A Highly Profitable, Laughably Simple Lesson From the Great Depression

By Early To Rise

I have a daughter in Montclair, New Jersey – hometown of the inimitable Yogi Berra.

As a result, I have made a bit of a study of his remarks. And one of my favorites is, “You can observe a lot just by looking.”

Well, one thing I have observed a lot is the disinclination of most marketers to look at the past – and see what they can learn from it. They just don’t study enough.

Coincidentally, a client recently asked if I had any good examples of marketing during shaky economic times.

I was stumped for a moment, because wise marketers do the same things in any economy:

They avoid trying to be “creative” like the plague; don’t settle for the first idea they come up with; test everything – and, for God’s sake, do everything they possibly can to get that response.

That last point is so important. And so often ignored. When I look at marketing copy – which I do every day – I am struck by how weak the calls to action are, especially when I consider how much difference even tiny changes can make. For instance:

  • When I worked briefly with the astonishing Gene Schwartz, I learned that writing “tear out this coupon” instead of “cut out this coupon” made a significant difference in response rates.
  • When I got into catalogue marketing, I discovered that if you put ordering details on every page, sales went up.
  • When I wrote my first insurance mailings, tests showed that doubling the size of the order form boosted sales 25%.
  • And one of the first things I learned about TV direct response was that the longer the phone number is on the screen, the higher the response.

I just looked in my files and found the following – the end of a leaflet. It dates back to the Great Depression of the 1930s.

Now that final paragraph really is a call to action. You can tell that whoever wrote it really wanted people to reply:

“Let nothing, absolutely nothing, interfere with immediate action,” he wrote. “A change for the better justifies no delay. Don’t watch others make money which you can make. Be up and doing now. Some other time may be too late. Place your order and application this very minute. Take the action now that means more money next week, independence next year.”

The business promoted by that leaflet was successful for many years. And if you read the copy, you can see that it is in a field that’s very popular now on the Internet – making money by selling stuff.

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Do You Make the 4 Middle-Class Mistakes?

A wealthy Florida businessman (worth millions) says middle class Americans almost always follow the conventional wisdom… and as a result, make 4 huge mistakes when it comes to investing.

I can almost guarantee you’ve never heard these ideas before-but a few simple changes could make you a lot of money over the next 12 months.

How to Go for the Sale

It is easy to forget that your advertising merely acts as a substitute for a live salesperson. If you could afford it, you would send the finest salesperson you have to do the job for you. So when you look at your marketing copy, you must constantly ask yourself, “Is this how a great salesperson would do it?”

If you want to make a sale, you must:

  • Remind people what they get when you ask for the order.
  • Put a value on what they get. (“You could pay more for a lunch for two.”)
  • Remind them what they will miss if they don’t respond to your offer.
  • Emphasize the deadline or the limited numbers. (I’ve seen that boost response by 50%.)

Here are some of the ways I like to end my sales copy:

  • “Why not make this the very next thing you do?”
  • “Why not reply the minute you finish reading this?”
  • “It’s so easy to put things off, isn’t it? Why not reply now?”
  • “Why not order now, while this is fresh in your mind?”

I always try to ask for the sale at least three times at the end. And if I’m working with long copy, I ask early on too. (That gets people who are keen to buy right away.) And then I keep asking at intervals.

How Many Ways Can You Sell People on Responding?

Now, here is an instructive little exercise for you. Read through the last paragraph of copy in the leaflet example I gave above. Here it is again:

“Let nothing, absolutely nothing, interfere with immediate action. A change for the better justifies no delay. Don’t watch others make money which you can make. Be up and doing now. Some other time may be too late. Place your order and application this very minute. Take the action now that means more money next week, independence next year.”

Now count the number of reasons it gives for acting.

I got eight. Did you?

That gives you some idea how hard you have to fight for business in tough times. (Remember, that leaflet was written during the Great Depression.)

The moment of truth comes when you ask for the order.

Believe me, few things cost less or make more difference than doing that as though your life depends on it – because it may.

