (the hard way) that my profit motivation must be
secondary to the 'need' of my readers.
Now ... if my short dissertation on the First Law of Business
... as it relates to newsletter publishing ... hasn't completely
turned-you-off, let's talk about ...
Starting Your Own Newsletter!
Having just read about the First Law of Business, you are
better prepared to start and operate a newsletter than 9 out
of 10 people who do.
By knowing and understanding that law, you should have come
to the realization that just because you can supply it doesn't
mean anyone is going to buy it! So, the first question
in your mind should be ...
Is There a 'Demand' for the Information I Can Supply?
One of the ways you can go about determining whether or not
there may be a 'demand,' is by researching the various "directories"
of newsletter publications. -- If there are a number of newsletters
offering information in the same field, there may be a big enough
demand ... if you can approach the subject from a slightly different
prospective.
In that case, order (pay-for) sample copies of the various
newsletters in that information area. Read and study them.
Determine whether or not you can bring a new or better perspective
to the subject.
Then again, if there are no newsletters being published in
that information area, it could be no one has thought of it -
or - it may be there is no demand for that kind of information.
Either way ... the best way to determine whether or not there
is a 'demand' is by creating the first issue of your proposed
newsletter (without a date on it) and mail it ... FREE ... to
a list of people who should be interested in the subject matter.
Along with the FREE sample issue, put in a 'cover letter'
simply asking the reader if they would be interested in receiving
"free" information about the newsletter enclosed. --
Don't tell'em they're gonna have to pay for the newsletter ...
just ask them if they would like some more 'free' information
about the newsletter. -- Be sure to enclose a Postage Paid Reply
Envelope or a "Yes"/"No" Postcard ... so
they can respond effortlessly.
If you get a BIG response (20% or more), you probably have
a winner. -- If you get a Moderate response (10% to 20%), you
need to test a few more lists before you decide. -- If you get
a small response (less than 10%), go back to the drawing board.
By the way, that's the way "WorldWide Business Exchange"
came into existence back in 1963.
Note: All of my newsletters have been written
from my own personal, hands-on experience in the subject matter
- but - that doesn't mean you have to have personal, hands-on
experience in your chosen information area. Some of the
better newsletters on the market today are written and published
by people who have excellent 'research' skills and the ability
to give the readers what they want (which is the real secret
... if there is one ... to successful newsletter publishing).
Beyond testing the subject matter of your newsletter, you
also need to ...
Test The Title!
If your initial test results are moderate or small, instead
of changing your subject matter ... or content ... on your further
tests, try just changing the title.
You would be amazed at the importance of the right title.
I've seen poorly written newsletters with powerful titles make
money hand-over-glove -- while far better-written newsletters,
with a poor title, in the same information area have gone bankrupt.
So, before you give up on your idea ... test, retest, and
test your "title" some more.
But, what about ...
Mechanics & Graphics!
Although this is a much discussed topic in the newsletter
industry ... with as many different 'opinions' as there are Newsletter-Publishing-Gurus
... there is no right or wrong. The decisions as to the
mechanical layout of your newsletter and the graphics you choose
to use are dependent upon what your customers want and need from
you ... that's all that really counts.
Some of the most successful and profitable newsletters today,
are still published like the newsletters of 40 years ago ...
just white pages with typewriter style printing in an informal
"letter" style. Then again, other successful
and profitable newsletters are almost magazines ... with pictures
and 4-color printing.
How do you find out which is best for your newsletter? --
Aha! Gotcha! -- You guessed it ... test, retest and test
some more. (Remember: That's what separates the 'pros'
from the 'amateurs.')
Of course, even after you have chosen your subject matter,
mechanical layout and graphic design, the only way your newsletter
is gonna survive is by ...
Selling Subscriptions to Your Newsletter!
Ouch! -- No matter how you approach it, selling subscriptions
to newsletters can only be accomplished by mailorder methods
... there aren't very many 'stores' that sell newsletter subscriptions
over the counter. And, in 1984, when Publisher's Clearing
House put out a letter to over 500 newsletters; hoping to include
a sheet of 'newsletter stamps' in their mailings, only five of
us accepted their offer.
That means you either have to learn the "art" of
mailorder, or hire the best mailorder copywriter you can find.
-- Newsletters live or die on their subscription revenue ...
they don't, usually, sell advertising - and - those newsletters
that do sell advertising most often just cover their cost of
producing the ad-pages (because they don't have big enough circulations
to justify charging the big-bucks necessary to make a profit
from advertising revenue).
Which means ... you can have the absolute best content, with
the finest graphics - but - if you don't spend the money necessary
to sell subscriptions, your newsletter will bury you alive in
printing and mailing costs. -- Far from the rosy picture painted
by those who tell you, unequivocally, you can Get Rich Publishing
Your Own Newsletter!
Remember: Demand creates supply! (Not the other
way around.)
Contrary to popular belief, even the best of advertising can
not "create" demand. The 'need' (demand) must
already exist before your advertising can be effective.
All your advertising can do is tell your potential customers
why and how your product or service can fill their need uniquely,
better, cheaper, more efficiently, or without the drawbacks of
someone else's. -- Advertising can not create a demand where
no demand exists.
Now, it's ...
Bubble Bustin' Time!
Believe it or not ... the vast majority of newsletters in
this country (well over 75% of them) have less than 1,000 paid
subscribers. -- Successful newsletters have from 2,000 to 8,000
paid subscribers. -- Less than 10% of the newsletters on the
market have over 10,000 paid subscribers. And ...
Statistically, the cost of advertising for new subscribers
eats-up over 80% of the first-year subscription revenue ... fulfillment
costs average over 20% of subscription revenue ... leaving little,
or nothing, from the subscription price paid by first-time and
one-time subscribers. Meaning, without a significant 'renewal'
rate, even a "successful" newsletter could be operating
in the 'red' for at least the first year ... or until the renewals
start coming-in.
But ... what the hey ... if you can survive through the first
year; get your 'renewal' rate established; stomach the time constraints
of monthly deadlines; live with your calendar turned two months
ahead; suffer the other 'slings and arrows of outrageous fortune'
inherent in the small business community; and enjoy the shear
delight of meeting satisfied customers everywhere you go, it's
a wonderful way to make a fortune ... I should know, I've been
doing it for 30 years.