How And Why Things Are Not Always What They Seem During A So Called Economic Recession!Part Two

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How And Why Things Are Not Always What They Seem During A So Called Economic Recession!Part Two

As you previously discovered in part one of this series about the misinterpretation of an economic recession and how often a prolonged or temporary downturn in the local or national economy can and often does lead to some serious previously untapped money making opportunities.

Part two of this series is going to introduce you to a real larger than life individual (a bit of a living legend) in various business circles. In fact, there’s an extremely good chance some of you have probably heard of his legendary publishing company and other (quite expansive) business holdings.

So for the remainder of this particular series, he and his publishing empire will affectionately be referred to as the mysterious and legendary Mr. X . (Original right?)

Anyway, this mega business legend and his extremely savvy associates would routinely scour big name commercial magazines like “Entrepreneur, Income Opportunity and the Readers Digest etc. (Just to name a few.)

Looking for overly ambitious entrepreneurs that spent a fortune developing a product or service and only advertising  it once or twice, before basically abandoning their dream or running out of financing! (Usually it was the latter!)

The Economic Recession Takes The Air Out Of Some Tires But Pumps Air Into Others!

Here’s the way his long term marketing approach/strategy (95%) of the time or more, would typically play out. He would approach extremely cash strapped (and overly ambitious) business owners and or service providers that were simply gun ho about some product and or service, to the point they literally flushed a ton of their own hard earned money down the drain on outrageously expensive traditional-and in some cases national advertising campaigns- of some kind.

It may have been conventional radio, TV, newspaper and or major publications like Entrepreneur magazine and or Income Opportunity etc. They would notice any ad (but especially) a large half or full page ad that typically only ran once or twice.

He and his team would contact the owners and if at all possible tie up the rights to-run the ad and sometimes, they got the these rights for free! Other times, if he was totally convinced a rather large front or back end profit could and would eventually be made, he’d offer to pay the owners $500 – $1,000 dollars for the privilege.

Meanwhile, the owners had no clue this savvy media publisher had already pre-secured the rights to purchase the exact same advertising medium (typically) for anywhere from 10-40 cents on the dollar!

So just to put this in better perspective for you. Let’s say the semi amateur product owner took out an expensive full page ad of some kind and it cost them $38,000 dollars. And the ad only produced gross revenues of just $27,500! (Or something less than they spent to run the ads!)

Who could afford to continue doing that?  On the other hand, since this extremely savvy publisher had already secured the pre paid advertising rights for that same display ad for just forty cents on the dollar, or it only cost his publishing company $15,200 dollars! ($38,000 x .40% = $15,200)

He could easily agree to pay the original owners the $1,000 dollar negotiation fee, pay the $15,200 for the ad and still end up with a tidy gross profit of  $11,300 for the cost of (typically at most) two forty minute or less phone calls and the cost of a couple of faxes!

Not bad right?

Real Opportunity Lies In The Eyes Of The Savvy Entrepreneur!

Here’s the other really sort of think outside the box marketing strategies this incredibly savvy-multi millionaire publishing marketer routinely used. He once found a potential client that had a product similar to Ben Gay.

The marketing challenge was, every time the product owner tried to pay retail rates to advertise his product in a major publication, he routinely loss money! This savvy publishers company ran the companies numbers,and  he was amazed at what he ultimately discovered!

Much to his shock and amazement. Whenever the manufacturer sold the product through small to mid size retail outlets, the consumers typically re-ordered at least three more times!

But they literally lost a fortune on the front end whenever they tried to sell through outrageously expensive retail advertising rates in the various high profile national publications, they tried to advertise in.

So here’s the arrangement he eventually negotiated with this particular product manufacturer.

Since this ad had cost the product manufacturer a cool $75,000 dollars!  But the ad only produced  say a dismal $57,000 dollars (and some change) in gross revenue! Initially on the front end.And since the savvy publisher could get the exact same retail ad space for just 50% on the dollar or $37,500 dollars!

Now the manufacturer grossed a real front end profit of  $19,500 dollars! ($57,000 – $37,500 = $19,500!

The publisher let the product manufacturer keep 100% of the front end sales gross profits, but the publisher got 50% of the gross back end profits on the next three back end sales! But that’s not all!

Plus,he also got to access to the mail order customer list! Which (BTW) grew to just over a million consumers in just under three and a half years!

So guess what else this extremely savvy publisher did to monetize this transaction even further? He turned his list over to one of the top industry list brokers and got .25 cents per name or 25% per year on list rental income! Which meant he earned a passive income in excess of a cool quarter of a million dollars per year!

Entrepreneur, hopefully you can or are starting to see the type of slightly hidden, long term possibilities that are available to you, whenever there’s any type of so called economic recession going on! Any questions?

Please list at least two simple spin off concepts (in the comments section below) that you can apply to your business, product or service in the next 30 days or less!

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