[Ed. Note: Veteran copywriter and direct-marketing strategist Drayton Bird has worked with American Express, Ford, Microsoft, Visa, Procter & Gamble, and scores of other clients during his five-decade career, which included a stint as international vice-chairman and creative director of Ogilvy & Mather. In 2003, he was named by the Chartered Institute of Marketing as one of 50 living individuals who have shaped today’s marketing.

Ready for more marketing insights from Drayton Bird? For 101 ideas, free case studies, and articles on topics like the one you just read – and a 28-day free trial of Drayton’s Commonsense Marketing Series, go here.]

This article appears courtesy of Early To Rise, a free newsletter dedicated to creating wealth and success through inspiration and practical, proven advice. For a complimentary subscription, visit http://www.earlytorise.com.

TIC Long-Term Purchases Fall Short of Expectations

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This afternoon’s investment data from Treasury International Capital (TIC) revealed worse than forecast growth in foreign investment levels for domestic, long-term securities. The TIC Long-Term Purchases report measures the difference between domestic securities purchased by foreign investors and foreign securities purchased by domestic investors.

A positive reading represents a higher level of foreign investment in American securities than vice versa. Today’s expectations were for a positive growth in the TIC report from last month’s $24B to a near-doubling of $45.3B. The actual results came out at $30.6B, suggesting a sluggish period of foreign investment over the past 30 days, despite being better than the previous month’s reading. Impact on the USD is being overshadowed by Greece default concerns and S&P’s recent downgrade of Greek bonds.

Read more forex trading news on our forex blog.

This Might Be Your Last Chance to Sign Up for Our Free Webinar

Sandy FranksNote from Managing Editor Sara Nunnally: It’s not every day that we get to share exclusive information with you that’s normally reserved for our Millionaire’s Circle members. I had to get permission from our executive publisher Sandy Franks to release this article she sent out last month.

I can’t print sensitive information like stock picks from our group of newsletters… But this article gives you an inside look at our group’s philosophy. I’m happy to share it with you today.

Be sure to read our Editor’s Note at the end for one last chance to sign up for our free webinar.

Someone’s Getting Rich… Beyond Wealth…

The amounts are staggering. I’m talking about the amount of money CEOs have made this past year. Some of these guys are hauling in beaucoup bucks. For example, Philippe Dauman, CEO of Viacom, parent company of MTV Networks, BET Networks and Paramount Pictures, was paid $84.3 million in 2010 to run the company. That’s a 250% increase from what he made the previous year.

His salary is a mix of actual salary, which is at $2.6 million; annual incentives valued at $11.2 million; stock options worth $28.6 million; stock grants at $27.1 million; and bonus for performance at $14.7 million.

Dauman makes so much money he’s the highest-paid CEO. Following him is Larry Ellison, billionaire founder of Oracle Corp., who only received $68 million in 2010. At the bottom of Hay Group’s list of top paid executives is Eric Schmidt, executive chairman of Google, Inc.

His job description doesn’t sound like much: As executive chairman, he is responsible for the external matters of Google, building partnerships, broader business relationships, government outreach and technology through leadership.

For all his hard work, poor guy only got paid $1.8 million. But does how much money you make really matter?

According to Alex Green, a former money manager and nationally renowned financial expert and investment director of The Oxford Club, real wealth isn’t just about how much stuff you own. (That’s materialism, not wealth.) It’s not about showing off a huge house, exotic cars or an exclusive club membership. (That’s ego, not wealth.) It’s not even about your bank balance, stock portfolio or net worth, no matter how large.

Living a rich life is not just about the money you accumulate but more about living a life of significance. Don’t get me wrong. Alex isn’t saying that you don’t need money. In fact money does give you freedom. And Alex Green is a master at taking ordinary individuals and showing them how to achieve complete financial independence.

Alex’s message is this: Money might create wealth but so do character, conscience, attitude and wisdom. Only by incorporating these elements into your day-to-day existence can you experience “the good life.”

I’m not trying to preach to you now about how you should live your life. But what I would like to do is ask that you get a copy of Alex’s new book, Beyond Wealth. I just got a copy myself and have been reading it everyday.

As the executive publisher of Taipan Publishing Group, I’m often consumed with numbers from bottom-line financials to what recommendations our editors can provide you that help you enjoy a more comfortable lifestyle. Sometimes, though, it pays to “stop and smell the roses.”

Alex’s book is helping me do that. It has become my daily affirmation for stopping to smell the roses. Each day I make it a point to read several pages, to serve as my “check and balance” to not get too caught up in the numbers grind.

I actually have to congratulate Alex for writing this type of book. As investment director for The Oxford Club, he’s a numbers-oriented guy too. So you’d think any book he writes would strictly be about how to make more money. Beyond Wealth isn’t that type of book at all.

It offers deeper insights to living a more meaningful life. Living a “rich life” is about meaningful work, close connections with friends and family, and other very helpful, very useful ideas.

Alex’s book is available through Amazon.com.

(Sign up for Smart Investing Daily and let me regular editors Sara Nunnally and Jared Levy simplify the market for you with their easy-to-understand articles.)

2011 Global Opportunities Summit Conference Update

We’ve got the hotel and dates in place. This year’s annual summit will be held at the Venetian Hotel, Sep. 17-19, 2011. We’re calling this summit “The Survival Summit.”

Why survival? Well, to be quite frank, things are going to get a lot worse before they get better. If you aren’t properly prepared, you’re at risk of losing a lot of money.

Each one of the Taipan editors is going to share with you their specific strategies to protect your wealth. But you know it wouldn’t be a Taipan Publishing Group conference unless we also offered you ways to make money. At the conference you’ll receive seven exclusive recommendations. Let me repeat that. Seven exclusive recommendations.

The only way to get these recommendations is to attend the conference.

Please mark your calendars. Official invitations will be sent out in the next few weeks. I hope I can count on you being there.

Until next week, here’s to a world of opportunities.

Editor’s Note: Before the Survival Summit, we’ve organized an exclusive event. You may have heard us talking about it this week: the Money Crisis Survival Webinar. We’ve already closed registration for this free event, but our publishers have re-opened the list for just a few more days.

This might be the last time Smart Investing Daily will be able to offer you a chance to sign up. The event takes place on June 20, at 7:00 p.m. Eastern Time. During the webinar you’ll get access to a report, “The Political Core of the Money Crisis: How D.C. and the Feds Are Taking Away Your Money.” You won’t find this report anywhere else.

Only those who have signed up for the webinar will get this report. You can learn more about this free webinar right now. Just click here.

Article brought to you by Taipan Publishing Group. Additional valuable content can be syndicated via our News RSS feed. Republish without charge. Required: Author attribution, links back to original content or www.taipanpublishinggroup.com.

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  • Hawkish RBA Statement Pushes AUD Higher

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    This morning’s rate statement by Reserve Bank of Australia Governor Glenn Stevens hinted at an impending rate adjustment sometime in the coming months. The hawkish sentiment expressed by the RBA governor has so far helped the Australian dollar (AUD) jump broadly against its currency counterparts.

    Stevens conditioned his statement, however, by noting that the point at which rates are increased is to be determined by the board. At the moment, there does not seem to be enough data to warrant a rate adjustment in the immediate future, but sometime in the later months of 2011. It was highlighted that pricing data released in late July will likely provide the necessary information to guide the interest rate adjustment.

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    The Royal Institute of Royal Surveyors (RICS) published a report showing an increase in house price declines this morning. The RICS House Price Balance report gauges the level of a diffusion index based on surveyed property surveyors who were asked whether housing prices in their districts were rising or declining.

    Forecasts surrounding this report were anticipating a return of approximately 20% of surveyors reporting a price decline. When 28% of RICS surveyors reported a decline, investors took cues that the British housing sector may still be in a ragged state and began to push against the nation’s currency in early trading.

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    British Employment Sector in Bad Shape

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    The morning publications by the British Office of National Statistics regarding the UK’s employment sector highlighted the deep structural deficiencies in the labor market which the Confederation of British Industry (CBI) noted in their recent report. The number of British residents filing for unemployment benefits for the first time rose by 19,600 this past month, well above the forecasts that called for 7,100 claims.

    Additionally, the Average Hourly Earnings Index grew less than expected, climbing only 1.8% over the last 3 months. Analysts were expecting an earning’s index boost of 2.1%. The British employment sector appears to be in bad shape and so far the effect has gouged the British pound’s (GBP) value against several currency rivals. The sterling was seen in decline against several other currencies and leveling off against others. If the labor market’s structural weaknesses are not addressed soon, the UK may find itself in a losing position as 2011 reaches moves beyond its mid-point.

    Read more forex trading news on our forex blog.

    New York Manufacturing Index Plummets

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    The Empire State Manufacturing Index for June, published this afternoon, revealed a stark downturn in manufacturing output for New York. The wide gap between expectations and the actual figure are ominous for the American economic recovery considering growth has been more than a bit sluggish this past quarter.

    The forecast for this afternoon’s report was for a positive reading of 13, but actual results came in at negative 7.8. The turnaround from growth in New York’s manufacturing to drastic shrinkage suggests a wider problem in consumer demand, rising inflation (Core CPI rose 0.3%; higher than economist forecasts), and transportation costs for raw materials with crude oil prices soaring. The index highlights an impending slow-down over the summer months and a likely dismal second quarter for manufacturing and industry.

    Read more forex trading news on our forex blog.

    Euro Zone Industrial Production Returns to Growth

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    Last month’s reading from the euro zone’s regional industrial production report showed stagnation at 0% growth. This month’s forecast was for a 0.1% downturn in industrial output. Today’s morning publication of this month’s production figure, however, revealed mild growth in the region’s industrial sector.

    The morning release highlighted an optimistic 0.2% growth in industrial output, likely connected to the region’s boost in German factory hiring, which has risen 2.7%, year-on-year. Also behind the surprise uptick was a boost in demand for durable consumer goods such as electronics and furniture. Analysts have so far said the data is a positive indicator, but will likely not be enough to prevent a sluggish second quarter.

    Read more forex trading news on our forex blog.

    Dollar Stronger on Greek Debt Concerns

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    The dollar is stronger across the board as the Greek debt crisis comes to a head with the failure of European finance ministers to come to an agreement for a second bailout package. Moody’s put three French banks on credit watch which compounded the negativity as the majors were all sold versus the USD.

    The lack of a solution is beginning to press market participants as the June 20th self-imposed deadline nears. Euro zone leaders left the meeting with the major conflict between Germany and the ECB unresolved. Germany is requesting investor participation in return for additional bailout funds but the ECB is staunchly against any restructuring or haircut on Greek debt that would cause a credit event as defined by the major rating agencies.

    Negative euro sentiment was compounded after Moody’s announced it was placing three large French banks on credit watch due to their exposure to Greek debt. While most expectations are for some sort of bailout package to be strung together, the risk stands for a Greek default and traders have taken up a defensive position in US dollars. The EUR/USD has shed a quick 2 cents since late yesterday afternoon in the New York trading session. 1.4250 is the 61% retracement from the May to June gains. The next support for the pair is found at the rising trend line from the January 2010 low at 1.4150, a level that coincides with the 100-day moving average.

    Sterling is also down sharply versus the dollar and the GBP/USD could test the trend line off of the May 2010 low comes in today at 1.6200.

    An overall dollar rally is carrying out with both the safe haven Swiss franc and Japanese yen rising to new weekly highs. The USD/CHF broke above resistance at 0.8470 and is encroaching on the 0.8550 resistance. Additional resistance is located from the falling trend line off the February high which comes in today at 0.8700. USD/JPY is testing its 20-day moving average. Further resistance can be found at 81.75.

    Read more forex trading news on our forex blog.